M&C Saatchi boosted by new business wins

Advertising agency M&C Saatchi revealed a 13 per cent increase in half year pre-tax profit, driven by a string of new contract wins.

M&C Saatchi, whose clients include O2, Intercontinental Hotels, Twitter and Virgin Holidays, said profit rose to £8.7m for the six months to end of June 2012 while revenue increased 15 per cent to £82.8m.

Operating profit rose to £8.6m from £7.6m and earnings per share rose to 7.95p from 7.15p.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

Progress was made across all regions with UK revenues up 16%, after a strong performance from CRM and mobile services. Europe like-for-like revenues rose by a quarter despite macro-economic challenges.

In Asia and Australasia lfl revenues climbed 12% while in the Middle East and Africa they soared 146% to £2.8m as it positions itself for a fast growing African market. Revenues in the Americas gained 12% with its New York agency set for opening in the final quarter.

"Looking ahead, we are confident that we will continue to make progress in 2012 and beyond. The strategy is working," the group said in company statement.

M&C Saatchi has offered an increased dividend payment of 1.10p from 1p before.

CJ