Cello figures to be ‘at low end of expectations'

UK-- Cello Group has warned that its 2008 results “will be at the lower end of market expectations” when they are released at the end of March.

In a year-end update, the research and consulting group said trading had “tightened” in certain geographical areas, but that it was expecting to report net debt of less than £10.5m – “significantly” below consensus expectations.

Looking ahead, Cello said “numerous” clients had indicated they would maintain their current spending levels, while public sector clients were providing “refreshed levels of spend”.

However, the group said it remains “realistically cautious” about the current outlook given the wider economic situation. The recession has already prompted a rethink of its acquisition plans.

Cello – which owns MR agencies Insight Research Group, Leapfrog and RS Consulting – said it had saved more than £2m through a round of job cuts during 2008 as part of a plan to reduce costs. A spokesman told Research the cuts “took place on a selective basis across both our Cello Research and Tangible businesses” but declined to give an exact number.

Meanwhile, Allan Rich has been appointed non-executive chairman of the group following the death of Kevin Steeds last month.

Author: James Verrinder