Chime Communications reveals pre-tax profits of £25.3 million

International communications and sports marketing group Chime Communications plc has announced pre-tax profits of £25.3 million, an increase of 70 per cent.

“2012 was a year of strong performance for Chime’s on-going businesses. During the period, we realigned the Group as an international communications and sports marketing business, invested in our digital offering and opened new offices in Europe, the Far East and Australasia which offer good potential returns. This concentration of activity in specific sectors and expansion geographically positions us strongly for future, long-term growth,” commented Chime Communications CEO Christopher Satterthwaite.

Operating profit for Sport & Entertainment was revealed to have increased by 105 per cent, with successful completion of Olympic and Paralympic contracts. Chime Communications has also established it Healthcare sector with operating profit increasing to £2.2 million from £0.2 million.

The operating results also show that the Group is continuing form following the sale of most of the Bell Pottinger business and the planned closure of other Bell Pottinger businesses, once an overseas contract has been completed in 2013. According to the results net cash as at 31 December 2012 stood at £4.2 million, up from £3.3 million in 2011. Total dividend for the year increased by 10 per cent to 7.24p from 6.58p in 2011.

Reported results exclude businesses that have been sold but include businesses that are in the process of being closed. IFRS IC issued a clarification of IFRS3 on 22 January 2013 which required earn-out payments conditional upon continued employment to be treated as a charge to the Income Statement. Whilst the Directors do not believe that the treatment reflects the substance of the arrangements, they have complied with it and this has resulted in a charge of £11.5 million in 2012 for deemed remuneration (2011 also restated for a charge of £3.1 million).

On a reported based the operating profit was revealed at £4.9 million down from £18.7 million in 2011 and the profit before tax was £2.5 million down from £17.8 million in 2011. Two significant components of this reduction are the completion of one major contract worth £11.9 million and an increase in the deemed remuneration change in respect of earn-out arrangements. In addition, costs of acquisitions and restructuring and loss on disposal and impairments increased.

The average fee per client for 2012 was £91,000 compared to £84,000 in 2011. Top 30 clients were found to represent 49 per cent of the total income, compared to 50 per cent the year before.

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