M&C Saatchi posts 10% pre-tax profit growth at £17.2 million for 2012
International creative agency M&C Saatchi has posted a 10 per cent pre-tax profit to £17.2 million for 2012.
The agency has released its financial figures for 2012, which includes an 11 per cent growth in revenue to £169.5 million and an operating profit growth at the same level, at £17.1 million.
The company’s UK revenues grew by 13 per cent to £75.4 million with operating profit increasing by 17 per cent, while across Europe revenue rose by 11 per cent, with operating profit growing by 14 per cent.
The UK business brought in a number of new business contracts with companies such as Ballantine's, Center Parcs, National Trust, Harveys, Peroni, Intercontinental Hotels, Viking and Virgin Holidays.
David Kershaw, CEO of M&C Saatchi, said that the company had made ‘very good progress’ last year.
“The Group returned double digit revenue and operating profit growth. This arose from new business success, increasingly international and integrated, the profitable growth of new businesses in the mature markets and the rolling out of proven models across the network. This was whilst continuing to invest in further new offices and businesses,” he added.
Despite the growth, the company said that Clear has a ‘tough year’ in 2012, with nine out of 10 of its top ten clients spend half of their forecast budgets as a result of cuts or restructuring, which led the company’s operating profit to fall from £2 million to £0.3 million.
As a result the company was forced to ‘significantly downsize’ in New York and Asia, making cost savings of 31 per cent. Following winning new business with Bacardi, Novartis, Samsung and Pepsico in the fourth quarter however, the company expect Clear’s first quarter profitability to improve.
Content created with:
Find out more