M&C Saatchi results in line with marketing company trend

M&C Saatchi says revenue increased by 17% to £58.2m for the first half.

Headline operating profit increased 13% to £6.3m and like-for-like revenue growth increased by 11% to £55.3m.

The company says that regionally, there was an especially good first half performance from Europe and, in terms of divisions, from project-based consultancy Clear.

M&C Saatchi says that UK trading in the UK remained tough but it generated new business from Mail on Sunday, Network Rail, the Olympic Delivery and the Conservative Party, among others.

The company mentioned the “cancellation” of the Change4Life campaign as part of Government cost-saving measures in its list of client losses.

The company saw strong business in its US, Australia and Malaysia divisions.

Chief executive David Kershaw says: “The Group has started the year well in what remains a challenging market. We have delivered significant revenue momentum and good earnings growth … These results have been driven by both new business wins and continued cost control.

“Looking ahead, the environment remains uncertain with limited visibility. Current trading, however, is strong and we continue to manage resources tightly while also seeking further opportunities that will provide the basis for future growth. We therefore remain confident that M&C Saatchi plc will continue to make good progress in the full year and beyond.”

The group’s robust results echo those delivered by other marketing services companies in recent months. Publicis Groupe posted organic growth of 5.3% for the first half year.

WPP Group reported worldwide revenues up 1.8% for the first five months of the year in June.

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