Merrill Lynch reduced its 2001 pre-tax profit forecasts sharply from £67.2m to £54.5m, a cut of 19%. It reduced its 2002 prospects by 25% from £75.9m to £57.1m.
The cut in forecasts saw Aegis fall 2.5% in early trading before edging back up to 90p, down just 1.1% on its previous close of 91p.
Headline earnings per share were also cut 19% for 2001 and 25% for 2002, to 3.34p from 4.13p and to 3.36p from 4.5p respectively.
Merrill Lynch said that its reduced expectation related to setbacks in Aegis's exhibitions business and its market research operations.
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