Strong Growth at Synovate
March 9 2005
Aegis Group plc has announced strong preliminary results for 2004, acknowledging a good contribution from its market research arm, Synovate, which almost doubled revenues in the EMEA region and added 24.4% to turnover worldwide. Organic growth at 8.3% is well above the estimated industry average of 4.25%.
Aegis' organic revenue growth was 8.4% at constant currency (2003: 4.7%), and its underlying operating profit was up 19.1% to £100.3m (2003: £84.2m), with a margin of 15.5%. The dividend is up 9.8% to 1.45p per share for the full year. Aegis CEO Robert Lerwill says the figures represent 'an excellent performance across the board, with a significant contribution from initiatives undertaken in media and research over the last few years'.
| Aegis Group highlights: |
| |
Year ended
31 Dec 2004
|
Year ended
31 Dec 2003 |
Reported
Growth
|
Constant Currency
Growth |
| Revenue |
£747.0m |
£648.8m |
+15.1% |
+20.9% |
| Gross Profit |
£647.5m |
£572.5m |
+13.1% |
+18.3% |
| Underlying Op’ Profit* |
£100.3m |
£84.2m |
+19.1% |
+23.8% |
| Underlying PBT* |
£93.9m |
£80.5m |
+16.6% |
+22.5% |
| |
Synovate Results and Review
Synovate's revenue was up 24.4% (35.5% at constant currency) in 2004, to £272.4m from £218.9m. Organic growth accounted for 8.3% of this, nearly twice the overall market rate; and the year-end order book is said to be well ahead of that for 2003. The company gives its ability to provide 'consistent research feedback from around the world using standard methodologies' as a key driver of growth.
Consumer research is Synovate's largest business sector. Product Quest, its proprietary product testing protocol, won a number of global and international commissions from well known brands during the year and will be extended in 2005.
Highlights in the
healthcare division include the integration of ISIS Research, and the combining of the ISIS cancer therapy monitor with Synovate's own syndicated oncology product to create the industry's first global cancer therapy monitor with over 63,000 patients.
Automotive research also saw good growth in 2004, including the major win of a syndicated study for the North Auto Dealers Association of America.
The company says that the acquisition of Symmetrics in March 2004 offers it excellent growth potential, with Symmetrics tools and methodologies now in the process of roll-out around Synovate's international network.
Regions
In the
US and Latin America revenues increased in local currencies by 8.4% but decreased 2.6% in Sterling due to the weak dollar, from £116.7m in 2003 to £113.7m. The relocation of the company's US head office to Chicago is said top have disrupted North American operations. Areas of particular potential being developed in the US include online data gathering: Synovate says it will leverage its existing skill base to create panels worldwide.
Asia-Pacific operations showed good growth with revenues up 5.7% to £46.6m (16.4% growth in constant currency), buoyed by significant new business wins from Japan and China. The company now has over 1,000 full time research professionals operating from 13 offices in Asia-Pacific making it one of the largest research businesses in the region.
Synovate's operations in
Europe, the Middle East and Africa traded strongly and revenues grew by 93.3% (99.5% in constant currency) from £58.0m in 2003 to £112.1m in 2004. Central and Eastern Europe in particular saw massive sales growth as multinationals seek to establish footholds in emerging economies. Highlights elsewhere in EMEA were the acquisition of South Africa's Proactive Insight, in June, and the UK's TRBI, in January 2004.
Synovate is online at
www.synovate.com and Aegis at
www.aegisplc.com
All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.
