Cello Health Share Discussion Threads

[welsheagle] 22/5/2007 19:56

RNS Number:0306X Cello Group plc 22 May 2007

22 May 2007

Cello Group plc ("Cello")

AGM Statement

At the Annual General Meeting of Cello held today all the resolutions put to shareholders were passed.

In a trading update, Kevin Steeds, Chairman, said:

"Since the announcement of our preliminary results in March, the Group has continued to make good progress.

"Our research and consulting business, which represented approximately 75% of Group profits in 2006, continues to perform well and is gaining clear advantage from its scale. We expect our response business to be more heavily second half weighted than in the past, but given good revenue visibility we are confident about the full year outcome for this business and for the Group as a whole.

In addition we have strengthened our healthcare consulting offer with the addition of The MSI Consultancy and have invested in nqual, an online research company.

"We continue to invest in our existing portfolio of companies to accelerate their organic growth, including several new digital and online initiatives. In addition we are appraising a small number of exciting new opportunities in all areas of our operations that will further develop our capabilities and add shareholder value."

[tole] 22/5/2007 13:18

Nice AGM statement - well thats set it off again :)

[yf23_1] 17/5/2007 20:05

Its a people business - check the last final results.



Goodwill arising on the acquisition of businesses or subsidiary undertakings is
calculated as the excess of the fair value of the consideration given and costs
of acquisition over the fair value of the net assets acquired.

In accordance with FRS10 Goodwill and intangible assets, goodwill arising on
acquisitions is capitalised as an intangible fixed asset and amortised over its
estimated useful economic life. Each acquisition is assessed with reference to
its durability and ability to sustain long term profitability. Based on their
assessment of acquisitions made during the year, the directors are of the
opinion that the goodwill arising in respect of the acquisitions made during the
year is sufficiently durable that it has an indefinite economic life due, inter
alia, to the strength of its market position, its long term profitability
prospects, and the Group's ongoing commitment to maintain and enhance its value,
the goodwill arising on acquisition will therefore not be amortised.



In accordance with FRS10 and FRS11 Impairment of fixed assets and goodwill, the
carrying values of intangible fixed assets are reviewed annually for impairment
on the basis stipulated in FRS11 and adjusted to the recoverable amount if
required.



Where goodwill is treated as having indefinite economic life, in order to give a
true and fair view for the reasons outlined above, the financial statements
depart from the requirement of companies' legislation to amortise goodwill over
a finite period. Capitalised goodwill regarded as having indefinite useful
economic life amounted to #58,234,100 (2005 as restated: #47,423,211) as at 31
December 2006.

[welsheagle] 17/5/2007 19:36

davebowler
The NAV is not split up into costituents in 'Company Refs', but the last results would probably give the info.

[yf23_1] 17/5/2007 14:56

Rubber floats, nylon and bits of dolphin ?

[davebowler] 17/5/2007 14:04

Net asset value looks good-What is it made up of?

[welsheagle] 13/5/2007 19:43

From May's 'Company Refs', when price was 142p:-
a/ Prospective PE ratio of 11.5 (based on five broker forecasts, three recommending 'buy', and two recommending 'Hold').
b/ Forecast growth in eps of 25.9%.
c/ Positive cash flow per share of 15.6p.
d/ Net cash per share of 6.26p.
e/ Negative gearing of 4.2%.
f/ Price to sales ratio of 0.80
g/ Turnover up from £14.7m to £74.7m in two years.
h/ Net asset value per share of 140p.
i/ Three directors buying in last six months.

[tole] 27/4/2007 14:32

Directors' share dealings and share option grants

The Company was notified today that Mr. Kevin Steeds and Mr. Mark Scott, both
directors of the Company, each bought on 27th April 2007 5,000 ordinary shares
of 10 pence in the Company ("Ordinary Shares") at a price of 142 pence per
Ordinary Share. Following these purchases, Mr. Steeds' and Mr. Scott's
beneficial interests in the Company have both risen to 690,010 Ordinary Shares,
each representing 1.93 per cent. of the Company's total issued ordinary share
capital.

Further to the above Mark Scott also transferred on 27th April 2007 141,350
Ordinary Shares to his SIPP at a price of 141.5 pence per Ordinary Share. There
is no change to Mr. Scott's beneficial interest as a result of this transfer.

On 27th April, under the Cello Group Performance Share Plan ("PSP") Kevin Steeds
and Mark Scott were each granted matching awards of options entitling them to
acquire 5,000 ordinary shares of 10p at an exercise price of 10p per share as a
result of their having elected to receive an equal number of Cello shares in
lieu of a proportion of their cash bonuses, net of tax and national insurance.
These options will normally be exercisable from 27th April 2011 subject to
continued employment and ownership of the shares so acquired and the extent to
which performance conditions have been met.

[welsheagle] 20/3/2007 19:59

Evolution have reiterated a 'buy' recommendation, with a 165p target.

[tole] 20/3/2007 17:11

Yes agree - my short/mid term target over the last few months was 160p (post 85)but as they say sector average nearer 18 so plenty to go for still.

[moogies] 20/3/2007 16:46

Thanks for the links Tole.

Looks very cheap with a PEr of 11 and with a price target of £1.65. All looks well, although I think that price target could be a little on the conservative side.

M.

[tole] 20/3/2007 16:32

Write up on Citywire today

[tole] 20/3/2007 11:21

20-Mar-07
Panmure Gordon reiterates buy for Cello Group raising target to 155p from 140p

[tole] 20/3/2007 09:55

Nice rise here today as expected. Good to see a nice confident forward statement too.

[moogies] 20/3/2007 09:27

Date: Tuesday 20 Mar 2007

LONDON (ShareCast) - Strong growth from its core businesses helped marketing services group Cello post a big rise in profits last year with the company confident about prospects in 2007.

"We start 2007 with real momentum. A healthy level of revenue visibility, combined with a strong balance sheet, will enable us to further invest for future growth," chairman Kevin Steeds said.

Profits jumped from £3m in 2005 to £4.2m in 2006, on sales up 44% at £74.7m. Headline profits jumped by 40% to £5.9m.

By division, market research returned profits of £3.5m, up from £2m, with healthcare and consumer research very strong. Consulting rose to £2m from £1.6m while digital, direct marketing and data rose from £1.5m to £1.8m.

Cello added it intends to build on its core research services, in both quantitative and qualitative areas in the UK and to aggressively build its consulting capability.

A final dividend of 0.6p gives a total for the year of 1p.

[welsheagle] 20/3/2007 08:02

LONDON (AFX) - Cello Group PLC posted a 40 pct increase in full-year pretax
profits driven by organic growth and said 2007 has begun with "real momentum".
The financial services company reported headline pretax profit of 5.9 mln
stg compared with 4.2 mln stg a year earlier, while turnover rose to 74.7 mln
stg from 52.1 mln stg.
Cello proposed a final dividend of 0.6 pence a share, giving a total
dividend of 1.0 pence a share.
Altium had forecast pretax profit of 6.1 mln stg for year to December and a
dividend of 1.0 pence a share.

[glasshalfull] 20/3/2007 07:54

Look good to me too!

Regards,
GHF

[welsheagle] 20/3/2007 07:41

Results overall look very good - Low PE, growth, strong cashflow and now a dividend.

[moogies] 20/3/2007 07:34

Cello Group plc
20 March 2007


20 March 2007


Cello Group plc


Organic growth drives profits up 40%


Cello Group plc ("Cello", AIM: CLL), the market research and consulting group,
today announces its preliminary audited results for the year to 31 December
2006.



• Turnover up 43% to £74.7m (2005: £52.1m)

• Gross profit up 46% to £38.8m (2005: £26.6m)

• Headline profit before tax up 40% to £5.9m (2005: £4.2m)

• Like-for-like gross profit growth of 16%

• Like-for-like operating profit growth of 27%

• Basic headline earnings per share up 28% to 12.57p (2005: 9.83p)

• Operating cash flow conversion strong at 91%

• Net debt of £1.1m (2005: cash: £1.9m)

• Full year dividend in 2006 of 1p (2005: nil)

• Acquisition of SMT in September boosts consulting capability

• Organic growth supplemented by profitable digital start-ups (Blonde/Oomph)

• Encouraging start to and good forward visibility for 2007



Kevin Steeds, Chairman, commented:



"These results represent a substantial step forward in scale for us as a public
company. Our position and focus is clear. Over 75% of our group is in research
and consulting, which is where we are experiencing high levels of organic
growth.



"We start 2007 with real momentum. A healthy level of revenue visibility,
combined with a strong balance sheet, will enable us to further invest for
future growth."

[tole] 16/3/2007 19:54

Thanks Welsheagle - nothing new in their March update in their monthly stock review - still highlighting it as a BUY as you say and mentioning Cello's focused 3 main marketing areas alongside it's strategy of developing businesses with sustainable repeat revenues should "ensure it is well placed to benefit from changing patterns in marketing spend and fuel attractive medium term earnings growth".

Results tuesday :)

[welsheagle] 16/3/2007 19:24

Altium Capital have reiterated their 'buy' recommendation with a target price of 148p.

[tole] 13/3/2007 14:41

Could be a possibility - though as of the aquistion in Sept 06 Cello entered into a new #12 million committed three year banking facility. So funds in place.

And as stated in their update-

"In 2007 the Group will continue its stated strategy of focussed expansion both
organically and by acquisition. We are currently assessing a number of earnings
enhancing opportunities in our key areas of specialism."

So should be able to finance further aquistions from this banking facility since mentioning 'a number of opportunities' would indicate more on the cards.

[holgerl] 13/3/2007 14:26

Placing Imminent imho. Thats why the share has been yanked up.

[tole] 13/3/2007 14:24

Relation to level 2 prices.
1 MM on the offer price 138
1 MM on the bid price 135

[its the oxman] 13/3/2007 14:05

means you have penalties after full time.