Glossary of terms
The Group
Aegis Group plc and its subsidiaries.
Aegis Media
The media services division of Aegis Group plc.
Synovate
The market research division of Aegis Group plc.
Billings
The annualised value of media purchased and/or managed on behalf of clients, before agency discounts.
Sales
Commissions from clients for research services to be provided by the Group. Sales convert to revenue in accordance with the revenue recognition policy and the timing of delivery of research services.
Orders on hand
The cumulative value of projects recorded in sales, which have not been completed and recognised within revenue in the year.
Turnover
Represents amounts invoiced for media handled by the Group on behalf of clients, together with fees invoiced for media and research services provided.
Revenue
The value of media and research fees and commission earned by the Group.
Gross profit
Media and research income after deduction of all direct costs.
Net revenue
Research income after deduction of all direct costs which is equivalent to gross profit. This item is used in respect of Synovate only.
Gross margin
Gross profit stated as a percentage of turnover.
Operating profit
Gross profit less operating expenses.
Operating margin
Operating profit stated as a percentage of revenue.
Net new business
The estimated annualised value of media billings gained less the estimated annualised value of media billings lost.
Reported growth
Reported growth represents the year on year growth including the effect of new businesses acquired or disposed of during the year and movements in exchange rates.
Organic growth
Organic growth represents the constant currency year on year growth after adjusting for the effect of businesses acquired or disposed of since the beginning of the prior year.
Constant currency results
Constant currency results are calculated by restating prior year local currency amounts using current year exchange rates.
Underlying results
Underlying operating profit, underlying profit before interest and tax, underlying profit before tax, and underlying profit after tax are operating profit, profit before interest and tax, profit before tax, and profit after tax respectively, stated before those items of financial performance that the Group believes should be separately disclosed to assist in the understanding of the underlying performance achieved by the Group and its businesses (“adjusting items”). In the opinion of the Directors, such adjusting items are material by nature or amount and may include impairment charges, profits and losses on disposals of investments, amortisation of purchased intangible assets (being amortisation charged on separately identifiable intangible assets in acquired businesses), unrealised gains and losses on non-hedge derivative financial instruments, fair value gains and losses on liabilities in respect of put option agreements, and one-off items which are material by nature or amount in the opinion of the Directors, and any related tax thereon, as appropriate. Adjusting items may also include specific tax items such as the benefit arising on the reduction of certain tax liabilities in a particular period and deferred tax liabilities for tax deductions taken in respect of goodwill, where a deferred tax liability is recognised even if such a liability would only unwind on the eventual sale or impairment of the business in question.
Adjusting items are classified as operating, non-operating and financing according to the nature of the underlying income or expense.
Goodwill
The difference between the fair value of purchase consideration of a business as a whole and the aggregate fair value of its separable net assets.
Non-controlling interests
Partial ownership of subsidiary undertakings by external shareholders.
Faster growing regions
Faster growing regions comprise Latin America, Central and Eastern Europe, Asia Pacific, and the Middle East and Africa.