Huntsworth share price spikes 13pc on Lord Chadlington stepping down and fall in profit
Huntsworth saw its share price spike this morning after chief executive Lord Chadlington announced his departure from the communication group behind Citigate and Grayling.
Shares opened five per cent up, peaking 13 per cent higher this morning, as Chadlington said he would be stepping down after a successor is appointed.
The firm also reported a fall in pre-tax profits of 27 per cent to £7.7m for the first half of the year, compared to £10.6m in the same period in 2013.
Like-for-like revenue also declined almost two per cent as Europe and the UK continued to underperform for the group, however digital revenue grew 18 per cent and markets outside Europe posted revenue growth – 13 per cent in the Middle East and Asia Pacific and four per cent in the US.
A slow first quarter in the UK M&A market hit financial PR agency Citigate as revenue fell eight per cent. Revenue at global PR firm Grayling also fell nearly five per cent and consumer agency Red Consultancy by eight per cent while healthcare comms agency Huntsworth Health was up seven per cent.
Chadlington’s departure follows a pay revolt by shareholders in June and a warning that first-half results would be below expectations.
The Conservative peer said of his departure: “It has been my intention for some while to stand down and I am delighted that I will do so just as the economies of the world are turning for the better and that we have a management team which will make the most of this all-important investment plan which is now well under way.”
Huntsworth has struggled recently but said it expects a return to growth in the second half of the year and 2015.
“While the pace of these increases in the first half has been slower than we hoped, we are making some good progress, which we expect will continue in the second half and accelerate in 2015,” said Chadlington.