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Income, Profit Down for Chime MR Units
UK marcoms group Chime Communications has seen a continued decline in the performance of its research division, with operating profits dropping by 73% to £400,000, and operating income falling from £7.7m to £7.0m. Results in other divisions carried the group to healthy revenue and profit growth.
The Research Division - which includes Opinion Leader, Facts International, Ledbury and Naked Eye - was budgeted to improve in the second half of 2008 following the restructuring carried out in the first half of the year. However, the group said that due to postponed and cancelled projects, the division's performance continued to deteriorate.
In addition, the launch of Caucus World - which will host online communities from which researchers will be able to facilitate live, online research - was delayed due to hold-ups in software development.
Chairman Lord Bell comments: 'We still have confidence in the restructuring we have done and the first quarter of 2009 is looking encouraging with a healthy new business pipeline'.
Chime is organised into three operating divisions - Public Relations, Advertising and Marketing Services and Research and Engagement. Overall, group operating income was up 16% to £112.1m (2007: £96.5m), and operating profit grew 15% to £18.1m (2007: £15.7m). Profit before tax climbed 19% to £16.3m (2007: £13.8m).
While trading conditions deteriorated in the second half of 2008 for some of the group businesses, the Public Relations Division was ahead of budget for 2008.
Lord Bell continued: '2008 has been a very successful year of double digit growth, although the outlook for 2009 is uncertain. So far the impact on businesses affected by the economic downturn has been offset by growth in other businesses.'
In January, Paul Tredwell joined the group as CEO of its Research and Engagement division.
Web site: www.chime.plc.uk .
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