Huntsworth reports £3m restructuring cost, but 'will hit 2011 market expectations'

Huntsworth, the marcoms group owner of Citigate, Grayling and Red, has said it will meet market expectations after 'rigorous action on costs'.

Lord Chadlington: Huntsworth CEO
Lord Chadlington: Huntsworth CEO

It released a pre-close trading statement for 2011 this morning, providing more details of the cost-cutting programme it embarked upon in November due to the short-notice cancellation of certain year-end projects.
Huntsworth has reduced the direct costs associated with the project cancellations, looked to align resources more effectively behind the mix of project and retainer contracts and critically examined its 2012 budgeting process.
The group said that ‘this process has now largely been completed’, resulting in a one-off restructuring cost of £3m.
The statement adds: ‘Despite the challenging macro-economic backdrop, the group’s new business pipeline is strong and the board is confident of improved trading in 2012 compared to 2011.
‘The benefits of the brand reorganisation continue to be felt and the group is well positioned to service larger international clients on longer contract terms… Group budgets for 2012 are underpinned by a number of such clients, reducing dependence on one-off project revenues.’
Meanwhile, finance director Colin Adams, who joined in April 2011, will leave the company at the end of April. Chief operating officer Sally Withey, who has previously held the joint roles of COO and FD, will resume the combined roles with immediate effect.
Additionally, Lord Puttnam and Eugene Beard will not stand for re-election to the board in 2012.

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