Aegis up 5.8% to £1.45 billion in 2010

Aegis reported results ahead of expectations last week, with organic revenue up 5.8% year on year to £1.45 billion in 2010.

The company, which owns Carat and Vizeum, is also positive about 2011, predicting revenue growth “at least in line with the level” seen in 2010.

However, the media buying group reported a 25% fall in pre-tax profits from £91.2 million to £68 million, primarily due to a £25 million exceptional charge from debts due from a former client.

Aegis’ underlying pre-tax profits were up 7% year on year at constant currency rates to £162 million (taking out the one-off charge and other exceptionals). The group’s share price rose 0.72%, about 1p, to 134.6p in trading last Thursday morning.

The Aegis Media division, which accounts for 60% of group revenues, reported organic revenue growth of 5.7% in 2010 to £886 million. Operating margin at the division also increased to 18.6%, while operating profits were up 10% on a constant currency basis to £164.7 million.

Aegis Media’s Carat issued its latest report on global advertising expenditure for this year, upgrading its August 2010 forecast of 4.7% growth to 5.7%.

Aegis’ research division Synovate returned to growth in 2010, with organic revenue up 5.9% to £572 million. Operating profit rose 19% to £45 million.

Jerry Buhlmann, Aegis chief executive, said: “Looking ahead, despite limited medium-term visibility, we have started 2011 with increased confidence. While we expect to continue to face a demanding and competitive market environment, Aegis is well placed to make continued strong progress.”

Net debt was £331 million at the end of 2010.