LONDON, May 1, 2003 (PRIMEZONE) -- Cordiant Communications Group plc ("Cordiant") (NYSE:CDA) (LSE:CRI):
-- Revenues down 11.3% on an underlying basis to 532.7 million
Pounds (2001: 605.0 million Pounds)
-- Operating expenses* cut by 12.2% on an underlying basis to
495.7 million Pounds (2001: 568.5 million Pounds)
-- Operating profit* up 1.4% to 37.0 million Pounds. Operating
margin* increased to 6.9% from 6.0% in 2001
-- Restructuring plan announced in September 2002 now complete with
annualised cost savings in excess of 45.0 million Pounds,
18.0 million Pounds ahead of plan
-- Exceptional operating expenses of 45.6 million Pounds, exceptional
goodwill impairment of 171.1 million Pounds, goodwill amortisation
28.9 million Pounds
-- Reported pre-tax loss of 228.2 million Pounds (2001: 270.8 million
Pounds loss)
-- Adjusted headline earnings* per share stable at 3.6p (2001: 3.6p)
-- Agreement in principle with lenders on continuing financing
arrangements
* shown pre-goodwill amortisation and impairment and pre-exceptional operating expenses
April 30, 2003
Enquiries:
Cordiant Tel: +44 (0) 20 7457 2020 David Hearn, Chief Executive Officer Andy Boland, Finance Director College Hill Tel: +44 (0) 20 7457 2020 Alex Sandberg Adrian Duffield
Conference Calls: There will be a telephone conference call with David Hearn, Chief Executive and Andy Boland, Finance Director at 1000hrs UK time (0500hrs NY time). To participate please dial the following number +44 (0) 207 162 0182. A replay facility is in place for 48 hours immediately following the conference call. To activate, dial the following number +44 (0) 208 288 4459 using the PIN number 633442.
The preliminary audited results can be downloaded from the following link: http://reports.huginonline.com/901590/116964.pdf
Forward-looking statements: This press release contains certain"forward-looking statements" and information that are based on thecurrent expectations, estimates and projections of Cordiant'smanagement and information currently available to Cordiant. Thesestatements are not guarantees of future performance and involvecertain risks and uncertainties that are difficult to predict. Inaddition, some forward-looking statements are based upon assumptionsas to future events that may not prove to be accurate. Thesestatements typically contain words such as "intends", "expects","projects", "anticipates", "estimates", "will" and words of similarimport and, in this release, include statements relating toCordiant's revenues, profitability, debt restructuring, assetdisposals and cost reduction programme. Cordiant's actual performancecould differ materially from that anticipated depending on, amongother things, gains to or losses from its client base, the amount ofrevenue derived from clients, the challenges of managing Cordiant'sglobal operations, including Cordiant's exposure to changes in theexchange rates of major currencies against the pound sterling, thegeneral level of advertising expenditures in Cordiant's markets, theoverall level of economic activity in Cordiant's major markets, therestrictions imposed by Cordiant's indebtedness, Cordiant's abilityto restructure its existing indebtedness, employee costs, the loss ofkey personnel, future interest rates, changes in tax rates and otherregulations that affect Cordiant's businesses, and other factorsdiscussed from time to time in Cordiant's public filings with theU.S. Securities and Exchange Commission, including Cordiant's AnnualReport on Form 20-F. Many of the factors named above aremacroeconomic in nature and are, therefore, beyond the control ofCordiant's management. Should one or more of these risks oruncertainties materialise, or should underlying assumptions proveincorrect, actual performance may vary materially from thosedescribed herein as anticipated, believed, estimated, expected,intended, planned or projected. Cordiant does not intend, and doesnot assume any obligation, to update the forward-looking statementscontained in this document.