WPP Sees Improvement; Backs Mandelson Venture

WPP has raised its 2011 growth forecast, with Martin Sorrell suggesting the group will also be able to raise its dividend. Separately, the group has reportedly invested in a new consultancy venture launched by former Business Secretary Lord Mandelson.

Speaking to the Reuters Global Media Summit, the CEO said the group had not yet seen any impact from the euro zone debt crisis. It was 'too early to predict' what impact it might eventually have, said Sorrell, although the crisis had created 'massive uncertainty'.

Asked if reports that some group companies were still expecting to grow at between 3 and 4 percent next year as they had earlier stated, Sorrell said results might actually be 'stronger than that'. After a tough 2009, the company had grown by 4.5% in the year so far to the end of October and might stay around that mark for the full year.

Sorrell said the improvement in trading and the fact the group had improved its debt to earnings ratio meant it could now also start thinking about increasing the dividend for 2011.


Mandelson's new venture, with the name of Global Counsel LLP, was incorporated last week and is registered to the same Mayfair address as WPP's head office. To be run by Mandelson's long-term advisor Ben Wegg-Prosser, the new company has secured a 'significant' but minority investment from WPP according to Sky News.

The news follows six months of speculation about Mandelson's post-ministerial career. Global Counsel will advise multinational companies on topics expected to include growing their business in fast-developing markets like Africa, Latin America, eastern Europe and Asia - in particular China where Mandelson is said to have strong contacts.

The new firm's launch and activities are subject to approval by the Cabinet Office's Advisory Committee on Business Appointments, which is intended as a guard against ex-ministers 'cashing in' on their experience and contacts from government; and the company would presumably be banned at first from working with UK-based companies.

The launch will presumably come as a surprise to Labour leader Ed Miliband, who earlier this month suggested Lord Mandelson should have some 'dignity in retirement'.

Web site: www.wpp.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.