Shares in S4 Capital soared over 15 per cent today after the firm confirmed it would be publishing its delayed results tomorrow.
The news comes after Sir Martin Sorrell’s S4 stock took a battering last month after the second PwC’s auditing delay, with investors jumping to the worse case scenario conclusions.
Eyebrows were first raised when the company warned at the start of March that the auditor needed more time because of “travel and resource allocation”, citing the pandemic as the driving cause. However, it’s not just Sorrell.
Medical diagnostics firm Randox also reported PwC delayed audited accounts at a similiar time, stating PwC and its own finance team had been affected by Covid-related absences.
This didn’t stop S4 losing almost third of its market value since March as it continues its complicated relationship with the London market.
The digital and marketing firm is the brainchild of ad tycoon and former WPP boss Sorrell, bagging a number of leading clients, including the likes of Google and Mondelez.
Nonetheless, earlier this year, Sorrell 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.