UK market fuels M&C Saatchi growth

Advertising agency M&C Saatchi revealed a 22 per cent hike in annual revenue, helped by robust UK performance.

The UK accounts for over 40% of total revenue and nearly 60% of pre-tax profit.

"We are reaping the benefits of our growing global network and the roll-out of our growth specialist businesses such as M&C Saatchi Sport & Entertainment and M&C Saatchi Mobile," the group said in a company statement.

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UK like-for-like revenues were up 25%, with mobile performing particularly well. Despite challenging trading conditions, Europe like-for-like revenues rose 23%. Asia and Australasia like-for-like revenues climbed 6% while Africa's revenues increase fivefold to £3m. Americas' revenues surged 65%, driven by its Sao Paulo acquisition.

"2012 has started well. Despite uncertainty with the macro environment we are benefitting from new revenues from the significant wins last year, such as O2. In addition, we have already had further new business success with Eithad, the Commonwealth Bank of Australia and Edgars in South Africa," it added.

The agency, formed by brothers Maurice and Charles Saatchi in 1995, said pre-tax profit rose 17% to £15.6m while total revenue jumped to £153.1m from £125.1m in 2010.

M&C Saatchi, which secured advertising deals with BAE Systems and Google, said a final dividend of 3.50p per share has been recommended, up from 3.03p in 2010. The total dividend is up 15.4% to 4.50p.

The group said its strategy remains the same. "We will continue to build scale through work with multi-national clients; we will invest in high-growth new businesses in mature markets; we will increase our presence in desirable markets; and we will roll out proven models across the network. This strategy is producing strong financial results and the Board is confident that it will continue to do so in 2012 and beyond."

CJ