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 May 2003
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)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the File Number assigned to the registrant in
connection with Rule 12g3-2(b): _________.
FORWARD LOOKING AND CAUTIONARY STATEMENTS
This report contains certain "forward looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Generally, the
words "believe," "may," "will," "estimate," "continue," "anticipate," "intend,"
"expect" and similar expressions identify forward looking statements. The
Registrant has based these forward looking statements largely on its current
expectations and projections about future events and financial trends affecting
its business. These forward looking statements include statements relating to
trends in the advertising and marketing services industry, particularly with
respect to anticipated advertising expenditures in the world's advertising
markets. 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.
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/ David Hearn
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Title: Director and Chief
Executive Officer
Date: May 1, 2003
Exhibit 1
CORDIANT COMMUNICATIONS GROUP PLC
("Cordiant")
CLIENT UPDATE
Cordiant was notified on Friday 25 April 2003 by one of its major clients,
Allied Domecq plc, of its intention to terminate its contract with Cordiant with
effect from October 2003.
In the current financial year Cordiant had budgeted for revenue from this global
contract of approximately (pound)18 million, some 3.4% of the Group's revenue in
2002. The direct impact of this client loss on revenue in 2003 will not be
material, although the Group will incur associated restructuring costs in the
current year. However, there will be a substantial impact on operating profit
from 2004 onwards.
The Board of Cordiant had expected to announce its audited preliminary results
on 30 April, for the year to 31 December 2002, in line with the headline figures
announced on 20 February 2003, following the expected agreement of new financing
terms with its lenders. In the light of recent developments, Cordiant is now
evaluating whether it can issue its preliminary results by 1 May 2003. Cordiant
recognises that, in accordance with the normal practice of the UK Listing
Authority, trading in its shares will be suspended in the event that it is
unable to issue its results by then.
Following Allied Domecq's decision, and particularly with the interests of the
Group's clients in mind, the Board of Cordiant is actively investigating
alternative strategic options for the Group, in addition to the disposal
programme previously announced, which is progressing well. Cordiant continues to
have the support of a co-ordinating committee of its banks and noteholders, and
is working constructively with its lenders to amend the financing terms.
28 April 2003
Enquiries:
Cordiant Tel: +44 207 262 4343
David Hearn
Andy Boland
College Hill Tel: +44 207 457 2020
Adrian Duffield