17th Mar 2016 11:13
LONDON (Alliance News) - Cello Group PLC on Thursday reported growth in profit in 2015 as lower cost of sales offset a decline in revenue and rise in administration expenses, and said it has made a good start to 2016.
The pharmaceutical and consumer marketing group said its pretax profit in 2015 increased to GBP4.8 million from GBP3.8 million in 2014, even though revenue fell to GBP157.3 million from GBP169.9 million.
Operating margin reduced slightly to 12.1% from 12.3%, as a decline in pharmaceutical arm Cello Health's margin to 19.7% from 21.2% offset a rise in marketing arm Cello Signal's margin to 9.5% from 8.7%.
The decline in Cello Health's margin was due to some projects being deferred or cancelled during the year, hitting overall revenue, but profitability improved as the cost of sales reduced more than revenue, while also offsetting a rise in administration expenses.
Cello Group will pay a total dividend of 2.86 pence, up 10% on the 2.60p it paid in 2014.
Cello Group said it has made a good start to 2016, with an encouraging bookings momentum continuing from the fourth quarter of 2015.
"The group began 2016 with a robust level of secured forward bookings. It has also seen encouraging levels of new business wins so far this year. At this relatively early stage of the year, the board is confident that expectations for 2016 will be met," Non-Executive Chairman Allan Rich said in a statement.
Shares in Cello Group were trading up 4.9% at 96.00 pence on Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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