27th Mar 2025 11:59
(Alliance News) - M&C Saatchi PLC on Thursday said it is confident in meeting market expectations for 2025 as it reported improved profitability and upped its dividend.
The London-based advertising agency swung to a pretax profit in 2024 of GBP18.1 million from a loss of GBP800,000 in 2023.
The improvement came despite revenue declining 5.8% to GBP395.4 million from GBP420.0 million, which M&C Saatchi attributed to a mix of contributions from discontinued businesses, notably in South Africa.
On a like-for-like basis, revenue improved 0.4% to GBP392.5 million from GBP391.1 million.
The firm credited its improved profitability to a mix of local cost actions, its global cost efficiency programme and improved mix.
Project and direct costs fell 11% to GBP164.0 million from GBP183.4 million, and staff costs were down 7.1% at GBP163.8 million from GBP176.4 million.
Further bolstering the bottom line was an 87% reduction in impairment charges to GBP890,000 from GBP6.8 million.
Shares in M&C Saatchi were flat at 169.00p late Thursday morning in London.
The firm lifted its final dividend per share by 22% to 1.95p for 2024 from 1.60p for 2023. M&C Saatchi pays no interim dividend, so the final dividend is the full-year payout.
Moving to current trading, M&C Saatchi expressed confidence in meeting market expectations for 2025, saying this is rooted in its creative leadership, operating model, and the strength and diversity of its portfolio, despite continuing macroeconomic volatility.
Chief Executive Zaid Al-Qassab said: "2024 was an important and successful year for M&C Saatchi. Our strong results, with growing LFL net revenue, profitability and cash generation, were broad-based and reflect the health of the business.
"We have increased our resilience through further diversification of our portfolio, without over-exposure to any particular segment, and we are encouraged that we have the right model for future top-line growth and strong sustainable returns for shareholders.
"In the near-term, while remaining mindful of ongoing macro volatility, the board is confident that we are on track to meet market expectations for 2025."
By Christopher Ward, Alliance News reporter
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