Shares in Sir Martin Sorrell's S4 Capital PLC (LSE:SFOR, OTC:SCPPF) jumped 8% on Monday morning after the digital advertising and marketing agency reported audited results for 2024 in line with expectations.
The shares have sunk to a series of all-time lows in the past year, as results and updates have disappointed amid a dreary ad market.
Today, the company reported a 13.6% fall in net revenue and 6.3% decline in EBITDA, down 11% and 0.6% on a like-for-like basis.
Net debt was cut to £142.9 million at the end of December from £180.8 million a year earlier, better than the targeted range, with Sorrell said reflected a focus on cashflow.
Statutory losses mushroomed to £306.9 million from £14.3 million, largely due to a non-cash impairment charge of £280 million.
Still, the board announced its first-ever final dividend, of 1p per share, "signaling confidence in cash flow".
Sorrell predicted that clients are likely to remain cautious in 2025 as the macroeconomic environment remains "challenging" and geopolitics looms like a dark cloud.
That said, he expects to benefit from new business, especially in the second half, with full-year net revenue and operational EBITDA to be "broadly similar to 2024, with a further reduction in net debt".
Analysts at Peel Hunt said the net revenue was in-line with its forecast, while EBITDA and net debt were better than expected.