14th May 2015 08:04
LONDON (Alliance News) - Chime Communications PLC Thursday said its full-year results will be below expectations, due to a slow start in its sports marketing division and further delays in two international contract talks.
In a statement ahead of its annual general meeting, the company said that all of its other divisions are trading in line with expectations, and even without income from the two delayed contracts, it still expects double-digit operating profit growth in 2015, and the rate of growth improving in 2016 through strong organic growth in its Sport and Entertainment division.
According to broker forecasts provided by Morningstar, Chime is expected to post a pretax profit of GBP37.5 million by Numis Securities Ltd and Peel Hunt LLP, GBP36.5 million by Investec Securities, and GBP37.0 million by Cannacord Genuity Ltd.
Chime said the long-term prospects for both its Sport and Entertainment division remain very promising. It expects good growth from the division in 2015, with a stronger second half. It expressed confidence in its growth targets in 2016 and beyond because of the restructuring of its management, growth prospects in the market, and an improving list of client opportunities including around the 2016 Olympic Games.
"We have had a slow start to the year owing to delays in global contract negotiations in our Sport and Entertainment division. However we continue to make good progress in our plan of becoming a world leading international communications and sports marketing group," said Chief Executive Christopher Satterthwaite in a statement.
Shares in Chime are trading down 7.2% at 275.50 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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