Interim - Chime Communications PLC

Interim Report 2009Notes to the accounts1. Business segmentsFor management purposes, the group is organised into three operating divisions – Public Relations, Advertising and Marketing Services and Research.Principal activities of these divisions are as follows:Public RelationsThe Public Relations division comprises some of the leading names in the industry, including Bell Pottinger, Good Relations, Harvard, Insight,Resonate, De Facto and Corporate Citizenship. It is the ranked number 1 PR Group in the UK in the PR Week public relations consultancy leaguetable for 2008. It serves major UK and international brands, as well as governments, government departments, pharmaceutical and healthcarecompanies, charities, not-for-profit organisations, professional service firms, consumer brands and famous people.Advertising and Marketing Services (‘AMS’)The AMS division possesses specialist skills in advertising and marketing services – direct marketing, digital communication, sponsorshipexploitation, point of sale, sales promotion and specialist media planning and buying. It also specialises in the niche market of financial services.Research and EngagementThe Research and Engagement division is made up of Opinion Leader, Ledbury Research and Facts International. Opinion Leader is one of the UK’sleading research consultancies and Ledbury Research provides research and advice to brands who market and sell to high net worth consumers.The group’s operations are located in the United Kingdom, Germany, Spain, the Middle East and USA.RevenueOperating Income6 months to 6 months to 12 months to 6 months to 6 months to 12 months to30 June 30 June 31 December 30 June 30 June 31 December2009 2008 2008 2009 2008 2008(unaudited) (unaudited) (audited) (unaudited) (unaudited) audited£’000 £’000 £’000 £’000 £’000 £’000Class of businessPublic Relations:Continuing operations 86,442 68,077 178,955 32,033 29,249 61,352Advertising and Marketing Services:Continuing operations 46,463 40,003 86,320 23,345 21,140 43,778Research:Continuing operations 4,580 7,417 12,119 2,995 4,070 6,960137,485 115,497 277,394 58,373 54,459 112,090Public Relations:Continuing operations 6,710 5,380 12,115 20.9% 18.4% 19.7%Advertising and Marketing Services:Continuing operations 3,446 3,589 6,166 14.8% 17.0% 14.1%Research:Continuing operations (23) 460 376 (0.8%) 11.3% 5.4%10,133 9,429 18,657 17.4% 17.3% 16.6%Chime central costs (706) (302) (547)Operating profit 9,427 9,127 18,110 16.1% 16.8% 16.2%Share of results of associates (6) 135 186Sale of assets held for sale (188) – –Impairment in carrying value of investment (95) – –Investment income 47 71 456Finance costs (215) (548) (1,393)Finance cost of deferred consideration (449) (615) (1,020)Profit before tax 8,521 8,170 16,339As required by IFRS8 (Operating Segments) the prior comparatives for the 6 months to 30 June 2008 have been restated to reflect the changein management reporting of TTA Public Relations within the group. TTA Public Relations was previously reported within advertising and marketingservices, it is now included within public relations. The effect of this change is as follows for 6 months to 30 June 2008: revenue £1,931,000,operating income £1,522,000, operating profit £236,000. The results to 31 December 2008 were reported using these segments and thereforeno change is necessary to these numbers.9