PR firm predicts growth as clients shop around

Sep 12 2008 by Graeme King, The Journal

THE biggest PR and marketing agency in the North East has posted a 19% increase in sales and is forecasting further growth despite the state of the economy.

Robson Brown in Newcastle racked up sales of £28.9m in the 12 months to the end of February, up from £24.2m the year before.

And now chief executive Alan Brown says the firm expects to hit £31m or £32m in the current financial year, though admits the economic downturn is hurting some of its customers.

Profits at Robson Brown have declined slightly in the past year to £589,600, down 2% from the £603,866 achieved in 2007. This was attributed to a change in the type of sales made by the firm, a cut in the margin made on production and a 6% rise in overheads. The rise in sales was largely put down to a big increase in low-margin media sales.

The firm has stepped back from its growth into London and Manchester in recent times, closing its presence in the capital, and reviewing the way it works in the North West.

Mr Brown said some firms would choose to cut marketing spending at a time of economic problems, but many would continue investing. He said the importance of any spending getting a return would persuade them to turn to a “full service” agency such as Robson Brown.

He said: “We have a pretty robust business plan, which we keep looking at and readjusting. We have a good grasp of how the business is and how it’s performing.

“In these difficult economic times, if people are spending on marketing, they want to know it’s a wise investment and they will get a return on it. Because we have it all in-house, we believe we can get a bigger share than others.

“We are making investment in digital marketing – that is the new kid on the block. The key to it is integrating it all together and most people don’t do that. We are not going to be immune to what’s happening in the wider world, but providing we employ the right people, with the right aims and objectives, and the right clients, we should be fine.”

Mr Brown said Robson Brown was reviewing how it works in Manchester, but said he could not comment in detail.

“We have lots of business in Manchester and we have sufficient business to be a big agency. Because of the way technology is, we can handle it pretty well from here.”

Robson Brown was set up 24 years ago by Stuart Robson and Alan Brown, who met while working for Thomson Regional Newspapers, the former owner of The Journal.

The 10 directors of Robson Brown earned an average of £110,000, adding up to a total board level salary bill of £1.1m, up 12% from the previous year.