M&C Saatchi upbeat after 'strong' year

(Sharecast News) - Advertising agency M&C Saatchi posted a jump in annual earnings on Thursday, and said it was on track to meet market expectations for the current year.

Net revenues in the year to 31 December rose 3.7% to �231.0m, after a 6.7% hike in non-advertising specialisms offset a 1.9% decline in advertisings sales.

Pre-tax profits at the AIM-listed firm were 4.2% higher at �30.5m.

On a statutory basis, net revenues fell 2.2% to �231.4m, weighed down by its discontinued South African business.

Chief executive Zaid Al-Qassab, who took up the role last May, said 2024 had been an "important and successful year" for the business.

He continued: "Our strong results, with growing like-for-like net revenue, profitability and cash generation, were broad-based and reflect the health of the business.

"Since Simon Fuller and I joined as chief financial officer and chief executive, our focus has been laying the foundations for long-term profitable growth.

"Higher-margin specialist services now account for two-thirds of our business, and advertising one third, reflecting the direction of our growth strategy."

Looking to the current year, M&C Saatchi said the business was now "reaping the benefits of ongoing transformation to an integrated global growth".

It continued: "We are building a strong platform for future organic growth. This, combined with the next phase of our operating model transformation, gives the board confidence that we can achieve results in line with the market's expectations for 2025."

As at 0915 GMT, shares in the firm were up 1% at 170.8p.