• Register
Return to: Home > News > Financial Results > M&C Saatchi takes £6.4m charge on accounting review

M&C Saatchi takes £6.4m charge on accounting review

Creative agency M&C Saatchi is taking a one-off exceptional charge of £6.4m to its 2019 results following an internal accounting review of several of the company's UK subsidiaries. The charge equates to £4.9m of specific issues identified in the review.  

The board is appointing independent advisors to undertake a review of all the Group's accounts and accounting systems, as well as setting aside an extra £1.5m as a conservative measure to provide for any potential further items arising.

The internal review followed on from the independent auditor's report by KPMG which raised concerns about the accounting controls across the group, reinforcing similar concerns raised by the Audit Committee. That was in late May 2019, and was published in M&C Saatchi’s annual report on 29 May. The internal review confirmed KPMG's concerns and found instances of misapplication of accounting policies, mostly relating to the timing of revenue recognition and incorrect accounting of some assets and liabilities.

 The company added that recently appointed Group Finance Director, Mickey Kalifa, has also appointed a new Finance Director for the UK division, together with additional senior finance staff. He is about to appoint the company's first Group Treasurer.

Top Content

    Brazil: regulation and technology form basis for recovery

    Opportunities in the capital markets and the ever-growing influence of technology are expected to have a significant impact on the Brazilian accounting profession over the next 12 months, writes Paul Golden.

    read more

    Mentoring support and the opportunity to delegate

    Jon Lisby will be known to many from his former role as CEO of Kreston International. Here, he explains the background to his new venture, Global Alliance Advisory Services (GAAS), and how he aims to offer support to alliance CEOs.

    read more

    Global by name, global by nature

    Stephen Heathcote became chief executive officer of PrimeGlobal on 1 June 2019. Robin Amlôt met him to discuss the various new challenges that he has taken on, and his ambitions for the association.

    read more

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.