TIDMSFOR
RNS Number : 1920Y
S4 Capital PLC
12 January 2022
12 January 2022
S4 Capital plc
("S(4) Capital", "the Company" or "the Group")
Merger announcement & trading update
-- Combination between Media.Monks and 4 Mile Analytics,
expanding the capabilities of Media.Monks' Data&digital media
practice
-- Trading continues in line with market expectations,
delivering very strong like-for-like revenue and gross profit/net
revenue growth well ahead of the previous guidance
S(4) Capital plc (SFOR.L), the tech-led, new age/new era digital
advertising and marketing services company, announces a combination
between 4 Mile Analytics and Media.Monks, which significantly
expands the capabilities of its Data&digital media practice.
The merger augments its global analytics capabilities and expands
its client base. 4 Mile Analytics is a leader in data analytics,
data engineering, data governance, software engineering, UX design
and project & product management.
4 Mile Analytics was founded in 2017 by Nick Fogler in Santa
Cruz, California as a focused data consultancy, with the goal of
helping clients extract more value from their data. The company
works with Fortune 500 brands to enable custom data experiences
leveraging technology from partners such as Looker, Snowflake,
Fivetran and Google Cloud. With around 50 data specialists, 4 Mile
Analytics generated revenues of approximately $6.5m in 2021and is
targeting to double up this year.
Sir Martin Sorrell , S(4) Capital Executive Chairman said,
"Understanding and acting on data is at the heart of the S(4)
Capital Content, Digital Media and Technology services offering.
Therefore, we are delighted to welcome Nick, Sam and their
colleagues at 4 Mile Analytics, as we expand our capabilities and
partnerships, in particular with Google and their Looker and Google
Cloud platforms."
Nick Fogler , 4 Mile Analytics CEO and Founder, said "We
couldn't be more excited to join forces with Media.Monks and S(4)
Capital . We see huge opportunities to bring the offerings of the
wider group to our clients and provide even more opportunities for
our team."
Tyler Pietz , Global Executive Vice President, Data,
Media.Monks, said " We 've seen incredibly strong demand for data
analytics and engineering expertise from our clients. Nick and his
team at 4 Mile Analytics will bring additional expertise, scale and
clients to one of our fastest expanding service areas."
Trading update
S(4) Capital confirms that trading for the first 11 months and
forecasts for December continue in line with market expectations,
delivering very strong like-for-like revenue and gross profit/net
revenue growth well ahead of the previous latest company guidance
of 40% (at almost double the growth in our addressable markets,
which are forecast to grow 20-30% in 2021)*.
Operational EBITDA margins improved significantly in the second
half, as flagged in the half year report in September and the third
quarter statement in November. Even after allowing for the cash
consideration paid in respect of mergers recently completed,
including 4 Mile Analytics, the Company has monthly net debt
ranging between GBP10 and GBP30 million, reflecting strong
operational cash flow.
Commenting on 2022 prospects Sir Martin Sorrell , S(4) Capital
Executive Chairman said, "We are excited about the growth
opportunity ahead of us in 2022 and beyond, all incorporated into
our fourth three year plan for 2022-24. Our budgets are set at 25%
like-for-like gross profit/net revenue growth in line with that
three year plan, which seeks to double the size of the company
organically and targets an improvement in the operational EBITDA
margin back towards previous levels" .
Full year results for 2021 will be announced on 18th March
2022.
*Addressable Markets: Moffat Nathanson forecast 28.8% digital
media spend growth in 2021, Groupm at 29.2%, ZenithOptimedia at
25%. Morgan Stanley forecast Tech Services growth at 21% in 2021.
The 9 investment analysts that follow S(4) Capital forecast
consensus Gross Profit of GBP560m for 2021.
Enquiries
S(4) Capital plc Tel: +44 (0)20
3793 0003
Sir Martin Sorrell, Executive
Chairman
Powerscourt (PR adviser to Tel: +44 (0)7970
S(4) Capital plc) 246 725
Elly Williamson
Jane Glover
About 4 Mile Analytics
4 Mile Analytics is a full-service data consultancy specializing
in custom data experiences powered by the Looker platform.
We believe in the power of compelling data narratives to drive
better decision-making. 4 Mile's tailored solutions help our
clients move up the ladder of analytic maturity.
Our approach to technology is human-centric: we focus on people
and relationships first, valuing diversity, empathy, and
respect.
About S(4) Capital
S(4) Capita l (SFOR.L) is the tech-led, new age/new era digital
advertising and marketing
services company, established by Sir Martin Sorrell in May
2018.
Its strategy is to build a purely digital advertising and
marketing services business for global, multinational, regional,
local clients and millennial-driven influencer brands. This will be
achieved by integrating leading businesses in three practice areas:
content, data&digital media and technology services, along with
an emphasis on "faster, better, cheaper" executions in an always-on
consumer-led environment, with a unitary structure.
Digital is by far the fastest-growing segment of the advertising
market. S(4) Capital estimates that in 2021 digital accounted for
approximately 60% or $420-450 billion of total global advertising
spend of $700-750 billion (excluding over $500 billion of trade
promotion marketing, the primary target of the Amazon advertising
platform) and projects that by 2022 total global advertising spend
will expand to $770-850 billion and digital's share will grow to
approximately 65% and by 2024 to approximately 70%, accelerated by
the impact of covid-19.
In 2018, S(4) Capital combined with MediaMonks, the leading
AdAge A-listed creative digital
content production company led by Victor Knaap and Wesley ter
Haar, and then with
MightyHive, the market-leading digital media solutions provider
for future thinking marketers and agencies, led by Peter Kim and
Christopher S. Martin. Since then, MediaMonks and MightyHive have
combined with more than 25 companies across content,
data&digital media and technology services. For a full list,
please see the S(4) Capital website . In August 2021, S(4) Capital
launched its unitary brand by merging MediaMonks and MightyHive
into Media.Monks, represented by a dynamic logo mark that features
MightyHive's iconic hexagon. As the operational brand, Media.Monks
underpins S(4) Capital 's agility, digital knowledge and efficiency
and is the next step in delivering on its foundational promise to
unify content, data&digital media and technology services.
Victor Knaap, Wesley ter Haar, Pete Kim, Christopher Martin,
Mary Basterfield and Scott Spirit all joined the S(4) Capital Board
as Directors. The S(4) Capital Board also includes Rupert Faure
Walker, Paul Roy, Daniel Pinto, Sue Prevezer, Elizabeth Buchanan,
Naoko Okumoto, Margaret Ma Connolly, Peter Rademaker and Miles
Young.
The Company now has well over 7,500 people in 33 countries
across the Americas, Europe, the Middle East and Africa and
Asia-Pacific and a current market capitalisation of approximately
GBP3.0billion (c.$4.0billion) and would rank inside the FTSE 150.
It achieved Unicorn status in a little over one year, unique in the
advertising and marketing services industry. Sir Martin was CEO of
WPP for 33 years, building it from a GBP1 million "shell" company
in 1985 into the world's largest advertising and marketing services
company with a market capitalisation of over GBP16billion on the
day he left. Today its market capitalisation is GBP13.5 billion.
Prior to that Sir Martin was Group Financial Director of Saatchi
& Saatchi Company Plc for nine years.
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