±±¾©Èü³µpk10

The fall in pre-tax profit to £63.3 million came despite an increase in turnover of 7 per cent to £6.1 billion last year. A fall in operating margins was fuelled by the economic crisis in Argentina, which accounted for £10 million of £18.6 million in exceptional costs.

The Carat media buying network, which provides 84 per cent of Aegis' profits, won £1.2 billion in new business last year, including the £420 million consolidated Philips business. However, the business' profits were hit by the advertising slowdown and the start-up costs associated with new clients such as the pharmaceuticals giant Warner Lambert.

The market research arm, Aegis Research, experienced a 40 per cent drop in operating profits to £9.4 million.

Shares in Aegis fell 4.97 per cent to 108.5p as the news was announced, having risen strongly in the wake of last week's £2 billion merger between Publicis Groupe and Bcom3. That deal left Aegis as the obvious takeover target for holding companies looking to boost their own worldwide media offerings - with Omnicom the favourite to respond to WPP's acquisition of Tempus last year.

But Aegis' chief executive, Doug Flynn, repeated denials that the company would lose its independence. "There is no compelling reason at all for us to sell,

he said.