(Alliance News) - Cello Health PLC said Thursday said it had an "excellent year" in 2019 despite the "slower than anticipated" performance of the Cello Signal division.
In a trading update for the year ended December 31, the healthcare-focused advisory group said it expects full-year results to be in line with consensus market expectations.
The company said strong like-for-like net revenue growth, which was ahead of plan, and expanding operating profit margin lead to a very good headline operating profit performance.
Cello said the communications business in the US performed particularly well. The acquisition of Innovative Science Solutions in August extended company's offering into critical regulatory approval processes and has increased Cello's focus on the US market.
The Cello Signal unit, however, had a "slower than anticipated" performance, particularly in the final quarter, the company said, "reflecting in part slower decision-making by some UK based clients impacted by the UK election and uncertainty surrounding Brexit."
As a result of continuing slower performance, the company decided to reorganize the unit.
In October, the company sold the Pulsar business to Access Intelligence PLC for GBP4.5 million.
Also, Cello Health is separating out its Edinburgh-based digital and marketing communications capability from the Signal Unit.
"This business now forms part of the Cello Health operating structure, under the name Cello Connect, and will support the digital and marketing communications needs of our healthcare clients as well as continuing to grow its existing client base," the company explained.
"It is expected that the reduced Signal business will constitute around 20% of the total net revenue and less than 10% of operating profit for the group for 2019," the company noted.
Cello Health said it experienced strong cash inflow in the second half of the year, "in line with normal seasonal patterns of cash flow".
Cello Health will announce its annual results on March 18.
Cello Health shares were down 7.4% in London at 136.55 pence each on Thursday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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