STW Group earnings drop by 5 per cent with CEO Mike Connaghan blaming lack of new business

Mike Connaghan July 2014 (2)STW Communications Group’s earnings dropped 5 per cent last year with CEO Mike Connaghan pinning the blame on the group’s new business record, signalling it is undergoing a “strategic and structural review of the business”.

While company revenues were up 10.1 per cent to $442.9m for the year ended December 31, earnings before interest, tax, depreciations and amortisation (EBITDA) were down 5 per cent to $83.3m, with underlying net profit down 7.8 per cent to $45.6m.

The announcement of the group’s financial results follows on from the resignation of chief operating officer Chris Savage on Wednesday.

Shares in the company have plunged over the last 12 months, although they have picked up from a low of 88c on January 29 and are trading today at $1.025, amid speculation the group could be an acquisition target for WPP.

Subscribe to keep reading

Join Mumbrella Pro to access the Mumbrella archive and read our premium analysis of everything under the media and marketing umbrella.

Subscribe

Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.

"*" indicates required fields

 

SUBSCRIBE

Sign up to our free daily update to get the latest in media and marketing.