Sparks

M&C Saatchi’s year-end trading update indicates net revenue growth of around 3.5%, which is a good outturn in the market context and is in line with consensus estimates. The group has been undergoing a considerable transition in its operating model, so it is encouraging to see that this has not disrupted the momentum. The brief statement highlights the reinvestment of cash (enhanced by the efficiency initiatives) into capabilities and talent in the second half. The year-end net cash was £16m and there are facilities in place for £36m to pursue strategic opportunities, giving plenty of firepower to take advantage of opportunities. This is further backed by what management describes as ‘significant cash tailwinds’ into FY25 and beyond, now that the put option settlement recedes as an issue and the business is on a more efficient footing.