NEWS12 September 2019

S4 Capital reports strong six months

Financials M&A News People UK

UK – S4 Capital, the advertising and marketing services firm set up by Martin Sorrell, has reported strong growth for the first half of the year.

Sir Martin Sorrell

Based on estimates for if the company had existed in full for the first half of 2018, it said its revenue for the six months up to 30th June 2019 was £88m, up 42% year-on-year pro-forma, or 38% on a constant currency basis.

Gross billings to clients in the period, including pass-through costs, were £184m, while gross profit was £70m – up 44%.

The company has been on an acquisition spree in its first few months since it was formed following Sorrell’s departure from WPP. Most recently, it bought Amsterdam-based influencer marketing company IMA for €10m, merging it with its digital production agency MediaMonks.

Sorrell, executive chairman of S4 Capital, said the results confirm the “relevance” of the company’s “faster, better, cheaper, digital-only unitary advertising model”.

He added: “Now the task is to build significant scale organically, by broadening and deepening existing and new client relationships and adding resources through merger and acquisition.”