Post Close Trading Statement & Conditional Share
Post Close Trading Statement and Conditional Share Awards Announcement
M&C Saatchi plc is pleased to announce a post close trading update for the year ended 31st December 2012. The results for the financial year 2012 are due to be announced on 18th March 2013. The board expects profits to be in line with expectations and anticipates further progress in the current financial year.
Following the strategy of New Businesses and New Business, M&C Saatchi has invested in its network, opening new offices in Singapore, Abu Dhabi and Stockholm as well as relaunching New York.
Further investment in new businesses will continue in the current year and has already resulted in a small acquisition of 60% of UK-based talent management agency Merlin Elite. This will become part of the Group's successful Sport & Entertainment division.
In the last six months the Group has added several major new clients including: Ballantine's, Centre Parcs, National Trust, Harveys, Peroni and Virgin Holidays.
Share Awards
Additionally, M&C Saatchi announces that the conditional share awards granted to four of the Company's Executive Directors on 14th October 2010 under the Company's Long Term Incentive Plan ('LTIP') vested on 31st December 2012, in accordance with the LTIP rules (the 'Rules'). The awards reflect the achievement of targets for both share price performance and total shareholder return conditions (TSR) - compared with the Company's listed peer group. M&C Saatchi has outperformed these share price targets and ranked first among the 15 comparator companies for TSR. When the LTIP was adopted each of the participants paid £97,250 to participate in the scheme. This sum was not refundable in the event that the vesting conditions were not met. Further details of the awards can be found below.
As a result of the vesting, a total of 3,546,932 ordinary shares of 1 pence each in the Company (the "Ordinary Shares") will be awarded to the following M&C Saatchi directors:
Executive Director Number of ordinary shares granted
Jeremy Sinclair 886,733
David Kershaw 886,733
Maurice Saatchi 886,733
Bill Muirhead 886,733
Lloyd Dorfman, Non-executive director and Chairman of the Remuneration Committee, said: "Three years ago, in conjunction with our major shareholders, a remuneration scheme was devised that ensured the alignment of the interests of the management team and shareholders. These awards reflect the strong operational performance of the M&C Saatchi businesses which has led to the Group's outstanding performance compared to its peer Group in terms of total shareholder return."
For further information, please contact:
M&C Saatchi +44 (0) 207 544 3693
Andy Blackstone, Company Secretary
Numis Securities +44 (0) 207 260 1000
Nick Westlake, NOMAD
Charles Farquhar, Corporate Broking
Tulchan Communications +44 (0) 207 353 4200
Lucy Legh
Susanna Voyle
Notes to Editors
Vesting occurred after the satisfaction of the necessary performance conditions, namely that the Company's average ninety day closing mid market share price as at 31st December 2012 was greater than 164.4p, and the Company's median total shareholder return was greater than the median total return of a group of comparator companies.
These awards will be satisfied by the Company in accordance with the Rules. It is expected that the Ordinary Shares will be allotted to the above directors, and application made for them to be admitted to AIM, when the awards are satisfied in April 2013. A further announcement will be made once the satisfaction of these awards have been completed.
END
This information is provided by RNS
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