Huntsworth PLC (LON:HNT) rallied today after the healthcare communications and PR firm said it expects its full year results to be ahead of market forecasts.
In a pre-close trading update, the group said pre-tax profit in the year to 31 December 2016 is likely to exceed the consensus estimates range of £14.7mln to £15mln.
Earnings were supported by favourable exchange rates and robust growth in the fourth quarter at the company’s Huntsworth Health division.
Huntsworth added that it remains in a “strong financial position”, within its £70mln loan facility.
Net debt was about £31m at 31 December, leaving the group at circa 1.5x net debt to underlying earnings (EBITDA).
In the new fiscal year, the first quarter is trading in line with management’s expectations. Huntsworth has also completed the restructuring of its struggling marketing and communications business, Grayling.
“The group is focused on driving operating profit and the board is confident of further progress in 2017,” the company said in a statement.
Shares rose 12% to 45.36p in early morning trade.