Sir Martin Sorrell makes dramatic comeback with Derriston Capital after leaving WPP

Advertising guru to return to stock market with new entity, S4 Capital, weeks after sensational departure

The 73-year-old left WPP last month following allegations of personal misconduct which he denied (Reuters)

Sir Martin Sorrell is to make a dramatic return to the advertising industry, pumping £40m into a shell company called Derriston Capital, just weeks after sensationally quitting as boss of ad giant WPP.

The advertising guru will use Derriston to buy S4 Capital, a new firm he established to launch his comeback to the London stock market.

Derriston, which has been listed since 2016, will then be renamed S4 Capital, with Sir Martin becoming executive chairman.

This type of deal, known as a reverse takeover, allows a newly established company to quickly obtain a stock market listing.

It comes after the 73-year-old left WPP last month following allegations of personal misconduct which he denied.

WPP, which Sir Martin founded 33 years ago, carried out an inquiry into allegations that he misused company funds. Details of that investigation were never revealed but the company’s board said the amounts involved were “not material”.

Sir Martin said S4 Capital aimed to build a “multi-national communication services business”.

“There are significant opportunities for development in technology, data and content. I look forward to making this happen.”

S4 has raised a further £11m through a group of institutional investors including Lombard Odier, Miton, RIT Capital Partners, Schroders and Toscafund.

In total, investors are willing to commit up to £150m to fund new purchases by S4, the company said. A strategy of growing through acquisitions would be similar to that pursued by Sir Martin at WPP.

Sir Martin has been a key figure in the advertising industry for several decades, building up an empire from scratch at WPP that employs more than 200,000 people.

He has attracted admiration for his business achievements but also criticism over his pay.

In 2016 he collected £48m, a 31 per cent drop on the £70.4m he was awarded the year before.