Motivcom, the parent company of agencies P&MM and Archer Young, has posted a 31% rise in pre-tax profit for the first half of 2007 and is predicting stronger results for the following six months.
The group, which also comprises a third company – Summersault, made a £1.23m pre-tax profit in the six months to 30 June 2007, up almost a third on the £939,000 posted at the same time last year. Motivcom’s gross profit for the period was £7.01m, up 11% on last year.
Motivcom divisional managing director Nigel Cooper attributed the financial results to ongoing investment in new products, having the “right” employees, retaining clients and winning new business. He anticipates the remainder of 2007 will produce even better financial results. “We are expecting to make significantly more profit in the next six months,” said Cooper.
The travel and live events division, which covers P&MM and Archer Young, “has continued to demonstrate stable profit growth in 2007”, according to a report issued by Motivcom. “Significant contract retention has been achieved with all major clients confirming business into 2008 and our largest client renewing [its] contract until 2010.”
In August, Motivcom acquired incentive travel business MTM, which is to merge with Archer Young to create a larger company, AYMTM. Both will relocate in October to a new office in Amersham. “We expect improved profits to be delivered from 1 January,” said Cooper. Archer Young is now recruiting five additional employees. “There will be fewer full-time positions in the combined business to start with but we do have five vacancies, so overall, we will end up with more staff,” he said.
Cooper said the company was “always looking at making acquisitions” and its focus was firmly on the UK. “We have no intention of looking overseas because I believe there is such a significant opportunity to increase the size of the business in the UK,” he said.
Motivcom chairman Colin Lloyd said the company was “dedicated to growing the business both organically and through acquisition”. “We will continue to review a number of opportunities in this highly fragmented market and are confident of our ability to further strengthen the group through further strategic- and earnings-enhanced acquisitions,” he added.
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