Advertising firm M&C Saatchi has warned that the conflict in the Middle East is expected to significantly impact its sports and entertainment and consumer-facing businesses. The company has expanded in the region in recent years, with the Middle East now accounting for about 6% of group revenues, leaving it exposed to ongoing instability.

Shares edged lower and remain near a five-year low as the company also chose not to pay a dividend, citing tough macroeconomic conditions. Pre-tax profits fell 74.6% to £4.6 million, while revenues declined 12.1% to £347.4 million in 2025 compared with the previous year.

Despite the downturn, the company said operating profits are expected to improve in line with market estimates, supported by cost-cutting measures. A global efficiency and restructuring programme delivered £7 million in savings in 2025, and leadership said it remains confident in returning to net revenue and operating profit growth in 2026.