Huntsworth Group sees profit growth despite declines for Grayling and Citigate
Global public relations and healthcare communications group, Huntsworth has released its interim results showing a pre tax profit growth of 20.8 per cent to £11.6 million, an increase on £9.6 million profit for this time in 2011.
The results, for the last six months up until 30 June 2012, showed that PR company Grayling which is owned by the network is down 1 per cent on this time last year. Citigate has also seen a fall of 4.6 per cent in profit. In better news for the network Huntsworth Health is up 2 per cent and, Red has seen a rise of 13.1 per cent.
Peter Chadlington, chief executive of Huntsworth, commented: "We have seen a 21 per cent increase in profits before tax compared to the first half of last year.
"This is a result of our rigorous cost control combined with the changing profile of the Group's revenue stream gathering pace with global and multi-office revenues growing strongly in the period and now accounting for almost half of Group revenues.
"These large multi-office account wins, which are typically on multi-year contracts, have taken time to come on stream but are now established and providing a firm revenue base across most markets, despite the challenging macro-economic environment which is increasingly impacting the expected decline in smaller single office revenues.
"Cash generation remains good and with a reduced future deferred consideration profile, the Group is expected to deleverage.
"We naturally remain cautious given the macro environment but progress in our multi-office and digital revenues are encouraging with a robust pipeline of new business for the second half and beyond."
Geographically speaking, the USA was up by 1.6 per cent and Europe rose by 4.8 per cent. This was driven by the networks expansion of previous international wins and revenues from digital agencies, which now represent 14 per cent of group revenues and have delivered 35.6 per cent like-for-like growth.
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