Deal puts GGT in the red
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.GGT Group, the advertising agency, yesterday revealed that redundancies and advisory fees arising from December's pounds 96m acquisition of BDDP, the French agency network, cost pounds 8.1m, writes Cathy Newman.
The company, which more than doubled its size with the purchase of BDDP, said the charge resulted in a net loss of pounds 100,000 in the year to April, compared to 1995-96's profit of pounds 5.6m.
A spokesman for GGT would not comment on the scale of the redundancies, but said that a a "few expensive people" had lost their jobs after the merger. Among those to have resigned since the deal are Jan Hall, GGT's European chief executive. Ms Hall had been with GGT for three years and left last month.
GGT said yesterday that an operational review of BDDP was under way.
Before the exceptional costs of the acquisition, profit before tax rose 32 per cent to pounds 7.5m. The dividend was increased by 7 per cent to 6.2p.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments