REG - S4 Capital PLC - Trading Update

S4 CapitalAnnouncement

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RNS Number : 6303I  S4 Capital PLC  24 November 2025

24 November 2025 THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE
PURPOSES OF ARTICLE 7 OF THE UK VERSION OF REGULATION (EU) NO. 596/2014 ON
MARKET ABUSE ("UK MAR"), AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018

 

 

 

S4 Capital plc

("S4 Capital" or the "Company")

 

Trading Update

 

Following the release of our third quarter trading update in early November,
we have received and reviewed both the Company's financial results for October
and the third quarter revised forecast for 2025, which show a decrease in net
revenue versus the forecast and therefore impacts our fourth quarter
performance.

 

2025 like-for-like net revenue is now expected to be down by just under 10%.
Despite the cost actions we have already taken this year, this decline in net
revenue will impact our operational EBITDA, which we are now targeting to be
approximately £75 million, below the current market consensus of £81.6
million. This is mainly as a result of lower project-based revenue, continued
client caution and a slower ramp up of our new business wins than expected.

 

Despite this, our liquidity continues to improve more than anticipated and our
targeted range for the year end net debt remains £100 million to £140
million.

 

 

Enquiries:

 

S4 Capital Tel: +44 (0)20 3793 0003

Sir Martin Sorrell (Executive Chairman)

 

About S4 Capital

 

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 two synchronised Practices: Marketing Services and
Technology services, along with an emphasis on 'faster, better, cheaper, more'
execution in an always-on consumer-led environment, with a unitary structure.
The Company now has approximately 6,500 people in 33 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%. Marketing Services accounted for
approximately 90% of net revenue, and Technology Services 10%. The longer term
objective is a practice split of 75%: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.

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