REG - M&C Saatchi PLC - 2023 Full Year Trading Update

M&C SaatchiAnnouncement

18/01/2024 07:00

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RNS Number : 0650A  M&C Saatchi PLC  18 January 2024

M&C SAATCHI PLC

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

2023 Full Year Trading Update

Profit performance in line with expectations

Continued strong growth in Issues and Passions specialisms

M&C Saatchi is pleased to announce a trading update for the twelve months
ended 31 December 2023 ("FY 2023"). As set out at the Interim Results, we saw
improved momentum in H2, with particularly strong performances in our Issues
and Passions specialisms.

FY 2023 Headline profit before tax is expected to be in line with market
expectations, underpinned by strong H2 profit improvement as a result of cost
saving initiatives and a simplified structure, with H2 Headline operating
profit margin expected to have improved to 16% from 8% in H1. Full year net
revenue is expected to be £252m, representing a reduction of 7% versus 2022
(FY 2022: £271m).

Net cash at 31 December 2023 was £8.2m (31 December 2022: £30.0m),
reflecting the settlement of put options and some changes in the mix of
working capital; the Company has access to additional undrawn facilities of
£31m.

M&C Saatchi expects to announce its financial results for the twelve
months to 31 December 2023 in April 2024.

Zillah Byng-Thorne, Executive Chair said:

"It was an encouraging end to 2023 with the benefit of our strategy to focus
on our priority markets, growth specialisms and the global transformation
programme all beginning to have an impact in the business. Whilst economic
headwinds remain, we are pleased with the progress we are making on building
an enhanced and more connected operating model, which will accelerate our
growth trajectory and achieve our ambitions."

CEO Search Update

The Board has appointed Odgers Berndtson to assist with the process to find a
new Chief Executive Officer and this is well progressed. The Company will
update the market, as and when appropriate. In the interim, Zillah
Byng-Thorne, the Board's Non-Executive Chair, continues to act as Executive
Chair.

Further Announcement regarding Divestment of Subsidiary

Further to the announcement on 22 December 2023, the Company has completed the
divestment of M&C Saatchi Holdings Asia Pte. Limited ("M&C Saatchi
Asia"). M&C Saatchi Asia primarily traded as the Company's creative agency
in Indonesia.

The Company's entire interest in M&C Saatchi Asia has been acquired by
Anish Daryani, being a director of M&C Saatchi Asia, for aggregate cash
consideration of c.£500k. In the year ended 31 December 2022, M&C Saatchi
Asia generated profit before tax of c.£340k and is expected to break-even in
the year ended 31 December 2023.

Related party transaction

The divestment of M&C Saatchi Asia is considered to be a related party
transaction, for the purposes of AIM Rule 13 of the AIM Rules for Companies,
due to the acquisition of the Company's interest in M&C Saatchi Asia being
acquired by a director of the subsidiary. For the purposes of the AIM Rules
for Companies, the directors of M&C Saatchi, having consulted with the
Company's Nominated Adviser, Liberum Capital Limited, consider the terms of
this divestment to be fair and reasonable so far as its shareholders are
concerned.

 

 For further information please call:

 M&C Saatchi plc                           +44 (0)20-7543-4500
 Zillah Byng-Thorne, Executive Chair

 Bruce Marson, Chief Financial Officer
 Deutsche Numis                                                  +44 (0)20-7260-1000
 Nick Westlake, Iqra Amin
 Liberum                                                         +44 (0)20-3100-2000
 Max Jones, Benjamin Cryer, Will King
 Headland Consultancy                    +44 (0)20-3805-4822
 Stephen Malthouse, Charlie Twigg

 

 

 

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