M&C Saatchi UK to restructure following accounting scandal
The UK arm of M&C Saatchi is facing headwinds following an audit by PwC which has forced it to make £11.6m ($22.2m) in adjustments to its 2018 and 2019 financial results.
The issues were first revealed in August, when the agency said it would take a £6.4m hit, following “overaggressive” revenue recognition.
M&C Saatchi UK’s accounting review update (Click to enlarge)
The agency’s accounting issues also included understating project costs, listing obsolete assets on the balance sheet, and overstating the value of assets.
Hang on a minute, M&C Aust doesn’t comment because it’s “somewhat isolated” and due to the “independent nature” of its business. The parent company is in crisis, Lord Saatchi has walked from the board taking three directors with him but there’s no story here ? When WPP has holding company woes the AUNZ operation absolutely suffers from speculation and is expected to comment. How about even asking whether the Aust operation has done any of its own “aggressive revenue recognition” or overstating of its assets ? I see that KPMG have resigned internationally as auditors. What’s the story here ?
Hi there,
At this stage, M&C Saatchi locally have been refusing to comment, and are instead keen to stress the separate nature of the businesses. We have asked them to go on the record, but they have declined.
Vivienne – Mumbrella