- Like-for-like revenue up 3.7% to £231 million
- Business wins such as Ferrari, Carlsberg
- New Cultural Power proposition launched
Shares in M&C Saatchi (SAA:AIM) were marginally higher at 171p in morning trading as the advertising agency reported full year results in line with expectations.
Like-for-like net revenue was up 3.7% to £231 million for the year ending 31 December driven by strong growth in non-advertising specialisms.
The company proposed 22% increase in the dividend to 1.95p per share ‘reflecting our improved earnings performance and maintaining cover.’
NEW BUSINESS WINS
The advertising agency said it made 140 new business wins last year, new clients included Ferrari (RACE:BIT), Carlsberg (CARL-B:CPH), L’Oreal (OR:EPA) in the second half or the year, following wins of McDonalds (MCD:NYSE), Ford (F:NYSE), Danone (BN:EPA), MTN, IKEA and Sony Pictures in the first half.
Advertising operating profit grew by 15.4% with margins improving due to strong growth in Europe and the UAE, but challenging economic environments in Australia and the UK resulted in a small revenue drop of 1.9%, the company said.
The company also launched a new Cultural Power proposition featuring a Cultural Power Index which is a proprietary AI-powered diagnostic tool that help brands drive growth.
Simon Fuller, CFO at M&C Saatchi told Shares: ‘We saw a strong performance against a backdrop of change with growth in non-advertising specialisms which includes services like consulting, brand strategy, sponsorship, sports and entertainment.
‘We have been focusing on reshaping and structuring the business in 2024 and investing in creativity with a creative team on the executive and in various regions in the UK and US.
‘Our balance sheet remains strong with net cash of £15.3 million, an increase of 84.3% compared to 2023, and low capital outgoings.’
ROBUST PATH TO IMPROVEMENT
Analysts at Panmure Liberum said: ‘Growing the resilient specialist high margin activities is a key focus and the company is investing in capabilities, products and people.
‘Leveraging these services through increased regional availability creates an important structural growth driver while also taking advantage of the inherent greater efficiency of selling more to existing clients vs the cost of winning all-new clients.
‘M&C is on a robust path of improvement with growth potential likely to keep rising as the group invests and gets stronger.’
