Media Square said trading in the second half of its financial year to February 29 has continued in the pattern of the first half -- with losses incurred in its advertising business in Germany and in some of its UK based marketing businesses.
Roger Parry, executive chairman, said the company had come through a traumatic period of painful self-evaluation and said that while the group was going into the next year '"with a much simpler and more focused group", it was cautious about the outlook for the next 12 months.
Acquisitions by the company, which were talked of in November, now seem to be off of the cards.
The company, which owns digital agency Twentysix London and direct agency Clark McKay & Walpole, said a number of other business units are still underperforming "significantly" on their budgets. This has led to the group making a small underlying operating loss for the full year.
The restructure of the company, which began in November, is now largely complete and will result in one-off exceptional restructuring costs in the full year of approximately £5m, which is higher than estimated.
The restructure resulted through sale, closure and a reduction of its 40 businesses to 15, which are now organised into three divisions.
Today, Media Square announced that Beetroot, its contract publishing arm, and Symbian, a print buying firm, are to be sold for £500,000.
Parry said: "It is a great relief that this past trading year has come to an end. The company has gone through a traumatic period of painful self-evaluation and costly restructuring.
"Following all the acquisitions, Media Square was being held together by bits of string and Blu Tack. We have now put in place a more robust structure.
"Inevitably, during a time of so much change, a number of business units have underperformed their potential.
"We go into our next trading year with a much simpler and more focused group. But, of course, the macro-economic prospects for marketing communications in the UK are challenging, which means the board is cautious about prospects for the next 12 months."
Media Square will report its annual results for the twelve months to February 29 on June 10.