Martin Sorrell-led S4 Capital boosted its full-year 2021 guidance given its stronger than expected performance for the first four months of the year. The company issued a statement just prior to its annual meeting in London today.
The announcement drove S4’s shares up 6% in midday trading on the London Exchange.
Executive chairman Sorrell stated that growth in the first four months of the year has "accelerated strongly" with net revenue up almost 84% compared with 71% for the first quarter.
"We do not have our May figures as yet, but early indications are that May will be similar to April and that in June, the pipeline continues to be robust," Sorrell stated.
The new guidance calls for annual net revenue growth of 35% up from the previously stated guidance of 30%.
The firm did not offer a specific full-year organic growth figure (which strips out the impact of M&A and currency fluctuations) but Sorrell stated, “We are confident that we will be able to deliver sector leading, high double-digit [organic] revenue and gross profit growth for 2021.”
The company remains confident it will achieve its mid-term growth plan that calls for doubling of organic growth between 2021 and 2023, Sorrell said.
As for expanding the company’s footprint, Sorrell said the firm had added offices in Uruguay and Germany in the past year. “We do not believe that we will have to add more than four or five markets to our existing tally of 31 countries,” he added.
“We continue to examine our needs for deeper strategic insight and adding technology services, along with increasing focus on the importance of first party data and the walled gardens, following the death of the cookie, which we are already well positioned for.”