Aegis half-year profits up as group outperforms market

LONDON - Aegis Group, the UK media group, outperformed the market in the first half of 2007 and reported pre-tax profit up 8.7% to £41.3m, from £38m a year earlier.

The first-half pre-tax profit figure was ahead of expectations of £40.6m. The group, which owns media planning and buying agency Carat, reported organic revenue growth of 9.6%, beating analysts' forecasts of 7.7%. Revenue was up 7.7% to £499m, beating forecasts of £485m.

Aegis Media and its market research company, Synovate, delivered revenue growth ahead of their markets, at 9.8% and 9.3% respectively.

The strong growth came on the back of strong new business performance in the six months to June 30, with wins totalling £740m. They include 20th Century Fox internationally and Johnson & Johnson in EMEA.

Robert Lerwill, chief executive officer of Aegis Group, said: "Aegis Media and Synovate both continue to outperform, growing almost twice as fast as their markets.

"New wins, our world-class digital credentials and highly innovative work have put Aegis Media ahead. Synovate has had particular success in winning business both globally and locally."

Looking ahead, Lerwill, said the group was on course to outperform the market in the second-half of 2007.

He said: "Today's results show that we're on the way to delivering another good year in 2007, in line with our expectations. Revenue momentum is strong, and record net new business follows our best ever full-year performance in 2006."

The interim results come after Vincent Bollore, the chairman of French advertising group Havas, last month upped his stake in Aegis again despite his ongoing battle with the company to get his chosen representatives on to the board.

Bollore has edged his stake in Aegis up to 29.9% from 29.1% previously. His holding brings him preciously close to the 30% mark which means he must launch a bid for the company, which has resisted his efforts for board representation several times.

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