Cello Reports 'Solid Overall Performance'

UK-based insight and marketing group Cello has reported 'solid overall performance' in 2012, with revenues of £135.1m, up 5.8%, and headline profit before tax flat at £7.0m (2011: £7.1m). The firm's Health division outperformed Consumer, but the latter enjoyed a good second half.

During the year, the group completed its restructure into two separate divisions - Cello Health and Cello Consumer - and says the benefits of this are already evident in new client activity.

In 2012, Cello Health produced headline operating profit growth of 6.7% on an increase in gross profit of 7.2%, while Cello Consumer saw headline operating profit decline to £3.0m (2011: £3.4m) on gross profit of £32.7m (2011: £32.6m), as a result of a 'temporary slowdown' of research activity by a range of large clients in the first half of the year.

As a result of this slowdown, Cello took actions to reduce costs in certain areas, some of which have been closed and are therefore accounted for as discontinued operations. The firm also recorded a restructuring charge of £1.3m and a subsequent impairment charge of £2.5m.

Cello says its focus on increasing the proportion of work won or serviced outside the UK has paid off, with international work now accounting for 46.1% of total group gross profit (2011: 40.6%). The group now has overseas offices in New York, Philadelphia, San Francisco, Los Angeles, Singapore and Hong Kong, and there are plans to open an office in Chicago during the current year.

CEO Mark Scott (pictured) comments: '2012 has seen the group continue to grow its pharmaceutical expertise in the UK and overseas markets. Cello Consumer, after a challenging first half, recovered strongly in the second half and this momentum is continuing in the early stages of the current year. We are confident that both these factors will combine to deliver a successful 2013 performance.'

Web site: www.cellogroup.co.uk .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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