3rd Jul 2006 07:01
Cello Group plc03 July 2006 3 July 2006 Cello Group plc Pre Close Trading Statement - six months to 30 June 2006 Cello Group plc ("Cello") (AIM: CLL), the research and data led marketingservices group, today provides the following pre-close trading update ahead ofits interim results for the six months to 30 June 2006. As indicated in thetrading statement made at the Company's Annual General Meeting in May, the Boardis pleased with trading in the first half and accordingly expects to announceinterims slightly ahead of market expectations. Cello operates in three sub-sectors of the marketing services industry; marketresearch and planning, brand strategy and consultancy, and direct marketing,digital and database management. The first half has seen an excellent performance from our research platformwhich has benefited from the investments made in staff and product offering inthe latter part of 2005. We have seen significant revenue growth from existingclients as well as a number of new client wins. Our international growth hasbeen maintained with the opening of an office in Basel. Further start ups in keyinternational locations are being appraised. In overall terms our brand strategy and consulting businesses have traded at asatisfactory level in the first half. Based on current revenue visibility andthe pipeline of potential new business, we are confident that the platform willdeliver another good performance in the second half. Our response platform has performed well in the first half showing well aboveindustry average organic growth in both revenues and profit. One of our directmarketing companies, Target Direct, which specialises in the charity sector,traditionally produces a high percentage of its profits in the final quarter ofthe year. Based on current client commitments, we would expect that trend tocontinue. We have recently strengthened our brand consulting platform with the acquisitionof Farm Communications and have today announced the exercise of our option totake a controlling interest in Oomph, a digital and on-line marketingconsultancy, formed last year. In line with our prudent financing policy, Cello has maintained a strong balancesheet with no net debt and has cash available to invest. We are therefore wellpositioned to progress with our development plans which will include continuedinvestment to accelerate our organic growth and a small number of strategicacquisitions which would enhance shareholder value/earnings. As highlighted at the time of our preliminary results in March, we intend tocommence dividend payments in respect of the current financial year. The outlook for 2006 remains positive with all three platforms showing goodrevenue growth and forward visibility. This, together with increasingcross-group opportunities which are emerging, gives us full confidence for thefuture. Cello expects to announce its interim results for the six months to 30 June 2006on Tuesday 5 September 2006. Enquiries Cello GroupKevin Steeds, Chairman 020 7812 8460 College HillAdrian Duffield/Ben Way 020 7457 2020 Notes to Editors (www.cellogroup.co.uk) Cello Group plc is a research and data led marketing services group that listedon AIM in November 2004. The Group's strategy is to create value for shareholders by building a portfolioof companies around three specialist platforms, each operating within adifferent niche of the marketing services sector: market research and planning,brand strategy and consultancy, and direct marketing, digital and databasemanagement. Cello has annualised turnover of approx. £65 million, annualised gross profit ofsome £35 million and employs approx, 500 people. Each of Cello's three platforms has significant organic and acquisitive growthpotential; blue chip client relationships with a history of client loyalty;experienced, high quality management teams; and a track record of profitability. Cello Planning and Research * Insight Research Group - London, New York and Basel Insight is a specialist healthcare market research business that offers a broadrange of quantitative and qualitative research based solutions. Its clientsinclude GlaxoSmithKline, Novartis, AstraZeneca, Shire Pharmaceuticals,NovoNordisk, Boehringer Ingleheim, Lundbeck, Pfizer, Roche and Merck, Sharp andDohme. Insight recently acquired FML, a leading field force company. * Leapfrog Research and Planning - Windsor Leapfrog is a leading consumer market research and planning consultancy offeringqualitative and quantitative research in the UK and internationally. It actsfor a number of blue chip clients including Tesco, GSK, BBC, Scottish Courage,Toyota, AA, RHM and Wyeth. * RS Consulting - London RS Consulting is a quantitative market research and business consultancy. Basedin London, the company employs approx 80 people across its three subsidiaries.Major clients include hp, Xerox, Sony, FedEx, Department of Work & Pensions,Cisco Systems, AXA, Yell, RBS, AON and BUPA. Cello Brand Consulting * Leith - Edinburgh and London Leith is the largest and most successful branding agency in Scotland. Theagency has been voted Scottish Agency of the Year for the last five years. Leith opened a London office in 2000 which has recently been integrated withFarm. Leith's major clients include Irn Bru, Scottish Executive, Standard LifeBank, Standard Life, Smile, ICI, FT and Goodfellas Pizza. * The Value Engineers - Beaconsfield TVE is a leading strategic brand consultancy focused on four core disciplines;branding, strategy, insight and innovation. Clients include Unilever,Carlsberg, Diageo, Sony Ericsson, ICI, Visa, BP, T-Mobile and Britvic. * TMI - Redditch Formed in 1978 TMI UK employs some 60 staff and is a leading provider oforganisational development and consultancy solutions to a range of blue chipclients including Toyota, hp, Metronet, Marks and Spencer, the Foreign andCommonwealth Office, National Express Group and Serco Solutions. Cello Response * Target Group - Cheltenham and Cirencester Target is the leading direct and database marketing consultancy specialising inthe "not-for-profit" and charity sector. The agency works for five of the top20 charities in the UK. Target is expanding into the "grey sector" of productsand services for older people for clients such as National Trust, Saga andWhich? Limited. Target has a leading database subsidiary, Talking Numbers and asuccessful print management operation, Target Direct Print. * Navigator Responsive Advertising - Edinburgh Navigator Responsive Advertising, Scotland's leading direct marketing agency,provides responsive communication solutions for a wide range of clientsincluding HBOS Group, De Vere Resort Ownership, ScottishPower, Scottish Widows,Abbey and Remy Martin. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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