S4 Capital plc (SFOR.L), a digital advertising, marketing and technology services company, Monday confirmed that its fourth-quarter trading was in line with revised November expectations. For fiscal 2023, the company expects a like-for-like net revenue decline of around 4 percent and an Operational EBITDA margin in the range of 10-11 percent.
In its fourth-quarter trading update, the company said it improved Operational EBITDA margin performance in the second half of the year as a result of significant cost reductions.
The company noted that 2023 was a difficult year impacted by volatile macro conditions and, consequently, cautious spending from clients, particularly those in the technology sector and from smaller project-based assignments.
Net debt is expected to be towards the lower end of the guided range of 180 million pounds to 220 million pounds.
S4 Capital is scheduled to release full-year results on March 27.
Further ahead, for fiscal 2024, Martin Sorrell, S4Capital Executive Chairman, said, "While it is early in the year, we are not expecting 2024 to show macro-economic improvement, and client caution on marketing spend will likely persist, although not at last year's level given interest rates are likely to fall over time. Initial indications are for an improvement in performance in the Content practice, reflecting cost reductions, broadly similar performance in Data&Digital Media to last year and a more challenging outlook for Technology Services."
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