LONDON (Alliance News) - Marketing company Cello Group PLC Wednesday said its 2013 revenues and headline pretax profit are expected to beat market expectations, and a good new business pipeline it achieved in the fourth quarter has set it up for a solid start to 2014.
In a trading update, the company said revenues will grow by double-digits, and it has maintained a 20% operating margin. It also cut its net debt to below GBP4.0 million after stronger-than-expected cash conversion.
Cello said most of its revenues came from outside the UK, particularly the US. It said most of the growth investments it made in 2012 had proved successful in 2013, notably in consumer health. It said the acquisition of Mash was particularly successful.
"The launch of the Cello Health brand as a client facing brand will replace a number of the original operating brands. This transition will be substantially complete by early in the second quarter of 2014, helping the management team achieve its goal of establishing Cello Health as one of the world's leading advisers to the healthcare sector," it said in a statement.
It invested a slightly lower amount of GBP0.4 million in start-ups in 2013.
Cello will release its full results for 2013 on March 20.
Its shares were up 8.9% at 86 pence early Wednesday, one of the biggest gains on AIM.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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