WPP sees full-year profits rise courtesy of the pound’s depreciation and acquisitions
WPP has brushed aside Brexit fears to post healthy 26% rise in pre-tax profits to £1.8bn, flattered by the recent devaluation of the pound on international currency markets and an acquisitions spree.
This strong showing was underscored by a heady 16% rise in billings to £55.2bn and a healthy 17.6% rise in revenues to £14.3bn with universal trading growth across all regions from Asia-Pacific to Africa and the Middle East.
Not all is rosy in the WPP garden, however, with a slowdown in revenues over the second half in both the UK and US prompting the group to strike a more cautious tone for its 2017.
Commenting on its prospects in its full-year statement WPP observed: “Given continued tepid economic growth and recent weaker comparative net new business trends, the budgets for 2017, on a like-for-like basis, have been set conservatively at around 2% for both revenue and net sales, but with a headline operating margin target improvement on net sales of 0.3 margin points, in constant currency.
“The prospects in the UK are more mixed as the post-Brexit vote scenarios will play out over the next two years and uncertainties about the possible outcomes increase.”