Hasgrove upbeat despite uncertain market

HASGROVE, the AIM listed lobbying, PR, digital and marketing group expects to report improved first half income and operating profits amid “unpredictable” trading conditions.

The Manchester-based company, the name behind the Amaze, Odyssey Interactive and The Chase media brands and the Interel public affairs group, said its is generally confident despite public sector cuts starting to be felt.

Chief executive Rod Hyde said: Rod Hyde, Group Chief Executive, said:  “The range and size of the opportunities continue to rise with encouraging conversion rates.

“We are pitching now for a number of substantial projects in our digital, creative and corporate communications businesses and it is clear that our companies are well suited to modern communication needs.

“The impact of UK public spending cuts is now being felt in the general marketplace and this mismatch of demand compared to the private sector makes it difficult to make accurate short term financial predictions. 

“However, we are increasingly confident of seeing healthy growth.” 

In a trading update for the six months to the end of June Hasgrove said it expects to report gross income of around £14.1m, up from  £13.2m last year.
Pre-exceptional operating profits will come in at 1.72m, against £1.45m in 2009.

Despite unpredictable market conditions, annualised new business wins in the first half amount to £4m -broadly double that of in the same period last year.

“Project delays and cancellations are much less of an issue than 2009. However, revenue volatility is still a factor particularly in relation to the public sector,” the group added.

Hasgrove flagged up a £410,000 exceptional charge, which it said was the result of cost base reductions in the first half. Net debt was cut from £6.5m at the end of December to £5.9m at June 30.

The company will announce its half-year figures at the end of September.