- Net revenue of circa £243 million, up 3.5%
- Shares up 15% over the past year
- Strong net cash of circa £16 million
Shares in M&C Saatchi (SAA) were up 6% to 189p in early trading as the advertising agency said it expects full year 2024 like-for-like net revenue growth of circa 3.5% with reported net revenue of £243 million.
The company said trading in the second half of the year ‘maintained first half momentum’ supported by its diverse balanced portfolio and strong growth in in Issues, Media and the UAE (United Arab Emirates).
The firm said its balance sheet remains strong with net cash of circa £16 million as of 31 December compared to £8 million in full year 2023, and noted there are ‘available facilities of £36 million’ in place to take advantage of strategic opportunities.
Simon Fuller, CFO of M&C Saatchi told Shares: ‘We have been focusing on our passions in sport and entertainment. This is reflected in the construction of new sports and entertainment office in UAE.
‘We continue to invest in creative officers (chief creative officers better known as a CCO directs a company’s creative output developing the artistic design strategy that defines the company’s brand) and recently won new business from global lottery operator Allwyn Group selecting us as their international integrated communications agency.’
Fuller is relatively new to M&C Saatchi, joining the advertising agency last July from various senior managerial roles at Tesco (TSCO), BT (BT.A) and as CFO at news publisher Reach Plc (RCH).
EXPERT VIEW
Panmure Liberum analysts Caspar Erskine and Andrew Ripper said: ‘M&C Saatchi’s full year 2024 (estimated) update shows the strong operational and financial progress made in the year. Investment into leadership and creative talent is driving mandate win momentum and expanded client remits.
‘Like-for-like net revenue growth of circa 3.5% (to £243 million) is in line with expectations and has been delivered alongside a transformation programme which successfully unlocked £10 million of annualised savings.
‘Margins have improved as forecast, yet the key highlight was net cash, which increased to £16 million and implies a return of sustainably strong (greater than 80%) cash conversion.’
