M&C Saatchi (SAA) investor relations material

Executive summary

• 2025 results were impacted by macroeconomic and geopolitical disruptions, notably in Australia and from a 43-day U.S. government shutdown affecting high-margin Issues business.

• Leadership transition included a new Executive Chair and completion of phase two of the transformation program, focusing on centralising production, data, and restructuring in Australia.

• Strong client retention at 94% and 219 new business wins, with a focus on unlocking value through data, AI, and connected specialisms.

• The group maintained financial resilience, ending the year with a net cash balance of GBP 13.3 million after two M&A transactions and put option payments.

• The business is positioned for growth, leveraging expertise across industry, geography, and specialisms, with a focus on government and commercial sectors.

Financial highlights

• Like-for-like net revenue for 2025 was GBP 204.7 million, down 7.3% year-over-year, mainly due to macroeconomic headwinds and challenges in Australia.

• Operating profit declined by 26.1% to GBP 24.9 million, with margin down 310bps to 12.2%.

• Net cash increased to GBP 13.3 million, despite outflows for bonuses, M&A, and dividends.

• Media division grew 11.5% to GBP 25.2 million, accelerating from 2024's 8% growth.

• Operating cash conversion was strong at 94%.

Outlook and guidance

• Targeting increases in group operating profit and net revenue in 2026, driven by growth in Issues and Media divisions and cost program annualization.

• Q1 2026 trading is in line with expectations, providing a platform for growth in Q2 and beyond.

• No final dividend outflow in 2026; funds redirected to a GBP 4.5 million share buyback program.