Profit and turnover down for Worldspan

Agency cites 'economic uncertainty' of Brexit as factor in turnover falling by £1.7 million.

Events agency Worldspan has seen its profit after tax significantly reduced to £140,141 from £321,762 in 2016, although its gross margin is up 5.6%.

A statement from the directors cited the economic uncertainty and weakening sterling caused by the UK’s vote to leave the EU as a big contributing factor in the £181,621 fall.

Turnover was also reduced to £6,141,567 in 2017, from £7,924,194 in 2016 and the company paid inter-company dividends of £920,000.

Jason Wilcock, chairman of Worldspan, said: "Our team has delivered excellence for our clients across a wide range of event, creative & digital projects.

"Within our last financial year, we did experience some reduction in event activity, primarily due to the weakness of sterling, and this, together with the increased costs associated with setting-up our London office, has reduced profit. However, as we track the six-month mark of our current financial year, we are seeing increased levels of activity and expect to report a strong performance at our next year-end in June 2018." 

A statement from the directors said: "Certain clients experienced a significant reduction in their profitability resulting from higher import prices and this forced them to reduce the number and scope of previously planned projects, which has caused the turnover and overall profit to fall from 2016. 

"While there was a reduction in event activity from certain clients, the company won new accounts within the international association, automotive and financial services sectors.

"Gross margin improved from 26.4% to 32% as the mix of the business changed during the year, although operating profit fell to 2.8% as expenses reflected the continuing investment in the future growth of the business."

 

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