Telegraph today19 Mar 2019 08:06
SIR MARTIN SORRELL said his new advertising venture S4 Capital was "firing on all cylinders" despite reporting a loss in its first set of results.
S4 is comprised of Dutch advertising company Media-Monks, bought last July, and California-based digital agency MightyHive, which helps larger companies buy online advertising, added in December.
In its first set of annual results, S4 posted a pre-tax loss of £9.1m for the year to December on revenues of £54.8m.
However, when results from MediaMonks and MightyHive for the full year were included, the company reported pre-tax profits of £7.6m, while revenues shot up 58pc to £135.9m.
Shares closed up 1.4pc at 863.6p yesterday.
Sir Martin, the former WPP chief, said there was "good progress on all fronts" despite still being "early days". "Integration is going well: wherever MediaMonks makes content inroads, they've brought Mighty-Hive with them on programmatic advice and vice versa," he said.
The advertising guru also confirmed that the company was still on the hunt for further acquisitions "where it made sense".
A number of "significant" contract wins from highprofile clients including Procter & Gamble, Nestle and Electronic Arts were already tied up, he added.
Analysts at Dowgate Capital said the company had made "great progress in building a new age, new era, new approach marketing services group. It has already established strong positions in digital content through MediaMonks and digital media planning and buying via MightyHive".
S4 now employs 1,200 people in 16 countries, with about two thirds of its revenue coming from the US. It is midway through a threeyear plan to double its revenue and gross profit.
The company went public last November after completing a reverse takeover deal with cash shell Derriston.
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