Sir Martin Sorrell firm trading in line following revenue surge

Sir Martin Sorrell’s new marketing communications venture has reported soaring revenues as the advertising tycoon continues to take the challenge to his old firm WPP.

S4 Capital booked a 46% increase in euro sales, gross profit up almost 40% and operating earnings at the MediaMonks agency up nearly 118% in the year to the end of November.

Like-for-like revenues grew over 51% and the group said it is trading in line with expectations.

The firm added that it secured two “prestigious digital content assignments” from major global package goods companies before Christmas, which will impact next year’s figures.

S4 Capital recently bagged its second acquisition, splurging 150 million US dollars (£118 million) to snap up San Francisco-based MightyHive.

Sir Martin, the founder and former boss of advertising giant WPP, said the deal was an “important second strategic step” for S4 Capital as it looks to target the west coast of America and technology giants.

The takeover was completed on Christmas Eve and three-year plans and budgets for 2019 are in preparation, indicating continued strong organic growth.

Sir Martin said: “Momentum continues at MediaMonks and now at MightyHive, and we are already making progress in bringing MediaMonks and MightyHive together to provide a differentiated digital content, data and programmatic offer for clients and investors.

“We look forward to updating the market in early March 2019.”

The acquisition of MightyHive, which specialises in programmatic marketing, is the second takeover by Sir Martin since he left WPP in April, following allegations of misconduct and that he misused company funds.

His new venture triumphed against WPP in a high-profile battle to buy Dutch firm MediaMonks, which also recently opened an office in San Francisco.