20th Mar 2014 12:49
LONDON (Alliance News) - Cello Group PLC Thursday reported an increase in profit and revenue for the full-year, reflecting a strong performance across the business.
The marketing consultancy group posted pretax profit of GBP5.5 million for 2013, up from GBP1.4 million, as revenue rose 18.2% to GBP159.7 million, from GBP135.1 million a year earlier.
Cello has two operating divisions, Cello Health and Cello Signal previously Cello Consumer which both performed strongly during the year.
Cello Health, which serves the pharmaceutical industry, saw gross profit rise to GBP35.6 million, from GBP31.3 million. The company won a number of clients during the year including technology firm Sony and NHS Blood Transfusions in the UK. Despite an ongoing senior headcount increase, operating margin increased slightly to 21.2% from 20.8%.
Cello Signal, which advises marketing clients, saw gross profit climb to GBP37.9 million from GBP32.7 million. It also won a number of new clients including Walt Disney and the British Red Cross. Operating margin rose to 10.2% from 9.1%.
Overall, the firm said the 2013 improvement has been underpinned by robust like-for-like gross profit growth of 11.4%.
"This growth has been achieved across the whole business and notably in Cello Signal, where growing digital gross profit and gross profit from technically related services was supplemented by the impact of a significant incremental project," it said.
The growth has also been assisted by the GBP2.1 million acquisition of Mash Health Ltd in January last year. Mash provides consultancy and communication services to a wide portfolio of pharmaceutical, nutraceutical and consumer healthcare clients.
Cello said it is pleased with the performance of the Mash business so far.
Financial net debt fell almost 60% to GBP3.6 million from GBP8.7 million, said the company, which increased its full-year dividend 12.5% to 2.25 pence from 2.00 pence.
The stock was trading at 86.00 pence, down 1.00 pence or 1.2%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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