Sir Martin Sorrell’s S4 Capital has seen sales continue to fall in its half-year results, with like-for-like revenue dropping by 13.5% year-on-year down to £376.1 million from £445.5 million.

The decline has been primarily blamed on lower spending from the tech sector, with continued global macroeconomic uncertainty and high interest rates adding fuel to the fire.

The continuing uncertainty within the network is clear to see, as headcount at flagship agency Monks declined by a considerable 11.7% year-on-year, with its total number of employees falling by over 1,000 to 7,533.

Despite these setbacks, the firm maintains its full year guidance.

“As highlighted previously, trading in the first half reflects the continuing impact of both challenging global macroeconomic conditions and high interest rates,” Sorrell said.

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“This particularly impacted marketing spend by some technology clients and our technology services practice was affected by a reduction in one of our larger relationships.

“We maintain our profit target for the full year and, as in prior years, financial performance will be significantly second half weighted.”

Unsurprisingly, reported net revenue at S4 Capital was also down by 15.6% to £376.1m in H1 2024. These concerning figures follow on from an 11.7% decline in like-for-like revenue registered in Q1.

Operational Ebitda is projected to be £30.1 million, down 17.5% reported and down 8.2% like-for-like, with the business’ operating loss now standing at £3.7 million.