26th Mar 2015 09:26
LONDON (Alliance News) - M&C Saatchi PLC Thursday expressed confidence for good progress in 2015 as it posted a decline in pretax profit for 2014, although excluding the stake in Walker Media Ltd it sold last year it swung to a profit from a loss.
The advertising and marketing company proposed a final dividend of 4.87 pence, taking its total dividend for the year to 6.27 pence, up from 5.45 pence a year before.
M&C Saatchi posted a pretax profit of GBP6.2 million, down from GBP8.6 million a year before, as revenue declined to GBP169.4 million from GBP175.6 million.
However, stripping out results from the company's 75.2% share in Walker Media Ltd, which it sold to Publicis Groupe last year, the company swung to a pretax profit of GBP6.2 million from a pretax loss of GBP2.6 million, on revenue of GBP169.4 million compared to GBP162.0 million.
Billings rose to GBP333.3 million from GBP320.3 million a year before, excluding the stake in Walker Media.
In the UK revenue was up 9% as both its customer relationship management and mobile businesses continued to do well. M&C Saatchi cited contract wins including Land Rover and John Lewis.
At constant exchange rates, revenue in Europe rose 15%, as its Stockholm, Germany and Italy offices performed well, and its French office won contracts in spite of a slow advertising market. Middle East and Africa revenues rose 14%, bolstered by good performances from its Cape Town and Johannesburg offices.
In the Americas, constant currency revenue was up 51%, bolstered by a strong performance from its Los Angeles and Sao Paulo offices, and from its US mobile operations. However, conversion of new business in New York was slow, so the company undertook a management restructure.
It acquired a 33% stake in Shepardson Stern + Kaminsky LLC last November, which it expects to enhance its presence and speed up growth in New York.
"2014 was another year of excellent progress for M&C Saatchi. Our strategy of consistent growth through winning new business and starting new businesses continues to deliver good results. We have invested and upgraded and now feel we have the network span and depth of capabilities with which we can significantly develop our international client portfolio," said Chief Executive David Kershaw in a statement.
"We are confident we will continue to make good progress in 2015 and beyond," Kershaw added.
Shares in M&C Saatchi are trading down 2.2% at 351.50 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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