Martin Sorrell's advertising firm S4 Capital warned on Monday that full-year profit was set to miss consensus expectations, pointing in part to client caution.
Following a third-quarter trading update earlier in the month, the company said it has now reviewed its financial results for October and the third-quarter revised forecast for 2025, which show a drop in net revenue versus the forecast and therefore impact the fourth-quarter performance.
S4 Capital said 2025 like-for-like net revenue is now expected to be down by just under 10%.
"Despite the cost actions we have already taken this year, this decline in net revenue will impact our operational EBITDA, which we are now targeting to be approximately £75m, below the current market consensus of £81.6m," it said.
As well as client caution, the group cited lower project-based revenue and a slower-than-expected ramp-up of new business wins.
Nevertheless, S4 said its liquidity continues to improve more than expected and its targeted range for year end net debt remains £100m to £140m.