S4 Capital gains as annual debt falls, core profit margin improves

S4 Capital

24/03/2026 08:32

** Shares in S4 Capital SFOR.L up 17.4% at 24p

** British ad group reports annual net debt down 39.2% at 86.9 million pounds ($116.65 million), better than its expectations

** Operational EBITDA margin at 12.1%, up 50bps vs last year

** Co expects 2026 LFL net revenue in line with current analyst consensus, but slightly below 2025

** However, expects lower like-for-like net revenue in the first quarter of 2026 as clients cut back spending on Middle East war concerns

** "S4 is making progress on the levers within its control, with margins improving and debt reducing. However, cautious client spend remains a challenge, given Middle East tensions," Peel Hunt analysts say in a note

** Stock up ~15% so far this year

($1 = 0.7449 pounds)

 (Reporting by Prerna Bedi in Bengaluru)

 ((Prerna.Bedi@thomsonreuters.com ; +91 98052 24616))