Pre-tax profit also dropped for the agency from £532,000 to £158,000. This represented a 70% decrease on the last financial year after a series of investments.
According to managing director John Lee, the fall in turnover was mainly due to the decrease in pass through costs handled by the agency. "One of our clients dropped the amount of event business they had been doing, which was particularly reflected in cost of sales. The clients who we are doing the most business with do not put as many costs through, which has impacted out turnover."
In terms of profitability, Lee said there had been a drop due to several major investments within the agency over the past year. "We’ve invested heavily in our production and design departments, introducing two new products," he explained. In addition, the agency has expanded its second office space in Ashford, Kent, due to an increase in the number of staff.
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