Navigating the new
now
S
4
Capital plc
Annual Report and Accounts 2024
S
4
Capital is a new-age/new-era digital advertising,
marketing and technology services company,
operatingin the fastest-growing segment of the
advertising and marketing services market.
We are a unified, purely digital business, which
disrupts analogue models by embracing content,
data&digital media andtechnologyservices.
We work with global, multinational, regional and
localclients and for millennial-driven influencer
brands in a 24-7 environment.
We are dedicated to reducing global warming
through our net zero by 2040 pledge and
providingfor Monks and their dependents.
Navigating
the new now
Read more at
s4capital.com
monks.com
1. Our business
Financial highlights 03
Worldwide presence 04
Business model 05
2. Strategic Report
Letter to shareowners 08
Progress against our strategy 10
Measuring success: Key Performance Indicators 12
Financial review 13
Principal risks and uncertainties 19
Pages 51 to 56 also form part of the Strategic Report
3. Sustainability Statement
Our sustainability commitments 26
Our impact model 28
Materiality assessment and outcome 29
Our Responsibility to the World 30
People Fulfilment 39
Task Force on Climate-Related Financial
DisclosuresReport
43
Non-financial and sustainability information statement 51
Section 172(1) statement 52
4. Governance Report
Corporate governance statement of compliance 58
Leadership: Board of Directors 60
Leadership: Executive Committee 64
Executive Chairman’s statement 65
The role of the Board 67
Audit and Risk Committee Report 75
Nomination and Remuneration Committee Report 79
Remuneration Report 84
Directors’ Report 101
5. Financial statements
Independent auditors’ report 105
Consolidated statement of profit or loss 114
Consolidated statement of comprehensiveincome 115
Consolidated balance sheet 116
Consolidated statement of changes in equity 117
Consolidated statement of cash flows 118
Notes to the consolidated financial statements 119
Company balance sheet 158
Company statement of changes in equity 159
Notes to the Company financial statements 160
Appendix: Alternative Performance Measures 164
Shareowner information 169
In this report
S
4
Capital plc Annual Report and Accounts 2024 01
Our
business
Financial highlights 03
Worldwide presence 04
Business model 05
S
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Capital plc Annual Report and Accounts 2024 02Our business Strategic Report Sustainability Statement Governance Report Financial statements
Financial highlights
For full reconciliation from statutory to non-GAAP measures, please refer to the Alternative
Performance Measures Appendix on page 164.
Notes:
1. Billings is gross billings to clients including pass-through costs.
2. Like-for-like relates to 2023 being restated to show the unaudited numbers for the previous year of the existing
andacquired businesses consolidated for the same months as in 2024 applying currency rates as used in 2024.
3. Pro-forma numbers relate to unaudited full-year non-statutory and non-GAAP consolidated results in constant
currency as if the S
4
Capital plc Group (the Group) had existed in full for the year and have been prepared under
comparable GAAP with no consolidation eliminations in the pre-acquisition period.
4. Operational EBITDA is EBITDA adjusted for acquisition related expenses, non-recurring items (primarily
acquisition payments tied to continued employment, amortisation and impairment of business combination
intangible assets and restructuring and otherone-off expenses) and recurring items (share-based payments),
andincludes right-of-use assets depreciation. It isanon-GAAP measure management uses to assess the
underlying business performance.
5. Operational EBITDA margin is operational EBITDA as a percentage of net revenue.
6. Adjusted operating profit is operating profit/loss adjusted for non-recurring and recurring items (as defined above).
7. Adjusted result before income tax is profit/loss before income tax adjusted for non-recurring and recurring items
(as defined above).
8. 2023 Operational EBITDA excludes the one-off benefit of £9.3 million due to the significant devaluation of the
Argentinian peso inDecember 2023.
9. The comparatives as at 31 December 2023 have been restated to account for the recognition of deferred tax
balances related to certain business combinations in prior years.
Billings
1
£2.0bn
4.9%
Like-for-like² +8.1%
Revenue
£848.2m
−16.1%
Like-for-like -13.6%
Net revenue
£754.6m
−13.6%
Like-for-like -11.0%
Operational EBITDA
4,8
£ 8 7. 8 m
−6.3%
Like-for-like -0.6%
Operational EBITDA margin
5
11.6%
+90bps
Like-for-like +120bps
Pro-forma
3
billings
£2.0bn
8.1%
Pro-forma revenue
£848.2m
−13.6%
Pro-forma net revenue
£754.6m
−11.0%
Pro-forma operational EBITDA
8
£ 8 7. 8 m
−0.6%
Pro-forma operational EBITDA margin
11.6%
+120bps
Operating loss
-£302.8m
2023 £20.2m profit
Loss before income tax
-£330.9m
2023 -£13.9m
Basic loss per share
9
-45.7p
2023 -2.2p
Market capitalisation at 21 March 2025
£202m
Net debt
£142.9m
Adjusted operating profit
6
£78.3m
−4.5%
Like-for-like +1.6%
Adjusted result before income tax
7
£50.2m
4.4%
Adjusted basic earnings per share
9
5.2p
2023 4.4p
Share price at 21 March 2025
33.0p
Net debt ratio
1.6x
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Capital plc Annual Report and Accounts 2024 03Our business Strategic Report Sustainability Statement Governance Report Financial statements
Worldwide presence
We’re
always on
A global communications business
forthenew marketing age. Integrated,
agileand responsive.
Company locations
N
et revenue
b
y region
Americas EMEA APAC
Americas
EMEA
APAC
78%
16%
6%
People
7,1 5 0
Countries
33
Offices
48
Unitary structure
1
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Capital plc Annual Report and Accounts 2024 04Our business Strategic Report Sustainability Statement Governance Report Financial statements
We orchestrate marketing to flow
How we solve this
Orchestration Partner
How we solve this
Real-Time Brands
How we solve this
Glass Box Media
How we solve this
Digital business transformation
We orchestrate the fragmented flow of
work across tools, agencies and processes
to improve speed, quality and ensure
brand safety. With a combination of AI
workflow and studio tools, we make more
of the right work, better, faster, cheaper
and more.
By integrating our capabilities in brand-
building creativity, social media and data
we use real time signals across channels
to dynamically adapt creativity to improve
consumer engagement and therefore
brand power.
Monks is a 100% digital media business,
and with significant capability in data and
analytics we take a ‘glass box’ approach
to client media strategy and execution.
The demands for transparency in the
industry will only increase, and we are
wellplaced to benefit from this.
Our Technology Services and Consulting
capabilities enable transformation
in clients via data optimisation and
management, tech stack integration,
digital consumer experiences
and other aspects of harnessing
technological innovation.
Client problem
Remove complexity
Client problem
Increase brand power
Client problem
Media and data transparency
Client problem
Legacy operating and marketing models
Marketing organisations are getting clouded
in complexity due to the increasing amount
of content needed, fragmentation of media
channels and increasing disruption of technology
solutions, while marketing budgets are under
constant pressure.
With fragmented channels and the need to
manage brand communications across social
owned and earned and media paid channels,
it’s harder than ever for brands to stand out
and make consistent connections that build
brand power.
Media is the highest proportion of a client’s
marketing investment – they want to understand
where media runs, why, who saw it and what they
did as a result. This is harder than it needs to be.
Clients need to do their own work better,
fasterand cheaper, but are beholden to legacy
ways of working, and technology debt that they
need to improve returns from.
In an industry that is becoming increasingly complex and outdated, we are a digital first marketing and
technology company that disrupts analogue models by accelerating and automating the way work is done.
One P&L and one
operating model
Data, media, content,
technology and
ESG integrated
Global scale, local relevance,
sustainable impact
AI enabled by Monks.Flow Borderless talent,
diverse perspectives
Technology partnerships,
investor relationships
Our tools
Business model
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Capital plc Annual Report and Accounts 2024 05Our business Strategic Report Sustainability Statement Governance Report Financial statements
Delivering for our clientsDelivering for our clients
Scale and spend
General Motors
As General Motors’ Foundational Agency and global
Orchestration Partner, we bring simplicity, consistency,
scale and cost savings to how content is created through
technology (Adobe), automation (AI) and best-in-class
digitalcreative and craft.
Monks will “bring a modern approach
to real-time, efficient content development”
and “a significant change in the way that
we’re doing business”
Molly Peck
Chief Transformation Officer, General Motors
Speed and relevance
Hatch
By integrating AI workflows into the creative process for
sleep wellness company Hatch, and leveraging Google’s AI
tool Gemini, we produced personalised ad creative at faster
speeds and lower costs than ever before. The entire process
was completed in half the time of a standard campaign,
thanks to AI-powered marketing and a 97% reduction in
costs from legacy approaches. In addition to freeing up
massive resources for creatives and marketers to focus
on areas where the human touch is more critical, the AI-
supported ads outperformed legacy assets, generating 31%
better cost per purchase.
Partnership effectiveness
AWS
The remote broadcast workflow running on our long-term
partner’s platform allowed us to reduce the number of on-site
Monks by 75%, which resulted in avoided carbon emissions
related to air and ground travel. The distributed workflow
also means that directors, producers, video engineers,
audioengineers, replay operators, graphics operators,
videoeditors and even the announcers are able to support
the event remotely, often from the comfort of their homes.
An added benefit to Monks is the ability to now hire based
ontalent rather than geography.
Personalisation at scale
Headspace
We developed a modular ad concept that pairs seasonal
emotional challenges with specific types of resources
available from Headspace, a leading provider of digital
resources for mental health and wellness. Using Monks.
Flow, we combined ad elements – AI-generated
backgrounds, product interface imagery and branded
illustrations and iconography – to produce hundreds of
assets at scale. Production hours would have quickly racked
up in a traditional design process, but with AI-powered
image generation and production, we had assets for 20
distinct use cases ready for approval quickly, and overall
cut production time by two-thirds. The AI-powered ads
converted traffic to signups at a 62% higher rate than the
control, getting mental health resources into more people’s
hands more efficiently.
Ecommerce and
creative optimisation
Diamond Foods
With the rise of ecommerce, Diamond Foods faced new
challenges in capturing online sales. To strengthen their
presence on Amazon and optimise their direct-to-consumer
(DTC) strategy, Diamond Foods partnered with Monks for
expert guidance. The results were substantial growth,
agame-changing strategy, and recognition as the 2024
AdExchanger Best in Commerce Media Award winner.
Analytics and ROI
Starbucks
Over our years-long partnership with Starbucks, wehave
helped the brand develop a system that decodes how
people interact with its loyalty app and its features –
ultimately creating a user experience that nurtures that
strong connection with customers. With an AI engine that
continuously analyses user reviews across multiple markets,
Starbucks can now conduct evidence-based experiments
aimed at boosting customer lifetime value and increasing
adoption of its native apps across EMEA.
Business model continued
S
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Capital plc Annual Report and Accounts 2024 06Our business Strategic Report Sustainability Statement Governance Report Financial statements
Strategic
Report
Letter to shareowners 08
Progress against our strategy 10
Measuring success: Key Performance Indicators 12
Financial review 13
Principal risks and uncertainties 19
Our business Strategic Report Sustainability Statement Governance Report Financial statements S
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Capital plc Annual Report and Accounts 2024 07
Letter to shareowners
We remain confident in our
strategy, business model and talent
Dear shareowner,
As previously highlighted, trading in the year reflected
both continued uncertainty around global macroeconomic
conditions, high interest rates and lower marketing spend
from technology clients, which account for approximately
half of revenue. In addition, there was a reduction in
transformation activity in one of our larger Technology
Services clients. However, trading in the fourth quarter
improved over the first three quarters with stronger
like-for-like net revenues, including an increase in
Data&Digital Media.
Reported billings were £1,963.0 million up 4.9% and
up 8.1% like-for-like, reflecting stronger digital media
planning and buying activity. Revenue was down 16.1% on
a reported basis to £848.2 million, down 13.6% like-for-like.
Reported net revenue declined 13.6%, or 11.0% like-for-like.
Operational EBITDA in the full year reflects improvement in
margins in Content and Data&Digital Media, due to actions
taken on costs, helped by stronger revenue performance
in the fourth quarter, whilst Technology Services’
operational EBITDA reflects the anticipated lower revenue.
We continue to maintain a disciplined and active approach
to cost management, including the number of Monks and
discretionary costs. The number of Monks at the end of the
year was around 7,150 down 7.0% from over 7,700 at this
time last year.
The Group currently reports in three practices. We have
rebranded to Monks and are now streamlining all our
current capabilities into two practices: Marketing Services
and Technology Services. We plan to initiate reporting
structures for this new services model during 2025.
Content’s net revenue declined in the year reflecting ongoing
caution and lower activity with some of our larger technology
clients. However, the year-on-year trend improved in the
fourth quarter. Content’s operational EBITDA improved to
£48.7 million (2023: £38.9 million), up 30.6% like-for-like
and on a reported basis up 25.2% versus 2023, due to
the action taken on costs. Content’s operational EBITDA
margin improved 290 basis points like-for-like and reported
280 basis points compared to 7.4% in 2023.
Data&Digital Media performed as expected in the year,
managing its costs well to match activity levels. Net revenue
grew in the fourth quarter. Operational EBITDA improved
to £46.0 million (2023: £33.5 million), up 43.3% like-
for-like and up 37.3% versus 2023 on a reported basis.
Operational EBITDA margin of 23.9% improved 780 basis
points like-for-like and reported 770 basis points, compared
to 16.2% in 2023, due to strong action on costs.
Technology Services performance was impacted by the
anticipated lower revenue from one key client, as well
as longer sales cycles for new business reflecting the
challenging ongoing macroeconomic conditions and high
interest rates. Reported operational EBITDA was down
significantly to £11.5 million (2023: £43.4 million) and
operational EBITDA margin was 13.3%, compared to
31.7% in 2023 due to the lower revenues.
On a like-for-like basis, the Americas net revenue was
down 11.8%, but with strong growth in Latin America and
now accounts for 78% of the Group’s net revenue. EMEA,
accounting for 16%, was down 5.4%, with growth in the UK
& Ireland. Asia Pacific (APAC), accounting for the remaining
6% was down 13.4%, affected by Australia and Singapore.
“Our new go-to-market
propositions are resonating
strongly with clients”
Sir Martin Sorrell
Executive Chairman
Executive Chairman
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Capital plc Annual Report and Accounts 2024 08Our business Strategic Report Sustainability Statement Governance Report Financial statements
Letter to shareowners continued
Reported Americas net revenue was £587.9 million, down
14.6%, EMEA net revenue was £123.4 million, down 7.3%
and Asia Pacific was £43.3 million, down 16.7%.
The Group has taken a non-cash impairment charge net
of tax of £280.4 million reflecting trading conditions in
the second half of 2024 and the medium-term outlook
following the completion of our budget and three year
planning process. The amount is included in adjusting
itemsafter tax.
We are seeing our AI initiatives improve visualisation
and copywriting productivity, deliver considerably more
effective and economic hyper-personalisation (better
targeted content at greater scale), delivering more
automated and integrated media planning and buying,
improving general client and agency efficiency and
democratisation of knowledge. Monks.Flow is our AI
product solution that automates marketing workflows
and we are continuing to add applications and expand its
capabilities. Our end-to-end suite of Monks.Flow products
orchestrates and helps enable our clients to more easily
implement AI solutions, particularly in visualisation and
copywriting, in hyper-personalisation at scale, in real time
focus groups and linking media planning and buying.
We are seeing significant opportunities for new business,
particularly driven by our AI tools and capability.
New business wins in the year include General Motors,
as their foundational agency, Qiddiya, Marriott, Burger
King, Panasonic, FanDuel, AliExpress, Decathlon,
Santander, SCJohnson, ICBC, Asana, CashApp, Shopify,
Courseraand Singapore Sports Hub. We are also winning
multiple exploratory assignments, as clients experiment
and explore AI applications and develop AI use cases.
AI capability is becoming more central to the agency’s
wayof working and new business efforts. In this regard
the Group’s early adoption of AI and proactive approach
tostafftraining on AI is beginning to pay off.
Our three new Go-To-Market propositions, Orchestration
Partner, Real-Time Brands and Glass Box Media are all
starting to resonate strongly with clients. These are built
around hyper-personalisation at scale, social media,
brandstrategy and transparent media buying and planning.
Environmental, Social and Governance
(ESG)strategy
We remain committed to the pillars of our ESG strategy:
people fulfilment, our responsibility to the world and
one brand. We continue to focus on improving our
external reporting, our reporting tools and governance
to help us move towards increased transparency and
effective reporting and to comply with future global
regulatory requirements.
Across the Group, we support community and charity
services through donation of hours and we’ve grown our
total For Good projects to help create a positive impact
alongside our commercial clients. We remain focused on
our people and their experiences through our robust suite
of programmes that enhance connection and development
across the organisation. Cultivating a deeper understanding
of cultural fluency remains a top priority as we continue to
foster an inclusive environment.
We continue to enjoy our B Corp status. This certification
recognises our achievements in governance and
accountability, environmental performance, social impact
and DE&I, that we are accountable to all stakeholders,
not just shareowners and that we are transparent in
our reporting.
Summary and outlook
For the Group as a whole, given the wider market
uncertainty and the priority shown by technology clients
to AI-related capital expenditure rather than operational
expenditure, such as marketing, we target net revenue and
operational EBITDA to be broadly similar to 2024. We will
continue to focus on our cost base and will take further
action to support profitability. We expect the comparatives
for the first quarter to continue to be difficult, in part due
to the residual effect of the reduction in revenue from one
key client in Technology Services. We expect an improved
performance in the second half of the year, aided by the
phasing of revenue from new business.
Our targeted range for the year end net debt is £100 million
to £140 million. We target medium term financial leverage
at the lower end of our previous range of around 1.5 times
operational EBITDA. Over the longer term we continue
to expect our growth to outperform our markets and
operational EBITDA margins to return to historic levels of
around 20%.
The strategy of S
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Capital remains the same. The Group’s
unitary, purely digital transformation model, based on first-
party data fuelling the creation, production and distribution
of digital advertising content, distributed by digital media
and built on technology platforms to ensure success and
efficiency, resonates with clients.
We continue to streamline and integrate our businesses,
wehave rebranded to Monks and are focusing all our
current capabilities into two Practices: Marketing Services
and Technology Services. Our tagline ‘faster, better,
cheaper and more’ or ‘speed, quality, value and more’ and
a unitary structure both appeal strongly, even more so in
challenging economic times.
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Capital plc Annual Report and Accounts 2024 09Our business Strategic Report Sustainability Statement Governance Report Financial statements
Progress against our strategy
Clients
Objectives
• Build scaled relationships with enterprise
clients. 20x20 goal: 20 clients with
$20 million annual revenues (‘whoppers’)
• Maintain strong partnerships with
Technology clients
2024 progress
• Integrated client and growth leadership
across whole Group
• Retained nine ‘whopper’ clients
• Largest client win in Monks history
• Industry-leading AI case studies
and awards
• 45% revenue from Technology clients
(2023: 43%)
2025 goals
• Further penetration of existing clients
• Develop more ‘whoppers’
• Strong new business performance
• Broaden client industry sector exposure
• Deliver market-leading AI case studies
• Increase purpose-driven clients
Measurement
• Number of ‘whoppers’
• % revenue by industry sector
Read more on page 6
Revenue growth
Objective
• Outpace the growth of the addressable
digital markets
2024 progress
• Net revenue declined 11.0% on a
like-for-like basis
2025 goals
• Achieve 2025 like-for-like growth target in
line with guidance
Measurement
• Broadly similar net revenue
Margin
Objective
• Improve margin, long-term target of around
20% operational EBITDA margin
2024 progress
• Operational EBITDA margin up 120bps on a
like-for-like basis
• Reduction in headcount and
operational costs
2025 goals
• Achieve 2025 operational EBITDA
margin target
• Improve productivity (utilisation
and billability)
Measurement
• Operational EBITDA margin
• Utilisation and billability rates
Net debt
Objective
• Achieve net debt target of 1.5 times
operational EBITDA
2024 progress
• Reduced net debt from £180.8 million
(1.9x operational EBITDA) to £142.9 million
(1.6x operational EBITDA)
2025 goals
• Achieve 2025 net debt target
Measurement
• Net debt/pro-forma operational
EBITDA ratio
Read more on pages 13 to 18 Read more on pages 13 to 18 Read more on pages 13 to 18
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Capital plc Annual Report and Accounts 2024 10Our business Strategic Report Sustainability Statement Governance Report Financial statements
Progress against our strategy continued
Integration
Objective
• Unitary structure
2024 progress
• Simplified structure, merging Content and
Data&Digital Media practices under single
leadership team
• Unified client and growth teams
• Released integrated Go To Market
propositions to drive growth
• Improved system integration, data quality
and connectivity
• Kicked off single global ERP
system implementation
2025 goals
• Further collaboration between practices
for existing and new clients
• Continued progress with implementation
of single ERP system
• Continued focus on optimising the real
estate portfolio
Measurement
• % of cross-practice clients
Read more on page 92
People
Objective
• Attract, retain and develop the best talent
in the industry
2024 progress
• Controlled headcount in alignment with
revenue and operational EBITDA across all
three practices
• Increased utilisation of Workday to
implement talent management
• Successfully deployed Accelerate.
Monks middle management programme,
reachingover 800 applicants globally
• Successfully launched the What’s
Happening Now podcast, Motif and
Executive Leadership team meetings
2025 goals
• Integrate merit and bonus cycle process
and implementation across Marketing
Service and Technology Services
via Workday
• Ongoing adoption of growth conversation
model in Workday
• Expand the impact and alignment of
training to key business priorities inclusive
of AI tooling.
Measurement
• Growth conversations and merit cycle
Culture
Objective
• Build a diverse culture and increase
diverse representation
2024 progress
• Ran our fourth S
4
Women in Leadership
programme at Berkeley University
• Recruited five Fellows for S
4
Fellowship programme
• Continued the democratisation of culture
through decentralising DE&I impacts and
empowering country HR teams to execute
in partnership with interested employees
2025 goals
• Expand the reach of culture through
localised initiatives
• Host fifth cohort of S
4
Women
in Leadership
• Recruit sixth cohort of S
4
Fellowship
Measurement
• Successful continuation of flagship
S
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programming and one global
cultural initiative
Sustainability
Objective
• Net zero by 2040 (The Climate Pledge)
2024 progress
• Continued on our path towards net zero
by 2040
• SBTi targets formally approved in 2024
• Global B Corp certification received
in 2024
• Double Materiality Assessment undertaken
in preparation for Corporate Sustainability
Reporting Directive (CSRD)
• Improved EcoVadis score
2025 goals
• Formalise and execute SBTi transition plan
on emission reduction targets to be net zero
by 2040
• Continue to make good progress on
sustainable procurement measures
and policies
Measurement
• Carbon output reduction in line with our
SBTi transition plan
• Increase purpose-driven clients and
For Good projects
• Increase use of renewable energy
• Third party accreditation such as EcoVadis,
B Corp
Read more on pages 26 to 56Read more on pages 39 to 42Read more on pages 39 to 42
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Capital plc Annual Report and Accounts 2024 11Our business Strategic Report Sustainability Statement Governance Report Financial statements
Measuring success: Key Performance Indicators
The Group uses a variety of Key
Performance Indicators (KPIs)
to monitor both financial and
non-financial performance.
Where applicable, KPIs are based
on alternative performance
measures
1
to give a consistent
year-on-year comparison.
Note:
1. Further detail on alternative performance measures can be found in the
Appendix to the Annual Report and Accounts on page 164.
Financial Non-financial
Diversity, equity and inclusion
Female
Male
Undeclared
48.6%
47.7%
3.7%
2024 2023
Gender ratios across the Group as at 31 December
2024 and 2023. For further detail on diversity,
equity, inclusion, gender equality and gender pay
gap equality see pages 39 to 42.
Like-for-like net revenue £m
£754.6m
Like-for-like -11.0%
This is more closely aligned to the fees the Group
earns for its services provided to the clients. This is
a key metric used in business when looking at both
Group and practice performance.
2024 754.6
2023 847.4
Like-for-like operational EBITDA
£m
£87.8m
Like-for-like -0.6%
Operational EBITDA is operating profit before
the impact of adjusting items, amortisation of
intangible assets and property, plant and equipment
depreciation. The Group considers this to be an
important measure of Group performance and is
consistent with how the Group is assessed by the
Board and investment community.
2024 87.8
2023 88.3
Like-for-like operational EBITDA margin
11.6%
Like-for-like +120bps
Operational EBITDA margin is operating profit
before the impact of adjusting items, amortisation of
intangible assets and property, plant and equipment
depreciation, as a percentage of net revenue.
2024 11.6%
2023 10.4%
Carbon intensity (tCO
2
e) per employee
2.8 tCO
2
e
2023: 3.3 tCO
2
e
Greenhouse gas emissions for the Group, 2024 vs
2023. For further information see page 33.
Integration
32
out of 34 combinations fully integrated to date
2024 2.8
2023 3.3
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Capital plc Annual Report and Accounts 2024 12Our business Strategic Report Sustainability Statement Governance Report Financial statements
Billings
£1,963.0m
4.9%
Like-for-like
1
8.1%
Revenue
£848.2m
−16.1%
Like-for-like −13.6%
Net revenue
£754.6m
−13.6%
Like-for-like −11.0%
Operational EBITDA
£ 8 7. 8 m
−6.3%
Like-for-like −0.6%
Operational EBITDA margin
11.6%
+90 basis points
Like-for-like
+120 basis points
Adjusted operating profit
£78.3m
−4.5%
Like-for-like +1.6%
Operating loss
−£302.8m
2023 £20.2m profit
Note:
1. Like-for-like is a non-GAAP measure and relates to 2023 being
restated to show the unaudited numbers for the previous year of the
existing and acquired businesses consolidated for the same months
as in 2024 applying currency rates as used in 2024.
In a challenging year
we have displayed resilience
“Alongside reinvigorating
topline growth we have focused
on tight management of costs,
working capital and cash, resulting
in improved margins and lower
netdebt”
Mary Basterfield
Group Chief Financial Officer
Financial review
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Capital plc Annual Report and Accounts 2024 13Our business Strategic Report Sustainability Statement Governance Report Financial statements
Financial review continued
Introduction
2024 saw challenges in our net revenue performance,
however, in addition to the top line we focused on tight
management of costs, aligning headcount more closely with
activity levels and working capital management and cash,
resulting in improved margins and lower net debt. We have
continued our finance transformation and are making good
progress with the roll out of our global finance system,
combining legal entities and integrating the finance team.
Alternative performance measures
Management includes non-GAAP measures in reporting
as they consider these measures to be both useful and
necessary. They are used by management for internal
performance analyses; the presentation of these
measures facilitates comparability with other companies,
althoughmanagements’ measures may not be calculated
in the same way as similarly titled measures reported by
other companies; and these ‘alternative performance
measures’ are useful in connection with discussions with
the investment community.
The Group uses alternative performance measures as
we believe these measures provide additional useful
information on the underlying trend, performance and
position of the Group. These underlying measures are
used by the Group for internal performance analyses,
and credit facility covenants calculations. The alternative
performance measures include ‘adjusted operating
profit’, ‘adjusting items’, ‘adjusted operational EBITDA’
and ‘EBITDA’ (earnings before interest, tax, depreciation).
The terms ‘adjusted operating profit’, ‘adjusting items’,
‘adjusted operational EBITDA’ and ‘EBITDA’ are not defined
terms under IFRS and may therefore not be comparable
with similarly titled profit measures reported by other
companies. The measures are not intended to be a
substitute for, or superior to, GAAP measures. A full list of
alternative performance measures and non-IFRS measures
together with reconciliations to IFRS measures are set out
in the Appendix to the Annual Report and Accounts on
page 164.
Financial summary
Reported billings
1
were £1,963.0 million, up 4.9% and up
8.1% like-for-like
2
and pro-forma
3
, reflecting stronger digital
media planning and buying activity. Controlled billings
4
,
that is billings we influenced, wereapproximately
£5,217.6 million (2023: £5,022.8 million).
Reported revenue was £848.2 million, down 16.1% from
£1,011.5 million and down 13.6% like-for-like.
Reported net revenue was £754.6 million, down 13.6%
anddown 11.0% like-for-like.
Reported operational earnings before interest, taxes,
depreciation and amortisation (operational EBITDA) was
£87.8 million compared to £93.7 million in the prior year,
down 6.3% on a reported basis and down 0.6% like-for-
like. We have continued to maintain a disciplined and active
approach to cost management, including headcount and
discretionary costs.
These controls have resulted in the number of Monks
at the end of the year being around7,150, down 7.0%
from7,700at this time last year and down 5.1% on the
June2024 figure.
Notes:
1. Billings is gross billings to clients including pass-through costs.
2. Like-for-like is a non-GAAP measure and relates to 2023 being restated to show the unaudited numbers for the previous year of the existing and acquired
businesses consolidated for the same months as in 2024 applying currency rates as used in 2024.
3. Pro-forma numbers relate to unaudited full year non-statutory and non-GAAP consolidated results in constant currency as if the Group had existed in full for
the year and have been prepared under comparable GAAP with no consolidation eliminations in the pre-acquisition period.
4. Controlled billings is billings we influenced in addition to billings that flowed through the consolidated statement of profit or loss.
5. The comparatives as at 31 December 2023 and 31 December 2022 have been restated to account for the recognition of deferred tax balances related to
certain business combinations in prior years.
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Capital plc Annual Report and Accounts 2024 14Our business Strategic Report Sustainability Statement Governance Report
Financial statements
Operational EBITDA margin was 11.6%, up 90 basis points
versus 10.7% in 2023 and up 120 basis points like-for-like
with improved profitability in Content and Data&Digital
Media and lower central costs, although these were
partly offset by the anticipated reduction in delivery from
Technology Services. Our ambition remains to return full
year margins to historic levels, around 20%, over the
longer term.
Reported adjusted operating profit was down 4.5% to
£78.3 million from £82.0 million, before adjusting items of
£381.1 million (2023: £61.3 million), including £18.8 million
of restructuring costs, a similar level to 2023. The increase
in adjusting items is largely due to the non-cash impairment
charge taken in the year. Adjusting items also includes
amortisation of business combination intangible assets,
restructuring, primarily related to headcount reductions,
contingent consideration, share-based payments and lease
impairment charges relating to property rationalisation.
The Group has completed its annual budget and three-
year planning process, which has been used for the
annual impairment review. The Group has taken a non-
cash impairment charge net of tax of £280.4 million,
with£196.5 million in Content and £83.9 million in
Technology Services, reflecting trading conditions in the
second half of 2024 and the subsequent medium-term
outlook following the completion of our budget and three
year planning process. This is included in adjusting items.
No impairment was recognised in the year for Data&Digital
Media, howeverthere was minimal headroom in the
impairment modelling. More detail on the impairment review
can be found in Note 10 of the financial statements.
The reported operating loss was £302.8 million versus
a profit of £20.2 million in 2023, primarily reflecting
an increase in adjusting items with the non-cash
impairment charge. Loss for the year was £306.9 million
(2023: £14.3 million
5
).
Adjusted basic earnings per share was 5.2p, versus
adjusted basic earnings per share of 4.4p
5
in 2023,
up18.2%. Basic loss per share was 45.7p (2023: 2.2p
5
).
Financial review continued
1,963.0
Billings £m
2
024
1,890.5
2
022
1,870.5
2
023
11.6
Operational EBITDA margin %
2
024
13.9
2
022
10.7
2
023
848.2
Revenue £m
2
024
1,069.5
2
022
1,011.5
2
023
78.3
Adjusted operating profit £m
2
024
114.1
2
022
82.0
2
023
754.6
Net revenue £m
2
024
891.7
2
022
873.2
2
023
87.8
Operational EBITDA £m
2
024
124.2
2
022
93.7
2
023
Operational EBITDA and margin £m/%
£
125.0
£
100.0
£
75.0
£5
0.0
£
25.0
£
0.0
30
%
25
%
20
%
15
%
10
%
5
%
0
%
FY 2021 FY 2022 FY 2023 FY 2024
Profit % margin
£
150.0
£101.0
18.0%
13.9%
£124.2
£93.7
10.7%
£87.8
11.6%
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Capital plc Annual Report and Accounts 2024 15Our business Strategic Report Sustainability Statement Governance Report Financial statements
Practice performance
Content practice’s reported net revenue was down 10.1%
and down 7.4% like-for-like and reported operational
EBITDA was £48.7 million, up 25.2% versus 2023 and up
30.6% like-for-like. Content practice’s operational EBITDA
margin improved to 10.2%, compared to 7.4% in 2023,
despite the lower revenue, reflecting a reduction in the
number of Monks and other cost savings as compared to
2023. We continue to focus on integration and improving
the operating model for Content.
Data&Digital Media practice’s reported net revenue was
down 7.2% and down 3.7% like-for-like and reported
operational EBITDA was £46.0 million, up 37.3% from
the last year and up 43.3% like-for-like. Data&Digital
Media practice’s operational EBITDA margin was 23.9%,
compared to 16.2%, due to tight cost management
in 2024 and cost reduction actions taken in the latter
monthsof 2023.
Technology Services practice’s reported net revenue
was down 36.7% and down 35.3% like-for-like.
Reported operational EBITDA of £11.5 million was down
73.5% from the prior year, down 71.8% like-for-like
and delivered an operational EBITDA margin of13.3%
compared to 31.7% in 2023. This primarily relates to
the reduction in transformation revenue from one large
client, as well as longer sales cycles for new business.
Operational EBITDA was significantly impacted by the
reduction in revenue and, given the scale of the reduction
inrevenue, this has impacted margin.
Reported central costs of £18.4 million were down 16.7%
due to tight cost control.
Financial review continued
Net revenue split by practice %
Content 63.0
%
DDM 25.5
%
TS
11.5%
Performance by practice
2024
£m
2023
£m Lfl YOY
Net revenue 754.6 873.2 (11.0%)
Content 475.5 528.9 ( 7.4%)
Data&Digital Media 192.4 207.3 (3.7%)
Technology Services 86.7 137.0 (35.3%)
Operational EBITDA 87.8 93.7 (0.6%)
Content 48.7 38.9 30.6%
Data&Digital Media 46.0 33.5 43.3%
Technology Services 11.5 43.4 (71.8%)
Central (18.4) (22.1) (16.0%)
Operational EBITDA margin 11.6% 10.7% 120bps
Content 10.2% 7.4% 290bps
Data&Digital Media 23.9% 16.2% 780bps
Technology Services 13.3% 31.7% (1,710bps)
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Capital plc Annual Report and Accounts 2024 16Our business Strategic Report Sustainability Statement Governance Report Financial statements
Financial review continued
“Free cash flow for 2024
was £37.8 million, an increase
of £24.0 million compared
to2023”
Net revenue split by region%
Americas 77.9
%
EMEA 16.4
%
APAC 5.7
%
Geographic performance
The Americas reported net revenue was £587.9 million
(78% of total), down 14.6% from last year. Like-for-like,
theAmericas net revenue was down 11.8%, reflecting lower
revenue from one large Technology Services client and
continuing client caution particularly with our technology
clients. We saw strong growth in Latin America, reflecting
success with our local business.
EMEA reported net revenue was £123.4 million (16%
of total), down 7.3% from last year. Like-for-like, EMEA
net revenue was down 5.4%, strengthened by the UK’s
performance, but primarily reflecting slower growth and
client caution.
APAC reported net revenue was £43.3 million (6% of
total), down 16.7%. Like-for-like APAC net revenue was
down 13.4%, affected by Australia and Singapore, but also
reflecting client caution and local market conditions.
Cash flow
Year ending
31 December
2024
£m
Year ending
31 December
2023
£m
Operational EBITDA 87.8 93.7
Capital expenditure
1
(7.5) (10.2)
Interest and facility fees paid (2 9.1) (26.7)
Interest received 2.1 –
Income tax paid (9.0) (20.5)
Restructuring and other one-off
expenses paid (21.1) (20.8)
Change in working capital
2
14.6 (1.7)
Free cash flow 37.8 13.8
Mergers & Acquisitions (9.9) (80.8)
Other
3
10.0 (3.6)
Movement in net debt 37.9 (70.6)
Opening net debt (180.8) (110. 2)
Net debt (142.9) (180.8)
Notes:
1. Includes purchase of intangible assets, purchase of property, plant and
equipment and security deposits.
2. Working capital primarily includes movement on receivables, payables,
principal elements of lease payments and depreciation of right-of-
use assets.
3. Other includes foreign exchange, hyperinflation impacts and share
buy-backs.
Free cash flow for 2024 was £37.8 million, an improvement
of £24.0 million compared to 2023, with a working capital
inflow and lower cash tax paid, partially offset by modestly
increased cash interest costs. Cash paid in relation to
business combinations (M&A) decreased £70.9 million
versus the prior year to £9.9 million, as we materially
completed payments for prior year combinations early
inthe year.
-11.8%
Net revenue growth by region, like-for-like %
A
mericas
2024 2023
-5.4%
E
MEA
-13.4%
A
PAC
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Capital plc Annual Report and Accounts 2024 17Our business Strategic Report Sustainability Statement Governance Report Financial statements
Treasury and net debt
The year end net debt was £142.9 million
(2023: £180.8 million) or 1.6x net debt/pro-forma
operational EBITDA. During the year S
4
Capital Group
(as defined in its facilities agreement) complied with the
covenants set in that agreement, that S
4
Capital Group
will ensure that the net debt will not exceed 4.5:1 of the
pro-forma earnings before interest, tax, depreciation,
andamortisation, measured at the end of any relevant
period of 12 months ending each semi-annual date in a
financial year, as defined in the facility agreement. The pro-
forma operational EBITDA for the year was £87.8 million.
As at 31 December 2024, the net debt/pro-forma EBITDA,
asdefined by the facilities agreement, was 1.7x.
The balance sheet has sufficient liquidity and long
dated debt maturities. The duration of the 2021 facilities
agreement is seven years in relation to the Term Loan B,
therefore the termination date is August 2028 and five
years in relation to the RCF, therefore the termination date
was August 2026. Post year end, £80 million of the RCF
facility has been extended to February 2028, withallfour
relationship banks extending on the same terms, withthe
remaining £20 million terminating in August 2026.
The RCFremains undrawn as at 31 December 2024.
Net debt reconciliation
2024
£m
2023
£m
Cash and bank 168.4 145.7
Loans (311.3) (326.5)
Net debt (142.9) (180.8)
Lease liabilities (42.5) (49.0)
Net debt including lease liabilities (185.4) (229.8)
Interest and tax
Consolidated statement of profit or loss net financing costs
were £26.4 million (2023: £35.4 million), a decrease of
£9.0 million due to favourable exchange rates in the year.
The profit or loss tax credit for the year was £24.0 million
(2023
5
: £0.4 million expense).
Balance sheet
Overall the Group reported net assets of £577.5 million as
at 31 December 2024, which is a decrease of £314.4 million
compared to 31 December 2023
5
, driven mainly by the
impairment to goodwill and intangible assets recognised
during the year.
Acquisitions
There were no material acquisitions completed
during 2024.
Outlook/guidance
We expect clients to remain cautious in the near term,
asthere are increasing concerns about macro uncertainty
and the impact of tariffs. Technology clients continue
to focus spending on AI-related capital expenditure,
rather than operating expenditure, such as marketing.
However,inTechnology Services we expect the growth
headwind from one key client to continue in the first half
with an improving trajectory in the second half supported
bynew business.
For the Group as a whole, we are targeting both net
revenue and operational EBITDA to be broadly similar to
2024. We expect the comparatives for the first quarter to
continue to be difficult, in part due to the residual effect of
the reduction in revenue from one key client in Technology
Services. We expect an improved performance in the
second half of the year, aided by the phasing of revenue
from new business.
Our net debt is expected to continue to reduce in 2025
reflecting positive free cash flow, which in 2024 was
£37.8 million. Our targeted range for the year end is
£100 million to £140 million. We now aim for financial
leverage over the medium term of around 1.5 times net
debt to operational EBITDA, which is the lower end of
our previous target range. As a measure of confidence in
the future the Board is proposing to pay a dividend of 1p
per share.
Over the longer term we continue to expect our growth to
outperform our markets and operational EBITDA margins
toreturn to historic levels of around 20%.
Financial review continued
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Capital plc Annual Report and Accounts 2024 18Our business Strategic Report Sustainability Statement Governance Report Financial statements
Principal risks and uncertainties
We believe that effective risk
management is important to
support the financial strength
andresilience of the Group and
fordelivering its business strategy.
As part of the Group’s strategy to enhance its resilience
and seek to deliver long-term growth, the Head of Risks
created an Enterprise Risk Management (ERM) framework
in 2023, which has been adopted at a Group level, and is
used across the global organisation. The framework is used
to inform the Board of the key risks, using both a ‘top down’
and ‘bottom up’ approach to provide a holistic view of the
key operational, financial, commercial and strategic risks
facing the business.
The Board has ultimate responsibility for the Group’s
approach to risk management and internal control.
On behalf of the Board, the Audit and Risk Committee
oversees risk management for the Group. Both the
Audit and Risk Committee and Board have reviewed and
approved the Group’s principal risks. In addition, each
principal risk has a senior leader owning it, who is also
responsible for documenting the corresponding risk
response plan, which is submitted to the Head of Risks
forreview and monitoring.
Risks
The principal risks and uncertainties that the Board believes
could have a significant impact on the Group are set out
on pages 20 to 22. Other, less material risks (including
emerging risks) are monitored by the Head of Risks and
discussed at the Audit and Risk Committee or other
appropriate internal forums.
Likelihood
Impact
1
2
3
4
5
8
9
7
6
10
Risk description
1
Macroeconomic and geopolitical headwinds could result in
existing clients reducing spend and potentially limiting new
business opportunities.
2
Limits to market visibility and changing client budgets,
combined with a complex internal budgeting and forecasting
process, may create volatility in forecasts and results, which
with a complicated data landscape, could lead to internal
inefficiencies and slow down operational decision making.
3
If there is inadequate management of the talent lifecycle,
from succession planning for key roles, through to personnel
development, or below market salaries, this could result in
talent gaps, high staff turnover or loss of key talent.
4
If the Group’s governance, compliance and ESG structure and
processes are not robust, this could impact compliance with
Corporate Governance regulations or best practice, or not meet
client and investor requirements and expectations.
5
Artificial Intelligence (AI) is a disruptive technology that can
impact the standard commercial models in our industry, as well
as scale up and down the need for specific teams and talent in
the business. AI is also considered to be a business opportunity
as well as a risk, as the Group considers AI to have considerable
upsides to its commercial offering and support processes.
6
If the integration journey to further simplify our structure with
clearer mandates, greater collaboration, efficiencies and
unification is not completed in a timely manner, this could
constrain sustainable and profitable growth.
7
Concentration of clients and suppliers in certain sectors
creates a risk of material financial disruption if there is a sudden
relationship breakdown or contract loss, or more stringent
regulation in certain sectors.
8
Risk of share price volatility if investors’ expectations are not
met through consistent and clear corporate messaging.
9
If there are insufficient controls over Information Security
or Data Privacy, there is a risk of a security breach, non-
compliance with client contracts, or regulatory breach.
10
Increased competitive offerings and low barriers to entry
in the industry may impede new business opportunities or
erode margins.
The key changes and movements in the risks since the prior
year have been as follows:
Risk 1 (Macroeconomic headwinds): The risk wording
was updated to include geopolitics as a trigger of the
macroeconomic risk materialising. This was to recognise
the potential disruption to the global Group from the high
number of global and regional hostilities and potential
conflicts that could interrupt economic activity.
Risk 4 (Governance and compliance): The risk is deemed
to have fallen in likelihood given the work performed
internally on the global roll-out of new policies and training
programmes across a multitude of compliance and
governance areas.
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Capital plc Annual Report and Accounts 2024 19Our business Strategic Report Sustainability Statement Governance Report Financial statements
Principal risks and uncertainties continued
Risk Description Risk response Risk trend
1. Macroeconomic headwinds
Macroeconomic and geopolitical headwinds could
result in existing clients reducing spend and
potentially limiting new business opportunities.
• Strengthening the go-to-market proposition to increase the pipeline of potential ‘Whopper’ and
‘Whoppertunity’ clients.
• Continuing to widen the Group’s client and geographical mix to increase contribution of diverse
regions and sectors beyond technology.
• Business transformation programme to improve profitability, enhance delivery and
increase accountability.
• Improved planning processes for all ‘Whopper’ and ‘Whoppertunity’ clients.
2. Operational decision making and internal efficiencies
Limits to market visibility and changing client
budgets, combined with a complex internal
budgeting and forecasting process, may create
volatility in forecasts and results, which with a
complicated data landscape, could lead to internal
inefficiencies and slow down operational
decisionmaking.
• More detailed analysis being performed of addressable markets, as well as more discussion
of Go-To-Market propositions as part of monthly performance reviews
• Updated internal controls being rolled out to ensure consistent forecasting practices across
the Group.
• Enhanced billability and utilisation reporting being adopted across the Group.
• Formalised accountabilities for delivery between relevant client, growth and operations teams
through regular performance reviews.
3. Talent lifecycle
If there is inadequate management of the talent
lifecycle, from succession planning for key roles,
through to personnel development, or below
market salaries, this could result in talent gaps,
high staff turnover or loss of key talent.
• Single HR platform rolled out to better manage employee performance and administration.
• Board and practice CEOs making final decisions on organisational structures and ensuring
appropriate budgeting matches for pay and performance.
• Review of incentive schemes to retain key talent.
• Increased DE&I forums and mental health support for employees.
Risk 5 (Artificial intelligence): The commercial risks
associated with the widespread increasing adoption of
AI by both competitors and clients creates an enhanced
risk of disruption to the execution of the Monks strategy,
althoughthe focus continues to be on the considerable
opportunities and upsides of the Group’s early and market-
leading adoption of AI technologies.
Risk 6 (Business transformation): Following the
announcement in the middle of 2024 of the Group’s
move from three practices to two under new branding,
the integration risk has been reassessed and updated to
reflect the evolution away from integration of acquisitions,
to transforming and streamlining the business under the
unification process.
Risk 7 (Client concentration): Revenue continues to be
concentrated in the Group’s largest clients, and the
upweighting of the risk reflects the potential effect on
the Group’s performance if there is a sudden loss of a
key client. The wording of the risk has also been updated
to reflect regulatory challenges some clients may face,
suchas advertising restrictions in some sectors.
S
4
Capital plc Annual Report and Accounts 2024 20Our business Strategic Report Sustainability Statement Governance Report Financial statements
Risk Description Risk response Risk trend
4. Governance and compliance
If the Group’s governance, compliance and ESG
structure and processes are not robust, this could
impact compliance with Corporate Governance
regulations or best practice, or not meet client
andinvestor requirements and expectations.
• Compliance framework has been updated with a more formalised annual training schedule to be
rolled out for all staff.
• Updated minimum control set being established to comply with the updated Corporate Governance
Code and formalise the link between risks and controls.
• ESG SteerCo established to meet regulatory requirements and create formalised accountabilities for
delivery of agenda.
• Annual policy reviews formalised with appropriate oversight and review on an annual basis for
key policies.
• A Governance Framework has been established and is being rolled out to strengthen the Group in
meeting its obligations.
5. Artificial intelligence (AI)
Artificial Intelligence is a disruptive technology that
can impact the standard commercial models in our
industry, as well as scale up and down the need for
specific teams and talent in the business. AI is also
considered to be a business opportunity as well
asa risk, as the Group considers AI to have
considerable upsides to its commercial offering
and support processes.
• Investment in flagship Monks.Flow product that aligns marketers with AI and is being rolled out with
new and existing clients.
• Weekly calls on the use of AI across all teams and functions of the business to embed its use on
workflow and showcase successes.
• Ongoing training and enablement programmes on use of AI.
• Continuing to forge strong relationships with key technology companies on utilisation and execution
of AI tools.
6. Business transformation
If the integration journey to further simplify
ourstructure with clearer mandates, greater
collaboration, efficiencies and unification is not
completed in a timely manner, this could constrain
sustainable and profitable growth.
• One Monks Integration Program to streamline the organisation to create greater accountabilities.
• Creating a single set of rules and categories under a single platform to track utilisation and billability,
and support better margin management and resource allocation.
• Rationalising the number of tools for improved efficiency and consistency of business information
and data.
• Establishing new business processes to improve pricing strategies and have an improved view
of margins.
Principal risks and uncertainties continued
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Capital plc Annual Report and Accounts 2024 21Our business Strategic Report Sustainability Statement Governance Report Financial statements
Risk Description Risk response Risk trend
7. Key customers
Concentration of clients and suppliers in certain
sectors creates a risk of material financial
disruption if there is a sudden relationship
breakdown or contract loss, or more stringent
regulation in certain sectors.
• Enhanced Go-To-Market proposition launched publicly to streamline and clarify the Group’s
client offering.
• ‘Whopper’ Strategy of increasing the number of $20 million+ revenue clients, to reduce
concentration risk.
• Ongoing market offering that differentiates the Group against competitors.
8. Reputation risk
Risk of share price volatility if investors’
expectations are not met through consistent
andclear corporate messaging.
• Regular communication with investors and analysts through roadshows and conferences.
• Rolling out of updated Communications Guidelines to ensure responsible and consistent messaging.
• Use of trusted third parties to assist with timing and consistency of messaging.
9. Information security and data privacy
If there are insufficient controls over Information
Security or Data Privacy, there is a risk of a security
breach, non-compliance with client contracts,
orregulatory breach.
• Ongoing compulsory all-employee training on significant information security (‘Infosec’) and
Privacy topics.
• Ongoing ISO 27001 certification programme being executed in key offices.
• Security controls deployed in critical products including Monks.Flow.
• InfoSec compliance assessments being conducted for scaled clients, with improvement plans
rolledout for relevant areas of enhancement.
• Privacy Champions network created to embed privacy best practice in the business.
• Business capabilities recording of processing activities in all practices and Monks.Flow.
• Increasing incorporation of Privacy by Design into business processes.
10. Competitive environment
Increased competitive offerings and low barriers
toentry in the industry may impede new business
opportunities or erode margins.
• Evolution of the Group’s service offering, ensuring that it is leading edge. Current focus is on
Metaverse, and most importantly, AI.
• Three-year strategic planning process to identify opportunities and risks.
• Ongoing investment in talent and technological tools to enhance the Group’s differentiated offering.
Principal risks and uncertainties continued
S
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Capital plc Annual Report and Accounts 2024 22Our business Strategic Report Sustainability Statement Governance Report Financial statements
Viability Statement
In accordance with Provision 31 of the UK Corporate
Governance Code 2018, the Board of Directors of S
4
Capital Group (‘the Group’) has assessed the prospects
and viability of the Group over a period of three years
from 1 January 2025. The three-year period has been
chosen as it aligns with the Group’s strategic planning
cycle, the rapidly changing landscape in the marketing
and advertising industry, and the time horizon typically
employed for the assessment of industry-specific risks
and uncertainties.
The selection of a three-year period also allows the
Group to balance short-term responsiveness with long-
term strategic planning, reflecting our focus on agility,
adaptability, and innovation. This period is deemed
appropriate considering the following factors:
1. Industry dynamics: The marketing and advertising
industry is characterised by rapid technological
advancements (including the impact of AI), evolving
consumer preferences, and the need for constant
innovation. A three-year period allows the Group to
monitor and adapt to these changes while maintaining
a forward-looking perspective on future opportunities
and challenges.
2. Competitive landscape: Given the fast-paced nature of
the industry, it is essential for the Group to maintain a
competitive advantage by anticipating and responding
to emerging trends and client demands. A three-year
period is suitable for assessing our competitive position
and developing strategies to maintain and strengthen
our market share.
3. Environmental risks: The Group recognises the
importance of addressing environmental risks, including
climate change and resource scarcity. A three-year
period allows the Group to assess and manage the
potential impact of these risks on its operations and
implement measures to minimise any adverse effects.
4. Financial resilience: A three-year period aligns with the
Group’s budgeting and forecasting cycle, enabling the
Board to evaluate the financial resilience of the business
while considering potential risks and uncertainties.
The Board has set the strategy for the Group within the
digital marketing and advertising sector, considering key
factors such as market dynamics, competitive landscape,
technological developments, regulatory environment
and the Group’s financial resilience. The Board has also
reviewed the Group’s risk management framework,
whichidentifies, evaluates, and mitigates significant risks
tothe business, including both internal and external factors,
with particular attention to environmental risks.
Key assumptions underpinning the viability assessment
include the following:
1. Sustainable revenue growth driven by the increasing
demand for digital marketing and advertising solutions
and our ability to respond effectively to industry trends.
2. Successful integration and synergy realisation from
strategic mergers and acquisitions, further enhancing
our service offerings and expanding our global footprint.
3. Adherence to a disciplined financial strategy, focusing on
maintaining a prudent level of debt and ensuring access
to adequate sources of funding.
4. Compliance with relevant laws and regulations,
as well as our commitment to upholding the standards
ofcorporate governance.
5. Effective management of key risks, including
economic, operational, environmental and reputational
risks, through the implementation of robust
mitigation strategies.
The Board of Directors has performed a robust assessment
of the principal and emerging risks and uncertainties that
could threaten the business model, future performance,
solvency or liquidity of the Group. The assessment includes
an evaluation of the Group’s resilience to these threats
in severe but plausible scenarios. The principal risks
and uncertainties that the Board believes could have a
significant adverse impact on the Group’s business are set
out on pages 20 to 22.
In the downside scenario, the Group models a considerable
decline in demand during 2025 and 2026, resulting in a
significant 10% reduction in net revenue along with a 6%
reduction in operating costs when compared to the Board-
approved three-year plan forecasts.
The results of our stress test in the downside scenario
indicate that the Group maintains adequate liquidity
throughout the evaluation period without breaking any
existing debt covenants, demonstrating resilience under
these challenging conditions.
Principal risks and uncertainties continued
S
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Capital plc Annual Report and Accounts 2024 23Our business Strategic Report Sustainability Statement Governance Report Financial statements
The Board can leverage a variety of potential mitigating
actions to control costs and manage cash flow.
A combination of the following mitigating actions (all of
which would be fully under the Group’s control) could be
leveraged to achieve over and above the level of operating
cost reductions assumed in the downside scenario,
if required:
1. Workforce planning: Review the Group’s workforce and
implement measures to optimise resource allocation,
including potential hiring freezes, voluntary redundancy
programmes, or reskilling initiatives.
2. Cost reduction: Identify and implement cost-saving
measures across the organisation, including further
potential reductions in discretionary spending and
operational efficiency improvements.
3. Portfolio optimisation: Re-evaluate the Group’s
product and service offerings to focus on high-
margin, high-demand areas, while discontinuing
underperforming orlow-margin products and services.
4. Financial management: Review the Group’s financial
position and explore options for restructuring its debt,
such as renegotiating loan terms, refinancing existing
debt, or securing alternative sources of financing.
In addition to the mitigating actions outlined above, the
Group has access to a fully undrawn Revolving Credit
Facility (RCF) of £100 million which matures in August 2026
with £80 million extended until February 2028. This facility
serves as an additional financial resource that can be
utilised to manage liquidity, support operational stability,
and address any unforeseen challenges or opportunities
that may arise during the assessment period.
Based on the outcome of this comprehensive assessment,
the Board has a reasonable expectation that S
4
Capital
plc Group will be able to continue in operation and meet
its liabilities as they fall due over the three-year period
of assessment. The Board acknowledges that there are
inherent uncertainties in any forward-looking analysis,
and therefore, it will continue to monitor and update the
Group’s risk management framework and business strategy
as needed.
The Strategic Report on pages 7 to 24 was approved by
theBoard of Directors on 23 March 2025 and signed
on its behalf by:
Sir Martin Sorrell
Executive Chairman
23 March 2025
Mary Basterfield
Group Chief Financial Officer
23 March 2025
Principal risks and uncertainties continued
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Capital plc Annual Report and Accounts 2024 24Our business Strategic Report Sustainability Statement Governance Report Financial statements
3
Sustainability
Statement
Our sustainability commitments 26
Our impact model 28
Materiality assessment and outcome 29
Our Responsibility to the World 30
People Fulfilment 39
Task Force on Climate-Related Financial
Disclosures Report
43
Non-financial and sustainability
informationstatement
51
Section 172(1) statement 52
Our business Strategic Report Sustainability Statement Governance Report Financial statements S
4
Capital plc Annual Report and Accounts 2024 25
“We believe that technology and
creativity can be used as forces for
good. In our industry, we primarily serve
the needs of our clients, but it should
alsobe a consideration whether the
technology and creativity we develop
canbe used in a different environment,
where the outcome is beneficial for the
people and planet”
Regina Romeijn
Global Head of ESG
Navigating change, driving efficiency
As we navigate the complexities of 2024 and the year
ahead, we should acknowledge the shifts impacting
ESG, our people, our industry and the world at large.
The convergence of technological advancements,
geopolitical changes and economic pressures demands
that we accelerate change and act quickly.
This year has marked significant success for the Group
in relation to our ESG efforts. We achieved global B Corp
Certification, underscoring our commitment to balancing
profit with purpose and advancing our ESG initiatives.
In addition, our Science Based Targets initiative (SBTi)
targets were accredited and approved, reinforcing our
commitment to measurable emissions reductions.
The changes in global frameworks and legislation, suchas
the EU’s Corporate Sustainability Reporting Directive
and California’s climate-related laws, show increased
environmental reach and alignment of transparent reporting
globally. We applaud the eventual impact these legislations
will have in speeding up internal data gathering processes
and in requiring transparency on our overall governance.
New legislation introduces new levels of complexity for
robust data gathering and disclosures. This necessitates
continuous efforts to transform and establish a robust
compliance and reporting structure, spanning cross-
functional teams to integrate ESG into our daily operations
in a systematic and controlled manner. But the focus
on legislative readiness and ESG reporting may divert
attention from critical ESG issues or impact, especially as
some political leaders retreat from net-zero commitments.
This increases the risk of further inaction and negative
sentiment around ESG.
Simultaneously, the rapid advancement of AI is reshaping
our ways of working – and our industry. Public awareness
around AI reached a tipping point in 2024. It transformed
our engagement with clients and, as the recognised leaders
in AI, our positioning in the industry. In just one short
year, the brand marketing organisation has become more
complex, making previous playbooks obsolete. Brands now
need real-time engagement and connections moving at the
speed of culture.
That’s where we come in. We help our clients implement
AI in their supply chains to drive consolidation and
unlock significant cost savings, productivity gains and
innovation. And while the industry is adapting to the rapidly
changing talent landscape, we will focus on our talented
people – providing ongoing training, immersing them
in AI technology and related tools, and enhancing their
understanding of governance aspects related to associated
risks, data privacy, security and the appropriate code
of conduct.
Our work over the past few years – and particularly in 2024
– has set our benchmark for the future, with clarity (and,
ofcourse, room for improvement) on where we can amplify
positive impact. With this level of change there is always
something to look forward to.
Our sustainability commitments
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4
Capital plc Annual Report and Accounts 2024 26Our business Strategic Report Sustainability Statement Governance Report Financial statements
Our sustainability commitments continued
Our ESG strategy continues to focus on our pillars of
People Fulfilment, Our Responsibility to the World and
One Brand.
People Fulfilment
We are committed to building a globally decentralised
workforce that embraces diverse perspectives,
skills,thoughts and experiences. We provide our people
with the tools, training and support needed to foster a
culture that allows us to adapt to the changing world.
Our Responsibility to the World
Our overarching sustainability goal is our commitment to
SBTi-approved Greenhouse Gas (GHG) targets, with 2022
as the baseline year for market-based reporting.
In addition to our net zero targets, we are committed to
steadily increasing our renewable energy consumption,
aiming for 100% renewable energy by 2040. Furthermore,
we have set an ambitious goal to transition to a fully
electric vehicle fleet by 2030, reinforcing our dedication to
sustainable operations and carbon reduction. We also aim
to report against the global legal reporting requirements
and frameworks, which will lead to new internal governance
structures, KPIs and processes. In 2024, we implemented
a range of additional internal policies to strengthen ethical
conduct, enhance information security, and improve overall
governance standards across our operations.
We will continue to comply with our client requests to
submit our data to CDP, EcoVadis and UniTier, aimingto
better our score year on year as a result of improved
ESG performance through our people, planet and
governance programmes.
Overall net zero target
Reach net zero GHG emissions across the value chain by
2040
Near-term targets
Reduce absolute Scope 1
and 2 GHG emissions
Reduce absolute Scope 3
GHG emissions
42% 25%
by 2030 from a 2022
base year
1
during the same
timeframe
Long term targets
Reduce absolute Scope 1, 2 and 3 GHG emissions
90%
by 2040 from a 2022 base year
Note:
1. Reduction of near-term target increases by 4.2% each year from
2028 onwards, with an implied reduction in Scope 1 and 2 of
42% by 2030.
Our journey to date
FY21
• First advertising and
marketing firm to
commit to the Amazon
Climate Pledge, with
the aim of net zero
emissions by 2040
FY22
• Inaugural CDP
response, scoring B-
• First Task Force
on Climate-
Related Financial
Disclosures (TCFD)
risk assessment
and disclosures
• Submitted SBTi letter
of commitment
FY23
• Implementation of
GHG software to
develop data quality
and analysis for GHG
• Set formal SBTi
targets and
began work on
Transition Plan
• CDP score of B
FY24
• Global B
Corp Certification
• Received validation of
SBTi target
• ESG SteerCo
established
• TCFD risk assessment
with advanced
physical risk modelling
• Double Materiality
Assessment
undertaken
While our focus on AI and related technologies highlight
new sustainability challenges, it also opens up exciting
opportunities for innovation. This technology fosters
innovation and enhances our ongoing work with and for our
clients, some of whose projects can indirectly contribute to
the United Nations Sustainable Development Goals (SDGs).
We also participate in industry initiatives like
#ChangeTheFace and AdGreen, and our team will continue
to share their insights and engage with our stakeholders on
creativity, technology and the industry moving forward on
global events and media.
One Brand
All these initiatives contribute to a more integrated
approach with ESG as part of our business model,
unifyingour operating model and strengthening our One
Brand execution moving forward under a single P&L.
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Capital plc Annual Report and Accounts 2024 27Our business Strategic Report Sustainability Statement Governance Report Financial statements
Our impact model
People Fulfilment Our Responsibility to the World One Brand
People
7,166 Monks
48.6% women
47.7% men
3.7% undeclared
Resources
48 offices
33 countries
3,911,480 KWh electricity used
Our relationships
Clients
Technology partners
Investors
Input
We empower our people to be a
catalyst for change, in an inclusive,
diverse and creative workplace
We embed integrated sustainable
processes to drive efficiency and
long-term environmental responsibility
across all facets of our business,
ensuring progress toward net
zero operations
We remain economically viable and
invest in our innovations enabling us to
contribute to sustainability challenges
in the long run
We help improve the ESG impact
of our clients – to bring about the
shift in attitudes and behaviour
needed to reach the SDGs
Long-term
value
Offered 76 intern and
associate positions
Continued flagship S
4
programmes
Deployed Accelerate.Monks
management programme, over 800
applicants globally
21.2% absolute emissions (market-
based) reduction YoY
2.8 tCO
2
e per employee
42.1% of electricity is renewable
£848.2 million revenue
£78,136 (0.01% of revenue) donated
to charities and 3,184 voluntary hours
6,872 projects
544 For Good projects
113 Purpose-driven clients
Output
S
4
Capital plc Annual Report and Accounts 2024 28Our business Strategic Report Sustainability Statement Governance Report Financial statements
Materiality assessment and outcome
Since 2019, we have embraced voluntary frameworks like
GRI (Global Reporting Initiative) and SASB (Sustainability
Accounting Standards Board), while complying with the
Sustainability Disclosure Requirements (SDR) mandated by
the Financial Conduct Authority (FCA) in the UK. That year
we conducted our first materiality assessment, asking our
stakeholders: “What should we consider as material when it
comes to our people and planet?”
Over the years, this comprehensive analysis has not only
involved examining our internal expectations and key
sustainability strengths, but has also required us to view
our business through the lens of crucial stakeholders:
ourpeople, investors, clients, suppliers and partners.
We have committed to updating our materiality matrix
annually, based on what our stakeholders deem material,
aswe have done in previous years.
In the future, in accordance with prevailing legislation
and the proposed changes via the Omnibus package,
we fall within the scope of the Corporate Sustainability
Reporting Directive (CSRD). In preparation for this Directive,
theGroup conducted a Double Materiality Assessment
(DMA) in 2024. The assessment followed guidance from
the European Sustainability Reporting Standards (ESRS),
based on relevant financial thresholds, which involved
an analysis of the risks and opportunities affecting our
business and the impacts of our business on stakeholders.
The results of our DMA confirmed that the previously
identified material topics mostly remain relevant to
the Group.
Zero impact workspaces
Sustainable work
People fulfilment
Responsibility to the world: Governance
1 Climate change
2 Working conditions:Mental health & wellbeing
3 Talent development & training
4 Impact work
5 Diversity, equity & inclusion
6 Ethics & responsible business practices
7 Sustainable sourcing
8 Privacy & data protection
9 Sustainable innovation & technology
10 Responsible marketing practices
Our 2024 materiality assessment reflects a strategic shift
in stakeholder priorities, emphasising Climate change
(new number one material topic), Ethics & responsible
business practices, and Mental health & wellbeing.
Climate change, and specifically our net zero commitment,
have become central themes, underscoring the growing
urgency for sustainability matters and emissions reduction.
Additionally,Mental health & wellbeing, and Ethics &
responsible business practices have gained prominence,
reinforcing our commitment to fostering a people-
first culture.
The inclusion of Responsible marketing practices and
Sustainable sourcing highlights increasing expectations
fortransparency, accountability and impact-driven business
solutions. As we move forward, we remain committed
to aligning our strategy with these evolving priorities,
ensuringlong-term value for our stakeholders and the
communities we serve.
8
10
9
Important for external stakeholders Critical
Insignificant
Important for Monks Critica
l
High impact
Compliance
Low impact
4
5
3
2
6
7
1
S
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Capital plc Annual Report and Accounts 2024 29Our business Strategic Report Sustainability Statement Governance Report Financial statements
Our Responsibility to the World: Zero impact workspaces
Zero impact
workspaces
Our emission reduction strategy prioritises actions that
result in energy efficiency, utilising renewable electricity,
and minimising our dependence on fossil fuels across our
global operations. Following the approval of our Science-
Based Targets by the SBTi in 2024, we have made
significant progress towards achieving our long-term goal
of net zero by 2040. Compared to 2023, we achieved
a 21.2% reduction in our total greenhouse gas (GHG)
emissions (market-based).
Results
Scope 1 emissions decreased significantly by 53.2%
across all categories
In 2024, we closed offices known for high gas consumption
and refrigerant leaks, and consolidated offices into
energy-efficient locations. Notably, our reliance on gas has
decreased by 55.3%, while the number of electric vehicles
in our fleet has grown to 80% in 2024, contributing to
a 60% reduction in mobile combustion emissions from
leased company cars.
The availability of electric charging stations at our facilities
in the Netherlands and Germany reduced our reliance on
fuel for our hybrid fleet.
Scope 2 emissions (market-based) increased slightly
by 6.5% year over year
While the percentage of offices utilising renewable energy
remains relatively stable, our overall electricity consumption
rose, leading to a decrease of 290 basis points in renewable
energy as a percentage of our total energy consumption
compared to 2023. Facility consolidation is key to our carbon
reduction action plan and, as noted above, we consolidated
certain locations in 2024. The emissions from the facilities
we have consolidated are included in our Scope 2 emissions
(market-based), however, the full year benefit of the
consolidation will show in 2025.
Usage of district heating increased by 2.2%. Two of our
European offices rely on district heating, although one
was closed in 2024, and an action plan to implement more
energy-efficient methods for the remaining facility is in
development. With the ongoing optimisation of our global
facilities, we anticipate a reduction in Scope 2 emissions in
the years ahead. Since we do not own our facilities, we aim
to switch to renewable energy contracts whenever possible.
We are actively exploring ways to make these types of
switches for both facilities and leased vehicles.
Methodology, collection of data and reporting
Our methodology for GHG emissions reporting has
remained consistent. We continue to follow guidance
provided by the GHG Protocol Corporate Accounting and
Reporting Standard and the Environmental Reporting
Guidelines, including the Streamlined Energy and Carbon
Reporting (SECR) regulations established by the UK in
March 2019 (with updates to the Introduction and Chapters
1, 2). We measure carbon intensity per employee to assess
our environmental impact relative to workforce size.
Utility consumption data is collected for all operational
facilities, including those only partially active during the
reporting year. GHG emissions from electricity consumption
are calculated using both the market-based and location-
based methods to provide a comprehensive look at our
electricity-related emissions and their impact on our
sustainability goals.
Emission factors are sourced from the 2024 International
Energy Agency (IEA) dataset and the UK’s DEFRA 2024
emission factor for generation, transmission, and distribution.
To enhance data accuracy and efficiency, we have integrated
environmental management software into our GHG reporting
framework. Notably, suppliers are providing us with more
actual emissions data, particularly regarding business travel,
which significantly improves the overall quality of our data.
Obtaining actual data from co-working facilities has posed
a challenge, and we have had to employ extrapolation
methods to estimate emissions where actual data is
unavailable. We were able to obtain 100% actual data
forour UK offices.
Our reporting of Scope 3 GHG emissions is consistent
with the GHG Protocol Corporate Value Chain (Scope 3)
Accounting and Reporting Standard, where we identified
six material categories to report on.
Progress against targets
S
cope 1
S
cope 2
S
cope 3
S
cope
1
, 2 & 3
R
enewable
electricity
0 20 40 60 80 100
42%
(2030)
7.3%
64.2%
42%
(2030)
90%
(2040)
100%
(2040)
42.1%
37.2%
Achieved 2022–2024Target
34.9%
25%
(2030)
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Capital plc Annual Report and Accounts 2024 30Our business Strategic Report Sustainability Statement Governance Report Financial statements
Our Responsibility to the World: Zero impact workspaces continued
From (hydroponic) farm
to table in Singapore
At Monks Singapore, the organic hydroponic
vegetable wall farm isn’t just a piece of decor
– it’s a living, breathing symbol of sustainability
and wellbeing. Every week, Monks harvest fresh,
nutrient-rich vegetables and herbs such as kale,
lettuce and mint grown right in the office for our
team to take home. Whether it’s for a crisp salad,
arevitalising juice or a home-cooked meal, this wall
nourishes more than just bodies – it cultivates a
culture of health and conscious living.
Going green
in Noida
Given the high levels of pesticides and chemicals
in most market produce today, our team in Noida,
India, wanted to provide their fellow Monks with a
healthier alternative. Cultivated in small dirt patches
surrounding our office building – and now making
up almost 50% of our entire office area – the Monks
Farm produces organic and seasonal vegetables for
our Monks to enjoy at the office or at home. To lean
into sustainability (and because municipal water is not
always sufficient), we also harvest rainwater.
50%
of our Noida office area is made up by Monks Farm
Scope 3 emissions decreased substantially by 18.3%
in2024 compared to 2023
After conducting an internal assessment, we determined
that our Scope 3 emissions profile – the number of
categories we report on – remained the same year over year,
with six material categories emerging out of a total of 15.
The reductions were observed across all disclosed items,
except for waste generated in our operations. Most cities
in the APAC and LATAM regions lack available data on
operational waste generation, complicating the accuracy
ofsustainability reporting. To address this, our facility teams
globally employ a manual tracking method, estimating
monthly waste based on bag sizes and disposal frequency.
This year, we streamlined this process, resultingin improved
global waste estimations.
The decrease in our Scope 3 emissions can be attributed
to several key factors. A number of our suppliers now
provide actual emissions data, particularly around business
travel, which has improved the quality of our Scope 3 data.
We also saw lower emissions numbers in purchase of goods
and services, which is broadly directly correlated with the
underlying costs of these activities. This was as a result
of the discipline on controlling our overall cost base and is
expected to continue. The breakdown of our hosting usage
revealed a reduction of 34.8%, reflecting our commitment
to creating greener digital products. While measuring
all digital-related activities across our operations is
challenging, our incremental improvements and disciplines
have enabled us to help clients achieve better outcomes
with less cost to the earth. Our refined travel policy
has provided better insights into team travel activities,
fosteringmore efficient travel practices and additional
emissions reductions. A decrease in headcount has also
contributed to lower emissions, reflected in a reduction
inemployee commuting and travel.
These collective efforts underscore our commitment to
sustainability and continuous improvement as we work
towards our net zero 2040 goal.
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Our Responsibility to the World: Zero impact workspaces continued
2024 tCO
2
e emissions per scope
Total Scope 1
1,293
Total Scope 2 (market-based)
1,005
Total Scope 3
17,923
2024 tCO
2
e emissions by category
Natural gas
168
Company leased cars
18
Refrigerant leakages
1,107
District heating & steam
25
Electricity – Grey (market-based)
980
Purchases of goods & services
10,918
Capital goods
1,117
Fuel & energy related activities
299
Waste generated in operations
139
Business travel (land & air)
4,733
Employee commuting
717
2023 tCO
2
e emissions by category
Natural gas
376
Company leased cars
45
Refrigerant leakages
2,343
District heating & steam
22
Electricity – Grey (market-based)
922
Purchases of goods & services
13,987
Capital goods
1,359
Fuel & energy related activities
567
Waste generated in operations
93
Business travel (land & air)
5,169
Employee commuting
771
2023 tCO
2
e emissions per scope
Total Scope 1
2,764
Total Scope 2 (market-based)
944
Total Scope 3
21,946
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Our Responsibility to the World: Zero impact workspaces continued
Emissions profile: Global and UK, 2024 vs 2023
Global 2024 Global 2023
Global % change
2024/2023 UK 2024 UK 2023
UK % change
2024/2023
Employees 7,16 6 7,707 (7.0%) 304 312 (2.6%)
Total tCO
2
e (market-based) 20,221 25,654 (21.2%) 1,235 1,856 (33.4%)
Carbon intensity tCO
2
e per employee 2.8 3.3 (15.2%) 4.1 5.9 (31.7%)
Streamlined energy and carbon reporting: Global and UK operations, 2024 vs 2023
Global gas
consumption 2024
Global gas
consumption 2023
Global gas
consumption %
change 2024/2023
UK gas
consumption 2024
UK gas
consumption 2023
UK gas
consumption %
change 2024/2023
kWh 916,143 2,037,888 (55.0%) 13,043 1,359,285 (99.0%)
kgCO
2
e 167,8 55 375,720 (55.3%) 2,390 251,887 (99.1%)
kWh/Employee 128 264 (51.6%) 43 4,357 (99.0%)
kgCO
2
e/Employee 23 49 (52.2%) 8 807 (99.0%)
Global electricity
consumption 2024
Global electricity
consumption 2023
Global electricity
consumption %
change 2024/2023
UK electricity
consumption 2024
UK electricity
consumption 2023
UK electricity
consumption %
change 2024/2023
kWh 3,911,480 4,476,841 (12.6%) 24,444 459,108 (94.7%)
kgCO
2
e 980,029 922,035 6.3% 1,934 2,752 (29.7%)
kWh/Employee 546 581 (6.1%) 80 1,472 (94.5%)
kgCO
2
e/Employee 137 120 14.0% 6 9 (29.3%)
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Our Responsibility to the World: Zero impact workspaces continued
Greenhouse gas emissions breakdown by scope: Global and UK, 2024 vs 2023
Global tCO
2
e
2024
Global % of
Total 2 024
KgCO
2
e/
Employee 2024
Global tCO
2
e
2023
Global
% change
2024/2023
UK tCO
2
e
2024
UK tCO
2
e
2023
UK
% change
2024/2023
Scope 1
Natural gas – stationary combustion 168 0.8% 23 376 (55.3%) 2 252 (99.0%)
Company leased cars – mobile combustion 18 0.1% 3 45 (60.0%) – – –
Refrigerant leakages – fugitive emissions 1,107 5.5% 154 2,343 (52.8%) 142 449 (68.4%)
Total Scope 1 1,293 6.4% 180 2,764 (53.2%) 144 701 (79.4%)
Scope 2
Purchased heat and steam 1 25 0.1% 3 22 13.6% – – –
Purchased electricity – Grey (market-based) 980 4.8% 137 922 6.3% 2 3 (33.3%)
Purchased electricity – Grey (location-based) 1,295 6.3% 181 1,538 (15.8%) 5 95 (94.7%)
Purchased electricity – Green – as a percentage of total consumption 42.1% – – 45.0% (290 bps) 79.6% 97.0% (1,740 bps)
Total Scope 2 (market-based) 1,005 5.0% 140 944 6.5% 2 3 (33.3%)
Total Scope 2 (location-based) 1,320 6.4% 184 1,560 (15.4%) 5 95 (94.7%)
Total Scope 1 & 2 (market-based) 2,298 11.4% 321 3,708 (38.0%) 146 704 (79.2%)
Total Scope 1 & 2 (location-based) 2,613 12.7% 365 4,324 (39.6%) 149 796 (81.2%)
Scope 3
Purchased goods and services
1
10,918 54.0% 1,524 13,987 (21.9%) 463 567 (18.3%)
Capital goods 1,117 5.5% 156 1,359 (17.8%) 47 55 (14.5%)
Fuel- and energy-related activities 299 1.5% 42 567 (47.3%) 1 43 (97.7%)
Waste generated in operations 139 0.7% 19 93 49.5% 3 7 (57.1%)
Business travel (land and air) 4,733 23.4% 660 5,169 (8.4%) 549 453 21.2%
Employee commuting 717 3.5% 100 771 (7.0%) 26 27 (3.7%)
Total Scope 3 17,923 88.6% 2,501 21,946 (18.3%) 1,089 1,152 (5.5%)
Total GHG emissions (market-based) 20,221 100.0% 2,822 25,654 (21.2%) 1,235 1,856 (33.4%)
Total GHG emissions (location-based) 20,536 100.0% 2,866 26,270 (21.8%) 1,238 1,948 (36.4%)
Note:
1. Purchased goods and services includes water usage. Global tCO
2
e for water in 2024 is 4 (2023: 10) and UK tCO
2
e for water in 2024 is 0.02 (2023: 1).
A significant reduction in Scope 1 and 2 emissions was achieved in the UK, mainly due to our move from the old London office to a new, smaller location that uses less natural gas,
electricity and has fewer refrigerant leakages. However,thenew facility still partially depends on non-renewable energy sources, which has lowered our percentage of renewable energy
usage in relation to our total consumption.
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Capital plc Annual Report and Accounts 2024 34Our business Strategic Report Sustainability Statement Governance Report Financial statements
Sustainable work
Our Responsibility to the World: Sustainable work
The year was marked by both challenges and successes,
prompting us to reassess our business models and
overall impact. As we navigated the evolving landscape
of our industry, we remained disciplined and proactive
in driving efficiency across the Group. Our talented
teams demonstrated agility, adapting in real time to
emerging challenges.
AI emerged as a key strategic focus, leading us to invest
in training and resources that help clients and partners
enhance efficiency through sustainable solutions.
Internally, we advanced our transformation by implementing
the ‘One Brand’ strategy, including an integrated Go-
To-Market approach, fostering a unified culture that
strengthens our collective identity and impact.
The total number of projects has declined for three
consecutive years, influenced both by our integrated
Go-To-Market strategy and broader economic factors.
However,the percentage revenue from For Good projects
has increased to 4.5% from 4.2%. In contrast, revenue
from Purpose-driven clients has decreased to 2.9% from
3.3%. Despite an 8.4% increase in the number of For
Good projects, total revenue did not grow proportionally
due to a decline in revenue per project. We successfully
expanded our Purpose-driven client base by 11.9%, with a
notable concentration of these clients in the APAC region.
The Group has continued to make donations to make an
impact to causes it supports, and these have increased
by 20.5%. The hours donated to community and charity
services have also significantly increased by 119.7%.
As climate change contributes to a growing number of
catastrophes globally, we are committed to reducing
greenhouse gas emissions and achieving net zero by 2040,
while also supporting relief efforts through contributions.
Our performance, 2024 vs 2023
2024 2023
% change
2024/2023
Total number of projects 6,872 8,414 (18.3%)
Total For Good projects 544 502 8.4%
Revenue from For Good projects £38,581,276 £42,407,192 (9.0%)
% revenue from For Good projects/revenue 4.5% 4.2% 30 bps
Purpose-driven clients 113 101 11.9%
For Good projects for Purpose-driven clients 395 409 (3.4%)
Revenue from Purpose-driven clients £24,362,663 £33,249,745 (26.7%)
% Revenue from Purpose-driven clients/revenue 2.9% 3.3% (40 bps)
% Revenue from projects for alcohol and tobacco clients
1
2.8% 2.6% 20 bps
Monetary donations to community and charity services
£78 ,136
(0.01% of revenue)
£64,870
(0.01% of revenue)
20.5%
Hours donated to community and charity services 3,184 1,449 119.7%
Note:
1. The Group does not have any revenue from tobacco clients (2023: nil).
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Capital plc Annual Report and Accounts 2024 35Our business Strategic Report Sustainability Statement Governance Report
Financial statements
Our Responsibility to the World: Sustainable work continued
“The role of AI in our industry is
truly transformational, and it is quite
different. Normally in our business you
see something new, which is overhyped,
and you then have to get through a
massive gap to catch up. This is the first
time I’ve seen where the technology –
AI – is ahead of what people think it can
do. Thechallenge is the ability for teams,
talents and the enterprise toingest the
technology and use it effectively”
Wesley ter Haar
Chief AI and Revenue Officer
Leveraging AI as a force for good
Our clients trust us as leaders in AI, relying on our expertise
to navigate this transformative technology responsibly.
With that trust comes the responsibility to uphold the
highest standards. Below are some of the key ways we
ensure AI is harnessed as a force for good, reinforcing
ourcommitment to ethical and responsible innovation.
Ensuring responsible use of AI
With AI playing a growing role in our day-to-day work,
ensuring AI is used responsibly throughout our organisation
is critical. To that end, in 2024 our AI Training Taskforce
launched AI Maker Trainings for our ‘Maker’ Monks — those
who contribute to and deliver innovative solutions for our
projects and clients. These trainings equip our teams with
the skills and knowledge needed to harness AI effectively
and responsibly.
Additionally, we introduced
1
5 Minutes of Now
, a series
of weekly training sessions designed to keep our people
at the forefront of AI developments. These sessions are
tailored across business and operations, creative and
tech, ensuringthat all teams, regardless of their function,
stay ahead in AI-driven technology advancements and
continuously enhance their expertise. These mandatory
trainings cater to different levels of proficiency and provide
our people a base level of knowledge about AI holistically.
Our AI Core team handles all things related to legal,
tooling,and hardware. Their mission is to help Monks use
AI tools responsibly, protect the interests of Monks and
our clients, and foster innovation within the Group. AI Core
consists of representatives from our Legal, Data Privacy
and Information Security teams.
Mitigating bias in AI
As AI becomes integral to marketing and content creation,
it’s essential to acknowledge the risks it poses, particularly in
perpetuating biases. Left unchecked, AI systems can reflect
and amplify the same prejudices that society struggles with,
undermining efforts toward fairness, diversity and inclusion.
At our core, we believe AI should not just avoid harm – it
should actively promote equity, challenge entrenched biases
and contribute to a more inclusive world. That is why we
have committed ourselves to rigorous data management,
robust oversight and purposeful design to ensure AI
systems prioritise ethical outcomes. By taking an active
role in shaping how AI systems are trained and deployed –
whether by rethinking prompt design, scrutinising datasets,
or incorporating diverse voices into the AI development
process – we are doing our part to ensure that they are tools
for inclusion.
Promoting more sustainable use of AI
As AI adoption accelerates, its energy consumption and
environmental impact have become pressing concerns.
Training and operating AI models requires immense
computational power, creating a growing demand for
energy-intensive GPUs. While this presents challenges,
it also provides an opportunity to rethink how AI can be
integrated as part of the solution for achieving climate
sustainability. That is why we are committed to partnering
with experts, such as cloud engineers and AI leaders,
toexplore innovations that minimise energy consumption
while maximising global impact.
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Capital plc Annual Report and Accounts 2024 36Our business Strategic Report Sustainability Statement Governance Report Financial statements
Changing the way work is done
As part of our foundational environmental, social and
governance goals, we aim to become a catalyst for
change in our industry. Leading by example, we are
constantly ideating, innovating and creating solutions to
drive efficiency, further the development of sustainable
options and transform how the work is done – for the better.
Below are just some of our 2024 innovation highlights.
Monks.Flow: Transforming organisational workflows
Early in 2024, we unveiled our award-winning Monks.
Flow, an application ecosystem that is transforming
organisational workflows by integrating human talent
withAI technology. The service weaves together numerous
workflows designed for developing insights, building assets
at scale, adapting content, measuring performance and
optimisation, and more. At Monks, we are changing the
way work is done. But we are not doing it alone. We have
teamed up with industry leaders – including Adobe,
Meta,Google, Nvidia, and others – to advance end-to-end
content supply chains, cut costs and deliver on the promise
of personalisation at scale. These partnerships help keep
our clients ahead of the market while steering theindustry
toward a new pricing model based on output rather
than time.
Our Responsibility to the World: Sustainable work continued
Monks: Redefining outdated pricing models
We have redefined the agency commercial model to match
AI-driven content creation. Traditional time-and-materials
billing doesn’t work in an era where AI accelerates outputs.
Our outcome-based pricing model focuses on results,
delivering faster, smarter and more cost-efficient solutions.
This shift incentivises innovation and challenges outdated
industry norms.
Formula AI: Delivering efficient
andsustainablesolutions
More and more of our clients are seeking AI solutions
that are efficient, reliable and sustainable. Formula AI
directly addresses these needs by combining smaller
language models with knowledge graphs, significantly
reducing computational power needs and carbon footprint
compared to massive models. Formula AI also ensures
accuracy by grounding AI responses in verifiable data,
allowingorganisations to confidently deploy AI solutions
while maintaining compliance and reducing their exposure
to risks from AI-generated misinformation.
OpenPlay Signature: Streamlining music catalogue
and rights management
The result of a strategic partnership between Monks
and OpenPlay, OpenPlay Signature marks a significant
advancement in music and media management, offering
clients a customisable platform that aligns precisely with
their business needs to enhance efficiency in catalogue
and rights management. This partnership allows for
rapid deployment of customised solutions, reducing
implementation times from years to months.
Private Network Common Platform (PNCP):
Revolutionising mission-critical live media
Built in collaboration with Verizon and NVIDIA, PNCP
redefines live streaming for mission-critical applications.
Unlike traditional systems that rely on public networks,
Verizon’s Private 5G delivers dedicated, interference-free
bandwidth, ensuring seamless, high-quality streaming in
environments where reliability is paramount. From disaster
zones to dense urban events, this platform guarantees
uninterrupted performance, even in high-demand situations
where public networks are prone to failure.
Monks and AWS: The future of broadcasting
By innovating the traditional broadcast model through our
cloud-based Virtualized Broadcast workflows, the cost
savings are not just in dollars, but in carbon emissions.
With our partner AWS, we were able to reduce our footprint
to 0.1 metric tons of CO
2
e over a seven-game span for
our ‘virtual broadcast truck’ during the NBA in VR season.
At a 75% reduced carbon footprint, we present a more
sustainable model for live event production.
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Capital plc Annual Report and Accounts 2024 37Our business Strategic Report Sustainability Statement Governance Report Financial statements
Our Responsibility to the World: Sustainable work continued
Hatch: The Impossible Ad
Google invited us to participate in their Creative
Lighthouse programme, challenging partners to
make an ‘impossible ad’ with their Gemini LLM.
We launched a comprehensive campaign for
Hatch, in which we aimed to balance consumer
education with performance, while achieving deep
personalisation at scale. Monks.Flow worked
seamlessly with Gemini to enhance creative ideation,
strategy and consumer persona development, and
with Google Performance Max to generate layouts
specifically for their campaigns. We generated
multiple headlines and locations – from bedrooms
to boardrooms, yoga studios to mountaintops – to
create targeted ads in just hours resulting in a 50%
reduction in hours and 97% reduction in costs
versus legacy approaches, freeing up massive
resources for creatives and marketers to focus
onareas where human touch is more critical.
Victimes & Citoyens: Drive Like A Woman
To stay alive, and to save lives, men need to adopt a driving style often attributed
to women. This crucial message was effectively communicated through an
innovative OOH campaign. Simultaneously, on social platform X, we developed
a chatbot specifically designed to respond to every tweet concerning women’s
driving. The chatbot provided well-reasoned and indisputable arguments that
sparked a significant societal discussion across France. Remarkably, this initiative
resonated far beyond borders, reaching audiences on all five continents and
igniting conversations about gender and driving safety that are both relevant
and transformative.
Sir Martian: Our Chatty AI Artist
With AI, we are exploring new kinds of creative
experiences that could not have been possible
before. Case in point: our ‘alien’ robot Sir Martian.
Capable of not only holding a conversation with
users but also sketching portraits of them using
cutting-edge generative AI in language, voice and
vision technologies as a palette, this expressive
robot captures the user’s likeness – and essence – to
create bespoke portraits. Sir Martian was recognised
by Ad Age as one of the Top 5 AI Marketing
Activations to Know About.
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Capital plc Annual Report and Accounts 2024 38Our business Strategic Report Sustainability Statement Governance Report Financial statements
People Fulfilment
In 2024, Monks adopted the theme of democratising
culture, empowering our global teams to shape their own
cultural narratives while anchoring them in shared values.
This strategy not only fosters inclusivity and flexibility but
has also driven a positive shift in our representation across
all levels of the organisation.
We saw the proportion of women in management
positions increase by 5.2%, now making up 46.6% of
the management workforce, up from 44.3% in 2023.
Additionally, the proportion of women in other professional
positions has continued to grow, reaching 52.3% in 2024,
up from 48.9% in 2023, further demonstrating our focus
on gender balance across the organisation. Composition of
the S
4
Capital Board of Directors has changed year over
year as well, with women making up 44.4% of the Board
versus 33.3% in 2023 (see page 41).
Programmes like the S
4
Fellowship continue to drive
forward our recruitment efforts, expanding outreach to
Minority-Serving Institutions (MSIs) and ultimately helping
to shape a leadership pipeline that mirrors the diversity of
the global landscape. This year, these initiatives helped
produce a 145% increase in applications, underscoring
the appeal of a programme rooted in both diversity and
career development.
As we continue to refine and expand our diversity initiatives,
we remain dedicated to building a culture that is not only
global and diverse, but also truly inclusive, whereevery
Monk contributes to co-creating a rich, dynamic
cultural experience.
“After receiving numerous awards
for our work in AI – including Adweek’s
inaugural AI Agency of the Year and
Business Intelligence Group’s Excellence
in Artificial Intelligence – Monks continues
to be a workforce deeply rooted in
shaking the foundations of our industry,
embodying this spirit through our ESG,
talent and culture efforts. Our people
continue to show up for each other, even
as we face headwinds across the global
economy, climate and governments”
James Kinney
Global Chief People Officer
Our people progress, 2024 vs 2023
Total 2 024
Women
2024 Men 2024
Undeclared
2024 Total 2023
Women
2023 Men 2023
Undeclared
2023
Employees 7,166 48.6% 47.7% 3.7% 7,707 47.6% 49.7% 2.7%
Part time 1.7% 2.0%
Full time 98.3% 98.0%
Permanent contract 95.2% 96.0%
Temporary contract 4.8% 4.0%
% of turnover per total
employees by gender
28.3% 46.6% 47. 3% 6.1% 36.0% 47. 0% 50.0% 3.0%
Covered by collective bargain
agreement
30.3% 27. 0%
Absenteeism in the Netherlands 3.5% 3.0%
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Capital plc Annual Report and Accounts 2024 39Our business Strategic Report Sustainability Statement Governance Report Financial statements
People Fulfilment continued
Gender balance of workforce 2024
Women
48.6%
Men
47.7%
Undeclared
3.7%
Our representation
In line with our competitor sets and client needs over the
past several years, we have structured ourselves for now
and the future, ultimately consolidating 34 companies
into one operating brand. Streamlining has enhanced our
operational efficiency and positions us more competitively
in the market, reflecting our adaptability and foresight.
This operational transformation resulted in a 7.0%
decrease in overall headcount in 2024 compared to 2023.
Despite these changes, our unwavering commitment
to empowering women in the workforce allowed us to
maintain a healthy gender balance, a point of pride for
our organisation.
This year we attained 48.6% female representation,
whichis our highest to date. We were pleased to bring
on board exceptional talent such as Linda Cronin, EVPof
Global Media; Nikki Gifford, Chief Operating Officer
of Technology Services; and Juanita Draude, EVP of
EMEA. While we have achieved our highest percentages
of women in other professional positions at 52.3%
and in management at 46.6%, we did observe a 1.4%
decline in women in executive roles. To address this,
weexpanded our S
4
Women in Leadership Program to
support those emerging into leadership, providing training
andopportunities to equip them for advancement.
Gender balance of workforce by role 2024
Executive
Men
2024 2023
Women
Undeclared
60.6%
59.6%
36.9%
38.3%
2.5%
2.1%
2.5%
1.5%
50.9%
54.2%
Management
Men
Women
Undeclared
46.6%
44.3%
43.4%
48.6%
52.3%
48.9%
4.3%
2.5%
Other positions
Men
Women
Undeclared
19.7%
33.0%
36.8%
46.8%
43.5%
20.2%
Internship
Men
Women
Undeclared
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Capital plc Annual Report and Accounts 2024 40Our business Strategic Report Sustainability Statement Governance Report Financial statements