Marketing communications group, MSQ Partners, has reported revenues (fee income) of £45.2 million, up 19% year on year. Headline operating profit also increased substantially by 20% to £3.6 million.
According to MSQ Partners’ results for the financial year ending February 2017, revenue at the group, which comprises of The Gate, Holmes & Marchant, Smarts Communicate, Stack, Stein IAS and twentysix, has increased to 19%. This contrasts sharply with the figure of 3.7% growth in advertising expenditure in the last financial year (according to the Advertising Association/WARC Expenditure Report – the UK’s definitive advertising statistics).
Peter Reid, CEO, MSQ Partners, comments: “The last financial year was one of outstanding progress for MSQ Partners. We delivered exceptional growth in a challenging market whilst maintaining investment across our agencies. By taking a long-term view of agency development and continuing to invest and develop our client portfolio both in the UK and globally, we are confident that MSQ will continue to deliver exceptional results in the years ahead.”
MSQ Partners now generates the majority of its revenue from digital and content-led activity, and this segment of the business has remained the fastest growing in the year to date.
The financial year ending February 2017 saw MSQ Partners secure positions on both key HMG communications rosters and recent multi-channel wins have included The Electoral Commission, Hertz, LDF, Merck and Navigator. These wins and strong organic growth helped the marketing group boost its revenues.
MSQ Partners has also implemented a number of structural and operational modifications to further enhance prospects for continued growth. These include the acquisition of Stein IAS in New York in October 2015 and the expansion of Smarts Communicate in London.
Since acquiring Stein IAS, MSQ Partners has opened a further Stein IAS office in San Francisco. The strategic addition has allowed access to technology and other businesses in the West Coast of the USA, and acts as a further platform for continued revenue growth, along with the ability to access and retain additional talent in the US market.
This year also saw the expansion of Smarts Communicate into London. The PR and content business, whose clients include British Airways, BT and Diageo, has a long heritage in Northern Ireland and Scotland. The opening of the office enabled Smarts to capitalise on new business opportunities on a larger scale, acting as a further platform for continued growth within the agency.