Cello’s research division, which makes up slightly less than half of the overall business, saw revenue fall 8% from £64.9m in 2008 to £59.8m in 2009. Headline operating profit for the research business was £5.6m, but after impairments including a goodwill write-down for SMT Consulting (acquired in 2006 ), the division reported an operating loss of £1.5m. This was compared to a profit in the previous year of £5.1m.

Group chief executive Mark Scott (pictured) described 2009 as “a demanding year”, but that it had made a “good start” to 2010.

Cello Group as a whole made a loss of £5.8m, compared to a profit of £4.2m in 2008. Headline operating profit, before deductions, was £5.9m, down 27% from £8.2m.

Non-executive chairman Allan Rich said the group has seen “strong revenue pipelines” in research and consulting. “The group is optimistic that the higher levels of client activity, particularly in the research sector, seen in the last quarter of 2009 and in the early months of 2010, will continue,” he said.