Huntsworth Share Discussion Threads

[whealan] 20/2/2006 10:07

Markie7
Thanks. I'm with you. So it was just a reported broker's note. Don't take the D.M. myself but 25 buys this am and not a single sell so far. Can there be that many intelligent D.M. readers??

[its the oxman] 20/2/2006 10:04

shares rebounding - so hopefully the start of the next leg up

[oniabsta] 20/2/2006 09:31

Altium capital also have these as a strong buy with 130p price trgt

[markie7] 20/2/2006 09:12

no - they have had them as a buy right since appointment - at one stage target price 150

[whealan] 19/2/2006 21:35

Welsheagle/Markie7
Am I right in thinking it is the first time Numis have done that since they were appointed a year or two ago?

[markie7] 19/2/2006 19:28

Numis - house broker.

[welsheagle] 18/2/2006 20:26

Mentioned in the 'Brokers buy' section of the Daily Mail today (recommended by Numis).

[whealan] 17/2/2006 13:12

About 12% of the company has changed hands in the last couple of days and quite a lot more recently. At least it is getting on to the radar.

[oniabsta] 16/2/2006 15:05

Well, Aberforth partners seem to have faith as does their smaller companies inv trust

They have announced an increase from 12.24% to 15.62% (partners + 2m shs)
and the sm co's trust from 5.55% to 6% today

[welsheagle] 16/2/2006 07:59

RNS Number:4690Y
Huntsworth PLC
16 February 2006

HUNTSWORTH PLC



16 February 2005



Huntsworth adds French PR consultancy Eurotandem to European network



Huntsworth PLC ("Huntsworth"), the international public relations group, has
acquired Eurotandem SAS, a leading independent public relations consultancy
based in Paris. This is a further step in the strategic development of the group
in Europe, emphasising Huntsworth's commitment to offering its clients an
integrated range of communications services. After acquisition, Eurotandem's
operations will be merged with those of Trimedia France.



Eurotandem was founded in 1990 and employs a team of 25 offering corporate,
technology and consumer public relations. Current clients include BT, Ask
Jeeves, Opodo, Computacenter and Tourism Australia together with other blue chip
names.



For the year ended 31 December 2004, Eurotandem had gross revenues of Euro2.7
million (#1.9 million) and profit before taxation of Euro1.0 million (#0.7
million). Gross assets as at 31 December 2004 were Euro1.8 million (#1.2 million).



Huntsworth will acquire the entire share capital of the company for an initial
consideration comprising cash of Euro4,064,675 (#2.8m) and the issue of 1,469,455
new ordinary shares of 50p each in HuntsworthHHH. Further consideration is
dependent on the future financial performance of Eurotandem and will be payable
in cash or shares, at Huntsworth's sole discretion. The maximum total
consideration payable is Euro8.65 million (#6.0 million).



Michael Murphy, Chief Executive Officer of Trimedia International, said:



"Trimedia France has been performing very well but we did not have sufficient
scale in the important French market place compared with our operations in other
European countries. The combination of Trimedia France and Eurotandem will take
us immediately to the number five position in the French market place".



Huntsworth also operates in France separately under the Citigate Dewe Rogerson
brand.



Under the terms of the UKLA listing rules, the Eurotandem acquisition is a Class
2 transaction not requiring shareholder approval. Application to the UK Listing
Authority and to the London Stock Exchange is being made today for the admission
of these shares to trading on the Official List of the London Stock Exchange.
Dealings are expected to commence on 22 February 2006.

[markie7] 15/2/2006 17:18

off 2% on the day.

Its worth contrasting the difference between the interim statement (and how CSV is doing brilliantly) - with the detail of the announcement today and how it now "doesn't fit" in Huntsworth....

Basically HNT have had a gun put to their head, and are getting the paltry consideration over 4 yrs, with virtually nothing up front. It will be interesting to see what example this deal sets to the other agencies in the group.

[jimcar] 15/2/2006 12:43

I would think it's just some profit taking. These are up 10% since early Feb and the newsflow is likely to slow again.

[its the oxman] 15/2/2006 12:19

markie7 - not looking for unjustifiable bullishness myself - your comments were well worth making - just hope its all about the future now for hnt. anyway for the moment the share price is coming off so you may yet be proved right. good luck.

[markie7] 15/2/2006 11:43

Bulletin Boards are naturally bullish. It's interesting that any negative poster is always accused of having an "agenda"; or "motive" - whereas any positive poster is always cheered on!

A final thought on this - much reference has been made to the quality of retained income in todays statement. The reality of PR spend is that it is discretionary, and contracts are often on 3 months notice. If spend contracts, or there is a fall in confidence for some reason, then those retainers simply get cancelled, and thats that.

[whealan] 15/2/2006 11:34

Markie7
And after holding since the Holmes and Marchant days, let's hope it's the right way!

[markie7] 15/2/2006 11:25

good post - thats one way of looking at it.

[whealan] 15/2/2006 11:17

Markie7
You sound as if you are a disgruntled ex-Incepta shareholder. The previous two posters are right. The entire process during last year has been aimed at creating a sizeable PR group through acquisition which is what has been achieved. Sure, some of the comments in the disposal announcement are looking on the bright side of things but in a people business full of self-styled prima donnas who think they own the clients, if that is the only bit which flies off in a takeover I think they have done well. I know, I did three major people business "mergers" myself in my days in the City and they are, in the words of our late Chairman, like "walking on a tightrope made of thin ice" and, I should add, of inflated egos.
The trading statement is more or less what I expected. When I see the detailed 2005 figures I shall be looking at the sustainability of the underlying continuing businesses and cash flow and ignoring the IFRS and restructuring charges. When (not imho if) this business is taken over by a larger international group bear in mind that a very large chunk of its overheads will disappear and it is therefore the revenues and marginal additional profit which will form the basis for the effective purchase price, with the advantage accruing to both parties.
I personally think that the group is almost in shape for this, once it has settled down. ADYOR IMHO etc etc

[spooky] 15/2/2006 10:43

Markie7 - I'm not sure what your objective is here but you begin to worry me.The non PR businesses are historic so forget about them.The statement on savings and debt are very positive.The business they have sold is not their premier business,as you can see it's profits have more or less halved over the last three years,the price achieved is possibly half what one might have expected but in reality it is more like two thirds.The market is focussed on 2006 not 2005.

[its the oxman] 15/2/2006 10:16

understand your points but for me, end of this rationalisation process is positive going forward (although yes it is a shame hnt negotiating position on citygate sale couldn't have been stronger) and outlook for continuing businesses is good. so depends what you want to focus on. also i think market was already aware businesses being sold were underperforming and more cost savings is a positive - so ok a mixed bag and hnt share price performance has had me frustrated but lets wait and see if share price gets spooked - i'm still hopeful it will hold up and move ahead on the back of all of this and general prospects for the good quality continuing businesses which also make hnt a tastier takeout target.
time will tell.

[markie7] 15/2/2006 09:42

Also - the statement says that PR businesses are "slightly ahead" of expectations, but the non PR businesses that were sold were behind by £2.5m.

So - all in all - a veiled profit warning?

[markie7] 15/2/2006 09:38

The fact that they have been forced to sell their premier business to management for an absurd knock down price doesn't spook you then?

[its the oxman] 15/2/2006 09:36

update all looks pretty positive - nothing to spook the market and with the group making good progress hopefully the share price will do the same.

[welsheagle] 15/2/2006 08:56

RNS Number:4271Y
Huntsworth PLC
15 February 2006

15 February 2006



HUNTSWORTH PLC

Trading update

Huntsworth, the international public relations group, today issues its trading
update for the twelve months to 31 December 2005.

Highlights

* Transformational year for the group successfully completed with
strategy unchanged

* Continuing businesses performing slightly ahead of market
expectations

* Continuing public relations operating margins, before central costs,
close to 19%

* Cost savings of #5 million expected for a full year, well in excess
of the #2.5 million estimated at the time of the merger

* Net debt significantly reduced to #23 million (2005 peak over #80m)

* Proposed final dividend of 1.2p, giving an increased total dividend
to all shareholders

* In the period prior to disposal in November, Marketing Services and
Advertising division profits were some #2.5 million behind market expectations

* Disposal of Citigate Sard Verbinnen to its management team sees end
of post-merger disposal programme


Jon Foulds, Chairman of Huntsworth, commented: "Shareholders who have supported
our corporate strategy so far have welcomed the steps we have taken to focus the
enlarged business, improve margins, reduce debt and increase total dividends.
Huntsworth now has manageable and falling debt levels and limited earn-out
liabilities, which, coupled with predictable annual fee revenues, should allow
the Group to achieve good organic growth, positive cash flows and a strong
profit stream in the years ahead. "

Preliminary results for the year to 31 December 2005 will be reported in the
third week of April.

For further enquiries, please contact:

Huntsworth plc
Lord Chadlington, Chief Executive Tel: [phone]
Roger Selman, Finance Director Tel: [phone]

Citigate Dewe Rogerson
Patrick Toyne Sewell Tel: [phone]


Strategy

Huntsworth's strategy, which is to build an international public relations group
alongside a broader healthcare communications offering, has been pursued
rigorously during a year of transformational change for the Group.

Each of the Huntsworth companies has undergone detailed review and only those
which meet the Group's stringent strategic and tactical objectives have been
retained to drive its long term future.

This strategic review led to the sale of the Group's Marketing Services and
Advertising division to Media Square for #55 million in cash in November last
year. A number of smaller, non-core businesses have also been, or will soon be,
closed, merged or sold. The managements of these companies have been informed
and are co-operating in the process. The final disposal in the refocusing of the
Group following the merger of Huntsworth and Incepta, that of Citigate Sard
Verbinnen to its management team, is also announced today.

Operational performance

The Group's continuing public relations businesses have achieved good organic
growth, strong margins and excellent new business success. These on-going
businesses are expected to perform slightly ahead of market forecasts in 2005,
before IFRS and exceptional items.

Organic growth in those continuing public relations businesses exceeded 3% in
the year with operating margins, before head office costs, of almost 19%, very
close to the 20% margins the Board has established as its medium-term target.

Outstanding contributions were made in the UK by the Independent Brands Group,
particularly Grayling and Red, while there was also a return to good profits
from Harrison Cowley, the UK regional consultancy. In the financial sector the
Citigate companies performed very well as did Hudson Sandler.

Heavy investment in people across the Healthcare division reduced operating
profits but, as a result of that investment, strong new business and margin
performance is expected in 2006.

The European business, Trimedia, is now achieving very strong profitability,
particularly from some of the Incepta businesses in Continental Europe which
have made a significant contribution in the second half. Trimedia should reach
the Group's target operating margin of 20% in 2006.

Across all the Group's companies new business has been strong and includes new
clients such as: the AA; Absolut Vodka; Altana Pharma; Baxter Healthcare; Biogen
Idec UK; Dyson; New Star Asset Management; QinetiQ; and Typhoo Tea.

Additional work has been awarded to the Group from existing clients such as: itv
plc; Logica CMG; Macquarie Bank; Nescafe; Nike; Novartis; Pfizer; Premier Foods'
Branston brands; Sanofi-Aventis; Skandia; and Telefonica.

Around 70% of the Group's on-going public relations revenues are now either
under annual contract or regular repeat business, an important strategic
strength of the business.

Going forward, 50% of revenues from the Group's continuing businesses are now
generated in the UK, 30% in Continental Europe and 20% in the Rest of the World.
Around 38% of this revenue stream is in financial and public affairs; 53% in
full service/consumer; with the balance in health care.

As indicated at the interim stage, the Group's Marketing Services and
Advertising division continued to trade poorly in the period prior to its
disposal in November. We expect these companies' profits to be some #2.5 million
behind market expectations for the period up to divestment, before accounting
for the disposal.

Cost management

Following the completion of the strategic review, costs at head office, regional
and company levels have all been further reduced. The integration savings are
expected to reach at least #5 million during a full financial year, compared to
the #2.5 million forecast at the time of the merger. We expect to contain
central costs to around #5.5 million in 2006.

Financial and treasury

The Group's cash performance has been strong in the second half, resulting in
net debt of around #23 million at 31 December, following the sale to Media
Square. This is significantly better than forecast at the interims and well
below the Group's borrowing peak of over #80 million in 2005.

The Group's bank facilities, with Lloyds TSB Bank and The Royal Bank of
Scotland, total #60 million, available until April 2008. Huntsworth has
protected its US dollar and Euro earnings for 2006 by entering into hedging
arrangements.

The tax rate for 2005 is expected to be around 25%, rising to an estimated 30%
in 2006.

Earn-outs are now, in aggregate, estimated at less than #9 million payable over
the next three years, mainly in shares or cash at Huntsworth's option.

The Board intends to propose a final dividend of 1.2p, with a scrip alternative,
which provides an increased total dividend to all shareholders.

Disposals

In the next few days shareholders will receive a circular regarding the disposal
of Citigate Sard Verbinnen ("CSV") to its management for a total cash
consideration of up to $20 million.

Until the end of the purchase period, which may continue until 31 December 2009,
Huntsworth will receive a share of the CSV earnings stream. By then, Huntsworth
anticipates that the growth of its other US financial, public affairs and
corporate businesses, particularly Global Consulting Group and Rose and Kindel,
will more than offset any future lost profit stream from CSV.

A detailed announcement concerning the sale has been issued simultaneously with
this trading statement.

The disposal of CSV marks the end of the integration process of Huntsworth and
Incepta. While there will be some minor rationalisation of our structure during
the spring and early summer, Huntsworth expects there to be no further
significant sales of Group companies.

Outlook

Jon Foulds, Chairman of Huntsworth, commented: "Shareholders who have supported
our corporate strategy so far have welcomed the steps we have taken to focus the
enlarged business, improve margins, reduce debt and increase total dividends.
Huntsworth now has manageable and falling debt levels and limited earn-out
liabilities, which, coupled with predictable annual fee revenues, should allow
the Group to achieve good organic growth, positive cash flows and a strong
profit stream in the years ahead. "

[welsheagle] 15/2/2006 08:54

Huntsworth says continuing ops performing slightly ahead of mkt expectations

LONDON (AFX) - Huntsworth PLC, an international public relations group, said
its continuing operations are performing slightly ahead of market expectations.
In a trading update for the twelve months to Dec 31 2005 the group said it
will be proposing a final dividend of 1.2 pence for an increased total payout
when it releases full year results in the third week of April.
The company also predicts cost savings of 5 mln stg for a full year, well in
excess of the 2.5 mln estimated at the time of the merger with Incepta.
Since the merger, the enlarged group has been conducting a disposal
programme and it also announced today that it has sold Citigate Sard Verbinnen
("CSV") to its management for up to 20 mln usd in cash. This sees an end of the
post-merger disposal programme.
Chairman Jon Foulds said Huntsworth now has manageable and falling debt
levels and limited earn-out liabilities, which, coupled with predictable annual
fee revenues, should allow the group to achieve good organic growth, positive
cash flows and a strong profit stream in the years ahead.

[its the oxman] 14/2/2006 11:08

chart picking up at last - would be nice to push through 100p