Pre-close Trading Update

RNS Number:8110T
Aegis Group PLC
05 January 2004

5 January 2004

                                                           For Immediate Release


                                Aegis Group plc

                         Aegis plc Pre-close Trading Update

Aegis Group plc ("Aegis") the media and market research group, issues the
following trading update ahead of its preliminary results announcement on 9
March 2004.


Trading

Aegis' trading is in line with expectations with turnover, revenue and operating
profit in 2003 all ahead of the same period in 2002.  Effective cash management
and favourable interest rates will help the Group attain a lower than expected
interest charge.


Media

Aegis' media operations are performing well and, despite some pressure on fees
in new business pitches, the division has shown good revenue growth through
developing new and existing client accounts.  Carat continues to show good
growth in North America and Asia Pacific and is meeting budgeted targets even in
the softer European market.  Vizeum, the Group's newly launched media brand, has
performed well in its first six months of trading and has developed a broad
European presence with offices in 17 countries.



The Group is increasingly focused on providing integrated communications
solutions for clients and is developing a range of specialised communications
services, including outdoor media, sponsorship, data analytics and interactive
media services - these services now account for around a quarter of media
revenues.  The growing contribution from communication services is enabling the
media division to protect gross margins despite the pressures on fees noted
above.



Research

Synovate, Aegis' research division, gained momentum and is now one of only a
handful of research networks capable of providing marketers with a true global
capability.  The business is performing in line with expectations and has
demonstrated solid revenue progress in 2003.



After a tough two years, Synovate has made a good recovery in North America and
is improving both revenues and margins. The Asian business is recovering from
the impact of SARS and is expected to deliver an increase in revenues compared
with 2002.  Europe remains a difficult market for research, but the increasing
breadth of the network in the region is attracting business from new
international clients.



Group Prospects

The Group is in a sound position to make further progress in 2004.  The
marketing environment is expected to show some improvement and this will also
assist the Group's financial performance.



Market Outlook for 2004

Looking at the Group's market predictions for 2004, it expects a continued
improvement in the advertising market with global adspend growing by 4.7% in
2004 (2003: 3.2%).  The combined impact of the Olympics, the Presidential
election and returning corporate confidence will help the US market grow by 4.7%
(2003: 3.4%).  Asia-Pacific is expected to grow strongly with adspend up by 6.0%
(2003: 4.2%).  Europe is forecast to grow by 3.6% (2003: 1.7%) as the market
slowly improves.



                                      Ends


Enquiries:


Aegis Group plc                                           (44) 20 7070 7700
Richard Walters

Financial Dynamics                                        (44) 20 7831 3113
Charles Palmer






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