LONDON, April 22, 2002 (PRIMEZONE) -- Cordiant Communications Group plc ("Cordiant") (NYSE:CDA) is the world's eighth largest global marketing communications group with over 10,000 employees in more than 216 offices spanning 80 countries (including affiliates).
-- Revenues up 17.9% to 605.0 million pounds (2000: 513.0 million
pounds). Revenues decreased by 8.0% on an underlying basis.
-- Operating profit (pre-exceptional items and goodwill)
36.5 million pounds (2000: 61.4 million pounds).
-- Operating margin (pre-exceptional items and goodwill) at 6.0%
(2000: 12.0%).
-- Pre tax profit (pre-exceptional items and goodwill) 25.7 million
pounds (2000: 57.5 million pounds).
-- Exceptional operating charge of 27.6 million pounds. The Group is
targeting incremental cost savings in excess of 30.0 million
pounds in 2002.
-- Exceptional goodwill impairment of 224.8 million pounds.
-- Adjusted diluted headline earnings per share down to 3.6p
(ADS 25.9 cents) from 11.4p (restated) (ADS 86.6 cents).
-- Agreement with lenders to amend terms of the Group's financing
arrangements now finalised.
-- The Board does not propose to pay a dividend in respect of 2001
(2000: 2.1p per Ordinary share).
Michael Bungey, Chief Executive of Cordiant, commented: "Whilst previous rates of revenue decline have abated, and we are seeing early signs of business activity emerge, we forecast no revenue growth this year. The measures we have taken to reduce our cost base are targeted to deliver a 50% improvement in margin. The mix of businesses we have assembled, coupled with a maintained focus on cost, positions us well to profit quickly from any sustained upturn."
Presentation: The Preliminary Results presentation is available on the Cordiant website, http://www.cordiantww.com, from 0800hrs U.K. time (0300hrs N.Y. time). A presentation to analysts will be held at 11:30hrs U.K. time at College Hill Associates, 78 Cannon Street, London, EC4.
Conference Call: There will be a telephone conference call with Michael Bungey, CEO and Art D'Angelo, CFO at 1500hrs U.K. time (1000hrs N.Y. time). To participate please dial the following number in London, +44 (0) 20 8515 2342. A replay facility is in place for 24 hours immediately following the conference call. To activate, dial the following number in London, +44 (0) 20 8797 2499, using the PIN number 117217#.
Forward-looking statements: This press release contains certain "forward-looking statements" and information that are based on the current expectations, estimates and projections of Cordiant's management and information currently available to Cordiant. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. In addition, some forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. These statements typically contain words such as "intends," "expects," "anticipates," "estimates" and words of similar import and, in this release, include statements relating to Cordiant's revenues, profitability and cost reduction programme. Cordiant's actual performance could differ materially from that anticipated depending on, among other things, gains to or losses from its client base, the amount of revenue derived from clients, Cordiant's exposure to changes in the exchange rates of major currencies against the pound sterling, the general level of advertising expenditures in Cordiant's markets, the overall level of economic activity in Cordiant's major markets, employee costs, future interest rates, changes in tax rates and other factors discussed from time to time in Cordiant's public filings with the U.S. Securities and Exchange Commission, including Cordiant's Annual Report on Form 20-F. Many of the factors named above are macroeconomic in nature and are, therefore, beyond the control of Cordiant's management. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual performance may vary materially from those described herein as anticipated, believed, estimated, expected, intended, planned or projected. Cordiant does not intend, and does not assume any obligation, to update the forward-looking statements contained in this document.
For report with tables, please follow this link: http://reports.huginonline.com/856262/102267.pdf