Huntsworth reports 17.2% Citigate revenue drop

Huntsworth has reported a 17.2% drop in like-for-like revenues at its financial PR agency Citigate in a difficult Q3.

Lord Chadlington: Huntsworth CEO
Lord Chadlington: Huntsworth CEO

The UK-listed comms group's statement revealed that its overall like-for-like revenue declined by 3.6% in the third quarter against 7% growth in 2011.

Alongside Citigate, this included a revenue decline of 7.6% for Grayling, with difficult economic conditions across Europe highlighted by the company, which accounts for 60% of total revenues.

The downturn in financial and corporate activity in the UK financial markets was also pointed to by the group as playing a key role in the results.

Meanwhile, Huntsworth Health reported growth of 6.8% and The Red Consultancy growth of 11.4%.

Sally Withey, COO and finance director, said: ‘Huntsworth Health showed strong revenue growth in Q3 with no sign of the downturn which affected Q4 2011 and The Red Consultancy continued to show excellent revenue growth.

'In Grayling, new multi-office business could not offset a further slowdown in Q3 across the eurozone. At Citigate, revenues in Europe and the Far East showed some growth but the division was held back in London by the continuing lack of activity in the UK financial markets.

‘While revenues in the third quarter were softer than anticipated, costs have been controlled and we therefore expect to show a significant improvement in profitability for 2012.’

PRWeek reported this summer that Huntsworth’s pre-tax profits had grown by more than 20%, with CEO Lord Chadlington attributing the rise to 'rigorous cost control'.

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