Interim - Chime Communications PLC

Interim Report 2009New business wins in 2009 included:Divisional performanceTrading conditions remained difficult in the first half of 2009but our diversified business model enabled us to maintain ourprofit performance. Those businesses that were affected bythe difficult conditions were offset by businesses thatcontinued to grow.We have continued to focus on costs and whilst headcounthas risen in those businesses that are doing well, overall ourheadcount has reduced since the end of 2008.Based on operating income, Public Relations continues to beour largest division at 55% (2008 full year: 55%), Advertisingand Marketing Services was 40% (2008 full year: 39%) andResearch was 5% (2008 full year: 6%).Public Relations – Bell Pottinger Group includingGood Relations, Harvard, Insight and CorporateCitizenshipThe Public Relations Division has performed extremely wellin the first half of 2009. Cost control remained good with the10% increase in revenue resulting in a 25% increase inoperating profit. Margin improved to 20.9%.Less good performance in public affairs, financial publicrelations and technology public relations was offset by strongperformance in geopolitical, corporate and socialresponsibility, the Middle East and consumer.Advertising and Marketing Services – VCCP Group,Fast Track and TeamspiritThe operating income in the Advertising and MarketingServices Division increased by 10% in the first half of 2009but operating profit decreased by 4%. Income in this division,particularly in VCCP and Fast Track, is weighted towards thesecond half of the year, but costs remain constant, thereforewe expect the second half to show an increase in profit.Summary of resultsFirst Half First Half2009 2008 %£m £m changeActualOperating income 58.4 54.5 +7%Operating profit 9.4 9.1 +3%Operating profit margin 16.1% 16.8%Public Relations Division2009 2008 %£m £m changeOperating income 32.0 29.3 +10%Operating profit 6.7 5.3 +25%Operating profit margin 20.9% 18.4%Advertising and Marketing Services Division2009 2008 %£m £m changeOperating income 23.4 21.1 +10%Operating profit 3.4 3.6 -4%Operating profit margin 14.8% 17.0%Research and Engagement Division2009 2008 %£m £m changeOperating income 3.0 4.1 -26%Operating profit 0 0.5 -105%Operating profit margin – 11.3%VCCP Digital and VCCP Search continued to grow at a fastrate (up over 50% in operating profit) as they have done sinceour initial investment two years ago.Overall this division is expected to show operating profitgrowth for the full year 2009.Research - Opinion Leader, Facts International andCaucus WorldA very disappointing first half year. The marketplace remainsdifficult but this was compounded by lower profits at OpinionLeader and continued investment in Caucus World,our digital platform.The launch of Caucus World was delayed but it has nowstarted to generate income and should become profitableduring the second half of 2009. The second half of 2009is likely to remain difficult at Opinion Leader as furtherrestructuring plans are put in place.3