The Sir Martin Sorrell-owned S4 Capital has had almost £950 million ($A1.6 billion) wiped off its value after auditor, PwC, refused to sign off its annual results.
S4 said PwC was unable to complete “the work necessary” for it to publish its full year results that were due out yesterday, London time.
The delay caused the share price to tumble almost 36 per cent from £3.10 ($A5.43) to £1.72 ($A3.01).
Sorrell, the 77-year-old advertising sage, has a 10 per cent stake in the business or about £93 million ($A162 million).
S4 results were originally due on March 18, however PwC said it was forced do delay them citing the impacts of COVID on travel and resources.
S4 said in a statement: “S4 will release its preliminary results for 2021 as soon as PwC have completed their work.’
“S4 has been highly acquisitive and that throws up its own issues. Maybe the auditors couldn’t get a clear view.”
It added that it expected its 2021 results to “remain within the range of market expectations”.
That said, S4’s share price is a long way off its market high back in September when shares were trading at £8.34 ($A14.60). The market apparently spooked by S4’s high spending plans and aggressive acquisition plays designed to lure more prestige clients.
