Karmarama's turnover jumped 20% ahead of Accenture sale

Karmarama's turnover jumped 20% to £39.2m in its most recent financial year before its sale to Accenture Interactive, the creative agency's accounts show.

Ben Bilboul: Karmarama's chief executive
Ben Bilboul: Karmarama's chief executive

Revenues, which exclude production costs, rose 6% to £25.2m in the 12 months to April 2016.

The accounts for Karma Communications Holdings, which were signed off days before Accenture Interactive bought the agency for an estimated £50m, say new clients Just Eat, Confused.com and Unibet helped to drive growth.

Phoenix Private Equity invested in Karmarama in 2011 and had been its the biggest shareholder.

Ben Bilboul, the chief executive of Karmarama, claimed the agency’s performance had improved further since April.

"The accounts we’d like to show you are for this year," he said, explaining that it has only been in recent months that "the real impact" of the arrival of Nik Studzinski, the chief creative officer who joined last year, has been felt.

Karmarama had a debt-funded private equity structure that meant it paid interest to its owners and it made a pre-tax loss of £5.7m. 

Want to find out more about the emerging trend of mergers and acquisitions? Join Campaign's editorial team at a special breakfast briefing on 14 March to hear directly from the executives involved in Accenture's acquisition of Karmarama.  Book your tickets here

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