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M&C Saatchi plc
M&C Saatchi PLC - AGM Trading Update
16th May 2024, 06:00
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RNS Number : 6075O
M&C Saatchi PLC
16 May 2024
 

16 May 2024

M&C SAATCHI PLC

(the "Company" or "M&C Saatchi")

 

Trading update for the 2024 year to date

Good momentum; trading in line with expectations

M&C Saatchi provides the following update on trading for the period 1 January 2024 to date, ahead of today's Annual General Meeting.

Year to date performance has continued the good momentum we saw in the second half of 2023 and is well ahead of the challenging prior year. Overall, we are trading in line with expectations.

Like-for-like net revenue growth is low single digits, as expected, reflecting improved performances in Advertising and Media, and continuing strong growth in Issues. Our focus on profitability has ensured that operating margins are well ahead of prior year. Net cash has also continued to grow since the 2023 year end.

The disposals made to rationalise the portfolio during 2023, and our actions on costs, have significantly enhanced profitability.  We are on track with the programme to deliver the £10 million of annualised cost savings by the end of 2024, as previously announced. The structural changes we are making to our cost base, alongside our new operating model, are expected to increase operational leverage and help to support margin expansion and cash generation.

As part of our simplification strategy, the divestment of M&C Saatchi (Switzerland) SA, which was part of Advertising, is today announced. The Company has agreed to sell its entire shareholding to the local Director (Olivier Girard) for nominal consideration. This entity operated at break-even in the year ended 31 December 2023, but has been loss-making in the year to date.

 

For further information please call:

M&C Saatchi

+44 (0)20-7543-4500

 

Zillah Byng-Thorne, Executive Chair


Bruce Marson, Chief Financial Officer


Jill Sherratt, Investor Relations


Headland Consultancy

+44 (0)20 3805 4822

 
Charlie Twigg

 

 

Liberum Capital - Nominated Adviser and Joint Broker

+44 (0)20-3100-2000

 
Max Jones, Edward Mansfield, Will King

 

 

Deutsche Numis - Joint broker

+44 (0)20-7260-1000

 
Nick Westlake, Iqra Amin

 

 

 

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