Group Press Releases
Pre-Close Trading Statement
21 December 2005
Aegis Group plc, the marketing services group, is today releasing its regular trading update ahead of its close period.
After eleven months of trading, our underlying results remain in line with expectations. This is despite slightly weaker than anticipated growth in adspend in many of our European markets and strong price competition in traditional media. Offsetting these factors, however, are better than expected growth in our specialist media businesses and first time contributions from acquisitions made during the year.
Group reported profits for 2005 will include a number of non-trading items. We will expense some £1.6 million of costs associated with the two unsolicited approaches we received in the second half of the year. In addition, the rise in our share price in the second half will result in a higher than anticipated charge for share based incentives.
Aegis Media
Our media operations are performing well, despite the slightly slower than expected market growth. Competition in traditional media planning and buying continues to be intense, but we are benefiting from our investment in specialist media, communications planning and non-traditional activities, including digital. These services are becoming ever more important in helping clients to understand and reach their consumers, and are driving much of our media growth.
North America and Asia Pacific continue to grow well. This reflects both market share gains and market conditions. Performance in Europe continues to be mixed, but overall we are making steady progress.
Synovate
Synovate continues to demonstrate excellent organic growth. We are making progress globally, with particularly good growth in the Americas and Eastern Europe.
As one of only a few truly international market research providers we have a winning edge in competing for business. The strength of our network and the wide range of proprietary solutions now make Synovate the business partner of choice for many of the world's leading marketers.
Outlook
Looking ahead, we expect to make further progress in 2006. We will continue to benefit from our focus and strong strategic positions in our markets, allied to solid market prospects and the full year effect of the acquisitions made in 2005.
We will be announcing preliminary results for year to 31 December 2005 on 7 March 2006.
For further information contact:
Charlotte Elston
Aegis Group plc
+44 (0) 20 7070 7708
Tim Spratt
Financial Dynamics
+44 (0) 20 7831 3113
