Tuesday 10th December 2019
Advertising agency M&C Saatchi has taken a hit of £11.6 million following a review by PwC of its 2018 and 2019 financial results. This nearly doubles the original £6.4m loss the company announced in its half year results.
In August 2019 the Group initiated an internal accounting review of several of the Company's UK subsidiaries.
The agency issued its second profit warning in three months, leading its share price to plummet 43%.
A company statement said, “Led by the new Group Finance Director and overseen by the Group's audit committee, the Company is taking action to prevent the incidents that resulted in the above accounting misstatements from re-occurring.”
Group Finance Director, Jamie Hewitt stepped down last September after nearly 15 years at M&C Saatchi. His replacement Mickey Kalifa joined from Zoo Digital in January 2019.
The firm’s previous auditors KPMG, resigned earlier this year after apparently raising concerns about the company’s 2018 annual finance report.