Good Growth for Self-Critical Ipsos

Global group Ipsos has published results for the full year 2006 showing organic growth of 6.5%, above the industry average but below its own high expectations. Revenue increased 19.4% to Euros 857.3m, with the majority of the rise due to acquisitions.

Ipsos' organic growth beat the market average for the eighth year in a row, but was lower than predicted at the start of the year, due it says to slower than expected market growth and tough conditions for some of its companies, particularly in Western Continental Europe. Overall, however, strong growth in North America and emerging-market countries, and 'firm financial discipline' meant healthy growth and improved margins.

Operating margin was 9.3%, up from 8.7% the previous year, while operating profit rose by 27.2% to Euros 79.8m, 'due to a firm grip on wage costs and general operating expenses'. Adjusted net profit (attributable to the Group) was Euros 48.2m, up 31.4% year-on-year; earnings per share Euros 1.25 and the dividend is proposed at Euros 0.28 per share, up 12% on last year.

The group spent Euros 39m on acquisitions during the year, including Camelford Graham (Canada), Tambor (Czech Republic and Slovakia), IMI (Egypt) and Apoyo (Peru, Ecuador, Bolivia). In addition, minority shareholders were bought out in Mexico, Chili, Colombia, the Middle East and Romania.

During 2006 Ipsos began work on a new organisational structure labelled the 'Fresh impetus' plan – this is due to be fully operational on 1 January 2008. Progress so far includes centralisation of support functions such as finance and IT; creation of the global entity Ipsos Interactive Services (IIS) to recruit and manage panels and carry out online surveys on behalf of Ipsos' teams in North America, Europe and (soon) elsewhere; extension of the firm's 'Global PartneRing' programme to include three major new accounts (total now 16); and creation of a single unit for mass consumer goods teams in North America and Western Europe, to improve and harmonise products and services.

The company says that in 2007 it will 'spend more money than ever' on items including staff training and researching and developing new products and services. It expects to bring organic growth back in line with its long-run average, i.e. at least 8%, with a strong order backlog indicating 'that Ipsos and its staff are capable of meeting this target.' The group will 'continue its active programme of acquisitions and setting up new offices' and will improve operating margin.

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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