Shares in M&C Saatchi PLC (AIM:SAA, FRA:IZH) climbed over 5% to 132.24p after the advertising agency said it expects sales and profits for last year to be in line with its previous guidance.
Net revenue is expected to come in around £210 million for 2025 calendar year, down 9% from £231 million the year before, with like-for-like net revenue expected to have declined by around 7%, or 2.5% when excluding Australia.
Operating profits are likely to be around £26 million, it added, down from £35.2 million in 2024. This was after successfully delivering £12 million in annualised cost savings during the second half of the year.
With £13 million in net cash sitting on the balance sheet at year-end, Saatchi's said it is "ready to take advantage of strategic opportunities" in line with its capital allocation policy and share buyback plans.
The board hailed stronger trading in the second half, with improved pipeline conversion and new business wins across its key markets. These included Coca-Cola for Premier League sponsorship 'amplification', UK Government creative strategy frameworks, a major consumer launch for the Super Bowl, and expanded mandates from JP Morgan Chase and Ferrari.
Chief executive Zaid Al-Qassab said: "I am confident that our world-famous creativity and excellent client retention combined with our portfolio strategy and higher-margin growth drivers will deliver value for clients, colleagues and shareholders."
Further guidance for 2026 will be provided with the 2025 results, with the announcement date to be confirmed.
The shares are down a third from highs last summer, and down 26% from a year ago.
Analysts at Peel Hunt said the update was in line with the trading update given in November, with margins of 12.4% down from 15.2% the year before but higher net cash than expected.
"While the business has achieved £12m of annualised cost savings in 2H, this was offset by the lower revenue impact caused by a pause in Issues revenues as a result of the US government shutdown last year."
They added: "With the proximity of the profit warning in November, we had expected limited surprises with the year-end trading update and that is what materialised today...
"This is supportive of revenue growth in the new year; however, management has highlighted that macro challenges persist, and thus we expect this to lead to continued near-term caution in client spend."