18th Sep 2013 07:22
LONDON (Alliance News) - M&C Saatchi PLC Wednesday reported higher profits and revenues in the first half of the year, boosted by new business wins and investment in new businesses.
The international advertising agency network reported revenues of GBP87.1 million for the six months ended June 30, an increase of 5% when compared to GBP82.8 million in revenues a year earlier.
The company raised its interim dividend by 10% to 1.21 pence per share, and said it maintains its confident outlook.
It reported a half-year pretax profit of GBP9.3 million, compared with GBP8.7 million a year earlier.
The group said that it has restored probability in its full service brand consultancy, Clear, following the completed restructuring of its cost base, and management team, and said that its new business pipeline is much healthier.
M&C Saatchi said like-for-like revenues were down 3% in Asia and Australasia, largely due to a fall in Chinese revenues, which now go through its new Shanghai associate aeiou, after merging with the independent Chinese agency in March.
It said that in the UK, revenues rose 8%, due to a number of account wins, and a strong performance from its CRM and mobile businesses.
The company said that in Europe like-for-like revenues were up 21%, with a strong performance from its German and Italy offices, although its headline operating profit was down 5%, due to some investment drag from its new Stockholm office, and a weaker France and Spain market.
The company said that during the period, made a number of business wins across each sector, and invested in three new offices in Abui Dhabi, Stockholm and New York.
It said that its balance sheet has maintained strong, and had net cash at the end of the period of GBP20 million.
M&C Saatchi shares were up 1.6% after the open Wednesday, trading at 294.00 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
M&C Saatchi