Pre-tax profit at Mother drops 20% after 'challenging year'

Pre-tax profit at Mother Holdings fell nearly 20 per cent, from £6.9 million to £5.54 million, in 2012, after what the directors called "another challenging year".

Mother: cheaper than a favour ad for Halfords
Mother: cheaper than a favour ad for Halfords

But net profit at the group (which comprises 28 companies) was up 12 per cent, from £2.21 million to £2.48 million, due to a lighter tax bill (down 46 per cent to £1.35 million) as a result of careful tax planning, said an agency spokesman.

Turnover at Mother Holdings in 2012 was £132.2 million, up 10 per cent on 2011's £120.4 million, according to documents filed at Companies House. Gross profit was up nearly 17 per cent, from £58 million to £67.6 million.

In the report, the agency’s directors said the boost was down to a small pick-up in the global economy and several client wins.

Mother’s operating profit margin – one of the agency’s key performance indicators – was down from 11.8 per cent in 2011, to 8.2 per cent in 2012. This drop came as staff costs rose 22 per cent, from £30.5 million to £37.3 million. Over the same period, the number of staff at Mother rose from 449 to 509.

In 2012, Mother paid its directors £396,666, down from £458,520 in 2011. The highest-paid director received £85,000. Mother also paid dividends to its directors amounting to £1.75 million, down 30 per cent on the £2.49 million paid in 2011.

Mother’s balance sheet remained strong, with slight rises in cash at the bank and net assets, to £4.6 million and £8.2 million, respectively.

In September this year, Mother sold digital agency Poke to Publicis Group UK for around £10 million.

Topics

Become a member of Campaign from just £45 a quarter

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.co.uk ,plus get exclusive discounts to Campaign events

Become a member

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

Partner content

Share

1 Job description: Digital marketing executive

Digital marketing executives oversee the online marketing strategy for their organisation. They plan and execute digital (including email) marketing campaigns and design, maintain and supply content for the organisation's website(s).