18 Nov 2011 07:00
18 November 2011
Huntsworth plc
("Huntsworth" or "the Group")
Interim Management Statement
Highlights
·; 7% like-for-like revenue growth in third quarter
·; Seven-figure wins for 2012 for Huntsworth Health, Grayling and Red
·; Macro-economic uncertainty leads to client cancellations of £4m of year-end projects
Overview
Huntsworth plc, the international public relations and healthcare communications group, today publishes its Interim Management Statement for the period since 30 June 2011.
Like-for-like revenues grew by 7% in the third quarter year on year. Citigate reported 15.5% growth, Grayling 5.2%, Huntsworth Health 3.7% and Red 15.6%.
Grayling, Huntsworth Health and Red recorded significant international and multi-office business wins in the third quarter. These seven-figure wins will be fully operational during the first quarter of 2012 and together with our existing annual retainer clients will provide a strong base for Huntsworth going forward.
Sally Withey, Chief Operating Officer of Huntsworth, said:
"The Group strategy is to win two and three year global and multi-office contracts. The pipeline for these larger mandates is good and following our brand rationalisation, our success in winning them has considerably improved in the third quarter. These new global and multi-office wins which we announce today will be on stream in early 2012."
The balance sheet remains robust and we continue to operate within our banking covenants.
Current trading
"We have recently experienced the cancellation of over £4m of scheduled year-end projects due to global economic uncertainty. The timing of these cutbacks coming so late in the year will not enable us to reduce costs accordingly. We therefore expect to fall short of management profit expectations by £4m," said Sally Withey.
"In the UK and Europe - geographies which together account for 62% of Huntsworth revenues - these cutbacks are in fast moving consumer goods, consumer durables, environmental and CSR programmes and, in the USA, nervousness in the pharmaceutical industry is slowing spending decisions and delaying new business starts.
"On the assumption that these client cutbacks are further signs of a lasting economic downturn in our primary European markets, we have taken the decision to reduce our cost base to ensure that, within six weeks, at the start of 2012, we will have returned the Group to its historic operating margins."
Contacts:
Huntsworth plc +44 (0)207 224 8778
Peter Chadlington, Chief Executive
Sally Withey, Chief Operating Officer
Colin Adams, Finance Director
Citigate Dewe Rogerson +44 (0)207 638 9571
Simon Rigby
Angharad Couch