Financial Results
Interim Results
28 August 2008
Best-in-class organic revenue growth of 8.2%; strong double-digit growth in turnover, revenue and profits
Financial highlights
- Best-in-class organic revenue growth of 8.2%; Aegis Media and Synovate both ahead of their markets
- Revenue up 21.8% to £607.6m (H1 2007: £499.0m) and up 13.7% on a constant currency basis
- Underlying operating profit up 16.7% on a constant currency basis to £65.0m (H1 2007: £48.6m); group margin ahead at 10.7% (H1 2007: 9.7%)
- Underlying pre-tax profit up 15.4% on a constant currency basis to £56.2m (H1 2007: £41.3m)
- Operating cash flow more than doubled to £93.3m (H1 2007: £45.7m); working capital improvement of £14.7m
- Underlying diluted earnings per share up 13.8% on a constant currency basis to 3.3p (H1 2007: 2.4p); statutory diluted earnings per share up 18.2% to 2.6p (H1 2007: 2.2p)
- Dividend up 14.3% to 0.96p
- Reported results benefited from strength of the Euro (33.0% of group revenue)
Strategic highlights
- 29% of Aegis Media revenue from digital, up from 26% in 2007, with 3,300 digital staff globally today
- 14 acquisitions made in the period, with a particular focus on fast-growing search engine marketing at Aegis Media and emerging economies at Synovate
- Synovate extends emerging markets footprint with 12 new markets in Latin America and Africa
| £m | At reported rates | Constant currency | ||
|---|---|---|---|---|
| H1 2008 | H1 2007 | Change | change | |
| Turnover | 5,332.3 | 4,435.4 | 20.2% | 11.1% |
| Revenue | 607.6 | 499.0 | 21.8% | 13.7% |
| Underlying results* | ||||
| operating profit | 65.0 | 48.6 | 33.7% | 16.7% |
| pre-tax profit | 56.2 | 41.3 | 36.1% | 15.4% |
| diluted eps | 3.3p | 2.4p | 37.5% | 13.8% |
| Statutory results | ||||
| operating profit | 56.0 | 47.3 | 18.4% | 2.9% |
| pre-tax profit | 47.4 | 40.0 | 18.5% | 0.0% |
| diluted eps | 2.6p | 2.2p | 18.2% | (0.9)% |
| Dividend per share | 0.96p | 0.84p | 14.3% | - |
Robert Lerwill, CEO of Aegis, said:
“Our financial performance has been good in the first half of
2008. We achieved double-digit growth throughout our income
statement with revenue up 13.7%, operating profit up 16.7% and
pre-tax profit up 15.4%. Our organic growth remains ahead of the
wider industry at 8.2%, and our strategic progress has been good -
increasing our footprint in digital and emerging markets and making
gains in operational efficiency.
“We achieved these results despite a trading environment that is becoming tougher - with signs of slowing demand, particularly in Spain, the US and the UK. Consequently our revenue outlook for the second half of 2008 is less certain. We anticipate a lower rate of market growth than in the first half and are therefore taking some early steps to tighten our cost base in a number of markets. Nonetheless, we remain confident of delivering a result for the year at the upper end of market expectations.”
For further information please contact:
| Aegis Group plc +44 (0) 20 7070 7700 | Financial Dynamics +44 (0) 20 7831 3113 |
| Robert Lerwill, Chief Executive Officer | Tim Spratt |
| Alicja Lesniak, Chief Financial Officer | Charlie Palmer |
| Charlotte Elston, Communications Director | |
| Hannah Bailey, Communications Manager |
Our interim results presentation will be webcast live today at 09.00 (GMT) and available afterwards for replay and download at www.aegisgroupplc.com.