Arun Sudhaman 02 Apr 2012 // 11:00PM GMT
LONDON--Huntsworth Group, which owns Grayling, Citigate and Red Consultancy, has reported PR revenue growth of two percent in 2011.
The group’s results come after it revealed £4m worth of client budget cuts towards the end of last year, resulting in a re-organisation announced earlier this year. Accordingly Huntsworth profit before tax plunged 28 percent in 2011 to £19.1m. Overall group revenues rose by 1.5 percent to £176.3m.
Grayling, which accounts for almost half of the group’s income, grew by just one percent in 2011, bolstered by 25 percent growth in multi-office revenues. Grayling reached £87.4m in revenue,
Citigate improved by three percent, while Red Consultancy grew by seven percent. Huntsworth Health, however, declined by one percent.
In a statement, Huntsworth chief executive Lord Chadlington said that the group is forecasting three percent revenue growth in the first quarter of this year, and about one quarter of budgeted profits for the year.
“The Group’s new business pipeline is strong and we expect the improvement in profitability to be maintained both in the first half and for the year as a whole,” he said.
“Management has taken action to reduce the cost base across the Group, as well as make it more
flexible and better able to match clients’ requirements and spending patterns,” he added.
“The Group’s revenue and profit profile is expected to be delivered more evenly over each quarter of the year than historically has been the case. By having a greater proportion of larger long term contracts, we reduce our reliance on project income in the traditionally strong Q4.”