REG - S4 Capital PLC - Fourth Quarter Trading Update

S4 CapitalAnnouncement

22/01/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240122:nRSV3739Aa&default-theme=true

RNS Number : 3739A  S4 Capital PLC  22 January 2024

22 January 2024

S4 Capital plc

("S(4)Capital" or "the Company" or "the Group")

Fourth Quarter Trading Update

In line with revised November expectations

S(4)Capital plc (SFOR.L), the tech-led, new age/new era digital advertising,
marketing and technology services company, today confirms that trading in the
fourth quarter of 2023 was in line with expectations as outlined on 23
November 2023. As a result, the Company anticipates a like-for-like net
revenue decline of around 4% and an Operational EBITDA margin in the range of
10-11% for the full year 2023. The Company improved Operational EBITDA margin
performance in the second half of the year as a result of significant cost
reductions. Net debt is expected to be towards the lower end of the guided
range of £180-220 million, with circa £10 million of merger payments delayed
to 2024. The annual results for 2023 will be announced on 27 March 2024.

Sir Martin Sorrell, S(4)Capital Executive Chairman, said

"After four years of very strong growth, 2023 was a difficult year impacted by
volatile macro conditions and, consequently, cautious spending from clients,
particularly those in the technology sector and from smaller project-based
assignments. Our client relationships remain strong and we have also managed
costs tightly."

"While it is early in the year, we are not expecting 2024 to show
macro-economic improvement, and client caution on marketing spend will likely
persist, although not at last year's level given interest rates are likely to
fall over time. Initial indications are for an improvement in performance in
the Content practice, reflecting cost reductions, broadly similar performance
in Data&Digital Media to last year and a more challenging outlook for
Technology Services. In these unpredictable times, we are focused on
positioning the Company for medium term growth, improving profitability and
returning funds to shareowners."

Enquiries:

 S(4)Capital                              Tel: +44 (0)20 3793 0003
 Sir Martin Sorrell (Executive Chairman)
 Powerscourt (PR Adviser to S(4)Capital)  Tel: +44 (0) 7970 246 725
 Elly Williamson
 Pete Lambie

 

About S(4)Capital

S(4)Capital plc (SFOR.L) is the tech-led, new age/new era digital advertising,
marketing and technology services company, established by Sir Martin Sorrell
in May 2018.

Our strategy is to build a purely digital advertising and marketing services
business for global, multinational, regional, and local clients, and
millennial-driven influencer brands. This will be achieved by integrating
leading businesses in three practices: Content, Data&Digital Media and
Technology Services, along with an emphasis on 'faster, better, cheaper,
more' execution in an always-on consumer-led environment, with a unitary
structure.

Victor Knaap, Wesley ter Haar, Christopher S. Martin, Scott Spirit and Mary
Basterfield all joined the S(4)Capital Board as Executive Directors. The
S(4)Capital Board also includes Rupert Faure Walker, Paul Roy, Daniel Pinto,
Sue Prevezer, Elizabeth Buchanan, Naoko Okumoto, Margaret Ma Connolly, Miles
Young and Colin Day.

The Company now has approximately 7,700 people in 32 countries with
approximately 80% of net revenue across the Americas, 15% across Europe,
the Middle East and Africa and 5% across Asia-Pacific. The longer-term
objective is a geographic split of 60%:20%:20%. Content currently accounts
for approximately 60% of net revenue, Data&Digital Media 25% and
Technology Services 15%. The long-term objective for the practices is a
split of 50%:25%:25%.

 

Sir Martin was CEO of WPP for 33 years, building it from a £1 million 'shell'
company in 1985 into the world's largest advertising and marketing services
company, with a market capitalisation of over £16 billion on the day he left.
Prior to that Sir Martin was Group Financial Director of Saatchi & Saatchi
Company Plc for nine years.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFFFVLLRILFIS