Disappointing profit statements and the controversy surrounding Sir Martin Sorrell’s remuneration package dragged down the stock market’s view of the marketing sector in the month to 12 June. The industry’s MSFI Index fell 6.53% to 26.0 (Jan 2001 = 100) while the FTSE All-Share Index slipped less dramatically by 2.20%.
As if to show that a vigorous personal defence of a chunky reward package does not pay, WPP’s share price lost 6.7% of its value in the month (see Shareholders vote down WPP remuneration report).
Shares in Creston lost 21.3% of their value as the group reported a 27% fall in pre-tax profit on a like-for-like basis (see Creston profit boosted by exceptional £4.8m gain). Shares in Huntsworth continued in decline after reporting disappointing results in April.
Aegis Group also came under the spotlight as the price fell by 6.1% in the period, suggesting investors are not yet convinced about its development strategy after selling off its Synovate research division.
Shares in Adventis Group bowed to the inevitable ahead of yesterday’s announcement that investors would probably be facing an insolvency situation (see Adventis duo fails to deliver turnaround: nothing left for shareholders).
Tangent Communications and Ten Alps were among only a few companies whose shares showed any cheerful price movements in the month. Tangent’s shares rose by 8% after announcing improved results and confidence in Ten Alps followed moves to strengthen its balance sheet.