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Bid-target M&C Saatchi reports record profits

Bid-target M&C Saatchi reports record profits

reuters.com · 04/29/2022 04:41
Bid-target M&C Saatchi reports record profits

- Bid-target M&C Saatchi SAA.L reported record annual profit for 2021 and said it would reinstate its dividend, underlining the advertising group's return to strength following a rocky period.

The British company said client wins and deepened relationships with the likes of Google, Uber and TikTok had helped its profit before tax to treble. It also forecast profit growth of 14% for 2022 and 32% for 2023.

The headline operating profit was a record 31.1 million pounds ($39.1 million).

Founded in 1995 by brothers and ad moguls Maurice and Charles Saatchi, M&C has been recovering from a 2019 accounting scandal that rocked the agency known for its campaigns for Britain's ruling Conservative Party.

One of the biggest names in British advertising, it has rejected takeover approaches from its director and biggest shareholder Vin Murria, saying the offers do not reflect its future value, but they remain in talks.

Murria's AdvancedAdvT has offered a cash and share mix. The shares in AdvancedAdvT have fallen since it lifted a share suspension in April.

M&C's shares were up 7%, valuing the business at around 236 million pounds.

($1 = 0.7963 pounds)

(Reporting by Kate Holton, Editing by Paul Sandle)

((kate.holton@thomsonreuters.com; 0044 207 542 8560; Reuters Messaging: kate.holton.thomsonreuters.com@reuters.net))