LONDON (Alliance News) - Huntsworth PLC said on Tuesday that seasonal timings and client mix change caused a net cash outflow in the first half of 2018, despite rise in profit and revenue.
Shares in the healthcare communications group were down 8.7% at 121.00 pence on Tuesday.
Pretax profit for the six months to the end of June was GBP10.3 million, up from GBP9.2 million, on a revenue that rose to GBP102.2 million from GBP94.2 million.
Like-for-like revenue growth in the Immersive and Medical division were 16% and 11% respectively, more than offsetting the decline in Marketing and Communications by 8.5% and 5.4% respectively.
Marketing revenue fell as a result of delayed client project expenditure and the loss of drug mandates due to regulation and competition. Communications declined as a result of losses in the Grayling business following the removal of unprofitable contracts.
In addition, Huntsworth's cash outflow came up to GBP1.7 million for the period, from an inflow of GBP6.4 million the prior year.
Huntsworth declared an interim dividend of 0.70 pence, up 27% from 0.55p the year before.
The group said it expects to see a good performance in the second half of the year, leading to confidence in the full year outcome.
"Huntsworth has made strong progress in positioning itself within the healthcare market and meeting the changing needs of clients following the successful acquisition of Giant Creative Strategy LLC, as well as the integration of The Creative Engagement Group and AboveNation Media LLC and further investments in all the Healthcare divisions. Amid tough comparatives, the group has performed well with strong growth in headline profit before tax. We are well positioned for further growth in the second half and into 2019," said Chief Executive Officer Paul Taaffe.
