S4 Capital posts one other disappointing yr of detrimental development

The wheels haven’t fairly come off Sir Martin Sorrell’s S4 Capital though the veteran advert tycoon has reported one other annual loss – £6m -rather higher than final yr’s £160m. Income was about £1bn, 5.4% down on the earlier yr. The corporate made round 1,000 job cuts.

Sorrell (above) says: “After our first 4 sturdy internet income development years, we had a tough 2023 reflecting difficult world macroeconomic situations, fears of recession and excessive rates of interest.” and, in fact, tech purchasers chopping again.

On a possible takeover (Stagwell made a suggestion final yr) Sorrell says he hasn’t obtained a “credible provide” and the corporate remains to be “accountable for our future.”

Shareholders don’t appear fairly so satisfied because the shares in London fell 6% this morning, valuing S4 at a modest £226m, barely greater than M&C Saatchi and manner behind the large advert holding teams that S4 as soon as regarded like difficult.

Maybe probably the most disappointing factor for Sorrell is that S4, which was presupposed to be extra sturdy than its rivals due to its single-minded give attention to digital, is that its fortunes really appear extra cyclical than the company teams which straddle legacy media and digital.

Shareholders might be hoping for a cyclical upswing quickly though S4 isn’t committing itself.