(Alliance News) - SEC Newgate SpA on Tuesday said profit fell significantly in 2019 as costs and expenses, particularly employee expenses, offset higher revenue.
Shares in the Milan-based communications and PR firm were up 7.2% at 32.70 pence in London.
Revenue rose significantly to EUR47.6 million in 2019 from EUR29.0 million in 2018 as the 2019 results include fourth months of combined trading from SEC SpA and Porta Communications PLC after their September merger, while 2018 includes only results from the previous SEC SpA group.
However, employee expenses doubled to EUR23.4 million from EUR12.6 million on a rise in wages, salaries and non-executive fees to EUR18.4 million from EUR10.1 million. In combination with other cost and expense increases, this helped drag pretax profit down 40% to EUR1.3 million from EUR2.2 million.
Chair John Foley said: "The first quarter of 2020 started very well with the group's profitability ahead of budget. The company's liquidity position is strong enough to withstand uncertain business demand for the foreseeable future and we remain confident and enthusiastic about the prospects for the enlarged group".
Chief Executive Fiorenzo Tagliabue said: "The success of the most significant corporate event of 2019 is clear in our results and we continued to reap the benefits of the enlarged group in the first four months of the current year. Despite the challenges of the coronavirus emergency the group's performance is stable and remains in line with budget".
By Anna Farley; annafarley@alliancenews.com
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