PRCA establishes FD Group to support agencies in current economic climate

With the current economic crisis causing difficulties for a number of PR agencies around the country, the PRCA has established a Financial Directors' (FD) Forum to help members to best respond to the tightening credit markets and worsening market conditions. 

Jason Shaw, chief financial officer of MS&L and chairman of the group said “The role of the Finance Director will be of paramount importance during 2009. The aim of the forum will be to equip FDs with the essential skill set to offer strategic and commercial advice to improve profitability within PR agencies.

"PR agencies will be asked to provide greater value and transparency to clients, particularly through procurement negotiations. The FD forum will look to address these key issues to ensure best practice and how to balance cost against value priorities.

"The forum will also draw on industry experts to provide insights, particularly on how to navigate in today's challenging economic environment.”

The inaugural meeting of the group was held at the offices of accountants and business advisers BDO Stoy Hayward LLP.

High up the agenda was the issue of relationship management towards lenders.

Natasha Woolsey, PRCA Membership Manager, said: “In the current climate, working with our members to focus on the key drivers of their businesses is a top priority for us.

“The best agencies will be able to secure the funds they need, but they need to take great care over the preparation of their business plan and how it is presented.  2009 will bring unprecedented opportunities, such as growth through acquisition, for the strongest and best run businesses as well as challenges for others," continued Woolsey.

Amid much public debate about the banks' appetite for lending, one of the secrets to success will be proactive relationship management by agencies towards their lenders. 

Neil McDaid, Head of Debt Advisory, at BDO Stoy Hayward LLP, said: "There is a huge amount of existing bank debt that needs to be re-financed in 2009, whilst the number of lenders has fallen in 2008 and their appetite has dropped publicly and significantly over the past six months.  New debt will be very hard to secure and conditions will remain very tight throughout 2009, but by proactively managing your banking relationships you position yourself ahead of your competition."

"Understanding the different roles and responsibilities of your banking contacts is essential.  Relationship managers have a different focus from credit committees.  Credit committees are internal to the banks but are where the lending decisions are made.  It would also be wise for agency management to ensure they're familiar with the detailed terms of their current financing to ensure they're fully compliant and have headroom in their projections to avoid any breaches," concludes McDaid.

- ENDS -

For more information, please contact Dee Crooks at BDO Stoy Hayward on 020 7893 2761/07815 172 051 or email dee.crooks@bdo.co.uk

Notes to editors:

About BDO Stoy Hayward
BDO Stoy Hayward LLP operates across the UK with over 3,000 partners and staff. BDO Stoy Hayward LLP is a UK limited liability partnership and the UK Member Firm of BDO International. BDO International is a world-wide network of public accounting firms, called BDO Member Firms, serving international clients. Each BDO Member Firm is an independent legal entity in its own country. The Belfast Firm is operated by a separate Partnership.

BDO Stoy Hayward LLP and BDO Stoy Hayward - Belfast are both authorised and regulated by the Financial Services Authority to conduct investment business.

BDO Stoy Hayward is an award winning firm.  Recent achievements include:

  • Best Workplace UK - Financial Times 2008
  • 100 Best Companies to Work For - The Sunday Times 2008
  • Audit Team of the Year - Accountancy Age Awards 2008
  • Tax Team of the Year - Accountancy Age Awards 2008
  • Corporate Finance Deal of the Year - Accountancy Age Awards 2008
  • Employer of the Year - Accountancy Age Awards 2007
  • The Women of Achievement Award -  Women in the City 2008
  • Top 50 Where Women Want to Work - The Times 2007
  • Business Superbrand - Business Superbrands 2008

About the PRCA

  • The Public Relations Consultants Association (PRCA) is the trade association for the UK PR consultancy industry. 
  • The Association exists to raise standards in PR and to help members be better organisations. 
  • The Association grew by over 33% during 2008 
  • Founded in 1969 the PRCA promotes all aspects of public relations consultancy. 
  • PRCA members differentiate themselves from other PR consultancies by achieving the Consultancy Management Standard (CMS), a professional accreditation that has been adopted by PR agencies in more than 11 countries around the world. 
  • All PRCA member organisations are bound by a Professional Charter and Codes of Conduct.

As part of its commitment to excellence in PR, the PRCA carries out a number of functions:

  • PR training and qualification: the PRCA organises a range of bespoke, inhouse & online courses as well as general training and qualifications. Course subjects range from: how to write a press release: to how to manage your agency. 
  • Find A PR Agency: this free service helps clients find a reputable PR consultancy for their brief.
  • Industry surveys: the PRCA undertakes a number of surveys every year including the most comprehensive benchmark of industry performance. 
  • Networking and best practice groups: the PRCA organises a number of groups to help members stay ahead of industry trends and raise general industry issues. 
  • Promotes the value of PR and the need for standards: the PRCA provides a strong voice on a range of issues relating to PR. 
  • Lobbies government on key issues: the Association represents members' interests in areas with Government and other relevant organisations such as the FSA.

For more information please contact:
Richard Ellis, PRCA communications manager
T: 020 7233 6026
E: richard.ellis@prca.org.uk

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