(Alliance News) - Huntsworth PLC on Tuesday said it expects further growth in 2020 after reporting positive performance in the first 11 months of 2019.
The healthcare and communications company said it expects year-on-year revenue growth of 3% on the like-for-like basis in 2019, with a "small impact" on margin as a result of investments in property and talent.
In addition, Huntsworth said it expects to report headline pretax profit within current market expectations for 2019, which stand between GBP38.5 million and GBP41.0 million. In 2018, the company generated headline pretax profit of GBP30.9 million, meaning profit will be up at least 25%.
The London-headquartered company said its Marketing division saw an acceleration of growth over the second half of 2019. However, client-led project deferrals and product closures limited the pace of growth to just 3%.
There was further "good" growth in the Medical division, Huntsworth noted, leading to 8% like-for-like growth for 2019.
The Immersive division, meanwhile, performed well against very strong comparatives and has secured a number of new mandates, although the cost of securing these mandates hurt profit, Huntsworth noted.
The Communications division saw an acceleration of growth in the second half and will achieve full-year revenue growth of 2% for the first time in several years, the company highlighted.
"The group remains focused on delivering superior growth led by its healthcare agencies and recent acquisitions continue to complement this," the company said in its statement Tuesday. "Despite some currency headwinds as a result of the strengthening in sterling, management is confident about the group's future trading and expects continued good growth across all of its businesses in 2020."
Huntsworth shares were trading 2.7% lower in London on Tuesday morning at 80.40 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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