Investment: City won't buy Cordiant pitch
Friday 18 September 1998
There was certainly nothing wrong with Cordiant's first-half results. Despite the loss last year of large accounts such as Compaq and Texaco, revenues were up by 4 per cent when adjusted for currencies. Operating profits rose by 11 per cent on the same basis.
Turmoil in the Far East has forced the company to make 200 staff redundant at a cost of pounds 1m, to be taken in the second half. But Cordiant remains on track to meet its own target of achieving 10 per cent operating margins next year. First-half margins were just 5.7 per cent, although the company does make most of its profit in the latter part of the year.
Investors remain unconvinced, however, knocking Cordiant shares down 1p to 107.5p yesterday. Given the advertising industry's natural propensity towards hype, this is understandable.
However, the City's reaction may be excessive. Even the most gloomy forecasts predict a slowdown in advertising spending rather than a decline. What's more, unlike its former parent in the late 1980s, Cordiant is not carrying a huge load of debt.
Panmure Gordon forecasts full-year profits (excluding the redundancy payment) of pounds 27m, putting the shares on a forward earnings multiple of about 17. Although investors will probably steer clear until the industry outlook becomes more clear, the shares offer good long-term value.
International Women's Day 2014: The shocking statistics that show why it is still so important
Singapore sting: Sky-high prices are pushing locals to the edge of affordability
International Women’s Day: 'When a man gives his opinion, he's a man. When a woman gives her opinion, she's a bitch' - feminist quotes from female icons to inspire you
International Women's Day 2014: Cherie Blair - ‘Today is a chance to see how far we still have to go’
Dead woman's body found sitting in a car after six years after direct debits ran $54,000 bank account dry
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Ukraine crisis: Russia dismisses '3am ultimatum' as 'total nonsense'
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
White people become less racist just by moving to more diverse areas, study finds
Exclusive: Impact of immigrants on British workers ‘negligible’
- 1 International Women's Day 2014: The shocking statistics that show why it is still so important
- 2 Orgasm machine to deliver climax at the push of a button
- 3 Singapore sting: Sky-high prices are pushing locals to the edge of affordability
- 4 Liam Neeson turned down James Bond role because late wife Natasha Richardson said she wouldn't marry him if he took it
- 5 Dead woman's body found sitting in a car after six years after direct debits ran $54,000 bank account dry
iJobs Money & Business
£12000 per annum: Inspiring Interns: The company works with Tier 1 FTSE 100 Ba...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...