Ad boom boosts Abbot Mead

Abbott Mead Vickers, the advertising agency group, yesterday became the latest company to benefit from the advertising boom as it reported first half profits before tax up 30 per cent to pounds 6.1m.

Jeremy Hicks, group finance director, said advertisers were on average spending 8 per cent more than the previous year. The company's performance had also been helped by the pounds 100m of new business the group has won so far this year. Abbott Mead has recently won new accounts from BT, Volvo and Air Lingus.

Responding to speculation by City analysts that Omnicom, the advertising network which owns 26.5 per cent of Abbott Mead, would try and buy out the rest, Mr Hicks said: "If Omnicom were to come along and offer enough, we'd be quite happy to talk to them. But the arrangement works well at the moment." Abbott Mead shares closed up 15p at 366p.