S4's Sorrell points to strong momentum

S4 Capital, the new venture set up by Sir Martin Sorrell, reported strong momentum in the final quarter of the year after wrapping up a new deal on Christmas Eve.

In a year-end trading update a week after making the move from London's AIM up to the main market, the company reported like-for-like revenues up over 51% in the 11 months to end-November, with gross profit up over 44%.

Including MediaMonks, the Amsterdam-based media agency that merged with S4 and reversed into AIM-listed Derriston Capital in September, operating earnings before interest, tax, depreciation and amortisation more than doubled.

Swelling the business further, a merger with MightyHive was completed on Christmas Eve alongside the step up to the LSE's full list.

"Momentum continues at MediaMonks and now at MightyHive, and we are already making progress in bringing MediaMonks and MightyHive together to provide a differentiated digital content, data and programmatic offer for clients and investors," Sorrell executive chairman. "We look forward to updating the market in early March 2019."

He said three-year plans and budgets for next year are already in preparation, indicating "continued strong organic growth", while there were also two digital content contract wins with two "major" global package goods companies just before Christmas, which will impact next year.

S4 will report annual results in early March.