Daily Research News Online no. 8801 - Chime's Research Arm Feels the Pinch

Chime's Research Arm Feels the Pinch

August 29 2008

In the UK, marcoms group Chime Communications has reported operating profits down 39% to £460,000 in its research division - which includes Opinion Leader, Facts International, Ledbury and Naked Eye. The firm is also set to launch a new digital research business in the autumn.

Chime's Lord Bell For the group, organic growth was 11.4% for the first half of 2008, while operating profit was up 24.9% to £9.1m. Profit before tax increased 27.3% to £8.2m, and revenues increased 22% to £115.5m. Operating income rose 24.2% to £54.5m.

News from the research division, which accounts for 7% of operating income, was not so good. During the period, operating profit margin shrank from 20.6% to 11.3%.

However, Chime Chairman Lord Bell said that overall the group's continued emphasis on cost control leaves it well placed to meet expectations for the full year. More than 90% of annual revenue from clients for the year has already been committed, which means that the company should make its full year numbers.

'It is widely predicted that economic growth will slow in 2009, but our strategy of a diversified group of businesses will protect us,' he added.

Separately, Chime is about to launch a digital research business called Caucus, initially in the UK but with plans for rapid global expansion.

At Chime's research agency Opinion Leader, MD Paul Flatters has left after just a year to set up a new forecasting firm called Trajectory Partnership with past Future Foundations colleagues Michael Willmott and Chris Farmelo.

While Opinion Leader recruits a replacement, former Research International Board Director Annette M�ller has stepped in as Interim MD.

Despite Flatters' departure, Bell stated that the firm's focus is firmly back on business development and client management.

Web sites: www.chime.plc.uk , www.opinionleader.co.uk and www.trajectorypartnership.com .