Ex-WPP boss Martin Sorrell has hailed a “powerful” 2018 after his advertising and marketing firm S4 Capital PLC (LON:SFOR) posted a revenue and earnings jump in its final results.
In its maiden full year results for the year ended 31 December, the company reported, on a pro-forma basis, operational earnings (EBITDA) of £22.4mln, up 99% on the prior year, while revenues rose 58% to £135.9mln. Pro-forma billings, meanwhile, were at £291.2mln.
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The figures were based on the consolidated numbers of S4, Dutch company MediaMonks, and US ad firm MightyHive if the combined group had existed for the whole year.
S4 acquired MediaMonks in July 2018 for around €300mln, while MightyHive was purchased in December for an enterprise value of US$150mln.
Sorrell, who serves as S4's executive chairman, said that the company’s performance was planned to continue into 2019 with plans targeting “strong revenue, gross profit growth and [an] improving operational EBITDA margin”.
He added that for January the group had shown like-for-like revenue and gross profit growth of “over 30%”.
S4’s plan for the 2019-2021 period is aiming for double revenues and gross profits compared to the pro-forma 2018 figures.
"It is clear that the company's purely digital model based on first party data fuelling digital content and programmatic is resonating with clients. Our tag line "faster, better, cheaper" and unitary, one [profit and loss] structure also appeal strongly”, Sorrell said.
“The imperatives [going forward] will be to broaden and deepen relationships with existing and new clients; to broaden and deepen geographical coverage; and to attract additional data, content and media talent and resources through direct recruitment, acquisition and/or merger."
S4 was set up by Sorrell last year after he stepped down from the helm of FTSE 100 WPP in April amid allegations of personal misconduct, which he has denied.
Sorrell has already been causing trouble for his former employer since setting up S4, having beaten it in the race to acquire MediaMonks and nabbed the former Asia-Pacific (APAC) president of its media investment management arm, Michel de Rijk, to head up S4’s own operation in the region.
In early trading Monday, S4’s shares were up 1% at 124.7p.