Sir Martin Sorrell cheers on his comeback to booming S4 Capital: Advertising mogul hails ‘post-pandemic rebound’
Sir Martin Sorrell has praised the booming business in his company as a ‘post-pandemic rebound’ is boosting the economy.
S4 Capital, the 76-year-old’s advertising mogul, said in a trading update that sales and profits exceeded expectations this summer.
The advertising and marketing services company said this was due to growing momentum in the global economy and the switch to digital marketing by many companies, a trend accelerated by the Covid-19 crisis.
On the rise: Sir Martin Sorrell’s outfit S4 Capital said in a trading update that sales and profits had exceeded expectations this summer
Many western countries, including the UK, are easing pandemic restrictions as vaccine rollouts reduce hospitalizations and deaths.
S4 also unveiled new loans that will be used to refinance its debt and make new acquisitions.
The company said activity was “at unprecedented levels” in May and June, driven both by the post-pandemic rebound in global output and the acceleration in digital marketing.
S4 plans to expand into other technology areas and offer more services in the Americas and Asia-Pacific.
Sorrell founded S4 just months after leaving WPP – the company he turned into the world’s largest advertising agency – in 2018.
The tycoon wants to double the size of the company in the next three years. That goal is aided by the growing shift to digital advertising models that S4 specializes in.
And Sorrell believes the pandemic has accelerated that process, after companies shifted more ads online to target those stuck at home in lockdown. According to S4, 66 percent of global advertising spend will be digital by 2024.
In yesterday’s update, S4 said it had agreed a £321 million loan with Credit Suisse, HSBC and Barclays, as well as a five-year facility of up to £100 million from Credit Suisse, HSBC, Barclays, JP Morgan and BNP Paribas.
The money will refinance existing debt worth £109 million.