8th Feb 2023 12:18
(Alliance News) - M&C Saatchi PLC on Wednesday announced its five-year plan, announcing new financial targets for 2022 to 2027.
M&C Saatchi shares were 5.8% higher at 179.80 pence each in London on Wednesday afternoon.
The London-based advertising agency said it targets net revenue growth at a compound annual growth rate, or CAGR, of 8%, to GBP400 million in 2027 from GBP271.4 million expected for 2022. For 2021, M&C in May 2022 had reported a net revenue of GBP249.3 million, up 11% from GBP225.4 million in 2020.
Meanwhile, it aims for a CAGR operating profit growth of 16% to GBP74 million in 2027 from GBP35 million targeted for 2022. In 2021, it had an operating profit of GBP27.3 million, swinging from a loss of GBP4.9 million in 2020.
Further, M&C seeks an operating profit margin of 18%, at the top end of the industry range, and up from 11% in 2020.
Chief Executive Officer Moray MacLennan said: "Today is about launching the next stage in our transformation journey. Over the past two years we have delivered on the strategy we set out, demonstrated by successive sets of record results. 'M&C Saatchi: Moving Forward' lays out our plans to accelerate high-margin, digital-led growth, through targeted investments and a more efficient, streamlined operating model. It is about demonstrating our resilience to macroeconomic uncertainties through our operational and financial strength and counter-cyclical and resilient specialisms, underpinned by a committed and experienced management team."
M&C Saatchi was founded in 1995 by ad executives Charles Saatchi and brother Maurice Saatchi, who also were behind renowned ad agency Saatchi & Saatchi.
By Tom Budszus, Alliance News reporter
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