Hasgrove sounds positive after 65% profit fall
New business wins towards the end of 2009 prompted AIM listed marketing group Hasgrove to sound an optimistic note when reporting a 65% fall in post-tax profit last year.
The post-tax profit was £1.2 million after charging over £1 million of reorganisation costs and bad debts.
The recession had reduced revenues by 11.3% and the group’s operating profit margin on gross income slumped to 6.7% (2008: 18.7%).
According to the 31 December balance sheet, short-term liabilities exceeded readily realisable assets by £2.9 million. Net debt had increased slightly to £6.5 million, on top of which outstanding earn-out obligations amounted to £3.7 million. The company said it had bank facilities of £9.2 million at the year end.
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