U.K.-based Huntsworth reported a mixed bag of earnings for the first half of 2011, ending June 30. Revenue for the company was up compared to 2010, from £87 million to £88.1 million (about $143.4 million according to today’s currency exchange). However, operating profits were down year-over-year, from £13.6 million for the first half of 2010 to £11.5 million ($18.7 million).
In a statement, CEO Peter Chadlington said that changes across the business landscape (the importance of digital, the global nature of the work) along with the longer procurement process were big factors in the results. The company expects to reach its goal of seven percent like-for-like revenue growth rate for the year, but big account wins announced at the end of 2010 won’t make a financial impact until the beginning of 2012.
“When we reported our 2010 results in March this year, we indicated that such account wins were taking a long time to come on stream and we therefore expected revenues to be second half weighted,” he said. “This has indeed proved to be the case due to the lengthy procurement processes of our clients and the effect of the current economic environment delaying decision making.”
Huntsworth is home to Grayling, which won the British Airways account for 38 countries, and an international DHL contract this year, Citigate, and Red. Grayling contributed 49 percent of the company’s revenue, with like-for-like revenue growth at 2.6 percent. Other clients include Wonderful Pistachios, Google, and Audi in the Middle East.
Huntsworth Health contributed 29 percent of revenue with like-for-like growth at 2.1 percent, and Citigate, which generated 68 percent of its earnings out of its London office, came in third with 15 percent of group revenue, but a like-for-like revenue decline of 2.5 percent.
You can read more about Huntsworth’s earnings here.
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