Sir Martin Sorrell's S4 Capital PLC (LSE:SFOR, OTC:SCPPF, FRA:9S4) said trading in the opening months of 2026 has been in line with expectations despite increasingly challenging market conditions, as the digital advertising and marketing group reiterated its full-year guidance and revealed plans to introduce a new dividend policy.
In an AGM statement, executive chairman Sorrell said clients remained cautious amid geopolitical uncertainty, tariff negotiations and continued pressure on marketing spending, particularly among technology companies, which account for almost half of group revenue.
The company expects like-for-like net revenue for 2026 to be within the current analyst consensus range of £632-663 million, representing a low single-digit decline from the previous year.
S4 is targeting an improvement of at least 100 basis points in operational EBITDA margin, driven largely by the benefit of cost-cutting measures implemented during 2025.
Liquidity continued to improve, with average month-end net debt in the first five months of the year falling to £106 million from £144 million a year earlier, in line with the medium-term target to reduce net debt to £60-90 million.
New business was won from clients including Samsung, Visa and HelloFresh, while expanding relationships with existing customers such as Amazon, General Motors and T-Mobile.
Sorrell said: "Market conditions in the first five months of 2026 have remained challenging, if more so, with clients generally cautious given continued geopolitical and macroeconomic uncertainty."
The company also announced plans to introduce a 50% dividend payout policy over the medium term and appoint former GroupM chief executive Christian Juhl as a non-executive director.
