Chime rings changes at top with departure of Howell

Chime Communications is to part company with its chief executive, Rupert Howell, the PR and advertising group revealed yesterday as it confirmed talks with rival WPP about combining some of their advertising operations.

Reporting a steep fall in half-year profits, Chime said its markets were finally showing signs of improvement. Pre-tax profits were £4.6m before exceptional items for the six months to 30 June, down from £8.4m last year. The bottom line loss was £6.1m.

Lord Bell, the chairman, said: "We believe the downturn has bottomed out and we expect the second half of 2002 to be better than the first half.... The evidence is that for us the worst should be over. However, the volatility of the stock market and the political risk of military conflict are still present."

Mr Howell will step down as chief executive in November. He founded the HHCL agency, which came up with thetelevision commercials for the Tango soft drink ("you've been Tangoed").

Chime acquired HHCL in 1997 and Mr Howell became chief executive of the group. Mr Howell, 45, said he was leaving because he wanted to start his own business again. He will be replaced by Chris Satterthwaite, the current UK managing director. Lord Bell said there had been no boardroom falling out and that he may even invest in Mr Howell's new venture.

"I've lost a good guy but I've got a good guy to replace him so this is not a setback. Rupert and I were close friends before I bought HHCL and we'll be close friends after he leaves," he said.

Lord Bell declined to comment on the detail of the company's talks with rival WPP.

Analysts believe that Chime will sell a minority interest in HHCL to WPP, which would merge the operation with its Red Cell network.