Martin Sorrell's S4 Capital has reported a loss of £10 million (U.S. $11.5 million) for 2019 amid a 292% rise in revenue and 41% organic growth.
In its first full-year results, the company said revenue grew from £54.8 million in 2018 to £215.1 million in 2019, and grew 41% on a like-for-like basis.
Gross profit rose from £37.2 million to £171.3 million, a 361% rise, and increased 44% on a like-for-like basis. The company reported an operating loss of £3.8 million, citing £35 million in acquisition expenses and amortization and share-based compensation.
On a pre-tax basis, S4 lost £9.2 million, which includes adjustiments, versus a loss of £9.1 million in 2018. The bottom line after tax showed a £10 million loss, versus an £8.1 million loss in 2018.
"Our first full financial year was outstandingly successful," Sorrell, the company's executive chairman, said in a statement. "We grew our top line and bottom line at industry leading rates...We have achieved brand awareness and brand trial. We now have to demonstrate that we can achieve significant client conversion at scale, both with existing and new clients."
S4 cited significant recent assignments from Google, SoFi, Amazon, Netflix, Facebook, Procter & Gamble, Nestlé, Coca-Cola, Anheuser-Busch InBev, Vodafone, Merck, Shiseido, Akzo Nobel and Ace Hardware.
The company also reported a good start to 2020, with January gross profit up more than 30%.
"We have not seen a material impact from coronavirus as yet and will update the market appropriately," Sorrell added.
This story first appeard on campaignasia.com.