21st Jul 2015 07:55
LONDON (Alliance News) - Cello Group PLC Tuesday expressed confidence in meeting market expectations for 2015, as it said it had experience good trading in the first half.
According to broker forecasts provided by Morningstar, N+1 Singer expects Cello to post a pretax profit of GBP10.5 million for 2015, whilst Peel Hunt expects GBP9.3 million.
The healthcare and consumer marketing group noted that, as it had previously indicated in a statement at its annual general meeting in May, its operating profits for the first half will be a "little lower" than the previous year due to a short-term profit variance at its Signal business.
During the first half, the company's Cello Health business saw strong headline growth, it said, and whilst margins will be marginally lower than the previous year due to investments, they will still be around the 20% level.
In its Cello Signal business, the company saw slight headline revenue growth in the first half, but produced lower profit margins as it added headcount in its US market research business.
"The group is making pleasing progress in its strategy of evolving into a global healthcare player. The transition to a more digital proposition for Cello Health has begun to create close and productive bonds between Cello Health and Signal which we will build on quickly to create further value for shareholders," said Chief Executive Officer Mark Scott in a statement.
Shares in Cello were down 3.7% at 97.80 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
CLL.L