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Incepta says marketing spend showing signs of recovery

LONDON - Incepta, owner of the PR agencies Citigate and the Red Consultancy, has said that it expects modest growth for the year with levels of marketing spend showing continued signs of recovery.

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In a trading statement, the company said that it expected to return to double-digit operating margins, despite subdued merger and acquisition levels affecting its financial PR operations.

The financial and corporate communications division advised on transactions with a value of more than £90bn, including the sale of Premier Foods and the Postbank IPO.

Incepta said that the marketing services division, which includes Red, along with promotional marketing company Dynamo, had performed well, with new clients including Dell and McVitie's. Incepta Online had also seen growth with a number of new clients including Gallaher and NCP.

The company, headed by chief executive Richard Nichols, said: "While revenue visibility has only shown modest signs of improvement to date, the group's return to growth appears to be under way."

Shares in the company crept up this morning by 0.25p to trade at 70p.

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