M&C Saatchi PLC (AIM:SAA) shares were lower on Monday, as the ads firm told investors that its FY25 performance has been materially affected by the prolonged US Government shutdown, which disrupted fourth-quarter revenue in its Issues specialism.
The company said it now expects a like-for-like net revenue decline of around 7%.
Operating profit is forecast to be between £26 million and £28 million.
“I would like to thank all colleagues at M&C Saatchi for their continued commitment to delivering fantastic work for clients in a very tough market context," said chief executive Zaid Al-Qassab.
"A challenging macro environment has been further compounded by the unprecedented US Government shutdown, which adversely impacted our high-margin Issues specialism in the fourth quarter."
The ads firm's CEO, meanwhile, noted that management remained confident that our long-term value drivers will deliver growth and margin accretion, and pointed to " significant value upside" in across its portfolio.
Also today, M&C Saatchi announced details of a share buyback programme, of up to £5 million over the next year, supported by what it described as a strong balance sheet.
In London, M&C Saatchi shares were down around 16% changing hands at 105p.