S4 Capital continued its downward dive today after shares plunged as much as 35 per cent on Wednesday afternoon amid PwC auditing delays.
In a statement to the stock exchange, Sir Martin Sorrell’s digital ad group said it had been informed by the accounting firm that it was “unable to complete the work necessary”.
S4 said the results would be published as soon as PwC completed the work, but said that the company believed “the results for 2021 remain within the range of market expectations and continued to trade strongly in the first two months of 2022”.
However, this didn’t stop nearly £1bn being wiped off its market value, with its stock continuing to fall seven per cent today.
S4 is the brainchild of ad tycoon and former WPP boss Martin Sorrell, bagging a number of leading clients, including the likes of Google and Mondelez.
Nonetheless, Sorrell’s relationship with the London market is a complex one.
Earlier this year, he wrote in the Times: “When we started S4 Capital in 2016, I did look at the US market and Spacs, but the entry costs then were too expensive — although it’s gone the other way now, given the oversupply.”
He signalled that the company was considering a US listing, stating “we would probably get a better valuation” on Wall Street.
Medical diagnostics firm Randox also reported PwC delayed audited accounts earlier this week. It cited that PwC and its own finance team had been affected by Covid-related absences.