Citigate hit by poor economic conditions in the UK and Europe
Huntsworth has reported a more than 17% slump in revenues at its financial PR division, Citigate, but said that thanks to cost-cutting it expects profits for the year to be "significantly" ahead of 2011 levels.
The PR and healthcare group said revenues in the third quarter have been hit by poor economic conditions in the UK and Europe, which accounts for 60% of total revenues.
PR subsidiary Grayling, which has clients including Google, National Grid and the EU commission and accounts for almost half of Huntsworth's revenues, saw revenues fall 7.6%
Its PR consultancy Red reported "excellent" revenue growth of 11.4% while Huntsworth Health lifted revenues 6.8%.
Huntsworth said total group revenues grew 3.6%, this is a significant drop from the 7% reported for the same period last year.
"Huntsworth Health showed strong revenue growth in the third quarter with no sign of the downturn which affected the fourth quarter and Red continued to show excellent revenue growth," said Sally Withey, chief operating officer and finance director.
"In Grayling, new multi-office business could not offset a further slowdown in the third quarter 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."
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