Strip-out fair value adjustments and first-half operating profit rose 11 per cent year-on-year to £8.35m at media agency M&C Saatchi (SAA). The operating margin was maintained at 10 per cent, too, despite investment in three new offices and - even though they've risen 38 per cent this year - the shares remain undemandingly rated.
UK revenue grew 16 per cent to £36.3m, boosted by a strong performance from a range of clients including O2, National Trust, Harveys and Saga - operating profit here rose 20 per cent to £5.47m. And, despite the economic backdrop, European revenue rose 18 per cent to £7.83m, with a strong performance in Germany and Switzerland more than offsetting a sluggish French market. Key wins with Nedbank and Edgars Department Stores helped turnover at the Middle East & Africa unit jump from £1.1m to £2.8m there, which helped turn last year's operating loss into a profit of £330,000. The US operation has also been expanded and the new look agency is set for a launch in the fourth quarter - although this meant an operating loss here of £445,000.
Numis Securities has maintained forecasts for the full year and expects pre-tax profit of £16.7m, giving EPS of 14.9p (2011:£15.6/14p).
| M&C SAATCHI (SAA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 159p | MARKET VALUE: | £101m | |
| TOUCH: | 157-161p | 12-MONTH HIGH: | 161p | LOW: 112p |
| DIVIDEND YIELD: | 2.9% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 88p* | NET CASH: | £14.4m | |
| Half-year to 30 Jun | Turnover (£m) | Pretax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 71.9 | 7.07 | 6.20 | 1.00 |
| 2012 | 82.8 | 5.97 | 3.73 | 1.10 |
| % change | +15 | -16 | -40 | +10 |
Ex-div:31 Oct Payment:16 Nov *Includes intangible assets of £61m, or 97p a share | ||||
