Public relations and healthcare communications specialist, Huntsworth, says cancellation of contracts in the final three months of 2011 reduced full year revenues and profits.
Group revenues rose by 1.5% to £176.3m versus £173.6m in 2010. The consensus expectation was £177.87m.
Operating profits after central costs fell by 20.6% to £23.5m (2010: £29.6m).
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Profits before tax came in at £19.1m, slightly ahead of expectations of £19.04m, but exceptional charges reduced the reported figure to £10.6m.
Earnings per share after the exceptional items was 3.9p against expectations of 6.2p (discounting the exceptionals, earnings per share was in line with expectations).
The full year dividend will be 3.5p, just short of the forecast of 3.52p.
Peter Chadlington, Chief Executive of Huntsworth, said: "Management has taken action to reduce the cost base across the group, as well as make it more flexible and better able to match clients' requirements and spending patterns."
He added: "In the current year, we anticipate first quarter like-for-like revenue growth of 3.0% and about one quarter of 2012 budgeted profits to be earned in Q1 [the first quarter] - a significantly higher proportion than in previous years. The group's new business pipeline is strong and we expect the improvement in profitability to be maintained both in the first half and for the year as a whole."
Shares in Huntsworth had dropped 4% by 08:41. Since the start of the year the group has risen 37% although it is still 32% down over the last 12 months.
BS
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