Shares in Lord Bell's Chime Communications are down 40% since the firm lost a US government contract. Photograph Rex Features
It has not been a great six months for Lord Bell's Chime Communications, parent to the Bell Pottinger lobbying and public relations empire. The latest "lobbygate" sting, conducted by the Bureau of Investigative Journalism, reminds one and all that they are often perceived to be at the shadier end of the public relations industry. It is worth noting that while many rivals accept the need for a public register of lobbying interests, Bell is not a fan of such a measure.
The latest media focus comes not long after Bell was forced to deny a perhaps tenuous link between certain of its US operations and companies that funded the curious activities of former defence secretary Liam Fox's close friend Adam Werrity.
Unwelcome attention, but not likely to trouble the share price. Some industry insiders argue the publicity may even generate new business.
More worrying for investors has been a big contract loss with the US government, believed to involve work for the State Department in Iraq and other trouble spots. Last month Bell admitted this work had "ended earlier than expected" prompting an urgent need to cut jobs and other costs. Profits, as a result, will be lower than anticipated. Shares are down 40% since June.
The message to the City has been that Chime remains confident it can replace much of its lost earnings with growth from its sports marketing division. The London Olympics will be a platform for this business.
There is another important factor in Chime's success that investors will be anxious does not end earlier than expected ? Lord Bell himself. Who else can get an audience with heads of state around the world?
He has always been a great asset, but is also increasingly a potential vulnerability for Chime. Bell had a triple by-pass in January and insists he remains "extremely active" and in "remarkably good condition". Investors will be keeping their fingers crossed for his rude health to continue.
Source: http://www.guardian.co.uk/business/blog/2011/dec/06/lord-bell-chime-communication-publicity
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