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

Cello unbowed by share price fall

By John Harrington

Date: Tuesday 15 Mar 2011

LONDON (ShareCast) - A placing of 5.3m shares at 52.5p, well below the prevailing market price, to help fund an acquisition overshadowed a decent set of full year results from market research and consulting group Cello.

The company, which is raising around £2.8m through the placing, is paying $5.5m cash plus 5.8m Cello shares for MedErgy HealthGroup, a healthcare communications consulting company based in Pennsylvania, USA.

Cello’s chief executive officer, Mark Scott, sounded fairly sanguine about the sharp fall in the share price that accompanied the acquisition announcement and the release of full year results for 2010.

“It’s obviously due to the share placing rather than the deal we have announced,” Scott told Sharecast. “It’s a very good deal. It boosts our presence in the pharmaceutical market, and it’s a very complementary fit,” he added. "The business is doing so well, we had to buy it now or we might not have been able to afford it next year," he quipped.

Aside from beefing up the company’s presence in the USA, MedErgy’s expertise on the pre-launch side of the drugs development business will fit in well with Cello’s, which is stronger on the post-launch side.

Key services provided by MedErgy include strategic consultancy, scientific communications, and medical education and clinician learning.

The two companies share some clients, Scott revealed, but there are plenty of cross-selling opportunities.

“MedErgy will accelerate Cello's expansion in healthcare research and communications and increase our exposure to international client briefs,” Scott said. It’s an area where Cello is keen to grow. “High margin, high barriers to entry, it’s hard to think of a better business to be in, to be honest,” Scott claimed.

For the year ended 31 December 2010, MedErgy recorded net revenues of $9.0m and profits before tax of $2.3m. As at 31 December 2010, MedErgy had gross assets of $6.0m, and no debt.

Turning to the company’s results for 2010, Scott said business is more or less back to normal levels now after the trials and tribulations experienced in the final two or three years of the first decade of the new millennium.

Revenue was stable at £125.0m, compared to £123.7m in 2009, and the company returned firmly to the black with a profit before tax of £4.93m, versus a loss of £5.75m the year before.

Headline operating profit was up 21% to £7.3m from £6.0m, while like for like gross profit edged up 1% to £60.3m from £59.7m. Research and Consulting was the engine of growth with like for like gross profit growing 3.6% from a year earlier.

The final quarter showed continued improving commitment to spend by clients in the group's core areas of expertise, the company said.

Net debt was reduced to £8.8m from £11.5m at the end of 2010.

“One of the key things we are really pleased about is we have reduced our dependence on public sector spending. Two years ago it accounted for 20% of our revenue, this is now down to 6%,” Scott said.

A final dividend of 0.905p has been proposed, taking the full year payment up to 1.43p, a 10% increase on 2009’s payment.

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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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