Member Info for GoCPI

@NigeCo - these are traders galore angling for a lower price to trade their way up - you get them all on here.

Geez, all someone had to do was to 'read' the Annual Report and note what the expected number of outstanding shares will be for 2025 versus 2024. and this RNS won't either be a shocker OR indecipherable!

"Am just a bit deflated by today. Was really looking forward to hearing something new; it was all business as usual."

I'm surprised that we'd go in with an expectation with a new piece of news would come out from these Yellowstone meetings. THey never do, given that this call is only but a regurgitation of the HY release. It has been like this for the past few years that I've sat in on those calls. If you ask the right questions, you may get a nuanced answer that could provide that extra bit of detail, but expecting this call to bring out new updates on client wins is naught but fantasy/wishful thinking.

Give the man (AH) a break and try not to second-guess his mindset given how 'jaded' he looked on the call - the December update followed by the March FY release will be the real Litmus tests of where the SP could go. The direction of travel for FCF generation will be pretty clear by then!! and that's all that ultimately matters for the SP.

Its fun to watch Pointless2000 squirm, and pontificate for good measure. Top of the morning to you, laddie. Bankruptcy in 6 months? No surprise that when you're short at these levels - you know a tidal wave is approaching and taking that short with you.

Yes, this does explain the large drawdown even after decent results were posted. We'll just need another buyside firm to step in and start adding at these woefully low levels!!

Ongoing since the MSQ news/speculation broke on Friday. Another 6m+ shares traded today and 7m and 4.7m on the 1st 2 days of the week.

This shallow market isn't yet appreciating what the value gold mine that S4 is (ramp 2 of the day from me), but a few in the know are buying as many as they can. I nibbled on a few today, and will nibble more in the coming days should we hang around these levels.

Good luck longs!!

Keep squirming, POintless 2000. You'll have your short backside handed to you very quickly!!! ROFL

"Quality post Go, but you may have to change your handle soon .."

Lol - I may have to yet, as S4 is now my largest position by a country mile!

I've now had a formal confirmation from IR that we were not the incumbent in the Media Planning business for BMW and so it's not a loss of account for us. We're still working with them as usual for DIgital Production and Social Creative services.

Time to buy hand over fist at these silly valuation levels!!! There you go, that was a ramping post from me! ANd I nibbled more today.

GLA Longs!!

"Is anyone on this forum buying down here at this low price?"

@Srbenjo - I still am adding in small chunks. I suppose I'm 'dangerously exposed' to S4, but it's a decision I made based on valuation and the quality of management, and a potential easing of macro headwinds in the US. I made my initial purchase here in the 50s a couple of years ago and my average is now in the circa mid 30s. I'm still down a big chunk though. And that old market adage that the market can stay irrational for longer than you're solvent rings in my head occasionally, however I'm not in the I'll go bankrupt if S4 goes bankrupt category, not yet anyway ;-). The risk is pretty low from where I'm sitting, but this isn't a ramping investment advice. Only bet on what you can afford to lose. :-)

Good luck and I truly believe we'll (longs) come good here.

@Shorty - now that AimLess is back in, you'll see that she even has L3 access if not L4. :-)

Will start adding to my trading position starting tomorrow or so - it's pretty oversold in the near term.

"Longfell - exactly - McCartney is touring the US aged 83 for goodness sake ...the oldest man to climb to the summit of Everest was 80 years old ...all a bit of ageist nonsense"

Amen, Longfell and PC. The Ageist BS riles me to no extent. I suppose it's easy for suffering longs who have higher average prices to point fingers at Martin, but the current valuation (at 1.5X EBITDA OR 30+% FCF yield with no distressed debt scenario) is uniquely an LSE related issue - no matter what the Brexit defenders spout.

"The market for me isn’t pricing in any company valuation ..it is merely hedging whether it thinks the revenue pie will get easier/harder, bigger/smaller"

That's because it's shallow as F*uck. Would this kind of valuation ever come about if we were listed on a broader/deeper market like say the NYSE? A couple of numpties can come on boards like these and actually influence/move the stock price lower - most things being equal. That's the sign of a market that we shouldn't be listed on, but that's a story for another day as that isn;t changing.

"The term used in the RNS is a possible "combination" .. which is much more on the lines of a merger .... so it isnt apparent that SFOR would be bought .... it sounds like they may merely work on the % ownership of the combined new entity ...and then . decide how much cash each would contribute to the new entity...

As I have suggested ..at this stage it appears more that there is something both could offer that together would create a stronger unit and be beneficial to both of them"

The above is broadly right in my opinion too, although I cant see how S4 will need to OR can bring any additional cash to the table post any contemplated merger - that's not going to happen via an equity raise at the current rubbish valuation. MSQ's net debt debt levels are broadly similar to our (circa £130m) versus us at just under £150m, and dropping - Neither are distressed from a debt repayment viewpoint. MS is looking for a way to boost the current stock market valuation and this is a possible way forward.

The combined entity will have a broader swathe of clients with better sector diversification and risk profile should this pan out.

"Hi GOCPI. Just wondering what your take on the latest rns. How do you think a valuation can be met in these distressed times?"

Hello Longfell - you've also confirmed that the valuation price for MSQ was £170m and their EBITDA then was circa £20m. Their EBITDA% is/was pretty similar to S4s.

The ownership structure for MSQ is 59.6% OEP, 15.6% LDC (PE firm which majority owned MSQ prior to OEP buying 60%) and MSQ management owning 24.8%. This is per their latest end-Feb 2024 annual reports. Post acquisition date (June 2023) revenues to end Feb were £181m, but the annual numbers since March 2023 were £240m. Taking just the £181m revenues, US contributed £44m, which would've doubled since October 2024 acquisition of a NY creative company. THey're now a circa £275m to £300m revenue company, I'd suggest, well under half our net revenue numbers at circa £750m.

OEP paid decent money for that 60% MSQ deal at that £170m valuation 2 years ago - a circa 8.5x EBITDA multiple if that £20m EBITDA number is correct. A quick glance at the latest EBITDA number from the recent report shows a similar EBITDA % to revenues - about 11 to 12%.

S4's stockmarket valuation is insanely low, simply put. We're at a circa 1.5x valuation on that typical Acquisition related metric. To get on an equal footing should a merger need to happen with MSQ, then S4 valuation on a relative basis with MSQ should ramp up dramatically from what the insanely silly UK stock market is currently valuing us at. That could be 3x or 4x from these levels to even get close to a level-playing field.

I'll try to take a closer look at their numbers and see what more I can find.

Poinless 2000 is one of those who should be completely ignored. You get these types on every board - they're there to rile people up to get to their desired outcome. In that laddie's case it's a lower price to close his short.

Best left ignored completely and they'll eventually go away when it dawns on them that their 'strategy' of haranguing people to death with sell calls at the bottom doesn't always work.

"Martin is acquiring MSQ mean the company will struggle financially in the future as they need to fund it somehow means more dilution!"

We know you're pointless, but you don't have to go out of your way to show you're king of Clueless. We know it.. PMSL.

Keep.Squirming. It may help get over your short pain!! PMSL..

Starbucks, Dairy Queen, JPM Chase - that's an impressive client list in the US. What valuation level could S4 close this acquisition at? Circa 80p levels would be very welcome and from what I saw from the 2022 accounts, EBITDA margin was similar to our current levels - circa 12%. I'll see what I can find from the latest records.

https://www.moreaboutadvertising.com/2024/10/msq-makes-biggest-move-into-us-with-spcshp-agency/

Keep squirming you two Lads (pointless and Glowless). Pain incoming tomorrow!!!

Geez - now Meekie is a no small PI, but is a gaslighting corporate strategist who knows it all that chasing higher margins is costing CPI new sales wins. Gaslighting at its absolute best.

I still don't see why some on here can't see him for the gaslighter that he is and all he wants to do is rile up the board into pointless debates about a failing CPI. Good luck to you chaps - you need it. :-)

"Opening price will be 24p then back below 20p on confirmation"

pointless2000's missed out on buying at 21p and is now squirming!!! Comedy gold.

@RWD - a few links for you to read through that talk through Monks' role in BMW's Euopean marketing content/creative push.

https://www.cityam.com/s4-capital-revenue-rises-after-bumper-bmw-account-win/

https://www.campaignlive.co.uk/article/bmw-mini-consolidate-pan-euro-account-team-led-mediamonks/1694069

https://www.moreaboutadvertising.com/2021/01/s4capital-boosts-bmw-armoury-with-staud-studios/