Finance
UK's ad group M&C Saatchi sees profitable growth in 2026, shares rise
Published by Global Banking and Finance Review
Posted on January 19, 2026
2 min readLast updated: January 19, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on January 19, 2026
2 min readLast updated: January 19, 2026
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.
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.
"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."
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)
Profitable growth refers to a company's ability to increase its revenue while maintaining or improving its profit margins, resulting in higher overall profits.
Cost savings are reductions in expenses that improve a company's profitability, often achieved through efficiency improvements or strategic changes.
Market response refers to how investors and consumers react to a company's announcements, performance updates, or market conditions, often reflected in stock price movements.
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