Group Press Releases
AGM Statement
23 May 2001
At today's AGM of Aegis Group plc the Chairman, Lord Sharman, made the following statement:
"Despite the well documented slowdown in world advertising spend, the group's turnover and revenue continued to grow satisfactorily in the first four months of 2001, as new business won from last year flowed through. The current year has also started well in new business terms, with net new wins of some $850 million, $500 million of which came from the US.In common with the industry generally, we are now seeing reductions in marketing budgets from a number of established clients. This is particularly marked in the US where there has been a widely reported slowdown in the economy, most noticeably in the high tech sector. Europe continues to trade well albeit at slightly lower growth rates than seen earlier in the year.
The Group continues to develop its robust business model by taking a prudent view on individual market opportunities. We are investing where new business flow is strong, but equally we are reducing our cost base where appropriate. In Carat USA, for example, we continue to build our client service capability for the substantial new revenue stream that commences in July. The cost impact of this, and similar investments, will arise mainly in the first half of 2001.
Aegis Research continues to increase its revenues but suffered some margin pressure in the US in the first quarter. Our Asian and the smaller UK operations continue to perform well. Investment in market research continues apace and today we announced the acquisition of two companies, extending our market research presence to a further 24 countries in Europe, the Middle East and North Africa. Aegis Research now has the foundations of a truly global market research network.
The Aegis Group has the strength to continue its programme of investment in infrastructure, products and technology at a time when many of its competitors are being forced to cut back. Although the immediate trading environment is more difficult than previously anticipated, we remain confident that the company will continue to generate good growth in billings, cashflow and profits and capitalise on its valuable market positions."
