M&C Saatchi shares surge as profits leap 32%

 

LONDON - M&C Saatchi is looking to expand its global network after reporting a 32% rise in statutory pre-tax profits to £10.5m, sending its share price surging by 15%.

Top 10 surreal ads

Top 10 surreal ads

Campaign's pick of the most surreal TV ads

Best of Droga5

Best of Droga5

View some of the agency's best work, following accolades at the D&AD Awards

Digital Britain

Digital Britain

What's in the report?

Tony Davidson and Kim Papworth

Tony Davidson and Kim Papworth

The best work from the W&K creative team

Creative poses

Creative poses

Top London creatives strike a pose for D&AD New Blood

Top 10 Mother Orange Gold Spots

Top 10 Mother Orange Gold Spots

Campaign's pick of Mother's Orange Gold Spots

With trading for the first three months of 2009 in line with management expectations, the group said it was confident it was in "good shape".

David Kershaw, chief executive, said it was ready to invest more in its organic growth strategy of opening more international offices.

The company's share price surged 15% this morning to 40.4p, well above the 25p level at which PR man Matthew Freud purchased a 3.3% stake in the company in February.

Over the last year revenues climbed 19% to £104.4m. The UK, which was boosted by new wins including the Government-led anti-obesity campaign Change4Life and Hyundai, increased revenues from £52.8m to £60.3m.

In Europe revenues climbed 70% to £10.3m, but good results from its Paris and Berlin offices were marred by a "very difficult year" for its Madrid office.

M&C's 25% stake in its Spanish associate was written down by £2.4m.

The group said: "We remain committed to this market, but we have agreed not to extend our ownership beyond the current 25%. We may revisit this position in the future."

The US business, based in LA, had a "second difficult year" with revenues down slightly from £4.1m to £4m.

However, Asia and Australia increased revenues by 20% to £29.7m with an "excellent year" for the Australian office despite its loss of the global Tourism Australia account, which was picked up by DDB Worldwide.

M&C said clients were starting to put pressure on fees, but were more likely "to sacrifice longer term marketing investment projects and new product development work to reduce costs".

The group recently opened new offices in Switzerland and Brazil.

For Bob Willott's view of M&C Saatchi's results read his blog, Bob Willott on the Bottom Line.

Tags:

 
X

You must log in to use Clip & Save

 
 

All Comments

Kevin Gordon

Kevin Gordon - 26 March 2009

Congratulations! They've worked for it and they deserve it.

 

Your Comment

 
 
 

To post comments please log in here.

 
 

Email Bulletins

You can sign up here for our email bulletins. Enter your email address, select the bulletins you are interested in and click Subscribe.

Preview
Preview
Preview
 

Christmas ads 2009

Christmas ads 2009

View this year's crop of festive ads

ADdicts cartoons

ADdicts cartoons

Gallery of cartoons published each week in Campaign

Public View

Public View

What does the public think of the latest ads?

Viral View

Viral View

Best of the latest ad virals

Promotion - Integration Essays

Promotion - Integration Essays

Watch videos of Integration Essays 2009 contributors

Campaign Awards Fight

Campaign Awards Fight

Pit two industry creatives against each other

House of Cards

House of Cards

Gallery of images from Leo Burnett's Shelter exhibition

 

In Print

Cover Latest issue: 12 March 2010Subscribe
 

Poll

Will 2009 go down as the year media sold itself short?