Strong Prelimss for WPP

WPP, parent of MR agencies including Millward Brown and Research International, has announced preliminary results for 2006. Reported revenue is up almost 10% to £5.9bn and like-for-like revenue up 5.4%, while profit before tax is up more than 15% to £682m.

Like-for-like revenue growth accelerated to 5.7% in the second half and 7.2% in the fourth quarter, which was the company's first $3 billion revenue quarter.

WPP said the results, in its twenty-first year, reflect 'the continued steady strength of the world economy positively impacting almost all disciplines and geographies and the strength of the Group's operating brands and franchise.'

Headcount grew almost 10% during the year, from an average of 70,936 in 2005 to an average of 77,686 in 2006.

Billings were up 13.0% at £30.1bn, around $55bn. Headline operating margin was up 0.5 margin points to 14.5% and the final dividend up 20% to 7.61p per share. Net income rose to 435.8m pounds ($852.6 million), or 35.2 pence a share, from 363.9m pounds, or 29.7 pence.

Detailed results will show the relative performance of the divisions, including the Insight division which grew just behind the group average in Q3. Chief Exec Martin Sorrell said last autumn that he wants two-thirds of the company's sales to come from non-ad businesses such as market research, and a third of its business to be in faster-growing [geographical] markets, in the next five to 10 years.

The group's home page is at www.wpp.com .

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