The Week: City News - M&C finances questioned

A report has brought into question the financial prospects of M&C Saatchi in the wake of the departure of Christine Walker from Walker Media.

According to Bob Willott's Marketing Services Financial Intelligence, the group is heavily reliant on Walker Media to offset poor performances from other parts of the business. It may suffer if the agency's performance falters following its founder's departure. The findings were based on what M&C Saatchi paid for the recently acquired shares in the agency. "Assuming the initial payment is based on 2006 profits, it implies that Walker Media made around £3.8 million after tax last year, and will make even more in 2007, while M&C Saatchi reported a post-tax profit of just £2 million last year," the report said.