Member Info for NigeCo

Volume 2.87m, daily average is 2.83m

At the Q1 results webcast Sir Martin was asked about M&A, he said that he knows that P/E has plenty of dry powder. I think that most of us are in agreement that S4 Capital is undervalued and we expect that the the share price will recover over the next few years if ad market conditions recover, S4 should be well placed. The question is will we get that chance, or will someone take S4 Capital out. The one good thing on our side is that SMS holds a golden share, he won't let S4 go cheaply. £3 per share at least, would be my stab in the dark. Jam today, or jam tomorrow.

A nice buy trade 279,773

Any links to rumours?

Morning 1msn, if you have Bloomberg, would you mind if possible posting a screenshot of S4 Capitals largest shareholders? Thanks in advance.

Agreed 1msn, some share price follow through next week would speak volumes.

Brokerages Jefferies and Liberum cut their price targets on SFOR; Peel Hunt analysts say S4's AI efforts "will be a major advantage as client spend improves"

https://www.xm.com/research/markets/allNews/reuters/uks-s4-capital-inches-higher-after-mixed-trading-update-53835372

One positive, S4 announces 6 new clients in Q1. Burger King, Panasonic, FanDuel, AliExpress, Decathlon, Santander and ICBC.

New business and AI

New business activity continues at significant levels, particularly with a focus on personalisation at scale. New business wins in the first quarter include Burger King, Panasonic, FanDuel, AliExpress, Decathlon, Santander and ICBC. In addition, the Company continues to capitalise on its strong AI positioning winning multiple exploratory assignments as clients experiment and explore applications and develop use cases. These are currently focussed on visualisation and copywriting, personalisation at scale and general client and agency efficiency. Developments around media planning and buying and democratisation of knowledge are starting to build.

Its nice to see shorters get their comeuppance.

Interesting S4 Capital Q1 results presentation....... One analysts asked the question regarding future M&A in the sector going forward. Sir Martin's replay said that lower interest rates would help and that he knows that private equity has plenty of dry powder. Watch this space.

On 22/3/2024 it was reported in the Wall Street Journal (link enclosed below) that S4 Capital had received several merger offers from Stagwell, one offer worth almost $700m 96p per share. It was also reported that new York private equity firm Mountain Capital held exploratory talks with S4 last year about a possible acquisition.

https://archive.is/xIgUA

52.41 paid

I agree regarding valuation, S4 are cheap. Management just need to get their pricing right and move S4 Capital in to making its first profit. At this point we should see a re rating with our weak share price.

1msn, what makes you so sure?

What's likely IMO is revenue will be down on Q1 2023, and Net Debt likely to have increasing after paying £11.4m in regards to final combination payments carried over from 2023.

Longfell..... "It's good to see you back 1msn. And your quality research.

It's easy to forget what a strong team there is behind sfor. Too much focus on the sp imo. Thanks again."

Well said, I concur .

Rock..... "Do you know what the market is expecting Nige?"

No I haven't seen any quarter forecasts. Just my guess @ £220M.

Morning Verney,

My opinion FWIW based on lower company revenue guidance for 2024, plus latest analysts forecasts who currently have FY revenue coming in at £909M down from actual £1.011.5Bln in 2023. My guess would be revenue to come in at Q1 2024 £220M.

Revenue 2023

Q1 £261.7M

Q2 £255.4M

Q3 £245.9M

Q4 £248.5M

I will ask the poster on ADVFN if he would post an update regarding S4 largest shareholders. Although, he's not commented for a while.

"Have they bought their buy back now?"

Morning Rock, yes the share buyback concluded in March after reaching the target of 6m shares 1% of the company. The plan is to start another buyback program sometime this financial year, along with a possible dividend. I personally don't want a dividend, I think that management should be buying back shares, anything below 100p.

Rock...."At least we know what was going on with those large trades"

You called it right mate last week regarding someone going short.

Connor, Clark & Lunn Investment Management Ltd 0.50%.

Rock, thanks mate. Was the 500k trade a seller or buyer?

"Someone in US building a short position"

Hi Rock, what evidence do you have regarding the above?