Aegis, Cello and Ipsos Report Strong 2007 Results

Media and market research groups Aegis and Cello, and global MR agency Ipsos have all beaten industry analyst predictions and recorded healthy profits for 2007.

Aegis, which owns MR firm Synovate, recorded a 16% increase in full-year pre-tax profits to £133m. Organic revenue growth was 9.8% across the group, and 8.9% for Synovate.

'We are cautious about the macro-economic outlook for 2008, but currently relatively optimistic about our own prospects,' said CEO Robert Lerwill. 'Trading so far this year has been healthy and we currently expect to deliver a further good year in 2008.'

Aegis made a total of 17 acquisitions during 2007, paying £79.8m in initial considerations with a further £48.8m payable up to 2011 depending on performance targets being achieved. Recent buys have included UK retail tracking business SPSL (www.mrweb.com/drno/news7709.htm ), Canadian digital marketing and analysis agency Mindblossom (www.mrweb.com/drno/news7620.htm ), New Zealand-based MR agency Research Solutions (www.mrweb.com/drno/news7531.htm ), and digital marketing specialist Ion Global (www.mrweb.com/drno/news7126.htm ).

UK-based group Cello has seen full-year headline profit rise 28.8% to £7.6m from £5.9m in 2006, and turnover rise 45% to £108.3m. The group's research and consulting arm recorded revenue up 37% on the year to £50.9m, and headline operating profit rising 34.8% to £6.2m on operating income of £32.9m. Around 60% of Cello's business is in market research, where it has made a number of acquisitions; most recently snapping up consumer agency 2CV (www.mrweb.com/drno/news7483.htm ) and youth market research and creative agency Face (www.mrweb.com/drno/news7798.htm ).

The firm's like-for-like operating income in the first two months of the year was up 13.8% and Chairman Kevin Steeds commented: 'These results represent another excellent year for the group with significant growth in all key financial metrics. Once again, we are particularly pleased with our like-for-like operating income growth which significantly exceeds overall market growth rates.'

Ipsos meanwhile has posted a net profit increase of 20% to EUR 46.7m, and is predicting that revenue will exceed the one billion euros mark during 2008.

For 2007, operating profit rose 13.9% to EUR 90.6m, and revenue increased 8.2% to EUR 927.2m. The firm says that the highlight of the year was the step forward taken by developing countries, which now account for around 17% of the global market and are set to exceed 20% within two years. Ipsos already derives one quarter of its revenue from these markets.

Gross margin climbed from 59.9% to 60.6%, which the firm says reflects the transition to online research in North America, and especially in Europe where online grew by 40%. Ipsos also announced today that it is to acquire US media and legal specialist Monroe Mendelsohn Research (www.mrweb.com/drno/news8109.htm ).

The firms are on the web at www.cellogroup.co.uk , www.aegisplc.com and www.ipsos.com .

Earlier this month, communications group Chime announced rapid growth for its research division in 2007, with operating income up 64% to £7.7m and an increase in operating profit of 37% to £1.4m (www.mrweb.com/drno/news8079.htm ).

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.