Positive results for M&C Saatchi as profits rise on new business wins and growing markets

 
Oliver Smith
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M&C SAATCHI yesterday reported profits up six per cent for the first half to 30 June, on the back of new business wins for the company.

The London-based advertising agency, behind the NHS’s “Change 4 Life” promotion to encourage healthy eating and the “Keeping London Moving” campaign to celebrate the 150th anniversary of the London Underground, saw profits rise to £9.3m, from £8.7m compared to the same period last year.

“M&C Saatchi has continued to make good headway over the first six months of 2013. This stems from new business wins and flourishing new businesses,” said chief executive David Kershaw.

Revenue for the group rose five per cent to £87.1m for the period, and UK sales rose eight per cent to £39.1m.

Kershaw said: “Looking ahead, we are confident that we will continue to make progress in 2013 and beyond. The strategy continues to deliver.”

The group announced it would increase its interim dividend by 10 per cent to 1.21p.

It reported a three per cent decline in Asia and Australasia sales, as revenues from China now flow through a subsidiary.

“We view the success the group has had with mobile and customer relations management as evidence of how its strategy of investing in new product areas and geographies, combined with winning new business, is driving revenue growth, which we forecast to be double the industry rate going forwards,” said Paul Richards of Numis. Numis maintained its ‘add’ rating and 332p target price. Shares in M&C Saatchi closed flat at 290p yesterday.