LONDON (Alliance News) - Marketing company Cello Group PLC Tuesday said it continues to be confident of a successful 2015, as it has seen strong headline revenue growth, particularly in its Cello Health division.
However, Cello warned that the issue in relation to one of its subsidiaries not charging VAT on some items to its charity clients has not been fully resolved yet with UK tax authorities. Cello made a provision of GBP2.1 million in 2014 in relation to the issue, with a contingent liability of GBP800,000.
Cello said major industry bodies representing charities and their agency suppliers have mounted a strong public objection to a lack of clarification on HMRC policy in this area, and its implications for charities.
In a statement ahead of the company's annual general meeting Tuesday, Cello said its Cello Health business has experience a good start to the year, with acquisitions performing well, and a large contract win at the time of its 2014 results raising its revenue visibility levels for the full year.
The company expects its Cello Signal business to see a slower first half than in 2014 due to investment in staff and the timing of revenues in its US business, but it is expected to show good progress for the full year.
Shares in Cello Group are trading down 2.9% at 87.90 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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