S4 Capital PLC on Friday released its long-awaited results for 2021, showing the advertising agency swung to a loss in the year, despite nearly doubling revenue.

The Martin Sorrell-founded firm had delayed publication of the results twice back in March, after its auditor PricewaterhouseCoopers was unable to complete the work.

Revenue nearly doubled to £686.6 million from £342.7 million, around 52% higher on a like-for-like basis, benefitting from organic growth as well as from acquisitions.

Despite this, the firm swung to a pretax loss in the year of £55.7 million from a profit of £3.1 million.

This was due to large adjusting items, which increased to £136.9 million in the year, from £49.8 million in 2020. The items related to acquisitions, amortisation and share-based payments, the firm said.

On an adjusted basis, pretax profit rose to £81.2 million from £52.9 million.

Shares in S4 were up 2.6% to 334.40 pence each in London on Friday morning.

‘Whilst this growth, both organic and through business combinations, is very satisfying, the delay in producing our 2021 results is unacceptable and embarrassing,’ said Executive Chair Martin Sorrell.

‘Significant changes in our financial control, risk and governance structure and resources are being implemented and planned, including several significant additions to the central and Content practice financial teams and the Audit Committee,’ Sorrell continued.

The firm is targeting ‘strong’ growth in revenue, gross profit, as well as improving operational earnings before interest, tax, depreciation and amortisation margin for 2022.

January and February growth was ahead of guidance of 25% like-for-like growth in gross profit and net revenue, it noted.

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