Aegis enjoys 9.9% revenue growth for 2011
Aegis Group has released its preliminary results for 2011 with group organic revenue growth of 9.9% (2010: 5.3%), including 12.0% in Q4, and group underlying operating margin of 17.4% (2010: 16.1%).
The company saw a strong performance from digital in faster-growing regions and North America. It also enjoyed a record-equalling year in net new business, with $2.7 billion in billings (2010: $2.0 billion)
Aegis now able to boast that it is unique, scaled media and digital communications specialist, following sale of Synovate for enterprise value of £525 million. Aegis has had a continued focus on acquisitions, with around £75 million spent in initial consideration on 18 bolt-on acquisitions and investments in 2011.
The group was been appointed as General Motors Co. (“GM”)’s global strategic media partner in January this year, with anticipated annual global media spend of $3 billion
Aegis said proposed total dividend (excluding special dividend) increased to 3.20p, from 2.75p in 2010, including proposed final dividend of 2.01p. The group expect to deliver continued organic revenue growth and further improvement in underlying operating profit in 2012.
Jerry Buhlmann, chief executive officer of Aegis Group, said: “Aegis Group delivered a very strong performance in 2011, reporting sector-leading organic growth, positive margin progression and a record-equaling year in net new business wins of $2.7 billion.
“The successful sale of Synovate represented the largest structural change in our history and gives the Group increased flexibility to move ahead with our programme of targeted acquisitions and investments. We completed 18 acquisitions and investments in 2011, and they have improved our core capabilities and positioning in a number of key geographies. This is in line with our strategy to increase revenue contribution from digital, faster-growing regions and North America.
“All these achievements, coupled with recent successes, including our appointment as GM’s global strategic media partner, leave us well placed as the world’s leading specialist media and digital communications group. We are better positioned than ever before to support our clients in re-inventing the way their brands are built.
“We are optimistic about the outlook for the advertising sector in 2012, supported by key sporting events and the US Presidential Elections, and we anticipate further success for the group in the year ahead and beyond. We expect to continue delivering sector-leading organic revenue growth which we expect to convert into further margin progression and earnings enhancement for our shareholders over time.”