Financial Results

Interim Results

Forecasting full-year underlying profit in line with market consensus

• Underlying operating profit at £51.1m, down 16.5% on a reported basis, and 28.9% at constant currency, held up well in a difficult market environment
• Revenue was up 4.8% on a reported basis, down 9.2% at constant currency; organic revenue decline of 10.8%
• End-of-year cost actions taken significantly mitigated revenue falls, although differences in phasing meant Synovate made a small mid-year loss of £3.2m
• Results reflect a positive currency impact of 15.4% on reported revenue; 17.4% on underlying operating profit
• Underlying group operating margin was 8.0%, compared to prior half-year of 10.1%, with a relatively stronger Aegis Media performance partly offsetting the loss in Synovate
• Underlying pre-tax profit is stated before £36.9m of adjusting charges which are deducted from the statutory results: restructuring costs of £15.7m, acquisition-related amortisation of £12.4m and negative fair value adjustments of £8.8m
• Aegis Media achieved record net new business of $1,845.3m, and also benefited from a strong digital mix at 31% of revenue and an earlier phasing of cost reduction programme
• Covenant position remains strong and headroom on banking facilities comfortable
• First half performance, together with forecast revenue and accelerated run rate of cost improvements in the second half, underpin our forecast for full-year profit to be in line with current market consensus
• Interim dividend held at 0.96p, reflecting first half underlying performance and confidence in forecast outlook

* Throughout the commentary in this announcement, results are stated on an underlying basis unless otherwise indicated. See page 2 for more detailed definition. Percentage movements are given at reported exchange rates unless otherwise stated.

John Napier, chairman and interim chief executive officer, said:

"We developed a clear strategy to perform resiliently in a downturn, which has delivered in more difficult market conditions than forecast. The rate of delivery of savings is increasing, and with strong new business wins in Aegis Media and an improved Synovate secured net revenue position, we expect to deliver a full-year profit outcome in line with the current market consensus. The Board is pleased to maintain the interim dividend."

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Our interim results presentation will be audiocast live today at 09.00 (GMT) and available afterwards for replay at www.aegisgroupplc.com.

View the full PDF version of 2009 Interim Results

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