Aegis reports 22% profit fall

Aegis has reported a 21.8% fall in underlying pre-tax profits for 2009 to £149.3 million, and appointed Jerry Bulham as its new chief executive.

Organic revenue at the marketing and communications group was down 9.7% to £1.35 billion, with underlying profits down 15% to £170 million.

Aegis Media “performed robustly”, the group said, achieving record net new business of $2.7 billion.

Bulham’s appointment gives Aegis a chairman for the first time in more than a year, following the departure of Robert Lerwill. He takes up the position on 1 May and has been handed a £175 million for new acquisitions.

John Napier, chairman and interim chief executive officer, said: “We performed well to meet market guidance in a tougher year than we initially expected. Aegis Media performed robustly and had excellent new business wins.

“Synovate recovered strongly in the second half, supported by an improvement in revenue and strong management actions on costs and overheads. We also strengthened our balance sheet and financial position, leaving Aegis well placed to meet the challenges of 2010 which we believe will bring modest growth.”