Member Info for NigeCo

Good post WBG, IMHO, FWIW, SMS would only consider selling S4 Capital if his health problems worsened drastically. He may then wish to negotiate the best price possible for the sake of his family. On the other hand, if his health permits I can see him still running S4 in 10 years from now, at which point he will have more than likely achieved his objective.

Just noticed 2 large trades reported after the close, both reported as buys. Shame that it will unlikely make no difference to the share price tomorrow.

754,542

170,928

Pearls..... "Does anyone know when SMS's golden share comes to an end? Unless that has a limited time to it, any predator would be put off from buying the company, even at these distressed levels."

Hi Pearls, I've not read anything regarding a time limit on SMS's golden share. Have you known there be time limits previously with other golden share holders?

Agree WBG, after watching the results presentation I thought that all directors were very relaxed and gave the impression that they were very confident. It's a shame that this isn't reflected in the company's share price. Not sure what more management can do, share price currently down 1.5% on decent results. There just seems no let up with the declining share price. I was considering adding to my holding, but I will hold off for now, I can see this testing last years lows before we start to see a recovery.

Market sentiment should change at some point no doubt, most probably towards the end of this year. Even though inflation has been declining at a fast pace this year in the US.

WouldBGatsby...... "I prefer to regard the present state of play as consolidatory"

Summed up well WBG, with Q1 results expected to be S4's weakest quarter now out of the way, I'm optimistic for the remainder of this year. Management have clearly addressed costs that were a problem in H1 of 2022, now under control with head count dropping 2%.

After watching the results presentation, it would be fair to say that AI will play a big part going forward and I can't help but wonder how many jobs will be replaced by AI. Executive director Wesley ter Haar seems very bullish in regards to AI, saying that it's going to be massive and that no one is better placed to take advantage of this than S4 Capital in digital advertising.

I think that the 5 million shares buy back planned for the second half is a very good move by management. It shows that they are thinking of shareholders who now won't be diluted. A thumbs up from me. Results are as good as I hoped for.

Next year another positive.............. "net debt in 2024 is expected to decrease substantially given our current capital allocation strategy."

Share buybacks

In order to reduce the impact of any share issue dilution caused by the issue of share options to our people, the Company intends to buy back approximately 5 million shares or approximately 1% of the issued share capital over the course of the second half of the year.

"Share buyback planned in second half to offset share options issued to our people in 2023"

First Quarter Trading Update

Solid start; guidance re-iterated

Reported revenue and net revenue up 26.5% and 28.1% to GBP262 million and GBP219 million

Like-for-like (3) revenue and net revenue (2) growth of 6.1% and 6.8% primarily driven by Technology services

Continued client conversion at scale through land&expand with leading clients

Strong balance sheet with net debt (6) of GBP136 million (1x Operational EBITDA (4,5) ) at 31 March 2023

Share buyback planned in second half to offset share options issued to our people in 2023

Full year outlook of 8-12% (9) net revenue growth and target (7) of 15-16% Operational EBITDA/net revenue margin maintained

"I'd prefer a dual listing :)"

But until they make some profits and wash though the the acquisition-related expenses it won't happen.

All M&A will be paid for in this financial year and most in the first half with 2024 expected to be the first year of a profit. So maybe the best time would be in 2024. Time will tell, but SMS won't be happy with S4's share price, considering when the share price was @450p he made comments that the market undervalued S4 and was considering a USA listing for a higher valuation.

Investegy....."Best hope for me is that one of the big boys sees this as an attractive acquisition and makes an offer.

With Sir Martin Sorrell holding a golden ticket at S4, he would have the final say regarding a potential takeover offer. I don't see him being interested in selling out unless his recent health issues dictate his decision.

Notice of Q1 Trading Update S4Capital plc (SFOR.L), the tech-led, new age/new era digital advertising and marketing services company, will announce its Q1 trading update on 11 May.

In line with previous reporting, a webcast and conference call will be held at 09:00 BST in London, followed by another webcast and call at 08:00 EDT / 13:00 BST.

09:00 BST webcast (watch only) and conference call (for Q&A):

Webcast: https://brrmedia.news/SFOR_Q123

S4 Capital should be doing the same as Pluss500 IMO. A dual listing on the USA Nasdaq.

Plus500 eyes US listing just as City plans shake-up of float rules

The FTSE 250 company Plus500 is eyeing a potential dual listing in New York in a fresh blow to the City, just days after plans were unveiled for a shake-up of listing rules in London.

https://www.thetimes.co.uk/article/plus500-eyes-us-listing-just-as-city-plans-shake-up-of-float-rules-86w5qvf3b

"Who got Will's posts deleted come on own up ?"

I missed his comment, on what grounds could it have warranted deleting?

Insiders might want to re-evaluate their UK£475k stock purchase as S4 Capital plc (LON:SFOR) drops to UK£798m

https://simplywall.st/stocks/gb/media/lse-sfor/s4-capital-shares/news/insiders-might-want-to-re-evaluate-their-uk475k-stock-purcha

Poised to benefit from the digital revolution

The other growth stock I want to highlight today is S4 Capital (LSE: SFOR). It’s a digital advertising firm that was set up by ex-WPP chief Sir Martin Sorrell.

S4’s recent full-year 2022 results showed that the company continues to grow at an impressive rate. For the year, it posted like-for-like net revenue growth of approximately 26%.

And looking ahead, management expects to see further growth. For 2023, it has provided guidance of like-for-like net revenue growth of 8-12%.

The valuation here doesn’t reflect this growth rate, however.

Currently, the company’s forward-looking P/E ratio is just 11.5 – well below the UK market average.

Now, it could be the company’s exposure to the advertising industry (which is cyclical) that is scaring investors off here. Or, it could be the fact that the company’s debt levels are rising. And these are valid risks.

However, all things considered, I think the stock deserves a higher valuation.

So, I expect it to perform well in the next bull market.

https://uk.finance.yahoo.com/news/2-uk-growth-stocks-could-084558418.html

Oops. I agree with Redwineday,

It will be in their best interests to perform to the best of their abilities. I take your point though, they will be disappointed, as we all are.

I agree with Cardinal3, shareholders should look to the expected profits in 2024 and beyond. I won't be selling, just adding. When the economy changes, S4 should outperform and the share price should recover. There are no guarantee's of course. JMO.

Thanks Auson, I was expecting a higher figure to be honest, going by the continued share price sell off. Not sure where the bottom will be, any thoughts?

Alpha male Tom from Bournemouth town,
Had a habit of putting others down.
He tells porkie pies left, right and center,
And his targets were those he did not enter.
One day he met a woman named McCall,
The ITV CEO he told her to crawl.
She was a threat to his fragile ego and stock,
Tom thought he knew better and it was a crock.
Yet, despite his bravado and bluster,
Tom's trading skills were a cluster.
He never made a profit, much to his chagrin,
His portfolio was in the bin.
So now Tom remains bitter and sore,
His ego and investments hit the floor.
He shakes his head and grumbles with glee,
"That'll teach her not to mess with me!",
He continues to lie and spread hate,
But really it's his own incompetence that seals his fate.