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S4 Capital PLC - London-based advertising and marketing agency - Says "tempo" of 2021 has continued into 2022 and "comfortable" with like-for-like 2022 gross profit, or net revenue, growth guidance of 25%.
In 2021, revenue nearly doubled to GBP686.6 million, but swung to a pretax loss of GBP55.7 million.
"Despite forecasts for 2022 global GDP growth continuing to decline from a high of 5% to 6% to now under 3% and forecasts for 2022 digital advertising being reduced from 15% to 20% to 10% to 15%, client activity remains strong," Executive Chair Martin Sorrell says.
He adds: "We are confident that we will be able to deliver sector leading, high double digit like-for-like revenue and gross profit growth for 2022 and target a steady improvement in operational earnings before interest, taxes, depreciation and amortisation margin."
He also notes the company is confident in hitting its three-year targets for 2022 to 2024 for a doubling of top line and operational Ebitda. Part of this is hitting its target of 20 'whopper' clients, which is revenue of over USD20 million. Currently at eight.
Says cash flow remains "good" and will look into issuing equity at a level of 425 pence or higher, which was its share price before the impact of the delay in its 2021 results.
Current stock price: 232.46 pence, down 5.8% on Thursday
12-month change: down 63%
By Paul McGowan; paulmcgowan@alliancenews.com
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