Sir Martin Sorrell turns to a former board colleague to help restore investor confidence in S4 Capital, the marketing services empire he built four years ago.
Sky News has learned that Colin Day, who was a non-executive director at the WPP Group and has served as chief financial officer at Aegis Group and Reckitt Benckiser, will be appointed as the new chair of S4’s Audit Committee this week.
The appointment of Mr. Day, who will join the S4 board as a non-executive director, will reunite him with Sir Martin, the founder and former chief executive of WPP.
It is expected to be announced on Tuesday.
The appointment comes nearly five months after S4 delayed the release of its results hours before they were released on the stock market because auditor PricewaterhouseCoopers was unable to sign off on them.
Sir Martin’s group, which has grown rapidly through dozens of acquisitions since 2018, finally released the numbers in May.
Since then, however, a warning that earnings would be lower than expected this year has prompted another sharp drop in S4 shares.
A person close to the company said the appointment of Mr. Day, a board veteran who also ran Essentra, the industrial products group, is intended to restore shareholders’ confidence in S4’s corporate governance.
Mr Day is a non-executive director at the Department for Environment, Food and Rural Affairs and is expected to step down from Meggitt’s board when the £6.3bn takeover by Parker-Hannifin is completed.
As Chair of S4’s Audit Committee, he will replace Rupert Faure Walker, who has held the position since 2018.
The recent series of glitches has resulted in a surprise drop in S4’s valuation, with shares plummeting nearly 80% over the past year.
This decline reflects in part the general deterioration in sentiment towards technology-based stocks in public markets around the world in recent months.
Sir Martin has continued to acquire businesses at S4 even after the audit delay and profit warning.
The latest deal, announced a month ago, saw S4’s digital content creative production company Media Monks merge with XX Artists, a Los Angeles-based social media marketing agency.
In total, S4 today employs more than 9,000 people in more than 30 countries and counts multinational companies such as Adidas, BMW and Google among its customers.
Sir Martin’s belief in the timing of his “next-generation” approach to building an advertising holding company has been reinforced by the pandemic, with a surge in online and other digital spending from brand marketers.
Previous acquisitions by S4 have included Circus, an agency that counts Facebook, Google and Spotify among its clients, Firewood, the largest marketing agency in Silicon Valley, and Orca Pacific.
On Monday, S4 shares closed at 132.6p, giving it a market value of more than £700m.
S4 declined to comment.
Sorrell Turns to Former Board Member Day to Rebuild Investor Confidence | business news
Source link Sorrell Turns to Former Board Member Day to Rebuild Investor Confidence | business news