Sir Martin Sorrell’s advertising and marketing company S4 Capital has reported booming business amid what it described as a “post-pandemic rebound” in the global economy as it prepares for expansion.
S4 said comparable gross earnings and income were at levels “beyond expectations,” in a statement to the stock market on Monday.
He added that “activity has continued at unprecedented levels in May and June, driven both by the post-pandemic rebound in global GDP and by the acceleration of the digital marketing transformation.”
Much of the world is still affected by the coronavirus pandemic, but advertising spending is increasing in some places. Restrictions are easing in some markets, including the UK, which lifted all social distancing regulations on Monday, despite the growing presence of the Delta variant which is proving infectious even to many people who have been vaccinated.
Sorrell created S4 in 2018 after allegations of personal misconduct prompted his resignation from WPP, the FTSE 100 marketing conglomerate that he built from the shell of a manufacturer of wire and plastic products. Sorrell has denied wrongdoing.
Since then, Sorrell has made a rapid series of acquisitions to turn his former company into a digital-focused rival. The strategy has benefited from the move away from print advertising during the pandemic. In May, S4 raised its revenue targets and Sorrell said he was “extremely optimistic” about the economic recovery.
On Monday, S4 said it had obtained new loans and debt facilities to refinance existing loans, as well as to pursue new acquisitions. The company has agreed to a seven-year € 375 million (£ 321 million) loan with Credit Suisse, HSBC and Barclays, in addition to a five-year revolving line of credit that could allow the company to borrow up to 100 million. sterling to Credit Suisse, HSBC, Barclays. , JP Morgan and BNP Paribas.
The money will refinance existing loan facilities worth £ 109 million and give him another £ 200 million that he intends to use in part to finance new acquisitions. S4 said it was looking to expand its activity in technology services, as well as add content, data and digital media businesses in the Americas and Asia-Pacific.