Trading conditions in the third quarter of 2003 were difficult but there are signs of an upturn in market confidence in 2004, according to Chime Communications.
The advertising and PR firm said today that many clients had reduced expenditure during the hot summer and there has been a delay in the anticipated recovery.
The public relations business, which accounts for more than 60% of revenue, gained market share and the research unit continues to perform well. The advertising and marketing services division has been restructured into a full service integrated marketing services business to be called the Heresy Group and should see growth in 2004.
Profits at Chime fell by 35% in the first half of 2003 (see Chime Profits Drop By 35% As Conditions Remain ‘Testing’) and conditions remain testing. However, the company believes that the business climate has improved in the fourth quarter and it is well positioned to take advantage of the 2004 upturn.
Shares in Chime were down 1p at 32.5p by mid-afternoon today.
