Last checked at 
(Sharecast News) - S4 Capital reported a 70.1% improvement in revenue in its first quarter on Monday, to £206.8m, or ahead 40.6% on a like-for-like and proforma basis.
The London-listed advertising and communications group said its reported gross profit, or net revenue, was 64.6% firmer year-on-year at £171.1m, or 34.5% higher on a like-for-like and proforma basis.
Its board said the balance sheet remained "strong", with net debt of £48m at the end of the period, with further merger payments - chiefly TheoremOne - made after quarter end.
Despite the slowdown in forecasts for global GDP growth in 2022 and 2023, demand for digital advertising and marketing transformation was forecast to expand at 10% to 15% per annum, with digital increasing its share of total advertising spend from 61% to 68% by 2025 in the United States.
S4 Capital said it was continuing to target "sector leading" 25% like-for-like revenue and gross profit growth and steady improvement in operational EBITDA margin in 2022.
Two further "whoppers" were added in the quarter, the board said, making a total of eight against a target of 20.
The company said its performance was continuing in line with its three-year plan of doubling organically in the period from 2022 to 2024.
""e remain optimistic about our prospects for this year, particularly as consumer and corporate balance sheets remain strong, cushioned by the Covid stimulus," said executive chairman Sir Martin Sorrell.
"The chickens may well come home to roost in 2023, as interest rates rise further this year to counter the inflation surge.
"But, digital marketing expenditure remains robust, even in a recession, as, for example, our results in 2020 demonstrated, given its secular growth trend."
Sorrell added that the company's financial position and liquidity remained "robust".
"We maintained net debt balances of approximately £50m in the first quarter and have scope to increase our net debt-to-operational EBITDA ratios."
At 0935 BST, shares in S4 Capital were up 3.5% at 295.4p.
Reporting by Josh White at Sharecast.com.
