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Highlights:
- WPP secured new businesses worth USD 1.40 billion in Q3 FY23.
- It registered an adjusted net debt of £3.5 billion as of 30 June 2023, marking a fall of £0.4 billion from Q1 FY23.
- In H1 FY23, WPP saw a 6.9% YoY growth in its top-line business.
FTSE 100 index-listed WPP PLC (LSE:WPP) is a creative transformation entity involved in a suite of services, including investment management, advertising, media, public relations, and public affairs. The firm runs its operations in over 112 countries across the globe.
In the third quarter of the fiscal year 2023, the firm secured new businesses worth USD 1.40 billion from companies such as Lenovo, Nestlé, Estée Lauder, Hyatt, Unilever and Verizon. Also, WPP has acquired USD 3.40 billion of new business on a year-to-date (YTD) basis. It registered an adjusted net debt of £3.5 billion as of 30 June 2023, marking a fall of £0.4 billion from Q1 FY23.
In the first half of FY23, WPP saw a 6.9% year-on-year (YoY) growth in its top-line business. Notably, the revenue less pass-through costs increased by 5.5% YoY in H1 FY23. This was primarily because of substantial growth across all signifiacnt WPP agencies. However, its operating profit declined by 26.5% annually to GBP 396bn in H1FY23.
The company paid an interim dividend of 15.00 pence per share in November 2023, with an ex-dividend date of 12 October 2023
WPP is targeting a net annualised cost savings of minimum £100 million in fiscal year 2025 with a part-year benefit in FY24 with the launch of VML and integration of GroupM with common products and single technology platform.
In FY23, the company believes that its transformation programme remained on track to deliver minimum £450 million of annual savings over a FY19 base. WPP is anticipating like-for-like revenue less pass-through costs to increase by 0.5-1.0% with additional improvement in margin.
Top 10 Shareholders:
Approximately 35.93% of the total shareholdings is held by its top ten shareholders. While BlackRock Institutional Trust Company, N.A owns the maximum number of shares of around 7.57%, Silchester International Investors, L.L.P. holds over 5% shareholding in the firm.
Stock Price Performance and Technical Summary:
WPP’s stock price has increased by approximately 6.80% in the last one month. It has declined by 10.91% over the last six months. The stock’s 52-week low and high price stand at GBX 656.00 and GBX 1,082.00, respectively.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 21 December 2023. The reference data in this report has been partly sourced from EODHD/Others.
