Huntsworth restructure starts to bear fruit

LONDON: PR and health communications group Huntsworth said like-for-like revenues rose less than 1% in the first half of 2010, although three of the company's four brands grew more than 4% in the period.

LONDON: PR and health communications group Huntsworth said like-for-like revenues rose less than 1% in the first half of 2010, although three of the company's four brands grew more than 4% in the period.

Huntsworth restructured its business units last year, slimming 26 brands down to four – Huntsworth Health, Red, Citigate, and Grayling – to better compete for multinational accounts.

CEO Peter Chadlington said in the earnings statement that the reorganization the company underwent in 2009 was “beginning to produce some very positive results.”

Huntsworth Health, which includes Tonic Life Communications, said like-for-like revenues were up 7.1% to $39.1 million* in the first half of 2010 - Citigate was up 4.2% to $21 million, and Red increased revenue 5% to $10.4 million.

"PR is one of our fastest-growing areas in Huntsworth Health," said Sally Withey, group COO for Huntsworth, noting that Tonic Life Communications recently opened its first office in Asia.

Grayling, which makes up 48% of the group's business, reported that like-for-like revenues fell 4.9% to $65.1 million, due in part to the loss or resignation of clients in Grayling and its newly acquired subsidiary Dutko Worldwide's commodity business.

Huntsworth noted in the earnings statement that the 2009 acquisition of Washington-based Dutko has strengthened the company's ability to increase fees because of the firm's presence in the US market.

"It was a strategic acquisition that enabled us to access political intelligence for our corporate clients in the US and globally," said Withey.

Overall, like-for-like revenues for the company in the first six months of 2010 were $135.5 million, a 0.4% increase over the same period in 2009. Pre-tax profit rose 9%.

“We are on target to meet full-year management expectations and achieve more than 7% like-for-like revenue growth rates during 2011,” said Chadlington in the earnings statement.

*Figures converted to US dollars using XE's currency converter.

 

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