Share price: 163.00p


5th September 2006

Organic and acquisitive growth drive interim profits up 98%

Cello Group plc (AIM: CLL) the research and data led marketing services group, today announces its interim results for the six months ended 30 June 2006.

Financial highlights

• Turnover £31.7m (2005 restated*: £21.9m) – up 45%

• Gross profit £17.7m (2005: £10.3m) – up 72%

• Headline pre tax profit of £2.62m (2005: £1.32m) – up 98%

• Headline eps 5.60p (2005: 3.17p) – up 77%

• Like for like gross profit growth of 15% and operating profit growth of 35%

• Maiden dividend of 0.4p per share

• Pre tax profit £1.9m (2005 restated**: £0.8m) – up 138%

• Fully diluted eps 3.12p (2005 restated**: 1.39p) – up 124%

• Strong balance sheet with £2.3m net cash

• Current trading remains strong and continued good forward visibility of revenues leaves the Board confident of the full year outcome

Operational highlights

• Acquisition of Farm Communications in June 2006

• Continued client led growth in US and Basel offices

• Announcement today of an investment in Blonde, a start-up digital agency based in Edinburgh

*Restatement relates to UITF 40 adjustment. **Restatement relates to UK GAAP changes. Both detailed in note 11.

Kevin Steeds, Chairman, commented:

“We have delivered an excellent set of interim results with impressive like for like growth in both revenues and profits.

“We have continued to invest in our businesses and reinforce our position as a leading research and data led consultancy. Within the marketing services sector, we are one of the best performing groups, which is testimony to our positioning in high value added and higher growth areas of the marketing mix.

“Current trading remains strong. Visibility across the Group is excellent and we are confident about the full year outcome.”


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