23rd Jul 2019 11:29
(Alliance News) - Healthcare public relations group Huntsworth PLC on Tuesday swung to an interim loss, mainly due to a sharp rise in finance costs.
Huntsworth posted a pretax loss of GBP1.1 million for the six months to June, after a GBP10.3 million pretax profit a year before. However, headline pretax profit rose 3% to GBP11.4 million, which excludes certain items.
Revenue for the period was GBP123.5 million, 21% higher than a year prior, and Huntsworth has boosted the interim dividend per share by 7% to 0.75p.
There was "strong" growth in the Medical unit, at 8.6% like-for-like, and 9.2% growth in Immersive on a like-for-like basis. Marketing met expectations, with flat like-for-like growth, while Communications beat expectations and returned to growth, at 0.9% like-for-like.
Chief Executive Paul Taaffe said: "The first half of the year has seen the group continue to focus on extending its capabilities to meet its client needs through investment in new staff, offices and two new agencies."
"With the acquisition of Creativ-Ceutical and Kyne, we have added world-class award-winning agencies which will help us to continue to grow our business."
Huntsworth in May paid EUR15.5 million for a 70% stake in research consultancy Creativ-Ceutical, and USD17.4 million for 85% of health communications business Kyne Communications.
Looking ahead, Huntsworth expects further strong performance from Medical and Marketing in the second half due to recent client wins, helped by first time contributions by the two acquired businesses. Communications will improve, the company continued, though Immersive revenue is set to be flat year-on-year.
"The group retains a strong balance sheet and as we head into the stronger cash-generating second half of the year, we anticipate a reduction in our gearing levels from the current 1.8 times earnings before interest, tax, depreciation, and amortisation towards our target of 1.5 times," Taaffe added.
"The board remains confident in the full year outcome and the longer-term prospects of the group."
Huntsworth shares were 4.3% higher on Tuesday morning at a price of 93.25 pence each.
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