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Pre-tax profits fell by half at the advertising agency M&C Saatchi because of accounting charges related to the valuation of staff put options.

Revenue rose 26 per cent to £225m in 2016, or 19 per cent in constant currency terms. Pre-tax profits fell 46per cent to £6.8m because of changes to the value of subsidiaries. The company’s new clients included the Home Office, energy company E.ON, the civil aviation authority.

M&C Saatchi is a network of advertising agencies valued at about £261m. Co-founded by Charles and Maurice Saatchi in 1995 after they left Saatchi & Saatchi, the group they first set up in 1970, the group styles itself as a plucky alternative to larger holding companies such as WPP and Publicis.

The final dividend was raised 15 per cent to 6.44p for a full year dividend of 8.29p. David Kershaw, chief executive, said:

2016 was an outstanding year for M&C Saatchi. We continue to roll out our proven strategy of winning new business and starting new businesses and see positive momentum across our global network and business channels. The year has started well and we are confident that we will continue to make good progress in 2017 and beyond.

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