The tycoons behind M&C Saatchi (SAA) had more than £11m wiped off their fortunes as an accounting fiasco sent shares in the advertising agency plummeting dramatically. A brutal sell-off saw nearly half its value wiped out after it admitted ‘adjustments’ needed to its books now totalled £11.6m – almost double a previous estimate of £6.4m. M&C said a review by auditor PwC found divisions in the firm’s UK business had overstated income and amounts owed by clients, forcing it to issue a profit warning. It cost four of the agency’s founding partners – David Kershaw, Maurice Saatchi, Jeremy Sinclair and Bill Muirhead – about £2.8m each, or £11.2m in total. And it took the stock’s losses since the accounting review was first announced in August to a staggering 76.5%. In addition, the agency, which recently lost major client Natwest, expects profits in 2019 to be between 22% and 27% lower than the previous year.
Thousands of investors in Britain’s biggest commercial property fund have been blocked from accessing their money – triggering fears that other funds will follow suit. Blaming Brexit and the downturn in the retail sector for its problems, M&G PLC (MNG) revealed investors had been rushing to pull their money out of its £2.5 billiopn Property Portfolio. Those now locked into the fund will still be charged nearly £300,000 a week in fees. Some £1.5 billion has been withdrawn from the M&G fund since the start of 2019, but it has been unable to sell assets fast enough to pay back investors. It said: ‘Brexit-related political uncertainty and ongoing structural shifts in the retail sector have made it difficult for us to sell commercial property.’
Fashion retailer Quiz (QUIZ) revealed disappointing sales for the six months to September and warned of store closures. Not only was revenue from its stores down 11% to £31.3m, but online revenue was flat at £20m. The fast-fashion company, which targets young women and features a collection by the reality TV star Sam Faiers, was hit with a £7m charge relating to the slipping value of its stores. This pushed it to a loss of £6.8m, from a profit of £3.8m the year before, while revenue fell from £66.7m to £63.3m.
The City toasted Stock Spirits Group (STCK) after demand for its vodka in Poland helped to lift revenues across the group by 9% to £261m last year. Its vodka is so popular there that the east European spirits maker will spend £21m expanding its Polish distillation plant over the next three years. It is aiming to cash-in on demand in Poland for high-end spirits, and is selling more whisky through an agreement to distribute tipples such as Jim Beam. It was also boosted by a surge in sales in the Czech Republic, where it is the sole distributor of Diageo staples such as Baileys and Johnnie Walker. Full-year profits rose almost a quarter to £32m.
rose 6.5p, to 204p, as it said it was looking to triple the number of its UK sites after revenues jumped 22% to £80m in the 24 weeks to October 6. Loungers, which operates the Lounges and Cosy Club chains, cut its loss to £2.5m, from £4.2m last year.
