REG - M&C Saatchi PLC - M&C Saatchi Capital Markets Day

M&C SaatchiAnnouncement

08/02/2023 07:00

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RNS Number : 2301P  M&C Saatchi PLC  08 February 2023

8 February 2023

M&C SAATCHI PLC

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

Capital Markets Day

 

M&C Saatchi is today hosting a capital markets event for institutional
investors and analysts. The event will be hosted by Chief Executive Officer,
Moray MacLennan and Interim Chief Financial Officer, Bruce Marson, and will
include presentations from leaders within the group.

Following two years of record results, the Company will announce its new
strategy, accelerating high-margin, digitally led growth. Having turned the
Company around and building on strong foundations, the focus is now on the
delivery of creative solutions to M&C Saatchi's clients. It will use its
specialist expertise connected through data and tech to deliver meaningful
commercial and societal change.

Strategy Highlights

The Company will be setting out its new strategy in the presentation, to cover
the following:

 ·             Building new capabilities, with a focus on data, technology and digital
               transformation.
 ·             Identifying new opportunities, shifting from start-ups to targeted M&A and
               partnerships.
 ·             Embedding a new, more efficient operating model, delivering significant cost
               savings and enhancing productivity.

 

Financial Highlights

 ·             Net revenue growth of 8% CAGR (from £271m to £400m).
 ·             Operating profit growth of 16% CAGR (from £35m to £74m).
 ·             Operating profit margin of 18% by 2027, top end of the industry range.
 ·             Improved margins in all specialisms, with higher-margin specialisms expected
               to represent 60% of group net revenue by 2027.
 ·             Headline earnings 1  (#_ftn1) growth of 22% CAGR (from £18m to £50m).

 

The Company will also set out new financial targets, 2022 - 2027:

 ·             Net cash improvement of 45% CAGR (from £30m to £195m).

The event will start at 10:30am. To register for the live webcast please
email: mcs@brunswickgroup.com (mailto:mcs@brunswickgroup.com) . The
presentation will be made available on the Company's website at
https://mcsaatchi.com/ (https://mcsaatchi.com/) after the event.

Current Trading and Outlook

As noted in the trading update on 24 January 2023, FY 2022 net revenue is
expected to be £271.4m, representing growth of 9% versus 2021 (FY 2021:
£249.3m). FY 2022 headline profit before tax is expected to be £31.8m,
slightly ahead of previous expectations set out in April 2022 and representing
growth of 16% versus 2021 (FY 2021: £27.3m). While conscious of the macro
environment, the Company's trading through Q4 2022 and the start of 2023
continues to be in line with management expectations.

Moray MacLennan, Chief Executive Officer, commented:

"Today is about launching the next stage in our transformation journey. Over
the past two years we have delivered on the strategy we set out, demonstrated
by successive sets of record results. M&C Saatchi: Moving Forward lays out
our plans to accelerate high-margin, digital led growth, through targeted
investments and a more efficient, streamlined operating model. It is about
demonstrating our resilience to macroeconomic uncertainties through our
operational and financial strength and counter-cyclical and resilient
specialisms, underpinned by a committed and experienced management team."

 

 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, Max Jones, Benjamin Cryer, Will King
 Brunswick                                                       +44 (0)207-404-5959
 Andrew Porter, Kate Pope

 

 

 1  (#_ftnref1) Earnings is calculated after deducting tax and the share of
profits attributable to non-controlling interests

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