Two of the UK's mid-tier advertising outfits provided an unwelcome start to the week, with bothM&C Saatchi PLC (AIM:SAA) and S4 Capital PLC (LSE:SFOR, OTC:SCPPF) warning that trading has turned trickier as the year-end approaches. Neither update was scheduled, which tells its own story.
Shares in M&C Saatchi PLC (AIM:SAA) and S4 Capital PLC (LSE:SFOR, OTC:SCPPF) sank 6% and 7% after both groups warned that 2025 will fall short of expectations. The updates underline how fragile demand remains across the advertising and marketing landscape, where budgets are still being trimmed and visibility is patchy as clients head into the year-end planning season.
Analysts welcomed M&C Saatchi PLC's (AIM:SAA) full-year results on Thursday, as both its 2024 performance and guidance for 2025 came in line with market expectations - a reassuring outcome following a year of sweeping internal change. The advertising and communications group, which has spent the past 12 months transitioning to a more integrated global model, reported like-for-like net revenue growth of 3.7% to £231 million.