Sir Tim Bell’s quoted PR firm Chime Communications is buying KBH
Communications for pounds 500,000 cash and merging it with Lowe Bell
Good Relations, the revamped version of subsidiary Good Relations.
KBH, which lists The All England Lawn Tennis Club and Classic FM among
its clients, was founded in 1984 by Keith Hopkins. The group employs 11
people at its offices in Kensington, London. These will now move to
LBGR’s Russell Square offices.
In the year ending September 1995, KBH’s pre-tax profits were pounds
70,000. After exceptional items they stood at pounds 35,000 on a
turnover of just under pounds 1 million. KBH has net assets of nearly
pounds 50,000.
Under the terms of the deal, Hopkins, 66, will join Lowe Bell Good
Relations as deputy chairman on a three-year contract and Simon Pearson,
a KBH director, will join LBGR’s board of directors.
Hopkins will personally get about 80 percent of the cash being paid for
his firm. He said: ‘KBH is joining the Lowe Bell group at a time when it
is expanding and I’m really looking forward to joining the board. It’s
a brilliant deal for our people and I hope to make a massive
contribution.’
City analysts appear to believe Bell has paid a fair price for KBH,
though one expressed concern about its operating margins which he feared
were rather low.
‘Rubbish,’ said Bell. ‘We express profits as a percentage of our fee
income and on that basis we estimate that KBH’s profit margins are about
12.5 per cent. That’s just below our own which stand at about 14 per
cent.’
Sir Tim said Chime would continue with its expansion plans and is
looking to see a growth of about ten to 15 percent per year. But he said
the firm would not try to build an international network.
