Share price: 163.00p


20th March 2007

Organic growth drives profits up 40%

Cello Group plc (“Cello”, AIM: CLL), the market research and consulting group, today announces its preliminary audited results for the year to 31 December 2006.

• Turnover up 43% to £74.7m (2005: £52.1m)

• Gross profit up 46% to £38.8m (2005: £26.6m)

• Headline profit before tax up 40% to £5.9m (2005: £4.2m)

• Like-for-like gross profit growth of 16%

• Like-for-like operating profit growth of 27%

• Basic headline earnings per share up 28% to 12.57p (2005: 9.83p)

• Operating cash flow conversion strong at 91%

• Net debt of £1.1m (2005: cash: £1.9m)

• Full year dividend in 2006 of 1p (2005: nil)

• Acquisition of SMT in September boosts consulting capability

• Organic growth supplemented by profitable digital start-ups (Blonde/Oomph)

• Encouraging start to and good forward visibility for 2007

Kevin Steeds, Chairman, commented:


“These results represent a substantial step forward in scale for us as a public company. Our position and focus is clear. Over 75% of our group is in research and consulting, which is where we are experiencing high levels of organic growth.


“We start 2007 with real momentum. A healthy level of revenue visibility, combined with a strong balance sheet, will enable us to further invest for future growth.”


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