WPP lifts its full year sales outlook
Just a day after confirming Mr Read as new chief executive to succeed Sir Martin Sorrell, WPP said like-for-like sales grew by 2.4% in the three months to June 30 - its first quarterly growth since the start of 2017.
WPP now expects growth in full-year net sales to come in at a similar level to the first half, compared with its previous prediction of no growth.
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Hide AdMr Read said he will update on his new plans for the group by the end of the year, with a strategy review under way to combat under-performing areas of the business.
Mr Read said: “The second quarter of 2018 was WPP’s first quarter of like-for-like growth since first quarter of 2017, and the company has performed strongly in terms of winning and retaining business over the period.”
He added: “As chief executive, my focus will be on invigorating our company and returning the business to stronger, sustainable growth.
“Our review of strategy is under way, addressing our structure, our under-performing operations, particularly in the United States, and how we position the company for the future.
“We will provide an update by the year-end.”
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Hide AdDespite the more cheery sales news, WPP reported a 7.4% fall in underlying pre-tax profits to £735 million for the first half of the year, down 2.5% with currency effects stripped out.
On a statutory basis, pre-tax profits lifted 8.6% to £846 million, but this was thanks to one-off gains largely from the sale of its investment in Buenos Aires-based software business Globant.
Like-for-like revenues overall in the first half lifted 1.6% and the group said trading in July saw comparable sales rise 2.1%.