NEWS9 September 2020

Profit up at S4 Capital

Covid-19 Financials News UK

UK – Digital advertising group S4 Capital has increased gross profit by more than 12%, according to its half-year results.

martin sorrell

The company’s results for the six months ending 30 June 2020 show that S4 Capital made a gross profit of £124m – a 12.2% like-for-like increase on the same period in 2019.

S4 Capital also recorded a like-for-like gross profit growth of 18.8% in the first quarter of 2020 and a 6.5% like-for-like growth in quarter two, which it said was affected by Covid-19.

Like-for-like gross profit growth was at 3% in April during Covid-19 lockdown restrictions, but recovered to more than 11% in June.
The company said the results showed that S4 Capital was on track to deliver its targets for the full year.

The company has also increased its headcount to 2,644 people, compared with 1,375 at the same stage last year.

Earlier this year, S4 Capital outlined plans to raise gross proceeds of up to approximately £100m through a proposed fundraising.

Sir Martin Sorrell (pictured), executive chairman of S4 Capital, said: “These results confirm that S4 Capital is currently in a growth sweetspot and that its digital-only, faster, better, cheaper, unitary, ‘holy trinity’ model, which combines first-party data with digital content, data and digital media, is migrating from brand awareness and trial to conversion at scale.

“After less than two years as a listed company and with a market capitalisation of around $2.5bn, we are now in a position to build stronger value-adding relationships with tech, healthcare, financial and fast-moving consumer goods clients, among others.”