Cello Group plc AGM STATEMENT (6098E)

TIDMCLL

RNS Number : 6098E

Cello Group plc

14 May 2013

 
 For immediate release   14 May 2013

CELLO GROUP PLC

("Cello" or "The Group")

AGM STATEMENT

Cello Group plc (AIM: CLL), the insight and strategic marketing group announces that, at the General Meeting this afternoon, Chairman Allan Rich will say:

"The Group has seen robust trading so far this year, reflecting the continued good performance of Cello Health and the continued strong recovery of Cello Consumer.

Cello Health has had a good start to the year, reflecting the strong pipeline of work secured at the end of 2012 and continued healthy new business activity in 2013. The US continues to see strong activity levels and Cello Health plans to open a new office in Chicago shortly to maintain this positive momentum. It is pleasing that the Group has sold several E-Village contracts in the US, and the new IQ quantitative research offer has also got off to a successful start. In total, these wins are worth over GBP1.0m of gross profit. A number of the investment initiatives commenced in 2012 have therefore already begun to come into profit. Mash Healthcare, acquired in January 2013, has been trading very well.

Cello Consumer has continued to recover, trading much more strongly than the same period last year, reflecting the improved focus of the business and the securing of a number of larger contract wins. In particular, the retained income profile of the business has improved, with the consumer research business winning eight new retained quantitative tracker studies with a combined annual gross profit of c. GBP0.9m. The Group has also seen the launch in April of its advanced social media tracking software, Pulsar TRAC. The Group is pleased to report that this product has retained contracts with o2, and a major high street bank, as well as being used on a project basis by a large UK retailer and two global FMCG companies. Annualised contracted revenues for this new product are approaching GBP1.0m. Cello Consumer's international office network in the US and Asia has also begun to show early profitability.

The Group's cash position is considerably stronger than expected, reflecting excellent working capital performance.

The Board is confident that the business wins detailed above, combined with good visibility in the order book in both the Health and Consumer businesses, will deliver a half year result in excess of the prior year. The Board also remains confident that full year expectations will be met.

Enquiries:

 
 Cello Group plc 
 Mark Scott, Chief Executive             020 7812 8460 
 Mark Bentley, Group Finance Director 
 Cenkos 
 Bobbie Hilliam                          020 7397 8927 
 
 Buchanan 
 Mark Edwards                            020 7466 5000 
 Sophie McNulty 
 Clare Akhurst 
 www.buchanan.uk.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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