Business
M&C Saatchi – 2023 Interim Results
M&C Saatchi – 2023 Interim Results.
About this update from M&c Saatchi Plc
[{"type":"text","content":"\n\nM&C SAATCHI PLC\n \n \n \n \n \nINTERIM RESULTS\n \n \nSIX MONTHS ENDED\n30 JUNE 2023\n \n \n \n \n \n14 September 2023\n \n\n\n \nM&C SAATCHI PLC\n(the \"Company\")\nInterim results for the six months\nended 30 June 2023\n \nStrong double-digit growth in the Issues and Passions specialisms.\nGood margin momentum going into second half with acceleration of new operating model.\n \nH1 Highlights\n\nFinancial\n\n\n\n\n· \n\n\nNet revenue of £120.4million (H1 2022: £129.4million).\n\n\n\n\n· \n\n\nHeadline operating profit margin of 8.3% (H1 2022: 14.0%), with Q2 margin of 12%.\n\n\n\n\n· \n\n\nHeadline profit before tax of £8.8million (H1 2022: £16.0million), with strong operating leverage mitigating the impact of lower revenue.\n\n\n\n\n· \n\n\nHeadline EPS of 4.47p (H1 2022: 6.37p).\n\n\n\n\n· \n\n\nNet cash at 30 June 2023 of £15.4million (30 June 2022: £39.7million), reflecting lower trading and the settling of put options.\n\n\n\n\nOperational\n\n\n\n\n· \n\n\nStrong double-digit net revenue growth in our Issues (+22% LFL) and Passions (+10% LFL) specialisms, which now account for c.£40million (33%) of the Group's net revenue, demonstrates the value of our ongoing diversification away from traditional advertising. New clients include Unilever, Channel 4 and JPMorgan, with new assignments from Diageo, Samsung and Pepsico.\n\n\n\n\n· \n\n\nGood progress being made on the strategy set out at the Capital Markets Day, with growth in our Fluency brand expanding our data capabilities, and put option settlement creating more opportunities for growth and investment returns.\n\n\n\n\n· \n\n\nAlong with the wider market, we have seen a significant slowdown in technology client spend in our Media specialism and a slower pace of new business wins in the Advertising division. However, 85% of the Company's full year revenue forecast is now booked as at the end of August, marginally ahead of 84% for the same time last year. Recovery is expected in the second half of the year.\n\n\n\n\n· \n\n\nEnhanced, simplified leadership structure under a new Executive Chair implemented, with investment focused on our specia...