Market researcher Taylor Nelson cautious for rest of year

One of the world’s leading market research companies today predicted a bleak outlook for the rest of the year after admitting it had suffered from a poor performance in the US.

Taylor Nelson Sofres, which provides customer data and research for blue-chip clients, said pre-tax profits were down 11% to €44.5m in the six months to June 30.

The company, which has substantial operations in the UK, hoped the US market for customised research would pick up, but now admits a recovery is unlikely until 2007 despite a shake-up of its stateside business.

Revenues were up 4.5% to €712m thanks to a steady performance at its European arm, as well as a good showing from its operations in Asia Pacific and Latin America.

Chief executive David Lowden said: “Action has been taken to improve our performance in US custom which has had a significant impact on the group revenue and margin outlook for the full year.

“Although there have been some specific revenue losses, we believe the US custom business has not had the appropriate service offering and cost structure to meet clients’ needs in today’s market.”