Print Published 14th Jun 2018, 09:47

Sector share prices: 12 June 2018

Share prices in the marketing sector bucked the positive wider trend as the industry’s MSFI Index fell by 5.03% in the month to 12 June while the FTSE All-Share index remained almost unchanged.

Leading the downward slide were shares in dotDigital Group which fell by 20.2% in the month after the company disclosed that the acquisition of the Comapi group of companies and its multi-channel messaging software had had an initial adverse impact on the group’s operating profit margin in the half year to 31 December 2017 (see dotDigital’s expansion temporarily erodes margins).

Communisis shares were down by 11.7% as revenue growth slowed, despite having improved its profit margins and reduced its pension fund deficit (see Communisis squeezes 36% profit growth out of 4% revenue increase).

Overall, more than half of the marketing companies experienced a fall in their share prices.

But there was some good news. Shares in Zinc Media improved by 47.6% in the month and those in Huntsworth improved by 19.1%. Both companies announced a return to profit earlier this year (see Zinc Media Group returns to profit and Big Huntsworth turnaround provides chairman Mapp’s swansong).

Shares in St Ives improved by 14.9% after the book printing and marketing group sold its Clays book printing business for £20 million in cash net of expenses (see St Ives collects £20m as it sheds book printing).

Shares in WPP remained in the doldrums in the wake of Sir Martin Sorrell’s departure, losing another 4.9% of their value in the month and 25.4% over the past year (see WPP’s share price gets the shivers). The price lost further ground yesterday as shareholders voiced their disapproval of the terms of Sir Martin’s departure and learned that group’s gross income had fallen by 5% in the first four months of 2018 (see WPP still being held back by its Kantar businesses).