Group Press Releases
Extract From the Chairman’s AGM Statement
26 May 2004
The following is an extract from the chairman's statement at today's AGM of Aegis Group Plc.
"The first four months' trading has been positive with the advertising market recovery taking hold in all of the Group's key markets. The Group's revenues are comfortably ahead of last year in all three geographic regions, with our market research business carrying forward a strong order book. Trading for the period is ahead of budget in constant currencies, and although the current strength of the pound impacts our results when converted into sterling, the Group's relatively high contribution of revenues from the euro zone is offering a measure of protection.
Group revenues in the first quarter were 10.9% ahead of the same period in 2003, with organic revenue growth on a like for like basis of 4.8%. Year on year organic revenue growth at Aegis Media was 5.3% and 4.0% at Synovate.
Net new business for Aegis Media in the first quarter was well ahead of last year, although not yet back to the levels of 2002. Both Carat and Vizeum are experiencing a better new business pipeline. The group won net new business of $285 million in the quarter compared with $103 million in the same period last year. This has been achieved through both higher wins and lower losses than last year, with Europe particularly showing a marked improvement.
Initiatives taken over the last 18 months in Vizeum, Posterscope, Interactive and Synovate Healthcare are all contributing to strong revenue growth. Organisational changes made within Aegis Media continue to produce improved results and opportunities, with Vizeum beginning to make real progress. The process of integrating the healthcare research business into a single worldwide operation is under way and Synovate's strengthened European management team is identifying further opportunities for expansion and efficiency gains.
The outlook for the advertising market is marginally more positive than our previous forecasts.
The Board remains confident that the hard work of our people and the fruits of our investments and initiatives, together with the gradually improving market conditions will result in a satisfactory result for the year."
For further information contact:
Jeremy Hicks
Chief Financial Officer, Aegis Group plc
+44 (0) 20 7070 7700
Richard Walters
Head of Communications, Financial Dynamics
+44 (0) 20 7831 3113
Tim Spratt, Charles Palmer
Financial Dynamics
+44 (0) 20 7831 3113
