Chime's Q1 Pre-tax Profits Grow 18% to £4.8m

UK marketing services group Chime Communications is enjoying a strong first quarter with operating income up 13% from the same period last year, pre-tax profits 18% higher than 2008 at £4.8m, and operating profit margin rising 17.2%.

Chairman Lord Bell said he was confident about achieving first half year expectations. 'The group's financial position continues to be strong, we are cash positive and there have been no material events or transactions affecting the group,' he stated.

For 2008, Chime reported a continued decline in the performance of its research division - which includes Opinion Leader, Facts International, Ledbury and Naked Eye - where operating profits dropped by 73% to £400,000, and operating income fell from £7.7m to £7.0m

However, today's first quarter results are in contrast with the performance of bigger groups such as WPP and Interpublic Group, which recently reported first quarter revenue drops of 5.8% and 5.6% respectively.

In this morning's trading, shares were up 4.4% to 95 pence. While the company did not provide guidance for earnings, analysts are expecting a 2009 pre-tax profit of £16m on revenue of £109.4m.

Web site: www.chime.plc.uk .