3Q 2012: Huntsworth Revenues Drop 3.6% On Citigate And Grayling Decline
Charting the future of public relations
Holmes Report
President/Editor-in-Chief

3Q 2012: Huntsworth Revenues Drop 3.6% On Citigate And Grayling Decline

Huntsworth has blamed adverse economic conditions for a revenue decline of 3.6 percent in the third quarter of 2012.

Arun Sudhaman

LONDON--Grayling and Citigate both saw significant declines as Huntsworth reported a revenue decrease of 3.6 percent in the third quarter of 2012.

Citigate saw revenues decrease by 17.2 percent, while Grayling dropped 7.6 percent.

Meanwhile, Huntsworth Health reported growth of 6.8 percent and Red growth of 11.4 percent.

The group said that it expects 2012 profits before tax and highlighted items to be significantly ahead of 2011, although at the lower end of current market expectations.

It added that revenues in the third quarter have been "adversely affected by the economic conditions in the UK and Europe", which account for 60 percent of group revenues, and by the downturn in financial and corporate activity in the UK financial markets.

"Huntsworth Health showed strong revenue growth in Q3 with no sign of the downturn which affected
Q4 2011 and Red continued to show excellent revenue growth," said COO Sally Withey. "In Grayling, new multi-office business could not offset a further slowdown in Q3 across the Eurozone. In Citigate, revenues in Europe and the Far East showed some growth but the division was held back in London by the continuing lack of activity in the UK financial markets."

"Whilst revenues in the third quarter were softer than anticipated, costs have been controlled and we
therefore expect to show a significant improvement in profitability for calendar 2012."

Huntsworth has struggled to grow since the financial crisis of 2008, and consequent recession. The group reported flat revenue growth in the first half of this year, after inching upwards by two percent in 2011.

View Style:

Load 3 More
comments powered by Disqus