S4 Capital reiterates full-year targets

Speaking at the annual general meeting, Sir Martin Sorrell, founder and executive chair, told investors that 2023 had been a "difficult year" with slower market growth and continuing macroeconomic uncertainty.

Client caution had continued into the current financial year, he said, with trading in the first four months continuing "to reflect the impact of volatile global macroeconomic conditions".

However, he maintained targets for the full year, adding that "financial performance will be significantly second-half weighted, reflecting both our normal seasonality and an expected improvement in market conditions".

Like-for-like net revenue is expected to be down year-on-year, with a "broadly similar overall level of operational earnings before interest, tax, depreciation and amortisation" as 2023. Operational EBITDA was £93.7m in 2023, down 36.6% on a like-for-like basis.

Net debt was forecast to fall to between £150m and £190m by the year end.

Sorrell continued: "We remain confident in our strategy, business model and talent. These, together with scaled client relationships, position us well for growth in the longer term.

"New business activity continues at healthy levels, particularly with the current focus on hyper-personalisation or personalisation at scale, accelerated by AI."

As at 1330 BST, shares in S4 Capital were down 4% at 49.68p.