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July 6, 2015
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UK: Crown Profit Halved Thanks to Increased Costs

The time and money invested in winning new clients has halved profit at London-based event agency Crown Business Communications.

Crown posted pre-tax profit of £199k in the company’s latest accounts for the year-ending 31 December 2014, down 49 per cent on 2013’s figures. But, while turnover was up, from £6.8 million, to £7.1m, the cost of sales increased by £400k, and administrative expenses also increased, by £50k. 

The agency, which employs around 30 staff at its base in Soho Square, had seen profits soar by 225 per cent between 2012 and 2013, and clients include Citroen, Peugeot, Old Mutual and SAB Miller Europe. Crown is also among the 18 agencies appointed to the government’s £50m events framework. 

Crown declined on comment on the figures, but the directors’ report, filed with the accounts last week, said: “The growth in sales can be subscribed to the volume of new client wins. The competitive environment experienced when pitching, and the investment in time required when working with new clients, is reflected in a lower year-on-year net profit margin."

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