Tempus seeks to reassure shareholders

Media buying agency Tempus today moved to reassure shareholders it was coping with ‘‘one of the most difficult years’’ ever seen in the industry.

The group, subject of a takeover bid from rival WPP, saw its half-year profits fall as customers cut advertising spend in light of the economic conditions.

Several advertising campaigns were cancelled with market conditions toughest in the US and Asia, Tempus said.

Pre-tax profits in the six months to June 30 fell 3% to £10.2m before exceptional and goodwill costs.

But chief executive Chris Ingram said the group’s European business had fared well, particularly in the UK.

Revenues across the group rose 24% to £83.9m,, bolstered by improved margins in its core media communications arm.

And Mr Ingram added he was confident clients would increase spend to keep ahead of their competition in the run up to Christmas.

Moves to cut back costs - 130 staff left the company in the first half - had also led to £10m-worth of savings, he added.

‘‘Whilst the current trading environment is still difficult, we are confident that the investments we have made in both our network and attracting and retaining high quality people will further enhance our competitiveness,’’ Mr Ingram said.

The group’s shares edged up 2½p in early trading to 445p.

WPP bid £437m for Tempus earlier this month, trumping a rival offer from French firm Havas which yesterday confirmed it had pulled out of the running.

Tempus is backing the bid and Mr Ingram said it would turn a ‘‘nearly global business into a major global business overnight’’.

WPP needs to secure acceptances from investors holding 90% of Tempus’ issued share capital by October 1.

It has so far secured around 25%, after buying a 3% on the stock market last week. Tempus’ directors own a further 20%.

Mr Ingram said WPP’s buying on the open market showed it would not back out of the deal following the tragic events in the US a fortnight ago.

He added: ‘‘The management of all our companies are committed to working with WPP to successfully integrate our businesses.’’