Business
Trading,Banking,Strategy update and results timing
Trading,Banking,Strategy update and results timing.
About this update from M&c Saatchi Plc
[{"type":"text","content":"\n \n \n RNS Number : 2280U\n M&C Saatchi PLC\n 28 July 2020\n \n \n \n \n Trading Update and Banking Facilities and Update on 2019 Results \n \n \n Half Year trading update\n \n \n Further to the announcement on 30 June 2020, the Company expects to report a small underlying profit before tax (PBT), before exceptional costs, for the 6 months ended 30 June 2020. \n \n \n Performance was particularly resilient in Q2, driven by continued growth in the World Services division and robust new business performance across sectors and geographies. New assignments include those from TikTok, BP, Bayer, and Tele2. Major government initiatives include the new launch of the better health campaign for Public Health England (UK), the Victoria State Government (Australia) in its fight against COVID-19, and the much talked about Iceland Tourism campaign.\n \n \n Given the uncertain global economic environment over the last few months, these initial results are encouraging and more favourable than management's expectations. Although revenue declined in H1 2020 compared to H1 2019, the better than expected second quarter performance and the swift and decisive action taken in reducing costs has resulted in a relatively stable first half year performance, stronger than was anticipated at the start of the pandemic.\n \n \n Our half year results will be announced in September as usual.\n \n \n Cash position and banking facilities\n \n \n \n \n \n The Group's balance sheet remains strong, and has improved further since the announcement on 30 June 2020, with total cash at £59m as of 23 July 2020, compared to £52m as of 23 June 2020. The Group has a committed £36m revolving credit facility (RCF) and a £5m overdraft facility with NatWest. The RCF is fully drawn and the overdraft remains undrawn, leaving net cash of £23m, compared to £16m on 23 June 2020. \n \n \n In addition to its existing facilities, the Company has received approval for £7m in funding through the UK Government's Coronavirus Large Business Interruption Loan Scheme (\"CLBILS\"). Given the current cash balance and existing headroom, securing the additional funding is an entirely precautionary measure aimed at ensuring the Company has sufficient cash balances to continue to operate under any plausible trading scenario. The additional headroom from the CLBILS facility i...