M&C Saatchi (AIM:SAA) reported like-for-like net revenue of £86.2 million for the six months to 30 June, down 1.4% from £87.4 million a year earlier, as a weak first quarter gave way to modest growth in the second.
The advertising and marketing group said like-for-like operating profit fell to £6.2 million from £9.0 million, with margin down 3.1 percentage points to 7.2%, reflecting the revenue shortfall alongside investment in AI tools and scaling up its Media specialism. Statutory net revenue fell 2.7% to £87.8 million, while statutory operating profit dropped to £1.3 million from £7.0 million, hit by one-off restructuring costs that also pushed the group to a statutory pre-tax loss of £0.2 million, against a £4.3 million profit a year earlier.
Net cash fell to £2.5 million from £8.7 million a year earlier, after £2.2 million spent on share buybacks and a temporary working capital increase the company expects to unwind in the second half.
"Notwithstanding market conditions, we are confident in delivering LFL net revenue and operating profit growth for the full year 2026, in line with market expectations", said Executive Chair Dame Heather Rabbatts.
Non-Advertising specialisms, which include Issues, Consulting and Passions & PR, contributed 73% of group net revenue but saw operating profit fall 22.7% on double-digit declines in Consulting and Passions & PR. Advertising profit rose 38.5% on cost discipline and the exit of a loss-making Australian business.
The group completed the disposal of its sub-scale Malaysia operation in the first quarter and dropped a planned management buyout of its Australia and New Zealand business.
