LONDON: PR revenue at Huntsworth, the holding company of Grayling, Citigate, Huntsworth Health, and Red, was up 2% on a like-for-like basis in 2011 compared with the prior year. However, PR revenue was down 2.6% in the fourth quarter.
The company's overall revenue was up 1.5% last year to approximately $271.6 million. It saw 1.1% like-for-like revenue growth, which is stated at constant exchange rates and adjusted to include pre-acquisition revenue, last year. However, operating profit after central cost fell by 20.6% to approximately $36.2 million in 2011. Huntsworth reported an overall operating profit margin before central costs of 17.5%. The holding company earned about $93.3 million in North American revenue last year.
Huntsworth Health saw a 1% like-for-like revenue decline compared with 2010 to about $76.4 million, while Grayling reported 1% revenue growth to $134.7 million. Citigate's like-for-like revenue growth was 3% compared with last year to $41.3 million, while Red reported a 7% revenue increase to about $19.4 million. Operating margins at Grayling, Huntsworth Health, and Red were 16.2%, 18.7%, and 18.1%, respectively.
Operating profit at Citigate was about $7.8 million last year, while Grayling's operating profit was approximately $21.9 million. 2011 operating profit at Huntsworth Health and Red was $14.3 million and $3.5 million, respectively.
The company noted in its earnings report that Huntsworth Health is “included on global supplier lists of major pharmaceutical companies such as Roche, Novartis, Pfizer, and Johnson & Johnson,” and that “digital revenues will help drive growth in 2012 underpinned by large contract wins in 2011.” It listed Adobe and Symantec as major client wins for Red in 2011.
Huntsworth had 1,678 staffers at the end of last year.
The holding company said in an earnings statement that it performed well during the first three quarters of 2011, with like-for-like revenue growth reaching its target of 7%. “However, Q4 saw the cancellation of certain scheduled year-end projects, principally in Grayling and Huntsworth Health, due to global economic uncertainty. This resulted in a 6.4% like-for-like revenue decline that had an [approximately $6.2 million] impact on revenues and profit,” the company said in its earnings statement. Huntsworth said in late January that it was at the end of a rebudgeting process that resulted in a one-time restructuring cost of about $4.7 million.
The company expects to see 3% revenue growth in Q1, CEO Peter Chadlington said in a statement.