London-based S4 Capital, the advertising agency run by Sir Martin Sorrell, has terminated several office leases as staff are being encouraged to adopt fully flexible hybrid working practices.
The advertising guru, who resigned from his previous firm WPP in 2018, said creativity is not being lost by the arrangements.
“We always knew that our people, being digital natives, would adapt effortlessly and productively to working from home and, as a result, we are further developing a hybrid office model, which accommodates those of our people who want to work more from home and who want to commute more flexibly, and provides spaces for working, interacting with colleagues and interacting with clients,” he said this morning.
“We have terminated a number of office leases, which will enable us to integrate our operations even faster than we originally thought.”
His comments came as the firm revealed it is set to grow faster than first expected. S4 Capital now believes net revenues growth in the first quarter of the financial year will be 35 per cent, compared with previous expectations of 30 per cent.
The move follows a similar uplift in forecasts in May, where the figure was raised from 25 per cent to 30 per cent.
Annual general meeting today
Executive chairman Sir Martin will tell shareholders at the company’s annual general meeting today that a three-year growth plan remains on target.
In a statement released ahead of the meeting this afternoon, he said: “2020 was a very busy third year for S4 Capital, both organically and through mergers, and the tempo has been maintained, as growth rates have accelerated.”
The former boss of WPP launched the digital-only advertising agency to rival his former firm.
S4 Capital has grown quickly through a series of acquisitions, including 11 takeovers in the past 12 months. It employs 5,500 staff across 31 countries and has seen a strong boost in revenues as advertising returns with pandemic restrictions easing.
In the first four months of 2021, reportable revenue was up almost 90 per cent compared with a year ago, with particular acceleration in April as vaccine rollouts picked up globally.
Sir Martin said: “We do not have our May figures as yet, but early indications are that May will be similar to April, and that in June the pipeline continues to be robust.”
Tech clients, which make up more than half of S4 Capital’s revenues, are outspending consumer goods, pharmaceutical and retail clients, he added.