StockMarketWire.com - Advertising company S4 Capital swung to a modest first-half profit after acquisitions helped it build its client base and boost revenue.

Pre-tax profit for the six months through June amounted to $0.12m, compared to a loss of $8.5m on-year. Revenue jumped 60% to £141.3m and rose by 6.9% on a like-for-like basis.

Gross profit rose 12% on a like-for-like basis and 13% on a pro-forma basis.

The company founded by former WPP chief Martin Sorrell said the second half had started strongly, though below pre-Covid-19 budgets.

July like-for-like gross profit was up 18% and pro-forma was up 15%,

'Given the progress in the first half of 2020 and July, the company believes it has an even stronger fighting chance of doubling organically over the three years 2020-22 and delivering like-for-like double digit revenue and gross profit growth and reasonably strong margins in 2020,' S4 said.

The company said its prospects for 2021 also looked stronger given its organic growth rate, increasing client conversion, significant merger activity and the likely post-covid-19 economic recovery.

Sorrell said the results showed S4 was 'currently in a growth sweetspot'.

'After less than two years as a listed company and with a market capitalisation of around $2.5bn, which is well in to the top 200 FTSE companies, we are now in a position to build stronger value-adding relationships with tech, healthcare, financial and FMCG clients amongst others.'




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