Hasgrove upbeat despite public sector decline
NORTH West marketing and communications group Hasgrove expects post higher full-year sales and profits, despite a fall in its earnings from the public sector.
The AIM-listed Manchester firm behind Amaze PR, design agency The Chase and lobbying firm Interel said in a trading update for 2010 that it expects gross income to rise from £26.8m to £28.5m and pre-exceptional earnings to £3.5m from £2.9m the year before.
Chief executive Rod Hyde said: “We have made substantial progress over the last year. Despite the UK public sector cuts, our profits have grown by approximately 20% to £3.5m.
“Sales pipelines continue to be healthy and our conversion rates are good. Investment in our businesses and offerings are already starting to pay off and we are increasingly optimistic about our prospects in 2011.”
The bullish tone came despite some delays in client decision-making during the final quarter of 2010. Despite this, the work has now come in, but too late for the 2010 financial year.
Hasgrove said: “The majority of the delayed contracts have now either been converted or approved but the revenue and profit could not be reflected in the 2010 results.
“The operating profit attributable to these contracts was approximately £350,000. The group continues to attract high quality opportunities and the pipeline is strong.”
The company said there would be an exceptional charge of £970,000 relating to restructuring. This process included six office moves to bring a number of business units together. It will report its full year figures in April.
