Media Square reverses profit forecast

The marketing services company Media Square has said it expects to report a loss for the year to the end of February, after originally forecasting that it would make a small operating profit. The company, which recently acquired ad agency Chick Smith Trott for £430,000 , said that trading in the half year to the end of February had been "significantly stronger" than in the first six months. Media Square added that this was as a result of cost-saving measures implemented in response to clients slashing marketing budgets. However, while Media Square said it expects to be profitable, before including exceptional items, in the second half of the company's financial year, the board "now anticipates an overall trading loss" for the year to 28 February. The company had previously said it expected to make a "small operating profit". Media Square also said that there are "no signs of any significant increase in clients' marketing budgets for the coming year but there are few indications of any clients cutting back further on their 2009 spending levels". "Looking forward the board is confident that, following the full effect of the restructuring, the cost base of the group both at a headquarters and at an agency level will be much lower than in previous years, enabling the group to build on the momentum of the second half of the current year," the company said. • To contact the MediaGuardian news desk email [email protected] or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. • If you are writing a comment for publication, please mark clearly "for publication".