Aegis has delivered an optimistic trading update this morning, buoying investors’ confidences ahead of its close period, despite several uncertain forecasts.
The media and communications group states that, after five months trading, overall results are in line with expectations outlined at its AGM in May (see
Siemens Wins £2bn Deal From BBC Technology).
The company’s Synovate global research network saw all regions continue their strong performance, with the Americas and Central & Eastern Europe proving particularly strong.
In Aegis Media, the company saw healthy trading in the Asia-Pacific region, and in certain parts of Europe – particularly Spain, Central & Eastern Europe and the Nordic countries.
Elsewhere, the group’s US marketing spend has continued to rise in line with expectations, while Isobar, the company’s online business, has delivered sustained growth.
Aegis states that there will be a higher finance charge applied to its first half 2005 results, following increased acquisition payments, but that a higher proportion of profit is expected to occur in the second half of the year, compared with 2004.
The group will report its first half results for 2005 on 6 September, prepared using the International Financial Reporting Standards (IFRS) for the first time. Looking ahead, the board states that a “satisfactory” outcome is expected for the full year, despite “patchy” adspend market growth in some European countries.
Last month saw Aegis further extend the reach of its research arm, Synovate, with the acquisition of French market research group, ARTeam. The purchase was made for an initial consideration of £3 million, with a deferred payment over three years of up to £4.14 million (see Aegis Buys French Research Group).
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