S4 Capital plc (SFCAY) Q4 2025 Earnings Call Transcript

SA Transcripts159.1K FollowersFollow5ShareSaveCommentsPlay Earnings CallPlay Earnings Call S4 Capital plc (SFCAY) Q4 2025 Earnings Call March 24, 2026 5:00 AM EDT Company Participants Martin Sorrell - Executive ChairmanRadhika Radhakrishnan - Group CFO, Company Secretary & DirectorScott Spirit - Chief Growth OfficerWesley ter Haar - Chief AI & Revenue Officer Conference Call Participants Laura Metayer - Morgan Stanley, Research DivisionSteven Craig Liechti - Deutsche Bank AG, Research Division Presentation Martin SorrellExecutive Chairman So good morning, everybody. I'm joined by Radhika and Scott and Wes, and this is our S4's 2025 call. So we'll kick off with a summary of the results from Radhika, then Scott will talk a little bit about market momentum. Wes will talk about, I guess, the topic du jour if not forever, which is AI. And then I'll come back and do a brief summary on the results, and then we'll go into Q&A. So Radhika, do you want to kick off, please? Radhika RadhakrishnanGroup CFO, Company Secretary & Director Yes. Good morning. I will start with the financial headlines for 2025. Despite global macroeconomic pressures and ongoing client caution, strong cost and working capital management improved the operational EBITDA margin and reduced year-end net debt below the targeted range. Net revenue was GBP 673 million, down 10.8% reported and 8.4% like-for-like. Operational EBITDA was GBP 81.2 million with a margin of 12.1%, up 70 basis points year-on-year. Adjusted operating profit was GBP 74 million, and adjusted EPS was 5p versus 5.2p in 2024. Free cash flow rose to GBP 86.5 million, up GBP 48.7 million year-on-year, driven by improved treasury management and tighter working capital discipline. Year-end net debt fell to GBP 86.9 million, 1.1x operational EBITDA, below the GBP 100 million to GBP 140 million target range and well below the GBP 142.9 million at the end of 2024. Subject to shareowner approval, the Board proposes to pay a final dividend of 1.1p per share, an increase of 10% compared to