Advertising and marketing agency M&C Saatchi has reported a loss in pre-tax profits to £0.3 million as it spent £8.4 million fighting off two takeover moves over the past six months.
In the last six months, the company saw a fall in profits from £4.8 million over the same period last year.
M&C Saatchi revealed that net revenues increased by 9.6% over the past half-year to £129.4 million compared with the same period last year.
The company said this was largely pushed down by costs from the ongoing takeover battle.
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The group has fielded takeover approaches from Next Fifteen Communications and rival Advanced Advt, the investment vehicle of its largest shareholder Vin Murria.
This comes as M&C Saatchi initially agreed to a £310 million takeover move by Next Fifteen. However, the firm pulled out a month later after the suitor’s share value plunged, which also impacted the value of the deal.
Murria’s most recent takeover approach valued the group at £253.6 million and was described as “derisory” by chairman Gareth Davis.
He said: “Delivery of a 52.4% increase in Headline PBT is an outstanding achievement by our management team.
“Despite considerable challenges created by a prolonged hostile takeover process, and strengthening economic headwinds, focus has been maintained on client services and growing the business.”
“Results to be proud of under any circumstances, but particularly with the distraction of a hostile takeover,” M&C Saatchi CEO Moray MacLennan said.
“Looking forward, the counter-cyclical nature of key growth businesses, together with a global efficiency programme, gives confidence in our strong standalone future and the outlook for the remainder of 2022 and into 2023.”
