Incepta warns that attacks in US cost it £2.5m

Incepta yesterday joined the growing ranks of media firms cautioning that profits will drop following last month's attacks in the US, which cost the group £2.5m in lost business.

The company, which owns the London-based financial public relations firm Citigate Dewe Rogerson, axed 170 jobs in the first half to counter slowing demand for its services, particularly on the US west coast where most of the cuts fell. It took a £3.9m charge as a result.

Richard Nichols, the chief executive, said there were "no immediate plans for further restructuring", adding the caveat: "We have to be proactive because visibility is short." Analysts said further job losses were likely.

Mr Nichols said the group's strength in marketing services and financial PR should see it through the wider downturn.

"What distinguishes us from the likes of WPP and Cordiant [Communications] is that our business has no consumer advertising – it's all below the line," he said.

Incepta reported a 3 per cent rise in pre-tax profit before goodwill and exceptional items for the six months to 31 August of £14.6m. First-half underlying sales fell 5 per cent.

Its shares recovered from an early fall of 18 per cent to close unchanged at 28p.