Full-year figures from media agency Huntsworth (HNT) were overshadowed by news that Chinese public relations group BlueFocus is injecting £36.5m into the group. That will be achieved though a share subscription, at 58p a share, leaving BlueFocus with a 19.8 per cent stake. The funds will be used to cut borrowings and support organic growth, through investing in digital capacity.
Operationally, like-for-like group revenue fell 0.3 per cent in 2012 but, adjust for various exceptionals, and underlying pre-tax profit rose 17.4 per cent to £22.5m. Indeed, efforts to control costs helped the operating margin widen by 1.9 percentage points to 19.4 per cent. At the divisional level, Grayling - which has over 60 per cent of its business in the UK and Europe - saw revenues fall 3.1 per cent to £83.5m, but tight cost controls helped boost operating profits there by 7.7 per cent to £15.3m. Huntsworth Health, meanwhile, grew operating profits by 23.7 per cent to £11.5m, although tough financial sector conditions meant Citigate's revenue fell 10.5 per cent to £22.8m, with profits down 17.6 per cent to £4.2m.
Broker Numis Securities expects pre-tax profit of £20m for 2013, giving EPS of 5.6p (from £22.5m and 6.9p in 2012).
| HUNTSWORTH (HNT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 62p | MARKET VALUE: | £157m | |
| TOUCH: | 61-63p | 12-MONTH HIGH: | 63p | LOW: 37p |
| DIVIDEND YIELD: | 5.6% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 85p* | NET DEBT: | 31% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 159 | 20.1 | 4.80 | 2.70 |
| 2009 | 209 | -10.0 | -4.20 | 2.90 |
| 2010 | 224 | 21.8 | 7.40 | 3.50 |
| 2011 | 221 | 10.6 | 4.10 | 3.50 |
| 2012 | 216 | 18.8 | 6.30 | 3.50 |
| % change | -2 | +77 | +54 | - |
Ex-div: 29 May Payment: 5 Jul *Includes intangible assets of £294m or 116p a share | ||||
