S4Capital’s share worth headed sharply downwards this morning following a superb kicking within the influential UK Sunday Instances yesterday (subscription required.)

‘How chaotic accounting engulfed Sir Masrtin Sorrell’s S4 Capital empire’ was the headline, referring to the primarily book-keeping issues that led auditor PWC to refuse to log off S4’s accounts on two events (they’re now on the market.) Sorrell himself has admitted the accounting points are “embarrassing” and has promised to beef up S4’s finance division.

Simply as damaging have been the recommendations that Sorrell continues to be obsessed by searching for revenge on WPP – the corporate he based and which kicked him out – and that MediaMonks, now the umbrella model for S4’s actions, was modelling itself on fabled advert collection Mad Males.

S4 has but to reply and, likely, is speaking to its legal professionals as Sorrell is unlikely to take this mendacity down. Present and potential purchasers will clearly be rattled as, clearly, are shareholders. S4’s worth has greater than halved for the reason that accounting saga started.

Quick-growing firms – and S4/MediaMonks has actually been probably the most acquisitive within the advert area over its nearly 4 years in existence – typically endure rising pains. However, this spat apart, S4/MediaMonks now has to indicate it has different arrows in its quiver except for a bulging cheque e-book. It has to ship for its intensive shopper listing for a begin, notably BMW which it gained a yr or so in the past.