M&C Saatchi posted a 9.6% lift in net revenue to £129.4 million for the half year to June as the global advertising group continues to face a hostile takeover.
Headline profit before tax (PBT ) was 52.4% higher at £16 million for the six months.
However, statutory profit before tax was £0.3 million, down from £4.8 million in the same half year in 2021, impacted by the “ongoing takeover transaction costs” of £9.3 million.
Full year headline PBT is expected to be in the region of £31 million, in line with the company’s previous forecast of up 15% on 2021. The company intends to reinstate dividends, last paid in 2019, this year.
The company faces a takeover from AdvancedAdvT Limited, controlled by software entrepreneur and major shareholder (about 22.3%) Vin Murri, a former deputy chair of M&C Saatchi.
Murri believes M&C Saatchi has fallen behind its competition in terms of digital capabilities and growth, putting its creative base at higher risk.
M&C Saatchi directors continue to unanimously recommend that shareholders reject the offer,
CEO Moray MacLennan: "Results to be proud of under any circumstances, but particularly with the distraction of a hostile takeover.
“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.
“The plan is clear. Delivery is accelerating. Resilience proven."
Chairman Gareth Davis: "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.
“This continued performance, building on record profits in 2021, reinforces the board's belief in a strong independent future for M&C Saatchi.
“The board laid out its concerns over the low value and high risks involved in ADV's hostile bid. These concerns have been significantly increased due to ADV's continual refusal to seek US government regulatory approval (CFIUS). It is our belief that this could lead to the termination of key client contracts.
“I would respectfully request that shareholders support us in retaining our independence and therefore take no action at this time."
The numbers for the half year to June:
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.