Speaking at the advertising group's AGM today, Cordiant chairman Charles Scott said the decline in the first five months reflected the relatively high levels of activity experienced in the same period in 2001 compared with 2002.
"Despite this, the group has continued to meet its internal profitability targets as cost savings initiated in 2001 have been realised," he said.
This morning, reports emerged that chief executive Michael Bungey could face calls for his resignation at the company's AGM.
Reports suggested that two of Cordiant's investors, Brian Myerson and Julian Treger, were seeking changes to the company's senior management line-up having recently increased their stake in the company from 4.5% to 5% through their UK Active Value Fund.
In recent weeks, takeover talk has been constantly in the headlines, following the revelation that Cordiant had been in secret talks with French group Havas. The two denied talks, which would put Bates Worldwide and Euro RSCG Worldwide under one roof, were talking place.
Bungey's position has been brought into question on more than one occasion in recent times as Cordiant has suffered a string of account losses. Most recently, it lost the $35m (拢24m) CVS Pharmacy advertising account. But it has been rocked by the high-profile loss of the key Hyundai media and creative businesses.
Scott told the AGM that many of the markets in which Cordiant operates were still difficult and that the group was continuing to reduce costs.
"In the current revenue environment, our focus is on tight cost control to deliver a recovery in earnings. The group's target remains a 50% improvement in operating margins in 2002," he said.
Shares in the company fell this morning when the market opened, trading down 4p at 75p, a fall of 5.06%. This afternoon, its shares had regained some of the lost ground and had crept back up to 76.5p.
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