Huntsworth accounted for £180.1 million (about $224 million) in revenues for 2016, revealing like-for-like growth of one percent, according to yearly results the London-based PR group released today.
Headline profit before tax revealed especially strong gains, up 21 percent (and six percent on a like-for-like basis) to £16 million (about $20 million), a big leap from 2015’s £13.3 million (about $16.5 million).
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Huntsworth Health — the communications group’s largest division, accounting more than half of its revenues — was the standout performer this year, accounting for £90.8 million in revenues (about $113 million), revealing like-for-like growth of 13.8 percent from 2015’s £72.3 million (about $90 million). Operating profits at the health and science division was £18.3 million ($22.8 million) million, up more than 20 percent from 2015’s £13.8 million ($17.2 million).
On the other hand, PR flagship Grayling performed poorly in 2016, offering £53.9 million in revenues ($67.2 million), a like-for-like plummet of 17.4 percent from 2015’s £63.2 million ($78.8 million). Grayling’s operating profits resulted in a $1 million loss (£800,000), compared to 2015’s profits of £2.6 million ($3.2 million).
Executives in a preliminary results statement said declines at the unit were due, in part, to “challenging trading conditions, particularly in the U.S.,” as well as the Middle East region, where the PR unit suffered client losses and client renewal delays. Huntsworth stated that Europe “remains the strongest and most profitable” region for Grayling.
Huntsworth in a February trading statement announced the restructuring of that unit, which began in 2015, is now complete and said that “early indications are that the Group’s trading in Q1 is in line with management expectations.”
PR shops Red and Citigate saw modest like-for-like revenue gains of 4 percent and 4.5 percent, respectively.
In a statement, Huntsworth CEO Paul Taaffe said the global PR group’s 2016 performance is mostly reflective of Huntsworth’s strong growth and Grayling’s underperformance, as well as the impact of a positive change in exchange rates.
“The Group has delivered a 21 percent increase in headline profits as a result of strong growth in Huntsworth Health, Citigate Dewe Rogerson and Red, together with favorable movements in exchange rates. While Grayling declined, the restructuring is now complete, and as a result, the division is well-placed to return to profitability in 2017.”
“The Group is now positioned for continued growth,” Taaffe continued, “led by Huntsworth Health and supported by favorable exchange rates.”
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