These results from Huntsworth (HNT) paint a rather uninspiring picture even though the global media agency broadly met earnings forecasts. And in the traditional manner of a public relations and communications specialist, chief executive Peter Chadlington found plenty of positives to talk about despite reporting a 0.5 per cent decline in like-for-like revenues and a 9 per cent fall in adjusted operating profits to £12.4m.
"Three of our four divisions are performing well", Mr Chadlington says. Nevertheless, "recessionary markets in the UK and Europe continued to affect Grayling", the group's largest division, which accounts for 45 per cent of revenues. There, Huntsworth hopes a £4m investment earlier this year in new digital capabilities, multi-office expansion into new markets and specialised staff, including a new Grayling chief executive, will halt the 7.2 per cent revenue decline seen in the first half. The investment is likely to dent profits in the current year, though.
Thankfully, Huntsworth Health was able to pick up much of the slack with like-for-like revenue growth of almost 10 per cent. The healthcare communications division now accounts for a third of group revenues. Huntsworth should also be in a stronger financial position by September, when it expects to receive a £36.5m investment from Chinese public relations group BlueFocus.
Numis forecasts current-year pre-tax profits of £20m and EPS of 5.5p, rising to £26.5m and 6.3p in 2014 (from £22.5m and 6.9p in 2012).
HUNTSWORTH (HNT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 59p | MARKET VALUE: | £151.2m | |
| TOUCH: | 58-59p | 12-MONTH HIGH: | 64p | LOW: 37p |
| DIVIDEND YIELD: | 5.9% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 88p* | NET DEBT: | 30% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 88.2 | 9.55 | 3.2 | 1.0 |
| 2013 | 88.9 | 8.31 | 2.6 | 1.0 |
| % change | +1 | -13 | -19 | |
Ex-div: 2 Oct Payment: 8 Nov *Includes intangible assets of £303m, or 118p a share | ||||
