WPP annual profits fall; Targets flat revenue growth for 2020
Advertising giant WPP reported a fall in full year pre-tax profits as it forecast flat organic growth and operating profit margin for the current fiscal year.
Pre-tax profits fell to £982m from £1.2bn as revenue less pass-through costs slipped 0.3% to £10.8bn.
The company cited an unrepeated “significant” gain in the first half of 2018 and £238m impact from a charge on the revaluation of financial instruments versus a credit in 2018 for the fall in profits.
WPP said its financial performance in the second half of the year showed “an encouraging improvement over the first half and gives us confidence of further improvement heading into 2020, as we make progress towards our 2021 goals”.
It added that revenue and profit margin guidance had been prepared before the coronavirus outbreak in China that has spread worldwide and impacted business globally.
“At this stage, it is too early to predict the full potential impact. We will provide an update at our first quarter trading update,” the company said on Thursday.