Hasgrove has seen its operating profits fall in the first six months of 2011 as a result of slow client spend the company’s group chief executive has said.
In releasing its first half figures for 2011, the group, which owns The Chase and Amaze, has announced an increase of turnover by 3% to £10.5, but a decline in gross profits on the same period last year by £400,000 to £8.2m. The group’s operating profit also feel from £1.2m in the first half of 2010 to £0.8m this year.
It’s net debt has also increased to £7.4m this year, despite the sale of Interel for £8.5m in July.
Paul Sanders, group chief executive, said: "Following the sale of Interel in July, we are now a focused digital and communications services group. Amaze, Interact and The Chase have been restructured over the last 12 months to focus on driving organic growth and improving efficiencies. This process will be completed in the second half.
"Our revenue pipelines remain strong across the Group. However, in the current economic climate our experience is that our clients' purchasing decisions are extended."
Group companies Amaze delivered a gross profit of £6m, Interact delivered £1.2m and The Chase brought in £1m, despite ‘a difficult year’, resulting in a shortfall of profit of £0.4m in comparison with the previous year.
This led to cost savings being implemented within the company in July.
The company has said that it expects the rest of 2011 to continue to be ‘challenging’ as a result of delayed client spend and the reorganisation within the business, but believes that it is ‘well placed’ to achieve expectations for the year.