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IS THE PERFORMANCE OF AEGIS SURPRISING GIVEN THE CURRENT CLIMATE?

<!--StartFragment--><!--StartFragment--><strong>STEVE LIECHTI</strong> INVESTEC<br />&ldquo;The (Aegis) statement implies disappointing organic sales declines against its larger agency peers, though Havas&rsquo; statement on Friday was also poor. This is to some extent a result of strong comparatives in better times, but cannot help near-term sentiment. Comment on costs is more positive with interim chief executive John Napier clearly focusing on this area.&rdquo;<br /><br /><strong>SAM HART</strong> CHARLES STANLEY<br />&ldquo;Obviously the organic growth was weaker than anticipated &ndash; but the vast majority of the business is media buying, which everyone knows is suffering. If ad agencies want to remain profitable they need to cut costs in line with revenue declines. Aegis&rsquo; management seems confident that it can do it &ndash; but analysts are sceptical and earnings forecasts are likely to be cut.<!--StartFragment-->&rdquo;<br /><br /><!--EndFragment--><!--StartFragment--><!--StartFragment--><strong>JOSHUA RAYMOND</strong> CITY INDEX<br />&ldquo;Aegis&rsquo; share price has risen over 115 per cent since November, so the revenue losses may have been a shock to shareholders. The headline will be concerns over future revenue downgrades for the rest of the year. It may be that the results just gave investors an excuse to profit take, as the share price rebounded, showing that investors hope management will still deliver a strong performance.&rdquo;&nbsp; <!--EndFragment-->