14th May 2013
Cello Group plc (AIM: CLL), the insight and strategic marketing group announces that, at the General Meeting this afternoon, Chairman Allan Rich will say:
“The Group has seen robust trading so far this year, reflecting the continued good performance of Cello Health and the continued strong recovery of Cello Consumer.
Cello Health has had a good start to the year, reflecting the strong pipeline of work secured at the end of 2012 and continued healthy new business activity in 2013. The US continues to see strong activity levels and Cello Health plans to open a new office in Chicago shortly to maintain this positive momentum. It is pleasing that the Group has sold several E-Village contracts in the US, and the new IQ quantitative research offer has also got off to a successful start. In total, these wins are worth over £1.0m of gross profit. A number of the investment initiatives commenced in 2012 have therefore already begun to come into profit. Mash Healthcare, acquired in January 2013, has been trading very well.
Cello Consumer has continued to recover, trading much more strongly than the same period last year, reflecting the improved focus of the business and the securing of a number of larger contract wins. In particular, the retained income profile of the business has improved, with the consumer research business winning eight new retained quantitative tracker studies with a combined annual gross profit of c. £0.9m. The Group has also seen the launch in April of its advanced social media tracking software, Pulsar TRAC. The Group is pleased to report that this product has retained contracts with o2, and a major high street bank, as well as being used on a project basis by a large UK retailer and two global FMCG companies. Annualised contracted revenues for this new product are approaching £1.0m. Cello Consumer’s international office network in the US and Asia has also begun to show early profitability.
The Group’s cash position is considerably stronger than expected, reflecting excellent working capital performance.
The Board is confident that the business wins detailed above, combined with good visibility in the order book in both the Health and Consumer businesses, will deliver a half year result in excess of the prior year. The Board also remains confident that full year expectations will be met.
|Cello Group plc|
|Mark Scott, Chief Executive||020 7812 8460|
|Mark Bentley, Group Finance Director|
|Bobbie Hilliam||020 7397 8927|
|Mark Edwards||020 7466 5000|