Pre-Close Trading Statement
19th July 2018
Cello Health plc (AIM: CLL), the global healthcare-focused advisory Group, today publishes the following trading update for the six months to 30 June 2018.
The Group has had a strong first six months to the year, with good growth in overall revenues and profits. Profit margins are slightly higher than in the same period last year.
The Board is confident of achieving a successful result in 2018 in line with current market expectations.
The Cello Health division has had a robust first half, with excellent like-for-like gross profit growth. Headline operating profit performance has been good from all three capabilities, namely Consulting, Insight and Communications. Operating profit margins are ahead of the same period last year.
The businesses acquired last year are now fully absorbed into the core operating structure of Cello Health and continue to make a good contribution, extending the reach of Cello Health into the biotech community to complement the pharmaceutical core of the business. Cello Health continues to expand organically both in Europe and the US. A new office is being opened shortly in central Philadelphia and the business plans to expand in Boston.
Cello Signal has also had a solid start to the year. While gross profit has declined slightly relative to the first half of 2017, first half profit margins have increased, therefore headline operating profits have grown slightly compared with 2017. Signal’s health communications activity has got off to a quick start to the year, with several significant project wins and a good pipeline of future opportunities. Signal is increasingly involved in supporting Cello Health’s proposition with clients, both with digital communications delivery and through the social media analytics software solutions of Pulsar.
The Group’s balance sheet remains strong, with the normal outflow of cash that occurs in the first half resulting in a small net debt position at the half year as anticipated. The Group continues to assess suitable acquisitions in line with the strategic objective of further growing the Cello Health brand in the US in particular.
Following the announcement at the AGM regarding the intended retirement of Will David and Paul Hamilton as Non-Executive Directors, the Group has made good progress in the search for appropriate successors and will make further announcements in due course.