M&C Saatchi UK sees profits fall 8.4%

M&C Saatchi's pre-tax profits fell 8.4% year on year to £6.5m in the year to 31 December 2016 in the UK.

In the company’s financial results published this morning, the UK business continued to be hit by "restructuring costs" of £1.6m in the ad agency last year. Operating profit also dropped 12% to £5.5m because of this.

When taking out the costs, the group said that operating profit grew 2% year on year.

Operating margin fell to 11.7% compared with 14% in 2015. When stripping out the restructuring costs, then the margin was 13.6% in 2016.

Like for like revenue grew 5% as the CRM, sport and entertainment, PR and mobile "continue to perform particularly positively".

The report added: "We experienced a commendable run of account wins across our group of businesses in the year, including Virgin Red, the Home Office, NN Investment Partners, E.ON, PHE (Antimicrobial Resistance), the Rail Delivery Group, the Civil Aviation Authority and the Department of Work and Pensions."

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