Chime Strikes Glum Note On Market Conditions

Chime Communications, owner of advertising agency HHCL and financial PR firm Bell Pottinger, has made a gloomy assessment of the current market situation, but is confident of its own future in the light of a recent cost-cutting drive.

“Whilst we can see no improvement in market conditions at the moment, we believe that Chime is well placed to take advantage of any upturn.” the company said in a pre-close trading statement today. In it, it admitted to a “variable” performance from its advertising businesses, including the loss of the AA and Egg accounts, but the gain of Captain Birdseye across Europe and becoming a Mars agency. It added that its marketing services businesses, including Bell Pottinger, were “performing well in the current environment.”

A cost cutting exercise put in place in late summer is now expected to result in savings for the year of £2.7m after costs. Measures have included job cuts, confirmed today as a 15% headcount reduction. However, the Chime said today: “Unless market conditions deteriorate further we do not anticipate having further restructuring costs in 2002”.

Chime Communications: 020 7495 4044 www.chime-plc.co.uk

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