M&C Saatchi, the advertising and communications group, expects to convert more than 80% of operating profit into cash this year, sticking to its medium-term target despite a softer first half.
The reassurance came alongside interim results showing net cash had fallen to £2.5 million at the end of June, from £8.7 million a year earlier.
The company blamed share buybacks and a seasonal working capital swing that it expects to reverse in the second half.
On a like-for-like basis, net revenue slipped 1.4% to £86.2 million, dragged down by a weak first quarter before trading returned to modest growth in the second.
Like-for-like operating profit fell almost 32% to £6.2 million, with the margin down 3.1 percentage points to 7.2%, reflecting the revenue shortfall and spending on growth businesses and AI tools.
Statutory operating profit dropped to £1.3 million, from £7 million, after one-off costs.
The figures landed as M&C Saatchi pressed on with efforts to simplify itself.
A private equity-backed management buyout of its Australia and New Zealand arm has collapsed, and the group has sold its sub-scale Malaysia business.
The company reported 121 business wins so far in 2026, including Brand USA, Pizza Hut and Riot Games.
Dame Heather Rabbatts, executive chair, said trading had improved steadily since a tough end to 2025, helped by government work and integrated pitch wins.
She will stay in post given market volatility and the ongoing simplification, rather than the group appointing a chief executive.
M&C Saatchi remained confident of full-year like-for-like revenue and profit growth in line with market expectations, weighted to a seasonally stronger second half.
The conflict in the Middle East continues to weigh on its sport, entertainment and consumer-facing businesses in the region.
