S4 Capital has raised its 2021 guidance for net revenue growth in light of an acceleration in the second quarter while reiterated its three-year target.
The U.K. digital advertising and marketing services company, founded by former WPP head Martin Sorrell, said it expects organic net revenue growth of 35%, up from 30% previously. In May, the company raised guidance to 30% from 25%.
The company said that it doesn’t yet have May figures, but said it will be similar to April when like-for-like net revenue accelerated from the first quarter and that it expects a robust June.
Net revenue for the first four months of 2021 was up 84% on a reported basis, S4 Capital added.
“2020 was a very busy third year for S4Capital, both organically and through mergers and the tempo has been maintained, as growth rates have accelerated in the first quarter and in to Q2 2021,” said Sorrell.
“I am pleased to say that generally few of our people and their families have been infected by covid-19 or developed serious problems as a result, although, regrettably a small number have sadly lost family members. Unfortunately, in recent weeks following new virus waves we have seen increases in cases in Brazil, Holland and India. Particularly in the case of India, we are trying very hard to help and, thankfully, there has been a significant recent improvement. We wish them and their families long life and record our thanks to all the frontline workers, who have kept us well and safe.”
S4 Capital said it is in the process of raising a term loan of more than $350 million to fund its expansion, as it has already deployed previously raised equity funds.
The company also said it added non-executive talent to its Board with Miles Young, former Chairman and Chief Executive of OGILVY and currently Warden of New College, Oxford. We now have eight Non-Executive Directors, four women, four men.”