WPP plc(WPP)2025-03-28 15:31Financial Performance - For the year ended December 31, 2024, WPP plc reported revenue of £14,741 million and operating profit of £1,325 million[22]. - Total revenue for 2024 was £14,741 million, a slight decrease of 0.7% from £14,845 million in 2023[51]. - Revenue less pass-through costs for 2024 was £11,934 million, down from £12,034 million in 2023, representing a decrease of 0.8%[51]. - Operating profit increased by 149.5% to £1,325 million in 2024, compared to £531 million in 2023, while headline operating profit decreased by 2.5% to £1,707 million[104]. - Profit before tax rose by 198.0% to £1,031 million in 2024, compared to £346 million in 2023, with headline profit before tax down 3.8% to £1,467 million[107]. - Headline operating profit for the Total Group was £1,707 million in 2024, down from £1,750 million in 2023[115]. - The company reported a loss for the year of £706 million, with finance costs to non-guarantors amounting to £779 million[149]. - Adjusted free cash flow for 2024 is £738 million, up from £637 million in 2023[180]. - Net cash inflow from operating activities rose to £1,408 million in 2024, compared to £1,238 million in 2023[180]. Client and Revenue Composition - The ten largest clients accounted for 19.7% of revenue less pass-through costs in the year ended December 31, 2024[28]. - The top 25 clients of the company saw a growth of 2.0% in 2024, indicating a strong demand for integrated marketing solutions[64]. - WPP's revenue from Global Integrated Agencies increased from £12,133 million in 2022 to £12,562 million in 2024, reflecting a consistent contribution to total revenue[49]. - North America accounted for 38% of total revenue in 2024, with revenue of £5,567 million, a slight increase from £5,528 million in 2023[51]. Employee and Operational Metrics - The Group had 108,044 employees as of December 31, 2024[22]. - The total number of employees decreased to 108,044 at the end of 2024 from 114,173 at the end of 2023[103]. - The company employs approximately 108,044 people across more than 100 countries[31]. - The company's six agency networks account for approximately 92% of revenue less pass-through costs, enhancing operational efficiency[67]. Strategic Initiatives and Risks - WPP Open, the AI-driven operating system, is crucial for maintaining competitiveness and operational efficiency[28]. - Economic risks, including inflation and currency volatility, could lead clients to reduce marketing budgets, impacting WPP's revenues[27]. - The failure to successfully implement the strategic plan updated in January 2024 may adversely affect market share and financial condition[27]. - Cybersecurity threats are increasing, with potential impacts on operations and client trust if data protection measures fail[29]. - Changes in local or international tax rules could significantly impact WPP's tax liabilities and liquidity position[29]. - The Group's operations are susceptible to increased costs due to potential future changes in ESG laws and regulations, including the EU Corporate Sustainability Reporting Directive[30]. Financial Position and Cash Flow - Cash and cash equivalents at 31 December 2024 were £2,467 million, an increase from £1,860 million in 2023[138]. - Adjusted net cash inflow improved to £745 million in 2024, compared to £2 million in 2023, driven by higher disposal proceeds and lower net acquisition payments[129]. - Total liquidity, including undrawn credit facilities, reached £4,464 million at 31 December 2024, up from £3,824 million in 2023[138]. - The adjusted net debt of the group at 31 December 2024 was £1,690 million[140]. Governance and Compensation - For the fiscal year ended December 31, 2024, WPP paid a total compensation of £47 million to key management personnel, which includes salaries, performance-related bonuses, and other benefits[211]. - Mark Read received a total annual compensation of £3.801 million, including a base salary of £1.14 million and performance-related incentives[212]. - Joanne Wilson, who joined on April 19, 2023, received a total annual compensation of £1.850 million, with a base salary of £750,000[212]. - The independence of all Non-Executive Directors was confirmed by the Board, in compliance with the UK Corporate Governance Code[210].