McCann posts near £800k profit for 2012

McCann-Erickson London's pre-tax profit was £776,000 for the financial year ending 31 December 2012, giving it an adjusted operating margin of 3%, according to documents filed at Companies House.

Chris Macdonald: president, McCann New York
Chris Macdonald: president, McCann New York

In 2011, the agency - part of the Interpublic Group – reported a near £12 million loss after the inclusion of a one-off contribution of £11.1m to the Interpublic Pension Plan.

McCann-Erickson’s turnover in 2012 was effectively flat at £50.3 million. A breakdown showed that the vast majority of its income (£34.2 million) came from the UK. Clients from the rest of Europe contributed £13.1 million, while US clients contributed, £2.6 million.

After deducting costs of sales, revenue at McCann was £24.1 million.

According to the financial report, the agency did not recommend paying a dividend in 2012 - a decision taken by Interpublic Group's treasury. In 2011 McCann paid £15 million to shareholders.

The directors who held office at McCann London during the financial year were: senior vice president Nick Camera, who retired in 2012; McCann Worldgroup's EMEA CFO Stefan Himpe; McCann Worldgroup's UK CFO Martin Jackson; New York president Chris Macdonald and McCann London CFO Sajad Manzoor.

The directors were paid £731,000 between them in 2012, up from £483,000 in 2011. The highest paid director (unnamed in the report) received aggregate pay of £450,000.

McCann’s cash reserves took a slight hit in 2012, dropping from £24.4 million to £17.7 million, although net assets rose from £18.2 million to £19 million. The agency also expanded, from 198 people at the end of 2011 to 228 people at the end of 2012.

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