The company's pre-tax profits for the first six months of 2005 fell to £3.03 million from £3.08 million. However, its tax bill fell from £1.07 million to £379,000 resulting in a net profit of £2.65 million, compared with £1.99 million in 2004. Lower assessments cut the tax bill from 31 per cent to 13 per cent for January to June 2005. Chime's tax rate will return to normal in the second half of the year.
Chime's PR businesses made up the majority of the company's first-half operating profit with 67 per cent. Its marketing services companies created 29 per cent of its profits and its research companies produced 7 per cent.
Chime, which is chaired by Lord Bell (pictured), bought VCCP in July this year for an initial consideration of £14.5 million. Another £15.5 million could be paid in the next five years, dependent on VCCP hitting certain growth targets.
- Comment, page 52.