REG - M&C Saatchi PLC - 2022 FY Trading Update and Proposed Board Change

M&C SaatchiAnnouncement

24/01/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230124:nRSX6134Na&default-theme=true

RNS Number : 6134N  M&C Saatchi PLC  24 January 2023

M&C SAATCHI PLC

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

2022 Full Year Trading Update and Proposed Board Change

Record performance in line with expectations

Strong revenue performance in higher growth specialisms and in the UK and
Americas

M&C Saatchi today is pleased to announce the following update on trading
for the twelve months ended 31 December 2022 ("FY 2022").

FY 2022 net revenue is expected to be £271m, representing growth of 9% versus
2021 (FY 2021: £249m). This reflects a strong performance in the Company's
higher growth specialisms (which grew 17%) and in the UK and Americas,
demonstrating the successful delivery of the Company's growth strategy
launched at the start of 2021.

FY 2022 headline profit before tax is expected to be at least £31m, in line
with previous expectations set out in April 2022, underpinned by strong new
business wins and central cost savings. This represents growth of at least 14%
versus 2021 (FY 2021: £27.3m) and the largest headline profit ever generated
by the Company.

Net cash at 31 December 2022 was £30.0m (31 December 2021: £34.4m), and the
drawdown on the Company's revolving credit facility has reduced to £7m (31
December 2021: £20m). The strong balance sheet provides further flexibility
for resuming the payment of dividends in 2023 and satisfying future capital
and investment requirements. The Company continues to plan to settle the
remaining put option liabilities in cash and has sufficient resources to do
so.

M&C Saatchi expects to announce its financial results for the twelve
months to 31 December 2022 in April 2023.

A Capital Markets Day (M&C Saatchi: Moving Forward) will be held on 8
February 2023, which will focus on enhancements to the Company's strategy and,
in particular, investment plans for high margin businesses.

Commenting on the FY 2022 performance, Moray MacLennan, Chief Executive
Officer said:

"2022 was another record year for M&C Saatchi. We remained focussed on
delivery for our clients, resulting in excellent retention and new business
wins. Investment in new capabilities and our unique specialist expertise
position us well for 2023, and beyond."

Proposed Board Change

Gareth Davis, Chair, has notified the Board that he does not intend to seek
re-election to the Board at this year's annual general meeting. The process to
identify and appoint a new independent Non-Executive Chair is already underway
and is being managed by Lisa Gordon, Senior Independent Director, in
accordance with corporate governance best practice. Gareth will continue to
act as Chair until his replacement is appointed. The Board continues to review
its composition to ensure it has the relevant skills and experience and will
make further appointments as appropriate.

Gareth Davis, Chair said:

"It has been a privilege to chair M&C Saatchi through a three-year
turnaround. Today's trading update highlights another record year for M&C
Saatchi, demonstrating the successful delivery of its growth strategy and
marks a further milestone in the Company's transformation journey."

Moray MacLennan, Chief Executive Officer said:

"On behalf of everyone who works at M&C Saatchi I would like to thank
Gareth for the key role he has played in not only stabilising our business,
but laying the foundations for future growth. I would like to thank him for
his support, wisdom and humour, which has been central to the extraordinary
turnaround."

 

 For further information please call:

 M&C Saatchi plc                                       +44 (0)20-7543-4500
 Gareth Davis, Chairman

 Moray MacLennan, Chief Executive Officer
 Numis Securities                                                    +44 (0)20-7260-1000
 Nick Westlake, Iqra Amin

 Liberum                                                            +44 (0)20-3100-2000
 Tim Medak, Mark Harrison, Benjamin Cryer, Will King

 Brunswick                                            +44 (0)207-404-5959
 Andrew Porter, Sumeet Desai, Kate Pope

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTSEUESDEDSESF