The Week: City news - M&C Saatchi's profit slides

M&C Saatchi has said that trading has stabilised compared with the second half of 2008, despite reporting a 32.7 per cent year-on-year drop in pre-tax profits to £5.4 million for the first half of the year.

In its latest interim report, the agency group also said that it would continue to invest in global expansion "where the possibility exists". During the first six months of 2009, revenues fell by 3.8 per cent year on year to £49.8 million. In the UK, its revenues fell to £23.8 million, a drop of 6 per cent. The agency group blamed a marked reduction in clients' advertising budgets for the fall.