Chime Thrives Despite Poor Research Performance

UK-based marketing services group Chime Communications Plc has reported its 'best results ever', with full-year profit up 14% to £18.8m; despite a continued 'very disappointing' performance by its research division, where only Facts International is said to have done well.

The completion of the acquisition of researcher Tree was also announced today along with a successful placing to raise £4.5 million.

Chairman Lord Bell said the group had outperformed the market and its competitors in 2008 and again in 2009. 'These are our best results ever and we are very pleased and delighted. We have made three acquisitions, controlled costs and strengthened our existing business. 2010 has started well and we are cautiously optimistic for the outcome of the full year.'

The Research Division, which in addition to Facts International includes Opinion Leader, Ledbury, Naked Eye and digital platform Caucus World, saw operating income of £5.8m, down 17% from £7.0m in 2008, with an operating loss of (£0.2m) replacing operating profit of £0.4m in 2008. As a result, it contributed only 5% of the Group's income (down from 6% in 2008). Of the other divisions, PR contributed 54% in 2009, Advertising and Marketing Services 27% and Sports Marketing 14% - the last of these should grow to about 20% in 2010 following the acquisition this year of Essentially Group Ltd.

Chime said the research marketplace has been affected by the economic downturn but that its businesses had also underperformed. The exception was Facts International which did very well and will be used as a basis for restructuring the whole division: the Group has confirmed that Crispin Beale has been appointed as CEO of the Division after more than doubling the profits of Facts International in 2009 in tandem with Chairman Nick Lamb.

The Division as a whole is expected to show a profit in the first six months of the year and continue to grow thereafter.

Group revenue rose 8.5% £300.9m, and the final dividend was raised 10% to 3.50 pence per share.

Last week DRNO reported that the Research Division's co-chairs, Deborah Mattinson and Viki Cooke, had departed to start a new agency.

Web site: www.chime.plc.uk .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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