The STW Group has recorded a strong result for the last financial year with revenue up 12.4%, despite what chief executive Michael Connaghan described as a “tsunami of change” for the industry.
The marketing and communications group posted revenue of $402.1m for the year ended December 31, up 12.4% on the previous year.
Earnings before tax rose 10.5% from $79.3m to $87.6m as net profit hit $49.5m, up 12.5% on the previous year.
A boom in digital revenues was recoreded with a jump to $185m.
In a statement to the ASX this morning Connaghan said the results were pleasing in the face of challenging economic conditions.
He said the Group is starting 2014 in “great shape” and anticipates mid-single digital growth in net profit after tax for the full year ended 31 December 2014, prior to any new acquisitions”.
He highlighted the Group’s needs to diversify and signalled a continued push into areas such as data and research following the investments in Colmar Brunton, Beyond Analysis, Cru Digital, experiential firm Maverick and CPR Vision last year.
“We will continue on this path to ensure STW Group remains relevant and leading edge, irrespective of how quickly client marketing support needs change,” he added.
“Importantly, STW’s resilient and consistent growth performance highlights the benefits of the diversification and scale that underpins our business model. We have largely held margins while being able to invest significant funds into training, incubating new businesses and developing intellectual property.
“STW’s three pillared strategic growth focus remains firmly on track; we continue to drive growth out of our leadership positions in Australia and New Zealand; continue to ‘future proof’ our business by growing and leading in the evolving areas of our services, including digital and data; and are making very pleasing progress with the selective and careful export of our business into new markets in Asia and beyond.”