10th Sep 2015 06:51
LONDON (Alliance News) - Advertising and marketing company M&C Saatchi PLC Thursday expressed confidence for continued progress in its full year, as it sweetened its interim dividend and posted a fall in pretax profit for its first half.
For the half year to end-June M&C Saatchi proposed a dividend of 1.61 pence, up 15% from 1.40 pence a year before.
M&C Saatchi reported a pretax profit of GBP8.4 million, down from GBP13.4 million a year before, on revenue of GBP87.6 million, up from GBP82.6 million. This was primarily due to a GBP5.3 million finance income gain from a fair value adjustment to minority shareholder put option liabilities in the previous year.
On a headline basis, stripping out amortisation, impairments, fair value gains and losses on liabilities caused by the company's put and call option agreements, pretax profit rose to GBP9.6 million from GBP8.5 million, on revenue of GBP87.5 million, up from GBP82.6 million.
In the UK revenue rose 9%, as the company's customer relationship management and mobile operations continued to perform well, and it won a number of contract wins during the first half, including with Airbus and Oxfam.
On a constant currency basis revenue rose 12% in Europe, 3% In the Middle East and Africa, 6% in Asia and Australia, and 19% in the Americas. The company said its SS+K associate relationship in New York has started well, winning contracts with JW Marriot and Comcast. It is looking to increase its presence in New York, and is considering acquisition opportunities.
"M&C Saatchi has made good headway over the first six months of 2015. We produced positive revenue momentum and earnings growth. This stems from new business wins and continuing widening of our business offering. Looking ahead, we are confident that we will continue to make progress in the full year and beyond. The strategy is consistent and continues to deliver," said Chief Executive David Kershaw in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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