Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Cello Group confident of meeting full-year expectations after solid first half

The Cello Health unit led the way as it grew organically and via the acquisition of Defined Health
Cello Group confident of meeting full-year expectations after solid first half
The company is a specialist in healthcare marketing

Healthcare marketing specialist Cello Group PLC (LON:CLL) said it was confident of meeting full-year market expectations after a solid first half.

The Cello Health unit led the way as it grew organically and via the acquisition of Defined Health for £15mln in February, which cements its focus on the US.

WATCH: Cello Group continuing their push into the US market

It also bought Advantage Health for £1.1mln after the period-end.

Cello saw headline pre-tax profits grow 8% to £4.6mln in the six months to June 30 on revenue of £78.7mln. Like-for-like gross profit growth was up 5%, revealing the underlying business is performing solidly. The dividend will rise 5% to 1.05p.

Outlook good

On the outlook, it said the group continues to trade well, with Cello Health once again the stand-out performer.

"It has been an encouraging first half for the group,” said chief executive Mark Scott.

WATCH: Cello Group 'resourcing up and expanding' - CEO Mark Scott

“Cello Health's strategy of focusing on expansion in the US is progressing well.

“The acquisition of Defined Health in February this year has already made a good contribution and we are very pleased with its integration in Cello Health which is also achieving strong organic growth, particularly in the US. Cello Signal is on track to meet expectations.

“The board is therefore confident of meeting market expectations for the year and is pleased to increase the interim dividend."

Cello has two legs to its business

Health provides expertise, processes, intellectual property and market knowledge spanning the pharmaceutical, biotechnology, diagnostics, healthcare equipment and consumer health sectors.

If you want to know what’s going on in a particular area of the pharma business, Cello Heath’s database should be able to fill you in.

The division is split primarily between the UK and US and included on its client roster are some of the biggest names in the pharmaceuticals and biotechnology industries.

Cello Signal, meanwhile, provides “web-centred marketing solutions for big corporates” in the technology, gaming, retail, consumer goods and charities sectors.

Its goal is to “humanise” brands. In other words, to make you realise that even faceless corporate behemoths are actually run by real people.

Pulsar has potential

It has also developed Cello Pulsar, a social media analytics tool that has, according to the experts, the potential to be a real winner.

“Pulsar continues to grow fast, backed up by an increasingly close and evolving relationship with Facebook, demonstrated by the recent confirmation as a Facebook Insight Partner,” the company’s results statement said.

It now has 290 clients in the UK and 20 in the US, including a growing number of pharmaceutical clients. 

READ: Cello Group enjoys strong first half, on track to deliver full-year results in line with expectations

Monthly recurring revenue at June 30 was just over £430,000. 

This has risen from £260,000 at the same point last year.

Extra investment in account management has grown the renewal rate to around 80% by the end of June,” Cello said.

“Further investment is planned in the US market which represents Pulsar's largest opportunity for growth,” investors were told.

A tech company 

Pulsar, coupled with the company’s eVillage online community and its TriggerHub tool, mean Cello ought to be deemed as much a technology specialist as a services business.

The shares, up 30% in the year to date, rose 0.98p to 132.48p, valuing the business at £138mln.

“It seems reasonable to assume the share price is supported by the core healthcare business,” said analyst Guy Hewett.

“As we argued when initiating, Pulsar is in for free despite its potential to be a very valuable asset in a rapidly evolving market (how would Silicon Valley value this potential?).” 

View full CLL profile View Profile

Cello Health plc Timeline

Related Articles

August 15 2018
Milan Patel, dotdigital’s chief executive officer said: "This year reflects substantial progress against the company's strategic aims in accelerating our platform capabilities into the omnichannel space, continuing to innovate our product, growing geographically and deepening our relationships with our strategic partners”
Mobile users holding phones up
September 05 2018
The mobile advertiser is placing itself at the forefront of the digital revolution as companies and brands increasingly look to the web as the next forefront of advertising
September 19 2018
“Cello Health is successfully building its early stage asset development advisory platform for biotech clients, as well as growing its core later stage and post-launch franchise with pharmaceutical clients”

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use