Contract volatility erodes Creston profit

- Profit hit by loss of previously announced contract with Sanofi- Well placed for future trading- Increases dividend 20 per centShares in market research and communications firm Creston fell after it posted a steep decline in interim profit following the previously announced loss of a contract with Sanofi, as the company explained to Sharecast. Pre-tax profit slumped to £1.6m in the six months ended September 30th from £7.9m the same time in 2012. Revenue fell to £35.7m from £37.2m.Headline earnings before interest, tax, depreciation and amortisation (EBITDA) fell to £4.6m from £5.4m.Chief Executive Don Elgie said: "Revenue and profits for the six months are lower than previously anticipated, primarily as a result of volatility related to the phasing of some client work across the group and the exceptional amount of time incurred in new business activity."While client budgets remained under pressure, new clients included Bentley, HSBC, Novartis, Reckitt Benckiser and Sony PlayStation."The work we have done in recent years to position Creston in the fast growing areas of communications, such as digital, will see us well placed to take advantage as volatility reduces and client budgets are under less pressure," it added.The half-year dividend has been increased 20% to 1.20p per share.Shares of Creston sank 8.82% to 90.50p at 09:10 in London.CJ Conduit Hldg