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M&C Saatchi 2011 Final Results

M&C Saatchi this week published its final results for 2011.

Strong results, with continued revenue momentum and earnings growth, with M&C Saatchi Performance playing a key role.

Strategy working:

  • Best year-on-year revenue growth since flotation in 2004
  • Group Revenues up 22% to 153.1m (2010: £125.1m); up 20% using constant currencies
  • Group reaping the benefits of expanding global network and the continued roll-out of high-growth diversified businesses
  • Headline profit before tax up 17% to £15.6m (2010: £13.3m)
  • Strong balance sheet and positive cashflow
  • Headline basic earnings per share up 14% at 14.30p (2010: 12.59p)
  • Final dividend of 3.50p per share (2010: 3.03p); total dividend up 15.4% to 4.50p (2010: 3.90p)
  • Global Network performed well across all geographies:
  • UK: like-for-like revenues up 25%, with mobile performing particularly well
  • Europe: like-for-like revenues up 23%, in spite of challenging trading conditions
  • Asia and Australasia: like-for-like revenues up 6%
  • Africa’s revenues up fivefold to £3m
  • Sao Paulo acquisition  driven up Americas’ revenues 65%
  • Clear performed well following restructuring with like-for-like revenue up 11% and operating profit up 2%
  • Strong new business performance – particular success in with multinational clients
  • Start-ups in data and social media making good progress

Commenting on the results, David Kershaw, Chief Executive, said:

“M&C Saatchi has produced another strong performance and has made further excellent progress indelivering the best year-on-year growth in revenue since our flotation in 2004.

“We are reaping the benefits of our growing global network and the roll-out of our growth specialist businesses such as M&C Saatchi Sport & Entertainment and M&C Saatchi Performance.

“2012 has started well. Despite uncertainty with the macro environment we are benefitting from new revenues from the significant wins last year, such as O2. In addition, we have already had further new business success with Eithad, the Commonwealth Bank of Australia and Edgars in South Africa.

“Our successful strategy remains the same. We will continue to build scale through work with multi-national clients; we will invest in high-growth new businesses in mature markets; we will increase our presence in desirable markets; and we will roll out proven models across the network. This strategy is producing strong financial results and the Board is confident that it will continue to do so in 2012 and beyond.”

Full results can be found here

Further comment can be found in The Guardian