Share price: 104.00p

FINAL RESULTS

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.”

     

Contact Us

Dianna Hillier

Dianna.Hillier@cellohealth.com

Phone 020 7812 8468

Address

Cello Health plc

Queens House

8-9 Queen Street

London

EC4N 1SP

Registered Office

Queens House

8-9 Queen Street

London

EC4N 1SP

Company Registered

in England no.05120150