Business
Capital Markets Day and Trading Update
Capital Markets Day and Trading Update.
About this update from M&c Saatchi Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 1328N\n M&C Saatchi PLC\n 28 January 2021\n \n \n \n \n 28 January 2021\n \n \n M&C Saatchi Plc\n \n \n (the \"Company\" or the \"Group\")\n \n \n Capital Markets Day and Trading Update\n \n \n M&C Saatchi is today hosting a virtual capital markets event for institutional investors and analysts where it will announce a new strategy, operating model and medium-term financial targets. The presentations and a video recording of the event will be made available on the Company's website at www.mcsaatchi.com after the event. \n \n \n Strategy Highlights\n \n \n We will be setting out a new customer-focused strategy and operating structure to address changing client needs whilst improving operational efficiency, with the presentation to cover the following:\n \n \n · \n Building from Strength\n \n \n · \n Clear Mission: Meaningful Change\n \n \n · \n New Strategy: Connected Growth\n \n \n · \n New Operating Model: Five Specialist Divisions\n \n \n · \n New Growth Drivers\n \n \n \n \n \n Financial Highlights\n \n \n The Group will also set out a number of financial targets to be achieved over the course of 2020 to 2025:\n \n \n · \n Net revenue growth of 6% CAGR (FY 2020 to 2025)\n \n \n · \n Operating profit growth of >25% CAGR (FY 2020 to 2025) \n \n \n · \n Strong operational leverage and tight cost control; £30m pa of cost savings initiated in 2020\n \n \n · \n A Group operating margin of 18% by 2025\n \n \n · \n Improved margins projected for all Regions and Specialist Divisions\n \n \n · \n Strong Free Cash Flow \n \n \n · \n Limited additional investment will be required due to strong existing foundations\n \n \n \n \n \n Current Trading\n \n \n · \n Trading in Q4 2020 was ahead of expectations, a resilient performance reflecting the breadth of the Group's customer base\n \n \n · \n Year-end cash was significantly ahead of expectations with net cash of £33m at 31 December\n \n \n · \n FY20 results expected to be ahead of the expectations set out in the Group's interim results announcement of 28 October 2020\n \n \n · \n Covid-19 uncertainties remain for 2021, but operational progress and closure of loss-making business (resulting in £4m run rate savings) is expected to support year-on-year growth\n \n \n \n \n \n \n Moray MacLennan, Chief Executive Officer, co...