Cello Group plc Pre Close Trading Statement (4256L)
19 July 2017 - 4:00PM
UK Regulatory
TIDMCLL
RNS Number : 4256L
Cello Group plc
19 July 2017
For Immediate Release 19 July 2017
Cello Group plc
('Cello' or the 'Group')
Pre Close Trading Statement
Cello Group plc (AIM:CLL), the healthcare and strategic
marketing group, today publishes the following update for the six
months to 30 June 2017.
The Group has had a good first half of the year, with
particularly strong overall and like-for-like growth from Cello
Health. With a good forward looking order book across the whole
Group, the Board remains confident that the Group will deliver a
strong full year result in line with current expectations.
Cello Health
Cello Health's global operation has made good strides in
expanding its client reach. Overall, gross profit has grown at in
excess of 25% in the period and like-for-like growth in gross
profit has been in excess of 9% after adjusting for exchange rates.
The increasingly integrated client offering is expanding its reach
within existing, long standing pharmaceutical customers, as well as
proving successful in its new business drive. Of particular note,
Cello Health has continued to increase its presence in the higher
growth biotech area, adding a substantial number of new accounts.
Following its acquisition in January 2017, Defined Health has
performed well and has helped accelerate this trend towards
biotech. Cello Health Bioconsulting has now moved into profit after
a period of further investment in the first quarter.
The US continues to increase its share of Cello Health's overall
business, in line with the stated growth strategy. Cello Health
Consumer has made solid progress, particularly in the US, and is
now more effectively supporting Cello Health's core offering.
Overall operating profit margins are slightly lower at the half
year stage, reflecting the substantial addition of professional
resource to enable the business to meet its full year gross profit
and profit growth targets as well as its longer term goals.
Yesterday, the Group was pleased to announce the acquisition of
the trade and assets of Advantage Healthcare Inc. This acquisition
further reinforces Cello Health's positioning in the Biotech area
as well as enlarging the presence of Cello Health in the key US
market.
In addition, the Board continues to review a number of earnings
enhancing acquisitions in the healthcare space.
Cello Signal
Cello Signal has continued to make solid progress against its
strategic goals.
Pulsar, Signal's social media software business, has continued
its rapid rate of growth. On this basis, the Group is making a
larger investment commitment behind supporting its entry into the
US market. To fully identify this investment, the Company will
account for this as a start-up loss for presentational purposes for
2017.
In line with earlier guidance, the business has seen a slight
decline in gross profit in the first half of the financial year, as
two large one-off contracts were present in the prior year. Cello
Signal has also substantially reduced its headcount on the West
Coast of the USA, where staff were engaged primarily in bespoke
consumer market research. While this action will incur a one off
charge for the full year, it will increase operating margins for
Cello Signal going forward.
Good overall gross profit visibility allows the Group to be
confident about the full year outcome for Cello Signal. This, along
with the cost measures already mentioned, places the business in a
good position to continue to raise operating margins, in line with
the Group's strategy.
Outlook
The Board expects the gross profit momentum achieved by Cello
Health in the first half to continue. Forward bookings at Cello
Signal are good and support the current outlook for the business.
Overall, the Board remains confident that the Group will deliver a
strong full year result in line with current expectations.
Enquiries:
Cello Group plc
Mark Scott, Chief Executive 020 7812 8460
Mark Bentley, Group Finance
Director
Cenkos
Bobbie Hilliam 020 7397 8927
Buchanan
Richard Oldworth
Jamie Hooper
Madeleine Seacombe 020 7466 5000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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