FORM 6 - K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the Month of September 2001
CORDIANT COMMUNICATIONS GROUP PLC
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(Translation of registrant's name into English)
121-141 Westbourne Terrace
London W2 6JR
England
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(Address of principal executive offices)
FORWARD LOOKING AND CAUTIONARY STATEMENTS
This report contains certain "forward looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Actual
advertising expenditures may differ materially from the estimates contained
therein depending on, among other things, regional, national and international
political and economic conditions, technological changes, the availability of
media and regulatory regimes in the world's advertising markets. Additionally,
this report contains a number of "forward looking statements" relating to the
Registrant's performance. The Registrant's actual results could differ
materially from those anticipated, depending on, among other things, gains to or
losses from its client base, the amount of revenue derived from clients, the
Registrant's exposure to changes in the exchange rates of major currencies
against the pound sterling (because a substantial portion of its revenues are
derived and costs incurred outside of the United Kingdom), the general level of
advertising expenditures in the Registrant's markets referred to above and the
overall level of economic activity in the Registrant's major markets as
discussed above. The Registrant's ability to reduce its fixed cost base in the
short term is limited and therefore its trading performance can be significantly
affected by variations in the level of its revenues.
INCORPORATION BY REFERENCE
This report shall be deemed to be incorporated by reference into the
prospectus forming a part of the Registrant's Registration Statement on Form F-3
(No. 333-46570) and to be a part of such prospectus from the date on which this
report is furnished, to the extent not superseded by documents or reports
subsequently filed or furnished.
28th September 2001
Cordiant Communications Group plc
("Cordiant")
Trading Update and Zenith Completion
In our Interim statement released on 13 August we stated that the slowing
economic environment had held back revenue growth, and that we saw little
prospect for growth in our markets in the short term, with the Group's
underlying revenues expected to be flat at best in the full year 2001.
Trading conditions in our industry are currently the most difficult experienced
in recent years. The downturn in marketing expenditure in North America has
spread to Europe and Asia Pacific, impacting revenues in these regions. In
addition, the tragic events in North America have led to both a further
deterioration in full year visibility, and the cancellation of planned projects
and campaigns. Consequently, it is more difficult to predict the outcome for the
year. However current indications are that underlying revenues for the year as a
whole will show a decline of approximately 5%, resulting in a significant
reduction in profitability.
As already announced, we have entered into a wide ranging cost reduction
programme and in particular, a headcount reduction initiative which will result
in a L10 million charge in the current year. Our cost saving programme is
on track, although in the light of current circumstances we are in the process
of re-evaluating our cost base targets.
Whilst the current climate is exceptionally difficult, we have a broad spread of
businesses that remain well positioned to benefit once more normal market
conditions return.
Following the announcement on 19 July, we are pleased to state that Publicis
Groupe SA ("Publicis") and Cordiant have completed the legal transfer of units
of Optimedia and Zenith Media into a new UK based holding company to create the
world's third largest media communications group. The new UK holding company is
owned 75% by Publicis and 25% by Cordiant.
Enquiries:
Cordiant
Michael Bungey, Chief Executive Officer Today Tel: +44 20 7457 2020
Art D'Angelo, Finance Director Tel: +1 212 297 7000
Andy Boland, Deputy Finance Director Tel: +44 20 7262 4343
College Hill Tel: +44 20 7457 2020
Alex Sandberg
Dick Millard
This press release contains certain "forward-looking statements" and information
that are based on the current expectations, estimates and projections of
Cordiant's management and information currently available to Cordiant. These
statements are not guarantees of future performance and involve certain risks
and uncertainties that are difficult to predict. In addition, some
forward-looking statements are based upon assumptions as to future events that
may not prove to be accurate. These statements typically contain words such as
"intends", "expects", "anticipates", "estimates" and words of similar import
and, in this release, include statements relating to Cordiant's revenues,
profitability and cost reduction programme. Cordiant's actual performance could
differ materially from that anticipated depending on, among other things, gains
to or losses from its client base, the amount of revenue derived from clients,
Cordiant's exposure to changes in the exchange rates of major currencies against
the pound sterling, the general level of advertising expenditures in Cordiant's
markets, the overall level of economic activity in Cordiant's major markets,
employee costs, future interest rates, changes in tax rates and other factors
discussed from time to time in Cordiant's public filings with the U.S.
Securities and Exchange Commission, including Cordiant's Annual Report on Form
20-F. Many of the factors named above are macroeconomic in nature and are,
therefore, beyond the control of Cordiant's management. Should one or more of
these risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual performance may vary materially from those described herein as
anticipated, believed, estimated, expected, intended, planned or projected.
Cordiant does not intend, and does not assume any obligation, to update the
forward-looking statements contained in this document.
The expectation for revenue performance in 2001 has been disclosed on an
underlying basis, meaning at constant exchange rates and after taking the 2000
comparative revenues from acquisitions into account.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CORDIANT COMMUNICATIONS GROUP PLC
(Registrant)
By: /s/ Michael Bungey
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Title: Director and Chief
Executive Officer
Date: September 28, 2001