Chime profits up 6 per cent in 2014

Chime Communications, the marketing group that owns VCCP, has reported headline profit before tax of £30.1 million for 2014, a 6 per cent like-for-like increase on the previous year.

Zak Brown: the former racing car driver who founded JMI
Zak Brown: the former racing car driver who founded JMI

The company’s headline operating income for the year ending 31 December was £198.9 million, up 18.4 per cent year on year, while the group’s operating profit margin rose from 15.5 per cent to 16.2 per cent over the same period.

Within Chime’s advertising and marketing division, operating income rose 12.4 per cent to £86.8 million. The group’s operating profit margin rose from 12.3 per cent to 14.2 per cent.

Over the year, Chime also restructured itself, reducing the number of divisions within the group from five to four. Public relations was integrated into the sport and entertainment division, and within advertising and marketing. The healthcare communications and insight and engagement divisions remained unchanged.

Sport and entertainment remains the group’s second biggest earner after advertising. Its operating income was £81.2 million in 2014, up 28.5 per cent year on year.

Healthcare, meanwhile, reported an 18 per cent like-for-like rise in operating income to 21.8 million. Operating income at Chime’s insight and engagement was static at £9.1 million.

Chime has also announced management changes. Martin Glenn will resign from its board on 12 May, after being appointed as chief executive of The Football Association.

Zak Brown, a former racing car driver who founded JMI, the motorsports marketing agency acquired by Chime in 2013, will become chief executive of the group’s sport and entertainment division, reporting to Lord Sebastian Coe, its executive chairman.

Brown replaces Jim Glover,‎ who is moving to be deputy chairman.

Christopher Satterthwaite, Chime’s chief executive, said: "2014 was a year of good growth and saw the development of CSM as a global player in the sport and entertainment marketing businesses.

"Our communications businesses continue to grow and with the proportion of shared clients also increasing, we are sharpening our competitiveness as an international communications and sports marketing group."