M&C Saatchi trims outlook as US shutdown hits Issues unit
By Iain Gilbert
Date: Monday 24 Nov 2025
(Sharecast News) - Advertising and marketing firm M&C Saatchi cut its full‑year outlook on Monday after the record 43‑day US government shutdown hit its public sector division.
M&C Saatchi's Issues business, which handles public relations work for governments, was adversely affected by the shutdown, which left federal workers unpaid for more than a month.
The AIM-listed firm noted the unit was a key contributor to fourth‑quarter profit and warned the lost revenue would not be recovered in 2025, though it stressed that client relationships and contracts remain intact.
"In light of this, the company now expects a LFL net revenue decline of around 7% (or a decline of around 1.5% excluding Australia) with operating profit in the range of £26m to £28m, indicating an operating profit margin of around 12.5% - 13.0%, which is below the expectation set out in the company's interim results announcement," said M&C Saatchi.
As of 1030 GMT, M&C Saatchi shares had slumped 12.69% to 110.01p.
Reporting by Iain Gilbert at Sharecast.com
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