Cordiant plunges as it gives profit warning

Shares in Britain's Cordiant Communications fell over 45 per cent today after the advertising firm became the latest to warn …

Shares in Britain's Cordiant Communications fell over 45 per cent today after the advertising firm became the latest to warn on profits amid rising economic uncertainty.

Shares in the firm, which owns the Bates Worldwide advertising network, were down 39 per cent at 59 pence as of 9.11 a.m. Irish time, after falling as low as 50p.

The group said it expected revenues for the current financial year to be around 5 per cent lower than last year, resulting in a significant cut of profits.

"Trading conditions in our industry are currently the most difficult experienced in recent years," the company said in a statement.

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Cordiant had already warned in August that it expected revenues to be flat on last year. It has cut over 400 jobs this year in an effort to cut costs.

Media groups have seen sharp falls in advertising revenues this year due to the slowing global economy, and the recent attacks in the United States have intensified fears companies will cut advertising budgets as the economic climate worsens.