Sorrell’s S4 reports significant financials gains in 2020
Sir Martin Sorrell’s S4Capital has reported its financial results for 2020, with significant increases across the board.
Billings are up 43.4% to £653.4 million, revenue is up 59.3% to £342.7 million (like-for-like up 15.2%, pro-forma up 20.1%) and gross profit is up 72.3% to £295.2 million (like-for-like up 19.4%, pro-forma up 23.7%).
Sir Martin Sorrell
The business reported an operating profit £8.1million versus an operating loss of £3.8 million in 2019. This factored in £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).
Executive chairman Sorrell commented: “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 5 ‘Whoppers’ secure or in sight, in line with our ultimate 20 squared objective, that is 20 clients each generating revenues of over $20 million per annum.”
Supplied by S4 Capital
S4 Capital now boasts more than 4,400 people in 31 countries, and announced yesterday further expansion through a merger with Jam3, a Toronto-based design and experience agency, with S4 Capital’s MediaMonks. Through the merger, its agency MediaMonks will strengthen its creative capabilities and expand its presence in Los Angeles, The Netherlands, Canada and Latin America.
Sorrel added: “We achieved double US dollar and British pound unicorn status in terms of stock market value, in only our second full year… 2021 has started strongly, well in line with our latest three year plan to double organically in three years and we are focused on three objectives for the year – to bed down our two new ‘Whoppers’ and develop and identify five more; to roll-out our unitary branding; and to continue to broaden and deepen our digital client offering by combination.”
In addition to new client BMW/MINI and the significant broadening of its relationship with Mondēlez, the group recorded major new remits from clients such as Amazon, Facebook, Google, Netflix, Procter & Gamble and T-Mobile.
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Olivia Kruimel is the managing editor at Mumbrella. She has more than 15 years of experience in journalism, communications and marketing. Her journalism career began at Fairfax Media (now part of Nine) and includes various B2B publications such as B&T, Travel Today and ALB. As a marketer Olivia has worked for Standard Chartered and various global law firms.
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