Huntsworth today reported that 2011 operating profit slipped 39 percent to $24M as revenues inched ahead 1.1 percent to $282M, following the unexpected cancellation of yearend projects at Grayling and Huntsworth Health units that account for 77 percent of overall revenues.
CEO Peter Chadlington expects a rebound this year as the firm has a greater portion of long-term contracts to reduce reliance on project income. Global and multi-office accounts now generate nearly half (48 percent) of Huntsworth’s revenue base. PR revenues grew by 2% with 3% growth in the U.K., 1.7% growth in the Eurozone and 1% growth in the rest of the world.
Chadlington anticipates a three percent growth in Q1 revenues and improved profitability during the first-half and for the full-year.
Grayling, which registered $140M in 2011 revenues, showed growth from clients such as Google, National Grid, and the EU Commission and the firm won business from BA, DHL and Qatar Foundation.
Chadlington expects Grayling to benefit due to a boost in digital revenues from Atomic PR and a spurt in activity from the Middle East.
The pharmaceutical sector generated 26 percent of Huntsworth’s revenues during the past year. Other key categories were financial (12%), information technology (10%), retail & leisure (7%), healthcare (7%), government & public sector (6%), industrial (5%) and food & beverages (5%).