Overview
- M&C Saatchi, which reported 2025 results Monday, said profit fell 34% to £19m and revenue slipped to £205m as the share price in early trade ticked down.
- The company warned the Iran–Middle East conflict will cut work in sports, entertainment and other consumer-facing areas, and it noted pressure from a softer UK market.
- Management plans to suspend the dividend and run an enhanced share buyback, and it guided for net revenue and operating profit growth in 2026 in line with market expectations.
- The firm blamed late-2025 disruptions from the US government shutdown and tariffs for lost public-sector work, saying contracts paused while agencies kept staff on payroll.
- Performance diverged across the group, with UK revenue down 4.6% to £103m, consulting down 19% to about £32m, media up 12% to roughly £25m, and the Middle East up 3.6% to £11.6m, as leadership shifts follow the CEO’s exit and activist Harwood presses for asset sales.