Sir Martin Sorrell’s advertising group lost more than a fifth of its value yesterday after it issued its second profit warning in three months, blaming a weak economy and lack of business confidence.
Posting results for the six months to June 30, S4 Capital put the fall down to pressure on technology groups, whose big customers are worried about the prospect of recession. “I think the focus from companies is, let’s keep it tight,” Sorrell said.
The veteran advertising entrepreneur said he expected the wariness to continue at least until the US elections in November next year, which would provide more stability. S4 is heavily skewed towards the Americas, where it derives 80 per cent of its business.
The company’s value fell by 21.7 per
