Its confirmation came in a trading statement issued this morning, which ended speculation over the future of parts of its business. The statement also revealed that revenues for 2002 are set to be down for the year by 11% to 拢533m, which it said was in line with expectations.
It is also looking at exercising its option to sell its 25% stake in Zenith Optimedia Group in January 2004. However, Healthworld, the specialist medical network, will remain as part of the Bates Group, despite reports that Cordiant has been approached over the sale of the company.
The Bates Group will become the focus of Cordiant -- it already represents 85% of group revenues. As well as Healthworld, it includes Bates Advertising, the marketing services network 141 and design group Fitch.
Cordiant had already confirmed that it was in talks about selling its Australian businesses, which include the creative agencies George Patterson Bates and The 北京赛车pk10 Palace, as well as a stake in ZenithOptimedia.
The company has warned that prospects for the year ahead remained flat, but that its 2002 performance is in line with expectations. It said that cost savings of 拢45m exceed its previous estimate of 拢27m.
Cordiant is disposing of non-core assets to strengthen its balance sheet -- the group currently has gross debt of 拢249m. It is anticipating an exceptional charge of 拢155m to be included in its 2002 results.
Cordiant said in the trading statement that it expects operating profits before exceptional items and goodwill amortisation for 2002 of 拢37m.
David Hearn, chief executive of Cordiant, said: "Market conditions remain depressed and we see little prospect of revenue growth this year. We've aggressively driven costs down by a further 拢45m into 2003 and are now focusing the group on its core strengths. This will also rebuild our balance sheet. We are creating a leaner, stronger group better placed to win revenue in the future."
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