Tech slowdown hits S4 Capital as shares drop

JACK MENDEL

SHARES in S4 Capital plummeted to close down over 21 per cent yesterday after the digital advertising giant’s second quarter update failed to impress.

The company said its net revenue was below budget in the last few months due to the economic climate and reduced its target of like-for-like net revenue growth to 2-4 per cent, down significantly from its previous 6-10 per cent target.

S4, chaired by industry tycoon Sir Martin Sorrell, also suggested there may be job losses, with the firm saying it would maintain a “disciplined approach to cost management, including headcount and discretionary cost” amid the tech slowdown.

The firm added its net debt stood at £115m as of 30 June, and is expected to rise to between £180mthis year.