Income Statement /
Revenue /
Revenue grew 20.6% at reported exchange rates, or 19.6% at constant currency, to £1,135.0m (2010: £941.0m). Excluding the impact of prior year acquisitions and disposals, the increase in Retained Group organic revenue was 9.9%.
| Group £m |
2011 | Change % |
2010 | Change % |
|---|---|---|---|---|
| Prior year revenue as reported | 941.0 | 873.0 | ||
| Currency movements | 7.7 | 0.8 | 12.8 | 1.5 |
| Prior year revenue at constant currency | 948.7 | 885.8 | ||
| Change in revenue in year from acquisitions & disposals | 83.8 | 8.8 | 7.5 | 0.8 |
| Current year revenue at constant currency, including impact of acquisitions and disposals |
1,032.5 | 893.3 | ||
| Organic movement in year | 102.5 | 9.9 | 47.7 | 5.3 |
| Total current year revenue as reported | 1,135.0 | 941.0 |
| Aegis Media £m |
2011 | Change % |
2010 | Change % |
|---|---|---|---|---|
| Prior year revenue as reported | 886.8 | 825.2 | ||
| Currency movements | 4.1 | 0.5 | 5.2 | 0.6 |
| Prior year revenue at constant currency | 890.9 | 830.4 | ||
| Change in revenue in year from acquisitions & disposals | 82.2 | 9.2 | 8.5 | 1.0 |
| Current year revenue at constant currency, including impact of acquisitions and disposals |
973.1 | 838.9 | ||
| Organic movement in year | 95.7 | 9.8 | 47.9 | 5.7 |
| Total current year revenue as reported | 1,068.8 | 886.8 |
Group revenue increased 12.0% organically in the fourth quarter of 2011 and 11.7% during the second half of the year.
| Quarterly performance |
Half Year performance |
Full Year performance |
|||||
|---|---|---|---|---|---|---|---|
| Organic Revenue change % | Q111 | Q211 | Q311 | Q411 | H111 | H211 | FY11 |
| Aegis Media | 10.1 | 5.8 | 11.5 | 11.9 | 7.6 | 11.7 | 9.8 |
| Aztec | 9.9 | 12.1 | 7.8 | 15.4 | 11.0 | 11.6 | 11.3 |
| Group | 10.1 | 6.1 | 11.2 | 12.0 | 7.8 | 11.7 | 9.9 |
Operating performance /
Operating expenses increased to £910.2m (2010: £765.6m), an increase of 18.9% at reported exchange rates, or 18.2% at constant currency, mainly as a result of increased staff costs during the year. Corporate costs increased by £1.1m to £19.2m in 2011.
Group operating profit was £197.4m (2010: £151.1m), up 30.6% or 29.4% at constant currency, due to an improved performance of the business during the year. On a Total Group basis, including a contribution from Synovate for the first nine months of 2011, operating profit in the year was £200.7m (2010: £192.2m).
Group operating margin was 17.4% in 2011, an increase of 130 basis points at reported rates and at constant currency, from the prior year.
Profit before interest and tax /
After a profit from associates of £4.0m (2010: £4.0m), predominantly relating to our share of profits from our investment in Charm Communications Inc (“Charm”), profit before interest and tax was up 29.9% to £201.4m (2010: £155.1m), equivalent to an increase of 28.6% at constant currency.
Net financial items /
| £m | 2011 | 2010 | Change % |
Constant currency % |
|---|---|---|---|---|
| Interest income | 6.3 | 6.1 | 3.3 | 1.6 |
| Interest payable | (45.9) | (38.2) | (20.2) | (19.8) |
| Net interest charge before fx (losses)/gains | (39.6) | (32.1) | (23.4) | (23.4) |
| Foreign exchange (losses)/gains | – | (0.7) | 100.0 | 100.0 |
| Net financial items | (39.6) | (32.8) | (20.7) | (20.7) |
The Group’s net charge in respect of financial items was £39.6m (2010: £32.8m) an increase of 20.7% at reported rates and at constant currency.
This increase reflects the Group’s actions to diversify and extend the maturity profile of its borrowings over the last few years. In 2009, the Group raised £25.0m and US$183.0m in unsecured loan notes repayable between 2017 and 2019. In 2010, £190.6m was raised through the issue of convertible notes and the Group re-financed a five year revolving credit facility on renewed terms. In 2011, the Group increased the term loan taken out in 2009 to £60.0m, from £45.0m.
The net interest charge, before the effect of foreign exchange gains and losses relating to financing items, increased in 2011 to £39.6m (2010: £32.1m). Within the net interest charge, interest income increased to £6.3m (2010: £6.1m), partially due to the increase in cash deposits during the fourth quarter of the year, following the receipt of funds from the sale of Synovate. Interest payable increased to £45.9m (2010: £38.2m), reflecting the first full year of the convertible bond, issued in 2010, the revolving credit facility, re-financed in July 2010, and the increase in our term loan, as outlined above.
Profit before tax /
Profit before tax of £161.8m (2010: £122.3m) increased by 32.3%, or 30.7% at constant currency.
Tax /
Our underlying effective tax rate for the year improved to 20.0% (2010: 23.3%), as a result of on-going tax planning initiatives. The total of income taxes paid in cash in the year was £42.1m (2010: £47.6m).
Profit attributable to equity holders of the parent /
Minorities’ share of underlying income increased to £3.6m (2010: £3.5m) reflecting a marginal improvement in profitability of non-100% owned entities in the Group and underlying profit attributable to equity holders of the parent was £125.8m (2010: £90.5m). Minorities’ share of statutory income was £1.5m, down from £1.9m in 2010. Statutory profit attributable to equity holders of the parent was £79.6m (2010: £18.2m).
Earnings per share /
Diluted earnings per share for the Group increased by 29.5% to 10.1p (2010: 7.8p).
On a pro forma basis, taking into account a reduced number of shares for the year following a 10 for 11 share consolidation on 24 October 2011, diluted earnings per share for the Group increased by 24.4% to 10.7p (2010: 8.6p).
The 10 for 11 share consolidation was intended to maintain comparability of Aegis’s share price before and after the Return of Capital, which was paid to shareholders via a special dividend on 2 November 2011.
Dividends /
The Board is proposing a final dividend of 2.01p, following the payment of an interim dividend of 1.08p per share on 23 September 2011, which is equivalent to 1.19p per share on a post-consolidation basis. The proposed total dividend for the year is therefore 3.20p per share on a post-consolidation basis, excluding the special dividend. The special dividend of 15.53p per share (equivalent to 17.08p per share on a post-consolidation basis) increases the total dividend for the year to 20.28p per share on a post-consolidation basis.
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