(CHW.L) Chime Communications PLC Buy/Sell

RNS Number : 7322R Chime Communications PLC 06 May 2009

6 May 2009

CHIME COMMUNICATIONS PLC

INTERIM MANAGEMENT STATEMENT

Chime Communications plc, the leading marketing services group, is today publishing its Interim Management Statement relating to the period 1st January 2009 to 6th May 2009 (as required by the UK Listing Authority's Disclosure and Transparency rules).

Lord Bell, Chairman of Chime Communications, said:

"We have had a strong first quarter and we are confident about achieving our first half year expectations.

There has been such a large amount of interest in the first quarter results of the major marketing services groups, we thought it would be helpful to report our first quarter experience. Unlike these groups our operating income for the first quarter of 2009 was 13% higher than the first quarter of 2008, pre-tax profits were 18% higher than 2008 at £4.8million and the operating profit margin increased to 17.2%

The Group's financial position continues to be strong, we are cash positive and there have been no material events or transactions affecting the Group.

Much has been made in the media about the invitation by The London Organising Committee of the Olympic and Paralympic Games (LOCOG) to a marketing communications agency to become a tier three sponsor of the 2012 Olympic Games. We had held the marketing communications contract on a fixed one year term. Although we are disappointed not to have renewed our contract it would have required us to invest up to £10 million. We wish McCann Erickson good fortune with their appointment. However our involvement in 2012 remains high. We continue to advise LOCOG and its partners on the development of Team 2012 and through Fast Track we are already handling sponsorship for two tier one LOCOG sponsors. Fast Track also has a long term contract with UK Athletics (athletics is the centrepiece of the Olympic Games) and is organising the BT Paralympic World Cup which takes place in Manchester in two weeks time."