Year-to-date Revenue Drops 11.5% at Synovate

In the UK, Aegis-owned Synovate has posted an 11.5% drop in organic revenue for the first nine months of the year, while reporting a 9% year-on-year decline for the third quarter.

However, according to a trading update, Aegis says the trend in Synovate's revenue and sales has improved, and by the end of the third quarter, the division was showing a strong sales order book.

Chairman and interim CEO John Napier said Synovate's problems were caused by customers deferring rather than cancelling orders.

'I'm reaffirming my forecast that Synovate will return to profitability and is returning to profitability as we speak,' he said.

For the marcoms group, revenue at Aegis rose by 1%, while organic revenue fell 10.8% in the first nine months of the year.

'Our financial position remains strong. At yesterday's close of business, we had committed headroom of £160m within our central facilities,' he stated. 'Our strategy to perform resiliently in a downturn has continued to deliver and we are pleased to confirm further progress in a difficult and challenging market environment.'

Aegis is nearly 30% owned by Vincent Bollore, the French industrialist who is also a controlling stockholder and Chairman of French ad agency Havas. Speaking at an investor conference in Barcelona yesterday, Napier confirmed that there is no substance in the speculations that a merger with Havas would take place.

Web sites: www.aegisplc.com and www.synovate.com .

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

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