'Disappointing' Half for Chime Research Firms

Revenue in the Research Division of UK marcoms group Chime Communications fell to £4.58m from £7.41m in the prior year period, while operating income dropped 26% to £3m.

The group described results for the division - which includes Opinion Leader, Facts International, Ledbury, Naked Eye and Caucus World - as 'very disappointing.'

Figures were compounded by lower profits in Opinion Leader and continued investment in digital platform, Caucus World.

While the launch of the latter was delayed, the unit has now started to generate income and the firm says it should become profitable during the second half of the year. However, 2009 is likely to remain difficult at Opinion Leader as further restructuring plans are put in place.

Facts International, after a difficult first quarter, won several new clients in the second quarter.

'Overall the year is likely to remain difficult but we expect the division to return to making profits in the second half of 2009,' said Chime Communications Chairman Lord Bell. 'During the course of the remainder of the year we will bring in new management and reposition the Research Division with the expectation of a strong performance in 2010.'

Other divisions generally fared well. Overall, the group reported a 4% increase in first-half pre-tax profits to £8.5m, which it says is the highest figure in the history of the company.

Operating income grew 7% to £58.4m (£54.5m in H1 2008) and operating profit was up 3% to £9.4m (£9.1m in H1 2008) during the six months ended 30 June 2009.

Based on operating income, the group's Public Relations arm continues to be the largest division at 55% (2008 full year: 55%), Advertising and Marketing Services was 40% (2008 full year: 39%) and Research was 5% (2008 full year: 6%).

Lord Bell added that the group remains 'cautiously optimistic' for the full year, and that plans are now in place to make some 'strategic acquisitions', ready for a possibly upturn in the economy.

Chime's share price rose 1.2% to 171p by 9.30am today.

Web site: www.chime.plc.uk .

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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