Cello Health Share Discussion Threads

[qs99] 22/1/2014 14:17

Thanks for that...with recovery gathering momentum, these sort of firms IMO may attract higher multiples as market anticipates faster growth and upgrades IMO.....lets see,...

[eezymunny] 22/1/2014 08:52

Net debt end H1 was £11.4m and now below £4m so they've had a bumper H2 for cash flow (tho some seasonality it would seem).

Adjusted pbt was £3.5m in H1 so they've done in excess of £4.5m in H2. Very strong...tho numbers quite clouded with exceptionals very often at CLL.

Current f/c for coming year is 7.41p so forward P/E c. 11.6 at 86p.

So end 2014 should be (net!) debt free (assuming no acquisitions etc), growing, and a pretty modest P/E if meet/beat.


CLL has traded on a much lower P/E over the years when much more debt/earnouts etc so not exactly a no-brainer but looks good to me here at this valuation, balance sheet situation etc.

Mr Market will decide.

I've added to the Eezymunny portfolio today

[wjccghcc] 22/1/2014 08:42

Well, if you want a negative, then:

"A single large, non-recurring contract from an existing client expanded rapidly in the second half of 2013, contributing to this particularly high level of profit growth. This particular contract will not recur."

[qs99] 22/1/2014 08:40

That should read "not far" sorry!

[qs99] 22/1/2014 08:40

Debt far to being paid off, earnings on up, good margin, economic cycle turning, what's not to like IMO? Why isn't it on a p/e of 15+?

[dashton42] 22/1/2014 08:01

Superb, positive trading update today. I searched, but couldn't find anything obviously negative. I'm sure I'll be corrected if I have that wrong though!

[zipstuck] 22/1/2014 07:55

not a buy until one off contract is replaced

[morph7] 07/1/2014 20:27

Thanks Dashton, I missed the article.Good write up all being said, happy days for cello and I.

[welsheagle] 17/12/2013 20:34

From November's 'Company Refs', when price was 69p:-
a/ Prospective PE ratio of 9.44 (based on three broker forecasts, all recommending 'buy').
b/ Positive cash flow per share of 5.15p.
c/ Positive gearing of 13.3%.
d/ Price to sales ratio of 0.40.
e/ Net cash per share of 4.42p.
f/ Net asset value per share of 79.9p.
g/ Two directors buying recently.
h/ Dividend yield of 3.45%.

[morph7] 28/11/2013 16:22

Yearly high. Here's TTY o hoping it stays above 70p.

[mo123] 08/11/2013 08:42

Marketing agency Cello Group (CLL.L) is set to grow as advertising budgets begin to swell again, according to Liberum.

Operating profits are up 15% in the first half, and the management have made positive noises about the outlook. However, consensus forecasts for the full year are pegged at just 6% growth.

'Given the current recovery in advertising and marketing spend reported by bigger players such as WPP and ITV, Cello looks attractively priced relative to its peers and significantly undervalued on its basic metrics,' the analysts note.

EPS forecast next year to Dec 2014 7.3p and P/E of 9.2. Mo

[morph7] 04/11/2013 12:02

Trying to take out the yearly high

[morph7] 18/9/2013 15:41

Only a small holding for myself. Price will have support from a decent dividend so to that end I will continue to hold for the medium term.

[interceptor2] 18/9/2013 13:08

The fall could be down to profit taking, I did sell my holdings at the open. Nothing wrong with the results, but I couldn't see a catalyst to move these higher in the short term.

I wish investors here all the best.

Regards ic2...

[coopstock] 18/9/2013 10:53

Some disappointment at flat performance of Health and cashflow not as strong as promised by last trading statement. Shame - I thought we were going to get another nice bump up today.

[pas100] 18/9/2013 10:27

Is the share price fall just profit taking?

[deadly] 18/9/2013 08:58

Excellent results. Should be strong from here on

· Revenue up 14.3% to £71.5m (2012: £62.6m)
· Gross profit up 7.9% to £34.4m (2012: £31.9m)
· Like-for-like1 gross profit growth of 4.7%
· Headline profit before tax2 up 11.0% to £3.5m (2012: £3.2m)
· Statutory operating profit up 9.0% to £2.1m (2012: £1.9m)
· Headline basic earnings per share up 5.2% to 3.05p (2012: 2.90p)
· Statutory basic earnings per share up 22.6% to 1.30p (2012: 1.06p)
· Interim dividend up 10.3% to 0.64p (2012: 0.58p)
· Successful acquisition of Mash Healthcare in January 2013

[cfro] 12/9/2013 13:16

Looking forward to the interims next week ic2.

Nice steady moves lately and still trading on a low single digit pe.

[interceptor2] 12/9/2013 12:57

Interims next Wednesday 18th September. A bit of interest today and share price has no resistance, so could see a run up here to results.

ic2...

[hpcg] 27/8/2013 13:51

I would have thought mainly advancing on relatively positive economic news which ought to open up both volumes and margins.

On the consumer side I think Cello sits comfortably in the trends of social media data and "big data" in general. From what I can tell their approach is not just to market but measure and analyse how the marketing functions. This should feedback into improved product design and offerings as well as better marketing. Very good article in the Economist this week about how Adidas have been doing this for a few years.
On the medical side US biopharma seems to be hot at the moment; share prices are rich but there are plenty of new product to go along with that. Some of these are snapped up by the big boys and some go it alone. Either way information about new treatments needs to get to the medical profession. This journey up the back of the patent cliff should provide a mass of opportunities for a company like Cello.

You can add to that the potential for re-rating, the ability to put in an ISA and maybe the carrot of a US listing as mooted pre-crisis and there are a lot of tail winds.

[interceptor2] 23/8/2013 16:00

Yes very good moves here and at PRES hpcg. I would imagine that after the positive trading update in July, investors are buying in ahead of the interim results, which are due 18th September.

I can't remember where I read a positive article about the sector that CLL are operating in this week, but it might have alerted some investors to take a look at this sector?

ic2...

[hpcg] 23/8/2013 15:38

Funny, I've been in here and PRES for a few years collecting dividends whilst the share price waned, waxed and the waned some more. Now they have both marched solidly forward. Finally some evidence that patience can pay.

[cfro] 23/8/2013 14:59

Hi ya coopstock!......just the sort of sharp rise we like. :-)

[dashton42] 23/8/2013 13:31

Yes, tasty 6% rise currently. It may lack the Abromovich-related excitement over on the CAP bb, but something seems to be going on here too...?