M&C Saatchi up as clients start spending again

The Tories' election advertising agency, M&C Saatchi, today reported a 17% surge in revenues to £58.2 million in the first half of the year as clients began spending again.

Adjusted profits also rose 17% to £6.3 million, thanks to a string of new account wins including the Tories, Ikea and the Mail on Sunday. Pre-tax profits dipped 15% because of one-off finance costs.

Chief executive David Kershaw described current trading as "strong", despite losing several accounts such as Fosters and Lucozade.

He said the general outlook remained uncertain but still reckons M&C's revenues should grow 7% next year. Analysts at Numis upgraded the forecast for full-year profits.

Britain generates just under half of the agency's revenues and M&C continues to expand overseas with new offices in Cape Town and Milan. The dividend is held at 0.87p.