By Editor,Hugo Duncan
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S4 Capital shares slump to a record low as clients slash marketing spend
Martin Sorrell’s ad group flags falling sales and widening losses
By HUGO DUNCAN
Updated: 13:40 BST, 15 September 2025
Shares in Martin Sorrell’s advertising firm S4 Capital crashed to a record low after it reported falling sales and widening losses.
The company, set up by Sorrell in 2018 after he left WPP, warned ‘unsettling’ US tariff talks and economic worries meant companies were spending less on marketing.
S4 Capital shares fell 12.9 per cent to 19.74p by earlier afternoon. They have lost more than half of their value over the last 12 months, having fallen more than 95 per cent over the last five years.
S4 has been cutting costs and trimming its workforce as it has consistently warned over economic challenges affecting business.
It reported revenues of £360.4 million for the six months to the end of June 30 – down nearly 15 per cent on the same period a year ago.
Pre-tax losses widened to £25.1 million for the half year, from £17.1 million the prior year.
Sir Martin Sorrell founded S4 Capital in 2018 after he left rival WPP
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Meanwhile, the number of staff employed by the group – which it calls ‘monks’ due to its operating brand – was cut to around 6,900 by the end of June, down 9 per cent compared with 2024.
S4 said its sales have been declining because its customers were more cautious to spend in the face of more unpredictable economic conditions.
Uncertainty about the impact of US tariffs has particularly weighed on confidence.
It also flagged less activity from some of its larger technology clients, who account for almost half of its revenues, including the reduction of one key client which it did not name.
Tech firms are increasingly prioritising spending on artificial intelligence (AI) capabilities, rather than marketing, it said.
S4 counts the likes of Samsung, Amazon, General Motors and T-Mobile among its current client list, with new business contracts set to boost sales over the second half of the year.
Sir Martin Sorrell’s troubled ad group S4 Capital in merger talks with rival MSQ
It has been leaning further into its AI offering with some of its customers paying for projects to experiment with the technology.
Sorrell said: ‘Market conditions in the first half of 2025 reflect the continuing impact of, to say the least, volatile global macroeconomic conditions along with the unsettling effect of tariff negotiations.
‘Assessing the impact of US-imposed tariffs has been added to the three key risks around US/China relations, Russia/Ukraine and Iran/Middle-East.
‘Clients, therefore, are likely to remain cautious.’
However, he added that once tariff levels had been negotiated and the impact of new rates assessed, clients were likely to become more selective about which countries and regions they operate in and focus on technologies to make them more efficient.
‘This may be the time when AI-adoption accelerates at scale,’ he said.
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