Bell struck with another setback

LORD BELL, who has seen one of his senior executives poached by Downing Street, suffered a further indignity when he revealed that his company remained stuck in the red.

The company, Chime Communications, made a £5.35m loss in the first half of the year, only slightly improved on the £6.1m deficit recorded for the same period of 2002. It came after an £8.3m loss on the disposal of its HHCL advertising agency. First-half operating income slipped slightly to £26.9m.

Last month Dave Hill, a director of the Chime agency Good Relations with long-standing Labour party connections, was appointed to replace Alastair Campbell as head of communications at Number 10.

He immediately faced criticism over his 95,000 share options in Chime - which he has since forfeited - and his client roster of major companies, including the GM firm Monsanto.

It is thought likely he will return to Good Relations after his stint at Downing Street is complete.

Lord Bell, famously the favoured PR adviser for former Prime Minister Lady Thatcher during the Eighties, described the outlook for the public relations industry as 'dull', 'weak' and 'depressed'.

The company, owner of the Bell Pottinger and Good Relations PR agency brands, survived a disastrous profit warning last year when the shares slumped 75% after the company breached banking covenants.