Print Published 28th Feb 2019, 16:12

Underperforming acquisitions convert Iris loss in 2017 to profit

Iris Worldwide Holdings, the digital agency acquired by Korean based Cheil Worldwide in 2014 (see Iris turns to Cheil to replace Meredith funding), suffered a 60% fall in operating profit in 2017 and reported a post-tax profit of £975,000 compared with £4.5 million in the previous year.

However, the picture would have been much worse had it not been for fortuitous revaluation gains of £2.6 million arising from a downward revision of deferred purchased obligations on the recently acquired subsidiaries Pricing Solutions and Founded Partners, presumably reflecting poorer performances than originally anticipated.