Hasgrove predicts significant profit growth
In a trading update from Manchester-based, AIM-listed marketing group Hasgrove, the company has revealed it expects to report profits for 2010 significantly in excess of those for 2009.
The update, which comes ahead of a full financial report in April, states that the parent company of Amaze and The Chase expects to report income in the region of £28.5m, up from £26.8m in 2009, and increased pre-exceptional operating profit of £3.5m, up from £2.9m.
Profit growth comes despite a reduction in public sector work in the second half of the year, significant investment in Interact, the intranet business and underperformance in one division that required further restructuring.
The fourth quarter saw delays in client decisions the group due to extended procurement processes, which meant that around £350k of expected profit will now be carried over into 2011
The group says it continues to attract high quality opportunities and the pipeline is strong, CEO Rod Hyde (pictured) saying: "We have made substantial progress over the last year. Despite the UK public sector cuts, our profits have grown by approximately 20% to £3.5m. Sales pipelines continue to be healthy and our conversion rates are good. Investment in our businesses and offerings are already starting to pay off and we are increasingly optimistic about our prospects in 2011."