Investment: Aegis moves to calm investors
Wednesday 09 September 1998
Investors were not convinced. Aegis shares, which have fallen from a peak of 112p last month, only edged up 0.5p to 83.5p yesterday despite the company reporting a 13 per cent increase in first-half operating profits to pounds 24.1m.
Although Aegis clearly depends on overall advertising spending, it is also benefiting from the increasing trend towards using media planning agencies. The proliferation of television channels and magazines, not to mention the Internet, means that companies have to spend increasing amounts of time thinking about where to place their ads.
What's more, as an independent agency Aegis is able to move faster than its rivals, most of which are part of larger advertising groups. Stripping out acquisitions, organic sales growth was almost 9 per cent in the first half.
At the moment, Aegis is sticking to strategic bolt-on acquisitions, including spending pounds 15m on building up a network in the Far East. Longer term, however, Mr Davis still sees scope for consolidation in the media buying industry. Full-year profit forecasts of pounds 79.9m place the shares on a forward earnings multiple 23. Despite immediate worries, the shares offer good long-term value.
- 1 Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
- 3 Giorgio Armani criticises the way some gay men dress saying 'a man has to be a man'
- 4 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
- 5 Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
Katie Hopkins and The Sun editor are reported to police for incitement to racial hatred following migrant boat column
'Jihadi John': Isis executioner Mohammed Emwazi wanted to wage jihad in Somalia until his friends were betrayed and killed by al-Shabaab
Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...
£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£21000 - £24000 per annum: Ashdown Group: The Ashdown Group has been engaged b...