(Alliance News) - SEC Newgate Spa said Monday its profit declined in the first half of 2019 on higher costs, both recurring and exceptional, despite revenue growth.
SEC Newgate was formed in early September following SEC Spa's takeover of Porta Communications PLC for GBP4.5 million.
For the six months to the end of June, the communications firm reported pretax profit of EUR252,000, down 64% from EUR700,000 a year before.
This was mainly due to higher expenses, with employee costs rising by 20% to EUR7.3 million, depreciation & amortisation costs by sixfold to EUR758,000.
Revenue meanwhile, grew by 20% to EUR13.7 million from EUR11.4 million the prior year, reflecting organic growth from existing operations in Italy, and a contribution from French public relations firm CLAI of EUR490,034 in November.
Looking ahead, following the acquisition of Porta, SEC Newgate's acquisition plan remains an important part of its strategy. With operations in four continents, the company's next priority will be to enter the North American market, it said.
"Our subsidiaries continue to improve their performance while we have maintained our investment in time and resources in order to fine tune their internal processes to improve the results we produce for our clients. New business activities, boosted by new client referrals from satisfied clients, are core to our success and an increasing area of strategic focus," said Chief Executive Officer Fiorenzo Tagliabue.
Shares in SEC Newgate were down 4.9% at 39.00 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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