Sir Martin Sorrell’s S4 Capital advertising agency crashes 36% after PwC refused to sign off its results
Sir Martin Sorrell has had more than £90million wiped off the value of his S4 Capital stake after PwC refused to sign off its results.
S4 said PwC was unable to complete ‘the work necessary’ for it to publish its full year results today.
More than £950million was wiped off S4’s value as shares tumbled 35.7 per cent, or 172p, to 310p.
Sir Martin Sorrell’s saw more than £90m wiped off the value of his S4 Capital stake after PwC refused to sign off its results
That cost Sorrell, who is the largest shareholder in the digital advertising company with a near-10 per cent stake, some £93million.
S4 results were due on March 18 but PwC pushed them back, citing coronavirus impacts on travel and resources.
An analyst close to the company said: ‘This is highly unusual that an auditor won’t sign off on a large listed company.
‘S4 has been highly acquisitive and that throws up its own issues. Maybe the auditors couldn’t get a clear view.’
S4 said: ‘S4 will release its preliminary results for 2021 as soon as PwC have completed their work.’
It expects its 2021 results to ‘remain within the range of market expectations’.
Sorrell launched S4 in 2018 following his acrimonious departure from WPP and the company has grown rapidly. Clients include tech giants Google, Apple, Netflix and German car maker BMW.
It has made 25 acquisitions, the latest being LA-based Cashmere last September.
Sorrell has complete control, a golden share giving him rights to pick the board and block shareholder resolutions.
But the shine has come off since September when shares hit a record 834p. Investors have been put off by big spending plans as Sorrell continues to chase blue-chip clients.