Growing Cello Moves to Focus Purely on Health

UK-based healthcare and consumer insight / marketing business Cello Group has reported a 2.4% rise in revenue to £169.3m for the calendar year 2017 (2016: £165.3m); while gross profit was up 10.6% to £102.5m. The business has also been renamed Cello Health Group plc.

During the period, group headline profit before tax was up 11.9% to £11.4m (2016: £10.2m), and reported profit before tax was £5.8m, compared with a loss of £1.7m the previous year.

Cello Health - consisting of Communications, Insight and Consulting units - reported 9.2% constant currency like-for-like gross profit growth. In the US, the firm expanded with the acquisition of biotech asset development strategy consultancy Defined Health and biopharma analysis and insights business Advantage Healthcare, and the US now contributes 45.1% of Cello Health's profit (2016: 35.1%). Last month, the division introduced a business called Cello Health Logic, which uses proprietary Pulsar technology to offer social media analytics to pharmaceutical and healthcare clients.

Cello Signal - which includes agencies 2CV and Face - delivered a 'reduced trading result', with operating margins maintained at 9.5% (2016: 10.3%) despite a 6.8% like-for-like constant currency decline in gross profit. The firm's core digital operations have now been consolidated into three operational office hubs in Cheltenham, London and Edinburgh, to enable the sharing of technology and technical expertise. As part of the repositioning, Signal's digital capability, audience insights and consumer knowledge will now be applied in the healthcare market.

CEO Mark Scott (pictured) says the name change better reflects the 'strategic focus' of the business. 'The group continues to make rapid strides in evolving into a global healthcare services business, with a particular focus on the US market. Signal is successfully migrating into a position to support Cello Health and healthcare clients with its digital and consumer marketing services. The current year has started well, and the group is positioned for further expansion in healthcare in 2018 and beyond', he added.

Web site: www.cellogroup.com .