M&C Saatchi reinstates dividend on the back of record results

M&C-saatchi-group

Global ad agency M&C Saatchi has reported record revenue of £271.1m in its latest full year results and has restarted its dividend programme, paying dividends at 1.5p per share for the full year.

The company also turned in a record headline pre-tax profit of £31.8m.

M&C Saatchi record year

M&C Saatchi said the record performance came despite a mixed trading year which, along with the wider market, saw it deal with headwinds in the technology sector, particularly in its Media specialism.

The UK-based international agency said it saw the benefit of its diverse range of businesses with strong pipelines in the Consulting, Issues and Passions specialisms, which it said boosted confidence for the remainder of the year.

In addition, the agency said its cost efficiency programme is expected to deliver savings in the second half of 2023 and that profit will be more weighted to the second half of 2023, than in 2022.

Commenting on the 2022 performance and outlook, Moray MacLennan, Chief Executive Officer said: “Another year of record results, in a year not without challenges. Through a relentless focus on developing core capabilities both within and beyond advertising, alongside careful cost management, we have delivered high-margin and high-revenue growth and are pleased to reinstate dividend payments.

“We approach 2023 with guarded optimism. Whilst macroeconomic uncertainties will require careful navigation and management, we have a clear roadmap in place and look forward to building on our solid foundations for profitable growth.”

New business wins during the past year included globally known brands such as Diageo, Tinder, LVMH, PepsiCo, UK Covid-19 Inquiry account and Australia Retirement Trust.

It was also appointed to the Emirates Airline, Samsung, and Volkswagen global rosters during the year.

M&C Saatchi’s shares were trading 3.5p lower at £1.80 on the London Stock Exchange following publication of its full year numbers. However, the shares are 17% higher from where they were at the start of the year.