CHW update from iii Shares 27 Feb 2012 12:27
Chime Communications (CHW), the international public relations group better known as Bell Pottinger, has an impressive track record. Profits have grown steadily through difficult times from £11 million in 2006 to £21 million in 2010.
For 2011 the expectation is that the group will achieve a pre-tax return of £31.3 million and that returns will rise steadily over the next two years.
Dividends - a mere 0.58p a share in 2006 - are forecast to reach 8.09p for 2013. That implies a yield of 4.5%, which, coupled with the forward earnings multiple of only 6.4, suggests the shares are undervalued. They were just 50p at the bottom of the last bear market, touched 300p last summer and now change hands at 171p.