Shares digital

Aegis (AGS) – Final PTP: £133.5 (£113.5) Divi: 1.46p (1.17p)

The media buying company posted an 18% rise in pre-tax profits and gave a bullish outlook for the future, which helped its shares to climb around 10% to 117.75p.

The company says that many of its big clients come from industries other than financial, such as pharmaceutical and automotive and that and cutbacks in advertising spend will result in more targeted, direct marketing, which will benefit the digital services on offer from the group. Aeigs already generates more than a quarter of revenues from its digital operations and believes these will hold up better in a weak climate. Analysts were broadly impressed with the results, which beat most expectations, but many sounded words of caution about the future outlook. Landsbanki analysts noted that new business, at $1.66 billlion, was significantly lower than the previous bumper year’s figure of $2.7 billion. ‘New client wins are an issue, given there does not appear to have been any net gains in the second half of last year.’ The team, however, did maintain its buy rating on the company and has a target price of 145p.

Speculation that Vincent Bollore may make a move for the company through Havas, of which he is chairman, continues to plague the company. He has made several attempts to gain representation on the board, which have been thwarted by shareholders, but with his stake in Aegis at 29% he is within touching distance of the 30% threshold for which an offer would need to be made under UK takeover panel rules.

Shares says: Fairing well in tough conditions with shares also underpinned by bid speculation.

by: Susanna Twidale