Huntsworth’s health division showed strong revenue growth for the third quarter, despite overall group pre-tax profits underwhelming.
The UK-based PR and communications group saw a 3.6 per cent decline in profits for the third quarter; with a 17.2 per cent drop in Citigate revenue and a 7.6 per cent drop in Grayling revenue.
Huntsworth Health and The Red Consultancy, however, bucked the trend with growth of 6.8 per cent and 11.4 per cent, respectively.
Like other marketing services companies, the group’s Q3 revenues were adversely affected by the economic conditions in the UK and Europe and by the downturn in financial and corporate activities in the UK financial markets.
“Huntsworth Health showed strong revenue growth in Q3 with no sign of the downturn which affected Q4 2011 and Red continued to show excellent revenue growth,” said Sally Withey, chief operating officer at Huntsworth.
“In Grayling, new multi-office business could not offset a further slowdown in Q3 across the Eurozone. In Citigate, revenues in Europe and the Far East showed some growth but the division was held back in London by the continuing lack of activity in the UK financial markets.
“Whilst revenues in the third quarter were softer than anticipated, costs have been controlled and we therefore expect to show a significant improvement in profitability for calendar 2012,” she said.