M&C Saatchi PLC - London-based advertising agency - Net revenue in the six months that ended June 30 declines 7.0% to £120.4 million from £129.4 million a year before, but M&C Saatchi says within that double-digit-percentage growth in ’Issues’ and ’Passions’ specialisms show the benefit of its diversification away from traditional advertising. Swings to pretax loss of £5.1 million from £300,000 profit. On an adjusted basis, pretax profit nearly halves to £8.8 million from £16.0 million. Net cash falls to £15.4 million from £39.7 million. Declares no interim dividend, unchanged from a year before. Paid a final dividend for 2022 and intends to adopt a progressive dividend policy in the future.

M&C Saatchi aims to deliver £3.8 million in annualised cost cuts this year, with £1.5 million of that benefiting 2023. Targets £10 million in annualised saving by end of 2024. Says revenue is pacing marginally ahead of this time last year with 85% of expected full-year revenue booked. Expects ‘small single-digit’ net revenue decline in the second half.

Zillah Byng-Throne, the former chief executive of magazine publisher Future PLC, moved from non-executive chair to executive chair from the start of this month, as Chief Executive Officer Moray MacLennan will retire the end of the month. M&C Saatchi points to ‘enhanced, simplified leadership structure under a new executive chair’ with ‘investment focused on our specialisms, and new leadership roles to drive creativity, execution, and efficiency’.

Current stock price: 125.00 pence, down 3.9% in London midday Thursday

12-month change: down 19%

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