Hasgrove

In spite of economic slowdown, European marketing and communications specialist Hasgrove has reassured with an update for the half to June.

Though the deferral of spending by clients resulted in ‘a slower start than last year’, business picked up in the second quarter and Hasgrove says it is now gaining momentum following ‘a number of notable new business wins’ in May and June.

As a result, Hasgrove, guided by CEO Rod Hyde and with operations spanning public affairs and corporate communications as well as high growth digital marketing, now predicts a much stronger second-half. This should enable it to meet full year forecasts of an adjusted pre-tax profit of £4.4m and earnings of 14.7p.

Set to unveil interim figures in September, Hasgrove highlighted likely first half gross income of around £13.2m, slightly north of £13.1m in 2008, though boosted by currency benefits. Operating profits, before cost cutting charges, will be lower at £1.5m (2008: £2.5m), though following a half of keen cost and cash management, Hasgrove pared net debt to £5.4m (2008: £7.5m).

Thanks to its diversity, geographically and in terms of discipline, Hasgrove delivered robust growth in 2008, growing its top line 68% to £36.5m. Trading on less than five times this year’s forecast earnings, the shares, originally recommended by Growth Company Investor at 144p in 2007 and lowered from their 105p 52-week peak, are well worth holding for recovery.