By Rory Gallivan
LONDON--Advertising and public relations group Creston PLC
(CRE.LN) said Wednesday Internet-based activities will account for
more than half of revenue in the current financial year, after
strong digital growth helped it post a slight rise in pretax profit
for the year ended March 31.
Creston, which provides marketing and PR services to companies
such as the online fashion retailer ASOS PLC (ASC.LN) and personal
care products company Reckitt Benckiser Group PLC (RB.LN), said
that digital activities accounted for 48% of total revenue, up from
41% the previous year.
"We are well ahead of our initial target to hit a 50 per cent
digital revenue split in FY15 and now expect to exceed 50 per cent
in the current financial year," the company said.
Pretax profit rose to 11 million pounds ($17.1 million) from
GBP10.8 million the previous year on revenue that climbed to
GBP75.2 million from GBP74.9 million. The final dividend was kept
at 2.67 pence, making for a full year payout of 3.67 pence, up from
3.5 pence last year.
Creston's strategy of increasing its digital focus is in line
with that of peers such as Huntsworth PLC (HNT.LN) and Next Fifteen
Communications Group PLC (NFC.LN). PR companies have adapted to
their clients freezing their marketing budgets amid difficult
economic conditions and devoting more of that spending to
Internet-focused campaigns.
Chief Executive Don Elgie told Dow Jones Newswires that while
digital activities are playing an increasing role in companies'
marketing efforts, traditional media such as television will remain
important.
"Digital is great when you know about the brand and want to know
more, but terrestrial TV is best for spontaneous awareness," he
said. He added that Creston doesn't believe in standalone digital
agencies, but thinks their activities should also address
traditional media.
Creston, which has offices in New York, London and Bristol,
consists of more than 20 agencies and has recently been seeking to
group them into fewer locations to improve co-operation. This will
result in the number of leases the company operates falling from 21
to eight, Mr. Elgie said. He added that the agencies will retain
their distinct identities despite sharing offices.
"We are a house of brands not a branded house," he said.
Shares at 1133 GMT, up 6 pence, or 6.5%, at 99 pence valuing the
company at GBP57 million.
Write to Rory Gallivan at rory.gallivan@dowjones.com; Twitter:
@RoryGallivan