Shares in marketing and media specialist Aegis hit a 12-month high as the group beat City expectations by registering 9.8 per cent organic revenue growth – significantly ahead of its peer group average of 5.8 per cent. And, with the Olympics and US presidential elections to be held this year, management is confident that they can deliver continued revenue and profit expansion in 2012.
As planned, Aegis continued to grow its international and digital offerings, largely through acquisitions – indeed, an aggregate £75m was spent on 18 deals in 2011. And these investments are paying off, with international clients now accounting for a third of group sales, and digital revenues representing 35 per cent of sales. The standout growth region was Asia Pacific, where sales surged 81.7 per cent to £220.6m, while American sales were also strong, up 17.6 per cent to £217.3m.
Aegis' global presence and its stronger digital capabilities have helped win impressive new business, too, with new clients such as Disney Parks and Resorts and Sears joining the roster. Aegis also won a substantial contract with General Motors – which has an annual media spend of $3bn – in January.
Analysts at Peel Hunt are forecasting 2012 pre-tax profits of £187.3m, and EPS of 11.6p (£154.8m and 9.8p in 2011).
AEGIS (AGS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 177p | MARKET VALUE: | £2.07bn | |
| TOUCH: | 176.8-177p | 12-MONTH HIGH: | 184p | LOW: 112p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 27.2 | |
| NET ASSET VALUE: | 39p* | NET DEBT: | 28% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 9.35 | 132 | 7.90 | 2.30 |
| 2008 | 10.4 | 125 | 7.30 | 2.50 |
| 2009 | 1.35 | 91.2 | 5.50 | 2.50 |
| 2010** | 0.94 | 33.5 | 1.60 | 2.75 |
| 2011 | 1.14 | 106 | 6.50 | 3.20*** |
| % change | +21 | +218 | +306 | +16 |
Ex-div: 13 Jun Payment: 4 Jul *Includes intangible assets of £1.2bn, or 103p a share **Restated on a retained basis to exclude Synovate business ***Excludes special dividend of 17.08p | ||||
