M&C Saatchi shares drop 9% on downbeat trading update

M&C Saatchi’s share price has dived 9% in the wake of a trading update that prepared investors for a small decline in like-for-like full-year revenues.

The company made the downgrade on the back of what it described as a continuation of “the more challenging trading environment, as widely reported across the sector”. This has impacted the “pace of business in the second quarter, particularly in the Advertising and Media specialisms”, it added.

The group's share price fell as much as 19% in early trading today but made up ground during the morning. At the time of publication it was down 9% on yesterday's close, at 157.50 pence. Over the past 12 months it has traded between 129 pence and 204 pence.

There were also positives highlighted in the trading statement, including the group’s confidence in delivering year-on-year headline profit before tax growth and headline operating margin improvement.

It also said its Passions, Consultancy and Issues specialisms continue to perform strongly.