REG - WPP PLC - 2016 Interim Results <Origin Href="QuoteRef">WPP.L</Origin> - Part 2
24/08/2016 07:06
- Part 2: For the preceding part double click ID:nRSX9650Ha
same time, we will concentrate on meeting
our operating margin objectives by managing absolute levels of costs and increasing our flexibility in order to adapt our
cost structure to significant market changes and by ensuring that the benefits of the restructuring investments taken in
2014 and 2015 continue to be realised. The initiatives taken by the parent company in the areas of human resources,
property, procurement, information technology and practice development continue to improve the flexibility of the Group's
cost base. Flexible staff costs (including incentives, freelance and consultants) remain close to historical highs of over
7% of net sales and continue to position the Group extremely well should current market conditions deteriorate.
The Group continues to improve co-operation and co-ordination among its operating companies in order to add value to our
clients' businesses and our people's careers, an objective which has been specifically built into short-term incentive
plans. We have, in addition, decided that an even more significant proportion, one-half, of operating company incentive
pools are funded and allocated on the basis of Group-wide performance in 2016 and beyond. Horizontality has been
accelerated through the appointment of 48 global client leaders for our major clients, accounting for approaching one third
of total revenue of over $19 billion and 19 country and regional managers in a growing number of test markets and
sub-regions, amounting to about half of the 113 countries in which we operate. Emphasis has been laid on knowledge-sharing
in the areas of media investment management, healthcare, sustainability, government, new technologies, new markets,
retailing, shopper marketing, internal communications, financial services and media, sport and entertainment. The Group
continues to succeed, in co-ordinating investment geographically and functionally through parent company initiatives and
winning Group pitches, despite one or two recent disappointments. For example, the Group has been very successful in the
recent wave of consolidation in the fast-moving consumer goods, travel, pharmaceutical and shopper marketing industries and
the resulting "team" pitches. Whilst talent and creativity (in its broadest sense) remain the key potential differentiators
between us and our competitors, increasingly differentiation can also be achieved in three additional ways - through
application of technology, for example, Xaxis and AppNexus; through integration of data investment management, for example,
Kantar and comScore; and lastly investment in content, for example, Imagina, Vice, Refinery 29, Truffle Pig, Media Rights
Capital, Fullscreen, Indigenous Media, China Media Capital, Chime and Bruin.
Our business remains geographically and functionally well positioned to compete successfully and to deliver on our
long-term targets:
n Revenue and net sales growth greater than the industry average
n Improvement in net sales margin of 0.3 margin points or more, excluding the impact of currency, depending on net sales
growth and staff cost to net sales ratio improvement of 0.2 margin points or more
n Annual headline diluted EPS growth of 10% to 15% p.a. delivered through revenue growth, margin expansion, acquisitions
and share buy-backs
For further information:
Sir Martin Sorrell }
Paul Richardson }
Lisa Hau } +44 20 7408 2204
Feona McEwan }
Chris Wade }
Kevin McCormack }
Fran Butera } +1 212 632 2235
Juliana Yeh +852 2280 3790
www.wpp.com/investor
This announcement has been filed at the Company Announcements Office of the London Stock Exchange and is being distributed
to all owners of Ordinary shares and American Depository Receipts. Copies are available to the public at the Company's
registered office.
The following cautionary statement is included for safe harbour purposes in connection with the Private Securities
Litigation Reform Act of 1995 introduced in the United States of America. This announcement may contain forward-looking
statements within the meaning of the US federal securities laws. These statements are subject to risks and uncertainties
that could cause actual results to differ materially including adjustments arising from the annual audit by management and
the Company's independent auditors. For further information on factors which could impact the Company and the statements
contained herein, please refer to public filings by the Company with the Securities and Exchange Commission. The statements
in this announcement should be considered in light of these risks and uncertainties.
Appendix 1: Interim results for the six months ended 30 June 2016
Unaudited condensed consolidated interim income statement for the six months ended
30 June 2016
£ million Notes Six months ended30 June 2016 Six months ended30 June 2015 +/(-)% Constant Currency1+/(-)% Year ended 31 December 2015
Billings 25,318.8 23,156.4 9.3 6.3 47,631.9
Revenue 6 6,536.5 5,839.4 11.9 8.9 12,235.2
Direct costs (942.7) (798.7) (18.0) (14.0) (1,710.9)
Net sales 6 5,593.8 5,040.7 11.0 8.1 10,524.3
Operating costs 4 (5,040.2) (4,251.8) (18.5) (16.2) (8,892.3)
Operating profit 553.6 788.9 (29.8) (34.9) 1,632.0
Share of results of associates 4 15.9 16.0 (0.6) (5.6) 47.0
Profit before interest and taxation 569.5 804.9 (29.2) (34.4) 1,679.0
Finance income 5 43.1 38.1 13.1 15.2 72.4
Finance costs 5 (122.1) (111.5) (9.5) (4.7) (224.1)
Revaluation of financial instruments 5 (65.4) (21.8) - - (34.7)
Profit before taxation 425.1 709.7 (40.1) (45.5) 1,492.6
Taxation 7 (143.1) (108.6) (31.8) (30.5) (247.5)
Profit for the period 282.0 601.1 (53.1) (58.8) 1,245.1
Attributable to:
Equity holders of the parent 245.8 566.2 (56.6) (62.5) 1,160.2
Non-controlling interests 36.2 34.9 (3.7) (4.1) 84.9
282.0 601.1 (53.1) (58.8) 1,245.1
Headline PBIT 6,19 768.7 669.1 14.9 10.3 1,774.0
Net sales margin 6,19 13.7% 13.3% 0.42 0.32 16.9%
Headline PBT 19 689.7 595.7 15.8 11.7 1,622.3
Earnings per share
Basic earnings per ordinary share 9 19.1p 43.7p (56.3) (62.2) 90.0p
Diluted earnings per ordinary share 9 18.9p 43.0p (56.0) (62.0) 88.4p
1 The basis for calculating the constant currency percentage changes shown above and in the notes to this appendix are
described in the glossary attached to this appendix.
2 Margin points.
Unaudited condensed consolidated interim statement of comprehensive income for the six months ended 30 June 2016
£ million Six months ended30 June2016 Six monthsended 30 June 2015 Yearended31 December 2015
Profit for the period 282.0 601.1 1,245.1
Items that may be reclassified subsequently to profit or loss:
Exchange adjustments on foreign currency net investments 990.9 (316.0) (275.9)
(Loss)/gain on revaluation of available for sale investments (1.4) (2.1) 206.0
989.5 (318.1) (69.9)
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain on defined benefit pension plans - - 33.5
Deferred tax on defined benefit pension plans - - (5.2)
- - 28.3
Other comprehensive income/(loss) relating to the period 989.5 (318.1) (41.6)
Total comprehensive income relating to the period 1,271.5 283.0 1,203.5
Attributable to:
Equity holders of the parent 1,199.7 257.0 1,121.6
Non-controlling interests 71.8 26.0 81.9
1,271.5 283.0 1,203.5
Unaudited condensed consolidated interim cash flow statement for the six months ended 30 June 2016
£ million Notes Six months ended 30 June 2016 Six months ended 30 June 2015 Year ended 31 December 2015
Net cash inflow/(outflow) from operating activities 10 66.2 (180.7) 1,359.9
Investing activities
Acquisitions and disposals 10 (182.8) (459.3) (669.5)
Purchase of property, plant and equipment (126.7) (73.1) (210.3)
Purchase of other intangible assets (including capitalised computer software) (15.9) (17.0) (36.1)
Proceeds on disposal of property, plant and equipment 9.7 11.2 13.4
Net cash outflow from investing activities (315.7) (538.2) (902.5)
Financing activities
Share option proceeds 5.3 5.4 27.6
Cash consideration for non-controlling interests 10 (43.4) (7.9) (23.6)
Share repurchases and buybacks 10 (196.8) (405.4) (587.6)
Net (decrease)/increase in borrowings 10 (62.9) 141.1 492.0
Financing and share issue costs (0.5) (9.0) (11.4)
Equity dividends paid - - (545.8)
Dividends paid to non-controlling interests in subsidiary undertakings (35.0) (25.7) (55.2)
Net cash outflow from financing activities (333.3) (301.5) (704.0)
Net decrease in cash and cash equivalents (582.8) (1,020.4) (246.6)
Translation differences 237.3 (39.9) (54.4)
Cash and cash equivalents at beginning of period 1,946.6 2,247.6 2,247.6
Cash and cash equivalents at end of period 10 1,601.1 1,187.3 1,946.6
Reconciliation of net cash flow to movement in net debt:
Net decrease in cash and cash equivalents (582.8) (1,020.4) (246.6)
Cash outflow/(inflow) from decrease/(increase) in debt financing 63.4 (132.1) (480.5)
Debt acquired (144.4) - -
Other movements (46.4) (108.0) (124.0)
Translation differences (327.9) 153.2 (84.3)
Movement of net debt in the period (1,038.1) (1,107.3) (935.4)
Net debt at beginning of period (3,210.8) (2,275.4) (2,275.4)
Net debt at end of period 11 (4,248.9) (3,382.7) (3,210.8)
Unaudited condensed consolidated interim balance sheet as at 30 June 2016
£ million Notes 30 June2016 30 June2015 31 December2015
Non-current assets
Intangible assets:
Goodwill 12 12,293.5 10,057.3 10,670.6
Other 13 2,036.7 1,714.2 1,715.4
Property, plant and equipment 925.9 731.1 797.7
Interests in associates and joint ventures 690.8 694.3 758.6
Other investments 1,303.7 920.9 1,158.7
Deferred tax assets1 94.0 107.6 94.1
Trade and other receivables 14 254.9 141.9 178.7
17,599.5 14,367.3 15,373.8
Current assets
Inventory and work in progress 408.8 321.7 329.0
Corporate income tax recoverable 224.2 168.1 168.6
Trade and other receivables 14 11,751.1 9,985.0 10,495.4
Cash and short-term deposits 2,147.4 1,353.0 2,382.4
14,531.5 11,827.8 13,375.4
Current liabilities
Trade and other payables 15 (13,868.2) (11,359.8) (12,685.0)
Corporate income tax payable2 (584.0) (571.9) (598.5)
Bank overdrafts and loans (1,057.2) (518.7) (932.0)
(15,509.4) (12,450.4) (14,215.5)
Net current liabilities (977.9) (622.6) (840.1)
Total assets less current liabilities 16,621.6 13,744.7 14,533.7
Non-current liabilities
Bonds and bank loans (5,339.1) (4,217.0) (4,661.2)
Trade and other payables 16 (1,122.0) (707.5) (891.5)
Deferred tax liabilities1 (713.0) (556.1) (552.3)
Provisions for post-employment benefits (260.4) (283.3) (229.3)
Provisions for liabilities and charges (208.9) (173.2) (183.6)
(7,643.4) (5,937.1) (6,517.9)
Net assets 8,978.2 7,807.6 8,015.8
Equity
Called-up share capital 17 133.0 132.7 132.9
Share premium account 540.5 513.3 535.3
Shares to be issued - 0.1 -
Other reserves 824.4 (226.0) (9.7)
Own shares (760.7) (572.2) (719.6)
Retained earnings 7,782.5 7,619.6 7,698.5
Equity share owners' funds 8,519.7 7,467.5 7,637.4
Non-controlling interests 458.5 340.1 378.4
Total equity 8,978.2 7,807.6 8,015.8
1 The Group has restated the balance sheet as at 30 June 2015 to reduce both the deferred tax assets and the deferred tax
liabilities by £140.7 million. This is consistent with the current period presentation.
2 The Group has restated the balance sheet as at 30 June 2015 to reclassify £533.6 million of corporate income tax payable
from non-current liabilities to current liabilities. This is consistent with the current period presentation.
Unaudited condensed consolidated interim statement of changes in equity for the six months ended 30 June 2016
£ million Called-up Share Other Own shares Retained Total equity share owners' funds Non-controlling interests Total
share premium reserves earnings
capital account
Balance at 1 January 2016 132.9 535.3 (9.7) (719.6) 7,698.5 7,637.4 378.4 8,015.8
Ordinary shares issued 0.1 5.2 - - - 5.3 - 5.3
Treasury share additions - - - (148.5) - (148.5) - (148.5)
Treasury share allocations - - - 3.5 (3.5) - - -
Net profit for the period - - - - 245.8 245.8 36.2 282.0
Exchange adjustments on foreign currency net investments - - 955.3 - - 955.3 35.6 990.9
Loss on revaluation of available for sale investments - - (1.4) - - (1.4) - (1.4)
Comprehensive income - - 953.9 - 245.8 1,199.7 71.8 1,271.5
Dividends paid - - - - - - (35.0) (35.0)
Non-cash share-based incentive plans (including share options) - - - - 52.0 52.0 - 52.0
Tax adjustments on share-based payments - - - - (37.8) (37.8) - (37.8)
Net movement in own shares held by ESOP Trusts - - - 103.9 (152.2) (48.3) - (48.3)
Recognition/remeasurement of financial instruments - - (2.3) - 24.4 22.1 - 22.1
Share purchases - close period commitments - - (117.5) - - (117.5) - (117.5)
Acquisition of subsidiaries1 - - - - (44.7) (44.7) 43.3 (1.4)
Balance at 30 June 2016 133.0 540.5 824.4 (760.7) 7,782.5 8,519.7 458.5 8,978.2
1 Acquisition of subsidiaries represents movements in retained earnings and non-controlling interests arising from changes
in ownership of existing subsidiaries and recognition of non-controlling interests on new acquisitions.
Unaudited condensed consolidated interim statement of changes in equity for the six months ended 30 June 2016 (continued)
£ million Called-up Share Shares tobe issued Other Own shares Retained Total equity share owners' funds Non-controlling interests Total
share premium reserves earnings
capital account
Balance at 1 January 2015 132.6 508.0 0.3 36.2 (283.7) 7,106.7 7,500.1 326.7 7,826.8
Ordinary shares issued 0.1 5.3 (0.2) - - 0.1 5.3 - 5.3
Treasury share additions - - - - (345.7) - (345.7) - (345.7)
Treasury share allocations - - - - 3.1 (3.1) - - -
Net profit for the period - - - - - 566.2 566.2 34.9 601.1
Exchange adjustments on foreign currency net investments - - - (307.1) - - (307.1) (8.9) (316.0)
Loss on revaluation of available for sale investments - - - (2.1) - - (2.1) - (2.1)
Comprehensive (loss)/ income - - - (309.2) - 566.2 257.0 26.0 283.0
Dividends paid - - - - - - - (25.7) (25.7)
Non-cash share-based incentive plans (including stock options) - - - - - 48.5 48.5 - 48.5
Tax adjustment on share-based payments - - - - - 21.8 21.8 - 21.8
Net movement in own shares held by ESOP Trusts - - - - 54.1 (113.8) (59.7) - (59.7)
Recognition/remeasurement of financial instruments - - - (33.0) - 0.4 (32.6) - (32.6)
Share purchases - close period commitments - - - 80.0 - 2.9 82.9 - 82.9
Acquisition of subsidiaries1 - - - - - (10.1) (10.1) 13.1 3.0
Balance at 30 June 2015 132.7 513.3 0.1 (226.0) (572.2) 7,619.6 7,467.5 340.1 7,807.6
Ordinary shares issued 0.2 22.0 (0.1) - - 0.1 22.2 - 22.2
Treasury share additions - - - - (60.3) - (60.3) - (60.3)
Treasury share allocations - - - - 0.5 (0.5) - - -
Net profit for the period - - - - - 594.0 594.0 50.0 644.0
Exchange adjustments on foreign currency net investments - - - 34.2 - - 34.2 5.9 40.1
Gain on revaluation of available for sale investments - - - 208.1 - - 208.1 - 208.1
Actuarial gain on defined benefit pension plans - - - - - 33.5 33.5 - 33.5
Deferred tax on defined benefit pension plans - - - - - (5.2) (5.2) - (5.2)
Comprehensive income - - - 242.3 - 622.3 864.6 55.9 920.5
Dividends paid - - - - - (545.8) (545.8) (29.5) (575.3)
Non-cash share-based incentive plans (including stock options) - - - - - 50.5 50.5 - 50.5
Tax adjustment on share-based payments - - - - - (3.8) (3.8) - (3.8)
Net movement in own shares held by ESOP Trusts - - - - (87.6) (34.3) (121.9) - (121.9)
Recognition/remeasurement of financial instruments - - - (26.0) - (1.1) (27.1) - (27.1)
Acquisition of subsidiaries1 - - - - - (8.5) (8.5) 11.9 3.4
Balance at 31 December 2015 132.9 535.3 - (9.7) (719.6) 7,698.5 7,637.4 378.4 8,015.8
1 Acquisition of subsidiaries represents movements in retained earnings and non-controlling interests arising from changes
in ownership of existing subsidiaries and recognition of non-controlling interests on new acquisitions.
Notes to the unaudited condensed consolidated interim financial statements
1. Basis of accounting
The unaudited condensed consolidated interim financial statements are prepared under the historical cost convention, except
for the revaluation of certain financial instruments as disclosed in our accounting policies.
2. Accounting policies
The unaudited condensed consolidated interim financial statements comply with the recognition and measurement criteria of
International Financial Reporting Standards (IFRS) as adopted by the European Union and issued by the International
Accounting Standards Board (IASB), IAS 34 Interim Financial Reporting and with the accounting policies of the Group which
were set out on pages 171 to 178 of the 2015 Annual Report and Accounts. No changes have been made to the Group's
accounting policies in the period ended 30 June 2016.
Statutory Information and Independent Review
The unaudited condensed consolidated interim financial statements for the six months to 30 June 2016 and 30 June 2015 do
not constitute statutory accounts. The financial information for the year ended 31 December 2015 does not constitute
statutory accounts. The statutory accounts for the year ended 31 December 2015 have been delivered to the Jersey Registrar
and received an unqualified auditors' report. The interim financial statements are unaudited but have been reviewed by the
auditors and their report is set out on page 47.
The announcement of the interim results was approved by the board of directors on 24 August 2016.
3. Currency conversion
The presentation currency of the Group is pound sterling and the unaudited condensed consolidated interim financial
statements have been prepared on this basis. The 2016 unaudited condensed consolidated interim income statement is prepared
using, among other currencies, average exchange rates of US$1.4330 to the pound (period ended 30 June 2015: US$1.5239; year
ended 31 December 2015: US$1.5288) and E1.2838 to the pound (period ended 30 June 2015: E1.3659; year ended 31 December
2015: E1.3782). The unaudited condensed consolidated interim balance sheet as at 30 June 2016 has been prepared using the
exchange rates on that day of US$1.3268 to the pound (30 June 2015: US$1.5725; 31 December 2015: US$1.4734) and E1.1982 to
the pound (30 June 2015: E1.4100; 31 December 2015: E1.3559).
The basis for calculating the constant currency percentage changes, shown on the face of the unaudited condensed
consolidated interim income statement, is described in the glossary attached to this appendix.
Notes to the unaudited condensed consolidated interim financial statements (continued)
4.Operating costs and share of results of associates
£ million Six months ended 30 June 2016 Six months ended 30 June 2015 Year ended 31 December 2015
Staff costs 3,656.8 3,303.2 6,652.6
Establishment costs 395.2 358.8 726.3
Other operating costs 988.2 589.8 1,513.4
Total operating costs 5,040.2 4,251.8 8,892.3
Staff costs include:
£ million Six months ended 30 June 2016 Six months ended 30 June 2015 Year ended 31 December 2015
Wages and salaries 2,520.4 2,277.8 4,578.4
Cash-based incentive plans 69.6 63.1 231.8
Share-based incentive plans 52.0 48.5 99.0
Social security costs 324.6 302.3 578.4
Pension costs 85.2 81.5 160.0
Severance 29.7 15.9 24.0
Other staff costs 575.3 514.1 981.0
3,656.8 3,303.2 6,652.6
Staff cost to net sales ratio 65.4% 65.5% 63.2%
Other operating costs include:
£ million Six months ended 30 June 2016 Six months ended 30 June 2015 Year ended 31 December 2015
Amortisation and impairment of acquired intangible assets 77.6 66.7 140.1
Goodwill impairment - - 15.1
Gains on disposal of investments and subsidiaries (19.5) (91.9) (131.0)
Losses/(gains) on remeasurement of equity interest on acquisition of controlling interest 38.9 (140.2) (165.0)
Investment write-downs 83.3 - 78.7
Restructuring costs 10.5 21.2 106.2
IT asset write-downs - - 29.1
Losses on remeasurement of equity interest on acquisition of controlling interest in 2016 primarily comprise losses of
£24.0 million in relation to the merger of most of the Group's Australian and New Zealand assets with STW Communications
Group Limited in Australia. The re-named WPP AUNZ became a listed subsidiary of the Group on 8 April 2016.
Gains on remeasurement of equity interest on acquisition of controlling interest in 2015 primarily comprise gains of £131.7
million in relation to the acquisition of a majority stake in IBOPE in Latin America.
Notes to the unaudited condensed consolidated interim financial statements (continued)
4. Operating costs and share of results of associates (continued)
Investment write-downs in 2016 of £83.3 million primarily relate to comScore Inc, which has not released any financial
statements in relation to its 2015 results due to an internal investigation by their Audit Committee. Following the
announcement of this internal investigation, the market value of comScore Inc fell below the Group's carrying value.
Gains on disposal of investments and subsidiaries in 2015 include £43.6 million of gains arising on the sale of certain
Kantar internet measurement businesses to comScore Inc in consideration for newly issued equity in the buyer; £29.7 million
of gains arising on the sale of the Group's minority stake in eRewards; and, in the second half of 2015, £30.6 million of
gains arising on the Group's equity interest in Chime Communications plc following its acquisition by Providence Equity
Partners in conjunction with WPP.
In 2016, restructuring costs of £10.5 million (period ended 30 June 2015: £21.2 million) predominantly comprise costs
resulting from the project to transform and rationalise the Group's IT services and infrastructure.
In the year ended 31 December 2015, restructuring costs of £106.2 million comprise £69.5 million of costs (including £52.0
million of severance costs) arising from a structural reassessment of certain of the Group's operations, primarily in the
mature markets of Western Europe; and £36.7 million of costs resulting from the project to transform and rationalise the
Group's IT services and infrastructure. In 2015, IT asset write-downs comprise £29.1 million of accelerated depreciation of
IT assets in Asia and Europe.
Share of results of associates include:
£ million Six months ended 30 June 2016 Six months ended 30 June 2015 Yearended 31 December 2015
Share of profit before interest and taxation 39.0 39.2 95.2
Share of exceptional losses (8.4) (8.4) (21.8)
Share of interest and non-controlling interests (3.2) (0.8) (1.7)
Share of taxation (11.5) (14.0) (24.7)
15.9 16.0 47.0
Notes to the unaudited condensed consolidated interim financial statements (continued)
5. Finance income, finance costs and revaluation of financial instruments
Finance income includes:
£ million Six months ended 30 June 2016 Six months ended 30 June 2015 Year ended 31 December 2015
Income from available for sale investments 9.6 10.2 18.9
Interest income 33.5 27.9 53.5
43.1 38.1 72.4
Finance costs include:
£ million Six months ended 30 June 2016 Six months ended 30 June 2015 Year ended 31 December 2015
Net interest expense on pension plans 3.2 3.8 7.3
Interest on other long-term employee benefits 1.3 1.2 2.5
Interest payable and similar charges 117.6 106.5 214.3
122.1 111.5 224.1
Revaluation of financial instruments include:
£ million Six months ended 30 June 2016 Six months ended 30 June 2015 Year ended 31 December 2015
Movements in fair value of treasury instruments (3.9) (5.9) (3.7)
Movements in fair value of other derivatives - 15.9 15.9
Revaluation of put options over non-controlling interests (23.5) (5.8) (11.3)
Revaluation of payments due to vendors (earnout agreements) (38.0) (26.0) (35.6)
(65.4) (21.8) (34.7)
Notes to the unaudited condensed consolidated interim financial statements (continued)
6. Segmental analysis
Reported contributions by operating sector were as follows:
£ million Six months ended 30 June 2016 Six months ended 30 June 2015 Year ended 31 December 2015
Revenue
Advertising and Media Investment Management 2,963.4 2,638.8 5,552.8
Data Investment Management 1,243.6 1,173.8 2,425.9
Public Relations & Public Affairs 499.2 458.7 945.8
Branding & Identity, Healthcare and Specialist Communications 1,830.3 1,568.1 3,310.7
6,536.5 5,839.4 12,235.2
Net sales
Advertising and Media Investment Management 2,423.0 2,221.1 4,652.0
Data Investment Management 921.7 856.7 1,768.1
Public Relations & Public Affairs 490.4 450.3 929.7
Branding & Identity, Healthcare and Specialist Communications 1,758.7 1,512.6 3,174.5
5,593.8 5,040.7 10,524.3
Headline PBIT1
Advertising and Media Investment Management 369.1 330.4 855.6
Data Investment Management 124.7 100.6 286.1
Public Relations & Public Affairs 70.6 66.0 155.4
Branding & Identity, Healthcare and Specialist Communications 204.3 172.1 476.9
768.7 669.1 1,774.0
Net sales margin2
Advertising and Media Investment Management 15.2% 14.9% 18.4%
Data Investment Management 13.5% 11.7% 16.2%
Public Relations & Public Affairs 14.4% 14.7% 16.7%
Branding & Identity, Healthcare and Specialist Communications 11.6% 11.4% 15.0%
13.7% 13.3% 16.9%
Total assets
Advertising and Media Investment Management 15,150.7 12,363.6 12,911.4
Data Investment Management 4,046.0 3,703.9 3,713.3
Public Relations & Public Affairs 2,029.4 1,709.8 1,839.2
Branding & Identity, Healthcare and Specialist Communications 8,439.3 6,789.1 7,640.2
Segment assets 29,665.4 24,566.4 26,104.1
Unallocated corporate assets3, 4 2,465.6 1,628.7 2,645.1
32,131.0 26,195.1 28,749.2
Total liabilites
Advertising and Media Investment Management (11,624.6) (9,667.3) (10,506.9)
Data Investment Management (1,204.2) (995.3) (1,067.0)
Public Relations & Public Affairs (473.5) (355.6) (425.1)
Branding & Identity, Healthcare and Specialist Communications (2,157.2) (1,505.6) (1,990.4)
Segment liabilities (15,459.5) (12,523.8) (13,989.4)
Unallocated corporate liabilities3, 4 (7,693.3) (5,863.7) (6,744.0)
(23,152.8) (18,387.5) (20,733.4)
1 Headline PBIT is defined in note 19.
2 Net sales margin is defined in note 19.
3 Included in unallocated corporate assets and liabilities are corporate income tax, deferred tax and net interest-bearing
debt.
4 The Group has restated the balance sheet as at 30 June 2015 to reduce both the deferred tax assets and the deferred tax
liabilities by £140.7 million. This is consistent with the current period presentation.
Notes to the unaudited condensed consolidated interim financial statements (continued)
6. Segmental analysis (continued)
Reported contributions by geographical area were as follows:
£ million Six months ended 30 June 2016 Six months ended 30 June 2015 Year ended 31 December 2015
Revenue
North America1 2,440.5 2,164.6 4,491.2
United Kingdom 927.0 860.0 1,777.4
Western Continental Europe 1,341.7 1,143.2 2,425.6
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 1,827.3 1,671.6 3,541.0
6,536.5 5,839.4 12,235.2
Net sales
North America1 2,103.2 1,877.2 3,882.3
United Kingdom 774.8 722.9 1,504.5
Western Continental Europe 1,112.0 964.8 2,016.2
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 1,603.8 1,475.8 3,121.3
5,593.8 5,040.7 10,524.3
Headline PBIT2
North America1 349.1 307.5 728.2
United Kingdom 97.8 92.0 243.1
Western Continental Europe 137.8 102.8 277.2
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 184.0 166.8 525.5
768.7 669.1 1,774.0
Net sales margin3
North America 16.6% 16.4% 18.8%
United Kingdom 12.6% 12.7% 16.2%
Western Continental Europe 12.4% 10.7% 13.7%
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 11.5% 11.3% 16.8%
13.7% 13.3% 16.9%
1 North America includes the US with revenue of £2,320.8 million (period ended 30 June 2015: £2,048.3 million; year ended
31 December 2015: £4,257.4 million), net sales of £1,998.0 million (period ended 30 June 2015: £1,773.5 million; year ended
31 December 2015: £3,674.3 million) and headline PBIT of £334.4 million (period ended 30 June 2015: £295.0 million; year
ended 31 December 2015: £697.3 million).
2 Headline PBIT is defined in note 19.
3 Net sales margin is defined in note 19.
Notes to the unaudited condensed consolidated interim financial statements (continued)
7. Taxation
The headline tax rate was 21.0% (30 June 2015: 20.0%; 31 December 2015: 19.0%). The tax rate on reported PBT was 33.7% (30
June 2015: 15.3%; 31 December 2015: 16.6%). The reported tax rate is higher than the headline tax rate due to the losses on
remeasurement of equity interests and investment write-downs not being tax deductible.
The tax charge comprises:
£ million Six months ended 30 June 2016 Six months ended 30 June 2015 Year ended 31 December 2015
Corporation tax
- More to follow, for following part double click ID:nRSX9650HcRecent news on WPP
See all newsREG - WPP PLC - Notification of Major Holdings
AnnouncementREG - WPP PLC - First Quarter Trading Update
AnnouncementREG - WPP PLC - Total Voting Rights and Capital
AnnouncementREG - WPP PLC - Annual Report 2023 on Form 20-F
AnnouncementREG - WPP PLC - Annual Report 2023 and AGM Notice
Announcement