M&C Saatchi shares jump in London

By Chris Pash | 6 November 2019
Getty

Shares in M&C Saatchi surged in London after reports the advertising agency is speaking to boutique mergers and acquisition advisers Clarity.

The report in the London Sunday Telegraph talked of a possible strategic overhaul of the company.

The shares closed 6.51% higher at 180.00 pence on Monday. On Tuesday they dropped back 1%.

"The Conservative Party’s favourite advertising agency M&C Saatchi is in talks with advisers about a strategic overhaul after the discovery of accounting irregularities triggered a collapse in its share price," reported the Telegraph. 

The company's shares fell by half in August after deciding, following an accounting review, to take a one-off exceptional charge of £6.4 million to the 2019 results.

The latest results show M&C Saatchi's operating profit down in the first half of the year. The company expects full year profit to be down on expectations by 5% to 10%.

The company also reported an accounting review by PwC which is expected to lead to a restatement of 2018 results.

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