Cello Health plc (LON:CLL) said it had a strong start to the year which looks set to continue into the second quarter based on current visibility, and it is confident of achieving a successful result in 2018.
In a statement to be delivered at today’s annual general meeting, the AIM-listed firm’s chairman Allan Rich, said: “At an operational level, Cello Health has had a robust first quarter with good revenue growth and profit performance from Cello Health Insight and Cello Health Consulting, as well as strong results from our Cello Communications business in the US.”
READ: Healthacre growth lifts Cello group’s profits, will become main focus
The chairman pointed out that Cello Signal has also made a good start to the year, with solid operating profit performance, helped by the restructuring of the US operations in 2017. Meanwhile Signal’s health communications activity has got off to a quick start to the year with several significant project wins and a good pipeline of opportunities.
Rich added that the group’s balance sheet remains strong, with good cash conversion so far in 2018.
“The Group continues to assess suitable acquisitions in line with the strategic objective of further growing the Cello Health brand in the US,” he said.
He also said that the change of the group's name to Cello Health from Cello Group better reflected the primary strategic focus of the business on the healthcare sector.
The chairman concluded: “The Group’s markets in healthcare are large and attractive, and our positions is underlined by the fact that we already work with 24 of the top 25 pharmaceutical companies globally.”
In a note to clients, analysts at finnCap said:
“Cello has developed a strong, core lead integrated global healthcare marketing services brand, creating a breadth and quality of service that others will struggle to provide under their disparate corporate structures."
They added: "Cello has to prove the benefits of this move, but with net cash and the potential to also leverage its digital expertise into health, there is clear opportunity to create significant value.”
In lunchtime trading, Cello’s shares jumped 2.09% to 122.00p.
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