CHW.L Regulatory News (CHW)

13 Mar 2007 07:03

Chime Communications PLC13 March 2007 CHIME COMMUNICATIONS PLC ("Chime" or "the Group") Chime Communications Acquires Fast Track Sales Limited Chime Communications, the leading marketing services group, today announces theacquisition of Fast Track Sales Limited ("Fast Track") and its subsidiaries foran initial consideration of £15 million. Fast Track, founded in 1998 by former Olympians Alan Pascoe, Edward Leask andJon Ridgeon, is the leading sports marketing agency in the UK with a team ofover 90 people creating award winning, world class sponsorship programmes andevents for clients across a multitude of activities. Major clients andpartnerships include Aviva, BBC, Clydesdale Bank, Camelot, GSK, G4S, Heineken,Land Rover, MMC, Sainsbury's, The National Lottery, UK:Athletics, UK SchoolGames (Youth Sport Trust), Visa Paralympic World Cup and Volvo. The initial consideration is £15 million payable £10 million in cash from withinthe Group's facilities and £5 million in Chime shares. Deferred consideration ispayable on the average profits for the three years ended 31st December 2009 andthe three years ended 31st December 2012. The maximum total consideration(initial and deferred) is £43 million. The transaction (initial and deferredconsiderations) is based on a multiple of 7 times average pretax profits. Deferred consideration can be paid in Chime shares or loan notes at Chime'sdiscretion. Any Chime shares issued to satisfy the deferred consideration aresubject to restrictions on sale. Reported pretax profits (under UK GAAP) for the year to 31st December 2006 were£371,000 and the four main shareholders of Fast Track have warranted pretaxprofits for the year to 31st December 2007 of £2.5 million. It is expected thatthe transaction will be earnings enhancing to the Group. Gross assets (under UK GAAP) of the Fast Track Group at 31st December 2006 were£6.6 million. The four principal shareholders and Directors of the company; Alan Pascoe,Edward Leask, John Ridgeon and Jim Glover are remaining with the Group undertheir existing contractual arrangements. As this transaction will be a class 1 acquisition for the Group under theListing Rules, a circular needs to be sent to shareholders and their approvalsought for the transaction. It is expected that this circular will be sent toshareholders shortly. The financial information included in the circular will beprepared in accordance with IFRS and Chime's normal accounting policies as isrequired by the Listing Rules as these are the financial reporting procedures ofthe Group. As a result, the profit and gross asset numbers stated above maydiffer from those that appear in the circular. Any such differences will beexplained in the circular. Lord Bell, Chairman of Chime Communications commented: "Fast Track is an established and successful brand with strong management andlong term contracts. We are delighted that Fast Track has joined our collectionof leading brands." Alan Pascoe, Chairman of Fast Track commented: "In nine years, Fast Track has established itself as the leading sponsorship andevents agency in the UK, recently winning five industry awards. We are delighted to have been sought-out by Chime to become the next significantdevelopment in their group portfolio. This is a huge opportunity to enable our staff and clients to benefit from abroader range of marketing service skills As company reputations are increasingly judged on what they do, rather than whatthey simply say, we look forward to driving partnership programmes even moresuccessfully over the coming years. This is an exciting time for our client's partnership programmes within allsports as we continue the countdown to the London Olympic and Paralympic Gamesin 2012 and the legacy beyond" -ends- For further information please contact: Lord Bell, Chairman 020 7861 8515Chime Communications Christopher Satterthwaite, Chief Executive 020 7861 8515Chime Communications Charles Cook/Chris Hamilton 020 7861 3232Bell Pottinger Corporate & Financial Jon Ridgeon/Jim Glover, Joint Managing DirectorsFast Track 020 7593 5812 Notes to Editors About Chime • Chime Communications Plc is the holding company for a number of leading public relations, marketing services and research consultancy firms. • The Chime Group consists of one of the UK's leading public relations groups, Bell Pottinger; two research and consultation businesses Opinion Leader Research; and VCCP, one of the fastest growing advertising and marketing services groups in the UK. • The Chime Group helps clients create, manage, monitor and market their businesses, brands and reputations both in the UK and internationally. About Fast Track • Fast Track is the leading sports and events agency in the UK with a staff of over 90 people • Fast Track, which includes Fast Track Sailing, delivers for clients in four main areas: Events, Communications, Consulting and Rights Marketing • Major Fast Track programmes within sport in 2007 include: Heineken - Heineken Cup & Rugby World Cup Lucozade Sport - Flora London Marathon & FA Premiership Seven UK:Athletics major televised events UK School Games Visa Paralympic World Cup Glasgow's bid to host the 2014 Commonwealth Games Land Rover - Six Nations Championship This information is provided by RNS The company news service from the London Stock Exchange