Media and advertising giant WPP (WPP) saw organic revenues grow 2.9 per cent in 2012 - a year in which growth started well, but slowed as it went on. Still, with the exception of North America, the group managed underlying growth in all of its regions, with robust progress in such developing markets as Asia and Latin America.
Indeed, underlying sales from Asia Pacific, Latin America, Africa & the Middle East and central & eastern Europe rose 8.3 per cent in the year. Even the UK operation managed a solid performance and like-for-like sales rose 4 per cent, although western Europe's outcome was rather weaker with underlying sales up just 0.1 per cent. However, continued pressure on discretionary client spending in North America meant that underlying sales there fell 0.1 per cent - that region generates 33.8 per cent of group revenues. Across the group, meanwhile, advertising agencies generated almost half of group profits and sales in that segment rose 5.1 per cent on a like-for-like basis. Moreover, the direct, digital and interactive businesses saw underlying sales rise 6.7 per cent and these now account for 32 per cent of groups revenues.
Broker Numis Securities has upped its 2013 estimates by about 2 per cent and forecasts pre-tax profit of £1.49bn, giving EPS of 81.2p (from £1.32 and 73.4p in 2012).
WPP (WPP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,055p | MARKET VALUE: | £3.35bn | |
| TOUCH: | 1,054-1055p | 12-MONTH HIGH: | 1,083p | LOW: 733p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 538p* | NET DEBT: | 40% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£bn) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 7.48 | 0.75 | 38.4 | 15.5 |
| 2009 | 8.68 | 0.66 | 35.9 | 15.5 |
| 2010 | 9.33 | 0.85 | 47.5 | 17.8 |
| 2011 | 10.0 | 1.01 | 67.6 | 24.6 |
| 2012 | 10.4 | 1.09 | 66.2 | 28.5 |
| % change | +4 | +8 | -2 | +16 |
Ex-div: 5 Jun Payment: 8 Jul *Includes intangible assets of £11.3bn, or 892p a share | ||||
