S4Capital plc
Annual Report and Accounts 2022
Our mission
By winning
we can win the decade
…through building a unified, purely digital advertising and marketing services business, which disrupts analogue models by embracing content, data&digital media and technology services in an always-on24-7 environment, for global, multinational, regional and local clients and for millennial-driven influencer brands.
www.s4capital.com/annualreport22
In this report
Our business
0 | 02 | Financial highlights | ||
04 | Business model | |||
06 | What's happening, NOW | |||
1 | Strategic Report | |||
11 | Letter to shareowners | |||
14 | Progress against our strategy | |||
16 | Measuring success: Key Performance Indicators | |||
17 | Financial review | |||
24 | Principal risks and uncertainties | |||
Pages 65-70 also form part of the Strategic Report | ||||
2 | Industry outlook and ESG reports | |||
30 | Our world now | |||
By Sir Martin Sorrell | ||||
37 | ESG: Our sustainability commitments | |||
40 | TCFD Report | |||
48 | Material impact and our stakeholders | |||
50 | Zero Impact Workspaces | |||
55 | Sustainable Work | |||
57 | Diversity, Equity and Inclusion | |||
62 | ESG stories | |||
65 | Non-financial information statement | |||
66 | Section 172 statement | |||
3 | Governance Report | |||
72 | Corporate governance statement of compliance | |||
74 | Leadership: Board of Directors | |||
78 | Executive Chairman's statement | |||
80 | The role of the Board | |||
89 | Audit and Risk Committee Report | |||
94 | Nomination and Remuneration Committee Report | |||
99 | Remuneration Report | |||
117 | Directors' Report | |||
4 | Financial statements | |||
122 | Independent Auditors' Report | |||
134 | Consolidated statement of profit or loss | |||
135 | Consolidated statement of comprehensive income | |||
136 | Consolidated balance sheet | |||
137 | Consolidated statement of changes in equity | |||
138 | Consolidated statement of cash flows | |||
139 | Notes to the consolidated financial statements | |||
194 | Company financial statements | |||
201 | Appendix: Alternative Performance Measures | |||
206 | Shareowner information | |||
S4Capital plc Annual Report and Accounts 2022 | 1 |
Our business
Financial highlights
Billings1
£1.9bn
+45.8%
Like-for-like2 +23.5%
Revenue
£1,069.5m
+55.8%
Like-for-like +24.3%
Net revenue
£891.7m
+59.1%
Like-for-like +25.9%
Operational EBITDA4
£124.2m
+23.0%
Like-for-like-16.4%
Operational EBITDA margin5
13.9%
-410bps
Like-for-like-710bps
Operating loss
-£135.3m
2021 -£42.1m
Pro-forma3 billings
£1.9bn
+24.3%
Pro-forma revenue
£1,108.7m
+25.8%
Pro-forma net revenue
£924.1m
+27.1%
Pro-forma operational EBITDA
£136.3m
-11.8%
Pro-forma operational EBITDA margin
14.7%
-650bps
Adjusted operating profit6
£114.1m
+20.4%
Like-for-like-19.5%
2 S4Capital plc Annual Report and Accounts 2022
01 2 3 4
Loss before income tax
-£159.7m
2021 -£55.7m
Basic loss per share
-27.0p
2021 -10.3p
Market capitalisation at 12 April 2023
£911m
Adjusted result before income tax7
£89.7m
+10.5%
Adjusted basic earnings per share
11.8p
2021 13.0p
Share price at 12 April 2023
158.6p
For full reconciliation from statutory to non-GAAP measures, please refer to the Alternative Performance Measures Appendix on page 201.
Notes:
- Billings is gross billings to clients including pass-through costs.
- Like-for-likerelates to 2021 being restated to show the unaudited numbers for the previous year of the existing and acquired businesses consolidated for the same months as in 2022 applying currency rates as used in 2022.
- Pro-formanumbers relate to unaudited full-yearnon-statutory and non-GAAP consolidated results in constant currency as if the S4Capital plc Group (the Group) had existed in full for the year and have been prepared under comparable GAAP with no consolidation eliminations in the pre-acquisition period.
- Operational EBITDA is EBITDA adjusted for acquisition related expenses, non-recurring items (primarily acquisition payments tied to continued employment, restructuring costs and amortisation of business combination intangible assets) and recurring share-based payments, and includes right-of-use assets depreciation. It is a non-GAAP measure management uses to assess the underlying business performance.
- Operational EBITDA margin is operational EBITDA as a percentage of net revenue.
- Adjusted operating profit is operating profit/loss adjusted for non-recurring items (as defined above) and recurring share-based payments.
- Adjusted result before income tax is profit/loss before income tax adjusted for non-recurring items (as defined above) and recurring share-based payment.
S4Capital plc Annual Report and Accounts 2022 | 3 |
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S4 Capital plc published this content on 28 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2023 07:56:05 UTC.