BUYBuy according to Panmure Gordon13 Jan 2011 22:21
Nearly 100% upside also:
http://tradertrouble.co.uk/broker-recommendations/broker-recommendations-11-january-2010.html
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12-12-09 Investors Chronicle - Buy Reccommendation... ERB2008 2
Huntsworth armed for the upturn
Created: 11 December 2009 Written by: Malar Velaigam
BULL POINTS:
■ Acquisition-driven growth
■ Resilient client base
■ High level of committed revenues
■ Rationalisation to boost organic growth
BEAR POINTS:
■ Exceptional costs in 2009
■ Some clients in vulnerable sectors
Advertising
Last week, public relations (PR) specialists Huntsworth announced yet another acquisition as the group - which is led by the founder of Shandwick PR, Peter Gummer (now Lord Chadlington) - continues its push to become a global PR player.
The £20m deal was with Washington-based Dutko Worldwide, which has 10 offices in the US and claims to be the largest independent public policy management firm - better known as a lobbyist - in the US. The purchase significantly bolsters Huntsworth's lobbyist network, which activity currently accounts for about 7 per cent of Huntsworth's revenues. Moreover, Malcolm Morgan, an analyst at stockbroker KBC Peel Hunt, expects it will add to earnings by next year. The deal will also add to Huntsworth's growing US presence, which accounted for 26 per cent of revenues in its last financial year.
This is also Huntsworth's third acquisition this year. The group purchased Middle East-based PR outfit Momentum International in February; UK and US PR company Tonic Life Communications in July and Swedish PR business Sund Kommunikation i Malmo in August. Huntsworth also made an approach for Aim-quoted technology PR group Next Fifteen in May, although this was rejected.
So far, integrating acquisitions has not appeared to be a problem, and Huntsworth has now made more than 20 since 2003. Indeed, its bosses are keen to buy in more growth. However, this does not mean they have given up on organic growth. The hope is that this will be achieved via a rationalisation programme, which has seen Huntsworth consolidate its 26 brands into just four. These four divisions will be Huntsworth Healthcare, Citigate, Grayling and Red. Grayling, will house a number of brands, including Trimedia and Mmd, and will account for 44 per cent of group revenues. The streamlining, which was announced less than a year ago, has been completed ahead of schedule and management is confident it will help boost organic growth from 2011 onwards. This will, however, mean a one-off exceptional charge.