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Huntsworth on track to meet expectations
17th Dec 2019 08:16
(Sharecast News) - Huntsworth said it was on track to meet annual profit expectations after its marketing division returned to growth.
The healthcare and communications company said like-for-like revenue would rise by about 3% in the year to the end of December and that headline pretax profit would be within the £38.5m to £41m range of market expectations.
The marketing division returned to growth in 2019 with momentum gathering in the second half of the year. Clients deferring projects and product closures limited growth to about 3% in the second half. Marketing project wins were good and prospects are healthy for 2020, the company said.
Annual like-for-like revenue rose by about 8% at the medical division. Growth prospects are good but the cost of securing mandates has hit profit, Huntsworth said. Growth at the communications division improved in the second half.
Huntsworth provides marketing and medical communication services to healthcare clients alongside a smaller communications arm that includes the PR firms Citigrate Dewe Rogerson and Red. The company's shares fell 2.9%% to 80.2p at 0837 GMT.
The company said: "Despite some currency headwinds as a result of the strengthening in sterling, management is confident about the group's future trading and expects continued good growth across all of its businesses in 2020."
The healthcare and communications company said like-for-like revenue would rise by about 3% in the year to the end of December and that headline pretax profit would be within the £38.5m to £41m range of market expectations.
The marketing division returned to growth in 2019 with momentum gathering in the second half of the year. Clients deferring projects and product closures limited growth to about 3% in the second half. Marketing project wins were good and prospects are healthy for 2020, the company said.
Annual like-for-like revenue rose by about 8% at the medical division. Growth prospects are good but the cost of securing mandates has hit profit, Huntsworth said. Growth at the communications division improved in the second half.
Huntsworth provides marketing and medical communication services to healthcare clients alongside a smaller communications arm that includes the PR firms Citigrate Dewe Rogerson and Red. The company's shares fell 2.9%% to 80.2p at 0837 GMT.
The company said: "Despite some currency headwinds as a result of the strengthening in sterling, management is confident about the group's future trading and expects continued good growth across all of its businesses in 2020."