Saatchi Announce 69% Increase In Profits

Saatchi & Saatchi has announced results for the year ended 31 December 1994; Pre-tax profits were up 69% to £32.4 million, compared to £19.2 million in 1993.

Worldwide revenue was £775.4m. In the US, revenue was £314.5 million, a decline of 13%; trading was very mixed and dependent on the new business performance of individual units. Bates performed well. In the UK, revenue fell by 3.4% to £113.8 million; underlying revenue increased by 8.0%. Bates, Saatchi and Zenith all achieved double digit growth rates.

Saatchis announced that developing a transnational agency network will require a longer time than was originally anticipated, and as a result the CME.KHBB European network will be merged with Bates. This does not affect CME.KHBB in London or Minneapolis.

Charlie Scott, Chief executive and acting Chairman said that the past three months have been extremely eventful, and upsetting for all associated with the Group; clients, staff and shareholders. During this period their top priority was to reassure clients and staff, and to stabilise the position; this has been done, Charlie Scott affirmed, and they are “Back up to a normal operating environment”. He warned that the turmoil will affect performance in 1995.

Lost accounts attributable to the departure of Charles and Maurice represent around 6% of total worldwide revenue, Charlie Scott said. Following the loss of Mars, staff will not be laid off but kept in place to try and pursue other clients in the confectionery and pet-food sectors.