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M&C Saatchi advertises growth

RESULTS: M&C Saatchi gave a strong pitch in the UK, but found itself tongue-tied in other regions
March 24, 2014

New clients and double-digit profit increase in the UK helped media agency M&C Saatchi (SAA) grow quickly last year. Selling its three-quarter stake in Walker Media for £36m in November financed a £21m share buy-back programme, too.

IC TIP: Hold at 292pp

Assuming Walker was owned for the whole year, sales grew 5 per cent, and operating profit before a £15.5m non-cash financial charge linked to minority put options rose 8 per cent to £18.5m. Saatchi's customer relationship management (CRM) business - which gathers data on users, allowing personalised marketing - and mobile tools were behind the UK's strong performance. And deals with Land Rover, O2 and coffee maker Douwe Egberts easily offset the loss of the Dixons' account in January.

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