A mixture of developments fuelled further growth in the sector’s share price index during the month to 12 October. The sector’s MSFI Index rose by 5.5% while the FTSE All-Share Index remained almost unchanged.
Shares in M&C Saatchi benefitted from an improved underlying profit in the first half, before suffering from the distorting impact of a misleading accounting rule (see M&C Saatchi prospers despite what the numbers show). Improved results from email marketing software specialist dotDigital were also distorted downwards by a different, but equally barmy, accounting rule (see dotDigital achieves over 30% growth). In both cases the stock market read behind the figures and, in doing so, illustrated how the credibility of accounting standards is being put to the test and found wanting.
The share price at Hasgrove benefitted from a better performance after the business was restructured last year and the company disposed of its Interel public affairs consultancy.
Price improvements were also recorded at WPP, Next Fifteen Communications Group, Tangent Communications and Cello Group.
At the other extreme, share prices fell back at Creston, Porta Communications and Weare 2020.
Several companies have ceased to be traded on the stock market. For example, administrators have been appointed at Adventis Group. And WFCA has been acquired by Porta Communications, although the deal has yet to make a positive impact on Porta’s share price.
Meanwhile shares in Aegis Group remain listed until the Dentsu takeover is completed.