Martin Sorrell-led S4 Capital today reported a full-year 2024 net revenue decline of 13.6% to 754.6 million GBP (about $977 million) with an organic revenue shortfall of 11%. 

The company issued earlier statements, including one in January that the company would be in negative territory for the full year.  

Releasing its audited numbers today the firm cited continuing “challenging” macroeconomic issues, a big reduction in the spending of a big tech client last year and continuing lower spending on marketing across its technology client roster. 

The company said it has taken a non-cash after-tax impairment charge of £280.4 million, reflecting trading conditions in the second half of 2024 and the medium-term outlook following the completion of its budget and three-year planning process.  

The company’s operating loss for the year was 302.8 GBP including the impairment charge. 

As for this year’s outlook, net revenue and pre-tax earnings are expected to be “broadly” similar to 2024. The company did not provide a specific percentage or range for organic revenue expectations. 

“We expect clients to remain cautious in the near term, as there are increasing concerns about macro uncertainty and the impact of tariffs,” the company stated. “Technology clients continue to focus spending on AI-related capital expenditure, rather than operating expenditure, such as marketing. However, in Technology Services we expect the growth headwind from one key client to continue in the first half with an improving trajectory in the second half supported by new business.” 

The company said it is continuing to pay strict attention to costs including head count, which was down 7% in 2024 to about 7,150 employees.  

That said, the firm is investing in key areas like AI tools and capabilities, which are “being actively tested and implemented by a number of clients, including technology platforms.” 

“We remain confident in our strategy, business model and talent, which together with scaled client relationships position us well for growth in the longer term,” stated Sorrell. “We continue to capitalize on our prominent AI positioning and to see multiple initial AI-related assignments and significant testing."   

The company provided an update on its search for a new chief financial officer, noting that it is in “advanced negotiations and anticipates announcing a successor in the next few weeks.” Current CFO Mary Basterfield gave notice a couple of months back and has indicated she will stay through a transition period.