Cello MR Arm Sees Profit Rise, Revenue Fall

The Research & Consulting division at UK insight and marketing group Cello has seen a 6.0% increase in gross profit to £19.6m and a 16% rise in headline operating profit to £3.7m for the first six months of the year, despite a 1.3% drop in revenue to £31m.

The division - which includes Leapfrog, 2CV, MRUK, RS Consulting, Insight Research Group, and MSI - reported 'continued strength' in pharmaceutical activity, which now accounts for 45% of its research and consulting work and more than 70% of its US income.

Cello says profit growth was strongest among international clients seeking a global perspective on marketing and research issues. To better capture this market for global studies, Cello has opened an office in Singapore which will act as a central hub for its Asian client activities.

In addition, the group plans to expand further in the US to secure an increased share of international client spend, particularly in the pharmaceutical area.

CEO Mark Scott comments: 'Cello is benefiting from its focus on servicing the pharmaceutical sector, along with other high margin client sectors, on an international basis. The group has a powerful combination of online data gathering, advisory capability, and the ability to help clients implement their global marketing strategies. This is a good basis for continued growth and we are confident that management expectations for 2011 will be met.'

The group as a whole - including its non-MR divisions - reported a 2.3% rise in revenue to £62.9m (2010: £61.5m), and gross profit up 1.9% to £30.5m (2010: £29.9m), while reported operating profit dropped from £3m to £2.5m.

Web sites: www.cellogroup.co.uk .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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