M&C Saatchi UK sees profits fall 8.4%

M&C Saatchi's pre-tax profits fell 8.4% year on year to £6.5m in the year to 31 December 2016 in the UK.

M&C Saatchi UK sees profits fall 8.4%

In the company’s financial results published this morning, the UK business continued to be hit by "restructuring costs" of £1.6m in the ad agency last year. Operating profit also dropped 12% to £5.5m because of this.

When taking out the costs, the group said that operating profit grew 2% year on year.

Operating margin fell to 11.7% compared with 14% in 2015. When stripping out the restructuring costs, then the margin was 13.6% in 2016.

Like for like revenue grew 5% as the CRM, sport and entertainment, PR and mobile "continue to perform particularly positively".

The report added: "We experienced a commendable run of account wins across our group of businesses in the year, including Virgin Red, the Home Office, NN Investment Partners, E.ON, PHE (Antimicrobial Resistance), the Rail Delivery Group, the Civil Aviation Authority and the Department of Work and Pensions."

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.

SUBSCRIBE

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
Case study: How 'This girl can' got 1.6 million women exercising
Shares0
Share

1 Case study: How 'This girl can' got 1.6 million women exercising

"This girl can" was based on a powerful insight: that the fear of judgement by others is the primary barrier holding women back from participating in sport.