Athletes and sports teams weren't the only ones competing during the Winter Olympics and FIFA World Cup in 2014. Chime Communications (CHW) beat out rival sports-marketing agencies to drive like-for-like operating profit up 10 per cent.
The growth was fuelled by a 12 per cent increase in average fees to £111,000 per client. A full 289 clients forked out over £100,000, compared with 247 in 2013. But client numbers also rose as Chime focused on raising its international profile. Income from overseas offices was up by 53 per cent.
Sales at Chime's sport and entertainment agencies soared 28 per cent to over £81m. They performed well at key sporting events, winning new business with the likes of Unilever and Coca-Cola, but the main growth driver was the acquisition of US and UK motorsport business JMI. The group's other key division, advertising and marketing services, also delivered, with underlying operating profit up 23 per cent thanks to a focus on margin improvement.
Chime's momentum has continued, with new business worth £31m already in the bag this year, up 35 per cent on 2013. The group looks set to score at the upcoming Rugby World Cup, where it will handle Land Rover's sponsorships and manage 82 players.
Broker Numis expects pre-tax profit of £37.5m, giving EPS of 26.4p (from £30.1m and 22p in 2014).
| CHIME COMMUNICATIONS (CRW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 276p | MARKET VALUE: | £277m | |
| TOUCH: | 275-276p | 12-MONTH HIGH: | 377p | LOW: 239p |
| DIVIDEND YIELD: | 3.0% | PE RATIO: | 29 | |
| NET ASSET VALUE: | 190p* | NET DEBT: | 28% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 149 | 26.5 | 25.5 | 6.05 |
| 2011 | 286 | 17.8 | 16.2 | 6.58 |
| 2012 | 344 | 2.5 | -1.6 | 7.24 |
| 2013 | 299 | -4.7 | -12.6 | 7.34 |
| 2014 | 390 | 15.8 | 9.6 | 8.40 |
| % change | +30 | - | - | +14 |
Ex-div: 21 May Payment: 12 Jun *Includes intangible assets of £244m, or 243p a share | ||||
