Health marketing group Cello Group plc (LON:CLL) said momentum has built across its business in 2016 and it was confident going into the current year.
“The group begins 2017 with good momentum from existing and new clients secured in 2016. The Board is confident that current consensus market expectations will be met,” said the statement.
In the past year, the health arm’s core insight, consulting and communications businesses delivered strong like-for-like gross profit growth especially in the US, but tough trading in consumer weighed on the division’s performance.
Cello has decided to rein back its consumer activities as a result, which will mean a £5mln impairment charge this year.
Cello Signal, a digital marketing agency for charities and blue chips, has also been consolidated under one brand.
Gross profit momentum at Signal has been strong and operating margins were also stronger during 2016 as a result, Cello said, though it take a £1mln one-off charge this year for the restructuring costs.