Public relations guru Huntsworth (HNT) did its best to put a positive spin on these results. The owner of PR agencies Red, Citigate and Grayling swung to top-line growth for the first time since 2011 as substantial cost-cutting and investments paid off. But strip out about £53m in one-off costs and operating profit fell 16 per cent to £15.3m.
Huntsworth's new directors completed a review of the business and most of its planned restructuring. Nonetheless, underlying sales slumped 7 per cent at both Grayling and Citigate. The latter reflected fierce competition for mandates in London: Citigate's sales slumped 17 per cent there, offsetting solid growth in the Netherlands and Asia.
Red posted higher sales as it worked on campaigns for Carling and McDonald's and signed up Listerine, Crest Nicholson and other new customers. But Huntsworth's saving grace was its healthcare communications agencies: strong demand from new and existing clients fuelled a 12 per cent rise in operating profit to £13.8m in this segment. And management expects further gains from Firsthand and TraverseHealth, its new digital marketing agency and digital consultancy.
Broker Numis expects pre-tax profit of £15.5m, giving EPS of 3.4p (from £13.3m and 3p in 2015).
| HUNTSWORTH (HNT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 41p | MARKET VALUE: | £135m | |
| TOUCH: | 40.8-42p | 12-MONTH HIGH: | 49p | LOW: 33p |
| DIVIDEND YIELD: | 4.3% | PE RATIO: | na | |
| NET ASSET VALUE: | 47p* | NET DEBT: | 20% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 221 | 10.6 | 4.1 | 3.50 |
| 2012 | 216 | 18.8 | 6.3 | 3.50 |
| 2013 | 209 | 17.1 | 5.0 | 3.50 |
| 2014 | 206 | -59.6 | -17.6 | 1.75 |
| 2015 | 209 | -39.8 | -12.3 | 1.75 |
| % change | +1 | - | - | - |
Ex-div: 26 May Payment: 7 Jul *Includes intangible assets of £179m, or 54p a share | ||||
