15 Nov 2012 07:00
15 November 2012
Huntsworth plc
("Huntsworth" or "the Group")
Interim Management Statement
Huntsworth plc, the international public relations and healthcare communications group, today publishes its Interim Management Statement for the period since 30 June 2012.
The Board expects 2012 profits before tax and highlighted items to be significantly ahead of 2011, although at the lower end of current market expectations.
Group revenues in the third quarter have, in common with other companies in the marketing services sector, been adversely affected by the economic conditions in the UK and Europe - which account for 60% of group revenues - and by the downturn in financial and corporate activity in the UK financial markets.
Group like-for-like revenues declined by 3.6% in the third quarter against 7.0% growth in 2011. Huntsworth Health reported growth of 6.8% and Red growth of 11.4%. Grayling, which has the majority of its divisional revenues in Europe, reported a decline of 7.6% and Citigate, the financial public relations division, a decline of 17.2%.
Sally Withey, Chief Operating Officer and Finance Director, said:
"Huntsworth Health showed strong revenue growth in Q3 with no sign of the downturn which affected Q4 2011 and Red continued to show excellent revenue growth. In Grayling, new multi-office business could not offset a further slowdown in Q3 across the Eurozone. In Citigate, revenues in Europe and the Far East showed some growth but the division was held back in London by the continuing lack of activity in the UK financial markets.
"Whilst revenues in the third quarter were softer than anticipated, costs have been controlled and we therefore expect to show a significant improvement in profitability for calendar 2012."
The balance sheet remains robust and we continue to operate comfortably within our banking covenants.
Contacts:
Huntsworth plc: +44 (0)207 224 8778
Peter Chadlington, Chief Executive
Sally Withey, Chief Operating Officer and Finance Director
Citigate Dewe Rogerson: +44 (0)207 638 9571
Simon Rigby
Angharad Couch