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2024 performance

Chapter 1

We remain confident in our strategy, business model and talent. Our new go-to-market propositions are resonating strongly with clients.

 

Business model

We orchestrate marketing to flow


In an industry that is becoming increasingly complex and outdated, we are a digital first marketing and technology company that disrupts analogue models by accelerating and automating the way work is done.

Client problem

Remove complexity

How we solve this

Orchestration Partner

We orchestrate the fragmented flow of work across tools, agencies and processes to improve speed, quality and ensure brand safety. With a combination of AI workflow and studio tools, we make more of the right work, better, faster, cheaper and more.

Client problem

Increase brand power

How we solve this

Real-Time Brands

By integrating our capabilities in brand-building creativity, social media and data we use real time signals across channels to dynamically adapt creativity to improve consumer engagement and therefore brand power.

Client problem

Media and data transparency

How we solve this

Glass Box Media

Monks is a 100% digital media business, and with significant capability in data and analytics we take a ‘glass box’ approach to client media strategy and execution. The demands for transparency in the industry will only increase, and we are well placed to benefit from this.

Client problem

Legacy operating and marketing models

How we solve this

Digital business transformation

Our Technology Services and Consulting capabilities enable transformation in clients via data optimisation and management, tech stack integration, digital consumer experiences and other aspects of technological innovation.

Our tools

  • One P&L and one operating model

  • Data, media, content, technology and ESG integrated

  • Global scale, local relevance, sustainable impact

  • AI enabled by Monks.Flow

  • Borderless talent, diverse perspectives

  • Technology partnerships, investor relationships

Worldwide presence

We’re always on. A global communications business for the new marketing age. Integrated, agile and responsive.

  • 7150 people
  • 33 countries
  • 48 offices
  • 1 unitary structure
  • Company locations

Financial highlights

  • Billings¹

    £2.0bn

    +4.9%

    Like-for-like² +8.1%

  • Pro-forma³ billings

    £2.0bn

    +8.1%

  • Revenue

    £848.2m

    -16.1%

    Like-for-like -13.6%

  • Pro-forma revenue

    £848.2m

    -13.6%

  • Net revenue

    £754.6m

    -13.6%

    Like-for-like -11.0%

  • Pro-forma net revenue

    £754.6m

    -11.0%

  • Operational EBITDA⁴ ⁸

    £87.8m

    -6.3%

    Like-for-like -0.6%

  • Pro-forma operational EBITDA⁸

    £87.8m

    -0.6%

  • Operational EBITDA margin⁵

    11.6%

    +90bps

    Like-for-like +120bps

  • Pro-forma operational EBITDA margin

    11.6%

    +120bps

  • Operating loss

    -£302.8m

    2023 £20.2m profit

  • Adjusted operating profit⁶

    £78.3m

    -4.5%

    Like-for-like +1.6%

  • Loss before income tax

    -£330.9m

    2023 -£13.9m

  • Adjusted result before income tax⁷

    £50.2m

    +4.4%

  • Basic loss per share⁹

    -45.7p

    2023 -2.2p

  • Adjusted basic earnings per share⁹

    5.2p

    2023 4.4p

  • Market capitalisation at 21 March 2025

    £202m

  • Share price at 21 March 2025

    33.0p

  • Net debt

    £142.9m

  • Net debt ratio

    1.6x

  • Dividend per share

    1p

For full reconciliation from statutory to non-GAAP measures, please refer to the Alternative Performance Measures Appendix on page 164 of the S4Capital plc Annual Report and Accounts 2024.

Notes:

  1. Billings is gross billings to clients including pass-through costs.
  2. Like-for-like relates to 2023 being restated to show the unaudited numbers for the previous year of the existing and acquired businesses consolidated for the same months as in 2024 applying currency rates as used in 2024.
  3. Pro-forma numbers relate to unaudited full-year non-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.
  4. Operational EBITDA is EBITDA adjusted for acquisition related expenses, non-recurring items (primarily acquisition payments tied to continued employment, amortisation and impairment of business combination intangible assets and restructuring and other one-off expenses) and recurring items (share-based payments), and includes right-of-use assets depreciation. It is a non-GAAP measure management uses to assess the underlying business performance.
  5. Operational EBITDA margin is operational EBITDA as a percentage of net revenue.
  6. Adjusted operating profit is operating profit/loss adjusted for non-recurring and recurring items (as defined above).
  7. Adjusted result before income tax is profit/loss before income tax adjusted for non-recurring and recurring items (as defined above).
  8. 2023 Operational EBITDA excludes the one-off benefit of £9.3 million due to the significant devaluation of the Argentinian peso in December 2023.
  9. The comparatives as at 31 December 2023 have been restated to account for the recognition of deferred tax balances related to certain business combinations in prior years.

Business summary

Trading in the year reflected both continued uncertainty around global macroeconomic conditions, high interest rates and lower marketing spend from technology clients.

In addition, there was a reduction in transformation activity in one of our larger Technology Services clients. However, trading in the fourth quarter improved over the first three quarters with stronger like-for-like net revenues, including an increase in Data&Digital Media.

Growth opportunities
We are seeing significant opportunities for new business, particularly driven by our AI tools and capability. Our three new Go-To-Market propositions, Orchestration Partner, Real-Time Brands and Glass Box Media are all starting to resonate strongly with clients. These are built around hyper-personalisation at scale, social media, brand strategy and transparent media buying and planning.

Outlook
Given the wider market uncertainty and the priority shown by technology clients
to AI-related capital expenditure rather than operational expenditure, such as marketing, we target net revenue and operational EBITDA to be broadly similar to 2024. We will continue to focus on our cost base and will take further action to support profitability.

The strategy of S4Capital remains the same. The Group’s unitary, purely digital transformation model, based on first-party data fuelling the creation, production and distribution of digital advertising content, distributed by digital media and built on technology platforms to ensure success and efficiency, resonates with clients.

Financial summary

Reported billings1 were £1,963.0 million, up 4.9% and up 8.1% like-for-like2 and pro-forma3, reflecting stronger digital media planning and buying activity.


Controlled billings4, that is billings we influenced, were approximately £5,217.6 million (2023: £5,022.8 million).

Reported revenue was £848.2 million, down 16.1% from £1,011.5 million and down 13.6% like‑for‑like. Reported net revenue was £754.6 million, down 13.6% and down 11.0% like-for-like.

Reported operational earnings before interest, taxes, depreciation and amortisation (operational EBITDA) was £87.8 million compared to £93.7 million in the prior year, down 6.3% on a reported basis and down 0.6% like-for-like. We have continued to maintain a disciplined and active approach to cost management, including headcount and discretionary costs.

Operational EBITDA margin was 11.6%, up 90 basis points versus 10.7% in 2023 and up 120 basis points like-for-like with improved profitability in Content and Data&Digital Media and lower central costs, although these were partly offset by the anticipated reduction in delivery from Technology Services. Our ambition remains to return full year margins to historic levels, around 20%, over the longer term.

  1. Billings is gross billings to clients including pass-through costs.
  2. Like-for-like relates to 2020 being restated to show the unaudited numbers for the previous year of the existing and acquired businesses consolidated for the same months as in 2021 applying currency rates as used in 2021.
  3. Pro-forma numbers relate to unaudited full-year non-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.
  4. Operational EBITDA is EBITDA adjusted for acquisition related expenses, non-recurring items 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 (also see Note 26).
  5. Operational EBITDA margin is operational EBITDA as a percentage of gross profit/net revenue.
  6. Adjusted operating profit is operating profit/loss adjusted for non-recurring items and recurring share-based payments.
  7. Adjusted result before income tax is profit/loss before income tax adjusted for non-recurring items and recurring share-based payment.

  • Billings £m

  • Revenue £m

  • Net revenue £m

  • Operational EBITDA £m

  • Operational EBITDA margin %

  • Adjusted operating profit £m

  • Operational EBITDA and margin £m/%

Net revenue split by practice %

  • Content

    63

  • Data&Digital Media

    25.5

  • Technology Services

    11.5

Net revenue split by region %

  • Americas

    77.9

  • EMEA

    16.4

  • APAC

    5.7

ESG: Our sustainability commitments

Our ESG strategy continues to focus on our pillars of People Fulfilment, Our Responsibility to the World and One Brand.

People Fulfilment
We are committed to building a globally decentralised workforce that embraces diverse perspectives, skills, thoughts and experiences. We provide our people with the tools, training and support needed to foster a culture that allows us to adapt to the changing world.

Our Responsibility to the World
Our overarching sustainability goal is our commitment to SBTi-approved Greenhouse Gas (GHG) targets, with 2022 as the baseline year for market-based reporting.

This year has marked significant success for the Group in relation to our ESG efforts. We achieved global B Corp Certification, underscoring our commitment to balancing profit with purpose and advancing our ESG initiatives. In addition, our Science Based Targets initiative (SBTi) targets were accredited and approved, reinforcing our commitment to measurable emissions reductions.

One Brand
All these initiatives contribute to a more integrated approach with ESG as part of our business model, unifying our operating model and strengthening our One Brand execution moving forward under a single P&L.

Our impact model

  • Input

    • People

      7,166 people
      48.6% women
      47.7% men
      3.7% undeclared

    • Resources

      48 offices
      33 countries
      3,911.480 MWh electricity used

    • ‎

    • Our relationships

      Clients
      Technology partners
      Investors

  • Output

    • Offered 76 intern and associate positions
      Continued flagship S4 programmes
      Deployed Accelerate.Monks management programme, over 800 applicants globally

    • 21.2% absolute emissions (market- based) reduction YoY
      2.8 tCO2e per employee
      42.1% of electricity is renewable

    • £848.2 million revenue £78,136 (0.01% of revenue) donated to charities and 3,184 voluntary hours

    • 6,872 projects,
      544 For Good projects,
      113 Purpose-driven clients

  • Long-term value

    • We empower our people to be a catalyst for change, in an inclusive, diverse and creative workplace

    • We embed integrated sustainable processes to drive efficiency and long-term environmental responsibility across all facets of our business, ensuring progress toward net zero operations

    • We remain economically viable and invest in our innovations enabling us to contribute to sustainability challenges in the long run

    • We help improve the ESG impact of our clients – to bring about the shift in attitudes and behaviour needed to reach the SDGs

Alignment with UN Sustainable Development Goals

  • People Fulfilment

    • Gender Equality
      Gender equality
    • Reduced inequalities
      Reduced inequalities

  • Our Responsibility to the World

    • Industry innovation and infrastructure
      Industry, innovation & infrastructure
    • Responsbile consumption & production
      Responsbile consumption & production
    • Climate action
      Climate action

  • One Brand

    • Monks logo
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