By Greg Hazley
Huntsworth, the U.K. PR and healthcare communications holding company, said revenue ticked up 1.3% in the first half of 2011 to £88.1M as gains at its Grayling, Huntsworth Health and Red units contrasted with a decline at Citigate.
Like-for-like revenue growth at Citigate fell 2.5% to £13.2M amid a “subdued” IPO and M&A market, while revenue rose at its other units.
Chadlington |
Peter Chadlington, CEO of Huntsworth, said clients are taking much longer to make decisions, procurement is playing a greater role, and a “much higher level of sophistication” is being applied to hiring agencies, changes, he says, are here to stay but particularly visible during difficult economic times. One side effect is that the company will not see full revenue benefits from global business wins earlier this year -- British Airways, DHL and DEK -- until Q4 or early 2012.
“While we wait for these larger accounts to come on stream, particularly in Q4 and in 2012, it has been necessary for us to hold the resources in place to service the expected revenue increase, in turn putting short-term pressure on margins,” he said.
U.S. operations were up 4.8% while the U.K. was essentially flat at a 0.3% increase and Western Europe fell 4.7%.
Operating profit fell to £8.1M from £11.2M a year earlier.
Recent client wins and existing business expansion at Grayling, which is 49% of Huntsworth’s revenue base, include Google (Sweden, Russia), Audi (Middle East), European Commission for DG Employment, and BAE Systems (Middle East).
Huntsworth in March acquired Atomic PR for an initial consideration of $13.3M.
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