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Chime Communications (CHW)

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Thursday 14 May, 2015

Chime Communications

Annual General Meeting Trading Update

RNS Number : 1177N
Chime Communications PLC
14 May 2015
 

 

Chime Communications PLC

 

("Chime" or the "Company")

 

 

Annual General Meeting Trading Update

 

 

Chime Communications plc, the international communications and sports marketing group, announces its Annual General Meeting Trading Update for the first four months of 2015.

 

Summary

 

2015 has started slowly in sports marketing with further delays in two major international contract negotiations.  All other divisions are trading in line with expectations.  Consequently, the full year results will be below expectations.

 

Long term prospects for the Sport and Entertainment division remain very promising following the initial restructuring led by Lord Coe in March which saw Zak Brown take over as CEO.

 

Even without any income from the two major delayed contracts we still anticipate double digit operating profit growth for 2015, with the rate of growth improving in 2016 through strong organic growth in our Sport and Entertainment division.

 

Sport and Entertainment

 

Major sporting events in which we are involved in 2015 include The Rugby World Cup in the UK, The European Games in Baku and the Ashes Series in England.  We are expecting good growth from this division in 2015 and beyond, although the phasing of income in 2015 around major events will mean the second half performance will be better than the first half. 

 

We have confidence in our growth targets for 2016 and beyond because of the restructuring of our management, the continuing growth prospects of the sports market and our improving list of client opportunities including around the 2016 Olympic Games.

 

Advertising and Marketing Services

 

This division has continued its strong performance in 2014 into 2015 with good new business wins.  We are continuing to look at expansion opportunities by both increasing the services we can provide to clients in the UK and expanding our international reach.

 

Healthcare

 

This division has had a good start to 2015 and is expected to continue to grow.  As in previous years, the second half of the year will be better than the first half.

 

Insight and Engagement

 

2015 has started well with income ahead of last year and margin still well ahead of the marketplace.  We have purchased part of the minority shareholding in our digital research business, Watermelon, in an earnings enhancing transaction.  We now own 90% of this business.  

 

Board Changes

 

As previously announced, Martin Glenn has left the Board following his appointment as Chief Executive of the Football Association.  We expect to make an announcement about the appointment of a new Director in due course.

 

 

Christopher Satterthwaite, Chief Executive of Chime Communications, said:

 

"We have had a slow start to the year owing to delays in global contract negotiations in our Sport and Entertainment division.  However we continue to make good progress in our plan of becoming a world leading international communications and sports marketing group, able to offer a unique combination of services to global clients seeking to reach worldwide audiences, as seen with the recent launch of our major league soccer business in the US."

 

 

 

 

Enquiries

 

Christopher Satterthwaite, Chief Executive                                

Chime Communications

 

020 7096 5888

Mark Smith, Chief Operating Officer and Finance Director        

Chime Communications

 

020 7096 5888

James Henderson / Victoria Geoghegan / Elizabeth Snow        

Bell Pottinger

 

020 3772 2562

 

 

 

Notes to Editors

 

Chime is an international communications and sports marketing group, comprising CSM in sport and entertainment; the VCCP Partnership in advertising and marketing services; OPEN Health in healthcare communications; and CIE, our insight and engagement division.

 

For more information, please go to www.chimeplc.com


This information is provided by RNS
The company news service from the London Stock Exchange
 
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