NEWS11 July 2012

Cello says research re-organisation cost £600k

Financials UK

UK— The re-organisation of Cello’s research division – which saw Leapfrog’s Windsor HQ shut down and the agency move in with sister company RS Consulting – is set to cost the marketing services group approximately £600,000, the company revealed today.

In a trading update for the six months to 30 June 2012, the company said action was taken to consolidate operations and exit some of its leases as “non-pharmaceutical research activity suffered from an industry wide slow-down in client spend”.

Job losses formed part of the actions that were taken “to reverse the deterioration in performance”.

Leapfrog Research managing director Tim Brooks is known to have left the company after the move to RS Consulting’s offices in Battersea was agreed.

In addition to these moves, Cello says it is also aligning its various business under a new structure which divides the group into Cello Health and Cello Consumer. Businesses were previously managed along ‘research and consulting’ and ‘communications services’ lines.

Cello chief executive Mark Scott (pictured) said: “Cello’s strategy of focusing on the pharmaceutical sector with high-value advisory services continues to bear fruit. The reorganisation of the group behind this strategy will further galvanise our leadership position in this area. The group will continue to invest behind increasing its exposure to international client markets as a primary driver of growth, both in the pharmaceutical and other high margin client sectors.”

The group will announce its full interim results on 19 September.