Year End Results 30 December 2010
15th March 2011
A strong performance
Cello Group plc (AIM:CLL, “Cello” or “the Group”), the insight and strategic marketing group, today announces its final audited results for the year to 31 December 2010.
- Headline operating profit1 up 21% to £7.3m (2009: £6.0m)
Reported operating profit £5.7m (2009: loss 4.9m)
Like-for-like gross profit2 up 3.6% in Research and Consulting
Like-for-like gross profit2 up 1% to £60.3m (2009: £59.7m)
Headline basic earnings per share3 7.67p (2009: 7.56p)
Reported basic earnings per share 5.88p (2009: loss per share 11.31p)
Full year dividend up 10% at 1.43p (2009: 1.30p)
Strong cash generation reduces net debt to £8.8m (2009: £11.5m)
Good start to 2011 – momentum in Q4 2010 continued into Q1 2011
Robust pipelines of non-UK work in Research and Consulting
Healthy profitability in core US business
Acquisition and placing
- Acquisition announced today of MedErgy HealthGroup Inc further strengthening healthcare and non UK revenue base
Also today, to part finance the acquisition, the Group is pleased to have announced the conditional placing to raise £2.8m (before expenses) at a placing price of 52.5p from new and existing institutional investors and certain directors of the Group
Mark Scott, Chief Executive, commented:
“2010 saw a strong performance, particularly in our research and consultancy operation. Our focus on the healthcare market and our increasingly global client base have resulted in robust profit growth. We plan to continue to internationalise our operating base in 2011 and strengthen our focus on our core client sectors. The acquisition of MedErgy, announced today, will accelerate this process.”
1Headline operating profit is defined as operating profit before restructuring costs, acquisition accounting adjustments, share option charges, impairment charges and amortisation.
2Like-for-like measures exclude discontinued operations and the impact of any reclassification of business between reporting segments.
3Headline earnings per share is defined in note 7.