S4 Capital flags tough trading amid volatile macro conditions
By Iain Gilbert
Date: Thursday 04 Jun 2026
(Sharecast News) - Digital advertising and marketing firm S4 Capital said on Thursday that trading through 2025 had continued to reflect volatile macro conditions, with tariff negotiations and geopolitical risks keeping clients cautious.
S4 Capital said technology clients, which account for almost half of group revenues, remained focused on capital spending to expand AI capacity rather than operating budgets. It also said its technology services unit was hit early in the year by the loss of a major account and longer sales cycles, though it also noted that this eased as the year progressed.
Despite the backdrop, S4 said liquidity and cashflow improved sharply thanks to tighter cost control and stronger working‑capital management, helping drive a substantial reduction in net debt.
The London-listed firm stated its performance had strengthened in the second half, supported by new business wins and deeper relationships with large enterprise clients, including Asana, Amplifon, Samsung, Square, Visa and HelloFresh. It also reported growing adoption of AI‑related capabilities across creative, media and technology work.
S4 added that market conditions in early 2026 have remained challenging, but said trading was in line with expectations, with the firm expecting 2026 like‑for‑like net revenues of £632m to £663m, down low single digits compared to 2025 levels, and operational EBITDA margin expansions of at least 100 basis points. Year‑end net debt was forecast at £60m to £90m, with leverage targeted below 1.0x.
As of 0900 BST, S4 shares were down 2.23% 42.33p.
Reporting by Iain Gilbert at Sharecast.com
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