M&C Saatchi celebrates another record year as 'integrated approach' pays off
Tuesday 19 March 2013
The veteran Soho Mad Men who run M&C Saatchi were yesterday celebrating another year of record revenues as the advertising group defied the tough economic climate by expanding beyond traditional ads into new areas such as mobile, customer loyalty programmes and sports marketing.
The Olympics helped to drive revenues up 13 per cent to £75.4m at the UK arm last year, with headline operating profits surging 17 per cent, despite the wider market being flat at best for TV and press.
David Kershaw, its chief executive, credited new account wins including National Trust, Peroni, Intercontinental Hotels and Virgin Holidays, as well as existing clients such as NatWest and Transport for London.
The media group won more "integrated" business, by offering clients a range of marketing services and not just advertising.
M&C, which operates 27 offices around the world, saw group turnover rise 11 per cent to £169.5m.
Profits before exceptional items jumped by a tenth to £17.2m, but fell to £9.9m on a pre-tax basis because of an accounting change related to the value of future share awards. The dividend jumped by 10 per cent to 4.95p a share, which means another payday for Mr Kershaw and fellow directors Maurice Saatchi, Jeremy Sinclair and Bill Muirhead, who own around 7 per cent each.
They collected nearly £2m worth of shares each last month, after a bonus scheme paid out.
The quartet, who founded M&C in 1995, are all between their late fifties and late sixties, but have no intention of quitting.
"We still enjoy it and it still seems to be working," Mr Kershaw said. "The company is only 17 years old – it's just in adolescence."
- 1 Green village to be bulldozed and mined for lignite in Germany's quest for non-nuclear fuel
- 2 HeForShe campaign: Iceland to follow up Emma Watson speech with UN women's rights conference – for men only
- 3 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 4 Teenagers irritable because early school hours mess with their biological clocks
- 5 Now we know whose fault it is if you end up being murdered in Thailand
Isis could become 'world’s first truly terrorist state' and bomb UK with nuclear and chemical weapons, Theresa May warns
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
The Aral Sea: Nasa pictures show how what was once the fourth largest lake in the world has become almost completely dry
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...