Shares in M&C Saatchi PLC (AIM:SAA) tumbled 19% within the first half hour of trading as the company revealed it has been experiencing a difficult business environment, particularly in the advertising and media sectors, continuing into the second quarter.
However, it was not all bad news. M&C Saatchi highlighted that its businesses focusing on interests, consulting, and issues are continuing to perform strongly.
Despite forecasting a slight decline in its yearly revenue when compared with previous years, the company remains optimistic about delivering growth in its profit before tax and an improved operating margin.
This growth is expected to come from a combination of the high efficiency of its operations, specific cost-saving measures, and a worldwide cost-efficiency programme.
As a result, the profit before tax is predicted to be more substantial in the second half of the year, although the net revenue is expected to be spread more evenly throughout the year.
The company's confidence wasn't shared by the market with stock marked down 33.38p to 140.12p.