Martin Sorrell's S4 Capital is ahead of target to double revenue by 2021

Chris Pash
By Chris Pash | 29 July 2019
 
Martin Sorrell

Sir Martin Sorrell's S4 Capital has reported revenue and gross profit growing faster than the targeted rate needed to double over the three years to 2021. 

In a trading update, the company says like-for-like revenues and gross profit were up around 40%, slightly strontger than forecast at the AGM statement in May.

"The continued top-line revenue and gross profit momentum at twice the digital market's growth rate clearly demonstrates the contemporary relevance to clients, of the purely digital, 'faster, better, cheaper', unitary, first party data, content and programmatic model," says Sorrell, the executive chairman of S4 Capital. 

"We are investing in human capital and new geographies at a faster than anticipated rate, to take our 'holy trinity' model to the next level and this has flowed through to operational EBITDA margins in the first-half and we expect margin expansion in the second half of the year."

S4 Capital says margins are expected to improve from the first half of the year to the second half, reflecting a stronger second half at MightyHive in programmatic and an easier second half at MediaMonks in content.

Operating cash flow remains strong with net debt halved from the level incurred to part fund the MediaMonks merger.  

Global digital content assignments at Procter & Gamble's Braun and Nestle's Starbucks have been followed by the award of a major package goods brand in South East Asia and programmatic consultancy assignments at Bayer, Electrolux, Mondelez, Sephora and Renault. 

The company will report results for the six months to June on 11 September. 

In 2018, revenue was GBP 135.9 million, up 58%, and gross profit GBP105.2, up 49%.

S4 Capital in June expanded its global content arm MediaMonks' capabilities and coverage with the acquisition of Melbourne-based marketing transformation and customer experience company BizTech.

Sorrell launched S4 Capital early last year after three decades years as CEO at WPP, the world's biggesr advertising company. 

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