M&C Saatchi shares slide after founder and three directors quit

Lord Saatchi resigned a week after a major profit warning

The troubles at Golden Square have moved into a new phase as Maurice Saatchi, 73, steps down from the board of M&C Saatchi along with the agency group's three non-executive directors.

Insiders told The Telegraph that the walkout was triggered by the refusal of M&C Saatchi co-founders Jeremy Sinclair, Bill Muirhead and David Kershaw to accept new supervision or a rapid investigation of accounting practices.

Saatchi's departure follows a second profits warning at the firm last week.

Saatchi, an executive director at the AIM-listed firm, quit the company on Tuesday evening and was joined by three non-executive directors, Lord Dobbs, Michael Peat and Lorna Tilbian, all of which have stepped down with immediate effect. "We are determined to restore the operational performance and profitability of the business".

The company also revealed a £11.6m hole in its earnings last week.


The original Saatchi business, led by the Saatchi brothers, made a name for itself with its "Labour isn't working" campaign poster for Margaret Thatcher showing a queue of people snaking out from an unemployment office and disappearing into the distance.

M&C Saatchi said it would restructure its United Kingdom business in a bid to improve performance. David Kershaw, the group's chief executive, admitted the numbers "make for very hard reading - both for us as a management team and for all of our stakeholders".

Sinclair said the company had started a process to reconstruct its board with new independent directors, who "will have a mandate to conduct a full review of all aspects of our governance".

Their exits come just a week after the firm warned over profits after being hit by higher costs and a weak performance in the final quarter.

Related:

Comments

Latest news

Sharks fire coach Pete DeBoer as team continues to struggle
Can San Jose stop its slide versus the Rangers at home on Thursday night? DeBoer coached the Kitchener Rangers for seven seasons. Lundqvist made two starts against the Sharks last season, going 2-0-0 with a 2.39 GAA and.935 save percentage in those matchups.

Polling stations open across Ross-shire for the 2019 General Election
Total turnout at the 2017 general election was 68.8 per cent - the fourth successive election where turnout increased. However, none of the parties are likely to give them that support. "That's why we need a proper majority government".

What Cristiano Ronaldo said after pitch invader grabbed him by the
Cristiano Ronaldo was left fuming when a pitch invader grabbed him by the neck after Juventus' final Champions League group game. Juventus forward Cristiano Ronaldo has targeted a reunion with his former club Real Madrid in the Champions League final.

US, China reach phase one trade deal, source says
If you don't get the confirmation within 10 minutes, please check your spam folder. For your security, we've sent a confirmation email to the address you entered.

Hamilton talks informal, says Ferrari chief
Leclerc is the junior driver to four-time world champion Sebastian Vettel , whose contract at Ferrari ends after the 2020 season. And sometimes you need a crisis to put the goalposts in the appropriate place. "They have some common friends".

Other news