Chime Insight Arm Reports 'Strong' Half Year

Marcoms group Chime has reported a 'strong' half year for its CIE (Insight & Engagement) arm, with operating profit up 33% to £1.2m, compared with £0.7m in the first six months of 2012. Reported revenue of £5.35m for the division is almost unchanged from H1 2012.

Chime's Group revenues from continuing operations fell 16.3% to £140.2m, but this overall figure results from a combination of a steep decline in the Sports division (revenues down £39m on the Olympic year and expected to rise again in World Cup year 2014), and good gains or steady performance in all other units. Chime's overall cost of sales fell by £24.4m.

For the six months ended 30th June 2013, the group as a whole reported a 6% increase in operating income to £77.8m (H1 2012 £73.7m), while operating profit was flat at £11.3m.

Reported revenues for the CIE division fell from £5.38m to £5.35m year on year (ie vs H1 2012), but the latter performance had been exceptional, almost up to the 2011 H1 figure of £5.7m despite the subtraction of £1.69m of income from Tree (London) Limited which moved to being reported as part of Advertising and Marketing Services.

In today's interim statement, the CIE division showed a 33% increase in operating income to £4m in H1, and operating margin of 28.6% compared with 24.6% in the prior year period.

Chime says CIE's organic growth has been driven by a number of factors including the general trend towards digital research and demand from clients for these services, which have been met by the recently formed Watermelon Research. During the period, fieldwork division Facts International has also seen strong double-digit growth.

The company said in a statement that it expects CIE to continue to grow in 2014 and beyond, despite the fact that market conditions remain 'highly competitive in a sector undergoing structural change'.

CIE Chief Exec Crispin Beale (pictured) comments: 'We are delighted to see continued improvement across all areas of the group, with increased revenues from existing clients and a number of significant new wins. To support our growth, the Chime Insight & Engagement group continues to recruit and retain some of the best individuals in the marketplace, as well as invest in the latest technological innovations.'

Web sites: www.chime.plc.uk and www.cie.uk.com .