20th Mar 2014 12:15
LONDON (Alliance News) - M & C Saatchi PLC Thursday raised its total dividend as it saw pretax profit rise in 2013, and it expressed confidence for its future following the sale of its share in Walker Media Ltd.
The advertising and marketing company posted a total dividend of 5.45 pence for 2013, up 10% from 4.95 pence in the previous year. Pretax profit rose to GBP18.6 million from GBP17.2 million in 2012, as revenue increased to GBP177.4 million from GBP169.5 million.
Revenue in the UK rose 13% as M&C Saatchi won new customers, including Land Rover, Telefónica O2 UK Ltd and Boots UK Ltd during the period. In January the company lost its contract with Dixons Retail PLC.
In Europe revenue rose 20%, although operating profit dropped 18%, as the company opened an office in Stockholm. In the Middle East and Africa revenue rose 22%, boosted by strong performances from the company's Cape Town and Johannesburg offices.
In the Asia and Australasia revenue was hit by currency headwinds, and dropped 10%. However, headline operating profit rose 29% following the company's merger with aeiou in China. M&C's Australian business had reacted quickly to the loss of its David Jones account, M&C said, cutting costs to protect profits.
In the Americas revenue rose 31% although it saw an operating loss of GBP90,000 due to its investment in its New York Office.
M&C Saatchi's Clear service-brand consultancy business saw performance improve after restructuring in the fourth quarter of 2012, seeing operating profit rise to GBP900,000 from GBP300,000 in the previous year.
M&C Saatchi had a year-end cash balance of GBP33.2 million following its sale of 75% of Walker Media. M&C sold its shareholding in the company to Publicis. Following this sale it returned a majority of the proceeds to shareholders through a GBP21.1 million share buyback in January.
The company said that its strategic sale of its share in Walker Media, and its current performance across its network, positioned it well for the future.
Shares in M&C Saatchi rose 1.0% to 300.00 pence Thursday midday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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