REG - M&C Saatchi PLC - AGM Trading Update

M&C SaatchiAnnouncement

16/05/2024 07:00

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RNS Number : 6075O  M&C Saatchi PLC  16 May 2024

16 May 2024

M&C SAATCHI PLC

(the "Company" or "M&C Saatchi")

 

Trading update for the 2024 year to date

Good momentum; trading in line with expectations

M&C Saatchi provides the following update on trading for the period 1
January 2024 to date, ahead of today's Annual General Meeting.

Year to date performance has continued the good momentum we saw in the second
half of 2023 and is well ahead of the challenging prior year. Overall, we are
trading in line with expectations.

Like-for-like net revenue growth is low single digits, as expected, reflecting
improved performances in Advertising and Media, and continuing strong growth
in Issues. Our focus on profitability has ensured that operating margins are
well ahead of prior year. Net cash has also continued to grow since the 2023
year end.

The disposals made to rationalise the portfolio during 2023, and our actions
on costs, have significantly enhanced profitability.  We are on track with
the programme to deliver the £10 million of annualised cost savings by the
end of 2024, as previously announced. The structural changes we are making to
our cost base, alongside our new operating model, are expected to increase
operational leverage and help to support margin expansion and cash generation.

As part of our simplification strategy, the divestment of M&C Saatchi
(Switzerland) SA, which was part of Advertising, is today announced. The
Company has agreed to sell its entire shareholding to the local Director
(Olivier Girard) for nominal consideration. This entity operated at break-even
in the year ended 31 December 2023, but has been loss-making in the year to
date.

 

For further information please call:

 M&C Saatchi                                           +44 (0)20-7543-4500
 Zillah Byng-Thorne, Executive Chair
 Bruce Marson, Chief Financial Officer
 Jill Sherratt, Investor Relations
 Headland Consultancy                                  +44 (0)20 3805 4822
 Charlie Twigg
 Liberum Capital - Nominated Adviser and Joint Broker  +44 (0)20-3100-2000
 Max Jones, Edward Mansfield, Will King
 Deutsche Numis - Joint broker                         +44 (0)20-7260-1000
 Nick Westlake, Iqra Amin

 

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