REG - M&C Saatchi PLC - Trading Update

M&C SaatchiAnnouncement

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RNS Number : 6285I  M&C Saatchi PLC  24 November 2025

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS
DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF
MAR.

24 November
2025

M&C SAATCHI PLC

 

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

 

Trading Update

 

FY performance impacted by unprecedented US Government shutdown

Commitment to launch a share buyback programme

M&C Saatchi issues updated trading guidance for the twelve months ended 31
December 2025 ("FY 2025").

 

Trading update on 2025 year-end

 

Trading in the second half of the year has been adversely impacted by the
unprecedented US Government shutdown, the longest in history, affecting our
Issues specialism which is a significant contributor to the Company's fourth
quarter revenue and profit. While there is no impact to the relationship or
any ongoing contract agreements or longer-term growth of the business, we do
not expect to recover this lost revenue in FY 2025, which will therefore
materially impact our prior growth and profitability expectations. In light of
this, the Company now expects a LFL net revenue decline of around 7% (or a
decline of around 1.5% excluding Australia) with operating profit in the range
of £26m to £28m, indicating an operating profit margin of around 12.5% -
13.0%, which is below the expectation set out in the Company's interim results
announcement 1 .

 

Strategy for Australia

 

As updated in the Company's interim results announcement, the Company has made
significant structural changes in the Australian business, including a new
management team, a group-wide restructure and reset of the overhead cost base
to set the foundations for future growth. Management are exploring options to
secure growth and shareholder value.

 

Commitment to launch a share buyback programme

 

The Company believes that its strong balance sheet provides the opportunity to
repurchase shares given the current market position. In line with our capital
allocation policy, the Company's Board of Directors have decided to commit
funds to a share buyback programme of up to £5m over the next 12 months, with
the possibility to either extend the programme or increase its value. Further
announcements regarding this programme will be made in due course.

 

Longer term value drivers

 

We continue to be confident in the medium-term prospects of the Company and
its operational transformation with several high-margin growth engines. Our
Issues specialism, for example, is expected to return to double-digit growth
year-on-year in FY 2026 given the strength of the long-term relationships, the
new business opportunities and our continued successful work with our public
sector clients. This specialism, which boasts a strong profit margin, above
the average of Non-Advertising Specialisms, is approaching 30% of the
Company's topline revenue and this is expected to increase through its
continued development.

 

As we close a year which has been impacted by both macro uncertainty and
geopolitically volatility, we have nevertheless made progress in establishing
our integrated operating model, as well as being on track to complete our
announced £12m combined annualised cost saving programme. The Company is
looking forward to FY 2026 and we will provide further guidance at our FY 2025
results announcement.

 

Zaid Al-Qassab, Chief Executive Officer, said:

"I would like to thank all colleagues at M&C Saatchi for their continued
commitment to delivering fantastic work for clients in a very tough market
context. A challenging macro environment has been further compounded by the
unprecedented US Government shutdown, which adversely impacted our high-margin
Issues specialism in the fourth quarter. We remain confident that our
long-term value drivers will deliver growth and margin accretion. We also see
significant value upside from our diverse portfolio, deep partnerships with
clients, and creativity, and we are resolutely focused on maximising value for
clients, colleagues and shareholders, including via our commitment to a share
buyback programme."

 

The Company will announce a further trading update, in January 2026, in line
with its regular reporting to the market.

 

FURTHER INFORMATION

 M&C Saatchi                                           +44 (0)20-7543-4500
 Zaid Al-Qassab, Chief Executive Officer
 Simon Fuller, Chief Financial Officer
 Thomas Fahey, Head of Investor Relations

 Headland Consultancy                                  +44 (0)20-3805-4822
 Rob Walker / Charlie Twigg / James Waters

 MCSaatchi@headlandconsultancy.com

 Panmure Liberum - Nominated adviser and joint broker  +44 (0)20-3100-2000
 Edward Mansfield, Will King

 Deutsche Numis - Joint broker                         +44 (0)20-7260-1000
 Nick Westlake, Iqra Amin

 

About M&C Saatchi: M&C Saatchi is a creative solutions company with
specialist expertise and creativity in helping our clients grow by maximising
the reach and potential of their brands. It does this through its
regional-first operating model with five core specialisms - Advertising,
Issues, Passions & PR, Consulting and Media - which it leverages in an
integrated go-to-market approach. It has significant global reach, with major
hubs in the UK, Europe, Middle East, APAC and the Americas and is supported by
global shared services.  M&C Saatchi is headquartered in London and
listed on the FTSE AIM index of the London Stock Exchange.

 1  Interim results announcement on 18 September 2025.

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