S4 Capital shares fell on Monday after the marketing group downgraded its full-year guidance following weaker-than-expected October performance.
The digital advertising group now expects 2025 like-for-like net revenue to fall just under 10%.
Shares were down 9% at the time of writing.
The revenue shortfall will hit profitability hard. Operational EBITDA is now targeted at approximately £75 million, significantly below the £81.6 million market consensus. Management blamed lower project-based revenue, continued client caution, and slower-than-anticipated conversion of new business wins.
S4’s struggles mirror those of WPP, which is also facing difficulties in the current environment.
The company has already implemented cost-cutting measures this year. However, liquidity remains stronger than forecast, with year-end net debt still expected between £100 million and £140 million.