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Cello Health makes strong start to year, shareholders told
Healthcare-focused advisory group Cello Health told shareholders it had made a strong start to the year on Wednesday, as they met for the company's annual general meeting.
The AIM-traded firm - known until late last month as Cello Group - said that strength looked set to continue into the second quarter, based on current visibility.
Chairman Allan Rich said that, at an operating level, Cello Health had a "robust" first quarter with good revenue growth and profit performance from Cello Health Insight and Cello Health Consulting, as well as strong results from its Cello Health Communications business in the US.
"Cello Signal has also made a good start to the year, with solid operating profit performance, helped by the restructuring of the US operations in 2017," Rich told investors.
"Signal's health communications activity has got off to a quick start to the year with several significant project wins and a good pipeline of future opportunities."
The group's balance sheet remained strong, the meeting was told, with good cash conversion so far in 2018.
It continued to assess suitable acquisitions in line with its strategic objective of further growing the Cello Health brand in the US.
"As announced on 26 April, the name of the group has changed to Cello Health to better reflect the primary strategic focus of the business on the healthcare sector," Rich explained.
"The group's markets in healthcare are large and attractive, and our position is underlined by the fact that we already work with 24 of the top 25 pharmaceutical companies globally."
Following a long period of service to the group, Rich also confirmed that two non-executive directors - Paul Hamilton and Will David - had declared their intentions to retire from the board during 2018.
"The group has commenced a search process for appropriate replacement non-executive directors and will make further announcements in due course.
"The board is confident of achieving a successful result in 2018."