The Engine Group announces annual results
The Engine Group, the UK's largest privately owned communications group, has announced its 2011 annual results as well as an update on its performance for the first half of 2012.
2011 was a year of mixed fortunes for the Engine Group. Following a successful year in 2010, the results for the first half of 2011 were disappointing. Siting weak economic conditions, a tough competitive environment, public sector spending cuts and the closure of the News of the World - one of its largest clients - as the contributing factors. Albeit it still delivered significant profitability with £11.3m of underlying EBITDA (2010: £14.6m).
The second half of 2011 marked a strong recovery when EBITDA doubled. Engine continued to make good strategic progress which included it's first entry into the Chinese market with the establishment of Engine Asia by means of acquiring Directors Network Asia Productions Limited.
Revenue from continuing operations totalled £82.9m (2010: £73.9m), up 12.2 per cent, reflecting the benefit of organic revenue growth in some Group agencies, and the full year contributions of acquisitions made in 2010 and part year contributions of those completed during 2011.
Throughout 2011, Engine Group businesses were awarded contracts with major clients including Sky Bet, Bloomberg Television, Dulux, Wickes, T-Mobile, Telia Sonera, Purina, Wellpoint, and General Electric. During the year over 75% of the Group’s top twenty clients by size worked with more than one Engine business, whilst over 52% of Engine revenue was derived from clients working across more than one marketing and communications discipline.
The improvement was maintained in the first half of 2012 as strong financial performances were recorded by Engine companies, Jam (in its first full year with Engine), MHP (its first full year since the acquisition of Penrose and subsequent merger with Mandate and Hogarth to create MHP) and Synergy.
Following the year end, some important new appointments were also made to the Engine Board. Stevie Spring was appointed as a new independent non-executive director in July 2012. April 2012 saw the appointment of Ashley Martin to Group finance director and John Bernbach was appointed as an executive director to lead US operations.
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