Cello warns on profits after retail setbacks

Advertising and marketing group Cello expects profits for the full year to fall short of expectations after losing a retail research contract earlier this month and seeing one of its retail clients entering administration.The company expects to incur a full year exceptional charge of about £500,000. While pre-tax profits for the full year will be "slightly lower than management's previous expectations", Cello says that it traded in line with expectations in the six months to 30 June.Cello's list of clients includes big names such as the drug companies AstraZeneca and Pfizer and the brewer Carlsberg."Cello is fast developing into a global research and consulting business, with a distinctive focus on the pharmaceutical sector, along with other international, high margin client sectors," said chief executive Mark Scott. "Combined with a focused innovation drive, particularly behind social media based research, we are confident that this strategy will deliver strong shareholder value."