Sir Martin Sorrell’s S4 Capital slumps as advertisers show caution

Sir Martin Sorrell’s advertising empire blamed a pullback in spending by technology clients for a steep fall in revenue, which sent its shares down sharply towards an all-time low.

A combination of an uncertain economic backdrop, high interest rates and continuing caution from its clients sent net revenue at S4 Capital down more than 15 per cent, or 13.5 per cent on a like-for-like basis, to £376 million in the six months to June 30. Debt increased to £183 million from £109 million, which the company said was partly down to its share buy-back programme.

The company’s share price fell as much as 16 per cent in early trading as investors digested the news, before paring back losses to fall 5.9 per cent, or 2¾p,

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