Skip to main navigation or content
Chime is doing well, thanks to its diverse range of blue chip clients and a robust performance from its public relations and marketing divisions. Though not immune from a slowdown, the group has already booked 90 per cent of the revenues it needs to achieve its full-year forecast.
Advertising
Notable work included the handover party at the Mall for the London 2012 Olympics. Another high profile project has been the government’s anti-binge drinking campaign. New business has also been won with investment bank UBS, Thames Water and the Abu Dhabi Government. Overall, international work jumped 28 per cent to £18.5m.
Chairman Lord Bell admits it's a 'strange old environment', but 18 per cent of the group's annual costs are variable so it can cut its cloth quickly to suit client activity. Though there has been some evidence of reduced spend in advertising and research, the PR and sports divisions are thriving, as are Chime's digital activities where business is being driven by the trend of clients shifting from offline to online media.
Chime has secured a new five-year debt facility worth £32m, but is not about to go on an acquisition spree as it favours organic growth.
Numis Securities expects 2008 pre-tax profits of £16.1m and EPS of 19.4p (17.2p in 2007).
CHIME COMMUNICATIONS (CHW) |
||||
|---|---|---|---|---|
| ORD PRICE: | 113p | MARKET VALUE: | £64.5m | |
| TOUCH: | 112-114p | 12-MONTH HIGH: | 261p | LOW: 88p |
| DIVIDEND YIELD: | 3.5% | PE RATIO: | 7 | |
| NET ASSET VALUE: | 146p* | NET DEBT: | 16% | |
| Half-year to 30 Jun |
Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 95 | 6.4 | 8.58 | 1.10 |
| 2008 | 115 | 8.2 | 9.98 | 1.54 |
| % change | +22 | +27 | +16 | +40 |
Ex-div: 24 Sep Payment: 15 Oct *Includes intangible assets of £111.6m, or 196p a share |
||||
Guide to the terms used in IC results tables.
More analysis of company results
Chime is trading on a meagre six times earnings estimates and, with the current pipeline of new business good, the shares remain an attractive buy.
Last IC view: Buy, 29p, 11 Mar 2008
The UK’s No.1 Stockbroker
Access a selection of share tips, comprehensive company analysis and full financial data on listed companies. Plus portfolio tools with advanced alerts when you register for free here.
Advertorial Feature
With so many big moves in the world's financial markets, there have seldom been more opportunities around for spread traders. Isn't it time you joined them?
by Dominic Piccarda
© The Financial Times Limited 2008. All rights reserved. "Investors Chronicle", "FT" and "Financial Times" are trademarks of The Financial Times Limited. No part of these web pages may be reproduced or transmitted to or stored in any other website or other form of electronic retrieval system, without prior permission in writing from the editor.
Warning: Do remember, particularly if you are new to stock market investment that the prices of shares and other investments can fall sharply. You may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. This site is aimed at UK residents only. To read more please see our Important Warning
-IC-1.5.4a-prod - 31/10/2008 13:11:34 - carlos.princz
