Chime reports 62% hike in profits

Chime Communications, the holding group that owns advertising agency Vallance Carruthers Coleman Priest (VCCP), has posted a 62% rise in pre-tax profits for the first half of the year.

The marketing services group run by Lord Bell bought VCCP for £30m last year, as first revealed by Marketing Week (MW June 9, 2005).

The company, which also owns public relations consultancy Bell Pottinger Group and Opinion Leader Research, said today its profit margin increased from 13.3% to 15% and operating income rose 38% to £38.3m.

It says results show the £30m acquisition of VCCP has begun to pay off. The agency helped the advertising and marketing services division return to growth.

Operating profit at the division, which also includes VCCP Digital, financial services marketing agency Teamspirit and property marketing firm TTA Group, was up from £400,000 for the first half of 2005 to £1.8m this year. Operating income increased by 95% to £13m.

Teamspirit recently opened an Edinburgh office to bolster its work for Scottish Widows, after being reappointed to the Lloyds TSB-owned company’s roster.

Lord Bell says: “The results for the first half of 2006 are very encouraging and we are positive about the outcome for the full year. There is growth in the market but not more than 3% or 4% and we reported double that.”

The group’s operations are located in the UK, Germany and America, although the advertising, marketing services and research divisions are located solely in the UK.