CLL.L Regulatory News (CLL)

12 Jul 2007 07:00

Cello Group plc12 July 2007 12 July 2007 Cello Group plc Pre Close Trading Statement - six months to 30 June 2007 Cello Group plc ("Cello" AIM: CLL), the research and consulting group, todayprovides the following pre-close trading update for the six months to 30 June2007. Cello has continued to make good progress and the Board is confident about theGroup's outcome for the full year. The research and consulting business continues to perform well and on a fullyear basis is expected to deliver healthy growth. Our response business will bemore heavily second half weighted than in the past, but given good revenuevisibility which has strengthened since the AGM statement on 22 May, we areconfident about the full year outcome for this business. Our research and consulting business which now accounts for around 75% of theGroup on an operating profit basis has benefited from the investments made innew staff and product offering during the course of 2006 and the first half of2007. We have seen significant revenue growth from existing clients as well as anumber of large new client wins, particularly internationally. Internationalwork now accounts for 45% of the revenues of this division. The size ofcontracts we are pitching for and also winning has increased markedly, helpingdrive good like for like revenue growth. During the first six months of 2007, we further strengthened our healthcareresearch and consulting capability with the acquisition of The MSI Consultancyin March. In June, mruk research also joined the Group, strengthening ourresearch offer to the public sector. We have also made significant strides in building our online research business.In February we acquired a controlling interest in Digital People and Rosenblatt,and more recently we purchased a significant minority share in nqual, a dynamiconline qualitative research company. Our response business which comprises 25% of the Group continues to build astrong position in the sector, with healthy like for like revenue growth basedon good levels of revenue visibility. The seasonal split between the first andsecond half has continued to widen as the growth of the business has seen aparticular focus on clients with a seasonal spending pattern in both charitiesand financial services. This seasonality will affect like for like growth at aprofit level for the six months to 30 June but not on a full year basis where weare confident of good profit growth. We continue to increase the online component of our response offering, boththrough our separate branded offerings, Blonde and Oomph, as well as theincreasing component of our core offer that is now digital. On 6 July we announced the acquisition of cchm:ping, a specialist financialservices marketing agency and the establishment of a consulting offer in thissector vertical. In line with our prudent financing policy, Cello has maintained a strong balancesheet with low gearing. Cello expects to announce its interim results for the six months to 30 June 2007on Tuesday 11 September 2007. These results will be prepared under IFRS, and atransition statement will be issued prior to that date. Enquiries: Cello GroupKevin Steeds, Executive Chairman 020 7812 8460 College HillAdrian Duffield/Ben Way 020 7457 2020 Notes to Editors (www.cellogroup.co.uk) Cello is a market research and consulting group that listed on AIM in November2004. The Group's strategy is to create value for shareholders by building aportfolio of research and consulting businesses capable of advising blue chipclients globally. Cello has annualised turnover in excess of £100million, gross profits of over£50 million and employs approx 650 professional staff. This information is provided by RNS The company news service from the London Stock Exchange