News

Ad giant WPP sees profits sink amid restructuring costs

Ad giant WPP sees profits sink amid restructuring costs
Business
Ad giant WPP has seen profits drop sharply as it continues to restructure the business following former boss Sir Martin Sorrell s abrupt exit last year.

Sir Martin quit after allegations of personal misconduct, which he denied.

Pre-tax profits at the firm fell almost a third last year to £1.46bn, a drop it blamed largely on restructuring costs.

WPP also reiterated 2019 would be "challenging, particularly in the first half" as client losses from last year continues to weigh on the business.

Despite the profit fall, the firm s performance was at the upper end of the guidance it provided last year, helping to boost its shares 9% in early trading.

Liberum analyst Ian Whittaker said last year s results were "slightly better than expected", but said the firm s commentary on 2019 was also more positive than expected.

New boss Mark Read said the firm was at the start of a "three-year turnaround plan".

"It s early days in what we need to do but I would say the initial signs are promising," he told Reuters.

The British firm - which owns major agencies such as Ogilvy and JWT - has been selling off assets to raise money. It said it had sold 36 divisions since last April, helping to strengthen its balance sheet.

Founded as a holding company in 1986, WPP s operations today span creative agencies, public relations, consultancy and data analytics.
Read more on bbc.com
News Topics :
RELATED STORIES :
Business
Sir Martin, 73, the driving force behind 33 years of dealmaking at WPP, stepped down in April after the board investigated claims of misconduct. Confirmation of the Derriston deal, first...
Business
More than one in five shareholders at advertising giant WPP have voted against chief executive Sir Martin Sorrell s £48m pay package. The move makes it the seventh year in...
Business
Sir Martin Sorrell has seen off competition from WPP, the firm he ran for three decades, with the first acquisition for his new rival venture. S4 Capital s purchase of...
Business
Liberal Democrat leader Sir Vince Cable says new claims about Sir Martin Sorrell mean WPP must come clean over his exit from the advertising giant. It follows reports a WPP...
Business
A year after Sir Martin Sorrell resigned as head of the advertising giant WPP he will still receive shares worth £2.13m from the company. The pay out is from WPP s...