Kingston Smith's latest report shows which agencies had the highest profit margins last year and which shop's staff made the most fee income per head.
Top 50 agencies by operating profit margin
| Company name | Year end | Latest | Previous | Change | |
| % | % | % | |||
| 1 | Fallon London Limited | 31/12/2017 | 31.56 | 17.89 | 13.67 |
| 2 | VCCP Group LLP | 31/12/2017 | 28.67 | 23.37 | 5.30 |
| 3 | Krow Communications Limited | 31/12/2017 | 26.17 | 26.16 | 0.01 |
| 4 | Langland Advertising Design and Marketing Limited | 31/12/2017 | 23.98 | 13.23 | 10.75 |
| 5 | Maverick Advertising & Design Limited | 30/06/2017 | 21.95 | 11.79 | 10.16 |
| 6 | DDB UK Investments Limited | 31/12/2017 | 19.85 | 26.43 | (6.58) |
| 7 | Innocean Worldwide UK Limited | 31/12/2017 | 18.96 | 19.30 | (0.34) |
| 8 | Accord Marketing Limited | 31/03/2018 | 18.89 | 23.85 | (4.96) |
| 9 | HPS Marketing Communications Limited | 31/10/2016 | 18.56 | 16.76 | 1.80 |
| 10 | AKA Promotions Limited | 25/03/2017 | 17.65 | 15.79 | 1.86 |
| 11 | Karmarama Limited | 31/08/2017 | 16.49 | 4.64 | 11.85 |
| 12 | Connect Advertising & Marketing LLP | 31/05/2017 | 16.38 | 20.95 | (4.57) |
| 13 | St Luke's Communications Limited | 31/12/2017 | 16.20 | 22.88 | (6.68) |
| 14 | Abbott Mead Vickers.BBDO Limited | 31/12/2017 | 16.00 | 15.04 | 0.96 |
| 15 | ThinkBDW Ltd | 31/12/2017 | 15.82 | 17.44 | (1.62) |
| 16 | Publicis Limited | 31/12/2017 | 15.41 | (8.50) | 23.91 |
| 17 | Lawton Communications Group Limited | 31/12/2017 | 15.40 | (3.12) | 18.52 |
| 18 | Anomaly London LLP | 31/12/2016 | 15.04 | (9.54) | 24.58 |
| 19 | Leagas Delaney - London Limited | 31/12/2017 | 14.60 | 6.53 | 8.07 |
| 20 | The Red Brick Road Limited | 31/12/2017 | 13.36 | 10.35 | 3.01 |
| 21 | Spark44 Limited | 31/03/2018 | 13.25 | 10.38 | 2.87 |
| 22 | Young & Rubicam Group Limited | 31/12/2017 | 12.45 | 18.40 | (5.95) |
| 23 | Grey Advertising Limited | 31/12/2017 | 12.16 | 14.33 | (2.17) |
| 24 | Bray Leino Limited | 31/12/2017 | 11.93 | 11.55 | 0.38 |
| 25 | McCann WorldGroup UK | 31/12/2017 | 11.55 | 8.14 | 3.41 |
| 26 | FCB Inferno Limited | 31/12/2017 | 11.42 | 10.18 | 1.24 |
| 27 | The & Partners Group Limited | 31/12/2017 | 11.33 | 10.77 | 0.56 |
| 28 | Aylesworth Fleming Limited | 30/06/2017 | 11.13 | 6.93 | 4.20 |
| 29 | Leo Burnett Limited | 31/12/2017 | 10.95 | 16.19 | (5.24) |
| 30 | Mother London Limited | 31/12/2017 | 10.68 | 8.96 | 1.72 |
| 31 | TBWA UK Group Ltd | 31/12/2017 | 10.28 | 22.37 | (12.09) |
| 32 | Cello Signal Limited | 31/12/2017 | 10.04 | 8.66 | 1.38 |
| 33 | Home Marketing Limited | 31/12/2017 | 9.87 | 23.03 | (13.16) |
| 34 | Wednesday London Limited | 31/12/2017 | 9.41 | 43.33 | (33.92) |
| 35 | Engine Acquisition Limited | 31/12/2017 | 9.17 | 2.06 | 7.11 |
| 36 | Wieden & Kennedy UK Limited | 31/12/2017 | 8.51 | (0.28) | 8.79 |
| 37 | Ogilvy & Mather Group (Holdings) Limited | 31/12/2017 | 8.03 | 4.90 | 3.13 |
| 38 | Golley Slater Group Limited | 31/03/2018 | 7.87 | 6.37 | 1.50 |
| 39 | Big Dog Agency Limited | 31/12/2017 | 6.24 | 6.97 | (0.73) |
| 40 | Saatchi & Saatchi Group Ltd | 31/12/2017 | 6.08 | 6.55 | (0.47) |
| 41 | Cogent Elliott Limited | 31/12/2017 | 4.82 | (7.46) | 12.28 |
| 42 | Cheil Europe Limited | 31/12/2017 | 4.27 | (45.97) | 50.24 |
| 43 | BMB London LLP | 31/12/2017 | 3.11 | (29.24) | 32.35 |
| 44 | J. Walter Thompson Group Limited | 31/12/2017 | (1.25) | 5.94 | (7.19) |
| 45 | Oliver Marketing Limited | 31/12/2017 | (1.75) | (0.89) | (0.86) |
| 46 | Dentsu McGarryBowen UK Limited | 31/12/2016 | (2.50) | (14.34) | 11.84 |
| 47 | Havas Worldwide London Limited | 31/12/2017 | (6.71) | (27.85) | 21.14 |
| 48 | Mullenlowe London Limited | 31/12/2017 | (8.95) | (3.83) | (5.12) |
| 49 | M&C Saatchi (UK) Limited | 31/12/2017 | (17.51) | (13.51) | (4.00) |
| 50 | BBH Partners LLP | 31/12/2017 | n/a | n/a | n/a |
Fallon was the UK ad agency with the highest profit margin last year – a healthy 31.56%. VCCP followed close behind with 28.67% – growth of 5.3% from 2016.
TBWA saw one of the biggest drops, a 12% decrease year on year, while Cheil recorded the biggest increase of 50.24%.
Top 10 ad agencies by gross income per head
| Company name | Year end | Latest | Previous | Change | |
| £000s | £000s | % | |||
| 1 | Saatchi & Saatchi Group Ltd | 31/12/2017 | 172,487 | 143,378 | 20.30 |
| 2 | Leo Burnett Limited | 31/12/2017 | 163,821 | 149,438 | 9.62 |
| 3 | Mother London Limited | 31/12/2017 | 161,458 | 161,769 | (0.19) |
| 4 | Abbott Mead Vickers.BBDO Limited | 31/12/2017 | 160,837 | 149,795 | 7.37 |
| 5 | Wieden & Kennedy UK Limited | 31/12/2017 | 160,676 | 143,337 | 12.10 |
| 6 | Fallon London Limited | 31/12/2017 | 158,265 | 183,216 | (13.62) |
| 7 | M&C Saatchi (UK) Limited | 31/12/2017 | 157,814 | 118,462 | 33.22 |
| 8 | Leagas Delaney - London Limited | 31/12/2017 | 157,261 | 122,067 | 28.83 |
| 9 | Innocean Worldwide UK Limited | 31/12/2017 | 150,811 | 157,875 | (4.47) |
| 10 | Young & Rubicam Group Limited | 31/12/2017 | 146,599 | 148,451 | (1.25) |
Saatchi & Saatchi had the highest gross income per head at £172,487, a 20% increase on the previous year.
Meanwhile, Leo Burnett, Mother, Abbott Mead Vickers BBDO and Wieden & Kennedy all posted a figure that's higher than £160,000.
Kingston Smith advises that agencies should have a target of between £100,000 and £120,000 per head to be a healthy business.
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