14th March 2007
Group firmly established after strong first full year.
Cello Group plc (“Cello”), the marketing services group, today announces its preliminary audited results for the year to 31 December 2005.
• Increase in turnover to £52.1m (2004: £9.4m*)
• Increase in gross profit to £26.6m (2004: £3.9m*)
• Increase in profit before tax to £4.2m (2004: £1.3m*)
• Maiden dividend planned for 2006
• All acquisitions successfully integrated
• Net cash of £1.9m at 31 December 2005 following particularly strong operating cash flow conversion of 143% – benefiting from central financial controls
• Encouraging start to current year with healthy level of forward revenue visibility
* Comparative figures for 2004 represent results from only two months of trading to 31 December 2004.
Kevin Steeds, Chairman, commented: “These are very pleasing results for our first full year as a public company and lay the essential foundations for a profitable, cash generative and exciting future. We have delivered on our promises set out when Cello listed in November 2004 – in terms of sector focus, profitable growth and prudent funding.
We intend to invest further in our existing businesses in order to accelerate their organic growth as well as look at a small number of strategic acquisitions to enhance our positioning as a research and data led consulting business.
The Group has made an encouraging start to the current year and given the healthy level of forward revenue visibility, we are confident that each of our three platforms will continue to make an excellent contribution to another successful year.”