Cello Posts 'Solid Recovery' in First Quarter

UK research and consulting group Cello has made what it describes as a 'solid recovery' in its profitability for the first quarter of the year.

Cello's Research and Consulting arm includes Leapfrog, 2CV, MRUK, RS Consulting, Face, Insight Research Group and MSI.

At its AGM this afternoon, the group's Chairman Allan Rich said that client activity in research has settled into a more 'normal pattern' after the disruption seen last year, when it posted slight declines in headline operating profit (£5.6m, from £6.5m in 2008) and operating income (£36.3m, from £37.9m in 2008).

Rich also noted strong performance in health-related activity from international research projects. During 2009, healthcare research showed 'particular resilience', representing c.38% of operating income for the division, up from 36% in 2008.

Last summer, Cello cut costs by around 7% to offset the effects of the economic downturn.

'Across the group we are benefiting from the overhead reduction programme implemented during 2009, particularly where we consolidated operations into larger professional hubs,' stated Rich. 'The group has therefore performed strongly during the first quarter of 2010, and while there remains economic uncertainty, we are growing in confidence about the group's performance.'

Web site: www.cellogroup.co.uk .