Chime Communications plc; Announcement Of Audited Preliminary Results For The Year Ended 31st December 2012

(M2 PressWIRE Via Acquire Media NewsEdge) Chime Communications plc, the international communications and sports marketing group, today announces its preliminary results for the year ended 31st December 2012.

OPERATIONAL HIGHLIGHTS Strong growth in Sport and Entertainment, Healthcare and Insight and Engagement Successful completion of Olympic and Paralympic contracts Sport & Entertainment operating profit increased by 105% Substantial investment in new digital products in VCCP, CIE and Good Relations.

Healthcare now established as the fifth division of Chime, operating profit increased to 2.2 million from 0.2 million Strong organic growth in Insight and Engagement division, operating profit up to 2.2 million from 0.7 million New offices opened in Madrid, Moscow, Singapore, Sochi and Sydney Acquisitions of iLUKA, McKenzie Clark, Harvey Walsh (51%), Succinct, Rough Hill (60%) and pH Associates Disposal of most of the Bell Pottinger businesses completed for 19.6 million Lord Coe appointed as Executive Chairman of CSM Sport and Entertainment Lord Davies of Abersoch appointed as Chairman of the Group Christopher Satterthwaite, Chief Executive of Chime Communications, said: "2012 was a year of strong performance for Chime's on-going businesses. During the period, we realigned the Group as an international communications and sports marketing business, invested in our digital offering and opened new offices in Europe, the Far East and Australasia which offer good potential returns. This concentration of activity in specific sectors and expansion geographically positions us strongly for future, long-term growth.

The Board is delighted that Lord Davies of Abersoch has become our new Chairman. We are already working closely with him on the continued development of the Group." HEADLINE RESULTS These results reflect the Group in its continuing form following the sale of most of the Bell Pottinger businesses and the planned closure of other Bell Pottinger businesses, once an overseas contract has been completed in 2013.

2012 m 2011 m 2012 % Change 2012 Like for Like % Change Operating Income 157.5 116.3 +35% +20% Operating Profit 25.7 15.6 +64% +64% Profit Before Tax 25.3 14.9 +70% Operating Profit Margin 16.3% 13.4% Earnings Per Share 21.2p 12.8p +66% Total Dividend 7.24p 6.58p +10% Net cash as at 31st December 2012 of 4.2 million (2011: 3.3 million).

Total dividend for the year increased by 10% to 7.24p (2011: 6.58p) 47 million facility agreed with RBS until September 2016 REPORTED RESULTS Reported results exclude businesses that have been sold but include businesses that are in the process of being closed.

The Group has always accounted for earn-out payments as a capital item and believes this reflects the substance of the arrangements, particularly as the Group has a policy of paying proper market rate salaries and packages to all staff including those who benefit from earn-outs. However, IFRS IC issued a clarification of IFRS3 on 22nd January 2013 which required earn-out payments conditional upon continued employment to be treated as a charge to the Income Statement. Whilst the Directors do not believe that the treatment reflects the substance of the arrangements, they have complied with it and this has resulted in a charge of 11.5 million in 2012 for deemed remuneration (2011 also restated for a charge of 3.1 million).

On a reported basis the operating profit was 4.9 million (2011: 18.7 million) and the profit before tax was 2.5 million (2011: 17.8 million). The two most significant components of this reduction are the completion of one major contract (11.9 million) and an increase in the deemed remuneration charge in respect of earn-out arrangements. In addition, costs of acquisitions and restructuring and loss on disposal and impairments increased. The majority of the charges are not tax deductible nor do they arise in entities with minority shareholders. Reported earnings per share was negative as a consequence of these charges.

2012 m 2011 (Restated) m 2012 Change Operating Income 159.8 131.4 +22% Operating Profit 4.9 18.7 -74% Profit Before Tax 2.5 17.8 -86% Operating Profit Margin 3.1% 14.2% Earnings per Share (4.4p) 13.0p Note: 1. All numbers and comments shown in this report are headline unless otherwise state. The appendix to this announcement shows a reconciliation of these headline numbers to the reported numbers. The headline numbers adjust for the following: Business in the process of being discontinued - During 2012 all the Bell Pottinger branded businesses were either sold or were in the process of being exited. Chime has been exiting the geopolitical business within Bell Pottinger since late 2011, although there remains one contract which ends in April 2013. The work has been sub-contracted to third parties and Chime is not expected to make any profit or loss on this contract in the period to completion. Under accounting standards this line of business does not meet the definition of discontinued at 31st December 2012 due to Chime's legal obligation in the completion of the contract. Given the substantial exit of this business, we have shown the impact in this announcement as if this business was discontinued so as to provide helpful information about our on-going business.

Deemed remuneration charge add back in respect of the change in accounting policy for earn-out payments as explained above.

Add back of charges to the income statement in respect of amortisation of intangible assets, impairment of goodwill and costs relating to acquisition and restructuring.

2. Like for Like comparisons are calculated by taking current year actual results (which include acquisitions from the relevant date of completion) compared with prior year actual results, adjusted to include the results of acquisitions for the commensurate period in the prior year.

For further information please contact: Christopher Satterthwaite, Chief Executive 020 7096 5825 Chime Communications Mark Smith, Chief Operating Officer and Finance Director 020 7096 5833 Chime Communications James Henderson/ Victoria Geoghegan/Elizabeth Snow 020 7861 3925 Pelham Bell Pottinger OVERVIEW 2012 was a year of transition for Chime during which we developed our approach away from a reliance on large government contracts to a focus on four market drivers within the communications marketplace: The global growth of sports and entertainment driven by rising fan numbers, viewers and rights values.

The new opportunities that digital communications create in all forms of media.

The shift in healthcare communications to scientific communications based on data generated by national health authorities.

Growing marketplaces of the world, e.g. Brazil, Russia and China.

CSM Sport and Entertainment's capabilities and reputation grew through its involvement in the 2012 Olympic and Paralympic Games during which it worked for over a quarter of the Games' sponsors.

The increasing awareness of Chime's operating brands (CSM Sport and Entertainment, VCCP Group, Good Relations Group, Open Health and CIE) in their individual sectors has also enabled Group new business to develop across more than one brand - e.g. digital communications and sports marketing are complementing each other as sporting spectators watch events "live" whilst having a secondary communications device at hand e.g. a tablet or mobile phone - be they in a stadium or at home.

KEY PERFORMANCE INDICATORS Income from Shared Clients The Group acted for 1,737 clients in 2012 compared to 1,377 in 2011. 252 of these clients used more than one of our businesses (2011: 219) which represented 68% of total operating income (2011: 66%).

Average Fee per Client Average fee per client for 2012 was 91,000, compared to 84,000 in 2011. 214 clients paid us over 100,000 in 2012 compared to 167 in 2011. Our largest client represented 12% of total operating income (2011: 16%). Our top 30 clients represented 49% of total income compared to 50% in 2011.

Operating Profit Margin Operating profit margin for 2012 was 16.3% compared to 13.4% in 2011.

Income from Overseas Offices Income from overseas offices increased by 12% in 2012, although as a percentage of total income it reduced from 15% in 2011 to 13% in 2012. Much of our future growth is expected to come from international offices so we expect this percentage to increase substantially in 2013 and beyond.

Earnings per Share Earnings per share in 2012 increased to 21.2p (2011: 12.8p).

HEADLINE DIVISIONAL PERFORMANCE 2012 m 2011 m % Change 2012 Like for Like Change Operating Income 65.9 40.0 +65% +35% Operating Profit 15.8 7.7 +105% +158% Operating Profit Margin 23.9% 19.2% The sports marketing and entertainment market globally continues to grow in excess of 5% per annum and CSM is No. 1 in the UK sports marketing league tables. The two acquisitions we made in 2012, iLUKA and McKenzie Clark, have been successfully integrated and Lord Coe has now been appointed Executive Chairman of CSM Sport and Entertainment.

Our Olympic and Paralympic activity was extremely successful and this is already helping us create opportunities for other major sporting events.

Recent new business wins include: Appointment by FIFA, subject to finalisation of the detailed contract terms, to do the signage, wayfinding and branding for both the 2013 Confederations Cup and the 2014 World Cup.

Appointment by Ingosstrakh to provide torch relay and hospitality services for their sponsorship of the 2014 Winter Olympics in Sochi.

SABMiller - activation of Global Music sponsorship.

Lead agency for the FIFA U-17 World Cup in the UAE in 2013. The biggest football tournament ever held in the UAE.

Advertising & Marketing Services 2012 m 2011 m % Change 2012 Like for Like Change Operating Income 54.3 49.4 +10% +7% ((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.com on the world wide web. Inquiries to info@m2.com)).

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