Print Published 31st Dec 2018, 16:12

S4 Capital upbeat, but acquisition prices still look rather generous

Sir Martin Sorrell’s new marketing group S4 Capital is reported to have continued trading “in line with expectations” with healthy revenue growth in the period to 30 November 2018, according to an update issued this morning.

The newly constituted publicly listed group that comprises the creative production agency MediaMonks Multimedia Holding and the US media consultancy MightyHive will report its results for the period to 31 December in March next year.

It is too early to judge whether S4 Capital’s initial acquisitions will justify the seemingly rather generous prices paid for them, not least because it will take time for the marketplace to assess the merits of S4 Capital’s distinctive proposition. And, in any case, there may be a legitimate strategic justification for paying a premium price to lay the initial foundations of the business.