Investors may shun marketing services
LONDON – Share prices of publicly listed marketing services firms are performing so poorly that investors may begin to shun the market, according to the latest research from Marketing Services Financial Intelligence.

According to the research, in the 14 months since January 2005 the average share price of marketing services firms rose by only 2.7%, compared with a FTSE All-Share index rise of over 25% cent during the same period. Among those to see a decline in share price were many of the smaller groups, including NWD Group, M&C Saatchi, Huntsworth, Media Square, Cello Group and EQ Group. Bob Willott, Marketing Services Financial Intelligence newsletter editor, said many of those who saw a decline are “either relatively new to the stock market or are revitalised shell companies”. He singles out M&C Saatchi as one of the worst performers in terms of share price. By Joe Lepper Brand Republic 7 Apr 2006

Well, well, well. It would appear that the agency that claims to be the quickest growing network, that is 100% Saatchi and never fails has just had another kick in the head.

Since floating themselves on the stock market in 2004/05 I’ve seen little or no improvement in the M&C network other than a few offices opening in Europe and I suspect these simply support the London hub office.

With the BA loss to BBH this really isn’t look good for those at Golders Square. Especially as Maurice and Charles (who is never there) are very nervous about share holders anyway. This is due to the events of 1993 where the shareholders of Saatchi & Saatchi were so fed up of the brothers taking advantage of their money they organised their ousting.

Maurice and Charles kept M&C a private limited company since its birth until recently but were forced to float themselves due to requiring cash to expand their network. This was predictable as they did seem to have a safe client base. Since the BA loss they don’t seem to have recovered.

It would therefore seem the future is somewhat uncertain for the network. They need a big high profile win, some ground breaking ads, to lose the arrogance and Wall Street persona and rethink their recruitment culture. Until then it looks like M&C will continue to wake up in a cold sweat from nasty nightmares of Mr Bartle, Mr Bogle and Mr Hegarty.

So, if you didn’t get a job with M&C and found them a little arrogant and aggressive in their approach you may take comfort in knowing that their style and culture is directly represented in the figures – a poor result.