A live experience agency took a hit on earnings following a major acquisition.
Earnings before interest, tax, depreciation and amortisation at the Smyle Group fell to £22,000 following its purchase of Pumphouse Productions.
The two companies posted a combined turnover of £10.54m in the year ending 31 March 2015. The group’s gross profit stood at £3.1m.
Rick Stainton, Smyle Group’s managing director, said the group’s forecast for the current financial year as a whole is growth in turnover to around £12m. The group’s gross profit stood at £1,960,000 at the end of September.
Stainton said encouraging aspect of the group’s performance was the development in the client mix, assisted by growth across some key existing clients and winning a number of new key customers across the media, telecoms and financial sectors including Google, HP and EY.
He said: “These figures demonstrate the bridge we have crossed in growing up as a business – a number of key one off exceptional items have compromised our profit in the short term, but we are now seeing great momentum as a result of these various investments. They are all designed to support our awesome team in delivering on our clients’ objectives, help them be better in the services they offer and enhance our reputation for producing creative winning ideas.”