STW reports ‘disappointing’ first half but insists ‘tough decisions’ will deliver future growth
STW Communications Group has described the first six months of the financial year as “disappointing” after underlying net profit after tax tumbled 22.5 per cent to $15.1m.
The result, which saw organic revenue fall 4.2 per cent, comes on the back of a turbulent 2014 which saw profits fall and its share price collapse amid dismal performances from a number of its divisions.
The first half of this year has seen the the group consolidate a number of its agencies including rolling moon Communications and Shift into media agency Ikon.
STW’s share price fell a further 11 per cent to 63 cents this morning at time of publication, less than half what is was this time last year. It gave the company a market capitalisation of $276m.
This is a good example of prior management making bad decisions, screwing up a good business, getting away Scot free and ruining peoples live as they get retrenched because of it.
er…’why’, fairly certain Mr Connaghan has been the boss there for some time now
Get your resumes ready guys and girls, the shit is looking for the fan.
Yeh, there’s been a lot of it going round. Rural Press/Fairfax, woollies, ….. Form an orderly queue of lack-lustre leaders…..
Embarrassing result. ‘Revenue growth has been driven by acquisition and organic growth is down 4.2%’ – says it all. Have to buy to survive. The existing businesses they put under the Advetising Media and Production segment appear to be high cost low return drains. Diversified Communications had a stellar result in comparison.
Why – most of us old timers in this industry have been retrenched at one point or another. Part of agency life.
Don’t let it ruin your life.
…. “paging Sir Martin to the foyer”
Mike, what will it take for you to stand down? As a shareholder, you have overseen this. Is your judgement suddenly better than it was 5 years ago? Please depart gracefully. And get rid of the boys club on your way out.
Mike will be walked soon.
Sir Martin is already on the top floor STW and about to take his biggest bite ever.
A worrying sign when the largest digital agency, an stw company ‘of the year’ is losing clients and hemorrhaging staff while the market grows like gangbusters.
@Hoopla. Your comment totally on POINT. A much more concise version of my comment 😉