Rise in turnover for McConnells despite downturn

The largest Irish-owned advertising agency in the State, McConnells, increased turnover and profits in 2002 despite a major downturn in its sector.

Accounts for the McConnell Group Ltd for 2002 have just been lodged with the Companies Office. They show turnover rising to €76.5 million from €73 million in 2001 and pre-tax profits up to €5.3 million from €5.2 million in 2001.

The company paid a €2 million dividend to its shareholders and this reduced the amount of retained profit in the company from €4.2 million to €2.4 million.

The dividend was based on a payment of €30.68 per share. No dividend was paid in 2001. While the chairman of the company, Mr John Fanning, director Mr Gregory Jones and chief executive Mr Jarlath Jennings have large shareholdings, several other staff members also hold shares, according to the company's annual return. Mr John Fanning is a director of The Irish Times Limited.

The company now has accumulated profits of €12.2 million on its profit and loss account. In relation to future performance, the accounts state: "The group had a satisfactory year. It is anticipated that satisfactory growth will continue in 2003."

Last year was one of the toughest years for some time in the advertising sector with several companies coming under pressure. However, McConnells' stable of blue-chip clients helped to insulate it from the downturn. According to the firm's website its clients include: AIB, ESB, Mars, the National Lottery, Eircom and Johnson & Johnson.

The number of staff working at the agency and its subsidiaries dropped in 2002 to 132 from 146 the year before.

The fall in employee numbers reduced the company's overall pay bill from €8.05 million to €7.99 million.

McConnells, which operates subsidiaries in public relations, direct marketing, recruitment, multimedia and media buying/planning, has been the subject of intense takeover speculation for several years. Several international advertising groups are understood to have shown interest in the company, but none of these approaches have come to anything.