(Alliance News) - M&C Saatchi PLC on Friday said the UK Financial Conduct Authority has closed its investigation and will take no enforcement action against the London-based advertising agency.
In January 2020, the UK regulator began an investigation into M&C Saatchi following previously announced accounting issues, which led to a forensic review commissioned by the firm.
The company in August warned of accounting errors which led to the internal review. In December, it said it would be booking a GBP11.6 million charge based on the findings of the review.
Also on Friday, M&C Saatchi said it believes that headline pretax profit for 2021 will be "materially" ahead of prior expectations.
A strong trading performance has strengthened the company's cash position, allowing for the settlement of put option liabilities as they fall due in 2022, and the resumption of dividend payouts.
M&C Saatchi said it has continued into the start of 2022 with major client wins.
Shares in M&C Saatchi were up 3.6% at 182.39 pence on Friday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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M&C Saatchi (SAA)