M&C Saatchi’s shares look cheap as its tranformation starts to bear fruit

2023 was a tough year for M&C Saatchi (SAA). The advertising agency saw adjusted operating profit fall by 8 per cent to £32.4mn on the back of lower sales and slimmer margins. Statutory operating profits were significantly worse at £7.3mn.

The largest division, advertising, reported an 8 per cent decline in like-for-like net revenue, while media – which represents about a tenth of the group – saw like-for-like sales tumble by 21 per cent. The ‘issues’ and ‘passions’ businesses fared significantly better, but it was not enough to offset the trouble elsewhere.