Business
Fourth Quarter Trading Update
S4 Capital PLC announced that its 2025 full-year trading results are ahead of revised guidance and current consensus, with like-for-like net revenue down approximately 8.5% and operational EBITDA margin around 12%. The company has significantly improved liquidity and reduced net debt to below £100 million, with a net debt to operational EBITDA ratio expected to be 1.1x, considerably lower than the 1.8x consensus. A final dividend of 1p per share is recommended, subject to approval, reflecting the Board's confidence in continued improvement. Disclaimer*
About this update from S4 Capital Plc
[{"type":"text","content":"\n\n\nS4 Capital PLC\n26 January 2026\n \nThis announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 on market abuse (\"UK MAR\"), as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. \n \n \nS4 Capital plc\nFourth Quarter Trading Update\n(\"S4 Capital\", \"the Company\" or \"the Group\")\n \n2025 full year ahead of revised guidance and current consensus\nLiquidity and net debt significantly improved and leverage expected to be 1.1x operational EBITDA\nFinal dividend of 1p subject to Board and Shareowner approval\n \n \nS4 Capital plc (SFOR.L) confirms that 2025 full year trading was ahead of the revised guidance issued on the 24 November 2025 and is above the current consensus of net revenue of £664 million and operational EBITDA of £75 million. The Company expects like-for-like net revenue to be down circa 8.5%, with an operational EBITDA margin of circa 12%.\n \nNet debt will be both significantly below current consensus of £133 million and below the previously indicated range of £100-140 million, following a change in Treasury management and a consequent strong focus on working capital management resulting in an improvement in liquidity.\n \nThe net debt to operational EBITDA ratio at the end of 2025 is expected to be approximately 1.1x versus current consensus of 1.8x and well below the target of 1.5x.\n \nThe annual results for 2025 will be announced on 25 March 2026 at which point the Company will provide more detailed targets for 2026.\n \nThe Company will recommend a 1p dividend, subject to the finalisation of the annual results and approval from the Board and Shareowners.\n \n \nSir Martin Sorrell, Executive Chairman of S4Capital plc said:\n \n\"Good to see both delivery beyond revised net revenue and operational EBITDA guidance and the significant improvement in liquidity. However, there is still much more to be done around net revenue and margin growth in 2026 and beyond which we will cover with the 2025 results presentation in March. The recommended 1p final dividend is an indication of the Board's confidence in continued improvement. In an increasingly volatile world, clients continue to carefully assess where they should expand geographically...