M&C Saatchi, whose profits have been dragged down by defence costs relating to failed takeoves, released record profit results for the year to December 2022.
Revenue jumped 17% to £462.5 million and billings were up 12% to £597.5 million.
Net revenue grew 8.7% to a record £271.1 million but statutory profit before tax of £5.4 million was down from £21.6 million in 2021, adversely affected mainly by £10.8 million of one-off defence costs relating to takeover bids for the company.
Last year was marked by a series of takeover bids, one from an insider and one from and outsider. Both failed.
The company has now reinstated dividend payments with a recommended final dividend of 1.5 pence per share.
A cost cutting program is expected to deliver savings in the second half of 2023.
This means profit will be more weighted to the second half of 2023, than in 2022.
CEO Moray MacLennan says the year was a record but not without challenges.
"Through a relentless focus on developing core capabilities both within and beyond advertising, alongside careful cost management, we have delivered high-margin and high-revenue growth and are pleased to reinstate dividend payments," he says.
"We approach 2023 with guarded optimism. Whilst macroeconomic uncertainties will require careful navigation and management, we have a clear roadmap in place and look forward to building on our solid foundations for profitable growth."
The company expects headline profit before tax for 2023 to be in line with market expectations of £36.5 million-£38 million, representing a 15%-19% increase on the record profits of 2022.
M&C Saatchi says it has seen some impact in the year to date from the headwinds in the technology sector, particularly in media.
"However, we continue to see the benefit of our diverse range of businesses with strong pipelines in the Consulting, Issues and Passions specialisms, which gives us confidence for the remainder of the year."
The 2022 full year numbers:
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