Sir Martin Sorrell’s S4 Capital registered significant growth in like-for-like and pro-forma billings, revenue, gross profit and EBITDA. The company’s gross billings reported a rise of 43.4 % and stood at £653.4 Million. The revenue stood at £342.7 million, up 59.3% reported from £215.1 million, like-for-like up 15.2%, pro-forma up 20.1%, reported company’s Unaudited 2020 preliminary results.
The Gross profit rose to £295.2 million, up 72.3% reported from £171.3 million, like-for-like up 19.4%, pro-forma up 23.7%. The Operational EBITDA stood at £62.2 million, up 86.1% reported, like-for-like up 18.3%, pro-forma up 30.6%.
S4 Capital registered an operating profit of £8.1million versus an operating loss of £3.8 million in 2019. Operating profit is after charging £49.9 million of Adjusting Items relating to acquisitions, amortisation and share-based payments (including £7.4 million in deferred, contingent combination payments tied to continued employment). Pro-forma operating profit of £16.9 million versus an operating loss of £1.2 million in 2019.
Profit before income tax stood at £3.1 million, after charging adjusting items, versus a loss of £9.2 million in 2019 and pro-forma profit before income tax of £12.1 million.
The statutory result for the period £3.9 million (loss) after charging adjusting items after taxation versus £10.0 million (loss) in 2019 and the pro-forma result for the period of £1.2 million (loss).
The operating activities of 99% versus 74% in 2019.
Sir Martin Sorrell, Executive Chairman of S4Capital plc said, “Our second full financial year was again outstandingly successful. Having established brand awareness and secured brand trial in the back end of 2018 and in 2019, we set about converting client relationships at scale and now have five “Whoppers” secure or insight, in line with our ultimate 20 squared objectives, that is, 20 clients each generating revenues of over $20 million per annum.
He added, “We continued to grow our top line and bottom line at industry leading rates, despite covid-19 and exhibited agility in developing new content revenue streams quickly, such as robotic production, animation and on-line events and driving data & digital marketing net revenues, particularly in the fourth quarter and into this year. We continued to broaden and deepen our Content and Data & digital media practices through organic growth and by the addition of a further four Content and six Data & digital media companies in 2020 and so far in early 2021.”
“We believe 2021 and 2022 will be solid years economically, as the world rebounds from the pandemic and spends and invests in the huge pandemic-driven fiscal and monetary stimulus. Digital marketing expenditure is closely correlated, but not dependent on GDP growth, just as traditional media spending used to be in the last century,” said Martin Sorrell.
The company also announced another acquisition. S4 Capital has entered into a conditional agreement to combine MediaMonks with Jam3, a design and experience agency based in Toronto, with offices in Los Angeles, Uruguay and Amsterdam, where MediaMonks is headquartered.