UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 6-K
____________________
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the Month of August 2025
Commission File Number: 001-38303
______________________
WPP plc
(Translation of registrant's name into English)
________________________
Sea Containers, 18 Upper Ground
London, United Kingdom SE1 9GL
(Address of principal executive offices)
_________________________
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
Form
20-F X Form 40-F
___
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1): ___
Note: Regulation S-T Rule 101(b)(1) only permits the
submission in paper of a Form 6-K if submitted solely to provide an
attached annual report to security holders.
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(7): ___
Note: Regulation S-T Rule 101(b)(7) only permits the
submission in paper of a Form 6-K if submitted to furnish a report
or other document that the registrant foreign private issuer must
furnish and make public under the laws of the jurisdiction in which
the registrant is incorporated, domiciled or legally organized (the
registrant’s “home country”), or under the rules
of the home country exchange on which the registrant’s
securities are traded, as long as the report or other document is
not a press release, is not required to be and has not been
distributed to the registrant’s security holders, and, if
discussing a material event, has already been the subject of a Form
6-K submission or other Commission filing on EDGAR.
Forward-Looking Statements
The
Company may include forward-looking statements (including as
defined in the U.S. Private Securities Litigation Reform Act of
1995) in oral or written public statements issued by or on behalf
of the Company. These forward-looking statements may include, among
other things, plans, objectives, beliefs, intentions, strategies,
projections and anticipated future economic performance based on
assumptions and the like that are subject to risks and
uncertainties. These statements can be identified by the fact that
they do not relate strictly to historical or current facts. They
use words such as ‘aim’, ‘anticipate’,
‘believe’, ‘estimate’,
‘expect’, ‘forecast’,
‘guidance’, ‘intend’, ‘may’,
‘will’, ‘should’, ‘potential’,
‘possible’, ‘predict’,
‘project’, ‘plan’, ‘target’,
and other words and similar references to future periods but are
not the exclusive means of identifying such statements. As such,
all forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances that are beyond the
control of the Company. Actual results or outcomes may differ
materially from those discussed or implied in the forward-looking
statements. Therefore, you should not rely on such forward-looking
statements, which speak only as of the date they are made, as a
prediction of actual results or otherwise. Important factors which
may cause actual results to differ include but are not limited to:
the unanticipated loss of a material client or key personnel;
delays, suspensions or reductions in client advertising budgets;
shifts in industry rates of compensation; regulatory compliance
costs or litigation; changes in competitive factors in the
industries in which we operate and demand for our products and
services; changes in client advertising, marketing and corporate
communications requirements; our inability to realise the future
anticipated benefits of acquisitions; failure to realise our
assumptions regarding goodwill and indefinite lived intangible
assets; natural disasters or acts of terrorism; the Company’s
ability to attract new clients; the economic and geopolitical
impact of the conflicts in Ukraine and the Middle East; the risk of
global economic downturn; slower growth, increasing interest rates
and high and sustained inflation; tariffs and other trade barriers;
supply chain issues affecting the distribution of our
clients’ products; technological changes and risks to the
security of IT and operational infrastructure, systems, data and
information resulting from increased threat of cyber and other
attacks; effectively managing the risks, challenges and
efficiencies presented by using Artificial Intelligence (AI) and
Generative AI technologies and partnerships in our business; risks
related to our environmental, social and governance goals and
initiatives, including impacts from regulators and other
stakeholders, and the impact of factors outside of our control on
such goals and initiatives; the Company’s exposure to changes
in the values of other major currencies (because a substantial
portion of its revenues are derived and costs incurred outside of
the UK); and the overall level of economic activity in the
Company’s major markets (which varies depending on, among
other things, regional, national and international political and
economic conditions and government regulations in the world’s
advertising markets). In addition, you should consider the risks
described in Item 3D, captioned “Risk Factors” in the
Group’s most recent Annual Report on Form 20-F, which could
also cause actual results to differ from forward-looking
information. In light of these and other uncertainties, the
forward-looking statements included in this document should not be
regarded as a representation by the Company that the
Company’s plans and objectives will be achieved. Neither the
Company, nor any of its directors, officers or employees, provides
any representation, assurance or guarantee that the occurrence of
any events anticipated, expressed or implied in any forward-looking
statements will actually occur. Other than in accordance with its
legal or regulatory obligations (including under the Market Abuse
Regulation, the UK Listing Rules and the Disclosure and
Transparency Rules of the Financial Conduct Authority), the Company
undertakes no obligation to update or revise any such
forward-looking statements, whether as a result of new information,
future events or otherwise.
EXHIBIT INDEX
|
Exhibit
No.
|
Description
|
|
1
|
2025 Interim Results dated 07
August 2025, prepared by WPP plc.
|
7 August
2025
|
H1 performance in line with July 2025 trading update; significant
repositioning and investment in WPP Media; strengthening of data
and AI capabilities
|
|
Key figures (£ million)
|
H1 2025
|
+/(-) %
reported1
|
+/(-) % LFL2
|
H1 2024
|
|
Revenue
|
6,663
|
(7.8)
|
(2.4)
|
7,227
|
|
Revenue less pass-through costs
|
5,026
|
(10.2)
|
(4.3)
|
5,599
|
|
Reported:
|
|
|
|
|
|
Operating profit
|
221
|
(47.8)
|
|
423
|
|
Operating profit margin (%)3
|
3.3
|
(2.6)pt
|
|
5.9
|
|
Diluted EPS (p)
|
4.0
|
(78.7)
|
|
18.8
|
|
Dividends per share (p)
|
7.5
|
(50.0)
|
|
15.0
|
|
Headline4:
|
|
|
|
|
|
Operating profit
|
412
|
(36.2)
|
(29.1)
|
646
|
|
Operating profit margin (%)
|
8.2
|
(3.3)pt
|
(2.9)pt
|
11.5
|
|
Diluted EPS (p)
|
20.0
|
(35.3)
|
|
30.9
|
In line with the July trading update, WPP reports H1 revenue of
£6,663m, down 7.8% on a reported basis and down 2.4%
like-for-like (LFL), while revenue less pass-through costs of
£5,026m was down 4.3% LFL. Q2 revenue less pass-through costs
of £2,544m was down 12.6% on a reported basis and 5.8% LFL. H1
reported operating profit margin was 3.3% and headline operating
profit margin was 8.2%, representing a LFL decrease of 2.9pt. With
H1 results in line with our trading update issued in early July, we
continue to expect 2025 LFL revenue less pass-through costs of -3%
to -5% with headline operating profit margin down 50 to 175 bps
(excluding the impact of FX).
Mark Read, Chief Executive Officer of WPP, said:
“It has been a challenging first half given pressures on
client spending and a slower new business environment. We have,
however, made significant progress on the repositioning of WPP
Media, simplifying its organisational model to increase
effectiveness and reduce costs. Meanwhile, the acquisition of
InfoSum, the launch of Open Intelligence and the continued adoption
of WPP Open all strengthen our data and technology
capabilities.
“The Board is declaring an interim dividend of 7.5p ahead of
a review of the strategy and future capital allocation policy which
will be led by Cindy Rose, who succeeds me as CEO on 1 September.
The priority is to drive sustainable growth supported by an
appropriate level of financial flexibility while balancing returns
to shareholders.
“WPP is a company with enormous strengths in creativity and
media, technology and AI, talented people, deep client
relationships and unmatched global reach. Throughout my seven years
as CEO, technological innovation has been a constant and I believe
that thanks to our investment in AI we can look to the future with
confidence. I would like to thank our clients for their partnership
and our people for their dedication and I wish them, and Cindy,
every success in the future.”
H1 and Q2 2025
performance
●
Revenue –
H1 reported revenue of £6,663m
was down 7.8%, with a LFL decline of 2.4%. H1 revenue less
pass-through costs of £5,026m was down 10.2% reported and down
4.3% LFL. Q2 revenue of £3,420m was down 10.4%, a LFL decline
of 4.0%. Q2 revenue less pass-through costs of £2,544m was
down 12.6% reported and down 5.8% LFL.
●
Business segment and regions
– Global Integrated
Agencies H1 LFL revenue less pass-through costs fell 4.5% (Q2:
-6.0%) with WPP Media declining 2.9% (Q2: -4.7%) and other
integrated creative agencies declining 5.8% (Q2: -7.2%). By
geography, North America declined 2.4% (Q2: -4.6%), UK -6.0% (Q2:
-6.5%), Western Continental Europe -5.5% (Q2: -6.5%) and Rest of
World -5.4% (Q2: -6.8%), with India broadly flat
0.1% (Q2: -3.9%) offset by a decline in China of
-16.6% (Q2: -15.9%).
●
Clients –
WPP’s top 25 clients held
broadly flat at 0.1% LFL growth in the first half. While Tech &
Digital Services, Automotive and Healthcare client sectors were
stable across the period, we did see more pressure in the second
quarter with LFL declines across all three. CPG, having been stable
in the first quarter, also saw a LFL step down in
Q2.
●
Operating profit –
H1 headline operating profit was
£412m, a margin of 8.2% (H1 2024: 11.5%), down 2.9pt LFL. The
lower margin reflects the decline in revenue less pass-through
costs and higher severance costs, in particular at WPP Media. H1
reported operating profit was £221m down 47.8%, including
goodwill impairment of £116m.
●
Average adjusted net
debt as at 30 June 2025 of
£3.4bn down £0.2bn from 30 June 2024, reflecting net
sale proceeds received in December 2024 from FGS Global which were
used to pay down debt.
●
Dividend – The Board has decided to set the interim dividend
at 7.5p (H1 2024: 15.0p). The Board recognises the importance of
dividends to shareholders and today's step balances that, creating
room for our incoming CEO to review the group’s strategy and
capital allocation policy while maintaining financial
flexibility.
Delivering on strategic priorities for 2025
●
Improving the competitiveness
of WPP Media – WPP
Media’s performance during the course of the first half
reflects the continued impact of client losses and a challenging
macro environment. During the second quarter, however, we have seen
significant progress on the implementation of the plan laid out by
Brian Lesser at the preliminary results announcement in February.
Operationally, with the launch of Open Intelligence and supported
by the acquisition of InfoSum, WPP Media is well advanced on its
plan to create the next generation of AI-enhanced data and
marketing solutions for clients, delivered through the
industry’s most powerful and secure infrastructure. In
addition, action taken in the second quarter to make WPP
Media’s organisational model more client-centric gives
greater flexibility for reinvestment and allows us to focus our
resources on continuing to improve our competitive proposition and
on our client success.
●
Further adoption of WPP Open
– AI, data
and technology are central to the way we serve our clients and
continues to drive increased scope of work with existing clients.
It is also supporting our new business activity. Usage of WPP Open
continues to grow, with c.85% of our client-facing staff using the
platform in June (up from c.60% in March).
●
New business –
Amid lower levels of activity at a
market level, H1 wins include Electronic Arts, Hisense and Hero
Motocorp in Media, L’Oréal and Samsung in Influencer, TK
Maxx and Honda in PR and Generali, IKEA and Heineken in
Creative/Commerce.
●
Cost discipline enabling
investment in WPP Open, AI and data – In
addition to the annualisation of structural cost savings and a
continued focus on back-office efficiency, we are also taking a
proactive approach to managing our flexible cost base. Headcount
since the start of the year was down 3.7%, broadly in line with the
LFL revenue decline and we expect the severance action taken in the
second quarter alone to generate £150m+ of annualised gross
cost savings from 2026. We continue to prioritise investment in WPP
Open, AI and data including the integration of new AI tools into
WPP Open, driving day-to-day productivity improvements for our
people.
Financial outlook for 2025
●
LFL revenue less pass-through
costs –
In line with our trading update issued
in early July, we continue to expect 2025 LFL revenue less
pass-through costs of -3% to -5%.
●
Headline operating profit
margin –
Again, in line with commentary in
early July, we continue to expect headline operating profit margin
to be down 50 to 175 bps year on year (excluding the impact of FX).
This incorporates the benefit of cost action taken in the first
half which will support an improved margin in the second half,
while we continue to prioritise appropriate investment in the
business.
●
Adjusted operating cash flow
before working capital – As a result of our LFL revenue less pass-through
cost and headline operating profit margin guidance, we now expect
adjusted operating cash flow before working capital for 2025 to be
in the range of £1.1bn to £1.2bn relative to our original
expectation of around £1.4bn.
●
Other financial indicators
– Further detail on 2025
guidance is provided on page 10.
Conference Call at 9.30am UK/4.30am EDT:
●
Dial-in Details: UK
+44 (0) 20 3936 2999; US +1 646 233
4753; Passcode: 211445
●
Webcast: Live listen-only webcast will be
available here
|
For further information:
|
||||
|
Media
|
|
|
Investors and analysts
|
|
|
Chris Wade, WPP
|
+44 20 7282 4600
|
|
Thomas Singlehurst, CFA
|
+44 7876 431922
|
|
Richard Oldworth,
|
+44 7710 130 634
|
|
Anthony Hamilton
|
+44 7464 532903
|
|
Burson Buchanan
|
+44 20 7466 5000
|
|
Melissa Fung
|
+44 7353 107064
|
|
|
|
|
|
|
|
|
|
|
|
wpp.com/investors
|
1. Percentage change in
reported sterling.
2. Like-for-like. LFL
comparisons are calculated as follows: current year, constant
currency actual results (which include acquisitions from the
relevant date of completion) are compared with prior year, constant
currency actual results, adjusted to include the results of
acquisitions and disposals for the commensurate period in the prior
year.
3. Reported operating profit
divided by revenue.
4. In this press release, not
all of the figures and ratios used are readily available from the
unaudited interim results included in Appendix 4. Management
believes these non-GAAP measures, including like-for-like, revenue
less pass-through costs and headline profit measures, are both
useful and necessary to better understand the Group’s
results. Details of how these have been arrived at are shown in
Appendix 4.
First half 2025 overview
Revenue in the first half was £6,663m, down 7.8% from
£7,227m in H1 2024, and down 2.4% LFL. Revenue less
pass-through costs was £5,026m, down 10.2% from £5,599m
in H1 2024, and down 4.3% LFL.
|
£ million
|
Q2 2025
|
%
reported
|
%
M&A
|
%
FX
|
+/(-) % LFL
|
|
Revenue
|
3,420
|
(10.4)
|
(2.8)
|
(3.6)
|
(4.0)
|
|
Revenue less pass-through costs
|
2,544
|
(12.6)
|
(3.3)
|
(3.5)
|
(5.8)
|
|
£ million
|
H1 2025
|
%
reported
|
%
M&A
|
%
FX
|
+/(-) % LFL
|
|
Revenue
|
6,663
|
(7.8)
|
(3.0)
|
(2.4)
|
(2.4)
|
|
Revenue less pass-through costs
|
5,026
|
(10.2)
|
(3.5)
|
(2.4)
|
(4.3)
|
Segmental review
Business segments – revenue less pass-through
costs
|
+/(-) % LFL
|
Global
Integrated Agencies
|
Public Relations
|
Specialist Agencies
|
|
Q2 2025
|
(6.0)
|
(7.8)
|
(1.9)
|
|
H1 2025
|
(4.5)
|
(7.2)
|
(0.4)
|
Global Integrated Agencies: WPP
Media saw a LFL decline in revenue less pass-through costs of 2.9%
in H1 (Q2: -4.7%) impacted by cuts in client spending as well as
the impact of one-off factors in Q2. Cuts to client spending and
lower net new business, including the ramping down of a Q1 client
loss, particularly weighed on Q2 LFL.
Other Global Integrated Agencies declined 5.8% (Q2: -7.2%) as a
result of lower overall client spending, particularly at Ogilvy
which declined high-single digits in the first half. There was also
continuing pressure on project-based work which weighed on our
agencies, albeit both AKQA and Grey saw a slight sequential
quarterly improvement on easier comparisons. VML and Hogarth
performed relatively better in the first half (down low-single
digits and broadly flat, respectively), benefiting from recent new
business wins.
Public Relations: In Q2, Burson
saw a broadly similar trend to Q1 with LFL revenue less
pass-through costs down mid-to-high-single digit as the business
continued to face a challenging environment for client
discretionary spending, in particular in Europe. We are however
encouraged by improved new business momentum in H1, in particular
in the US.
Specialist Agencies: Overall,
Specialist Agencies was broadly flat, with H1 LFL revenue less
pass-through costs declining 0.4%, with a Q2 decline of 1.9%.
Landor, and a number of our smaller specialist agencies, continued
to be affected by the macro environment and further delays in
project-based spending, particularly in Q2. However, CMI Media
Group, our specialist healthcare media planning and buying agency,
continued to grow strongly in H1, building on double-digit growth
in 2024. Encouragingly, Design Bridge and Partners returned to
growth in Q2.
Regional segments – revenue less pass-through
costs
|
+/(-) % LFL
|
North America
|
United Kingdom
|
Western Cont. Europe
|
Rest of World
|
|
Q2 2025
|
(4.6)
|
(6.5)
|
(6.5)
|
(6.8)
|
|
H1 2025
|
(2.4)
|
(6.0)
|
(5.5)
|
(5.4)
|
North America declined by 2.4% in H1 2025, driven by a Q2
decline of 4.6% reflecting a quarter-on-quarter deterioration
against a tougher Q2 comparison (Q2 2024: +2.0%) and the ramp down
of a Q1 client loss. This was partially offset by a resumption of
growth in Healthcare and a robust performance in Government. VML
saw broadly flat H1 growth, while Ogilvy and AKQA suffered cuts in
client spend.
The United Kingdom
declined 6.0% in H1, with Q2 seeing a
6.5% decline despite an easing comparison (Q2 2024: -5.3%). Ogilvy
grew in H1 benefiting from new business, offset by declines in
other agencies. The UK saw pressure in Telecom, Media &
Entertainment, reflecting client losses.
Western Continental Europe also
remained weak against an easier comparison, down 5.5% in H1 and
6.5% in Q2. France and Italy saw mid-to-high-single digit declines,
reflecting the continuing impact of macroeconomic pressures
weighing on client spending and the impact of one-off factors.
Germany declined 3.2% in H1, however with a sequential improvement
in trend (Q2: -1.6%).
Rest of World declined 5.4% in H1.
India remained flat (+0.1%) against a tough comparison (H1 2024:
+8.1%), impacted by the timing of sporting events, but this was
offset by a decline of 16.6% in China on client assignment losses
and persistent macroeconomic pressures. There were also declines in
Latin America (-2.7%) and Middle East & Africa (-2.6%). Central
& Eastern Europe, meanwhile, continued to grow
(+2.2%).
Top five markets – revenue less pass-through
costs
|
+/(-) % LFL
|
USA
|
UK
|
Germany
|
China
|
India
|
|
Q2 2025
|
(4.5)
|
(6.5)
|
(1.6)
|
(15.9)
|
(3.9)
|
|
H1 2025
|
(2.3)
|
(6.0)
|
(3.2)
|
(16.6)
|
0.1
|
Client sector – revenue less pass-through costs
|
|
Q2 2025
|
H1 2025
|
H1 2025
|
|
|
+/(-) % LFL
|
+/(-) % LFL
|
% share, revenue less pass-through
costs1
|
|
CPG
|
(8.3)
|
(4.2)
|
27.8
|
|
Tech & Digital Services
|
(1.2)
|
1.5
|
17.8
|
|
Healthcare & Pharma
|
(0.5)
|
(0.2)
|
11.7
|
|
Automotive
|
(4.5)
|
0.1
|
10.7
|
|
Retail
|
(3.9)
|
(3.5)
|
8.9
|
|
Telecom, Media & Entertainment
|
(7.4)
|
(6.2)
|
6.5
|
|
Financial Services
|
(4.5)
|
(1.1)
|
6.2
|
|
Other
|
(14.6)
|
(14.2)
|
4.1
|
|
Travel & Leisure
|
(5.3)
|
(5.3)
|
3.6
|
|
Government, Public Sector & Non-profit
|
8.6
|
10.7
|
2.7
|
1. Proportion of WPP revenue
less pass-through costs in H1 2025; table made up of clients
representing 82% of WPP total revenue less pass-through
costs.
Financial results
Unaudited income
statement1:
|
|
Headline
|
Reported
|
||||
|
£ million
|
H1 2025
|
H1 2024
|
+/(-) %
|
H1 2025
|
H1 2024
|
+/(-) %
|
|
Revenue
|
6,663
|
7,227
|
(7.8)
|
6,663
|
7,227
|
(7.8)
|
|
Revenue less pass-through costs
|
5,026
|
5,599
|
(10.2)
|
5,026
|
5,599
|
(10.2)
|
|
Operating profit
|
412
|
646
|
(36.2)
|
221
|
423
|
(47.8)
|
|
Operating profit margin
(%)2
|
8.2 %
|
11.5 %
|
(3.3)pt
|
3.3 %
|
5.9%
|
(2.6)pt
|
|
Earnings from associates
|
17
|
15
|
13.3
|
17
|
16
|
6.3
|
|
Profit before interest & tax
|
429
|
661
|
(35.1)
|
238
|
439
|
(45.8)
|
|
Net finance costs
|
(129)
|
(136)
|
5.1
|
(140)
|
(101)
|
38.6
|
|
Profit before taxation
|
300
|
525
|
(42.9)
|
98
|
338
|
(71.0)
|
|
Tax
|
(55)
|
(146)
|
62.3
|
(28)
|
(92)
|
(69.6)
|
|
Profit after taxation
|
245
|
379
|
(35.4)
|
70
|
246
|
(71.5)
|
|
Non-controlling interests
|
(26)
|
(41)
|
36.6
|
(26)
|
(41)
|
(36.6)
|
|
Profit attributable to shareholders
|
219
|
338
|
(35.2)
|
44
|
205
|
(78.5)
|
|
Diluted EPS (p)
|
20.0p
|
30.9p
|
(35.3)
|
4.0p
|
18.8p
|
(78.7)
|
1. Non-GAAP measures in this
table are reconciled in Appendix 4.
2. Headline operating profit
margin is headline operating profit divided by revenue less
pass-through costs and reported operating profit margin is reported
operating profit divided by revenue, with the % change expressed in
margin points.
Operating profit
Headline operating profit was £412m (H1 2024: £646m), at
a headline operating profit margin of 8.2% (H1 2024: 11.5%), 3.3
points lower than the prior period, and 2.9 points lower LFL. This
reflects the decline in revenue less pass-through costs (LFL
decline of 4.3%) and increased severance activity compared to the
prior period, in particular at WPP Media.
Total headline operating costs were down 6.8%, to £4,614m (H1
2024: £4,953m).
Staff costs of £3,685m were down 7.5% compared to the prior
period (H1 2024: £3,985m), representing lower headcount as a
result of the actions we have taken to mitigate the top-line
decline in H1, lower incentives and our restructuring initiatives,
which has more than offset wage inflation and severance costs in
the period, which were £86m (H1 2024: £36m).
Incentives of £59m were down 60.1% compared to the prior
period (H1 2024: £148m) due to business performance against
annual incentive targets and the disposal of FGS
Global.
The average number of people in the Group in the first half was
106,000 compared to 113,000 in H1 2024. The total number of people
as at 30 June 2025 was 104,000 compared to 111,000 as at 30 June
2024.
Establishment costs of £219m were down 9.5% compared to the
prior period (H1 2024: £242m) driven by the ongoing benefits
from the campus programme and consolidation of leases, the benefit
from the prior year FGS disposal in H2 2024 and a favourable FX
impact. IT costs of £340m were broadly flat supported by our
continuing investment in WPP Open, AI and data. Personal costs of
£98m were down 4.9% driven by savings in travel and
entertainment, and other operating expenses of £272m were down
3.5% driven by lower commercial and office costs.
Headline EBITDA (including IFRS 16 depreciation) for the period was
down 29.8% to £531m (H1 2024: £756m).
Reported operating profit was £221m (H1 2024: £423m) at a
reported operating profit margin of 3.3% (H1 2024: 5.9%) with the
decrease primarily due to the same factors as headline operating
profit above, with total adjusting items of £191m (H1 2024:
£223m). Reported operating profit includes goodwill impairment
charges of £116m (H1 2024: £nil), amortisation and
impairment of acquired intangible assets of £32m (H1 2024:
£57m) and restructuring costs of £45m (H1 2024:
£153m). The prior period included £23m of impairment of
investments in associates.
The restructuring costs represent a decrease of £108m from the
prior period, consistent with the expected ramp down shared at the
2024 Capital Markets day.
Net finance costs
Headline net finance costs of £129m were down 5.1% compared to
the prior period (H1 2024: £136m), primarily due to a lower
average adjusted net debt in H1 2025 compared to H1
2024.
Reported net finance costs were £140m (H1 2024: £101m),
including net expense of £11m (H1 2024: net income £35m)
relating to the revaluation and retranslation of financial
instruments.
Tax
The headline effective tax rate (based on headline profit before
tax) was 18.3% (H1 2024: 28.0%).
The headline tax charge in the first half is lower than the prior
corresponding period primarily due to the benefit of credits from
the successful resolution of a tax matter.
For the full year, we expect fixed elements within our tax charge
to have a proportionately higher effect on a lower profit before
tax, therefore our expectation is now for the full year headline
effective tax rate to be around 31%.
The reported effective tax rate was 28.6% (H1 2024: 27.2%). The
reported effective tax rate is higher than the headline effective
tax rate primarily due to non-deductible goodwill impairment
charges.
Given the Group’s geographic mix of profits and the changing
international tax environment, the tax rate is expected to increase
over the next few years.
Earnings per share (“EPS”) and dividend
Headline diluted EPS was 20.0p (H1 2024: 30.9p), a decrease of
35.3% due to lower headline operating profit offset by lower
headline net finance costs and a lower headline effective tax
rate.
Reported diluted EPS was 4.0p (H1 2024: 18.8p), a decrease of 78.7%
due to lower reported operating profit, higher net finance costs
and a higher reported effective tax rate.
For 2025, the Board is declaring an interim dividend of 7.5p (H1
2024: 15.0p). The record date for the interim dividend is
10 October 2025, and the dividend will be payable on
3 November 2025.
Cash flow highlights
Unaudited headline cash flow
statement1:
|
Six months ended (£ million)
|
30 June 2025
|
30 June 2024
|
|
Headline operating profit
|
412
|
646
|
|
Headline earnings from associates
|
17
|
15
|
|
Depreciation of property, plant and equipment
|
82
|
81
|
|
Amortisation of other intangibles
|
20
|
14
|
|
Depreciation of right-of-use assets
|
101
|
110
|
|
Headline EBITDA
|
632
|
866
|
|
Less: headline earnings from associates
|
(17)
|
(15)
|
|
Repayment of lease liabilities and related interest
|
(170)
|
(187)
|
|
Non-cash compensation
|
41
|
56
|
|
Non-headline cash items (including restructuring
costs)
|
(35)
|
(144)
|
|
Capex
|
(88)
|
(107)
|
|
Adjusted operating cash flow before working capital
|
363
|
469
|
|
Working capital
|
(1,348)
|
(1,056)
|
|
Adjusted operating cash flow
|
(985)
|
(587)
|
|
% conversion of Headline operating profit
|
(239) %
|
(91) %
|
|
Net dividends (to minorities)/from associates
|
(11)
|
(16)
|
|
Contingent consideration liability payments
|
(15)
|
(25)
|
|
Net interest
|
(93)
|
(49)
|
|
Cash tax2
|
(168)
|
(168)
|
|
Adjusted free cash flow
|
(1,272)
|
(845)
|
|
Disposal proceeds
|
6
|
33
|
|
Net initial acquisition payments
|
(133)
|
(29)
|
|
Dividends
|
—
|
—
|
|
Share purchases
|
(92)
|
(57)
|
|
Adjusted net cash flow
|
(1,491)
|
(898)
|
|
Reported:
|
|
|
|
Net cash outflow from operating activities
|
(1,036)
|
(540)
|
1. A summary of the
Group’s unaudited cash flow statement and notes for the six
months ended 30 June 2025 is provided in Appendix 1 and any
non-GAAP measures in this table are reconciled in Appendix
4.
2. Cash tax in H1 2025 includes
£43m related to tax payments for the FGS
disposal.
Adjusted operating cash outflow was £985m (H1 2024:
£587m). The main drivers of the larger cash outflow year on
year was the decrease in headline operating profit and a larger
working capital outflow, £292m higher than the prior period,
which was partially offset by a decrease in non-headline cash costs
to £35m (H1 2024: £144m). Working capital was a net
outflow of £1,348m (H1 2024: £1,056m) and reflects the
usual seasonality of client activity and timing of payments.
Non-headline cash items includes £40m of cash restructuring
and transformation costs offset by £5m of investment income
received. The decrease from the prior period is driven by the ramp
down of the previously announced structural cost saving programs
and lower spend on our IT transformation.
Adjusted free cash outflow was £1,272m, higher than prior
period (H1 2024: £845m) due to the higher adjusted operating
cash outflow and higher net interest payments. Adjusted net cash
outflow of £1,491m was higher than the prior period (H1 2024:
£898m) due to higher net initial acquisition payments, mainly
for the InfoSum acquisition, and higher share purchases compared to
the prior period.
Reported net cash outflow from operating activities (see Appendix
1) increased to £1,036m (H1 2024: £540m outflow) due to
the decrease in reported operating profit and a larger working
capital outflow.
Balance sheet highlights
Unaudited balance sheet
As at 30 June 2025, the Group had total equity of £3,408m
(31 December 2024: £3,734m).
Non-current assets of £11,543m decreased by £305m
(31 December 2024: £11,848m), primarily driven by lower
goodwill due to impairment charges recognised in H1
2025.
Current assets of £11,851m decreased by £1,810m
(31 December 2024: £13,661m). The decrease principally
relates to a decrease in cash and cash equivalents of £1,201m
and trade and other receivables which decreased by £356m to
£7,366m.
Current liabilities of £13,760m decreased by £1,756m
(31 December 2024: £15,516m). The decrease principally
relates to trade and other payables which decreased by
£1,989m, partially offset by a net increase in current
borrowings of £352m. The increase in current borrowings is due
to an increase of short-term financing offset by the repayment of
€500m of 1.375% bonds which matured March 2025.
The decrease in both trade and other receivables and trade and
other payables is primarily due to the seasonality of client
activity and timing of payments, with the movement from December
consistent with prior years.
Non-current liabilities of £6,226m (31 December 2024:
£6,259m) remained broadly flat.
Recognised within total equity, other comprehensive loss of
£304m (H1 2024: £62m loss) for the period includes a
£359m loss (H1 2024: £37m loss) for foreign exchange
differences on translation of foreign operations, and an £88m
gain (H1 2024: £18m loss) on the Group’s net investment
hedges.
A summary of the Group’s unaudited balance sheet and selected
notes as at 30 June 2025 is provided in Appendix
1.
Adjusted net debt
As at 30 June 2025, the Group had cash and cash equivalents of
£1.4bn (31 December 2024: £2.6bn) and borrowings of
£4.8bn (31 December 2024: £4.3bn). The Group has current
liquidity of £3.0bn (31 December 2024: £4.5bn) comprising
of cash and cash equivalents, bank overdrafts and undrawn credit
facilities.
As at 30 June 2025, adjusted net debt was £3.3bn
(31 December 2024: £1.7bn), up £1.6bn since the
beginning of the year, reflecting seasonal cash outflows in the
first half of the year. Average adjusted net debt at 30 June
2025 was £3.4bn, compared to £3.5bn at 31 December
2024 and £3.6bn at 30 June 2024.
The average adjusted net debt to headline EBITDA ratio in the 12
months ended 30 June 2025 is 1.98x (12 months ended
30 June 2024: 1.85x), which is outside our target range of
1.5x-1.75x.
The Group has a five-year Revolving Credit Facility of $2.5bn
maturing in February 2030, with a further one-year extension option
and with no financial covenants.
As at 30 June 2025, our bond portfolio had an average maturity
of 6.4 years (31 December 2024: 6.3 years) and a weighted
average coupon rate of 3.5% (31 December 2024:
3.5%).
Financial outlook
Our guidance for 2025 is as follows:
|
Like-for-like revenue less pass-through costs growth of -3% to
-5%
Headline operating margin expected to decline 50 to 175 bps
year-on-year (excluding the impact of FX)
|
Other 2025 modelling assumptions:
●
Mergers
and acquisitions will reduce revenue less pass-through costs by
around 3.0 points primarily due to the disposal of FGS Global,
partially offset by anticipated M&A
●
FX
impact: current rates (at 1 August 2025, with USD/GBP rate of
1.33) imply a c.1.7% drag on FY 2025 revenue less pass-through
costs, with c.10bps reduction expected on FY 2025 headline
operating margin
●
In
keeping with our revenue less pass-through cost and headline
operating margin guidance, we now expect the
following:
●
Headline
earnings from associates of around £40m
(unchanged)
●
Non-controlling
interests of around £65m (unchanged)
●
Headline
net finance costs of around £280m (unchanged)
●
Headline effective tax rate1
of around 31% vs. 29%
previously
●
Capex
of around £220m vs. £250m previously
●
Cash
restructuring costs of around £90m vs. £110m
previously
●
Adjusted
operating cash flow before working capital of around £1.1bn to
£1.2bn vs. £1.4bn previously
Medium-term targets
In January 2024, we presented our updated medium-term financial
framework including the following three targets:
●
3%+
LFL growth in revenue less pass-through costs
●
16-17%
headline operating profit margin
●
Adjusted operating cash flow conversion of
85%+2
This announcement contains information that qualifies or may
qualify as inside information. The person responsible for arranging
the release of this announcement on behalf of WPP plc is Balbir
Kelly-Bisla, Company Secretary.
1. Headline tax as a % of headline profit before
tax.
2. Adjusted operating cash
flow divided by headline operating profit.
Q2 2025 highlights
At our January 2024 Capital Markets Day we set out four strategic
pillars. Below we highlight key developments from Q2 against these
areas of strategic focus.
1. Lead through AI, data and
technology
●
Driving investment and adoption
of WPP Open – At the
preliminary results in February 2025 we outlined our ambition to
drive further investment in WPP Open, taking the annual spend on
our AI-powered marketing operating system to £300m in 2025
from £250m in 2024. A key metric for us is internal adoption
and we have seen further progress in adoption, with 69,000 of our
people (equivalent to c.85% of client-facing staff) using the
platform actively on a monthly basis, up from 33,000/c.40% in
December.
●
Supporting WPP Media’s ID
to AI approach via the acquisition of InfoSum
– The
acquisition of InfoSum announced in April (see link)
marks a major strategic step forward for WPP Media’s
AI-driven data offer. The acquisition of InfoSum embeds an
AI-enabled, secure and privacy-enhancing data collaboration
platform within WPP Open, enabling data-driven marketing and AI
model training for WPP and its clients, and is a critical milestone
in our journey to leapfrog traditional identity-led solutions. In
May, InfoSum was named as a Leader in the IDC MarketScape
(see link).
●
WPP Media launches Open
Intelligence – Leveraging the acquisition of InfoSum and progress
on our global media platform, WPP Media launched Open Intelligence
(see link).
Open Intelligence is an AI-based tool designed to predict audience
behaviour and marketing performance, powering Open Media Studio as
well as other applications within WPP Open. The key characteristics
are that it: (a) moves beyond reliance on identity data by
combining it with other data sources, including partner first party
data, for a more comprehensive, multimodal understanding of
audiences; (b) employs a privacy-by-default approach enabled by
InfoSum, enabling custom model training without moving or sharing
data using federated learning; and (c) drives continuous
optimisation of audience segmentation, creative development and
media buying to improve ROI for our clients.
●
Burson launches Reputation
Capital – In June,
Burson, WPP’s global PR and communications agency, launched
Reputation Capital, an AI-powered technology and consulting
solution designed to connect drivers of reputation to specific
business outcomes such as stock price, sales, or purchase intent
(see link).
Available through WPP Open, this tool provides clients with a live
view of their reputation, quantifying the tangible economic value
of building and maintaining a strong corporate perception and
enabling immediate decision-making to drive commercial success for
our clients. The launch of Reputation Capital follows the release
of Decipher Tech in late March (see link).
Decipher Tech uses AI-driven predictive believability and virality
indicators to forecast how messaging will resonate and to drive
engagement with stakeholders.
●
Complementing direct investment
with further strategic partnerships – During
the course of the quarter, WPP expanded relationships with a number
of strategic partners. In June (see link),
WPP announced that it is the first advertising and marketing
services company to integrate Symphony, TikTok’s
groundbreaking generative AI tools, into WPP Open giving WPP teams
early access to TikTok’s cutting-edge innovations, empowering
clients to connect with TikTok’s massive audience through
dynamic and engaging content. Separately, linked with the launch of
Open Intelligence, WPP Media signed a number of partnerships and
integrations with leading platforms to help advertisers activate
their first party data for enhanced audience reach, measurement and
media optimisation. This includes separate agreements with Amazon
Ads (see link)
as well as a number of retailers and technology companies,
including Criteo, DICK’s Sporting Goods and Ocado Ads
(see link).
Finally, WPP expanded its partnership with Vercel (see
link)
which brings Vercel's pioneering AI technologies – v0 and AI
SDK – to WPP teams and their clients. The first-of-its-kind
partnership is expected to increase development efficiency by up to
25%, empowering WPP teams to deliver higher-value problem-solving
through WPP Open and craft more innovative creative executions for
clients.
2. Accelerate growth through the power of creative
transformation
●
Creative Company of the Year at
Cannes Lions 2025 – In June,
WPP was named Creative Company of the Year, a testament to the
collective creative excellence of our agencies and their
outstanding client partnerships (see link).
In addition, WPP’s Mindshare received the joint highest
points tally in Media Network of the Year and Ogilvy and VML were
placed in the top four for Creative Network of the
Year.
Overall, WPP agencies
collectively secured 168 Lions, featuring a coveted Titanium Lion
and 10 Grand Prix. Key winning campaigns include Ogilvy's
"Vaseline
Verified" for
Unilever (Titanium Lion & 2 Grand Prix), Mindshare's
"Real
Beauty Redefined for the AI Era" for Dove (Grand Prix for
Media), DAVID’s “Haaland
Payback Time” for Supercell (Grand Prix
in Entertainment), VML’s “Preserved
Promos”
for Ziploc (Grand Prix for Creative Commerce), VML &
OpenMind’s “Phone
Break”
for Nestlé (Grand Prix for Outdoor) and AKQA's
"Sounds
Right" (Grand
Prix for Innovation).
Although
a non-financial metric, WPP’s performance in awards showcases
the Group’s ability to deliver innovative approaches to
audience engagement, deep cultural relevance, and pioneering,
responsible applications of technology to drive growth for clients
worldwide.
●
New cross-channel B2B brand
campaign – In May, WPP
launched a cross-channel B2B brand campaign
“Transforming How We
Create”, targeting
business leaders and senior marketing decision-makers. Led by
WPP’s Chief Creative Officer Rob Reilly, the campaign was
developed using WPP Open by a cross-agency team to highlight
WPP’s AI credentials, our pioneering work and ambition to
lead in the age of AI. The campaign reached 75% of the target
audience and saw engagement metrics (video completion and
click-through rates) well above benchmark.
●
Appointment of Global Creative
& Innovation Lead – In July,
Daniel Barak was appointed as Global Creative & Innovation Lead
at WPP, joining from RG/A where he had been Global Executive
Creative Director. At WPP, Daniel will work closely both with Rob
Reilly, WPP’s Global Chief Creative Officer and Elav Horwitz,
Global Head of Strategic Partnerships and AI Solutions, to amplify
WPP’s creative and innovation efforts by delivering
breakthrough creative campaigns, immersive brand experiences and
innovation-led storytelling that leverages AI, data and
technology.
3. Build world-class, market-leading brands
●
WPP Media launches as fully
integrated, AI-powered media company, replacing GroupM
– In late
May, WPP strengthened its position as the leading marketing
services business for the intelligent era with the launch of WPP
Media, an AI-driven media company that replaces GroupM (see
link).
Connected by WPP Open, WPP Media unites media, data, and production
capabilities to deliver creative personalisation at scale,
reflecting a strategic move towards simpler, more integrated
solutions for clients in the AI era.
●
WPP Media Business Intelligence
releases latest ‘This Year, Next Year’ report
– In June, WPP Media
Business Intelligence published its Mid-Year Global Advertising
Forecast for 2025, projecting global ad revenue to reach $1.08
trillion with 6.0% growth, a recalibration from previous forecasts
due to global trade disruptions (see link).
The report also introduces a new classification system for
advertising activity (Content, Commerce, Location, and
Intelligence) and examines key trends including the continued
dominance of digital advertising, the rapid growth of retail media
and user-generated content and the increasing impact of AI on media
investment.
●
New Leadership at AKQA
– In early
July, WPP announced the appointment of Baiju Shah, formerly Global
Chief Strategy Officer at Accenture Song, as the new Global CEO of
AKQA (see link).
This strategic hire reflects WPP's mission to deliver outstanding
creativity coupled with deep expertise in AI, data, and technology
and follows a more comprehensive rebuild of the global leadership
team announced in April (see link)
which included the appointment of Miriam Plon Sauer as Chief
Strategy Officer, Ben Royce as Chief Technology Officer, Tim Devine
as Chief Innovation Officer and Jonathan Bolden as Chief
Transformation Officer.
4. Execute efficiently to drive financial returns through margin
and cash
●
Reducing freelancer use
– WPP
continues to strategically reduce its reliance on external
freelancers, driven by enhanced internal capabilities and
technology-enabled efficiencies. This proactive approach has
resulted in a 13% reduction in freelancer usage over the last 12
months, contributing to a c.25% overall reduction in freelancers
over the past two years to fewer than 8,000 in the first half.
Freelancers now represent 6.7% of our total workforce, down from
8.2% two years ago.
●
Empowering teams with AI agents
– During
the quarter, we launched AgentBuilder Pro within WPP Open,
upgrading our existing AgentBuilder tool. Powered by AgentBuilder,
more than 50,000 agents have been created inside WPP driving
significant advances in terms of internal productivity as well as
driving better outcomes for clients. More broadly, deployment of
AI-enhanced tools is associated with an increase in productivity
for teams using WPP Open, incorporating improved production
efficiency and a reduction in review and approval
times.
Corporate governance, purpose and ESG
●
Annual and Sustainability
Reports – Our 2024 Annual
Report was published at the end
of March 2025. The report provides a comprehensive overview of
WPP’s financial results, strategic progress and future growth
initiatives while including important updates on corporate
governance and ESG. Additional context on ways WPP is working to
deliver against its purpose can be seen in our 2024 Sustainability
Report.
Business segment and regional analysis
Business segments – revenue analysis
|
|
Q2 2025
|
H1 2025
|
||||
|
|
£ million
|
+/(-) % reported
|
+/(-) % LFL
|
£ million
|
+/(-) % reported
|
+/(-) % LFL
|
|
Global Integrated Agencies
|
3,024
|
(6.6)
|
(3.9)
|
5,871
|
(4.0)
|
(2.2)
|
|
Public Relations
|
176
|
(43.4)
|
(9.3)
|
351
|
(41.6)
|
(7.8)
|
|
Specialist Agencies
|
220
|
(17.3)
|
(0.5)
|
441
|
(13.4)
|
(0.5)
|
|
Total Group
|
3,420
|
(10.4)
|
(4.0)
|
6,663
|
(7.8)
|
(2.4)
|
Business segments – revenue less pass-through costs
analysis
|
|
Q2 2025
|
H1 2025
|
||||
|
|
£ million
|
+/(-) % reported
|
+/(-) % LFL
|
£ million
|
+/(-) % reported
|
+/(-) % LFL
|
|
Global Integrated Agencies
|
2,183
|
(8.7)
|
(6.0)
|
4,302
|
(6.4)
|
(4.5)
|
|
Public Relations
|
168
|
(42.7)
|
(7.8)
|
335
|
(41.0)
|
(7.2)
|
|
Specialist Agencies
|
193
|
(15.0)
|
(1.9)
|
389
|
(10.8)
|
(0.4)
|
|
Total Group
|
2,544
|
(12.6)
|
(5.8)
|
5,026
|
(10.2)
|
(4.3)
|
Business segments – headline operating profit
analysis
|
£ million
|
H1 2025
|
% margin1
|
H1 2024
|
% margin1
|
|
Global Integrated Agencies
|
352
|
8.2
|
551
|
12.0
|
|
Public Relations
|
39
|
11.6
|
80
|
14.1
|
|
Specialist Agencies
|
21
|
5.4
|
15
|
3.4
|
|
Total Group
|
412
|
8.2
|
646
|
11.5
|
1. Headline operating profit as
a percentage of revenue less pass-through
costs.
Business segment and regional analysis
Regional – revenue analysis
|
|
Q2 2025
|
H1 2025
|
||||
|
|
£ million
|
+/(-) % reported
|
+/(-) % LFL
|
£ million
|
+/(-) % reported
|
+/(-) % LFL
|
|
N. America
|
1,279
|
(12.8)
|
(2.8)
|
2,537
|
(8.8)
|
(1.1)
|
|
United Kingdom
|
517
|
(5.0)
|
(6.6)
|
1,011
|
(4.4)
|
(6.2)
|
|
W Cont. Europe
|
713
|
(6.4)
|
(1.1)
|
1,351
|
(7.3)
|
(1.0)
|
|
AP, LA, AME, CEE1
|
911
|
(12.6)
|
(6.2)
|
1,764
|
(8.6)
|
(3.1)
|
|
Total Group
|
3,420
|
(10.4)
|
(4.0)
|
6,663
|
(7.8)
|
(2.4)
|
Regional – revenue less pass-through costs
analysis
|
|
Q2 2025
|
H1 2025
|
||||
|
|
£ million
|
+/(-) % reported
|
+/(-) % LFL
|
£ million
|
+/(-) % reported
|
+/(-) % LFL
|
|
N. America
|
974
|
(15.5)
|
(4.6)
|
1,966
|
(10.9)
|
(2.4)
|
|
United Kingdom
|
381
|
(3.8)
|
(6.5)
|
749
|
(3.9)
|
(6.0)
|
|
W Cont. Europe
|
534
|
(12.2)
|
(6.5)
|
1,021
|
(12.3)
|
(5.5)
|
|
AP, LA, AME, CEE
|
655
|
(13.4)
|
(6.8)
|
1,290
|
(11.0)
|
(5.4)
|
|
Total Group
|
2,544
|
(12.6)
|
(5.8)
|
5,026
|
(10.2)
|
(4.3)
|
Regional – headline operating profit analysis
|
£ million
|
H1 2025
|
% margin2
|
H1 2024
|
% margin2
|
|
N. America
|
281
|
14.3
|
336
|
15.2
|
|
United Kingdom
|
47
|
6.3
|
78
|
10.0
|
|
W Cont. Europe
|
36
|
3.5
|
117
|
10.1
|
|
AP, LA, AME, CEE
|
48
|
3.7
|
115
|
7.9
|
|
Total Group
|
412
|
8.2
|
646
|
11.5
|
1. Asia Pacific, Latin America,
Africa & Middle East and Central & Eastern
Europe.
2. Headline operating profit as
a percentage of revenue less pass-through
costs.
Appendix 1: Interim results for the six months ended 30 June
2025
Unaudited condensed consolidated interim income statement for the
six months ended 30 June 2025
|
£ million
|
Notes
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Revenue
|
3
|
6,663
|
7,227
|
|
Costs of services
|
|
(5,826)
|
(6,187)
|
|
Gross profit
|
|
837
|
1,040
|
|
General and administrative costs
|
|
(616)
|
(617)
|
|
Operating profit
|
|
221
|
423
|
|
Earnings from associates
|
|
17
|
16
|
|
Profit before interest and taxation
|
|
238
|
439
|
|
Finance and investment income
|
|
49
|
74
|
|
Finance costs
|
|
(178)
|
(210)
|
|
Revaluation and retranslation of financial instruments
|
|
(11)
|
35
|
|
Profit before taxation
|
3
|
98
|
338
|
|
Taxation
|
|
(28)
|
(92)
|
|
Profit for the period
|
|
70
|
246
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
Equity holders of the parent
|
|
44
|
205
|
|
Non-controlling interests
|
|
26
|
41
|
|
|
|
70
|
246
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
Basic earnings per ordinary share
|
5
|
4.1p
|
19.1p
|
|
Diluted earnings per ordinary share
|
5
|
4.0p
|
18.8p
|
The accompanying notes form an integral part of this unaudited
condensed consolidated interim income statement.
Unaudited condensed consolidated interim statement of
comprehensive
(loss) / income for the six months ended 30 June 2025
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Profit for the period
|
70
|
246
|
|
Items that may be reclassified subsequently to profit or
loss:
|
|
|
|
Foreign exchange differences on translation of foreign
operations
|
(359)
|
(37)
|
|
Gain/(loss) on net investment hedges
|
88
|
(18)
|
|
Cash flow hedges:
|
|
|
|
Fair value gain/(loss) arising on hedging instruments
|
19
|
(45)
|
|
Amounts reclassified to profit or loss
|
(46)
|
29
|
|
Costs of hedging
|
3
|
11
|
|
|
(295)
|
(60)
|
|
|
|
|
|
Items that will not be reclassified subsequently to profit or
loss:
|
|
|
|
Movements
on equity investments held at fair value through other
comprehensive income
|
(9)
|
(2)
|
|
|
(9)
|
(2)
|
|
|
|
|
|
Other comprehensive loss for the period
|
(304)
|
(62)
|
|
Total comprehensive (loss)/income for the period
|
(234)
|
184
|
|
|
|
|
|
Attributable to:
|
|
|
|
Equity holders of the parent
|
(248)
|
142
|
|
Non-controlling interests
|
14
|
42
|
|
|
(234)
|
184
|
The accompanying notes form an integral part of this unaudited
condensed consolidated interim statement of comprehensive (loss) /
income.
Unaudited condensed consolidated interim cash flow statement for
the six months ended 30 June 2025
|
£ million
|
Notes
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Net cash outflow from operating activities1
|
6
|
(1,036)
|
(540)
|
|
Investing activities
|
|
|
|
|
Acquisitions1
|
9
|
(127)
|
(33)
|
|
Disposals of investments and subsidiaries
|
|
5
|
29
|
|
Purchases of property, plant and equipment
|
|
(42)
|
(82)
|
|
Purchases of intangible assets
|
|
(46)
|
(25)
|
|
Proceeds on disposal of property, plant and equipment
|
|
1
|
1
|
|
Net cash outflow from investing activities
|
|
(209)
|
(110)
|
|
Financing activities
|
|
|
|
|
Principal elements of lease payments
|
|
(120)
|
(140)
|
|
Cash consideration received from non-controlling
interests
|
|
—
|
3
|
|
Cash consideration for purchase of non-controlling
interests
|
|
(7)
|
(20)
|
|
Share repurchases and buybacks
|
|
(92)
|
(57)
|
|
Proceeds from borrowings
|
|
666
|
1,060
|
|
Repayment of borrowings
|
|
(418)
|
(13)
|
|
Repayment of borrowing related derivatives2
|
|
(26)
|
—
|
|
Financing and share issue costs
|
|
—
|
(6)
|
|
Dividends paid to non-controlling interests in subsidiary
undertakings
|
|
(26)
|
(34)
|
|
Net cash (outflow)/inflow from financing activities
|
|
(23)
|
793
|
|
Net (decrease)/increase in cash and cash equivalents
|
|
(1,268)
|
143
|
|
Foreign exchange translation of cash and cash
equivalents
|
|
(31)
|
(59)
|
|
Cash and cash equivalents at beginning of
period
|
|
2,467
|
1,860
|
|
Cash and cash equivalents at end of period
|
7
|
1,168
|
1,944
|
The accompanying notes form an integral part of this
unaudited
condensed consolidated interim
cash flow statement.
1 Contingent
consideration liability payments in excess of the amount determined
at acquisition are recorded as operating
activities.
2 Repayment of borrowing
related derivatives was previously presented within Repayment of
borrowings.
Unaudited condensed consolidated interim balance sheet as at
30 June 2025
|
£ million
|
Notes
|
30 June 2025
|
31 December 2024
|
|
Non-current assets
|
|
|
|
|
Goodwill
|
|
7,348
|
7,610
|
|
Other intangible assets
|
|
726
|
737
|
|
Property, plant and equipment
|
|
841
|
909
|
|
Right-of-use assets
|
|
1,396
|
1,385
|
|
Interests in associates
|
|
238
|
253
|
|
Other investments
|
|
346
|
398
|
|
Deferred tax assets
|
|
304
|
323
|
|
Corporate income tax recoverable
|
|
64
|
59
|
|
Trade and other receivables
|
|
280
|
174
|
|
|
|
11,543
|
11,848
|
|
Current assets
|
|
|
|
|
Corporate income tax recoverable
|
|
100
|
113
|
|
Trade and other receivables
|
|
7,366
|
7,722
|
|
Accrued income and unbilled media
|
|
2,948
|
3,188
|
|
Cash and cash equivalents
|
7
|
1,437
|
2,638
|
|
|
|
11,851
|
13,661
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
|
(11,067)
|
(13,056)
|
|
Deferred income and customer advances
|
|
(1,216)
|
(1,160)
|
|
Corporate income tax payable
|
|
(182)
|
(333)
|
|
Lease liabilities
|
|
(222)
|
(240)
|
|
Borrowings
|
7
|
(936)
|
(584)
|
|
Provisions for liabilities and charges
|
|
(137)
|
(143)
|
|
|
|
(13,760)
|
(15,516)
|
|
Net current liabilities
|
|
(1,909)
|
(1,855)
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Borrowings
|
7
|
(3,845)
|
(3,744)
|
|
Trade and other payables
|
|
(136)
|
(229)
|
|
Deferred tax liabilities
|
|
(173)
|
(142)
|
|
Employee benefit obligations
|
|
(129)
|
(132)
|
|
Provisions for liabilities and charges
|
|
(192)
|
(232)
|
|
Lease liabilities
|
|
(1,751)
|
(1,780)
|
|
|
|
(6,226)
|
(6,259)
|
|
Net assets
|
|
3,408
|
3,734
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Called-up share capital
|
|
109
|
109
|
|
Share premium account
|
|
579
|
579
|
|
Other reserves
|
|
(140)
|
151
|
|
Own shares
|
|
(208)
|
(191)
|
|
Retained earnings
|
|
2,824
|
2,827
|
|
Equity shareholders’ funds
|
|
3,164
|
3,475
|
|
Non-controlling interests
|
|
244
|
259
|
|
Total equity
|
|
3,408
|
3,734
|
The accompanying notes form an integral part of this
unaudited
condensed consolidated interim
balance sheet.
Unaudited condensed consolidated interim statement of changes in
equity for the period ended 30 June 2025
|
£ million
|
Called-up
share capital
|
Share premium account
|
Other reserves
|
Own shares
|
Retained earnings1
|
Total equity
share
holders’ funds
|
Non-controlling interests
|
Total
|
|
Balance at 1 January 2024
|
114
|
577
|
187
|
(990)
|
3,488
|
3,376
|
457
|
3,833
|
|
Profit for the period
|
—
|
—
|
—
|
—
|
205
|
205
|
41
|
246
|
|
Other comprehensive loss
|
—
|
—
|
(61)
|
—
|
(2)
|
(63)
|
1
|
(62)
|
|
Total comprehensive (loss)/income
|
—
|
—
|
(61)
|
—
|
203
|
142
|
42
|
184
|
|
Dividends paid
|
—
|
—
|
—
|
—
|
—
|
—
|
(34)
|
(34)
|
|
Treasury shares used for share option schemes
|
—
|
—
|
—
|
54
|
(54)
|
—
|
—
|
—
|
|
Non-cash share-based incentive plans (including share
options)
|
—
|
—
|
—
|
—
|
56
|
56
|
—
|
56
|
|
Tax on share-based payments
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Net movement in own shares held by ESOP Trusts
|
—
|
—
|
—
|
(4)
|
(53)
|
(57)
|
—
|
(57)
|
|
Net movement of liabilities in respect of put options
|
—
|
—
|
12
|
—
|
2
|
14
|
—
|
14
|
|
Net movement in non-controlling interests2
|
—
|
—
|
—
|
—
|
(34)
|
(34)
|
(4)
|
(38)
|
|
Total transactions with owners
|
—
|
—
|
12
|
50
|
(83)
|
(21)
|
(38)
|
(59)
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2024
|
114
|
577
|
138
|
(940)
|
3,608
|
3,497
|
461
|
3,958
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 January 2025
|
109
|
579
|
151
|
(191)
|
2,827
|
3,475
|
259
|
3,734
|
|
Profit for the period
|
—
|
—
|
—
|
—
|
44
|
44
|
26
|
70
|
|
Other comprehensive loss
|
—
|
—
|
(282)
|
—
|
(10)
|
(292)
|
(12)
|
(304)
|
|
Total comprehensive (loss)/income
|
—
|
—
|
(282)
|
—
|
34
|
(248)
|
14
|
(234)
|
|
Dividends paid
|
—
|
—
|
—
|
—
|
—
|
—
|
(26)
|
(26)
|
|
Treasury shares used for share option schemes
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Non-cash share-based incentive plans (including share
options)
|
—
|
—
|
—
|
—
|
41
|
41
|
—
|
41
|
|
Tax on share-based payments
|
—
|
—
|
—
|
—
|
(1)
|
(1)
|
—
|
(1)
|
|
Net movement in own shares held by ESOP Trusts
|
—
|
—
|
—
|
(17)
|
(75)
|
(92)
|
—
|
(92)
|
|
Net movement of liabilities in respect of put options
|
—
|
—
|
(9)
|
—
|
—
|
(9)
|
—
|
(9)
|
|
Net movement in non-controlling interests2
|
—
|
—
|
—
|
—
|
(2)
|
(2)
|
(3)
|
(5)
|
|
Total transactions with owners
|
—
|
—
|
(9)
|
(17)
|
(37)
|
(63)
|
(29)
|
(92)
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2025
|
109
|
579
|
(140)
|
(208)
|
2,824
|
3,164
|
244
|
3,408
|
The accompanying notes form an integral part of this unaudited
condensed consolidated interim statement of changes in
equity.
1 Accumulated losses on
existing equity investments held at fair value through other
comprehensive income are £363 million at 30 June 2025 (31
December 2024: £354 million).
2 Net movement in
non-controlling interests 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 preparation
The unaudited condensed consolidated interim financial statements
for the six months ended 30 June 2025 comply with IAS 34
Interim Financial Reporting as issued by the International
Accounting Standards Board (IASB), the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom’s
Financial Conduct Authority and with the accounting policies of WPP
plc and its subsidiaries (the Group), which were set out on pages
151 - 156 of the 2024 Annual Report and Accounts. No changes have
been made to the Group’s accounting policies in the period
ended 30 June 2025.
The tax charge for the Group is calculated in accordance with IAS
34, by applying management’s best estimate of the effective
tax rate (excluding discrete items) expected to apply to total
annual earnings, to the profit before tax for the six months ended
30 June 2025. This is then adjusted for certain discrete items
which occurred in the interim period.
The Group does not consider that the amendments to standards
adopted during the period have a significant impact on the
financial statements.
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. The unaudited condensed consolidated interim
financial statements for the six months to 30 June 2025 and
six months to 30 June 2024 do not constitute statutory
accounts. The statutory accounts for the year ended
31 December 2024, reported on by the Group’s auditor,
have been delivered to the Jersey Registrar and received an
unqualified auditors’ report.
Having considered the principal risks (as outlined on pages 78 - 85
of the 2024 Annual Report and Accounts, and summarised in Appendix
2), the directors consider it appropriate to adopt the going
concern basis of accounting in preparing these interim financial
statements. In making this assessment, the directors have reviewed
the results of latest cash flow forecasts for the period to 31
December 2026 and have considered the results of a reverse stress
test to quantify the level of revenue less pass-through costs
decline required to utilise all of the Group's liquidity headroom,
taking into account debt maturities and cost mitigations. The
likelihood of declines required to utilise all available headroom
is considered remote. None of the Group's facilities have financial
covenants.
The unaudited condensed consolidated interim financial statements
do not include all the information and disclosures required in the
annual financial statements and should be read in conjunction with
the Group’s annual consolidated financial statements as at
31 December 2024.
2. Costs of services and general and administrative
costs
Costs of services and general and administrative costs
include:
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Staff costs1
|
3,685
|
3,985
|
|
Establishment costs
|
219
|
242
|
|
Media pass-through costs
|
1,279
|
1,208
|
|
Other costs of services and general and administrative
costs2
|
1,259
|
1,369
|
|
|
6,442
|
6,804
|
1 Additional staff costs of
£4 million (period ended 30 June 2024: £77 million) are
included within Restructuring and transformation costs
below.
2 Other costs of services and
general and administrative costs include £358 million (period
ended 30 June 2024: £420 million) of other pass-through
costs.
2. Costs of services and general and administrative costs
(continued)
Other costs of services and general and administrative costs
include the following significant items:
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Goodwill impairment
|
116
|
—
|
|
Amortisation and impairment of acquired intangible
assets
|
32
|
57
|
|
Restructuring and transformation costs
|
32
|
131
|
Goodwill impairment
In the six months to 30 June 2025, goodwill impairment charges of
£116 million were recognised (period to 30 June 2024:
£nil). As a result of the separation of AKQA and Grey in 2025,
the previous AKQA Group cash generating unit (“CGU”),
which was impaired in 2024, now constitutes two separate CGUs for
AKQA and Grey. Of the total impairment charges recognised in the
current period, £58 million related to the Grey CGU and
£58 million related to the AKQA CGU.
The impairment charges related to both the Grey and AKQA CGUs
reflect the impact of previously unforeseen declines in trading
performance, predominantly due to the adverse impact of further
macroeconomic pressures and uncertainty in the period following the
introduction of new global tariffs in April, which are impacting
client discretionary spend and the volume of net new
business.
The recoverable amounts of the Grey and AKQA CGUs, which are both
part of the Global Integrated Agencies reportable segment, are
£181 million and £172 million, respectively. The
recoverable amounts of the Grey and AKQA CGUs were calculated on a
fair value less costs of disposal (FVLCD) basis. The FVLCDs were
determined using a discounted cash flow approach with future cash
flows based upon a projection period of up to five years, with cash
flows beyond the projection period based on a long-term growth rate
of 2.0% (2024: 2.0%). Post-tax discount rates of 12.25% (2024:
10.5%) and 11.25% (2024: 10.5%) were applied to determine the Grey
and AKQA recoverable amounts, respectively. The basis for the key
inputs, which are considered Level 3 in the fair value hierarchy,
is consistent with the previous full year impairment
test.
The new factors impacting Grey and AKQA, described above, have also
reduced the headroom at the Ogilvy CGU in 2025. If operating
margins, which the impairment assessments are sensitive to, in
future periods were 2.0% lower than current expectations,
additional goodwill impairment charges of £36 million for AKQA
and £27 million for Grey would be recognised. For Ogilvy, if
operating margin was 1.0% lower than current expectations a
goodwill impairment charge of £68 million would be recognised,
if the discount rate was 1.0% higher a goodwill impairment charge
of £84 million would be recognised.
Amortisation and impairment of acquired intangible
assets
Charges of £32 million (2024: £57 million) relate to
ongoing amortisation charges for previously acquired intangible
assets. The prior period included an accelerated amortisation
charge of £20 million for certain brands that no longer had a
useful life due to the creation of Burson.
Restructuring and transformation costs
Charges of £32 million (2024: £131 million) include
£25 million (2024: £47 million) in relation to the
Group’s IT transformation programme, which includes the
rollout of new ERP systems. The prior period included costs of
£76 million related to the continuing transformation plan,
including the creation of VML and Burson, and simplification of
GroupM.
Notes to the unaudited condensed consolidated interim financial
statements
3. Segmental analysis
Reported contributions by reportable segments were as
follows:
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Revenue1
|
|
|
|
Global Integrated Agencies
|
5,871
|
6,117
|
|
Public Relations
|
351
|
601
|
|
Specialist Agencies
|
441
|
509
|
|
|
6,663
|
7,227
|
|
Revenue less pass-through
costs1,2
|
|
|
|
Global Integrated Agencies
|
4,302
|
4,595
|
|
Public Relations
|
335
|
568
|
|
Specialist Agencies
|
389
|
436
|
|
|
5,026
|
5,599
|
|
Headline operating
profit1,3
|
|
|
|
Global Integrated Agencies
|
352
|
551
|
|
Public Relations
|
39
|
80
|
|
Specialist Agencies
|
21
|
15
|
|
|
412
|
646
|
|
Adjusting items within IFRS operating profit4
|
(191)
|
(223)
|
|
Financing items5
|
(140)
|
(101)
|
|
Earnings from associates
|
17
|
16
|
|
Reported profit before tax
|
98
|
338
|
1 Intersegment transactions
have not been separately disclosed as they are not
material.
2 Revenue less pass-through
costs is defined and reconciled by segment and by geographical area
in Appendix 4.
3 Headline operating profit is
defined in Appendix 4. A reconciliation from reported profit before
tax to headline operating profit is also provided in Appendix
4.
4 Adjusting items are defined
and reconciled in Appendix 4.
5 Financing items include
finance and investment income, finance costs and revaluation and
retranslation of financial instruments.
3. Segmental analysis (continued)
Reported contributions by geographical area were as
follows:
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Revenue1
|
|
|
|
North America2
|
2,537
|
2,781
|
|
United Kingdom
|
1,011
|
1,058
|
|
Western Continental Europe
|
1,351
|
1,458
|
|
Asia Pacific, Latin America, Africa & Middle East and Central
& Eastern Europe
|
1,764
|
1,930
|
|
|
6,663
|
7,227
|
|
Revenue less pass-through
costs1,3
|
|
|
|
North America2
|
1,966
|
2,207
|
|
United Kingdom
|
749
|
779
|
|
Western Continental Europe
|
1,021
|
1,164
|
|
Asia Pacific, Latin America, Africa & Middle East and Central
& Eastern Europe
|
1,290
|
1,449
|
|
|
5,026
|
5,599
|
|
Headline operating
profit1,4
|
|
|
|
North America2
|
281
|
336
|
|
United Kingdom
|
47
|
78
|
|
Western Continental Europe
|
36
|
117
|
|
Asia Pacific, Latin America, Africa & Middle East and Central
& Eastern Europe
|
48
|
115
|
|
|
412
|
646
|
|
Adjusting items within IFRS operating profit5
|
(191)
|
(223)
|
|
Financing items6
|
(140)
|
(101)
|
|
Earnings from associates
|
17
|
16
|
|
Reporting profit before
tax4
|
98
|
338
|
1 Interregional transactions
have not been separately disclosed as they are not
material.
2 North America includes the
US, which has revenue of £2,387 million (2024: £2,609
million), revenue less pass-through costs of £1,852 million
(2024: £2,071 million) and headline operating profit of
£264 million (2024: £316 million).
3 Revenue less pass-through
costs is defined and reconciled by segment and by geographical area
in Appendix 4.
4 Headline operating profit is
defined in Appendix 4. A reconciliation from reported profit before
tax to headline operating profit is also provided in Appendix
4.
5 Adjusting items are defined
and reconciled in Appendix 4.
6 Financing items include
finance and investment income, finance costs and revaluation and
retranslation of financial instruments.
Notes to the unaudited condensed consolidated interim financial
statements
4. Ordinary dividends
The Board has recommended an interim dividend of 7.5p (2024: 15.0p)
per ordinary share. This is expected to be paid on 3 November
2025 to shareholders on the register at 10 October 2025. The
Board recommended a final dividend of 24.4p per ordinary share in
respect of 2024. This was paid on 4 July 2025.
5. Earnings per share ("EPS")
Basic EPS
The calculation of basic EPS is as follows:
|
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Profit for the period attributable to equity holders of the
parent
(£ million)
|
44
|
205
|
|
Weighted average number of shares used in basic EPS calculation
(million)
|
1,077
|
1,075
|
|
Basic EPS
|
4.1 p
|
19.1 p
|
Diluted EPS
The calculation of diluted EPS is as follows:
|
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Profit for the period attributable to equity holders of the
parent
(£ million)
|
44
|
205
|
|
Weighted average number of shares used in diluted EPS calculation
(million)
|
1,093
|
1,092
|
|
Diluted EPS
|
4.0 p
|
18.8 p
|
A reconciliation between the shares used in calculating basic and
diluted EPS is as follows:
|
million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Weighted average number of shares used in basic EPS
calculation
|
1,077
|
1,075
|
|
Other potentially issuable shares
|
16
|
17
|
|
Weighted average number of shares used in diluted EPS
calculation
|
1,093
|
1,092
|
At 30 June 2025 there were 1,091,394,251 (30 June 2024:
1,141,513,946) ordinary shares in issue, including 12,591,893
treasury shares (30 June 2024: 62,959,463).
Notes to the unaudited condensed consolidated interim financial
statements
6. Analysis of cash flows
The following table analyses the net cash outflow from operating
activities presented within the cash flow statement:
Net cash outflow from operating activities:
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Profit for the period
|
70
|
246
|
|
Taxation
|
28
|
92
|
|
Revaluation and retranslation of financial instruments
|
11
|
(35)
|
|
Finance costs
|
178
|
210
|
|
Finance and investment income
|
(49)
|
(74)
|
|
Earnings from associates
|
(17)
|
(16)
|
|
Operating profit
|
221
|
423
|
|
Adjustments for:
|
|
|
|
Non-cash share-based incentive plans (including share
options)
|
41
|
56
|
|
Depreciation of property, plant and equipment
|
82
|
81
|
|
Depreciation of right-of-use assets
|
101
|
110
|
|
Goodwill impairment
|
116
|
—
|
|
Impairment of investments in associates
|
—
|
23
|
|
Property-related impairment charges
|
5
|
4
|
|
Amortisation and impairment of acquired intangible
assets
|
32
|
57
|
|
Amortisation of other intangible assets
|
20
|
14
|
|
Gains on disposal of investments and subsidiaries
|
(2)
|
(8)
|
|
Gains on sale of property, plant and equipment
|
—
|
(2)
|
|
Operating cash flow before movements in working capital and
provisions
|
616
|
758
|
|
Decrease in trade receivables and accrued income
|
375
|
430
|
|
Decrease in trade payables and deferred income
|
(1,303)
|
(1,055)
|
|
Increase in other receivables
|
(219)
|
(109)
|
|
Decrease in other payables
|
(186)
|
(337)
|
|
(Decrease) / increase in provisions
|
(15)
|
15
|
|
Cash used by operations
|
(732)
|
(298)
|
|
Corporation and overseas tax paid
|
(168)
|
(168)
|
|
Interest paid on lease liabilities
|
(50)
|
(47)
|
|
Other interest and similar charges paid
|
(117)
|
(118)
|
|
Interest received
|
24
|
69
|
|
Investment income
|
5
|
5
|
|
Dividends from associates
|
15
|
18
|
|
Contingent consideration liability payments recognised in operating
activities1
|
(13)
|
(1)
|
|
Net cash outflow from operating activities
|
(1,036)
|
(540)
|
1 Contingent consideration
liability payments in excess of the amount determined at
acquisition are recorded as operating
activities.
Notes to the unaudited condensed consolidated interim financial
statements
7. Cash and cash equivalents and total borrowings
|
£ million
|
30 June 2025
|
31 December 2024
|
|
Cash and cash equivalents as presented in the consolidated balance
sheet
|
1,437
|
2,638
|
|
Bank overdrafts
|
(269)
|
(171)
|
|
Cash and cash equivalents as presented in the consolidated cash
flow statement
|
1,168
|
2,467
|
|
Borrowings due within one year (excluding bank
overdrafts)
|
(667)
|
(413)
|
|
Borrowings due after one year
|
(3,845)
|
(3,744)
|
|
Total borrowings (excluding bank overdrafts)
|
(4,512)
|
(4,157)
|
The Group estimates that the fair value of corporate bonds is
£3,651 million at 30 June 2025
(31 December 2024: £3,964 million).
8. Financial Instruments - fair value
The following table provides an analysis of financial instruments
that are measured subsequent to initial recognition at fair value,
grouped into levels 1 to 3 based on the degree to which the fair
value is observable, or based on observable inputs:
|
£ million
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
30 June 2025
|
|
|
|
|
|
Derivatives in designated hedge relationships
|
|
|
|
|
|
Derivative assets
|
—
|
86
|
—
|
86
|
|
Derivative liabilities
|
—
|
(3)
|
—
|
(3)
|
|
Held at fair value through profit or loss
|
|
|
|
|
|
Money market funds
|
12
|
—
|
—
|
12
|
|
Other investments
|
60
|
—
|
198
|
258
|
|
Derivative assets
|
—
|
2
|
—
|
2
|
|
Derivative liabilities
|
—
|
(2)
|
—
|
(2)
|
|
Contingent consideration liabilities
|
—
|
(31)
|
(88)
|
(119)
|
|
Held at fair value through other comprehensive income
|
|
|
|
|
|
Trade and other receivables
|
—
|
237
|
—
|
237
|
|
Other investments
|
2
|
—
|
86
|
88
|
The fair values of financial assets and liabilities are based on
quoted market prices where available. Where the market value is not
available, the Group has estimated relevant fair values on the
basis of available information from outside sources.
For all level 3 fair value measurements, a change to one or more of
these unobservable inputs to reflect a reasonably possible
alternative assumption would not result in a significant change to
the fair value.
8. Financial Instruments - fair value (continued)
Reconciliation of level 3 fair value measurements:
|
£ million
|
Contingent consideration liabilities
|
Other investments
|
|
1 January 2025
|
(133)
|
322
|
|
Losses recognised in the income statement
|
(3)
|
(15)
|
|
Losses recognised in other comprehensive income
|
—
|
(9)
|
|
Exchange adjustments
|
2
|
(20)
|
|
Transfers
|
31
|
—
|
|
Additions
|
—
|
6
|
|
Settlements
|
15
|
—
|
|
30 June 2025
|
(88)
|
284
|
9. Acquisitions
Acquisition of InfoSum
On 4 April 2025, the Group acquired 100% of the ordinary share
capital of Cognitive Logic Inc.(“InfoSum”), a data
collaboration platform.
Total cash consideration of £108 million was paid on
completion date. Total net assets acquired were £17 million,
including £32 million of proprietary technology intangible
assets. The goodwill on the acquisition was £91 million. The
goodwill is attributable to anticipated synergies and will not be
deductible for tax purposes.
10. Related party transactions
The Group enters into transactions with its associate undertakings,
primarily in relation to pass-through billing
arrangements.
The following amounts were outstanding at 30 June 2025 and 31
December 2024:
|
£ million
|
30 June 2025
|
31 December 2024
|
|
Amounts owed by related parties
|
109
|
68
|
|
Amounts owed to related parties
|
(124)
|
(104)
|
There are no material provisions for doubtful debts relating to
these balances and no material expense has been recognised in the
income statement in relation to bad or doubtful debts for the
period ended 30 June 2025.
11. Events after the reporting period
There were no events after the reporting period that require
disclosure.
Director’s responsibility statement
The Directors confirm that to the best of their
knowledge:
a.
the
condensed set of financial statements, which has been prepared in
accordance with the applicable set of accounting standards, gives a
true and fair view of the assets, liabilities, financial position
and profit or loss of the issuer, or the undertakings included in
the consolidation as a whole as required by DTR
4.2.4R;
b.
the
interim management report includes a fair review of the information
required by DTR 4.2.7R; and
c.
the
interim management report includes a fair review of the information
required by DTR 4.2.8R.
The names and functions of the WPP plc Board can be found at:
wpp.com/about/our-leadership/the-wpp-board
This responsibility statement is approved by the Board of Directors
and is signed on its behalf by:
J Wilson
Chief Financial Officer
7 August 2025
Independent review report to WPP plc
Report on the condensed consolidated interim financial
statements
Our conclusion
We have reviewed WPP plc’s condensed consolidated interim
financial statements (the “interim financial
statements”) in the 2025 Interim Results of WPP plc for the
six month period ended 30 June 2025 (the
“period”).
Based on our review, nothing has come to our attention that causes
us to believe that the interim financial statements are not
prepared, in all material respects, in accordance with
International Accounting Standard 34 “Interim Financial
Reporting” as issued by the IASB and the Disclosure Guidance
and Transparency Rules sourcebook of the United Kingdom’s
Financial Conduct Authority.
The interim financial statements comprise:
●
the
condensed consolidated interim balance sheet at 30 June
2025;
●
the
condensed consolidated interim income statement for the period then
ended;
●
the
condensed consolidated interim statement of comprehensive (loss) /
income for the period then ended;
●
the
condensed consolidated interim cash flow statement for the period
then ended;
●
the
condensed consolidated interim statement of changes in equity for
the period then ended; and
●
the
explanatory notes to the interim financial statements.
The interim financial statements included in the 2025 Interim
Results of WPP plc have been prepared in accordance with
International Accounting Standard 34 “Interim Financial
Reporting” as issued by the IASB and the Disclosure Guidance
and Transparency Rules sourcebook of the United Kingdom’s
Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard
on Review Engagements (UK) 2410 “Review of Interim Financial
Information Performed by the Independent Auditor of the
Entity” issued by the Financial Reporting Council for use in
the United Kingdom (“ISRE (UK) 2410”). A review of
interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting
matters, and applying analytical and other review
procedures.
A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and,
consequently, does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit
opinion.
We have read the other information contained in the 2025 Interim
Results and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those
performed in an audit as described in the basis for conclusion
section of this report, nothing has come to our attention to
suggest that the directors have inappropriately adopted the going
concern basis of accounting or that the directors have identified
material uncertainties relating to going concern that are not
appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However,
future events or conditions may cause the group to cease to
continue as a going concern.
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the directors
The 2025 Interim Results, including the interim financial
statements, is the responsibility of, and has been approved by the
directors. The directors are responsible for preparing the 2025
Interim Results in accordance with the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom’s
Financial Conduct Authority. In preparing the 2025 Interim Results,
including the interim financial statements, the directors are
responsible for assessing the group’s ability to continue as
a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the group or to
cease operations or have no realistic alternative but to do
so.
Our responsibility is to express a conclusion on the interim
financial statements in the 2025 Interim Results based on our
review. Our conclusion, including our conclusions relating to going
concern, is based on procedures that are less extensive than audit
procedures, as described in the basis for conclusion paragraph of
this report. This report, including the conclusion, has been
prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom’s Financial Conduct Authority and for no
other purpose. We do not, in giving this conclusion, accept or
assume responsibility for any other purpose or to any other person
to whom this report is shown or into whose hands it may come save
where expressly agreed by our prior consent in
writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
7 August 2025
Appendix 2: Principal risks and uncertainties
The Board regularly reviews the principal and emerging risks and
uncertainties affecting the Group and these were set out on pages
78 - 85 of the 2024 Annual Report and Accounts, and are as follows:
economic risk; geopolitical risk; strategic plan; AI strategy; IT
and systems; client loss; client concentration; people, culture and
succession; cyber and information security; credit risk; internal
financial controls; data privacy; taxation; regulatory; sanctions;
and environmental, social and governance (ESG).
No changes to the Group’s principal risks and uncertainties
have occurred in the period ended 30 June 2025.
Appendix 3: Cautionary statement regarding forward-looking
statements
This document contains statements that are, or may be deemed to be,
“forward-looking statements”. Forward-looking
statements give the Company’s current expectations or
forecasts of future events.
These forward-looking statements may include, among other things,
plans, objectives, beliefs, intentions, strategies, projections and
anticipated future economic performance based on assumptions and
the like that are subject to risks and uncertainties. These
statements can be identified by the fact that they do not relate
strictly to historical or current facts. They use words such as
‘aim’, ‘anticipate’, ‘believe’,
‘estimate’, ‘expect’,
‘forecast’, ‘guidance’,
‘intend’, ‘may’, ‘will’,
‘should’, ‘potential’,
‘possible’, ‘predict’,
‘project’, ‘plan’, ‘target’,
and other words and similar references to future periods but are
not the exclusive means of identifying such statements. As such,
all forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances that are beyond the
control of the Company. Actual results or outcomes may differ
materially from those discussed or implied in the forward-looking
statements. Therefore, you should not rely on such forward-looking
statements, which speak only as of the date they are made, as a
prediction of actual results or otherwise. Important factors which
may cause actual results to differ include but are not limited to:
the unanticipated loss of a material client or key personnel;
delays, suspensions or reductions in client advertising budgets;
shifts in industry rates of compensation; regulatory compliance
costs or litigation; changes in competitive factors in the
industries in which we operate and demand for our products and
services; changes in client advertising, marketing and corporate
communications requirements; our inability to realise the future
anticipated benefits of acquisitions; failure to realise our
assumptions regarding goodwill and indefinite lived intangible
assets; natural disasters or acts of terrorism; the Company’s
ability to attract new clients; the economic and geopolitical
impact of the conflicts in Ukraine and the Middle East; the risk of
global economic downturn; slower growth, increasing interest rates
and high and sustained inflation; tariffs and other trade barriers;
supply chain issues affecting the distribution of our
clients’ products; technological changes and risks to the
security of IT and operational infrastructure, systems, data and
information resulting from increased threat of cyber and other
attacks; effectively managing the risks, challenges and
efficiencies presented by using Artificial Intelligence (AI) and
Generative AI technologies and partnerships in our business; risks
related to our environmental, social and governance goals and
initiatives, including impacts from regulators and other
stakeholders, and the impact of factors outside of our control on
such goals and initiatives; the Company’s exposure to changes
in the values of other major currencies (because a substantial
portion of its revenues are derived and costs incurred outside of
the UK); and the overall level of economic activity in the
Company’s major markets (which varies depending on, among
other things, regional, national and international political and
economic conditions and government regulations in the world’s
advertising markets). In addition, you should consider the risks
described in Item 3D, captioned ‘Risk Factors’ in the
Company’s most recent Annual Report on Form 20-F, which could
also cause actual results to differ from forward-looking
information. Neither the Company, nor any of its directors,
officers or employees, provides any representation, assurance or
guarantee that the occurrence of any events anticipated, expressed
or implied in any forward-looking statements will actually occur.
Accordingly, no assurance can be given that any particular
expectation will be met and investors are cautioned not to place
undue reliance on the forward-looking statements.
Other than in accordance with its legal or regulatory obligations
(including under the Market Abuse Regulation, the UK Listing Rules
and the Disclosure and Transparency Rules of the Financial Conduct
Authority), the Company undertakes no obligation to update or
revise any such forward-looking statements, whether as a result of
new information, future events or otherwise.
Any forward-looking statements made by or on behalf of the Group
speak only as of the date they are made and are based upon the
knowledge and information available to the Directors at the
time.
Appendix 4: Alternative performance measures for the period ended
30 June 2025
The Group presents alternative performance measures, including
headline operating profit, headline operating profit margin,
headline profit before interest and tax, headline profit before
tax, headline earnings, headline basic and diluted EPS, headline
EBITDA, revenue less pass-through costs, adjusted net debt and
average adjusted net debt, adjusted operating cash flow, adjusted
free cash flow and adjusted net cash flow. These are used by
management for internal performance analyses. The presentation of
these measures facilitates comparability with other companies,
although management’s measures may not be calculated in the
same way as similarly titled measures reported by other companies,
and these measures are useful in connection with discussions with
the investment community.
In the calculation of headline measures, judgement is required by
management in determining which items are considered to be large,
unusual and non-recurring such that they are to be
excluded.
The exclusion of certain adjusting items may result in headline
measures being materially higher or lower than reported earnings,
for example when significant impairments or restructuring charges
are excluded but the related benefits are included within headline
measures. Headline measures should not be considered in isolation
as they provide additional information to aid the understanding of
the Group’s financial performance.
Reconciliation of revenue to revenue less pass-through
costs:
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Revenue
|
6,663
|
7,227
|
|
Media pass-through costs
|
(1,279)
|
(1,208)
|
|
Other pass-through costs
|
(358)
|
(420)
|
|
Revenue less pass-through costs
|
5,026
|
5,599
|
Reconciliation of revenue to revenue less pass-through costs by
reportable segment:
Six months ended 30 June 2025
|
£ million
|
Global Integrated Agencies
|
Public Relations
|
Specialist Agencies
|
|
Revenue
|
5,871
|
351
|
441
|
|
Media pass-through costs
|
(1,279)
|
—
|
—
|
|
Other pass-through costs
|
(290)
|
(16)
|
(52)
|
|
Revenue less-pass through costs
|
4,302
|
335
|
389
|
Six months ended 30 June 2024
|
£ million
|
Global Integrated Agencies
|
Public Relations
|
Specialist Agencies
|
|
Revenue
|
6,117
|
601
|
509
|
|
Media pass-through costs
|
(1,208)
|
—
|
—
|
|
Other pass-through costs
|
(314)
|
(33)
|
(73)
|
|
Revenue less-pass through costs
|
4,595
|
568
|
436
|
Reconciliation of revenue to revenue less pass-through costs by
geographical area:
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
North America
|
|
|
|
Revenue
|
2,537
|
2,781
|
|
Media pass-through costs
|
(416)
|
(395)
|
|
Other pass-through costs
|
(155)
|
(179)
|
|
Revenue less pass-through costs
|
1,966
|
2,207
|
|
United Kingdom
|
|
|
|
Revenue
|
1,011
|
1,058
|
|
Media pass-through costs
|
(185)
|
(182)
|
|
Other pass-through costs
|
(77)
|
(97)
|
|
Revenue less pass-through costs
|
749
|
779
|
|
|
|
|
|
Western Continental Europe
|
|
|
|
Revenue
|
1,351
|
1,458
|
|
Media pass-through costs
|
(271)
|
(231)
|
|
Other pass-through costs
|
(59)
|
(63)
|
|
Revenue less pass-through costs
|
1,021
|
1,164
|
|
|
|
|
|
Asia Pacific, Latin America, Africa & Middle East and Central
& Eastern Europe
|
||
|
Revenue
|
1,764
|
1,930
|
|
Media pass-through costs
|
(407)
|
(400)
|
|
Other pass-through costs
|
(67)
|
(81)
|
|
Revenue less pass-through costs
|
1,290
|
1,449
|
Reconciliation of profit before taxation to headline operating
profit:
|
£ million
|
Six months ended 30 June 2025
|
Margin
|
Six months ended 30 June 2024
|
Margin
|
|
Profit before taxation
|
98
|
|
338
|
|
|
Finance and investment income
|
(49)
|
|
(74)
|
|
|
Finance costs
|
178
|
|
210
|
|
|
Revaluation and retranslation of financial instruments
|
11
|
|
(35)
|
|
|
Profit before interest and taxation
|
238
|
|
439
|
|
|
Earnings from associates
|
(17)
|
|
(16)
|
|
|
Operating profit1
|
221
|
3.3 %
|
423
|
5.9 %
|
|
Goodwill impairment
|
116
|
|
—
|
|
|
Impairment of investments in associates
|
—
|
|
23
|
|
|
Amortisation and impairment of acquired intangible
assets
|
32
|
|
57
|
|
|
Restructuring and transformation costs
|
32
|
|
131
|
|
|
Property-related restructuring costs2
|
13
|
|
22
|
|
|
Gains on disposal of investments and subsidiaries
|
(2)
|
|
(8)
|
|
|
Gains on disposal of property
|
—
|
|
(2)
|
|
|
Headline operating profit1
|
412
|
8.2 %
|
646
|
11.5 %
|
1 Operating profit margin is
calculated as operating profit as a percentage of revenue. Headline
operating profit margin is calculated as headline operating profit
as a percentage of revenue less pass-through
costs.
2 Property-related
restructuring costs includes £5 million of property-related
impairment charges (2024: £4 million).
Headline operating profit margin before and after earnings from
associates:
|
£ million
|
Six months ended 30 June 2025
|
Margin
|
Six months ended 30 June 2024
|
Margin
|
|
Revenue less pass-through costs
|
5,026
|
|
5,599
|
|
|
Headline operating profit
|
412
|
8.2 %
|
646
|
11.5 %
|
|
Headline earnings from associates
|
17
|
|
15
|
|
|
Headline PBIT
|
429
|
8.5 %
|
661
|
11.8 %
|
Calculation of headline EBITDA:
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Headline PBIT
|
429
|
661
|
|
Depreciation of property, plant and equipment
|
82
|
81
|
|
Amortisation of other intangible assets
|
20
|
14
|
|
Headline EBITDA (including depreciation of right-of-use
assets)
|
531
|
756
|
|
Depreciation of right-of-use assets
|
101
|
110
|
|
Headline EBITDA
|
632
|
866
|
Headline EBITDA (including depreciation of right-of-use assets) is
used in the Group’s key leverage metric (average adjusted net
debt/headline EBITDA within the range of 1.5x-1.75x).
Reconciliation of profit before taxation to headline PBT and
headline earnings:
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Profit before taxation
|
98
|
338
|
|
Goodwill impairment
|
116
|
—
|
|
Impairment of investments in associates
|
—
|
23
|
|
Amortisation and impairment of acquired intangible
assets
|
32
|
57
|
|
Restructuring and transformation costs
|
32
|
131
|
|
Property-related restructuring costs
|
13
|
22
|
|
Gains on disposal of investments and subsidiaries
|
(2)
|
(8)
|
|
Gains on disposal of property
|
—
|
(2)
|
|
Share of adjusting and other items for associates
|
—
|
(1)
|
|
Revaluation and retranslation of financial instruments
|
11
|
(35)
|
|
Headline PBT
|
300
|
525
|
|
Headline tax charge
|
(55)
|
(146)
|
|
Non-controlling interests
|
(26)
|
(41)
|
|
Headline earnings
|
219
|
338
|
Headline PBT and headline earnings are metrics that management use
to assess the performance of the business.
Calculation of headline net finance costs:
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Finance and investment income
|
(49)
|
(74)
|
|
Finance costs
|
178
|
210
|
|
Headline net finance costs
|
129
|
136
|
Calculation of headline taxation:
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Headline PBT
|
300
|
525
|
|
Tax charge
|
28
|
92
|
|
Tax credit relating to restructuring and transformation costs and
property-related costs
|
10
|
36
|
|
Deferred tax impact of the amortisation of acquisition related
intangible assets and liabilities
|
5
|
8
|
|
Deferred tax relating to investments in associates
|
12
|
10
|
|
Headline tax charge
|
55
|
146
|
|
Headline tax rate
|
18.3%
|
28.0%
|
The headline tax rate as a percentage of headline PBT (that
includes the share of headline results of associates) is 18.3%
(2024: 28.0%).
Earnings from associates:
Management reviews the 'earnings from associates' by assessing the
underlying component movements including 'share of profit before
interest and taxation of associates', 'share of adjusting and other
items for associates', 'share of interest and non-controlling
interests of associates', and 'share of taxation of associates',
which are derived from the income statements of the associate
undertakings. Management applies consistent principles in
determining items adjusted from headline profit as with
subsidiaries.
The following table is an analysis of 'earnings from associates'
and underlying component movements:
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Share of profit before interest and taxation
|
19
|
18
|
|
Share of adjusting and other items for associates
|
—
|
1
|
|
Share of interest and non-controlling interests
|
3
|
2
|
|
Share of taxation
|
(5)
|
(5)
|
|
Earnings from associates
|
17
|
16
|
|
less: share of adjusting and other items for
associates
|
—
|
(1)
|
|
Headline earnings from associates
|
17
|
15
|
Headline earnings per share:
The calculation of basic headline EPS is as follows:
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Headline earnings (£ million)
|
219
|
338
|
|
Weighted average number of shares used in basic EPS calculation
(million) (note 5)
|
1,077
|
1,075
|
|
Basic headline EPS
|
20.3p
|
31.4p
|
The calculation of diluted headline EPS is as follows:
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Headline earnings (£ million)
|
219
|
338
|
|
Weighted average number of shares used in diluted EPS calculation
(million) (note 5)
|
1,093
|
1,092
|
|
Diluted headline EPS
|
20.0p
|
30.9p
|
Adjusted net debt and average adjusted net debt:
Management believes that adjusted net debt and average adjusted net
debt are appropriate and meaningful measures of the debt levels
within the Group. Adjusted net debt at a period end is defined as
cash and cash equivalents, bank overdrafts and borrowings due
within one year, borrowings due after one year and derivative
financial instruments hedging debt items. The definition of
adjusted net debt has been updated to include the impact of
derivative financial instruments that hedge debt items as
management believes this provides a more accurate representation of
the adjusted net debt levels of the Group.
|
£ million
|
30 June 2025
|
31 December 20241
|
30 June 20241
|
|
Cash and cash equivalents
|
1,437
|
2,638
|
2,128
|
|
Borrowings due within one year
|
(936)
|
(584)
|
(1,201)
|
|
Borrowings due after one year
|
(3,845)
|
(3,744)
|
(4,298)
|
|
Derivative financial instruments
|
83
|
(52)
|
(55)
|
|
Adjusted net debt1
|
(3,261)
|
(1,742)
|
(3,426)
|
|
Average adjusted net
debt1
|
(3,383)
|
(3,506)
|
(3,633)
|
Adjusted net debt excludes lease liabilities. Average adjusted net
debt is calculated as the average of the Group’s monthly
adjusted net debt. Average adjusted net debt for 30 June 2025 and
30 June 2024 represents the average for the twelve month period
ended 30 June 2025 and 30 June 2024 respectively. Average adjusted
net debt for 31 December 2024 represents the average for the twelve
month period ended 31 December 2024.
Average adjusted net debt to headline EBITDA ratio:
|
£ million
|
30 June 2025
|
31 December 2024
|
30 June 2024
|
|
Average adjusted net debt (12 month rolling)1
|
(3,383)
|
(3,506)
|
(3,633)
|
|
Headline EBITDA (including depreciation of right-of-use assets) (12
month rolling)
|
1,710
|
1,935
|
1,966
|
|
Average adjusted net debt to headline
EBITDA ratio1
|
1.98x
|
1.81x
|
1.85x
|
The average adjusted net debt and headline EBITDA (including
depreciation of right-of-use assets) amounts used in the average
adjusted net debt to headline EBITDA (including depreciation of
right-of-use assets) ratio calculation above are for the 12 months
ended 30 June 2025, 31 December 2024 and 30 June 2024
respectively.
1 The definitions of adjusted
net debt and average adjusted net debt have been updated to include
derivative financial instruments. Prior year comparatives and
related metrics (i.e. the average adjusted net debt to headline
EBITDA ratio) have been re-presented for this new
definition.
Reconciliation of adjusted cash flow measures
The Group bases its internal cash flow objectives on adjusted
operating cash flow, adjusted operating cash flow before working
capital, adjusted free cash flow and adjusted net cash
flow.
Reconciliation of operating cash flow, adjusted free cash flow and
adjusted net cash flow:
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Net cash outflow from operating activities
|
(1,036)
|
(540)
|
|
Corporation and overseas tax paid
|
168
|
168
|
|
Interest paid on lease liabilities
|
50
|
47
|
|
Other interest and similar charges paid
|
117
|
118
|
|
Interest received
|
(24)
|
(69)
|
|
Investment income
|
(5)
|
(5)
|
|
Dividends from associates
|
(15)
|
(18)
|
|
Contingent consideration liability payments recognised in operating
activities
|
13
|
1
|
|
Cash used by operations
|
(732)
|
(298)
|
|
Purchase of property, plant and equipment
|
(42)
|
(82)
|
|
Purchase of intangible assets
|
(46)
|
(25)
|
|
Repayment of lease liabilities
|
(120)
|
(140)
|
|
Interest paid on lease liabilities
|
(50)
|
(47)
|
|
Investment income
|
5
|
5
|
|
Adjusted operating cash flow
|
(985)
|
(587)
|
|
Corporation and overseas tax paid
|
(168)
|
(168)
|
|
Other interest and similar charges paid
|
(117)
|
(118)
|
|
Interest received
|
24
|
69
|
|
Dividends from associates
|
15
|
18
|
|
Contingent consideration liability payments
|
(15)
|
(25)
|
|
Dividends paid to non-controlling interests in subsidiary
undertakings
|
(26)
|
(34)
|
|
Adjusted free cash flow
|
(1,272)
|
(845)
|
|
Net disposal proceeds
|
6
|
33
|
|
Net initial acquisition payments
|
(133)
|
(29)
|
|
Share purchases
|
(92)
|
(57)
|
|
Adjusted net cash flow
|
(1,491)
|
(898)
|
Reconciliation of adjusted operating cash flow before working
capital:
|
£ million
|
Six months ended 30 June 2025
|
Six months ended 30 June 2024
|
|
Adjusted operating cash flow
|
(985)
|
(587)
|
|
Less movements in working capital and provisions:
|
|
|
|
Decrease in trade receivables and accrued income
|
(375)
|
(430)
|
|
Decrease in trade payables and deferred income
|
1,303
|
1,055
|
|
Increase in other receivables
|
219
|
109
|
|
Decrease in other payables
|
186
|
337
|
|
(Decrease) / increase in provisions
|
15
|
(15)
|
|
Adjusted operating cash flow before working capital
|
363
|
469
|
Reconciliation of adjusted cash flow measures
(continued)
Management believes adjusted operating cash flow is a target that
can be translated into targets for operating business units that do
not have direct control of items which influence adjusted free cash
flow, such as the Group effective tax rate and leverage; and is
meaningful to investors as a measure of the degree to which
headline operating profit is converted into cash after the cost of
leased operating assets, investment in capital expenditure, and
working capital.
Adjusted operating cash flow before working capital is meaningful
to investors because it excludes working capital movements which
can be volatile around period ends.
Adjusted free cash flow is meaningful to investors because it is
the measure of the Group’s funds available for acquisition
related payments, dividends to shareholders, share repurchases and
debt repayment. The purpose of presenting adjusted free cash flow
is to indicate the ongoing cash generation within the control of
the Group after taking account of the necessary cash expenditures
of maintaining the capital and operating structure of the Group (in
the form of payments of interest, corporate taxation, and capital
expenditure).
Adjusted net cash flow is meaningful to investors because it is the
measure of the Group’s funds available for debt repayment or
to increase cash on hand after acquisition related payments,
dividends to shareholders and share repurchases. The purpose of
presenting adjusted net cash flow is to indicate the ongoing cash
generation within the control of the Group after taking account of
the necessary cash expenditures of maintaining the capital and
operating structure of the Group (in the form of payments of
interest, corporate taxation, and capital expenditure) and after
acquisitions, dividend payments to shareholders and share
repurchases.
Constant currency and ‘like-for-like’:
These condensed consolidated interim financial statements are
presented in pounds sterling. However, the Group’s
significant international operations give rise to fluctuations in
foreign exchange rates. To neutralise foreign exchange impact and
illustrate the underlying change in revenue and profit from one
period to the next, the Group has adopted the practice of
discussing results in both reportable currency (local currency
results translated into pounds sterling at the prevailing foreign
exchange rate) and constant currency.
Management also believes that discussing like-for-like contributes
to the understanding of the Group’s performance and trends
because it allows for meaningful comparisons of the current period
to that of prior periods.
Further details of the constant currency and like-for-like methods
are outlined in the Glossary.
The following tables reconcile reported revenue growth for the
three and six months ended 30 June 2025 and 2024, including
like-for-like revenue growth for the same periods:
|
£ million
|
|
|
|
Revenue
|
|
|
|
Six months ended 30 June 2024 reported (H1)
|
7,227
|
|
|
Impact of exchange rate changes
|
(175)
|
(2.4) %
|
|
Impact of acquisitions and disposals
|
(214)
|
(3.0) %
|
|
Like-for-like growth
|
(175)
|
(2.4) %
|
|
Six months ended 30 June 2025 reported (H1)
|
6,663
|
(7.8) %
|
Constant currency and ‘like-for-like’
(continued):
|
£ million
|
|
|
|
Revenue
|
|
|
|
Three months ended 30 June 2024 reported (Q2)
|
3,815
|
|
|
Impact of exchange rate changes
|
(135)
|
(3.6) %
|
|
Impact of acquisitions and disposals
|
(107)
|
(2.8) %
|
|
Like-for-like growth
|
(153)
|
(4.0) %
|
|
Three months ended 30 June 2025 reported (Q2)
|
3,420
|
(10.4) %
|
|
|
|
|
The following tables reconcile revenue less pass-through costs
growth for the three and six months ended 30 June 2025 and 2024,
including like-for-like revenue less pass-through costs growth for
the same periods:
|
£ million
|
|
|
|
Revenue less pass-through costs
|
|
|
|
Six months ended 30 June 2024 reported (H1)
|
5,599
|
|
|
Impact of exchange rate changes
|
(134)
|
(2.4) %
|
|
Impact of acquisitions and disposals
|
(196)
|
(3.5) %
|
|
Like-for-like growth
|
(243)
|
(4.3) %
|
|
Six months ended 30 June 2025 reported (H1)
|
5,026
|
(10.2) %
|
|
£ million
|
|
|
|
Revenue less pass-through costs
|
|
|
|
Three months ended 30 June 2024 reported (Q2)
|
2,912
|
|
|
Impact of exchange rate changes
|
(103)
|
(3.5) %
|
|
Impact of acquisitions and disposals
|
(96)
|
(3.3) %
|
|
Like-for-like growth
|
(169)
|
(5.8) %
|
|
Three months ended 30 June 2025 reported (Q2)
|
2,544
|
(12.6) %
|
The following table reconciles headline operating profit growth for
the six months ended 30 June 2025 and 2024, including like-for-like
headline operating profit growth for the same period:
|
£ million
|
Margin
|
|
|
|
Headline operating profit
|
|
|
|
|
Six months ended 30 June 2024 reported (H1)
|
11.5 %
|
646
|
|
|
Impact of exchange rate changes
|
|
(19)
|
(2.9) %
|
|
Impact of acquisitions and disposals
|
|
(27)
|
(4.2) %
|
|
Like-for-like growth
|
|
(188)
|
(29.1) %
|
|
Six months ended 30 June 2025 reported (H1)
|
8.2 %
|
412
|
(36.2) %
|
Adjusted free cash flow
Adjusted free cash flow is calculated as cash used in/generated by
operations plus dividends received from associates, interest
received, investment income received, and share option proceeds,
less corporation and overseas tax paid, interest and similar
charges paid, dividends paid to non-controlling interests in
subsidiary undertakings, repayment of lease liabilities, interest
paid on lease liabilities, contingent consideration liability
payments and purchases of property, plant and equipment and
purchases of intangible assets.
Adjusted operating cash flow
Adjusted operating cash flow is calculated as cash used
in/generated by operations plus investment income received, and
share option proceeds, less repayment of lease liabilities,
interest paid on lease liabilities, and purchases of property,
plant and equipment and purchases of intangible
assets.
Adjusted operating cash flow before working capital
Adjusted operating cash flow before movement in trade receivables
and accrued income, trade payables and deferred income, other
receivables, other payables and provisions.
Adjusted net cash flow
Adjusted net cash flow is calculated as adjusted free cash flow (as
defined above) plus disposal proceeds, less net initial acquisition
payments, dividends and share purchases.
Adjusting items
Adjusting items include gains/losses on disposal of investments and
subsidiaries, gains/losses on disposal of property, goodwill
impairment, other impairment charges, impairment of investments in
associates, amortisation and impairment of acquired intangible
assets, restructuring and transformation costs, property-related
restructuring costs, other transaction costs, legal provision
charges/gains, revaluation and retranslation of financial
instruments and share of adjusting and other items for
associates.
Average adjusted net debt and adjusted net debt
Average adjusted net debt is the average monthly net borrowings of
the Group. Adjusted net debt consists of cash and cash equivalents,
bank overdrafts, current and non-current borrowings, derivative
financial instruments hedging debt, and excludes lease
liabilities.
Billings
Billings comprise the gross amounts billed to clients in respect of
commission-based/fee-based income together with the total of other
fees earned.
Constant currency
The Group uses US dollar-based, constant currency models to measure
performance across all jurisdictions. These are calculated by
applying budgeted 2025 exchange rates to local currency reported
results for the current and prior year, which excludes any
variances attributable to foreign exchange rate
movements.
Establishment costs
Establishment costs are costs directly related to the occupancy of
the buildings utilised by WPP. These include the depreciation of
right of use assets and leasehold improvements; and the costs of
property taxes, utilities, maintenance and facilities management
amongst others.
General and administrative costs
General and administrative costs include marketing costs, certain
professional fees and an allocation of other costs, including staff
and establishment costs (defined above), based on the function of
employees within the Group.
Headline costs
Headline costs comprise costs of services and general
administrative costs excluding gains/losses on disposal of
investments and subsidiaries, gains/losses on disposal of property,
goodwill impairment, other impairment charges, impairment of
investments in associates, amortisation and impairment of acquired
intangible assets, restructuring and transformation costs,
property-related restructuring costs, other transaction costs,
legal provision charges/gains, revaluation and retranslation of
financial instruments and share of adjusting and other items for
associates.
Headline earnings
Headline PBT less headline tax charge and headline non-controlling
interests.
Headline EBITDA
Profit before finance income/costs and revaluation and
retranslation of financial instruments, taxation, gains/losses on
disposal of investments and subsidiaries, gains/losses on disposal
of property, goodwill impairment, impairment of investments in
associates, amortisation and impairment of acquired intangible
assets, restructuring and transformation costs, property-related
restructuring costs, legal provision charges/gains and share of
adjusting and other items for associates.
Headline earnings from associates
Earnings from associates, excluding share of adjusting and other
items for associates.
Headline net finance costs
Net finance costs (as defined below) excluding revaluation and
retranslation of financial instruments.
Headline operating profit
Operating profit before gains/losses on disposal of investments and
subsidiaries, gains/losses on disposal of property, other
impairment charges, goodwill impairment, impairment of investments
in associates, amortisation and impairment of acquired intangible
assets, restructuring and transformation costs, property-related
restructuring costs, other transaction costs and legal provision
charges/gains.
Headline operating profit margin
Headline operating profit margin is calculated as headline
operating profit (defined above) as a percentage of revenue less
pass-through costs.
Headline PBIT
Profit before net finance costs, taxation, gains/losses on disposal
of investments and subsidiaries, gains/losses on disposal of
property, goodwill impairment, impairment of investments in
associates, amortisation and impairment of acquired intangible
assets, other impairment charges, restructuring and transformation
costs, property-related restructuring costs, other transaction
costs, legal provision charges/gains and share of adjusting and
other items for associates.
Headline PBT
Profit before taxation, gains/losses on disposal of investments and
subsidiaries, gains/losses on disposal of property, goodwill
impairment, impairment of investments in associates, amortisation
and impairment of acquired intangible assets, other impairment
charges, restructuring and transformation costs, property-related
restructuring costs, other transaction costs, legal provision
charges/gains, share of adjusting and other items for associates,
and revaluation and retranslation of financial
instruments.
Headline tax charge
Taxation excluding tax/deferred tax relating to gains/losses on
disposal of investments and subsidiaries, gains/losses on disposal
of property, acquisition related intangible assets and liabilities,
restructuring and transformation costs, property-related
restructuring costs, investments in associates, other transaction
costs and legal provision charges/gains.
Like-for-like
Like-for-like comparisons are calculated as follows: current year,
constant currency actual results (which include acquisitions from
the relevant date of completion) are compared with prior year,
constant currency actual results, adjusted to include the results
of acquisitions and disposals.
Net finance costs
All costs related to interest expense on bank overdrafts, bonds,
bank loans, lease liabilities, swaps and revaluation and
retranslation of financial instruments less any interest income on
cash surplus and investments.
Net working capital
The movement in net working capital consists of movements in trade
receivables and accrued income, trade payables and deferred income,
other receivables, other payables and provisions per the analysis
of cash flows in note 6.
Pass-through costs
Pass-through costs comprise fees paid to external suppliers when
they are engaged to perform part or all of a specific project and
are charged directly to clients. This includes the cost of media
where the Group is buying digital media for its own account on a
transparent opt-in basis and, as a result, the subsequent media
pass-through costs have to be accounted for as revenue, as well as
billings.
Revenue less pass-through costs
Revenue less pass-through costs is revenue less media and other
pass-through costs.
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
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WPP PLC
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(Registrant)
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Date:
07 August 2025.
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By:
______________________
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Balbir
Kelly-Bisla
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Company
Secretary
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