M&C Saatchi: Ad giant maintains momentum as revenue grows
Ad giant M&C Saatchi reported solid revenue growth for the financial year, as its transformation strategy began taking shape.
The company told markets this morning that full year revenue grew by 3.5 per cent on a like-for-like basis, to approximately £243m.
According to Friday’s trading update, the firm maintained its first half momentum of ‘significant improvement’ into the second half, underpinned by its diversified portfolio and regional-first operating model.
This follows a year of struggle for the firm in 2023, where client marketing budgets were squeezed amid the cost of living crisis.
Statutory earnings per share were at 6.4 pence in the first half of 2024, an improvement from the 5.3 pence loss from the first half of 2023.
The advertising giant confirmed profit before tax and operating margins were in line with market expectations, as efficiency programs freed up resources for investment in talent and group capabilities.
In February 2024, Zaid Al-Qassab was appointed to take over as chief executive.
He said that freeing up resources, “combined with the execution of our ongoing group-wide transformation, is positively impacting the business.”
“I would like to thank all our colleagues at M&C Saatchi for their commitment and continued efforts during this transformative year, as we continue to create advantage for clients through connected creativity and excellent client service.”
The firm ended the year with a strong balance sheet, reporting net cash of an estimated £16m, with £36m in available facilities to support strategic growth opportunities.
It also projected signficant cash trailwinds for 2025, where the company will tightly focus on cash management and the settlement of put options.
“Whilst we remain mindful of ongoing macro volatility, we are confident we are putting the foundations in place to achieve our ambition of long-term profitable growth and delivering strong sustainable returns for shareholders”, Al-Qassab added.