M&C Saatchi today announced a $15.1M adjustment to 2018 and 2019 financials following an independent review of its books by PwC. That’s an increase from the $8.3M adjustment announced in August.
M&C revised financial guidance for all of 2019, saying underlying profit before tax and exceptional costs is expected to be “significantly below the levels expected.”
It blamed lackluster business and higher costs for the weak outlook.
CEO David Kershaw said the restatement of the numbers and cut in forecast “make for very difficult reading, both for us as a management team and for all our stakeholders.”
Looking on the bright side, Kershaw said in his statement, “The only positives that we can offer are that a robust review has been undertaken and we have under our new group finance director, started implementing processes and procedures to prevent such issues from arising again.”
Tulchan Communications works M&C’s restatement beat.