M&C SAATCHI suffered as its market cap was nearly cut in half yesterday, after revealing a profit warning and an £11.6m accounting error, its second this year.

The Aim-listed ad firm said profit for the full year is expected to be between 22 and 27 per cent below the level it hit in 2018.

The accounting error came after an independent review by PwC.

M&C Saatchi's share price fell 46 per cent to 79p — its lowest in more than a decade — yesterday as traders abandoned the firm.

The accounting review related to several units in the company's UK business overstating income and receivables and M&C said it would restructure its UK operations.

"This restatement of our numbers and the reduction in forecasts make for very difficult reading," said chief executive David Kershaw.

The ad agency already set aside £6.4m in August after it had spotted an error in its accounts.

(c) 2019 City A.M., source Newspaper