M&C Saatchi posted a fall in profit for the year to December as the global advertising group restructures into a “leaner” business.
The company said pressure was easing on client marketing budgets pointing to an improving market backdrop.
But M&C is pushing ahead with a global efficiency program and was on course to deliver an additional £6.1 million of annualised savings by the end of 2024 totalling £10 million.
The company reported a 31% fall to £7.3 million in statutory operating profit. Before tax profit was down 87% to £0.7 million.
Net revenue for 2023 was down 7%, and 2% like-for-like, to £252.8 million.
The second half of 2023 was a materially better financial performance than the first and March quarter momentum was encouraging, the company said.
The company reported “challenging market dynamics” for advertising, consultancy and media.
The board of directors recommended a final dividend of 1.6 pence per share.
"2023 was a year of strategic progress,” said Zillah Byng-Thorne, executive chair.
“We have begun to transform into a leaner and more agile business laying the groundwork for sustained growth and improved profitability ahead.
“There is much more to do on simplifying how we interact with our clients and evolving our go-to-market strategy. With strengthened cash generation, we expect to re-invest in value accretive opportunities to enhance shareholder returns.
"I am delighted that Zaid Al-Qassab joins as CEO in May to lead M&C Saatchi on its next phase of growth, building on a simplified operating model and supported by our exceptional leaders.
"We are encouraged by our performance in the start to the year, and while macro-economic uncertainty across our markets remains, our continuing transformation, which is already delivering, underpins our confidence that we will meet expectations."
M&C Saatchi has been closing, winding down or selling to local executives its offices throughout the world, including Sweden, South Africa, China, Hong Kong, Indonesia and Singapore.
Asia and Australia have been merged into a new APAC region, managed from Australia by Justin Graham.
Redundancies have been reported in the creative team at the Australia business.
The 2023 numbers:
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