UPDATE 1-Huntsworth sees in-line H1; buys healthcare PR firm

Mon Jul 13, 2009 3:17am EDT
 
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* Buys Tonic Life Communications for an initial 3 mln stg

* Says may make deferred payments based on profit growth

* Confident of full-year results

(Adds details)

July 13 (Reuters) - British public-relations company Huntsworth Plc (HNTS.L) acquired healthcare public relations firm Tonic Life Communications Ltd for an initial 3 million pounds ($4.84 million) in cash, and also said it expected to meet first-half profit forecasts.

The company said on Monday it was confident of its full-year results, with 86 percent of forecast revenue committed for 2009.

"This acquisition significantly expands the Huntsworth Health PR operations in the UK and adds to the existing PR division of Dorland in the US," the company said in a statement.

Huntsworth said it may make an interim deferred payment based on the profits for the two years to June 30 2011, and a final payment based on the profits for the four years to June 30, 2013.

The maximum total consideration of about 12.5 million pounds would require profit growth of over 40 percent per annum over the 2009 base, the company said.

Huntsworth shares closed at 57 pence on Friday.

($1=.6200 Pound) (Reporting by Balachander Surianarayanan in Bangalore; Editing by Kavita Chandran)

 

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