S4 Capital PLC

SFOR

Equity

ISIN GB00BFZZM640 / Valor 43741317

LSE London Stock Exchange, SETS (2024-12-23)

GBP 0.33-0.36%

S4 Capital PLC
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About company

S4 Capital PLC is a tech-led digital advertising, marketing, and technology services company founded by Sir Martin Sorrell in May 2018. The company merged with MediaMonks, a creative digital content production company, and MightyHive, a digital media solutions provider. With a focus on innovation and cutting-edge technology, S4 Capital PLC aims to provide future-thinking marketers and agencies with top-notch digital services.

Summarized from source with an LLMView SourceSector: Business Services

Net Revenue

S4 Capital PLC reported a net revenue of £873.2 million for Q4 2023, reflecting a -2.1% decline on a reported basis and a -4.5% decline on a like-for-like basis. This decrease was attributed to challenging macroeconomic conditions and cautious spending from clients.

Operational EBITDA

For Q4 2023, S4 Capital PLC achieved an operational EBITDA of £93.7 million, representing a 10.7% margin. This performance was in line with the company's revised expectations, despite a significant reduction in merger activity and lower seasonal uplift in the fourth quarter.

Adjusted Operating Profit

S4 Capital PLC's adjusted operating profit for Q4 2023 was £82.0 million, down from £114.1 million in the prior year. The decline was influenced by acquisition, restructuring, and other expenses, although these were significantly lower due to reduced merger activity.

Net Debt

At the end of 2023, S4 Capital PLC's net debt stood at £180.8 million, up from £110.2 million in December 2022. The increase was primarily due to M&A payments made during the year. The company maintained a leverage ratio of 1.9x, with a £100 million revolving credit facility remaining undrawn.

2024 Outlook

S4 Capital PLC has provided guidance for 2024, targeting net revenue to be down on the prior year and operational EBITDA to be at a broadly similar level to 2023. The company expects client caution to persist and wider market uncertainty, with a heavily H2 weighted performance anticipated.

Summarized from source with an LLMView Source

Key figures

-33.2%1Y

-94.5%3Y

-82.1%5Y

Performance

65.0%1Y

78.8%3Y

68.3%5Y

Volatility