Core records €1m profit in year of higher costs

Period of investment in marketing group is ‘starting to pay off’, says chief executive

Core chief executive Alan Cox, pictured at 1 Windmill Lane. Photograph: Cyril Byrne/The Irish Times.

Core chief executive Alan Cox, pictured at 1 Windmill Lane. Photograph: Cyril Byrne/The Irish Times.

 

Profit at marketing communications group Core dropped by a third to €1 million in 2018 after it moved to new premises in Dublin and made investments in its data analytics and creative teams.

Higher costs in the group meant Core’s net profit fell from €1.6 million the previous year, accounts filed at the Companies Office for Core 1WML Limited show.

“For the last 24 months, we have been in a period of investment to make sure the company is properly structured and focused,” said chief executive Alan Cox. “That is starting to pay off in terms of new revenue opportunities.”

The main business of the group, which is chaired by Greencore chief executive Patrick Coveney, is to plan and purchase advertising on behalf of its clients.

Turnover for Core 1WML, which relates to client billings, was €212.5 million in 2018, similar to the year before, while its gross profit on this business increased 5 per cent to €31.5 million.

However, costs rose 10 per cent to €29.6 million, meaning its pre-tax profit of almost €1.4 million was lower than the €2 million recorded in 2017.

The company, which is the largest marketing communications group in Ireland, employed an average of 341 people last year, up from 277, as it built up the creative side of the advertising business.

Core Creative recently won the pitch for Heineken’s cider brands and has also worked on campaigns for Lily O’Brien’s and An Garda Síochána.

Core has also added to its data analytics staff in line with a growing trend in the global marketing industry. The group last year relocated most of its operations to the 1 Windmill Lane office building in Dublin 2.

French advertising giant Publicis Groupe has a 16 per cent stake in the company.