Chime 'Pleased' with First Half Despite Profit Fall

UK-based marcoms group Chime has announced revenues down 7% to £184.5m, with profit before tax slumping from £9.57m in H1 2014 to just £1.41m. Much of the drop hinged however on difficult comparatives and the effect of cyclical sporting events, and the insight division CIE was solid.

Chime, which recently agreed to be acquired by WPP and Provident Equity in a deal valued at £374m, is the holding group for a portfolio of agencies which includes PR, advertising, digital, marketing, research, corporate responsibility and design firms. For the first six months of 2015, the group reported a pre-tax profit of £14.0m, down from £16.5m in the prior year period, although its operating income was up 4% to £102.6m.

The group's Insight & Engagement Group (CIE) includes digital specialist Watermelon, qual recruitment arm CherryPicked, fieldwork agency Facts International, and full service agency Opinion Leader. For the first half of the year, CIE operating income was up 14% to £4.8m, while operating profit remained static at £1.4m - lowering margin from 33.2% to 29.2%. Chime stated that the role of digital research continues to increase and that it has raised its stake in its Watermelon to 90% by purchasing part of the minority in an 'earnings enhancing' transaction.

CEO Christopher Satterthwaite (pictured) said the Board is pleased with the group's performance in the first half of the year, and that the second half will see a benefit from the timing of sports events*, as well as the 'continuing strong performances' in its marketing services businesses, which include CIE as well as VCCP, Open Health and the Chime Specialist Group.

Web site: www.chimeplc.com .


* In sports terms, the first half of 2014 gained from the FIFA World Cup and Sochi Winter Olympics, while H2 2015 include the upcoming UK Rugby World Cup and the current Ashes Series, and should start to benefit from the 2016 Olympics in Brazil. By contrast the half year just finished saw no such major events.

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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