S4 Capital Plc shares fell for a second day after Martin Sorrell’s digital advertising firm delayed publishing its annual results again, wiping about 1.2 billion pounds ($1.6 billion) in market value from the media company over the past two days.
On Wednesday S4 shares fell the most ever after again postponing the release of its 2021 preliminary results—due Thursday—because PriceWaterhouseCoopers was unable to complete the audit work on time.
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Shares in S4 continued to drop in London on Thursday, falling as much as 12.7%.
It’s the second time the digital advertising firm has postponed the announcement, having already done so at the start of March when it cited Covid’s impact on travel and resources for PwC’s request for an extension to complete the work.
Morgan Stanley analyst Omar Sheikh said that, based on conversations with the company, the reason for the delay is no longer a resource issue, and the lack of a revised date suggests the problem is “non-trivial.”
Spokespeople for S4 and PwC declined to comment.
“We do not yet know the precise details of what the problem is, but believe that PwC is unlikely to have taken the decision lightly,” said Conor O’Shea, analyst at Kepler Cheuvreux. “While it would be too much to say that this has echoes of Wirecard, at first sight it may be similar to the accounting issues that besieged Atos in 2021.”