New client wins and high-growth businesses meant decent progress at media agency M&C Saatchi (SAA). Strip-out exceptionals - largely a £4.4m a fair value loss related to put and call options - and underlying pre-tax profit rose 10 per cent to £17.2m, while the operating margin was maintained at 10.1 per cent.
UK revenue grew 13 per cent - buoyed by new business wins, including Center Parcs and Virgin Holidays - and operating profit here rose 17 per cent to £11m. In the Middle East & Africa, meanwhile, where new business such as mobile is booming, revenue more than doubled to £6.6m. Although profit there fell 14 per cent to £0.24m, largely reflecting infrastructure investment. Europe grew operating profit 14 per cent to £2.3m, while Australia and Asia delivered a chunky 46 per cent profit increase.
Still, the operating loss in the Americas nearly doubled to £21m, despite a 19 per cent rise in revenue. Although the New York office has been re-launched which, along with three new offices in Abu Dhabi, Singapore and Stockholm meant costs of £1.5m. And brand consultancy Clear saw profit tumble 85 per cent to £0.3m as its top clients cut spending in half - although Clear's costs have been pruned and 2013's first-quarter performance is looking better.
Broker Numis Securities expects adjusted pre-tax profit of £18.7m for 2013, giving adjusted underlying EPS of 16.1p (from 14.7p in 2012).
| M&C SAATCHI (SAA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 204p | MARKET VALUE: | £129m | |
| TOUCH: | 204-214p | 12-MONTH HIGH: | 230p | LOW: 132p |
| DIVIDEND YIELD: | 2.4% | PE RATIO: | 52 | |
| NET ASSET VALUE: | 85p* | NET CASH: | £17.9m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 104 | 10.5 | 10.0 | 3.62 |
| 2009 | 103 | 10.3 | 10.2 | 3.62 |
| 2010 | 125 | 7.81 | 4.15 | 3.90 |
| 2011 | 153 | 16.0 | 15.4 | 4.50 |
| 2012 | 169 | 9.88 | 3.89 | 4.95 |
| % change | +10 | -38 | -75 | +10 |
Ex-div: 5 Jun Payment: 5 Jul *Includes intangible assets of £60.5m, or 95p a share | ||||
