Trade of M&C Saatchi shares suspended after deadline missed for audited results
The ad agency disclosed in August 2019 that several units of its UK business had overstated income and receivables
Bengaluru — M&C Saatchi said on Wednesday trading of its shares would be temporarily suspended from October, after the advertising agency failed to submit audited 2019 results in time due to delays caused by accounting errors revealed in 2019.
The London-listed firm also said it was cutting an unspecified number of jobs in its portfolio companies in the UK, Brazil, Malaysia and Los Angeles as it tries to ride out the effects of the Covid-19 pandemic.
M&C Saatchi, founded in 1995 by brothers and advertising moguls Maurice and Charles Saatchi after they were ousted from their advertising agency Saatchi & Saatchi, disclosed in August 2019 that several units of its UK business overstated income and receivables.
The company said audited results for 2019 would be published “within a matter of weeks” after it missed a September 30 deadline following a three-month extension due to the pandemic.
M&C said unaudited headline pretax profit for 2019 fell to £18.3m from £23.5m. However, it said trading so far in 2020 was strong and it was profitable in the second half of the year.
The company’s shares, which fell about 6% in early trading, recouped most of their losses and were 0.7% lower at 57.2 pence by 8am GMT.
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