Annual Report and Accounts 2025

202

Powering on

Capital and our global agency brand,

Monks, is a new-age/new-era digital

advertising, marketing and technology

services company, operating in the

fastest-growing segment of the advertising

and marketing services market.

We are a unified, purely digital business,

which disrupts analogue models by

embracing marketing services and

technology services.

We work with global, multinational, regional

and local clients 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

providing for Monks and their dependents.

Read more at

s4capital.com

monks.com

Capital plc Annual Report and Accounts 2025 01

In this report

Our business

Worldwide presence 03

Financial highlights 04

Business model 06

Sustainability

Sustainability in action 27

2025 in brief 28

Our ESG strategy 29

Our value chain – impact model 30

Materiality assessment and outcome 31

Our Responsibility to the World 32

People Fulfilment 42

One Brand 47

Task Force on Climate-related Financial

DisclosuresReport

Non-financial, sustainability and climate-related

information statement

Section 172(1) statement 61

Governance Report

Executive Chairman’s statement 67

Corporate governance statement of compliance 69

Leadership: Board of Directors 71

Leadership: Executive Committee 74

The role of the Board 75

Audit and Risk Committee Report 83

Nomination and Remuneration Committee Report 87

Remuneration Report 92

Directors’ Report 110

Financial statements

Independent auditors’ report 114

Consolidated statement of profit or loss 124

Consolidated statement of comprehensive income 125

Consolidated balance sheet 126

Consolidated statement of changes in equity 127

Consolidated statement of cash flows 128

Notes to the consolidated financial statements 129

Company balance sheet 167

Company statement of changes in equity 168

Notes to the Company financial statements 169

Strategic Report

Letter to shareowners 08

Progress against our strategy 10

Key Performance Indicators 12

Financial review 13

Principal risks and uncertainties 19

Pages 60 to 65 also form part of the Strategic Report

How far can AI take us? Will 2026 be an

accelerator year? Sir Martin Sorrell and

fellow Monks have some answers.

Read more in our Annual ESG Report

Additional information

Appendix: Alternative Performance Measures 175

Shareowner information 180

Capital plc Annual Report and Accounts 2025Our business Strategic Report Governance Report Financial statements 02Sustainability

Our

business

Worldwide presence 03

Financial highlights 04

Business model 06

Additional information

Capital plc Annual Report and Accounts 2025Our business Strategic Report Governance Report Financial statements 03Sustainability

Worldwide presence

We’re

always on

A global communications

business for the new

marketing age. Integrated,

agile and responsive.

5.3

et revenue by region

Americas EMEA APAC

APAC

79.9%

14.8%

79.9%

14.8%

5.3%

Americas

EMEA

People

6,345

Countries

Offices

Unitary structure

Americas

EMEA

APAC

Company locations

Additional information

Capital plc Annual Report and Accounts 2025Our business Strategic Report Governance Report Financial statements 04Sustainability

Billings

£1.9bn

-2.6%

Like-for-like

+0.4%

Revenue

£754.8m

-11.0%

Like-for-like -8.7%

Net revenue

£673.0m

-10.8%

Like-for-like -8.4%

Operational EBITDA

3,4

£81.2m

-7.5%

Like-for-like -3.2%

Operational EBITDA margin

12.1%

+50bps

Like-for-like +70bps

Dividend per share

1.1p

2024 1.0p

Operating profit

£2.7m

2024 -£302.8m loss

Loss before income tax

-£23.8m

2024 -£330.9m

Adjusted operating profit

£ 74 .0 m

-5.5%

Like-for-like -0.9%

Financial highlights

For full reconciliation from statutory to non-GAAP

measures, please refer to the Alternative Performance

Measures Appendix on page 175.

Notes:

1. Billings is gross billings to clients including pass-through costs.

2. Like-for-like relates to 2024 being restated to show the unaudited

numbers for the previous year of the existing and acquired

businesses consolidated for the same months as in 2025,

applying currency rates as used in 2025.

3. Operational EBITDA margin is operational EBITDA as a

percentage of net revenue.

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 other one-off expenses) and recurring items (share-based

payments), and includes right-of-use assets depreciation. It is a

non-GAAP measure management uses to assess the underlying

business performance.

5. Adjusted result before income tax is profit/loss before income

tax adjusted for non-recurring and recurring items (as defined

infootnote 4).

6. Adjusted operating profit is operating profit/loss adjusted for

non-recurring and recurring items (as defined in footnote 4).

Additional information

Capital plc Annual Report and Accounts 2025Our business Strategic Report Governance Report Financial statements 05Sustainability

Financial highlights continued

Basic loss per share

-3.7p

2024 -45.7p

Share price at 23 March 2026

20.5p

Market capitalisation at 23 March 2026

£137m

Adjusted result before income tax

£ 47. 5 m

-5.4%

Net debt/operational EBITDA

1.1x

Net debt

£86.9m

2024 £142.9m

Adjusted basic earnings per share

5.0p

2024 5.2p

Additional information

Capital plc Annual Report and Accounts 2025Our business Strategic Report Governance Report Financial statements 06Sustainability

Business model

The change agent

for the AI economy

We are a digital-first marketing and technology

company that disrupts analogue models by

accelerating and automating the way work

is done to benefit our clients and their businesses.

Our tools

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

We amplify brand

power with

Real-Time Brands

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 in the real-time world.

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.

We turn spend into

growth as the Media

Acceleration Partner

Built for the algorithmic age.

We connect real-time intelligence,

scalable content, deep platform

expertise, holistic measurement

and experience optimisation into

one integrated system. Insteadof

optimising channels in silos,

weaccelerate the entire growth

engine – turning media investment

into measurable, compounding

business impact. Closing the gap

between spend and impact.

As an Orchestration

Partner we remove

complexity

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. 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, faster,

better, cheaper and more.

We enable

Digital Business

Transformation

Clients need to do their own

work faster, better and cheaper,

butare beholden to legacy ways

of working, and technology debt

that they need to improve returns

from. OurTechnology Services

and Consulting capabilities

help transform our clients’

legacy operating and marketing

models via data optimisation and

management, techstack integration,

digital consumer experiences

and otheraspects of harnessing

technological innovation.

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 07

Strategic

Report

Letter to shareowners 08

Progress against our strategy 10

Key Performance Indicators 12

Financial review 13

Principal risks and uncertainties 19

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 08

Letter to shareowners

Dear shareowner,

Throughout 2025, our trading reflected the continuing

impact of increasingly volatile global macroeconomic

conditions, heightened by tariff negotiations and increasing

geopolitical risks. Clients remained cautious amid this

uncertainty, with technology clients — representing

almost half our revenue — continuing to prioritise capital

expenditure on expanding AI capacity over operating

expenditure. Technology Services was affected in the first

half by a reduction in one of our larger relationships and

longer sales cycles, although this impact was reduced as

the year progressed. Despite the challenging backdrop and

usual seasonal weighting to the second half, liquidity and

cashflow improved significantly year-on-year, drivenby

disciplined cost control and strong working capital

management, resulting in a substantial reduction in net

debt over the course of the year. Performance strengthened

in the second half, supported by the phasing of new

business wins and expanding relationships with major

enterpriseclients.

Reported billings were £1,912.9 million down 2.6% on prior

year and up 0.4% like-for-like. Reported revenue was down

11.0% to £754.8 million, down 8.7% like-for-like. Reported

net revenue declined 10.8%, 8.4% like-for-like.

Operational EBITDA in the full year reflects improvement in

margins in Marketing Services and Technology Services,

due to strong cost management. The number of Monks at

the end of the year was circa 6,350 down 11.5% from circa

7,150 at this time last year.

Marketing Services’ net revenue declined in the year

reflecting ongoing caution and lower activity with some of

our larger technology clients. Marketing Services operational

EBITDA was £92.6 million (2024: £94.7 million), up 1.5%

like-for-like and on a reported basis down 2.2% versus

2024, due to the action taken on costs. Marketing Services

operational EBITDA margin was 15.1%, up 110 basis points

like-for-like and 90 basis points reported compared to 14.2%

in 2024.

Technology Services’ performance was impacted by

continued client caution, especially amongst technology

clients as they allocate even more spend to building AI

infrastructure, client losses and increasingly challenging

global macroeconomic conditions. Reported operational

EBITDA was down to £8.9 million (2024: £11.5 million) and

operational EBITDA margin was 15.1%, up 190 basis points

like-for-like and 180 basis points reported compared to

13.3% in 2024.

On a like-for-like basis, the Americas net revenue was

down 5.6% and now accounts for 80% of the Company’s

net revenue. EMEA, accounting for 15%, was down

19.6%. AsiaPacific (APAC), accounting for the remaining

5% was down 13.8%. Reported Americas net revenue

was £537.4 million, down 8.6%, EMEA net revenue was

£99.9million, down 19.0% and Asia Pacific was £35.7

million, down17.6%.

Continuing the trends seen during the year, we are seeing

our AI initiatives improve visualisation and copywriting

productivity, deliver considerably more effective and

economic hyper-personalisation, delivering more

automated and integrated media planning and buying,

improving general client and agency efficiency and

democratise knowledge. We are now producing high

“Our new go-to-market

propositions are resonating

strongly with clients”

We remain

confident in

our strategy,

business model

and talent

Sir Martin Sorrell

Executive Chairman

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 09

Letter to shareowners continued

quality commercials using AI technologies such as Runway,

Luma, Flux, Omniverse (Nvidia), Substance (Adobe) and

Unreal that take hours and days to produce at significantly

lower cost rather than traditional production techniques,

which take weeks and months at significantly greater cost.

Thequality continues to improve in real-time and clients

that are exposed to the results of these AI technologies

are very excited about their implementation and the

commercial impact on their marketing budgets and return

on investment. As a result, we are changing our revenue

model from a purely, time-based approach to one more

based on outputs – i.e. use of assets and subscriptions.

We are seeing significant opportunities for new business,

particularly driven by our AI tools and capability.

Newbusiness wins so far this year include new or

broadened relationships with Asana, Amplifon, Samsung,

Square, NCS, Opella, Visa, Cinemark and HelloFresh.

Wealso continue to expand many of our existing

relationships, in particular General Motors and Amazon,

which have ramped up significantly in the second half

of the year. In April, we won a large “Real-Time Brands”

assignment with our existing client T-Mobile. In July we

were engaged by a leading US-based Global FMCG, as

their Content Studio Agency Partner, which draws on

both our “Real-Time Brands” and “Orchestration Partner”

propositions with a focus on quality creative combined

with dimension and cultural relevancy, beyond simply

making assets at scale. These new wins contributed to

our second-half performance and over time are expected

to be significant relationships for us. In October, another

existing US-based Global FMCG client appointed us to

help implement AI throughout its marketing supply chain,

a partnership based on a new subscription-based model

focussing on outputs and outcomes. We continue to win

multiple exploratory assignments and AI film projects, as

clients experiment and explore AI applications and develop

AI use cases. AIcapability is becoming more central to the

agency’s way of working and new business efforts. In this

regard the Company’s early adoption of AI and proactive

approach to staff training on AI is beginning to pay off.

We have won four major AI industry awards in the last

twoyears.

Our new go-to-market propositions, Orchestration

Partner, Real-Time Brands, Media Acceleration and Digital

Transformation are all starting to resonate strongly with

clients. These are built around hyper-personalisation at

scale, social media, brand strategy, platform expertise

andleveraging of technology.

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 current client requests and

global regulatory requirements.

We remain focused on the wellbeing of our people and

their experiences and recently added Debra Stroff as

our new Chief People Officer. Her leadership will foster

a culture where technology serves our people, allowing

every individual to grow and find more space for creativity.

Developing stronger cultural awareness remains central to

our commitment to inclusion and operating as One Brand.

Across the Group, we support communities through donated

hours, and deliver For Good projects with clients that

generate positive social, cultural or environmental impact.

We continue to enjoy our B Corp status. The certification

reflects our commitment to stakeholder-driven governance,

social impact and DE&I and transparent reporting.

Summary and outlook

Clients are expected to remain cautious in the near

term due to macroeconomic uncertainty, evolving tariff

dynamics, and the conflict in the Middle East, alongside

shifting technology priorities toward AI capex rather than

marketing. Despite this, the Company remains confident

in its strategy, business model, talent, and scaled client

relationships, positioning it for sustainable long-term

growth. 2026 like-for-like net revenue is expected to be in

line with current analyst consensus, slightly below 2025,

with operational EBITDA margin targeted to increase by

at least 100 basis points, primarily due to the annualised

impact of the 2025 cost actions. Despite a challenging

first quarter, with the conflict in the Middle East having

an impact on clients, the Company expects an improved

performance in the second half, reflecting the seasonal

nature of the business and the phasing of new business

revenue. The proportion of operational EBITDA in H1 2026

is expected to increase compared to H1 2025 due to the

annualised impact of the 2025 cost out actions.

Our targeted range for net debt at 31 December 2026 is

£60 million to £90 million. We target medium term leverage

of under 1.0x operational EBITDA and below our previous

range. Net finance costs are expected to reduce from £25.7

million in 2025 to circa £20 – 22 million in 2026. Over the

longer term we expect operational EBITDA margins to

return to historic levels of around 20%.

The strategy of S

Capital remains the same. The Company’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. Our promise ‘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.

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 10

Progress against our strategy

Read more on page 06 Read more on pages 13 to 18 Read more on pages 13 to 18 Read more on pages 13 to 18

Objectives

• Build scaled relationships with enterprise

clients. 20x20 goal: 20 clients with

$20million annual revenues (‘whoppers’)

• Maintain strong partnerships with

Technology clients

2025 progress

• Eight ‘whopper’ clients (one new)

• Strong new business performance with

wins at Amazon, PIF, T-Mobile and two

leading FMCG brands

• Developed industry leading AI case

studies and won multiple awards

• 41% revenue from Technology clients

(2024: 45%)

2026 goals

• Further penetration of existingclients

• Develop more ‘whoppers’

• Strong new business performance

• Broaden client industry sectorexposure

• Deliver market-leading AI casestudies

and work

Measurement

• Number of ‘whoppers’

• % revenue by industry sector

Objectives

• Outpace the growth of the addressable

digital markets

2025 progress

• Net revenue declined 8.4% on a

like-for-like basis

2026 goals

• Achieve 2026 like-for-like net revenue

target in line with guidance

Measurement

• Like-for-like net revenue growth

Objectives

• Improve margin

• Long-term target of around 20%

operational EBITDAmargin

2025 progress

• Operational EBITDA margin up

70bpsfrom prior year to 12.1% ona

like-for-like basis

• Strong cost management including

reductions in number of Monks and

operational costs

2026 goals

• Achieve 2026 operational EBITDA

margintarget

• Improve productivity (utilisation

andbillability)

• Continue to align personnel cost to net

revenue ratio to industry averages

Measurement

• Operational EBITDA margin

• Utilisation and billability rates

• Personnel cost/net revenue ratio



Objectives

• Beat net debt target of 1.5-2x times

operational EBITDA

• Achieve a balanced approach to net

debt: balance corporate resilience with

shareholder return

2025 progress

• Reduced net debt from £142.9 million or

1.6x operational EBITDA to £86.9 million

or 1.1x operational EBITDA

2026 goals

• Achieve 2026 net debt target

Measurement

• Net debt/pro-forma operational

EBITDAratio

• Ratings from external debt

ratingsagencies

Our clients Revenue

growth

Margin Net debt

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 11

Progress against our strategy continued

Objectives

• Attract, retain and develop the best talent

in the industry

2025 progress

• HR processes integrated within Marketing

Services and continued broader system

• Growth conversations fully deployed

and made accessible to all managers,

supported by global training to

driveadoption

• AI-focused learning expanded through

the launch of the School of AI, delivered

via multiple modalities, alongside

Flagship Leadership programming

reaching 194 leaders globally

• Launched the What’s Happening Now

podcast, Motif and Executive Leadership

teammeetings

2026 goals

• Continue to evolve and embed a

consistent performance review process

across the Group

• Advance adoption of a standardised merit

cycle to support equitable and effective

compensation decisions

Measurement

• Performance Reviews and Merit Cycle

execution in Workday

Objectives

• Net zero by 2040 (The ClimatePledge)

2025 progress

• Increased EcoVadis score to 66/100,

bronze, top 35%

• Top 20% of S&P

• Transparency Award for

sustainablereporting

• Accelerated our path towards net zero

by 2040, achieving a 31.7% absolute

reduction in total greenhouse gas

emissions (market-based)

• Use of renewable energy up 130bps

2026 goals

• Carbon emission reduction in line with

ourSBTi targets

• Improve ESG data quality: increase the

proportion of data collected directly from

operations and suppliers, while reducing

reliance on estimated or extrapolated data

Measurement

• Carbon output reduction in line with our

SBTi transition plan

• Increase use of renewable energy

• Third party accreditation such as

EcoVadis, B Corp

Objectives

• To operate a unitary structure

2025 progress

• Clear simplified structure, Marketing

Services and Technology Services,

organised viageography

• Released integrated Go-To-Market

propositions to drive growth

• Improved system integration, data quality

and connectivity

• Majority of the Group migrated to single

ERP system, programme on track for

completion as planned in 2026

2026 goals

• Further collaboration between

capabilities for existing and new clients

• Finalise implementation of single

ERPsystem

Measurement

• Collaboration between capabilities

• Group migration to single ERP system



Objectives

• Embed AI throughout clients’ marketing

supply chain

2025 progress

• Restructured teams to enable large-scale

technology adoption, radical productivity

gains and upskilling staff into award-

winning AI orchestrator roles

• Launched agentic Monks.Flow platform,

leveraging a model-agnostic stack

• Began the shift from time-based billing to

output and subscription-based revenue

• Secured AI supply chain mandates for

T-Mobile and two global FMCG clients,

unifying production and measurement

2026 goals

• Establish Monks as AI transformation

partner and scale long-term subscription

to embed unified AI layer across strategy,

creative and media

• Connect real-time media signals to

automated generation to eliminate final

manual gaps

Measurement

• % of run-rate revenue delivered via

output or subscription contracts

• Majority of top 50 clients adopting AI

services or systems

People

and culture

Sustainability Integration AI

Read more on pages 42 to 46 Read more on pages 27 to 65 Read more on page 99 Read more on pages 33 to 35

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 12

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

to give a consistent

year-on-year comparison.

Key Performance Indicators

Note:

1. Further detail on alternative performance measures can be

foundin the Appendix to the Annual Report and Accounts

onpage 175.

Financial Non-financial

2025 2024

3.5

2.8

2025

81.2

2024

83.9

Like-for-like operational EBITDA £m

£81.2m

Like-for-like -3.2%

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.

2025

673.0

2024

734.9

Like-for-like net revenue £m

£673.0m

Like-for-like -8.4%

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.

2025

12.1%

2024

11.4%

Like-for-like operational EBITDA margin

12.1%

Like-for-like +70bps

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.

Carbon intensity (tCO

e) per employee

3.5 tCO

2024: 2.8 tCO

Greenhouse gas emissions for the Group, 2025 vs 2024.

For further information see pages 39 to 40.

Diversity, equity and inclusion

Gender ratios across the Group as at 31 December 2025

and 2024. For further detail on diversity, equity, inclusion,

gender equality and gender pay gap equality see pages

42to 46.

2025 2024

Undeclared Undeclared

Female 47.8%

Male 45.3%

Undeclared 6.9%

Female 48.6%

Male 47.7%

Undeclared 3.7%

Female

Male

Female

Male

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 13

Financial review

Strong

working capital

performance

and improved

free cash flow

“Disciplined cost

management and strong

focus on working capital

is delivering improved

operational EBITDA

margins and lower net debt”

Billings

£1,912.9m

-2.6%

Like-for-like +0.4%

Revenue

£754.8m

-11.0%

Like-for-like -8.7%

Net revenue

£673.0m

-10.8%

Like-for-like -8.4%

Operational EBITDA

£81.2m

-7.5%

Like-for-like -3.2%

Operational EBITDA margin

12.1%

+50bps

Like-for-like +70bps

Adjusted operating profit

£ 74 .0 m

-5.5%

Like-for-like -0.9%

Operating profit

£2.7m

2024 £302.8m loss

Radhika Radhakrishnan

Chief Financial Officer

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 14

Financial review continued

Introduction

2025 saw continued pressure on net revenue. The Group

prioritised strict cost control, right-sizing headcount

to match activity and strong working capital and cost

management. As a result, operational EBITDA margin

improved and net debt significantly reduced. We are

making solid progress with our finance transformation

programme including the roll out of our global finance

system, rationalising legal entities and integration of our

practices and people.

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, although

managements’ 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’. 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 175.

Financial summary

Reported billings were £1,912.9 million, down 2.6%

reported and up 0.4% like-for-like. Controlled billings

that is billings we influenced, were approximately

£4,977.4million (2024: £5,217.6 million).

Reported revenue was £754.8 million, down 11.0% from

£848.2 million and down 8.7% like-for-like.

Reported net revenue was £673.0 million, down 10.8%

and down 8.4% like-for-like.

Reported operational earnings before interest, taxes,

depreciation and amortisation (operational EBITDA) was

£81.2 million compared to £87.8 million in the prior year,

down 7.5% on a reported basis and down 3.2% 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 around6,350, down 11.5% from7,150

at this time last year.

Notes:

1. Controlled billings is billings we influenced in addition to billings that flowed through the consolidated statement of profit or loss.

2. The comparatives as at 31 December 2024 have been represented to reflect the Group’s revised segment structure.

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 15

Financial review continued

Operational EBITDA margin was 12.1%, up 50 basis points

versus 11.6% in 2024 and up 70 basis points like-for-like

reflecting improvement in margins in Marketing Services

and Technology Services primarily due to strong cost

management. Our ambition remains to return full year

margins to historic levels, around 20%, over the longerterm.

Reported adjusted operating profit was down 5.5% to

£74.0 million from £78.3 million, before adjusting items of

£71.3 million (2024: £381.1 million), including £20.4million

of restructuring and one-off costs and £49.4 million of

amortisation of intangible assets, a similar level to2024.

Adjusting items includes amortisation of business

combination intangible assets, restructuring, primarily

related to headcount reductions, contingent consideration,

share-based payments, impairment of property, plant

and equipment and reversal of lease impairment charges

relating to property rationalisation.

The reported operating profit was £2.7 million versus

a loss of £302.8 million in 2024, primarily reflecting a

decrease in adjusting items as 2024 included a non-cash

impairmentcharge. Loss for the year was £24.8 million

(2024: £306.9million loss).

Adjusted basic earnings per share was 5.0p, versus adjusted

basic earnings per share of 5.2p in 2024, down 3.8%.

Basicloss per share was 3.7p (2024: 45.7p).

Billings

£m

2024

2023

2025 1,912.9

1,963.0

1,870.5

Revenue

£m

2024

2023

2025 754.8

848.2

1,011.5

Adjusted operating profit

£m

2024

2023

2025 74.0

78.3

82.0

Net revenue

£m

2024

2023

2025 673.0

754.6

873.2

AAA

150.0

125.0

100.0

75.0

50.0

25.0

0.0

FY 2025FY 2024

£93.7

£87.8

Ope

rational EBITDA and margin £m

£81.2

10.7%

11.6%

12.1%

FY 2023

Profit

% margin

Operating profit/(loss)

£m

2024

2023

2025

2.7

(302.8)

20.2

2024

2023

2025

2024

2023

2025

2024

2023

2025

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 16

Financial review continued

Practice performance

Marketing Services

practice’s reported net revenue was

down 8.1% and down 5.6% like-for-like and reported

operational EBITDA was £92.6 million, down 2.2% versus

2024 and up 1.5% like-for-like. Marketing Services

practice’s operational EBITDA margin improved to 15.1%,

compared to 14.2% in 2024, despite the lower revenue,

reflecting a reduction in the number of Monks and other

cost savings as compared to 2024.

Technology Services practice’s reported net revenue was

down 31.9% and down 29.9% like-for-like. Reported

operational EBITDA of £8.9 million was down 22.6% from

the prior year, down 19.8% like-for-like and delivered an

operational EBITDA margin of 15.1% compared to 13.3%

in 2024. Technology Services performance was impacted

by continued client caution, especially amongst technology

clients as they allocate even more spend to building AI

infrastructure, client losses and increasingly challenging

global macroeconomic conditions.

Reported central costs of £20.3 million were up 10.3%

reflecting centralisation of procurement, IT roles and the

full-year impact of 2024 hires.

Performance by practice

2025

£m

2024

£m Lfl YOY

Net revenue 673.0 754.6 (8.4%)

 

Marketing Services 614.0 6 67.9 (5.6%)

Technology Services 59.0 86.7 (29.9%)

 

Operational EBITDA 81.2 87.8 (3.2%)

 

Marketing Services 92.6 94.7 1.5%

Technology Services 8.9 11.5 (19.8%)

Central (20.3) (18.4) 10.3%

 

Operational EBITDA margin 12.1% 11.6% 70bps

 

Marketing Services 15.1% 14.2% 0bps

Technology Services 15.1% 13.3% 190bps



Net revenue split by practice

Marketing

Services (MS)

91.2%

Technology

Services (TS)

8.8%

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 17

Financial review continued

Geographic performance

The Americas reported net revenue was £537.4 million

(80% of total), down 8.6% from last year. Like-for-like,

theAmericas net revenue was down 5.6%.

EMEA reported net revenue was £99.9 million (15% of

total), down 19.0% from last year. Like-for-like, EMEA net

revenue was down 19.6%.

APAC reported net revenue was £35.7 million (5% of

total), down 17.6%. Like-for-like APAC net revenue was

down13.8%.

Cash flow

Year ending

31 December

2025

£m

Year ending

31December

2024

£m

Operational EBITDA 81.2 87. 8 

Capital expenditure

(4.9) ( 7. 5 )

Interest and facility fees paid (23.6) (29.1)

Interest received 2.2 2.1 

Income tax paid (3.5) (9.0)

Restructuring and other one-off

expenses paid

(20.4) (21.1)

Change in working capital

55.5 14.6

Free cash flow 86.5 37.8

 

Mergers & Acquisitions (0.4) (9.9)

Other

(30.1) 10.0

Movement in net debt 56.0 37.9

 

Opening net debt (142.9) (180.8)

Net debt (86.9) (142.9)

Notes:

1. Includes purchase of intangible assets, purchase of property,

plant and equipment, proceeds from sale 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,

dividends and share buy-backs.

Free cash flow for 2025 was £86.5 million, an improvement

of £48.7 million compared to 2024, with an improvement in

working capital and lower cash tax paid.

Net revenue split by region

APAC

Americas

EMEA

Americas

79.9%

EMEA

14.8%

APAC

5.3%

Net revenue growth by region LFL

Americas

-5.6%

EMEA

-19.6%

APAC

-13.8%

2025 2024

“Free cash flow improved

by £48.7 million as a

result of strong working

capitalmanagement”

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 18

Financial review continued

Treasury and net debt

The year end net debt was £86.9 million (2024: £142.9

million) or 1.1x net debt/operational EBITDA. Thebalance

sheet has sufficient liquidity and long dated debt maturities.

During the year the Group complied with the covenants set

in its loan agreement. The operational EBITDA for the year

was £81.2 million.

The Group’s key covenant is that the net debt should not

exceed 4.5:1 of the pro-forma earnings before interest, tax,

depreciation and amortisation. This ratio is 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. As at 31 December 2025, the net debt/

EBITDA, as defined by the facilities agreement, was 1.1x.

The duration of the 2021 facilities agreement is seven years

in relation to the Term Loan B and the termination date is

August 2028. The term of the RCF is five years and the

termination date was August 2026. £80 million of the RCF

facility has been extended to February 2028, with all four

relationship banks extending on the same terms, with the

remaining £20 million terminating in August 2026. The RCF

remains undrawn as at 31 December 2025. Subsequent

to the year ended 31 December 2025, the Group has

repurchased €25.7 million of its €375 million Term Loan B

at a discount, including €1 million remaining to be settled.

Following settlement, the remaining €349.3 million is due

tomature in August 2028.

“Net debt for 2025

was £86.9 million an

improvement of £56.0

million compared to 2024”

Net debt reconciliation

2025

£m

2024

£m

Cash and bank 240.8 168.4

Loans (327.7) (311.3)

Net debt (86.9) (142.9)

Lease liabilities (31.3) (42.5)

Net debt including lease liabilities (118 . 2) (185.4)

Interest and tax

Consolidated statement of profit or loss net financing costs

were £25.7 million (2024: £26.4 million), a decrease of £0.7

million due to favourable exchange rates and reduction in

bank interest expenses. The profit or loss tax expense for

the year was £1.0 million (2024: £24.0 million credit).

Balance sheet

Overall the Group reported net assets of £506.0 million

asat 31 December 2025, which is a decrease £71.5 million

compared to 31 December 2024, driven mainly by the

amortisation of intangible assets and foreign exchange

fluctuation.

Acquisitions

No acquisitions were made in the year ended 31 December

2025.

Outlook/guidance

We expect clients to remain cautious in the near term,

reflecting heightened macroeconomic uncertainty as a

result of the conflict in the Middle East. This challenging

environment results in more measured decision-making,

particularly as Technology clients continue to prioritise

AI-related capital expenditure over operating expenditure,

such as marketing. However, we remain confident in our

strategy, business model and talent base. Combined with

our scaled client relationships and the strong traction of

our new go-to-market propositions, we believe we are well

positioned to deliver sustainable long-term growth.

2026 like-for-like net revenue is expected to be in line

with current analyst consensus, slightly below 2025,

withoperational EBITDA margin targeted to increase by at

least 100 basis points, primarily due to the annualised impact

of the 2025 cost actions. We expect like-for-like net revenue

to be down for the first quarter, in part due to the ongoing

conflict in the Middle East. However, our cost management

initiatives will enable us to partially mitigate the full impact of

the revenue shortfall. The proportion of operational EBITDA

in H1 2026 is expected to increase compared to H1 2025

dueto the annualised impact of the 2025 costactions.

Our targeted net debt range for 2026 is £60 million to £90

million. We now aim for leverage over the medium term to

be under 1.0 times net debt to operational EBITDA, whichis

below our previous target range. Net finance costs are

expected to reduce from £25.7 million in 2025 to circa £20 –

22 million in 2026. As a measure of confidence in the future

the Board is proposing to pay a dividend of 1.1p pershare.

The Company’s capital allocation policy is to prioritise

dividends (currently 1.1p final dividend a 10% increase over

prior year), then further debt repurchases and finally share

repurchases as net debt fallsfurther.

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%.

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 19

Principal risks and uncertainties

This will support the financial strength and resilience of the

Groupand for delivering its businessstrategy.

As part of the Group’s strategy to enhance its resilience

and seek to deliver long-term growth, the Group 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.

Sustainability-related risks, including risks arising from

governance, regulatory expectations and responsible

business practices, are identified, assessed and managed

as part of the Group’s Enterprise Risk Management

framework. Further detail on the identification, assessment

and management of climate-related risks, including the

use of scenario analysis, is provided in the Group’s TCFD

disclosures within the Sustainability statement.

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,

We believe that

effective risk

management

is important

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 Group CFO for

review 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 23. Other, less material risks

(including emerging risks) are monitored by the Group CFO

and discussed at the Audit and Risk Committee or other

appropriate internal forums.

Risk description

Global macroeconomic and geopolitical headwinds could

result in existing clients reducing spend and potentially

limiting new business opportunities.

During a period of financial and operational transformation,

inconsistent practices across the Group during the transition

period may potentially increase the variability of forecasts.

If there is inadequate management of the talent lifecycle,

from critical succession planning for key roles, through to

ensuring staff have the key skills in a rapidly changing market,

thiscould result in gaps, misallocation of staff resource or

lossof key talent.

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.

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.

If the evolution of the internal technology and data landscape

is not successfully streamlined, there could be an adverse

impact on costs, support and internal efficiencies.

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.

Risk of share price volatility if investors’ expectations are not

met through consistent and clear corporate messaging.

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.

Increased competitive offerings and low barriers to entry in

the industry may impede new business opportunities and/

orerode margins.

Impact

Likelihood

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 20

Principal risks and uncertainties continued

The key changes and movements in the risks since the prior year have been as follows:

Risk 2 (Operational decision making and internalefficiencies):

The risk wording was updated to better reflect the currentoutlook.

Risk 3 (Talent lifecycle):

The risk wording was updated to focus more tightly on where the talent risk impacts

the business given the strategic goal of reducing overall headcount.

Risk 6 (Business transformation):

Following changes in the business transformation programme over the year, the risk was

reassessed and updated to focus on the technology landscape and raise its potential

impact given the large number of current systems and in-house ITcapabilities.

Risk 8 (Reputation risk):

The risk is deemed to have fallen in likelihood give the tighter narrative around

externalmessaging.

Risk trend

Likelihood has

stayed consistent

Likelihood

has increased

Likelihood

hasdecreased

Risk Description Risk response Risk trend

1. Macroeconomic headwinds Global 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 ‘scaled’ 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 ‘scaled’ clients

2. Operational decision making

andinternal efficiencies

During a period of financial and operational

transformation, inconsistent practices across the Group

during the transition period may potentially increase the

variability of forecasts

• Strengthening budgeting and forecasting governance including formal

review cycles, risk and opportunity reporting and accuracy metrics

• Improved data integrity and systems discipline across finance, operations,

HR and the adoption of utilisation/billability reporting

• Enhanced leadership oversight and accountability across client, growth

and operations teams

• Increased commercial rigour via refined go-to-market (GTM) strategies,

tighter pipeline management and aligned cost controls

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 21

Principal risks and uncertainties continued

Risk Description Risk response Risk trend

3. Talent lifecycle If there is inadequate management of the talent lifecycle,

from critical succession planning for key roles, through to

ensuring staff have the key skills in a rapidly changing

market, this could result in gaps, misallocation of staff

resource or loss of key talent

• Workday embedded as our core human resources (HR) platform to

support consistent performance and talent processes globally

• Manager enablement and structured performance and development

cycles (including growth conversations)

• Capability building through the School of AI and flagship leadership

development for senior leaders

• Ongoing talent reviews and succession planning for key roles with

regional HR and business leadership

• Regular review of compensation and incentive approaches to support

retention of critical talent

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 and investor requirements and expectations

• Compliance framework with an annual training schedule rolled out for

allstaff

• Minimum control set established to comply with the updated Corporate

Governance Code and formalise the link between risks and controls

• ESG SteerCo in place 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

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

• 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

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 22

Risk Description Risk response Risk trend

6. Business transformation If the evolution of the internal technology and data

landscape is not successfully streamlined, there could

bean adverse impact on costs, support and

internalefficiencies

• Establishing a global IT operating model to eliminate regional silos and

clarify global accountabilities

• Migration from fragmented data platforms to a single, unified global

data warehouse to create a ‘single source of truth’ for financial and

operationalreporting

• Appointing dedicated business systems ownership for critical platforms to

ensure data integrity at the source and enable future AI-driven efficiencies

• Executing a structured roadmap to sunset duplicated and manual legacy

systems, replacing them with automated, integrated enterprise solutions

• Utilising enterprise integration platforms to automate cross-functional

workflows, reducing manual data entry and increasing operational speed

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

• Strategy of increasing the number of ‘scaled’ 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 and clear

corporatemessaging

• Regular communication with investors and analysts through roadshows

and conferences

• Communications guidelines to ensure responsible and

consistentmessaging

• Use of trusted third parties to assist with timing and consistency

ofmessaging

Principal risks and uncertainties continued

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 23

Principal risks and uncertainties continued

Risk Description Risk response Risk trend

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, orregulatory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 rolled out for relevant areas of enhancement

• Endpoint protection, security and compliance improvements implemented

• Incident prevention, detection and treatment capabilities and third party

risk management enhanced

• Privacy policies, notices and procedures updated to meet regulatory

requirements and best practices

• Strengthened integration of Privacy by Design in business processes

• Privacy Champions Network updated to embed privacy best practice in

the business

• Continued personal data mapping and documentation enhancing across

business units and Monks.Flow

10. Competitive environment Increased competitive offerings and low barriers to entry

in the industry may impede new business opportunities

and/or erode margins

• Evolution of the Group’s service offering, ensuring that it is leading edge.

Current focus is on AI and our Monks.Flow solutions

• Three-year strategic planning process to identify opportunities and risks

• Ongoing investment in talent and technological tools to enhance the

Group’s differentiated offering

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 24

Principal risks and uncertainties continued

Viability Statement

In accordance with Provision 31 of the UK Corporate

Governance Code 2018, the Board of Directors of

Capital Group (the Group) has assessed the prospects

and viability of the Group over a period of three years

from 1January 2026. 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, which

identifies, evaluates and mitigates significant risks to the

business, including both internal and external factors,

withparticular attention to environmental risks. For further

information on the Board refer to page 76.

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 of

corporate 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 23.

In the downside scenario, the Group models a considerable

decline in demand during 2026 and 2027, resulting in

a significant 10% reduction in net revenue along with a

0.5% 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.

Additional information

Our business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 25

Principal risks and uncertainties continued

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 materially 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

or low-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

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 07 to 25 was approved by

the Board of Directors on 23 March 2026 and signed on its

behalf by:

Sir Martin Sorrell

Executive Chairman

23 March 2026

Radhika Radhakrishnan

Group Chief Financial Officer

23 March 2026

Additional information

Sustainability

Sustainability in action 27

2025 in brief 28

Our ESG strategy 29

Our value chain – impact model 30

Materiality assessment and outcome 31

Our Responsibility to the World 32

People Fulfilment 42

One Brand 47

Task Force on Climate-related Financial

Disclosures Report

Non-financial, sustainability and climate-related

information statement

Section 172(1) statement 61

Additional informationOur business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 26

Sustainability in action

2025 was

a year of

recalibration

“Regardless of shifts in

regulatory pace or external

pressure, we continue to

bring ESG into our decision

making, ensuring the

technology and creativity

we deploy create value for

our clients and contribute

positively to people and

the planet”

A year of recalibration

2025 was defined by the continued evolution of ESG from

a compliance-led activity into a framework for operational

insight. While shifting regulatory thresholds for our sector

changed the immediate reporting scope, the underlying

discipline has matured. ESG (Environmental, Social and

Governance) continues to grow from a reporting exercise

to an operating discipline, leading to transformation and

operational intelligence. Policies alone were insufficient;

the focus shifted towards proof through budget allocation,

accountable ownership and evidence of operational

transformation. As geopolitical tensions prioritised security

and data sovereignty, ESG competed more directly with

other strategic risks for executive attention.

While global ESG momentum has slowed, leadership for

change is emerging at regional and local levels. The future

of ESG will be shaped by sustained, jurisdiction-level

progress rather than grand global alignment. Our ESG

strategy will progress as initiated over five years ago and is

built upon three foundational pillars: Our Responsibility to

the World, People Fulfilment and One Brand. Read more on

pages 32 to 47.

Our Responsibility to the World (environment)

Sustainable work and workspaces

We accelerated our path towards net zero by 2040 by

achieving 31.7% absolute reduction in total greenhouse

gas emissions (market-based) compared with our 2022

baseline of our Science Based Targets initiative (SBTi)

approved targets. We drive sustainable outcomes through

industry-leading AI innovations for our clients.

People Fulfilment (social)

Our people and culture

In 2025, we prioritised workforce resilience amidst total

industry disruption. We navigated to an AI-first working

model by migrating talent from legacy workstreams into

high-value, tech-augmented roles. This ensures our global

talent pool is engineered for the future of tech and digital

production, maintaining our commitment to personal and

professional development through the taxonomy of talent.

This commitment is reinforced by our strategic investment

in continuous learning and AI-enabled upskilling, directly

addressing the rapid technological changes to ensure our

talent remains future-fit.

One Brand (governance)

Integration, communication and governance

Transitioning from intent to proof, we strengthened

our unitary governance, embedding accountable KPIs

and strategic budget allocation directly into our single

P&Lstructure.

Sustainability in action

Capital, operating as Monks, is dedicated to disrupting

legacy marketing and technology models through

innovation, agility and accountability. Our ESG strategy is

wired into our unitary structure, ensuring that sustainable

impact is woven into every client solution and serves our

people as the foundation of our shared global culture,

which enables us to empower brands to thrive responsibly.

Read more in our Monks ESG Report

Regina Romeijn

Global Head of ESG

Additional informationOur business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 27

2025 in brief

Our people

and culture

6,345

Total headcount

48/45/7

% Women/men/undeclared

36.9%

Women in executive roles

33.3%

Women on the S

Capital

Board

Our clients

+2.9%

For Good projects

+16.8%

Purpose-driven clients

11.1%

Projects for Purpose-driven clients

162

Awards won

Our communities

and environment

43.4%

Renewable energy in our own operations

Our broad range of stakeholders – representing diverse and sometimes competing interests – provide valuable

perspectives to our decision making. Integrating these perspectives is essential to executing our ESG strategy.

Below are 2025’s highlights, achieved together with several of our stakeholders: our communities, our people

andour clients.

cope 1

cope 2

cope 3

cope

, 2 & 3

0 20 40 60 80 100

42%

(2030)

21.1%

68.1%

42%

(2030)

90%

(2040)

31.7%

27.4%

25%

(2030)

Progress against targets

Target

Achieved 2022–2025

Additional informationOur business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 28

Our ESG strategy

Despite global trends towards ESG fatigue,

we recognise the opportunity that ESG

compliance is creating. By leveraging reporting

requirements to build foundational data

processes and shared accountability, we are

creating an intelligence layer across our unitary

structure. Continuing the transitioning of ESG

from a compliance burden into a proactive

governance engine allows us to move up the

maturity ladder, eventually utilising high-fidelity

data for more resilient decision making. Within

ESG, our focus remains on: Our Responsibility

to the World, People Fulfilment and One Brand.

These strategic areas of focus are tied to

executive remuneration as part of our incentive

programmes. Please see our performance

against our goals on pages 37 to 40.

Our ESG priorities are interconnected

by design. Sustainable work is rooted

in Environment because of our digital

decarbonisation work, and inherently

multi-dimensional: through client engagements

we drive inclusive social outcomes, embed

ethical AI and responsible marketing, and

generate environmental and social impact.

ESG governance is integrated into our overall

governance, risk, strategy and performance

frameworks, with clear executive and senior

accountability across each pillar, as set out

in the Governance section of this report and

our Task Force on Climate-related Financial

Disclosures (TCFD)-aligned disclosures.

Translating our ESG strategy into operational

reality in 2025 highlighted areas for continuous

refinement and focus. These areas of focus

are now integrated into our forward planning,

ensuring a continual refinement of our

interconnected ESG priorities through 2026.

Environment

Social

Governance

ESG Strategic commitment

Reach net zero greenhouse gas (GHG) emissions

across the value chain by 2040

Near-term targets

• Reduce absolute Scope 1 and 2 GHG emissions

42% by 2030 from a 2022 base year

• Reduce absolute Scope 3 GHG emissions 25%

during the same timeframe

Long-term targets

• Reduce absolute Scope 1, 2 and 3 GHG

emissions 90% by 2040 from a 2022 base year

• Create measurable positive impact through our

core business output 100% renewable energy

by2040

Invest in our taxonomy of talent (by utilising

Workday) to harmonise global job architecture to:

• support equitable access to opportunity

acrossregions

• invest in skills and leadership capabilities,

including AI-enabled learning

• embed consistent performance, development

and merit processes

Eliminate internal silos and establish a shared

corporate culture to deliver a seamless, integrated

and responsible global offering to our clients

Our Responsibility

to the World: We are

committed to delivering

positive impacts for people

and planet by managing

the environmental footprint

of our operations and

utilising our work as a

catalyst for positivechange

People Fulfilment: We are

committed to building

a global leadership

with a local workforce

that embraces diverse

perspectives, providing our

people with the tools and

training needed to foster

a culture that adapts to a

changing world

One Brand: We operate

through a unified brand

identity and a single P&L.

This unitary structure

provides the robust

governance necessary

to synthesise specialised

knowledge into a

seamless, responsible

global offering

• Increased data fidelity

and process maturity

• Geopolitical and

regulatory volatility

• Market sentiment and

ESG fatigue

• Financial connectivity

to non-financial metrics

• Adoption of and

engagement with new

systems and processes

• Rapid technological

change and skills

evolution

• Ensuring consistency

across regions

whilemaintaining

localrelevance

• Governance and

execution

• Decommissioning of

heritage infrastructure

• Standardisation

versusagility

Goals 2025 challenges

Additional informationOur business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 29

Our value chain – impact model

Our value chain reflects how we harness talent, technology

and data to deliver client value, while embedding climate

considerations, transition actions and sustainable practices

across our operations and broader value chain. Our impact

model maps how our activities, products and services

create specific, intended outcomes for our stakeholders.

As a predominantly digital, asset-light organisation, the

Group’s exposure to climate-related risks and opportunities

arises primarily through its people, digital infrastructure,

offices, suppliers and client-facing activities rather than

through physical production assets. This value chain

therefore provides the context for understanding where

climate-related risks, opportunities and transition actions

occur across upstream activities, own operations and

downstream client or supplier engagement.

1. Upstream

Key resources

Human capital

Our primary resource is our global,

decentralised talent pool of approximately

6,350 Monks. We rely on their creative and

technicalexpertise.

Intellectual and data capture

Our business runs on a purely digital

infrastructure, leveraging first-party data to

fuel content via our proprietary Monks.Flow

AIecosystem and strategic tech insights.

Social and relationship capital

We rely on deep, collaborative integrations

with industry leaders, todrive end-to-end

content supplychains.

Manufactured and financial capital

A global network of 40 offices across 33

countries and sustainable reinvestment under

our unified, single-P&L model.

Critical infrastructure providers

Reliance on global cloud service providers and

specialised software developers to maintain

digital reach.

3. Downstream

Shared value

Sustainable client transformation

Helping brands transition from legacy models to

AI supply chains, delivering cost reductions and

better cost-per-purchase.

Environmental decoupling in action

The Group achieved a 31.7% absolute

reduction in total GHG emissions since our

2022 SBTi baseline while maintaining

operational scale.

Low-carbon solutions

Providing clients sustainable alternatives,

suchas adaptive ad streaming that eliminates

data waste and cuts loading emissions,

andatoken-aware marketing AI ecosystem

thatwrites and organises prompts and agent

workflows toreduce token use and avoid

wastedcomputation.

Social and planet value

Generating positive societal impact through

For Good projects (6.4% of total revenue) and

community service hours (40.3% increase).

2. Own operations

The unitary platform

Integrated unitary operating model

Operating under a single P&L and unified brand, we

orchestrate work across tools and processes to improve

speed and quality.

AI-driven low-carbon workflows

Integration of AI processes to prioritise environmental

decoupling, such as agentic workflows for content

creation and remote production for live events.

Data and insights activation

Collecting, analysing and activating first-party data to

generate real-time insights that optimise creativity and

brand performance.

Creative and content production

Creating high-quality storytelling through our global

network powered by data-informed creativity and

sustainable production practices.

Risk, ethics and digital governance

Embedding ethical AI principles through our Global AI

Policy and maintaining ‘privacy by design’ to ensure

responsible innovation and regulatory compliance.

Additional informationOur business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 30

Materiality assessment and outcome

Assessment: validating our strategic focus

Since 2019, we have leveraged voluntary frameworks,

including the Global Reporting Initiative (GRI) and the

Sustainability Accounting Standards Board (SASB),

toguide our disclosures, while maintaining compliance

with the Sustainability Disclosure Requirements (SDR)

mandated by the FCA in the UK.

We continue to use materiality as a vital engagement tool

to ensure our strategy remains aligned with stakeholder

expectations.

In 2025, we conducted a targeted Materiality Survey to

capture sentiment from our core stakeholder groups:

clients, suppliers and our people. Participants ranked 10

material ESG topics derived from our 2024 materiality

assessment and provided feedback on emerging issues.

This process served to validate our existing strategic focus

and confirmed that our core commitments remain the

correct levers for thebusiness.

Outcome: foundational culture

and technological leadership

Our 2025 Materiality Survey highlights an operational

dependency between our internal culture and our external

delivery. While the rankings differ, they form a clear

sequence: the foundational stability, deemed material

by our people, is the prerequisite for the technological

leadership demanded by our clients.

Our people remain consistent in their focus on the work

environment, ranking working conditions, mental health

and wellbeing (1) and ethics and responsible business

practices (2) at the top. By prioritising ethics alongside

mental health, our people are demanding a workplace

that is both supportive and principled. We believe this

alignment is critical to maintaining a sustainable, high-

performance environment, ensuring Monks are equipped

to deliver responsible, tech-led innovation for the global

brands we serve. Conversely, clients and suppliers, our

external stakeholders, are focused on the output and

capability of the engine. Their top priorities, sustainable

innovation and technology (1) and talent development

and training (2), showthey look to us to lead the ethical

and sustainable transition into a new technological era

and emphasise the importance of training our talent and

investing in their development to continue thriving in this

fast-changinglandscape.

Materiality for MonksImmaterial Material

Materiality for external stakeholders Material

Our Responsibility to the World

People Fulfillment

One Brand: Governance

Climate change, net zero commitment

Working conditions, mental health and wellbeing

Talent development and training

Impact work, For Good work

Diversity, equity and inclusion

Ethics and responsible business practices

Sustainable sourcing

Privacy and data protection

Sustainable innovation and technology

Responsible marketing practices

Materiality matrix

Additional informationOur business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 31

Our Responsibility to the World: Sustainable work

Technological innovation currently moves faster than

the global understanding of its long-term societal and

environmental impacts. As a partner facilitating the

strategic transition to AI-driven models for our clients,

we recognise the responsibility inherent in rising

computational demands. We navigate this complexity

through proactive governance and agentic

engineering. By considering ESG matters as part of

foundational architecture, we ensure that rapid digital

progression is balanced with a disciplined approach

to ethical stewardship and operational efficiency.

Our Responsibility to the

World: Sustainable work

Monks’ sustainable work is inherently multi-dimensional:

through client engagements we embed ethical AI and

responsible marketing, drive inclusive social outcomes

andalign high-performance delivery with environmental

andsocial impact.

In 2025, Monks emerged as a global leader in AI. We were

honoured to be selected as The One Show’s inaugural

AI Pioneer Organization, and awarded the Business

Intelligence Group’s 2025 Artificial Intelligence Excellence

Award. At the core of our AI efforts is Monks.Flow, ourAI

ecosystem for marketing orchestration that reduces

wasted computation while limiting the environmental

impact as digital needs grow. By embedding environmental

considerations directly into brand identities and production

workflows, we ensure new digital ecosystems are equitable

and efficient, and we have a governance framework in

place that covers ethical and responsible marketing for

ensuring we are using the technology responsibly.

As a B Corp, we partner with organisations and support

initiatives that focus on making a positive difference

for people and the planet. To advance this mission, we

developed ‘For Good’ projects which are collaborations with

clients, NGOs and partners that leverage our creativity and

technology to deliver sustainable change and beneficial

outcomes. Client engagements that are structured to

deliver positive social and environmental outcomes are

delivered on a paid, pro bono, or discounted basis. This

approach includes a dedicated focus on Purpose-driven

clients, a segment we are committed to growing year on

year and we’ve made good progress over the past few

years. Purpose-driven clients are focused on a meaningful

mission beyond profit, embedding a core purpose (such as

societal or environmental impact) into their strategy, culture

and operations to create long-term value for stakeholders.

We believe that by helping Purpose-driven organisations

amplify their messages and scale their positive impact,

weare indirectly contributing to a better world.

Revenue coming from For Good projects rose 25.2%,

thepercentage of revenue from For Good projects grew

190 basis points, and the total number of For Good projects

increased by 2.9%. Although the volume of For Good

projects completed with commercial clients decreased

by 18.8% year on year, the related revenue increased by

18.7%, reflecting a higher average project value compared

to the prior year for commercial clients. In 2025 we

expanded our Purpose-driven clients base by 16.8% and,

versus the previous year when we saw a concentration of

Purpose-driven clients in the Asia Pacific region, our work

with Purpose-driven clients is now more evenly spread

across all four regions.

The hours our teams donated to community and charitable

organisations surged by 40.3% year on year, demonstrating

our continued commitment to supporting the communities

we operate in. These projects are often driven by the

interests and personal beliefs of our local Monks, guided

byour global values as outlined in the related policies.

Our performance 2025 vs 2024

2025 2024

% change

2025/2024

Total number of projects 5,834 6,872 (15.1%)

Total For Good projects 560 544 2.9%

Revenue from For Good projects £48,306,575 £38,581,276 25.2%

% Revenue from For Good projects/revenue 6.4% 4.5% 190 bps 

Purpose-driven clients 132 113 16.8%

For Good projects for Purpose-driven clients 439 395 11.1%

Revenue from Purpose-driven clients £31,426,662 £24,362,663 29.0%

% Revenue from Purpose-driven clients/revenue 4.2% 2.9% 130 bps

% Revenue from projects for alcohol and tobacco clients 2.2% 2.8% (60 bps)

Monetary donations to community and charity services

£25,222

(<0.01% of revenue)

£78,136

(0.01% of revenue)

(67.7%)

Voluntary hours donated to community and charitable organisations 4,468 3,18 4 40.3%

Note: The Group does not have any revenue from tobacco clients (2024: £nil).

Additional informationOur business Strategic Report Governance Report Financial statementsSustainability

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Our Responsibility to the World: Sustainable work continued

From service

provider to

operating

system:

redefining the

agency model

“We started last year by

focusing on how to help

our clients move from

Agencies to Agents, which

is shorthand for moving

them from siloed and

fragmented services to

running marketing systems

at scale. After a year at the

coalface, helping our clients

get post pilot, it’s never been

clearer that the technology

is ready. An organisation’s

ability to adopt and adapt

isthedifferentiator”

Leveraging AI as a force for good

It is clear that GenAI is poised to revolutionise industries.

As pioneers in agentic AI, we are setting the standard for

responsible deployment, embedding governance, oversight

and ethical guardrails into every solution. With increased

autonomy comes increased responsibility to prioritise

human oversight and to mitigate potential biases and risks.

This is a role and responsibility that we are dedicated to

delivering at the highest possible standards. Here are some

of the ways we ensure we are using AI as a force for good.

Human-in-the-loop governance

At every stage, our human creative and strategic teams act

as the essential control layer, operating within a rigorous

governance model anchored by the cross-functional AI Core

team (Legal, Data Privacy and Information Security). Clear

review processes, with gates for legal clearance and brand

safety, ensure that AI serves as a tool to augment, not

replace, the informed, ethical judgment of our experts.

Organised training equips our teams to operate in our

AI-forward culture: School of AI offers tailored learning

paths; the weekly series 15 Minutes of Now explores AI tools

and trends across business, creative and tech applications;

AI Power Hour provides on-site workshops for expert

and in-person help. Monks’ AI Ambassadors experiment

with tools and processes to improve workflows and solve

challenges, while the #ai-collective – a Slack group of nearly

2,000 Monks – connects peers for real-time problem

solving anddiscussion.

Ethical data and sourcing

We recognise the risks of models trained on unvetted internet

data and we strongly favour tools that use proprietary,

transparently sourced and legally permissible datasets.

We also apply a rigorous Vendor Security Assessment

(VSA) process to demand contractual assurances from our

technology partners (including NDAs and DPAs), protecting

our clients from copyright and data privacy risks.

Read more in our Monks ESG Report

Wesley ter Haar

Chief AI Officer

Additional informationOur business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 33

Active bias mitigation

In the past year alone, the conversation about bias has

shifted to recognise that models can inherit bias from

human training data. We proactively address these

biases, aligningour work with broader DEI (diversity,

equity and inclusion) commitments. Our teams undergo

mandatory training and actively work to identify and correct

stereotypical or inequitable representations in AI-generated

content, while ensuring the work we produce authentically

reflects the diverse audiences our clients serve.

Sustainable programming

Over the past year, early concerns about AI’s environmental

impact have eased: research from Google and others

indicates AI usage has limited effect. Yet production-level

scaling necessitating large data centres remains a key

sustainability concern. Partnering with global brands,

wedistinguish pilot-scale testing from production scaling.

Pilots can favour speed over token efficiency, scaling

demands operational efficiency. Within Monks.Flow,

our AI-powered platform, we’ve adopted a token-aware

architecture, writing and organising prompts and

agent workflows to use fewer tokens and avoid wasted

computation. As digital ambitions grow, this disciplined

approach manages environmental footprint.

Innovation at speed and scale

As part of our ESG commitment, we have vowed to become

a catalyst for change in our industry. While ESG is often

sidelined in high-velocity technology cycles, the transition

to AI represents the critical moment to embed impact

on people and planet into the foundational architecture

of creative models and workflows. Realindustry

transformation is only possible when responsibility is

engineered from the start. By prioritising sustainability

by design in our initial development, we ensure that

new digital ecosystems are built on an equitable and

efficientfoundation.

Our Responsibility to the World: Sustainable work continued

In every industry there are companies that adopt the latest

innovations and technologies to change how they operate –

the speed, scale and cost at which they work – to help them

meaningfully pull away from competitors and there is a very

realistic case to be made that those who adopt, adapt and

evolve, win; those who don’t, fall behind.

We report here on just some of the ways we are changing

the way the work is done to ensure our clients are on the

winning side of the equation.

Monks.Flow: The agentification of

(almost)everything

Historically, the biggest barrier to ongoing creative

effectiveness has been fragmentation, because signals

are trapped in silos and reused too slowly. Monks.Flow

unifies planning, activation, creation, measurement and

optimisation with API pipelines, performance models

and fatigue signals, and a generative layer turns those

signals into action to close the loop for better efficiency

and outcomes. Agents sit at the operational core: they

consume unified signals, run workflows, generate creative

variants, trigger rotations and update metadata – or route

items for human review. Built for scale, compliance and

control, Monks.Flow is a subscription to innovation –

extensible, integrates with existing tools, avoids vendor

lock-in, andunifies planning, production and media into

an agent-driven pipeline for autonomous execution and

measurable results.

Compress time, cost and complexity, all in one flow

Monks.Flow unifies

the marketing

process into

intelligent, connected

workflows powered

by agentsthat learn

the brand,goals

andguardrails.

Deliver

AI Guardianship

Automated QA validates

every single asset

before it goes live.

Sentinel checks every

file against specific

market rules to ensure

100% compliance and

brand safety.

Create

Virtual Production

Generative AI creates

studio-quality visuals

without the photoshoot.

Monks.Flow produces

high-fidelity fragrance

assets at a fraction of

the cost and time of

traditional production.

Scale

Automated Adaptation

Intelligent workflows

resize, translate,

and version assets

overnight. Asset

Planner and Translation

Agents automate the

heavy lifting of adapting

500assets for every

local market.

Plan

Instant Strategy

AIAgents turn cultural

trends into actionable

briefs instantly.

Monks.Flow scans

real-time data to

find the “Big Idea”

without the weeks of

manualresearch.

Additional informationOur business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 34

Our Responsibility to the World: Sustainable work continued

Our partners: Helping us optimise resources

Strategic partnerships embed computational efficiency and

data governance into our agentic workforce architecture.

And by designing for precision, ESG is institutionalised as

an operational discipline, optimising resource use, cutting

digital waste and ensuring responsible data practices.

Collaboration with NVIDIA deployed high-performance

infrastructure to power the Monks.Flow ecosystem.

Leveraging NVIDIA DGX systems and advanced AI agent

architectures accelerated the move from manual production

to agentic orchestration at enterprise scale, processing

complex datasets and high-fidelity creative outputs with

unprecedented speed and precision, while focusing on

computational efficiency.

Monks.Flow operates on a cloud-native infrastructure with

support for multiple cloud providers, AWS and GCP (Google

Cloud Platform) to name two, with Azure coming in 2026.

The partnership with Google Cloud integrated Vertex AI

and advanced LLM capabilities into Monks.Flow, creating

a hardened infrastructure that prioritises data sovereignty

and security. Using Google’s cloud-native tools powers the

Real-Time Brands model, enabling dynamic adaptation of

creative messaging from live digital signals and advanced

Answer Engine Optimisation (AEO), shifting brand

discoverability to AI-driven insights. This integration builds

a resilient, secure and scalable digital foundation aligned

with governance and operational efficiency.

Monks and AWS integrate cloud-native services,

advertising and martech APIs and generative AI to build

scalable marketing systems. We convert large datasets into

actionable insights; deploy ML models for UGC platforms,

conversational interfaces and avatar services; and optimise

broadcast pipelines for media and sports. Our rapid

application development and DevOps practices ensure

automated CI/CD, infrastructure-as-code and efficient,

cost-effective deployments.

Awards for innovation

AI Pioneer Organization,

The One Show

Artificial Intelligence

ExcellenceAwards,

BusinessIntelligenceGroup

Experimentation Partner of the

Year,Optimizely

Game Changer: Sustainable

Product Innovation, Corporate

StarAwards

Best Marketing & Creative AI

Solution, Global Generative

AIAwards

The partnership between Monks and Amplitude led to

a shift from static performance reporting to a dynamic

closed-loop system enabling real-time user behaviour to

feed directly into successive AI-driven creative iterations.

By leveraging Amplitude’s behavioural data layer, the

orchestration model moves from a linear production

workflow to a continuous optimisation cycle.

This integrated ecosystem provides an operational

benchmark for Agentic Orchestration, using live digital

signals to inform the automated content supply chain.

The resulting synergy demonstrates the maturation of the

One Brand data strategy: moving the value proposition

from volume production to the delivery of high-fidelity,

data-validated outcomes at the speed of culture.

LiveVision™: AI video processing

Developed using NVIDIA technologies, this deployable

AI solution enables intelligent automation through video

inference, allowing brands to drive actions based on

visual data from a live feed. LiveVision analyses video as

it happens, then talks to the rest of a broadcast stack to

trigger creative decisions, allocate wireless resources and

tag footage automatically. What once took hours can now

happen instantly, transforming an archive into a searchable

database of moments and metrics. Broadcasters get

up to 50% faster live switching, while reducing manual

intervention, infrastructure costs and operational risk

– all while increasing personalised asset creation 100x

at scale. The solution debuted at the 2025 International

Broadcasting Convention (IBC), where it received the

Game-Changer Sustainable Product Innovation award.

Additional informationOur business Strategic Report Governance Report Financial statementsSustainability

Capital plc Annual Report and Accounts 2025 35

Amsterdam Museum

Amsterdam in Motion:

a city brought to life

Curated by the Amsterdam Museum,

this permanent immersive experience,

a compelling audiovisual journey of

Amsterdam’s vibrant past and present,

features the world’s largest multimedia city

maquette. Monks led the experience strategy,

creative direction and concept development,

crafted the name and brand identity, and

produced the show. We also developed the

teaser website and supported fundraising

efforts for this non-profit initiative.

100WEEKS

Empowering women

through direct support

When women are empowered to make their own

choices, families eat better, children stay in school

and communities thrive. This was the focus of a

short documentary we launched in collaboration

with 100WEEKS that followed the transformative

journeys of three Rwandan women who received

direct cash, and decided how to invest it for

themselves, for 100WEEKS – challenging

traditional aid methods to foster lasting change.

Centre for

Community Initiative

My First Voice

In collaboration with the Centre for Community

Initiative in Northeast India, Monks developed

My First Voice, an AI-powered solution

that turns children’s non-verbal sounds

into personalised speech (while preserving

vocal identity and accents) in under five

minutes. So far, 10 children have spoken for

the first time – improving social interaction,

reducing frustration and promoting inclusion

–withplans to scale across India.

Google Arts & Culture

Forest Listeners App

x COP30

Developed in collaboration with Google Arts

& Culture, Google DeepMind and WildMon,

the app utilises AI to pre-group thousands of

rainforest audio recordings, inviting people

to identify animal calls in Brazil’s Amazon

and Atlantic Forests. Interactions train AI

models, supporting biodiversity monitoring

and rainforest restoration. Weworked on the

concept, through prototype, to final launch,

includingUX/UI design, the WebGL digital

forest and interactive quizzes.

Our Responsibility to the World: Sustainable work continued

Read more here Read more here

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Our Responsibility to the World: Sustainable workspaces

Sustainable workspaces and global

GHGfootprint

This section details our operational environmental impact,

specifically the footprint of our physical facilities, global

travel and the services we consume. We are committed

to the Paris Agreement and The Climate Pledge, with a

clear trajectory towards net zero by 2040 driven by our

SBTi-validated targets.

Using our 2022 baseline as a benchmark, our reduction

strategy focuses on three critical levers:

• Renewable energy and green offices: We prioritise energy

efficiency and the transition to fossil-fuel-free heating

to minimise our dependence on fossil fuels across our

globaloperations.

• Smarter business travel: Business travel remains

essential for collaboration, clientdelivery and rapid

capability transfer in a fast-evolving, AI-driven industry.

Our focus is on improving travel efficiency through

smarter deployment of regionally embedded expertise,

clearer decision frameworks, better data capture and

theprioritisation ofhigh-impact journeys.

• Supply chain decarbonisation: Scope 3 emissions remain

our most significant reporting challenge due to limited

upstream visibility. We aim to drive greater transparency

by formally requesting CO₂ reporting of our largest IT

suppliers and integrating their emissions data into our

reporting framework.

Results

Our objective remains net zero by 2040. Since our 2022

base year, we have delivered a substantial reduction

in our carbon footprint. Scope 1 emissions declined

from 3,611 tCO₂e to 1,152 tCO₂e, while global Scope

2 emissions (market-based) decreased to 855 tCO₂e.

Scope3 emissions also fell significantly compared with

our baseline, declining 27.4% from 27,520 tCO₂e in 2022

to 19,989 tCO₂e in 2025. These reductions largely reflect

the consolidation of legacy offices and the continued

optimisation of our operational footprint.

Short-term data shows a clear tension: despite a strong

2022–2025 performance profile, total global emissions

rose 8.8% year on year. This increase, driven by employee

commuting and the compute demands of our AI strategy,

indicates our decarbonisation progress needs a slight

course correction, having deviated from a steady path to

net zero by 2040. To that end, we will conduct a data-driven

reassessment of our emissions with the understanding

cope 1

cope 2

cope 3

cope

, 2 & 3

0 20 40 60 80 100

42%

(2030)

21.1%

68.1%

42%

(2030)

90%

(2040)

31.7%

27.4%

25%

(2030)

Progress against targets

Target

Achieved 2022–2025

Renewable

electricity

100%

(2040)

43.4%

that our commercial growth in AI and expanded global

client engagement do not absolve us of our long-term

climate mandates. Please read more on pages 39 to 40

forfurtherbreakdown.

Scope 1 emissions decreased by 10.9% across all

categories. In 2025 we closed offices known for high

gas consumption and refrigerant leaks, and consolidated

several offices into energy-efficient locations. Emissions

from natural gas consumption declined significantly by

50.0%. While refrigerant leaks decreased by 5.6% year

on year, it remains our most significant Scope 1 challenge

at 1,045 tCO₂e and an area of focus for our global

facilitiesteams.

In the UK, our Scope 1 emissions remained broadly stable

at144 tCO₂e, reflecting minimal change in gas consumption

and refrigerant-related emissions across the portfolio.

Scope 2 emissions (market-based) decreased by 14.9%.

The primary factor was the significant reduction in

purchased electricity (market-based), which decreased

by18.2%

Our purchased green electricity posted a modest

increase of 130bps. The percentage of offices utilising

renewable energy remains relatively stable. Our overall

electricity consumption dropped by 6.6% while the share

of renewable electricity increased slightly from 42.1%

to 43.4%. The 112.0% increase in reported heating

consumption represents a gain in data fidelity rather than

an operational shift.

In the UK, our Scope 2 emissions have been affected by

our Return to Office (RTO) policy, resulting in higher office

utilisation, leading to a critical increase in electricity usage

in one of the London offices. This significantly impacted

total UK emissions.

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Capital plc Annual Report and Accounts 2025 37

Scope 3 emissions increased by 11.5% and represent a

major contribution to our 2025 GHG footprint in 2025.

Theincrease was primarily driven by higher emissions from

purchased goods and services, fuel- and energy-related

activities and employee commuting. Purchased goods

and services rose 9.5% year on year, reflecting changes

in procurement mix and greater use of compute-intensive

digital infrastructure and cloud-based services that

support our technology and AI capabilities. As a digital-first

organisation, emissions across the value chain are our most

complex decarbonisation challenge and demand improved

supplier transparency and category-level visibility.

While we remain resolute in our 2040 net zero mandate,

Scope 3 is our largest operational hurdle. Although

procurement efficiencies in 2025 reduced overall

spend, consumption shifted toward high-emission,

compute-intensive services required for large-scale

AI modelling, increasing our hosting-related emissions

despitelower costs.

Our Responsibility to the World: Sustainable workspaces continued

In 2025, we started looking more granularly into our AI

suppliers. Our assessment revealed that many emerging

AI providers have not yet developed CO₂ disclosures.

Byformally requesting CO₂ reporting from these suppliers

and integrating that requirement into our procurement and

engagement criteria, we can drive greater transparency

and bring them into a reporting ecosystem over time.

Thisapproach both protects our climate risk exposure

and strengthens supplier accountability as these

businessesscale.

We saw a 0.1% drop in absolute business travel emissions

but an increase in emissions per employee. Higher-than-

expected in-person engagement in high-growth markets

drove much of the rise. Air travel fell year on year, while

land travel nearly doubled, indicating our ‘air only when

necessary’ approach is having an effect as we shift to

lower-carbon travel.

Employee commuting emissions increased significantly,

rising 226.6% year on year, primarily due to the

implementation of our RTO policy across several locations.

Physical collaboration remains an important component

of our operating model, particularly in creative and

technology-driven environments. However, we recognise

the additional emissions pressure created by increased

commuting activity. It is also important to note that the

response rate to the 2025 employee commuting survey was

21%, compared with more than 40% in the previous year.

The lower response rate required greater extrapolation in

the calculation methodology and may partially contribute to

the scale of the reported increase.

Methodology, collection of data and reporting

Our greenhouse gas reporting follows the GHG Protocol

Corporate Standard and, for the UK, meets SECR

requirements. We use an Operational Control approach

for the organisational boundary and report global GHG

emissions against a 2022 base year to enable multi-year

performance tracking. UK emissions disclosures are

presented year on year to align with UK regulatory

requirements. Carbon intensity is reported as tCO₂e per

employee (total global headcount, excluding contractors

and contingent workers) as our primary intensity metric

toensure comparability across reporting periods.

For Scope 2, we disclose both location-based and market-

based emissions to reflect grid-average factors and the

effects of renewable electricity procurement. Energy

consumption data is prioritised using a hierarchy. Primary

utility data from meters or landlord invoices is used where

available. In co-working or serviced-office locations with

no actual data, we estimate using historical records or

average consumption factors adjusted for headcount and

occupancy. UK scope 1 and 2 energy data are 100% based

on actual utility information. Emission factors are taken

primarily from the UK Government DEFRA 2024 dataset

and supplemented where needed by the latest IEA datasets

for international electricity factors.

Scope 3 reporting follows the GHG Protocol Corporate

Value Chain (Scope 3) Standard. A comprehensive

screening of all 15 categories conducted in 2024 identified

six material categories for our digital, talent-led business

model: purchased goods and services (including high-

intensity AI/cloud hosting), capital goods, fuel- and

energy-related activities (FERA), waste, business travel and

employee commuting. These categories were unchanged

in 2025, as our reporting boundary remained relatively

consistent. The remaining Scope 3 categories, including

upstream transportation and distribution, downstream

transportation and distribution, processing of sold products,

use of sold products, end-of-life treatment of sold products,

leased assets, franchises and investments, havebeen

assessed and are currently considered not material based

on their limited relevance to the Group’s operations and

overall emissions profile.

Scope 3 breakdown

Purchased goods

and services

Fuel and energy

-related activities

Waste generated

in operations

Business travel

(land and air)

4,730

Employee

commuting

2,342

Capital goods

503

11,955

4,730

2,342

503

375

11,955

375

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Our Responsibility to the World: Sustainable workspaces continued

Emissions profile: Global and UK, 2022 to 2025

Global UK

2025 2024 2023

Base year

2022

% change

2025/2024 2025 2024

% change

2025/2024

Employees 6,345 7,16 6 7,707 8,891 (11.5%) 245 304 (19.4%)

Total tCO

e (market-based) 21,996 20,221 25,654 32,215 8.8% 1,442 1,235 16.8%

Carbon intensity tCO

e per employee 3.5 2.8 3.3 3.6 25.0% 5.9 4.1 43.9%

Streamlined energy and carbon reporting (SECR): Global and UK operations, 2025 vs 2024

Global gas

consumption 2025

Global gas

consumption 2024

Global gas

consumption %

change 2025/2024

UK gas consumption

2025

UK gas consumption

2024

UK gas consumption

% change 2025/2024

kWh 463,881 916,14 3 (49.4%) 11,3 87 13,043 (12.7%)

kgCO

e 84,16 0 167,8 5 5 (49.9%) 2,110 2,390 (11.7%)

kWh/Employee 73 128 (43.0%) 47 43 9.3%

kgCO

e/Employee 13 23 (43.5%) 9 8 12.5%



Global electricity

consumption 2025

Global electricity

consumption 2024

Global electricity

consumption %

change 2025/2024

UK electricity

consumption 2025

UK electricity

consumption 2024

UK electricity

consumption %

change 2025/2024

kWh 3,653,615 3,911,480 (6.6%) 47,0 6 3 24,444 92.5%

kgCO

e 802,213 980,029 (18.1%) 11,800 1,934 510.1%

kWh/Employee 576 546 5.5% 192 80 140.0%

kgCO

e/Employee 126 137 (8.0%) 48 6 700.0%

Additional informationOur business Strategic Report Governance Report Financial statementsSustainability

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Our Responsibility to the World: Sustainable workspaces continued

Emissions breakdown by scope: Global and UK, 2022 to 2025

Global tCO

e UK tCO

2025 2024 2023

Base year

2022

% change

2025/2024 2025 2024

% change

2025/2024

Scope 1

Natural gas – stationary combustion 84 168 376 1,682 (50.0%) 2 2 –

Company leased cars – mobile combustion 23 18 45 89 27.8% – – –

Refrigerant leakages – fugitive emissions 1,045 1,107 2,343 1,840 (5.6%) 142 142 –

Total Scope 1 1,152 1,293 2,764 3,611 (10.9%) 144 144 0



Scope 2  

Purchased heat and steam

53 25 22 34 112 .0%  – – –

Purchased electricity – Grey (market-based) 802 980 922 1,050 (18.2%) 12 2 500.0%

Purchased electricity – Grey (location-based) 1,143 1,295 1,538 N/A (11.7%) 8 5 60.0%

Green electricity (% of total) 43.4% 42.1% 45.0% 57.0% 130 bps 40.4% 79.6% (3,920 bps)

Total Scope 2 (market-based) 855 1,005 944 1,084 (14.9%) 12 2 500.0%

Total Scope 2 (location-based) 1,19 6 1,320 1,560 N/A (9.4%) 8 5 60.0%

 

Total Scope 1 & 2 (market-based) 2,007 2,298 3,708 4,695 (12.7%) 156 146 6.8%

Total Scope 1 & 2 (location-based) 2,348 2,613 4,324 N/A (10.1%) 152 149 2.0%

 

Scope 3  

Purchased goods and services

11,955 10,918 13,987 15,881 9.5% 461 463 (0.4%)

Capital goods 503 1,117 1,359 4,200 (55.0%) 19 47 (59.6%)

Fuel and energy-related activities 375 299 567 1,056 25.4% 4 1 300.0%

Waste generated in operations 84 139 93 342 (39.6%) 2 3 (33.3%)

Business travel (land and air) 4,730 4,733 5,169 2,747 (0.1%) 764 549 39.2%

Employee commuting 2,342 717 771 3,294 226.6% 36 26 38.5%

Total Scope 3 19,989 17,92 3 21,946 27, 520 11.5% 1,286 1,089 18 .1%

Total GHG emissions (market-based) 21,996 20,221 25,654 32,215 8.8% 1,442 1,235 16.8%

Total GHG emissions (location-based) 22,337 20,536 26,270 N/A 8.8% 1,439 1,238 16.2%

Note:

1. Purchased goods and services includes water usage. Global tCO₂e for 2025 is 5.29 (2024: 4.00) and UK tCO₂e for 2025 is 0.06 (2024: 0.02).

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Our Responsibility to the World: Sustainable workspaces continued

Clothes swap

in Amsterdam

and Hilversum

Swap. Shine. Repeat. Our clothing

swap initiative is giving used clothes

a second life and our Monks a fun

wayto reduce waste!

Delivering Joy

in Bogotá

Through our Joy Loops initiative, our team in

Bogotá came together to collect and wrap

toys for children in underserved communities.

What started as a simple idea became a shared

moment of care, connection and collective effort

for the communities that continue to inspire us.

Disposing of

electronics responsibly

Our offices in Brazil partner with local organisations

to dispose of electronics responsibly in cities

where waste management from the government

doesn’t exist. São Carlos and Votorantim offices

partner with local NGO Ecobraz Emigre and

SãoPaulo teamed up with Ingram Micro to

managetheprocess.

Pollinating the

urban landscape

Our building management in New

York partnered with urban beekeeping

company Alvéole to install and maintain

a honeybee hive on the roof, helping

to pollinate the urban landscape, while

educating tenants on the important role

honeybees play in our ecosystem.

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“Our vision of the future is one

where excellence and inclusivity aren’t

competing priorities, they’re inseparable.

We’ve worked to democratize access to

cutting-edge skills training and empower

local teams to drive change in ways that

matter to their communities. Whether

developing the next generation of leaders

or supporting social causes that reflect

our values, we’re focused on building a

workforce that doesn’t

just adapt to change,

but helps shape it”

Claire Elowitt

SVP, Global People

Operations & Talent

People Fulfilment

We accelerated the transformation of our talent

model to align with our AI-first strategy, redefining

workstreams, roles and core competencies to lead in a

technology-led era. By integrating AI-driven efficiencies

across our unitary structure, we transitioned away

from legacy, manual-intensive roles towards a leaner,

higher-impactorganisation.

While this structural refinement resulted in a reduction of

headcount within legacy operational areas, it has moved

us beyond traditional agency models towards a high-agility

environment where inclusive excellence is powered by

AI-literacy and cognitive diversity. By democratising access

to advanced training, we have empowered our Monks to

evolve their mindset and capabilities, ensuring our talent

pool remains as transformative and efficient as the digital

solutions we deliver to our clients.

Our representation

Our inclusive talent strategy ensures our leadership ranks

mirror the global markets we disrupt. We continue to

see steady, sustainable growth in the representation of

women across the Group. In 2025, women’s representation

within management increased by one percentage point,

bringing the global total to 47.6% of all managers –

reflecting our ongoing commitment to building a strong,

high-performance talent pipeline. Our representation

Our people progress 2025 vs 2024

Total

2025

Women

2025

Men

2025

Undeclared

2025

Total

2024

Women

2024

Men

2024

Undeclared

2024

Employees 6,345 47. 8% 45.3% 6.9% 7,16 6  48.6% 47.7% 3.7%

Part time 1.2% 1.7%   

Full time 98.8%    98.3%   

Permanent contract 95.4%    95.2%   

Temporary contract 4.6%    4.8%   

% of turnover per total

employees by gender

38.1% 46.9% 46.8% 6.3% 28.3% 46.6% 47.3% 6.1%

Covered by collective

bargain agreement

35.7% 30.3%   

Absenteeism in the

Netherlands

2.3% 3.5%   

Women 47.8

Men 45.3

Undeclared 6.9

Women

Men

Undeclared

Gender balance of global workforce 2025

of women to men remained consistent year on year and

aligned with the industry despite structural shifts in our

global workforce. While slight declines were reported in

thepercentages of both women (47.8%) and men (45.3%),

it is feasible that it is partly due to the proportion of Monks

reporting as ‘undeclared’ nearly doubling year on year.

People Fulfilment

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