M&C Saatchi (SAA) investor relations material

Executive summary

• H1 2026 began with a challenging Q1 but improved in Q2, resulting in a 1.4% year-over-year decline in like-for-like net revenue to £86.2m, with strong growth in Issues and Media divisions and a robust Q2 exit rate.

• Advertising returned to growth in the UK, Europe, and US, while Issues and Media achieved like-for-like growth of 9.3% and 9.9% respectively.

• Business simplification continued with Malaysia moved to a franchise model, Australian Advertising deconsolidated, and central structure reductions.

• New business wins increased to 121, with a client retention rate of 82%.

Financial highlights

• Like-for-like net revenue was £86.2m (down 1.4% YoY); statutory net revenue was £87.8m (down 2.7%).

• Like-for-like operating profit declined 31.7% to £6.2m; statutory operating profit was £1.3m.

• Net cash decreased by £6.2m to £2.5m, impacted by share buybacks and seasonal working capital outflow.

• UK region net revenue grew 5.9% to £52.6m, exceeding pre-disruption levels; Americas down 8.7%, EMEA down 19.4%, APAC flat.

• Share buybacks totaled £2.2m in H1, with a further £1m in H2; programme purchased £2.9m of shares, representing 1.8% of issued share capital.

Outlook and guidance

• FY 2026 like-for-like net revenue and operating profit expected in line with market expectations, with H2 benefiting from seasonality, new business wins, and unwinding of working capital.

• Cash flow anticipated to improve in H2 due to seasonal factors and profit increase.

• Consulting and S&E segments to remain challenged by subdued project-based and discretionary spend.

• Early H2 performance and Q2 exit are encouraging, with a strong pipeline and some wins expected to flow into 2027.