M&C Saatchi has reported an “encouraging” end to 2023 as it ramps up its search for a new CEO to replace outgoing Moray MacLennan.
The agency’s latest trading update to the London Stock Exchange has revealed an improvement for the final six months of 2023, with pre-tax profits revealed to be broadly in-line with market expectations.
An improved profit performance bolstered by the strong second half of the year, which the agency credited to “cost-saving initiatives and a simplified structure”, which saw the company streamlining its various UK subsidiaries to create one “supergroup”.
Headed up by UK group CEO Marcus Peffers, this move was part of a wider bid to prioritise a “more collaborative operating model” across M&C Saatchi’s network, including its government and tourism businesses.
The update said the company’s operating profit margin for the final six months of the year is expected to have doubled, to 16% from 8% in H1 2023, with an “improved momentum” revealing particularly strong performances across the Issues and Passions specialisms.
Overall, full year net revenue is expected to be £252 million, a 7% drop against 2022.
Subscribe to Marketing Beat for free
Sign up here to get the latest marketing campaigns sent straight to your inbox each morning
The advertising group also revealed that it has appointed headhunter Odgers Berndtson as it continues to search for MacLennan’s permanent successor, after he left M&C Saatchi at the end of September.
Executive chair Zillah Byng-Thorne will continue to act as temporary executive chair in the meantime.
“It was an encouraging end to 2023 with the benefit of our strategy to focus on our priority markets, growth specialisms and the global transformation program all beginning to have an impact in the business,” said Byng-Thorne.
“Whilst economic headwinds remain, we are pleased with the progress we are making on building an enhanced and more connected operating model, which will accelerate our growth trajectory and achieve our ambitions.”
In its last interim results for the six months ending 30 June 2023, M&C Saatchi reported a pre-tax profit of £8.8m, down from £16m in the same period in 2022.
Full-year results are expected to be reported in April.
