Caution creeps in even as PR supremos bag profits

Expertise: Fleishman Hillard MD Rhona Blake

Donal O'Donovan and Gordon Deegan

Irish-owned public relations firm Murray Consulting paid a dividend of just under €1m last year, despite a squeeze on profitability as cost increases outpaced growth.

Accounts just filed show Murray's profit before tax was €1.135m for the year ended December 31, 2018. That was down from €1.2m a year earlier. Turnover was up 5pc but costs - mainly staff related - rose faster, up 13pc.

Staff costs at the firm rose to €2.9m, even with headcount remaining steady at 30.

Managing director Pat Walsh said upward wage pressure is a feature of the market in PR and across the economy.

Client employee brand campaigns - aimed at recruiting and retaining staff - is a growing part of Murray's own business, he said.

Despite the pace of economic growth, client uncertainty is an increasingly a feature of the market, he said.

"Activity in the period and post year end has been focussed on supporting clients to navigate an increasingly uncertain environment, dominated by Brexit and trade tariffs, heightened regulatory demands and environmental sustainability challenges.

"That uncertainty makes for a somewhat more cautious outlook for 2019, though it may bring its own opportunities in reputation management."

Murray's corporate clients include the likes of Heineken, Digicel, Ardagh and Gas Networks Ireland. New business and projects in the year included developer Quintain, Bord Bia and Horse Sport Ireland.

Meanwhile, pre-tax profits at rival FleishmanHillard's Irish arm last year increased 20pc to €802,856. Revenues were up marginally from €11.2m to €11.34m, but costs fell.

The 12 directors at FleishmanHillard International Communications Ltd last year shared a pay-pot of €1.23m including pension contributions of €45,291.

Managing director Rhona Blake said profits growth in 2018 reflected gains from new clients won by the firm in the previous year combined with strong organic growth.

"Over 30pc of our business is international with a number of global clients managed or "hubbed" from our Dublin office. We have developed significant hub expertise and manage clients such as Novartis, Primark and Fitbit in this way," she said.

"2019 is shaping up to be a great year with a number of significant client wins including SuperValu and Novartis.

"We anticipate further growth again this year on both profits and revenues," she said.

The staff of 36 including two new hires is expected to hit 40 next year, she said.