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M&C Saatchi Expects Interim Profit Pain; Retains Full Year Forecast

(Alliance News) - M&C Saatchi PLC said after the market close Friday it expects interim profit to ...

Alliance News 16 August, 2019 | 6:35PM
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(Alliance News) - M&C Saatchi PLC said after the market close Friday it expects interim profit to decline on the year prior, but retains expectations for the full year.

For the six months ended June, the advertising firm forecasts pretax profit to be lower than the GBP11.0 million reported the year prior.

The first half results for 2019, however, are also expected to be weaker than those recorded in 2017 and 2016. In 2017 the firm reported GBP13.3 million in pretax profit, in 2016 just GBP11.4 million.

Despite this, M&C remains confident it will meet its full year operating profit expectations before exceptional charges. Consequently, the firm expects operating profit to improve on the GBP30.3 million reported the year before.

"This is as a result of the first half of 2019 having a larger number of loss-making entities, including start-ups, compared to prior years and the impact of the timing of revenues in 2019, including recent client wins and additional projects, the benefits of which we expect to flow to the second half year operating profit," M&C said in a statement.

In its Monday trading update, M&C said it would book a GBP6.4 million exceptional charge related to accounting issues.

Shares in M&C closed 0.9% lower at 229.00 pence in London on Friday.

By Ahren Lester; ahrenlester@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
M&C Saatchi PLC 188.00 GBX 1.08 -

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