Shares in PR and healthcare communications group Huntsworth gained 14 per cent after better than expected results and reassuring comments on the outlook for 2009. Chief executive Lord Chadlington said that new business momentum has picked up and pointed out that 78 per cent of 2009 revenues are already booked.
Revenue from the PR division - which accounts for 74 per cent of group sales - held firm, slipping just 3 per cent to £118m, with business-to-business and public affairs work proving resilient. Financial services work continued to fall - now accounting for just 4 per cent of sales - but healthcare communications proved robust, with sales up 27 per cent to £41m.
Meanwhile, net debt fell by £20.6m to £33.5m and banking facilities are in place until 2012. Three earnout payments totalling £18.5m are due between now and 2011, but management remains confident that net debt will be "in single digits" by the end of 2012.
Broker Numis Securities expects 2009 pre-tax profits of £24m and EPS of 8.1p (from 8.3p in 2008).
HUNTSWORTH (HNT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 45p | MARKET VALUE: | £ 95.4m | |
| TOUCH: | 44-46 | 12-MONTH HIGH: | 87p | LOW: 20p |
| DIVIDEND YIELD: | 6% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 94p* | NET DEBT: | 17% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2004 | 46.0 | 2.00 | 2.40 | 1.0 |
| 2005 | 108 | -33.0 | -20.9 | 1.7 |
| 2006 | 140 | 4.00 | 1.50 | 1.9 |
| 2007 | 152 | 10.8 | 5.90 | 2.5 |
| 2008 | 159 | 20.1 | 4.80 | 2.7 |
| % change | +5 | +87 | -19 | +8 |
Ex-div: 27 May Payment: 03 Jul *Includes intangible assets of £259m, or 122p per share | ||||
