CI Group takes hit on profits to invest in staff

An agency has seen its profits dip while investing in staff and equipment.
Pre-tax earnings in the year ending 31 December 2014 dropped to £306,500 from £398,000.
Like-for-like turnover was static at the CI Group last year at £4.9m while gross profitability also flat lined at £1.7m.
The management said it was investing heavily in facilities, technology and staff numbers.
Group CEO David Watt said: “2014 was a fantastic year for CI Group and Corporate Innovations. We invested in new technologies and, both increased and upskilled our team, resulting in higher client satisfaction and significant new business wins.We will continue to be ambitious in our expansion plans, already in 2015 having acquired a Covent Garden design studio, Ellipsis, to further complement our 2014 addition, Roundtable. Additionally, we’ve bought our own freehold town centre head office, doubling our footprint from 3500 to 7000 square feet and continued to invest in new technologies.
“It’s been an exciting time of growth and development making strategic investments ahead of the curve and, whilst taking a small reduction in EBIT, we’ve maintained the other key metrics that will keep us on track towards our three year target of £3m gross profitability.
“Looking further ahead to 2016 we plan to acquire complementary digital capability and also broaden our footprint outside of the UK.”

John Keenan

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John Keenan

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