Smyle ends 'solid' financial year with improved gross margins

Agency Smyle has reported a growth in gross margins for the 2013/14 financial year, despite a dip in turnover of 4.5% to £8.24m.

Rick Stainton, Smyle’s managing director
Rick Stainton, Smyle’s managing director

Rick Stainton, Smyle’s managing director, told Event he was happy with the results, which demonstrate the company overcoming the cancellation of a £2m project due for delivery at the end of the financial year. 

"I’m really buzzed by the results and it’s a strong start to our new three-year plan," he said. "We’ve had four new client wins across the media, telco and financial sectors, which have partially offset that cancellation. It’s also meant that long term, we’ve created a more resilient customer base."

The year also saw the agency focus on organic growth through fostering existing client relationships. A new London office was set up last summer to improve communication with clients in the capital, while there has also been ‘significant’ investment in account management processes and talent. 

Smyle is provisionally forecasting a turnover of £10m for 2015. "We’ve got some great opportunities from the new year onwards so we’re looking at a very strong 2015," Stainton said. "As well as organic growth we’re looking to develop both formal and informal partnerships and continue our work overseas with the UKTI’s Creative Industries' Task Force."

David Hornby, Smyle’s strategic director, added: "It is good to see we are pursuing an ambitious three-year growth plan closely through volatile economic times. But we are conscious of managing the growth effectively to continue providing excellence across all projects and strengthening our client relationships – compromising on either is never an option."

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