Huntsworth PLC Trading Update (1609G)
25 May 2017 - 4:00PM
UK Regulatory
TIDMHNT
RNS Number : 1609G
Huntsworth PLC
25 May 2017
Huntsworth
Trading update
Huntsworth plc, the healthcare communications and public
relations group, is today issuing the following trading update for
the four months to 30 April 2017.
* Group's full year results to be ahead of current
consensus
* Strong trading at Huntsworth Health and Red
* Grayling trading in line with management expectations
helped by UK agency returning to profit
Trading
The Group traded well through the first four months of the year,
led again by strong growth at Huntsworth Health. On a like for like
basis Huntsworth Health's revenues increased by over 10%, with good
margin performance despite ongoing investment in talent and further
diversification in two of the agencies. All of Huntsworth Health's
main agencies grew in the period, led by the two largest - Evoke
and Apothecom - which together account for circa 80% of divisional
revenue.
Grayling's UK business returned to profitability in the period
which means that, together with its European businesses, a large
part of Grayling (representing circa 70% of annual divisional
revenues) is now profitable. The US and META regions, however,
remain challenging. Although we expect a decline in Grayling's like
for like revenues this year, the division is trading in line with
management's expectations.
Red has performed strongly in the period with revenues up by
over 10%, with a number of new client wins. Some client churn is
expected in the second half of the year which will dampen the
overall annual growth rate.
Citigate Dewe Rogerson has experienced a mixed trading period
with revenues down 2% on a like for like basis. Operations in the
Netherlands, Singapore and Hong Kong have performed well, but
slower transactional markets in the UK and mainland China have
impacted overall revenue growth and profitability and will likely
weigh on the business further during the year.
Financial Position
The Group remains in a strong financial position, operating well
within its GBP70m facility. Net debt at 19 May 2017 was c. GBP31m,
in line with management expectations.
Outlook
As a result of the stronger growth at Health and Red along with
improved prospects at Grayling, we now expect the Group's full year
results to be ahead of current consensus*.
The Group remains focused on driving operating profit by
concentrating resources on its faster growing agencies and actively
managing those underperforming ones. The Board is confident of
continued progress through the remainder of 2017.
*Midpoint of consensus range for Headline PBT is GBP19.3m
Enquiries
Citigate Dewe Rogerson 020 7638 9571
Georgia Colkin
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTPGUGPAUPMGQC
(END) Dow Jones Newswires
May 25, 2017 02:00 ET (06:00 GMT)
Huntsworth (LSE:HNT)
Historical Stock Chart
From Apr 2024 to May 2024
Huntsworth (LSE:HNT)
Historical Stock Chart
From May 2023 to May 2024