Sir Martin Sorrell’s digital advertising venture S4Capital posted its first full year results, showing strong revenue growth at GBP215.1 million, nearly four times the GBP54.9 million recorded in 2018.
On a like-for-like basis, revenue was 41% higher. Billings were GBP455.8 million. The pretax loss for 2019 was GBP9.2 million, broadly flat year-on-year.
S4Capital now has about 2,500 staff across 30 countries, almost double a year ago.
The company says it had a good start to 2020 with January gross profit up over 30%. The pipeline for new business is running stronger than last year.
Significant new business assignments include Google, SoFi, Amazon, Netflix, Facebook, P&G, Nestlé, Coca Cola, AB Inbev, Vodafone, Merck, Shiseido, Akzo Nobel and Ace Hardware.
So far, no reported material impact from the coronavirus. Chinese operations closed most of February but have now re-opened.
There have been some limited ripple effects in Europe and the US from the virus and some offices have recently been working from home as a precaution.
"Our first full financial year was outstandingly successful,” says Sorrell, the former CEO of WPP, the world’s biggest advertising company which he founded 30 years ago
“We grew our top line and bottom line at industry leading rates.
“We broadened and deepened our content and data and programmatic practices through organic growth and the addition of six content and three digital media and data companies.
“We integrated our client offering around our content and data and programmatic practices. We broadened and deepened our client roster.
“We achieved $ and £ Unicorn status in terms of stock market value. We have achieved brand awareness and brand trial.
“We now have to demonstrate that we can achieve significant client conversion at scale, both with existing and new clients.”
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