Pharma focus delivers ‘solid’ 2011 performance for Cello

This came against what the firm called “a challenging client backdrop” including the loss of a major retail client early in the year, while a smaller retail client, DIY chain Focus, went out of business.

In the first half the firm saw a rise in profits but a 1.3% drop in revenue, and today it revealed that it subsequently took a £0.9m hit – more than the £0.5m it had been expecting – as it reduced staff and closed down some operations. The firm did not disclose how many staff had been affected.

But Cello said that its focus on the pharmaceutical sector had paid off, with pharma now accounting for more than 45% of its research and consulting revenue. Pharma work led to “above average growth and profit margins” compared to the rest of Cello’s research and consulting businesses, which include Leapfrog, Insight Research Group, RS Consulting, MSI, The Value Engineers, 2CV and Face.

The group, led by CEO Mark Scott (pictured), said its decision to focus on increasing its work outside the UK had also paid off, with sales in the US accounting for more than 10% of revenue, and the establishment of a new office in Singapore.

Cello said it was “optimistic for a solid outcome” in 2012.