17th Jan 2019 13:21
LONDON (Alliance News) - Cello Health PLC on Thursday said it is expecting results in line with market expectations despite slower client activity in the Cello Signal business.
The healthcare-focused marketing company said it "traded well in 2018", with strong like-for-like growth in its Cello Health businesses.
Cello's three core capabilities: Cello Health Insight, Cello Health Consulting, and Cello Health Communications all delivered good headline operating profit performances in the year.
Cello Signal, however, "had a slower year", which was attributed to "decision making by some UK based clients", with slower client activity levels in all of its operations apart from those in Edinburgh.
Cello Signal is the firm's digital and creative arm, which provides a full service of communication campaigns, content, and film to brands.
"There will be a continued focus in 2019 towards developing health-orientated opportunities for the digital and creative capacity of Signal," Cello said.
There has been continued investment by Cello in new offices and extensions to the firm's existing business. Costs from these activities are to be separately disclosed as start-up loss for a maximum of two year.
In 2018, start-up loss was attributable to the company's investment in the US in its social media analytics platform, Pulsar. Loss were also attributed to growing Cello Signal, and to a new Cello Health office in Boston.
This loss totalled GBP1.2 million. All ongoing profit and loss from Pulsar US will be included in Cello's 2019 headline results.
Cello said its other non-headline cash items were not significant in 2018. It noted that there will be a GBP300,000 restructuring charge in the first half of 2019 on Cello Signal as the firm reduces its capacity in Cheltenham "to maintain a competitive margin".
"The group has experienced strong cash inflows in the second half of the year, in line with normal seasonal patterns of cash flow. Conversion of operating profit into cash flow was strong. Accordingly, the board is pleased to confirm that the group was in a strong net cash position at the end of the year," Cello said.
The company did not disclose an exact or approximate figure for its year end cash position.
"Overall, the group has had a strong year and is well placed to continue to execute its growth strategy in 2019 and beyond," Cello said.
Shares in Cello were down 1.4% at 109.03 pence on Thursday.
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