Aegis expects flat growth in 2002

LONDON - Aegis Group, owner of media-buyer Carat, has forecast flat-to-negative growth at the company for 2002, as a result of continuing weakness in the advertising market.

The forecast came as the company released its pre-closing statement, ahead of its full-year results for the 12 months to December 31 2001.



The company, the largest independent UK media-buying group, said that although market conditions remain fragile, there are indications that the trend in client advertising spend has now stabilised and that Carat's trading performance remains in line with market expectations.



Carat made a good start to 2001 with £796.6m in net new billings in the first half of the year, as a result of a particularly strong performance in the US.



However, the rate at which new business grew slowed during the second half of the year and Carat reported net new business for the first 11 months of the year of £1.1bn.



Aegis said it has helped to achieve its margins by a cost-reduction programme announced at its half-year results, and which the company hopes will help drive its performance in 2002.



The company is set to be affected by the collapse of Argentina's economy and has set aside £10m to offset losses caused by the crisis.



Aegis, which saw its share price fall 0.24% this morning to 102.5p, will announce its full-year results on March 12.



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