Jan 19 (Reuters) - British advertising group M&C Saatchi forecast profitable growth in 2026 on Monday, supported by new client wins and cost savings, sending its shares up more than 6% in early trade.
M&C Saatchi Projects Profitable Growth for 2026, Shares Surge
M&C Saatchi's Growth Forecast and Market Response
Jan 19 (Reuters) - British advertising group M&C Saatchi forecast profitable growth in 2026 on Monday, supported by new client wins and cost savings, sending its shares up more than 6% in early trade.
Client Wins and Cost Savings
The company secured new business from Coca‑Cola, JP Morgan Chase, Ferrari and the UK government in the second half of 2025, and achieved 12 million pounds in annualised cost savings during the period, it said in a statement.
Market Challenges and Analyst Insights
"Through the implementation of our strategic regional growth teams, we saw improved pipeline conversion in the second half of FY 2025, translating into multi‑specialism wins across various markets."
Financial Forecast for 2025
Shares, which lost nearly 24% of their value in 2025, were on track to gain the most in a day since November 2023 at 0843 GMT.
The update has fuelled optimism among investors after a challenging 2025, when contract delays linked to the U.S. government shutdown and a weaker global environment prompted a profit warning and restructuring measures from the advertising firm.
Advertising groups globally have also been grappling with reduced client spending and delayed contracts as companies prioritise investments like artificial intelligence, amid ongoing economic and geopolitical uncertainty.
"While project wins improved in 2H, supporting the outlook for 2026 growth, we believe client caution on spend persists, keeping the backdrop challenging," Peel Hunt analysts said in a note.
The company reiterated its forecast for 2025 like-for-like net revenue to decline around 7%, with operating profit of 26 million pounds ($34.81 million).
($1 = 0.7470 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich and Janane Venkatraman)
