29th Apr 2014 11:43
LONDON (Alliance News) - Huntsworth PLC Tuesday posted a decline in pretax profit for 2013, hit by declining revenue and restructuring costs as it continued its investment programme.
Huntsworth maintained its total dividend at 3.50 pence for the year.
The public relations and healthcare communications company posted a pretax profit of GBP17.1 million, down from GBP18.9 million, as revenue declined to GBP172.4 million from GBP173.0 million, and it posted restructuring costs of GBP3.7 million.
Revenue was hampered by the concentration of its operations in the UK and Europe, Huntsworth said, where economic recovery was slow.
During the year Huntsworth signed an agreement with Asian public relations group BlueFocus Communications Group Co Ltd. BlueFocus took a 19.6% stake in Huntsworth for GBP36.5 million, and BlueFocus' Chief Executive Oscar Zhao was appointed to Huntsworth's board in October.
The company is continuing its investment programme, and invested GBP4.4 million in 2014 including hiring 22 members of senior staff.
As part of this programme Huntsworth is pushing a shift towards digital revenues. Digital revenues now represent 26% of Huntsworth's revenues, it said.
Huntsworth restructured its Asia-Pacific businesses in January, and put a new regional management team in place.
The company said it had seen revenues drop 2.5% in the first quarter of 2014 on a like-for-like basis. It cautioned that its margins in 2014 would continue to be diluted by its ongoing investment programme, but it expects to see benefits from this programme and is alliance with BlueFocus from 2015 onwards.
Huntsworth intends to appoint around 20 senior staff during the year, particularly in its Grayling business, following the merging of its businesses Grayling, Dutko, Grayling and Atomic into a single brand.
Shares in Huntsworth were trading down 5.5% at 65.90 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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