Updates

S4 Capital

October 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The shares fell after S4 said that although like-for-like sales growth is in line with full year expectations of +25%, EBITDA and margins are below. As a result, broker Dowgate has lowered FY’22 EBITDA estimates by 24% to £120m.By division, Data & Digital Media and Technology services delivered “healthy” margins but increased costs (including significant investment in hiring) have impacted margins in Content. S4 has therefore introduced mitigating measures including a brake on hiring and cost controls. Net debt finished the period at the lower end of £140m-£190m guidance due to improvements in working capital.S4 had previously flagged that FY’22 EBITDA will be skewed to H2 and Dowgate suggests a £39m:£118m H1:H2 split for ...

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TMI Trader Portfolio - October 22

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S4 Capital (November 2022)

S4 Capital (August 2022)

S4 Capital (March 2022)

S4 Capital (December 2021)

S4 Capital - Shares hit new high of 872p (November 2021)

S4 Capital - Shares power through £8 mark (October 2021)

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S4 Capital - Digital advertising agency to increase profit from £31m-£108m between FY19-22 (November 2020)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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