M&C Saatchi shares surge on positive full year results

m&C saatchi

Global ad agency M&C Saatchi has today reported a stronger than expected set of full year results and bullish outlook, sending its share price sharply higher.

The London-listed media and marketing firm turned in a full year loss of £8.5m, slightly improving on last year’s number. Revenue for the year fell 12.5% to £225.4m as the pandemic ravished the sector causing a plunge in advertising spending by brands.

M&C Saatchi

However, M&C Saatchi said it expects trading to be ahead of expectations for first five months of 2021. Half year headline profit before tax is expected to be in excess of £10m. 

The ad firm’s management expects full year results to be ahead of consensus.

Moray MacLennan, Chief Executive Officer said: “2020 was undoubtedly a watershed year for the company.

“We went into the year confronted by Covid-19 and ended with a new strategy and the unswerving support of the Group’s employees and a new structure in place for 2021.

“The resilience of the company and our people was reflected in the outstanding client retention across 2020. 

“Our agility allowed us to quickly adapt to the new market conditions (including an even greater focus on digital) and enabled the swift implementation of our new strategy.

“This is delivering a positive performance in the first five months of 2021, so we anticipate being ahead of consensus for the full year.  

“Profit in all five of the new divisions has grown in 2021 through meeting new client demands in the new digital landscape.

“This initial success and our continued focus on innovation, technology and data, combined with creativity, which is at our core, gives us confidence for the remainder of the year and beyond”.

The ad firm picked up a slew of new clients over the past year. In the UK and Europe alone, new clients included Census 2021, COP26, Barclays, Kia, TikTok, Hello Fresh, Care International, Tele2, Fortnum and Polaroid.

M&C Saatchi’s shares were trading up 10.8% at £1.64 on the London Stock Exchange on  Wednesday morning.