CHW.L Regulatory News (CHW)

18th November 2014

CHIME COMMUNICATIONS PLC

("Chime" or "the Company")

INTERIM MANAGEMENT STATEMENT

Chime Communications plc, the international communications and sports marketing group announces its interim management statement relating to the period 1st July 2014 to 17th November.

Summary

· Solid performance across all business divisions and expected to achieve more than 20% growth in operating profit

· Two significant contracts in the Sport and Entertainment division ‎are now set to commence in the 2015 Financial Year rather than 2014, which will affect 2014 profit performance; however growth opportunities are strong and profits guidance for 2015 remains unchanged

· The Sport and Entertainment division is in negotiations for further major long term contracts which will affect 2015 and beyond. The division is now tendering for more contracts than ever before and our global capability enables us to pitch for business of a size and scale not previously possible

· Strong outlook for 2016 following early contract wins for Rio Olympic Games

Sport and Entertainment

· Operating income growth in 2014 expected to be over 25% at an improved margin but below current expectation owing to a delay in major contract negotiations

· Many parts of the Sport and Entertainment division have contributed to our activities in Brazil this year and we have learnt from the size and scale of work we have undertaken both there and in Sochi. Going forward to the next Olympics in Rio and the next World Cup in Russia, this will be invaluable learning and we are pleased that we are already winning assignments in Rio for 2016

· The acquisition of SJX in November 2014 is already developing new opportunities between JMI and SJX as part of our overall US strategy - the largest sports marketing market in the world

· Acquisition of ABC Sports Management Limited, one of the UK's top athlete management businesses, with particular strength in rugby union which is already proving beneficial ahead of 2015 Rugby World Cup

Advertising and Marketing Services

· 2014 has been a very good year for VCCP and Teamspirit with both operating income and operating profit expected to be ahead of expectation

· 2014 has seen good growth in operating income from new and existing clients and further improvement in margin

· Growth prospects for 2015 remain very good

Healthcare

· This division continues to grow ahead of the marketplace and its prospects for 2015 and beyond remain extremely strong

Insight and Engagement

· Performing ahead of the marketplace and in line with our expectations both in terms of income and margin 

Public Relations

· The core public relations businesses in this division are on track and they have won a number of recent high profile awards

Christopher Satterthwaite, Chief Executive of Chime Communications, said:

"We have experienced very strong growth in 2014, although it is frustrating that two of the Sport and Entertainment contracts will now fall into the 2015 financial year. Whilst this will affect our profit projections for 2014, our prospects for 2015 remain very exciting. The opportunities we now have in Sport and Entertainment are the best we have ever experienced and we anticipate continuing to grow strongly in 2015 and beyond."

Enquiries

Christopher Satterthwaite, Chief Executive 020 7096 5888

Chime Communications

Mark Smith, Chief Operating Officer and Finance Director 020 7096 5888

Chime Communications

James Henderson / Victoria Geoghegan / Elizabeth Snow 020 3772 2700

Bell Pottinger

Notes to Editors

Chime is an international communications and sports marketing group, including CSM Sports & Entertainment, the VCCP Partnership in advertising, The Good Relations Group in public relations, Open Health in healthcare communications, Teamspirit, a specialist in financial and professional services and CIE, an insight and engagement agency.

For more information, please go to www.chimeplc.com