Chime Communications blames contract delays for profit warning

18th Nov 2014 13:46

Communication and sports marketing group Chime Communications blamed contract delays for an annual profit warning, hitting its shares.Chime said two significant contracts in its sport and entertainment division were now likely to start in 2015 rather than this year, which it said would affect 2014 profits.However, it still expects the division to boost operating income by more than a quarter at an improved margin, helping to increase group operating profit by more than a fifth."Growth opportunities are strong and profit guidance for 2015 remains unchanged," it said, adding that Chime had a strong outlook for 2016 following early contract wins for the Olympic Games in Brazil.Chief executive Christopher Satterthwaite said: "We have experienced very strong growth in 2014, although it is frustrating that two of the sport and entertainment contracts will now fall into the 2015 financial year. Whilst this will affect our profit projections for 2014, our prospects for 2015 remain very exciting."Shares fell 8.25p or 3% to 266.75p at 15:14 in London.