S4 Capital, the advertising firm founded by Sir Martin Sorrell, has revised its revenue and profit margin outlook for the year following a slow summer. This is the second time in two months that the company has lowered its expectations. S4 Capital now expects full-year like-for-like net revenue to be lower than the previous year, and operational Ebitda margins to be in the range of 12% to 13.5%. In July, the company had forecasted revenue growth between 2% and 4%, and an operational core profit margin of 14.5% to 15.5%.
The advertising group attributed the poor performance to challenging global economic conditions and client caution due to fears of recession. It noted that sales cycles, particularly for larger projects, had been extended. Despite the downward revisions, S4 Capital reported a rise in revenue to £445.5 million for the first half of the year, compared to £375.3 million the previous year. Billings also increased by 21% to £925.4 million.
S4 Capital said it would consider a dividend of at least 1p per share when the final results for 2023 have been determined.
Sources:
– Source 1: Article “7:29am: S4 Capital warns again after slow summer”
– Source 2: Article “8:15am: FTSE sluggish ahead of interest rate decisions”
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UK House Prices Continue to Fall, Rightmove Reports
UK house sellers are reducing their asking prices at the fastest rate in over a decade, according to property website Rightmove. The high interest rates and lower activity in the housing market during the summer have dampened demand for property. More than 36% of properties on the market have had their asking price reduced at least once, compared to the pre-pandemic average of 31.2%.
Rightmove attributes the increase in price reductions to a combination of interest rate rises and fewer properties coming up for sale in August. New seller asking prices in September were lower than usual for this time of year, with an increase of 0.4% compared to the previous month. On an annual basis, prices fell by 0.4%, marking the largest drop since March 2019. Rightmove predicts that prices will fall by 2% over the year as a whole.
Sources:
– Source 1: Article “7:48am: House prices continue to fall, Rightmove”
– Source 2: Article “8:15am: FTSE sluggish ahead of interest rate decisions”
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Pendragon Sells UK Motor Business, Shares Surge
Pendragon PLC, the automotive retailer, has announced the sale of its UK motor business and leasing business to Lithia UK Holding for £250 million. The company has also formed a strategic partnership with Lithia, which includes the rollout of its dealer management software business, Pinewood, to Lithia’s existing 50 UK sites. Additionally, a joint venture will be created to accelerate Pinewood’s entry into the North American market.
Following the announcement, Pendragon’s shares saw a significant surge of 26%. The sale of its UK motor business allows Pendragon to focus on its strategic priorities and strengthen its position in the market.
Sources:
– Source 1: Article “8:36am: Pendragon offloads UK motor business, stock soars”