LONDON (Alliance News) - Healthcare-focused strategic marketing group Cello Group PLC on Thursday said its trading performance in 2016 was "encouraging", and said it expects headline profits in line with consensus market expectations.
Cello said it saw good like-for-like gross profit in its Cello Health unit, noting the strong profile of the division in the key US market. Cello Group said US gross profit further increased as a proportion of Cello Health's total sales, driven by the addition of senior professional resource in strategic locations.
Cello said the Cello Health unit has reduced its exposure to the consumer market, in light of the tougher trading period experienced by Cello Health Consumer which had a dampening affect on the division's margin during 2016. This, Cello said, was likely to give rise to a non-cash impairment charge of around GBP5.0 million.
Cello Group said in its Cello Signal division gross profit momentum has been strong and operating margins more robust, after it consolidated all Signal's activities behind the one brand. The size of the units client contracts secured in 2016 has increased, and Signal's franchise in the technology sector has evolved strongly during the year.
Cello Group said it was beginning 2017 with good momentum from existing and new clients secured in 2016, and is confident current consensus market expectations will be met.
Cello Group will post its 2016 results on March 22.
Shares in the company were untraded on Thursday, having last traded at 99.85 pence.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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