13th Nov 2013 12:11
LONDON (Alliance News) - Huntsworth PLC Wednesday said that it remains on track to meet full year expectations, despite continued "recessionary" conditions for public relations firms in the UK and Europe.
The public relations and healthcare-communications group reported a 0.9% decline in group revenue for the third quarter, largely due to weak demand in the UK and Europe, which accounts for around 60% of its overall revenues.
Huntsworth said it continues to invest in growing public relation revenues in markets such as the US, Asia Pacific and the Middle East, where it sees growth opportunities to offset its heavy dependance on Europe.
Huntsworth said it is seeing some improvement in areas of the public relations market, including its financial and specialist divisions.
It said that its financial public relations division Citigate, which accounts for around 13% of group revenues, increased revenue by 7.7%. Also faring well was Huntsworth Health - representing 33% of revenue - where revenue rose 3.3% in the quarter.
Huntsworth said that the rate of decline in Grayling, which represents 45% of overall revenue, slowed to 5.4%, while revenue at Red - with 8% of group revenue - saw a decline of 3.9%
The group said that its net debt is now below GBP40 million.
Huntsworth recently struck a strategic alliance with China-based PR and communications company Blue Focus, having received a GBP36.5 million equity investment from the company. It said that the alliance has started well, and it already has a new major shared annual contract and several smaller project initiatives.
The group also said that it is now working closely with UK Trade and Investment at the British Embassy, in hope of generating more business both inside and outside China during 2014.
Shares in Huntsworth were down 0.4% Wednesday, at 65.75 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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