M&C Saatchi lifts forecasts after new client wins
M&C Saatchi has lifted its forecasts for the full year as it hailed better-than-expected trading in the first four months of the year.
The advertising group said business had been stronger than anticipated as the easing of lockdown restrictions sparked signs of a recovery in ad spend.
The London-listed firm also secured business from a number of new clients, including the first digital UK census campaign and a performance marketing campaign for Tinder in southeast Asia.
It also picked up new assignments from Lexus, Reckitt Benckiser and Sonos.
M&C Saatchi today also said it had secured £47m in financing from Natwest and Barclay.
The revolving facility agreement comes on a three-year term with two optional one-year extensions. It replaces the company’s existing £33m revolving credit facility and £5m overdraft, which were due to expire at the end of this month.
M&C Saatchi said its current balance sheet remains strong with net cash of £30m.
It comes as the iconic ad group attempts to draw a line under a dramatic accounting scandal that began in 2019 and sparked a board overhaul that saw the departure of founders including Maurice Saatchi.
New boss Moray MacLennan has set out a new strategy in a bid to turn around the company’s fortunes.
The company will target revenue growth of six per cent and a rise in operating profit of more than 25 per cent by 2025, as well as cost savings of roughly £30m.
M&C Saatchi will provide a further update on its full-year trading for 2020 at the end of June.