Email the editor

Jack Morton posts £6.5m profit in 'peak' year

Large activations at the 2016 Olympics in Rio helped the agency increase pre-tax profit by almost £5m
29/09/2017

Pictured: Julian Pullan, vice chairman, president international at Jack Morton Worldwide

Jack Morton Worldwide recorded pre-tax profits of £6.5 million in a “peak” year for the agency.

Large activations at the 2016 Olympics in Rio helped the agency increase pre-tax profit by almost £5m, up from £1.7m in 2015.

Turnover rose by 53 per cent to £79.8m in 2016, from £52.2m in 2015, according to results filed at Companies House for the year ended 31 December 2016.

In the report accompanying the accounts Julian Pullan, vice chairman, president international at Jack Morton Worldwide, said: “As so much of our business is project based, we typically have peaks and troughs in our annual accounts, with a core bedrock of corporate client work growing at a steady pace, but large one off projects creating turnover spikes on top at irregular times, often influenced by macro events such as Olympics.

“2014, with the Commonwealth Games, was a peak year. 2015 was a trough, with no major one-off events and a consequent dip in turnover. 2016 however was another peak year, influenced by the Olympics in Rio at which we created large activations for sponsors, as well as a number of new client wins.”

Pullan added that the fall in sterling after the EU referendum had led to foreign exchange gains that had further boosted the agency’s coffers.

He said: “The company’s profit for the year is £6.5m (2015: £1.6m). The increase on 2015 is attributable to the ‘peak’ effect discussed above, coming after a ‘trough’ year as well in large part to a realisation of foreign exchange gains by exchanging substantial strengthened dollar and euro assets to sterling post the Brexit vote.”

The company had net assets of £19.4m at 31 December 2016, compared to £22.9m in 2015.

Looking to next year, Pullan said: “2017 will likely be more in line with the level of growth you would expect on 2015 results. A steady year with an ever growing list of fantastic clients.

“The company’s strategy is to continue to grow market share by generating demonstrable business value for leading brands through fresh insights, bold ideas and face to face and online engagements with their key communities.”

Jack Morton Worldwide is a subsidiary of IPG Holdings (UK) Limited, which has also just posted its results at Companies House for the same period. IPG Holdings increased pre-tax profit to £7.6m in 2016, up from £3.7m in 2015. Turnover also rose, from £1.42 billion in 2016 to £1.5bn in 2016.


Facebook Share Twitter Share LinkeIn Share