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VCCP claim an 80% operating profit increase in 2013, amidst losses for their parent company

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Yesterday, Chime Communications posted pre-tax profits of £25 million for 2013. Operating income at the marketing services company, meanwhile, rose 8% year on year to £169.5 million. Annual operating profits, however, were flat, and the groups operating profit margin actually dropped 7%, with earnings per share in 2013 decreasing to 19.47p, compared to 21.27p in 2012. The rise in operating income can be largely attributed to the advertising and marketing services division of the company, which includes VCCP. This division helped to offset slides elsewhere (particularly in Sport) with a whopping 79% increase, and also grew its profit margin from 8% (2012) to 12% (2013). The successful year (for VCCP in particular) is no doubt down to new clients the agency scored this year, which included Channel 4, Asda, Avis, the AA, Aviva and AEG Europe.

Chime's advertising and marketing division saw a whopping 79% increase, and also grew its profit margin from 8% (2012) to 12% (2013)

Chief executive of Chime, Christopher Satterthwaite, says that VCCP's “Outstanding year,” came from a “very strong new business record.” He praised the agency's 'full service' packages, which now include shopper marketing, thanks to the recent acquisition of Warl in the UK. He believes that as VCCP was “Born in the digital age,” it's the “Most digital of the full-service agencies.” He went on to say that the agency's 'secret' what its “Outstanding people,” who produce “Properly integrated campaigns for clients such as easyJet, O2 and Comparethemarket.com.”

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Christopher Satterthwaite: chief executive at Chime Communications

Other Chime divisions that reported growth included the PR division (11% growth in operating profits), its healthcare communications division (a 71% increase), and the insight and engagement team, which reported a 29% increase. Elsewhere, however, news has been less encouraging, with the sports and entertainment division, which includes Fast Track, decreasing like-for-like by 37% in 2013, though it has been noted that this is probably due to the absence of a major sporting event, such as the World Cup or the Olympics.

Christopher Satterthwaite commented on the company's reduced overall profits by comparing their profit portfolio to a staircase

Satterthwaite commented on the company's reduced overall profits by comparing their profit portfolio to a staircase. He said that their sport business, accounts for 50% of their business, so “Profits decline then make a major step up in even years.” He says they are expecting a similar growth this year that they experienced in 2012 because of the World Cup and the Commonwealth Games. “Momentum is building towards the 2014 FIFA World Cup and the Commonwealth Games,” he says, “And the value of contracts won so far for these events is expected to exceed the operating income achieved from the 2012 Olympics.” He is optimistic overall, stating that the company has “Continued to focus on developing all areas of the business,” and he is pleased by the progress shown in the Advertising, Healthcare, PR and Insight and Engagement divisions, which all “Reported double digit growth.”

Official VCCP Website

Benjamin Hiorns is a freelance writer from the UK who has been secretly trying to pronounce 'Satterthwaite' without spitting for a good 30 minutes now.

 

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