London ad agency M&C Saatchi has perorated a huge 59% fall in half year profits as a result of the COVID19 pandemic, however it said it remains ‘resilient’ in the face of the global health crisis.
In its half report results statement it reported that headline profit before tax came in at £2m, before exceptional costs. This is down 59% on the same period last year.
M&C Saatchi half year numbers
Net revenue was £103.4m, down 13%, with the firm saying that the trend had improved from Q2.
Taking early action to reduce expenditure during the pandemic, M&C Saatchi said that it had managed to cut operating costs by £12.8m (11%).
The marketing firm confirmed that there would be no dividend for investors.
Despite the plunging profits, M&C said it was a “resilient, profitable performance, with results ahead of management’s expectations at the outset of the Covid-19 pandemic”.
David Kershaw, Chief Executive Officer, said: “We have been hugely encouraged by the resilience of the business, both operationally and financially, in the face of the global Covid-19 pandemic.
“Our companies have shown great agility in adapting their businesses to these extremely challenging conditions, without compromising on the quality of their work or client service.
“Strong client retention”
“This is demonstrated by our strong client retention and new business performance during the period. I would like to thank all of our people for their tremendous commitment and hard work.
“We are looking ahead with optimism. We are refocusing our business to ensure it is in the best possible shape to thrive.
“Additionally, we are now well advanced in our strategic review and it is clear that we have both the strength and the potential to take advantage of the considerable long-term opportunities we see ahead of us.”
M&C’s shares were unchanged in London on Wednesday.
M&C Saatchi counts BMW, Costa Coffee and audible among its clients. It also works work with a number of cause groups including Queer Britain, Carbon Academy and Visual Diet.