M&C Saatchi Posts £8.5m in First Year of Listing

12 April 2005

London-headquartered ad network M & C Saatchi, which embarked on a partial IPO last July, celebrated its first year as a listed company with an 8.5% increase in 2004 pre-tax profits to £8.1 million ($15.32m; €11.8m). Revenues rose 4.8% to £62.2m, yielding a respectable 13.2% margin.

The accounts had been adjusted to include flotation costs and were bolstered by a robust performance by the network's Asia Pacific offices - up by 39% to £2.7m. Stateside operations, however, remain in the red.

Operating profits in the UK fell to £4.3 million from £5.2 million due to costs associated with the IPO and investment in Saatchi's European business. However, at an underlying level profits rose year-on-year by 3.1%.

Of the year ahead, ceo David Kershaw is bullish: "We continue to see good opportunities for organic growth and further international expansion and are encouraged by the new business performance in the current year."

Recent account gains include Privilege Insurance (a unit of the Royal Bank of Scotland) plus automotive and cycles retail chain Halfords. The group has also won new business from ITV, Mini, Twinings and Ribena.

Data sourced from Telegraph.co.uk; additional content by WARC staff