WPP Sets Out Plans for Future Business Growth

Marcoms giant WPP has set out a plan to return to sustainable growth by 2022. This includes initiatives to make £600m in savings by 2025, with around £400m of those savings reinvested in technology to drive future growth.

Growth plans will be supported by between £200m and £400m spent annually on acquisitions, to help expand the group's eCommerce and marketing technology from 25% to 40% of revenues by 2025. In addition, capital expenditure of up to £500m will be invested in the years 2021 and 2022, and between £300m and £350m thereafter. These amounts will be spent on the group's campus programme, enterprise resource planning systems, and shared services, in order to deliver cost savings, improved business insight, and talent management.

A new dividend policy has also been announced, with WPP expecting to pay-out 40% of reported earnings per share. In addition, the Kantar share buyback scheme will resume in 2021.

CEO Mark Read (pictured) comments: 'It has been two years since we set out our strategy to return WPP to growth. Since then, we have made significant progress, with stronger agency brands, new leadership, a simpler structure, and a strong balance sheet. We can see the results in our new business performance, with $5.6 billion won in the first nine months. In partnership with our agency brands, we are deepening and accelerating the change already happening within WPP. We are converting our size into scale, making us more effective and efficient as we share expertise across a simpler company of stronger agency brands.'

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.