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S4 Capital PLC - London-based advertising and marketing agency - Says ‘tempo’ of 2021 has continued into 2022 and ‘comfortable’ with like-for-like 2022 gross profit, or net revenue, growth guidance of 25%.
In 2021, revenue nearly doubled to £686.6 million, but swung to a pretax loss of £55.7 million.
‘Despite forecasts for 2022 global GDP growth continuing to decline from a high of 5% to 6% to now under 3% and forecasts for 2022 digital advertising being reduced from 15% to 20% to 10% to 15%, client activity remains strong,’ Executive Chair Martin Sorrell says.
He adds: ‘We are confident that we will be able to deliver sector leading, high double digit like-for-like revenue and gross profit growth for 2022 and target a steady improvement in operational earnings before interest, taxes, depreciation and amortisation margin.’
He also notes the company is confident in hitting its three-year targets for 2022 to 2024 for a doubling of top line and operational Ebitda. Part of this is hitting its target of 20 'whopper' clients, which is revenue of over $20 million. Currently at eight.
Says cash flow remains ‘good’ and will look into issuing equity at a level of 425 pence or higher, which was its share price before the impact of the delay in its 2021 results.
Current stock price: 232.46 pence, down 5.8% on Thursday
12-month change: down 63%
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