Unveiling its full-year 2008 financial results today (19 March), Aegis said group-wide underlying pre-tax profits were up 25.7%, to £166.8m. However, after reorganisation and write-down costs, pre-tax profit fell 5.4% year on year, to £124.6m.
The company said Aegis Media UK had posted "excellent" results "in market conditions that became increasingly challenging". It said the improvement was principally driven by Carat and Vizeum, although it added that "very strong" organic revenue growth in the first half of 2009 tailed off in the second half of the year. It did not, however, break out Aegis Media UK's financials.
Aegis Media EMEA increased revenue 24.8% year on year to £588.1m, up 11.5%. Aegis Media global revenues of £823.8m were up 22.3%, or 10.0% on a constant currency exchange rate basis, with pre-tax profits of £157.9m up 17.5%.
Aegis chief executive John Napier has denied that he had discussed a merger between Aegis and Havas with Vincent Bollore, who owns 29.9% of Aegis and is chairman of Havas. In recent months, it is understood Bollore has been working on a 90p per share bid, but delayed his move after Aegis decided it may sell its market research arm Synovate.
Napier said weaker market conditions in 2009 had made it necessary to reduce costs and cut jobs. He said "this involves a regrettable, but necessary headcount reduction of just under 5% of our workforce, spread across more than 40 countries". It is thought 70 jobs will go at Aegis UK.
Napier concluded: "This is a good set of results in increasingly difficult market conditions. We have planned and initiated firm action to improve efficiency and reduce costs across more than 40 countries."
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