An M&C Saatchi ad for the Brexit remain campaign
(Picture: M&C Saatchi)M&C Saatchi today looked to draw a line under its historic accounting scandal once and for all, as a watchdog investigation into the matter ended and it upgraded profit forecasts.
The storied ad agency, which has close links to the Conservative Party, said the Financial Conduct Authority had closed a year-long investigation into M&C’s 2019 scandal, which pushed the company to the brink and led to the exit of co-founder Maurice Saatchi and three other directors. The FCA is taking no enforcement action over the matter.
The watchdog opened the probe last January after accounting irregularities forced M&C into profit warnings. The crisis ultimately cost it just over £11 million.
A spokesperson for the FCA said: “Having completed the investigation and considered all of the information available in this case we have determined there is insufficient basis for the FCA to take action against M&C Saatchi.”
In the same update, M&C Saatchi said a flurry of business at the tail end of 2021 meant profits for the year were now set to be “materially” ahead of forecasts and have put the company in a position to resume paying dividends.
M&C said “momentum has continued into the start of 2022 with major client wins”. The board has “confidence in its future growth prospects” — indicating that M&C is not just back from the brink, but booming.
Shares rose 6.4p, or 3.6%, to 182.4p, valuing the business at around £220 million.
M&C’s own deputy chairman Vin Murria is said to be preparing a £250 million bid take the business private. The firm suffered a blow earlier this week when CFO Mickey Kalifa quit.
M&C Saatchi was founded in 1995 by brothers Maurice and Charles Saatchi, after they walked out of Saatchi & Saatchi following a spat with investors.
