Aegis revenue growth fires up share price

by Daniel Farey-Jones, Brand Republic 30-Apr-08, 11:00

LONDON - Aegis shares have risen 4% after it issued a trading update showing its revenues have grown by 24% year on year.

The performance was helped by acquisitions and the weakness of the pound, but Aegis, headed by chief executive Robert Lerwill, still demonstrated strong organic growth at 8.3%.

Its share price rose 4.3% to 122p, giving the group a market capitalisation of £1.41bn.

Growth was stronger at the media side of the company than its market research division Synovate. Aegis Media grew revenues by 29.9% while Synovate grew by 16.5%.

Havas chairman Vincent Bollore, who owns 29.9% of Aegis, is expected to make a takeover bid for the company later this year.

It is believed Bollore is planning to combine Aegis Media with Havas media agency MPG if the takeover ever materialises.

The plan is said to also include disposing of market research firm Synovate, possibly to WPP, who have previously made their interest known.

Last week, for the fifth time, Bollore put forward two nominees for the Aegis board and Aegis has responded by telling shareholders to vote against them.