NEWS17 March 2011

Aegis reports ‘strong recovery’ at Synovate

Financials UK

UK— Aegis has reported a strong recovery in performance at its research agency Synovate in 2010, with gross revenue up 9.8% year on year to £572.6m. Organic growth was 5.9%.

Net revenue was up 9% to £350.7m while underlying operating profit saw nearly 24% improvement, ending the year at £45.6m.

North America performed “extremely well”, said Aegis CEO Jerry Buhlmann. Sales and gross revenue increases were healthy in Latin America, while Asia Pacific sales and revenue growth was into double digits, Buhlmann said.

Europe was a mixed bag, with market conditions less buoyant overall than elsewhere. Germany, Italy, the Netherlands, Russia and Turkey were strong, while Greek and Spanish performances reflected the ongoing economic challenges faced by those countries. The UK, too, was difficult – with challenges exacerbated by a sharp decline in public sector spending, Buhlmann said. Business in the Middle East and Africa was solid.

Alongside the previously announced acquisition of Russian research firm Comcon, Aegis said Synovate had also bought a 51% stake in UK-based FMCG sales data analysis firm SalesOut in January last year. SalesOut, in turn, acquired JPA Europe in November.