Cello Health (CLL)

Sector:

Health Care

Index:

FTSE AIM All-Share

 110.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 148.50p
  • 52 Week Low: 101.00p
  • Currency: UK Pounds
  • Shares Issued: 106.23m
  • Volume: 56,952
  • Market Cap: £116.85m
  • RiskGrade: 258

Update: Cello tops expectations

By John Harrington

Date: Tuesday 17 Mar 2009

LONDON (ShareCast) - AIM-listed marketing services group Cello saw profits slip slightly for the year but said it has made a “solid start” to the new year.

The group said it has secured some notable wins in the new year. “Furthermore, our relatively low exposure to cyclical sectors should benefit us as we continue to invest in expanding our core capabilities to gain market share,” it said.

Pre-tax profits in 2008 fell to £2.8m from £3.1m before on revenue that rose to £139.1m from £108.3m previously.

“Results were marginally ahead of market expectations. Only a couple hundred ‘K’ or so, but better than being below,” chief executive Mark Scott told Sharecast.

“Exposure to financial services gave us a bit of a dent at the end of the year. We have taken action to reduce that,” Scott said.

Referring to the company’s financial services work, Scott explained:
“We do work for insurance, pensions, banks and this has held up well. It’s more the speculative end that has tailed off, the bit relating to snagging new clients, and this is the area where we have taken action.”

The company remains highly cash generative, and is using the cash to progressively reduce gearing.

Net debt came in lower than expected, at £9.9m versus market expectations of £10.5m, and this was achieved despite earn-out payments of £8m.

The earn-outs are “a legacy from previous acquisitions,” Scott said. “These are deferred payments based on performance. We do them because they are accepted in the industry. As of this April, though, the bulk of the earn-outs are behind us. Earns-outs are no longer a relevant issue for us,” Scott declared.

The group said its focus on the defensive sub-sectors of research and direct marketing holds it in good stead against an increasingly challenging economic backdrop.

The company’s strength in the pharmaceuticals and public sector markets also provide the business with defensive properties, Scott maintained.

“We have recently actively targeted the public sector. It’s mainly second tier customers, like the Metropolitan Police and the Central Office of Information. We do a lot of research on crime statistics, knife crime and so on,” Scott explained.

In contrast, its presence in the pharmaceuticals sector goes back a long way.

“These [pharmaceutical] companies like to work with people they have had long term relationships with, which creates a high barrier to entry into this market,” Scott said.

The consensus forecast for adjusted pre-tax profit for 2009 is £6.7m which “seems like a sensible starting point, given this is only March,” Scott said.

The AIM-listed company has upped its full-year dividend by 4% to 1.25p from 1.2p the year before.

“The perception seems to be that things for AIM companies are really grim. It’s not the case at all,” Scott concluded.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Cello Health Market Data

Currency UK Pounds
Share Price 110.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 148.50p
52 Week Low 101.00p
Volume 56,952
Shares Issued 106.23m
Market Cap £116.85m
RiskGrade 258

Cello Health Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
64.69% below the market average64.69% below the market average64.69% below the market average64.69% below the market average64.69% below the market average
83.78% above the sector average83.78% above the sector average83.78% above the sector average83.78% above the sector average83.78% above the sector average
Price Trend
21.22% above the market average21.22% above the market average21.22% above the market average21.22% above the market average21.22% above the market average
12.2% below the sector average12.2% below the sector average12.2% below the sector average12.2% below the sector average12.2% below the sector average
Income
26.26% below the market average26.26% below the market average26.26% below the market average26.26% below the market average26.26% below the market average
86.67% above the sector average86.67% above the sector average86.67% above the sector average86.67% above the sector average86.67% above the sector average
Growth
39.24% below the market average39.24% below the market average39.24% below the market average39.24% below the market average39.24% below the market average
38.89% below the sector average38.89% below the sector average38.89% below the sector average38.89% below the sector average38.89% below the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 2
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Cello Health Dividends

  Latest Previous
  Interim Final
Ex-Div 03-Oct-19 25-Apr-19
Paid 01-Nov-19 24-May-19
Amount 1.15p 2.75p

Trades for 09-Apr-2020

Time Volume / Share Price
16:31 25,000 @ 110.00p
16:06 25,000 @ 110.00p
15:57 608 @ 111.64p
15:45 1,897 @ 112.00p
14:39 4,450 @ 109.06p

Cello Health Key Personnel

CEO Mark Scott

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