MS&L Worldwide

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.