Cello Reports 'Continuing Strong Performance'

For the year 2011, UK-based research group Cello has reported 'continuing strong performance' with revenue up 7.2% to £133m and a 6.6% increase in gross profit to £64.3m, driven by its Research and Consulting division.

The division - which includes Leapfrog, 2CV, RS Consulting, Insight Research Group and MSI - recorded a 4.1% increase in headline operating profit to £7.2m from gross profit of £41.3m, which it said resulted from continued spend from its large, long term global client relationships.

Cello, which acquired MedErgy HealthGroup in March 2011, said its strategic focus on the pharmaceutical sector continued to strengthen, with this sector accounting for 50.0% of gross profit in Research and Consulting (2010: 41.5%). To support this trend, the firm has recently launched a pharmaceutical analytics business called Cello Business Sciences.

Overall for the group, headline pre-tax profit was up 10.2% to £7.1m (2010: £6.4m). However, reported profit before tax fell from £4.9m in 2010 to £1.4m in 2011, as a result of impairment and restructuring costs of £2.5m and £0.9m respectively. Net debt fell 12.5% to £7.7m (2010: £8.8m).

CEO Mark Scott comments: 'We are confident that our focus on servicing international clients in the pharmaceutical and other high margin sectors with our innovative digital offerings will continue to drive growth.'

Web site: www.cellogroup.co.uk .