Company news round-up: Aegis to make acquisitions in China and US

Things may have been worse for the group had a strengthening dollar not offset some of the constant currency losses.

Aegis, which means 'Shield' in Greek, could continue to face pressures on its business in 2010.

WPP the world's largest advertising holding company said last week it expected the global industry to grow 'between 0 and 1 percent' with emerging markets expected to perform better than US and UK.

"Further, I am pleased to annouce a strengthening of the Board and management with the immediate appointment of Robert Philpott, CEO of Synovate, to the Aegis Board, and the appointment of Jerry Buhlmann as CEO of Aegis Group from May 1st, Nick and Robert have worked well together over the last 18 months and deserve full credit for the delivery of a strong performance in 2009" said John Napier, Chairman of the Group.

Our View

The management believes that solid management and long-term stability can give it the 'trump' card it needs to weather any continuing recession.

Meanwhile, the £175m bond issue, allowing the company to make acquisitions this year across China and America may also provide good upsides.

Market View

The market reaction to the results have been neutral (if slightly positive) and Panmure Gordon expects adjusted EPS of 9.09p for 2010 (up a litte from 8.58p in 2009).