WPP plc 6-K, filed Feb 26, 2026
WPP plc (WPP)
6-K
2026-02-26
For: 2026-02-26
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Added on
July 04, 2026
About this 6-K
WPP plc filed this 6-K on February 26, 2026.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 6-K
____________________
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the Month of February 2026
Commission File Number: 001-38303
______________________
WPP plc
(Translation of registrant's name into English)
________________________
Sea Containers, 18 Upper Ground
London, United Kingdom SE1 9GL
(Address of principal executive offices)
_________________________
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
Form
20-F X
Form 40-F ___
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1): ___
Note: Regulation S-T Rule 101(b)(1) only permits the
submission in paper of a Form 6-K if submitted solely to provide an
attached annual report to security holders.
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(7): ___
Note: Regulation S-T Rule 101(b)(7) only permits the
submission in paper of a Form 6-K if submitted to furnish a report
or other document that the registrant foreign private issuer must
furnish and make public under the laws of the jurisdiction in which
the registrant is incorporated, domiciled or legally organized (the
registrant’s “home country”), or under the rules
of the home country exchange on which the registrant’s
securities are traded, as long as the report or other document is
not a press release, is not required to be and has not been
distributed to the registrant’s security holders, and, if
discussing a material event, has already been the subject of a Form
6-K submission or other Commission filing on EDGAR.
Forward-Looking Statements
The
Company may include forward-looking statements (including as
defined in the U.S. Private Securities Litigation Reform Act of
1995) in oral or written public statements issued by or on behalf
of the Company. These forward-looking statements may include, among
other things, plans, objectives, beliefs, intentions, strategies,
projections and anticipated future economic performance based on
assumptions and the like that are subject to risks and
uncertainties. These statements can be identified by the fact that
they do not relate strictly to historical or current facts. They
use words such as ‘aim’, ‘anticipate’,
‘believe’, ‘estimate’,
‘expect’, ‘forecast’,
‘guidance’, ‘intend’, ‘may’,
‘will’, ‘should’, ‘potential’,
‘possible’, ‘predict’,
‘project’, ‘plan’, ‘target’,
and other words and similar references to future periods but are
not the exclusive means of identifying such statements. As such,
all forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances that are beyond the
control of the Company. Actual results or outcomes may differ
materially from those discussed or implied in the forward-looking
statements. Therefore, you should not rely on such forward-looking
statements, which speak only as of the date they are made, as a
prediction of actual results or otherwise. Important factors which
may cause actual results to differ include but are not limited to:
the unanticipated loss of a material client or key personnel;
delays, suspensions or reductions in client advertising budgets;
shifts in industry rates of compensation; regulatory compliance
costs or litigation; changes in competitive factors in the
industries in which we operate and demand for our products and
services; changes in client advertising, marketing and corporate
communications requirements; our inability to realise the future
anticipated benefits of acquisitions; failure to realise our
assumptions regarding goodwill and indefinite lived intangible
assets; natural disasters or acts of terrorism; the Company’s
ability to attract new clients; the economic and geopolitical
impact of the conflicts in Ukraine and the Middle East; the risk of
global economic downturn; slower growth, increasing interest rates
and high and sustained inflation; tariffs and other trade barriers;
supply chain issues affecting the distribution of our
clients’ products; technological changes and risks to the
security of IT and operational infrastructure, systems, data and
information resulting from increased threat of cyber and other
attacks; effectively managing the risks, challenges and
efficiencies presented by using Artificial Intelligence (AI) and
Generative AI technologies and partnerships in our business; risks
related to our environmental, social and governance goals and
initiatives, including impacts from regulators and other
stakeholders, and the impact of factors outside of our control on
such goals and initiatives; the Company’s exposure to changes
in the values of other major currencies (because a substantial
portion of its revenues are derived and costs incurred outside of
the UK); and the overall level of economic activity in the
Company’s major markets (which varies depending on, among
other things, regional, national and international political and
economic conditions and government regulations in the world’s
advertising markets). In addition, you should consider the risks
described in Item 3D, captioned “Risk Factors” in the
Company’s most recent Annual Report on Form 20-F, which could
also cause actual results to differ from forward-looking
information. In light of these and other uncertainties, the
forward-looking statements included in this document should not be
regarded as a representation by the Company that the
Company’s plans and objectives will be achieved. Neither the
Company, nor any of its directors, officers or employees, provides
any representation, assurance or guarantee that the occurrence of
any events anticipated, expressed or implied in any forward-looking
statements will actually occur. Other than in accordance with its
legal or regulatory obligations (including under the Market Abuse
Regulation, the UK Listing Rules and the Disclosure and
Transparency Rules of the Financial Conduct Authority), the Company
undertakes no obligation to update or revise any such
forward-looking statements, whether as a result of new information,
future events or otherwise.
EXHIBIT INDEX
|
Exhibit No.
|
Description
|
|
1
|
Strategy Update and 2025 Preliminary Results dated 26 February
2026, prepared by WPP plc.
|
 |
26 February 2026
|
Strategy Update and 2025 Preliminary Results
|
WPP announces multi-year strategic plan to simplify and integrate
client proposition, restore growth and drive long-term value for
clients, talent and shareholders
|
“My first six months as CEO have only reinforced my
conviction that WPP is an extraordinary company. As our clients
navigate uncertainty, AI disruption and macro-volatility, we're
looking ahead with a clear and focused mission: to be the trusted
growth partner for the world's leading brands in the era of
AI.
“Today we are unveiling a bold plan for a simpler, more
integrated WPP. Our intention is to stabilise the business, return
to organic growth, create capacity to invest in the future and
deliver attractive returns for our shareholders. WPP will become a
single company, streamlined into four operating units across four
regions, all unified by our pioneering agentic
marketing platform, WPP Open.
“Our recent underperformance has been driven by excessive
organisational complexity, a lack of an integrated operating model
and inconsistent strategic execution. While disappointing, I see
huge potential as these issues are all within our power to fix and
we’re already making great progress.
“We have everything we need to succeed: exceptional talent,
world-class capabilities, trusted data and technology solutions and
groundbreaking partnerships, as well as the scale and reach to
service the most complex multi-national, multi-brand clients in the
world. The momentum we are seeing from the decisive action
we’ve already taken gives me the
confidence that we’re on the right path to creating a WPP
that is fit for the future and built to win.”
Cindy Rose OBE, Chief Executive Officer of WPP
WPP today announces ‘Elevate28’, a multi-year strategic
plan to simplify and integrate our client proposition, restore
growth and drive long-term value for clients, talent and
shareholders. Transitioning from a holding company structure to a
single company, WPP will simplify its business to deliver fully
integrated, AI-enabled solutions through four core operating units:
WPP Media, WPP Creative, WPP Production and WPP Enterprise
Solutions across four regions, North America, Latin America, EMEA
and APAC.
Central to this strategy is a new mission: to be the trusted growth
partner for the world’s leading brands, helping them navigate
change, capture opportunity and deliver growth, while transforming
their business in a dynamic, complex environment. The plan focuses
on stabilising the business in 2026, building momentum in 2027, and
delivering accelerated, high-quality growth from 2028, supported by
£500m of gross annualised cost savings and portfolio
rationalisation to unlock value.
Meeting to cover the Strategy Update and 2025 Results at 9.30am
GMT/4.30am EST:
●
In-person meeting:
Please contact WPP Investor Relations
at irteam@wpp.com
for more details and to
register
●
Webcast: Live webcast will be available here
ELEVATE28: OUR STRATEGY TO STABILISE WPP SHORT-TERM, BUILD A NEW
PLATFORM FOR GROWTH AND ACCELERATE FUTURE PERFORMANCE
●
Deliver superior growth for clients
●
Lead
with Media at the heart of an integrated proposition
●
Establish
next-generation Creative and Production capabilities
●
Elevate
Enterprise Solutions to partner with clients on AI
transformation
●
Become a simpler, integrated company
●
Simplify
the operating model
●
Strengthen
execution and transform our go-to-market
●
Drive
a high-performance culture and attract and retain the world’s
best talent
●
Unlock the advantage of WPP Open
●
Connect
capabilities through WPP Open
●
Differentiate
with trusted data solutions through Open Intelligence
●
Expand
strategic technology and data partnerships
●
Create firm financial foundations for the future
●
Unlock
£500m of annual cost savings, enabling a reallocation of
investment
●
Focus
the portfolio to reduce leverage and create further capacity to
invest in growth
●
Disciplined
capital allocation with a focus on maintaining an investment-grade
balance sheet while delivering attractive returns for
shareholders
OUTLOOK & PHASES OF DELIVERY
The plan is designed to deliver sustained growth through three
distinct phases:
●
Phase 1 – Stabilise
(2026): The
immediate priority is to stabilise net new business performance. We
will execute cost savings initiatives and rationalise the
portfolio.
●
Phase 2 – Build
(2027): Our
transformed go-to-market strategy supported by a more effective
operating model will be embedded and will help deliver a fully
integrated offer spanning media, creative, production and
enterprise solutions. We are targeting a return to organic growth
during the course of 2027.
●
Phase 3 – Accelerate
(2028 and beyond): We aim
to be a simpler, lower-cost, AI-enabled business, recognised by
clients as a trusted growth partner, showing accelerated growth,
improved margin and strong cash conversion.
To achieve this transformation and deliver £500m of gross
savings by 2028, we anticipate total cash costs of approximately
£400m phased over two years. We will reinvest a significant
portion of savings into high-growth areas. See below for more
details.
|
For further information:
|
||||
|
Investors and analysts
|
|
|
Media
|
|
|
Thomas Singlehurst, CFA
|
+44 7876 431922
|
|
Niken Wresniwiro, WPP
|
+44 20 7282 4600
|
|
Anthony Hamilton
|
+44 7464 532903
|
|
|
|
|
Melissa Fung
|
+44 7353 107064
|
|
|
|
|
irteam@wpp.com
|
wpp.com/investors
|
|
press@wpp.com
|
|
2025 Preliminary Results
|
Key figures (£ million)
|
2025
|
+/(-) %
reported1
|
+/(-) % LFL2
|
2024
|
|
Revenue
|
13,550
|
(8.1)
|
(3.6)
|
14,741
|
|
Revenue less pass-through costs
|
10,176
|
(10.4)
|
(5.4)
|
11,359
|
|
Reported:
|
|
|
|
|
|
Operating profit
|
382
|
(71.2)
|
|
1,325
|
|
Operating profit margin (%)3
|
2.8
|
(6.2)pt
|
|
9.0
|
|
Diluted EPS (p)
|
(20.0)
|
(140.5)
|
|
49.4
|
|
Dividends per share (p)
|
15.0*
|
(61.9)
|
|
39.4
|
|
Headline4:
|
|
|
|
|
|
Operating profit
|
1,321
|
(22.6)
|
(17.1)
|
1,707
|
|
Operating profit margin (%)
|
13.0
|
(2.0)pt
|
(1.8)pt
|
15.0
|
|
Diluted EPS (p)
|
63.2
|
(28.4)
|
|
88.3
|
|
Cashflow and balance sheet:
|
|
|
|
|
|
Adjusted operating cash flow pre WC5
|
1,189
|
(11.5)
|
|
1,343
|
|
Net cash inflow from operating activities
|
724
|
(48.6)
|
|
1,408
|
|
Adjusted net debt
|
2,167
|
24.4
|
|
1,742
|
|
Average adjusted net debt
|
3,404
|
(2.9)
|
|
3,506
|
*including proposed final dividend.
WPP reports 2025 revenue of £13,550m, down 8.1% on a reported
basis and down 3.6% like-for-like (LFL), with revenue less
pass-through costs of £10,176m down 5.4% LFL, ahead of latest
guidance. Q4 LFL revenue less pass-through costs of £2,691m
was down 10.1% reported and 6.9% LFL. 2025 reported operating
profit margin was 2.8% and headline operating profit margin was
13.0%, representing a LFL decrease of 1.8pt. Adjusted operating
cash flow before working capital was £1,189m, in line with
latest guidance and year-end average adjusted net debt was
£3.4bn, with an average net debt to EBITDA ratio of
2.2x.
FY and Q4 2025
performance
●
Revenue –
2025 reported revenue of £13,550m
was down 8.1%, with a LFL decline of 3.6%. 2025 revenue less
pass-through costs of £10,176m was down 10.4% reported and
down 5.4% LFL. Q4 revenue of £3,628m was down 8.3%, a LFL
decline of 5.5%. Q4 revenue less pass-through costs of £2,691m
was down 10.1% reported and 6.9% LFL.
●
Business segment and regions
– Global Integrated
Agencies 2025 LFL revenue less pass-through costs fell 5.7% (Q4:
-7.6%) with WPP Media declining 5.9% (Q4: -10.8%) and other
integrated creative agencies declining 5.6% (Q4: -4.3%). By
geography, North America declined 4.6% (Q4: -7.3%), UK -7.6% (Q4:
-9.2%), Western Continental Europe -4.7% (Q4: -3.5%) and Rest of
World -5.9% (Q4: -7.5%), with India increasing 3.8% (Q4: +8.6%)
offset by a decline in China of -14.3% (Q4:
-13.6%).
●
Clients –
WPP’s top 25 clients declined
4.1% LFL in 2025, including client assignment losses from the first
half of the year. While the Healthcare and Pharma client sector
improved in 2025, all other client sectors saw reduced spend
year-on-year.
●
Operating profit –
2025 headline operating profit was
£1,321m, a margin of 13.0% (2024: 15.0%), down 1.8pt LFL. The
lower margin reflects the decline in revenue less pass-through
costs with higher severance costs contributing to a drag of 0.9pt
YoY (in particular at WPP Media), and continued investment in tech
and data, partially offset by lower staff incentives which
contributed a 1.4pt benefit YoY (1.2pt LFL, which excludes FGS).
Reported operating profit was £382m, down 71.2%, including
goodwill impairment of £641m and property impairments of
£114m.
●
Cashflow and average adjusted
net debt – 2025 adjusted operating cash flow excluding
working capital was £1,189m (2024: £1,343m) in line with
guidance. 2025 reported net cash inflow from operating activities
was £724m (2024: £1,408m). Average adjusted net debt at
31 December 2025 of £3.4bn was down £0.1bn compared to 31
December 2024.
●
Dividend – The Board has proposed a final dividend of 7.5p
(2024: 24.4p) giving a full year dividend of 15.0p (2024:
39.4p).
Financial outlook for 2026
●
LFL revenue less pass-through
costs – We are encouraged
by the improvement in new business in the fourth quarter and early
2026. Organic growth, however, is a lagging metric and as such we
anticipate LFL revenue less pass-through costs to decline in the
mid to high-single digits in the first half of 2026 with an
improving trajectory in the second half.
●
Headline operating profit
margin – While we will
benefit from the full year impact of cost saving actions taken last
year and a part year impact from Elevate28 cost actions, we will
invest to support a return to growth and rebuild incentives.
Accordingly, for the full year we anticipate headline operating
profit margin in the range of 12% to 13%.
●
Adjusted operating cash flow
before working capital – Including both the anticipated costs associated
with historical plans as well as the restructuring costs linked to
the Elevate28 strategy update, we anticipate adjusted operating
cashflow before working capital of £800m to £900m.
Excluding these charges, we would anticipate adjusted operating
cashflow before working capital of £1.0bn to
£1.1bn.
●
Financial leverage
– With the
implementation of the new strategy, our focus over the next 12
months will be to stabilise the business while freeing up capital
to provide further financial flexibility. We are committed to
maintaining an investment grade balance sheet, a position supported
by Fitch Ratings today assigning WPP a Long-Term Issuer Default
Rating of 'BBB' with a Stable Outlook.
1. Percentage change in
reported sterling.
2. Like-for-like. LFL
comparisons are calculated as follows: current year, constant
currency actual results (which include acquisitions from the
relevant date of completion) are compared with prior year, constant
currency actual results, adjusted to include the results of
acquisitions and disposals for the commensurate period in the prior
year.
3. Reported operating profit
divided by revenue less pass-through costs.
4. In this press release not
all of the figures and ratios used are readily available from the
unaudited results included in Appendix 1. Management believes these
non-GAAP measures, including constant currency and like-for-like,
revenue less pass-through costs and headline profit measures, are
both useful and necessary to better understand the Group’s
results. Details of how these have been arrived at are shown in
Appendix 4.
5. Adjusted operating cash flow
before working capital as reconciled in Appendix
4.
Elevate28 – Detailed plan
Market context and strategic rationale
The global total addressable market (TAM) for agency marketing,
creative, digital and transformation services is growing at c.5%
and expected to exceed $500bn by 20281.
However, the commercial ecosystem is seeing fundamental change,
driven by the rapid diffusion of AI, changing consumer behaviour,
competitive disruption and macro-volatility. Clients need a trusted
growth partner capable of orchestrating media, creativity,
production and technology to navigate this
complexity.
While WPP possesses industry-leading capabilities, recent
performance has been impacted by excessive organisational
complexity, lack of an integrated operating model and inconsistent
strategic execution. Elevate28 addresses these challenges by
reorienting the company around the evolving needs of clients,
leveraging WPP’s scale and WPP Open, our pioneering agentic
marketing platform, to deliver transformation and growth for our
clients.
WPP’s competitive advantage
WPP is well positioned to capitalise on this market evolution. Our
confidence is grounded in three structural advantages that create a
strong competitive edge for WPP:
●
Trusted data and
intelligence: Open
Intelligence is our foundational intelligence layer, securely
connecting live data from clients, partners and WPP in a
privacy-first way. Built on InfoSum's data collaboration
technology, it unlocks unique insights without data ever being
shared – turning real-world behaviour into predictive
intelligence while preserving privacy, control and trust. Clients
see exactly where, how and why their marketing investment is
working.
●
Integration of media, data,
creative and technology: In an
AI-driven world, the discipline of brand building is being
permanently rewired. In this landscape, human creativity and craft,
judgment, taste and empathy are what earn attention, build trust
and differentiate brands. We combine cutting-edge media
intelligence, world-class creativity, industry leading production
and transformative enterprise solutions – all powered by
exceptional talent and WPP Open.
●
Global scale and deep client
relationships: As an
established partner to a large number of the world’s leading
advertisers, we possess a massive installed base of opportunity. By
simplifying our operating model, we unlock the ability to
cross-sell high-growth capabilities – such as Enterprise
Solutions – directly into our existing client
relationships.
Elevate28: A unified growth strategy
The Elevate28 strategic plan is anchored in four objectives:
delivering superior growth for clients, becoming a simpler,
integrated company, unlocking the advantage of WPP Open and
creating firm financial foundations for the future.
1. Source: IDC; Madison and
Wall; Gartner; Provoke; Citi; PQ Media;
Emarketer
Deliver superior growth for clients
●
Leading with Media at the heart
of an integrated proposition: Re-orient our go-to-market around a more
integrated client proposition with media and data at the core to
accelerate client growth.
●
Establish next-generation
Creative and Production capabilities: Build
unified, next-generation creative and production capabilities each
powered by a single operating model to drive insight-led content
delivery and operational efficiency.
●
Elevate Enterprise Solutions to
partner with clients on AI transformation: Establish a standalone operating unit bringing
together WPP’s customer experience, commerce, CRM, content
transformation and technology & data platform capabilities to
capture high-growth demand for enterprise AI transformation
services.
Become a simpler, integrated company
●
Simplify the operating
model: Move to a simplified
structure comprising four operating units (Media, Creative,
Production, Enterprise Solutions) across four regions (North
America, Latin America, EMEA, APAC).
●
Strengthen execution and
transform our go-to-market: Transform how we engage with clients, empowering
Global Client Leaders and leveraging our new team of ‘Client
Solution Architects’ to orchestrate integrated, outcome-based
growth strategies.
●
Drive a high-performance
culture, attract and retain the world’s best talent:
Overhaul the performance framework to
align objectives and incentives globally to client outcomes and
overall WPP success.
Unlock the advantage of WPP Open
●
Connect capabilities through
WPP Open: Connect all four
operating units through WPP Open, our pioneering agentic marketing
platform. Powered by Open Intelligence, our foundational
intelligence layer, enabling privacy-first data collaboration and
agentic workflows.
●
Differentiate with trusted data
solutions through Open Intelligence: Leverage InfoSum’s data collaboration
technology to connect live data from clients, partners and WPP,
unlocking unique, predictive insights and optimising marketing
investment in real time while preserving privacy, control and
trust.
●
Expand strategic
partnerships: Deepen
integration with strategic partners to co-innovate AI, data and
technology solutions that support client
growth.
Create firm financial foundations for the future
●
Structural
simplification: Unlock
£500m in annualised gross savings by 2028 from operating model
changes, deduplication of support functions and
real-estate/long-tail efficiencies.
●
Focus the portfolio:
Rationalise portfolio, reduce leverage
and create capacity to invest in growth.
●
Disciplined capital
allocation: Maintain an
investment-grade balance sheet while prioritising organic
investment in high-growth areas and delivering attractive returns
for shareholders.
Our execution plan
We are moving with urgency to implement this framework. Actions
taken to date include:
●
Go-to-market: Created
central ‘Client Solution Architects’ and Growth teams
to cross-sell services more effectively and integrate new business
capabilities.
●
Technology: Full
integration and deployment of Open Intelligence into WPP Open
driving an improvement in net new media business. Expansion of our
Google partnership for AI and cloud technology and Adobe partnership for integrated solutions for
global brands; launch of WPP Open Pro (self-service) and Agent Hub
(internal app store for AI agents).
●
Organisational
structure: Launch
of WPP Production, bringing together WPP’s extensive
production capabilities into one unified organisation to centralise
expertise and enable a more integrated offering for
clients.
Actions announced today:
●
WPP
Creative: Formation
of a unified operating model for our iconic agency brands across
Creative, PR and Design. This preserves distinct agency cultures
while implementing a shared operating system to facilitate
frictionless collaboration and resource sharing and allowing
clients to benefit from access to the full breadth of WPP's
capabilities and exceptional creative talent.
●
WPP Enterprise
Solutions: Establishment of a new operating unit
consolidating WPP’s customer experience, commerce, CRM,
content transformation and technology & data capabilities to
capture high-growth demand for enterprise AI transformation.
Clients will benefit from access to AI transformation and marketing
modernisation services.
●
Cost
efficiency: Initiation of a new £500m savings plan to
fund investment in growth drivers and rebuild
margins.
●
Talent framework:
Implement new framework to embed a
high-performance culture and align objectives and incentives
globally to client outcomes and overall WPP
success.
●
Focus the
portfolio: Action
decisions from our portfolio review to unlock capital which will be
used to reduce leverage and further build greater financial
flexibility. Processes are underway and we will update in due
course.
Three phases of delivery
The plan is designed to deliver sustained value through three
distinct phases:
Phase 1: Stabilise (2026) The
immediate priority is to stabilise net new business performance. We
are encouraged by an improved new business performance in Q4 2025
(see Q4 2025 highlights below for detail) and will build on actions
at WPP Media to improve competitiveness (specifically in the US and
UK). We will also execute cost saving initiatives, and take
portfolio actions to improve balance sheet
flexibility.
●
Financial goal:
Deliver positive net new business,
achieve gross run-rate savings of £250m by year-end
(equivalent to around £100m in-year gross savings) and
progress portfolio actions.
Phase 2: Build (2027) We will
fully implement and start to benefit from our revised go-to-market
strategy and continue to deliver benefits of the new operating
model via improved execution and further reductions in
costs.
●
Financial goal:
Return to organic growth during 2027,
rebuild margins and reduce leverage.
Phase 3: Accelerate (2028 and beyond) WPP will emerge as a simpler, lower-cost,
AI-enabled business. Revenue growth will be driven by the full
integration of media, creative, production and enterprise
solutions, as well as the global scaling of agentic
workflows.
●
Financial goal:
Accelerate organic growth, expand
margins, deliver strong cash conversion.
Across all three phases a priority will be to maintain an
investment-grade balance sheet.
Financial framework
To achieve this transformation and support the delivery of
£500m of gross cost savings, we anticipate total cash costs
associated with the Elevate28 programme to be approximately
£400m, phased over two years.
We anticipate separating out restructuring spend from our headline
P&L earnings metrics, however all cash restructuring spend will
be included in our adjusted operating cash flow pre working
capital.
WPP will reinvest a significant portion of these savings into
high-growth areas including media, commerce, high velocity
production and enterprise solutions, as well as strengthening our
go-to-market capabilities, rebuilding incentives and sustaining
investment in WPP Open. The balance will support a rebuild of our
margins, alongside improved operating leverage as we return to
growth.
Balance sheet and capital allocation
Reflecting this investment trajectory, we anticipate financial
leverage (average net debt to Headline EBITDA) to rise in 2026
before reducing from 2027 onwards as the company benefits from
improved operating performance, alongside actions already in
progress to realise value from our portfolio.
In light of the transformation programme, we have reassessed our
approach to capital allocation and cash returns. Our priorities, in
order, are as follows:
●
Maintain an investment grade
balance sheet: our
primary focus is to retain strong liquidity, reduce gross debt
where possible and improve leverage ratios over
time.
●
Fund organic growth:
we will ruthlessly prioritise
investment in the fastest growing areas of our business funded with
our cost initiatives, enabling a reallocation of investment to
those capabilities that support group-wide growth
prospects.
●
Share the proceeds of
growth: we will balance
sustainable returns to our shareholders with inorganic investment
but will have a laser focus on only deploying capital when
acquisition is more efficient than building internal capabilities.
Excess capital will be returned to
shareholders.
Reflecting confidence in the plan, having declared a 7.5p final
dividend for 2025, the Board intends to maintain the annual
dividend at 15.0p per share in 2026.
Full year overview
Revenue was £13,550m, down 8.1% from £14,741m in 2024,
and down 3.6% LFL. Revenue less pass-through costs was
£10,176m, down 10.4% from £11,359m in 2024, and down 5.4%
LFL.
|
£ million
|
Q4 2025
£m
|
%
reported
|
%
M&A
|
%
FX
|
+/(-) % LFL
|
|
Revenue
|
3,628
|
(8.3)
|
(1.9)
|
(0.9)
|
(5.5)
|
|
Revenue less pass-through costs
|
2,691
|
(10.1)
|
(2.6)
|
(0.6)
|
(6.9)
|
|
£ million
|
2025
£m
|
%
reported
|
%
M&A
|
%
FX
|
+/(-) % LFL
|
|
Revenue
|
13,550
|
(8.1)
|
(2.7)
|
(1.8)
|
(3.6)
|
|
Revenue less pass-through costs
|
10,176
|
(10.4)
|
(3.3)
|
(1.7)
|
(5.4)
|
Segmental review
Business segments – revenue less pass-through
costs
|
+/(-) % LFL
|
Global
Integrated Agencies
|
Public Relations
|
Specialist Agencies
|
|
Q4 2025
|
(7.6)
|
(3.4)
|
(0.1)
|
|
2025
|
(5.7)
|
(6.0)
|
(0.7)
|
Global Integrated Agencies: WPP
Media saw a LFL decline in revenue less pass-through costs of 5.9%
in 2025 (Q4: -10.8%) which was a result of client assignment
losses, cuts to client spending and one-off factors during the
year. As anticipated, performance in the fourth quarter has
deteriorated further given the client losses in the US and UK from
the first half of the year, further weakness in Europe and
continuing declines in China, partially offset by improving
performance in India and Australia.
Other Global Integrated Agencies declined 5.6% in 2025 (Q4: -4.3%)
as a result of lower overall client spending, particularly at
Ogilvy which declined high-single digits in the year. There was
also continuing pressure on project-based work which weighed on all
our agencies, albeit all agencies saw a slight sequential quarterly
improvement on easier comparisons in Q4. Declines have moderated at
VML (low-single digits) and Hogarth (which was consolidated into
the newly formed WPP Production business in February 2026) has
grown mid-single digits on the back of new business
momentum.
Public Relations: In 2025,
Burson saw a mid-single digit LFL decline in revenue less
pass-through costs as the business faced a challenging environment
for client discretionary spending, in particular in Europe. We are,
however, encouraged by a moderately improving trend in Q4, with LFL
revenue less pass-through costs down low-single digits (compared to
mid-single digits in Q3) and continued new business momentum with a
positive trending LFL growth in the US in Q4. Reported revenue less
pass-through costs continues to be impacted by the disposal of FGS
Global which completed in Q4 2024.
Specialist Agencies: CMI Media
Group, our specialist healthcare media planning and buying agency,
continued to grow strongly at double-digit digit growth in the
year. Meanwhile, Landor and Design Bridge and Partners continued to
grow, supported by spend from existing clients. Pressure remains on
the longer tail of activities within the segment, and overall
Specialist Agencies LFL growth was flat in Q4 and declined 0.7% in
2025.
Regional segments – revenue less pass-through
costs
|
+/(-) % LFL
|
North America
|
United Kingdom
|
Western Cont. Europe
|
Rest of World
|
|
Q4 2025
|
(7.3)
|
(9.2)
|
(3.5)
|
(7.5)
|
|
2025
|
(4.6)
|
(7.6)
|
(4.7)
|
(5.9)
|
North America declined by 4.6% in 2025, driven by an anticipated
further sequential deterioration of 7.3% in Q4 relative to Q3 2025
(-6.0%). Q4 saw the full impact of H1 client account losses at WPP
Media, in addition to some client spending cuts, in particular at
Ogilvy and AKQA, with pressure centred on CPG and Government and a
decline in spend in Tech & Digital Services. Meanwhile, the
region saw growth from Healthcare and Automotive in the
quarter.
The United Kingdom
declined 7.6% in 2025, with Q4
declining 9.2% despite an easing comparison (Q4 2024: -5.1%) with
the continuing impact of client assignment losses amplified by
spending cuts. Pressure was centred on WPP Media and VML offsetting
an improving trend at AKQA.
Western Continental Europe saw
an improving sequential decline of 3.5% in Q4 2025 compared to Q3
2025 (-4.4%) and also against a tough comparison from 2024 (Q4
2024: +1.4%). Spain continued to grow in Q4, while declines in
Germany continued, albeit at a lower rate compared to Q3, driven by
pressure on WPP Media from client assignment
losses.
Rest of World declined 5.9% in 2025, mostly driven by Asia Pacific. India is a
relative outperformer, growing 8.6% in Q4 on new business momentum,
in particular at WPP Media, although against an easier comparison
(Q4 2024: -5.4%). India grew 3.8% overall in 2025. This was offset
by a decline of 14.3% in China on the continued impact of client
assignment losses and persistent macroeconomic pressures. There
were declines in Latin America (2025: -2.5%) but stability in
Africa & Middle East, with Q4 returning to growth +2.3% and
also growth in Central & Eastern Europe (2025:
+2.6%).
Top five markets – revenue less pass-through
costs
|
+/(-) % LFL
|
USA
|
UK
|
Germany
|
China
|
India
|
|
Q4 2025
|
(6.3)
|
(9.2)
|
(5.9)
|
(13.6)
|
8.6
|
|
2025
|
(4.2)
|
(7.6)
|
(5.8)
|
(14.3)
|
3.8
|
Client sector – revenue less pass-through costs
|
|
Q4 2025
|
2025
|
2025
|
|
|
+/(-) % LFL
|
+/(-) % LFL
|
% share, revenue less pass-through costs1
|
|
CPG
|
(12.6)
|
(7.1)
|
27.5
|
|
Tech & Digital Services
|
(5.8)
|
(2.0)
|
17.8
|
|
Healthcare & Pharma
|
2.0
|
2.1
|
11.8
|
|
Automotive
|
(3.7)
|
(2.6)
|
10.5
|
|
Retail
|
(1.2)
|
(4.1)
|
9.0
|
|
Telecom, Media & Entertainment
|
(20.1)
|
(10.1)
|
6.4
|
|
Financial Services
|
(11.4)
|
(5.0)
|
6.2
|
|
Other
|
4.0
|
(9.4)
|
4.3
|
|
Travel & Leisure
|
(3.8)
|
(5.8)
|
3.6
|
|
Government, Public Sector & Non-profit
|
(7.5)
|
(0.7)
|
2.9
|
1. Proportion of WPP revenue
less pass-through costs in 2025; table made up of clients
representing 82% of WPP total revenue less pass-through
costs.
Financial results
Unaudited income
statement1:
|
|
Headline
|
Reported
|
||||
|
£ million
|
2025
|
2024
|
+/(-) %
|
2025
|
2024
|
+/(-) %
|
|
Revenue
|
13,550
|
14,741
|
(8.1)
|
13,550
|
14,741
|
(8.1)
|
|
Revenue less pass-through costs
|
10,176
|
11,359
|
(10.4)
|
10,176
|
11,359
|
(10.4)
|
|
Operating profit
|
1,321
|
1,707
|
(22.6)
|
382
|
1,325
|
(71.2)
|
|
Operating profit margin
(%)2
|
13.0 %
|
15.0 %
|
(2.0)pt
|
2.8 %
|
9.0%
|
(6.2)pt
|
|
Earnings from associates
|
39
|
40
|
(2.5)
|
39
|
36
|
8.3
|
|
Profit before interest & tax
|
1,360
|
1,747
|
(22.2)
|
421
|
1,361
|
(69.1)
|
|
Net finance costs
|
(274)
|
(280)
|
(2.1)
|
(290)
|
(330)
|
(12.1)
|
|
Profit before taxation
|
1,086
|
1,467
|
(26.0)
|
131
|
1,031
|
(87.3)
|
|
Tax
|
(348)
|
(411)
|
15.3
|
(303)
|
(402)
|
(24.6)
|
|
Profit after taxation
|
738
|
1,056
|
(30.1)
|
(172)
|
629
|
(127.3)
|
|
Non-controlling interests
|
(43)
|
(87)
|
50.6
|
(43)
|
(87)
|
(50.6)
|
|
Profit attributable to shareholders
|
695
|
969
|
(28.3)
|
(215)
|
542
|
(139.7)
|
|
Diluted EPS (p)
|
63.2p
|
88.3p
|
(28.4)
|
(20.0)p
|
49.4p
|
(140.5)
|
1.
Non-GAAP measures in this table are
reconciled in Appendix 4.
2. Headline operating profit
margin is headline operating profit divided by revenue less
pass-through costs and reported operating profit margin is reported
operating profit divided by revenue, with the % change expressed in
margin points.
Operating profit
Headline operating profit was £1,321m (2024: £1,707m) at
a headline operating profit margin of 13.0% (2024: 15.0%), 2.0
points lower than prior year and 1.8 points
lower LFL. This year-on-year decline reflects lower revenue less
pass-through costs and increased severance activity compared to the
prior period, in particular at WPP Media, partially offset by lower
staff incentives.
Total headline operating costs were down 8.3%, to £8,855m
(2024: £9,652m).
Staff costs of £7,083m were down 8.7% compared to the prior
year (2024: £7,761m), reflecting lower headcount as a result
of the actions we have taken to mitigate the top-line decline this
year. This has offset wage inflation and higher severance costs of
£141m (2024: £61m). Staff incentives of £181m were
down 50.1% compared to the prior year (2024: £363m) due to
business performance against annual incentive targets and the
disposal of FGS Global.
The average number of people in the Group in 2025 was 103,277
compared to 111,281 in 2024. The total number of people as at
31 December 2025 was 98,655 compared to 108,044 as at
31 December 2024.
Establishment costs of £420m were down 11.0% compared to the
prior year (2024: £472m) driven by benefits from the ongoing
campus programme and consolidation of leases, the benefit from the
FGS disposal in 2024 and a favourable FX impact. Technology spend
of £642m (2024: £684m) was down 6.1%, reflecting our
ongoing focus on driving efficiencies to mitigate inflation, offset
by our continuing investment in WPP Open, AI and data. Personal
costs of £177m (2024: £209m) were down 15.3% driven by
savings in travel and entertainment, while other operating expenses
of £533m (2024: £526m) slightly increased by 1.3% due to
cost inflation, slightly offset by efficiency savings.
Headline EBITDA (including IFRS 16 depreciation) for the period was
down by 20.2% to £1,545m (2024: £1,935m).
Operating profit (continued)
Reported operating profit was £382m (2024: £1,325m) at a
reported operating profit margin of 2.8% (2024: 9.0%) with the
decrease due to the same factors as headline operating profit above
and higher total adjusting items of £939m (2024: £382m).
Reported operating profit includes goodwill impairment charges of
£641m (2024: £237m), primarily relating to Ogilvy and
AKQA, property impairments of £114m (2024:
£3m), amortisation and impairment of acquired intangible
assets of £61m (2024: £93m) and restructuring and
transformation costs of £68m (2024: £251m). The prior
year included gains on disposals of investments and subsidiaries of
£322m, predominantly related to the disposal of FGS
Global.
The restructuring and transformation costs of £68m (2024:
£251m) represent a decrease of £183m from the prior
year, consistent with the expected ramp down of historical
transformation programmes.
Net finance costs
Headline net finance costs of £274m were down 2.1% compared to
the prior year (2024: £280m), primarily due to lower average
adjusted net debt and lower interest rates in 2025 compared to
2024.
Reported net finance costs were £290m (2024: £330m),
including net charges of £16m (2024: £50m) relating to
the revaluation and retranslation of financial
instruments.
Tax
The headline effective tax rate (based on headline profit before
tax) was 32.0% (2024: 28.0%).
The higher headline tax rate resulted from the effect of lower
headline profit before tax in 2025 on fixed elements of our
headline tax change compared to prior year.
The reported effective tax rate was 231.3% (2024: 39.0%). The
reported effective tax rate is higher than the headline effective
tax rate due to non-deductible goodwill charges.
Earnings per share (“EPS”) and dividend
Headline diluted EPS was 63.2p (2024: 88.3p), a decrease of 28.4%
predominantly due to lower headline operating profit and higher
effective tax rate, slightly offset by lower headline net finance
costs and lower non-controlling interests.
Reported diluted EPS was (20.0)p (2024: 49.4p), a decrease of
140.5% due to a net loss in 2025 compared to net income in
2024.
The Board is proposing a final dividend for 2025 of 7.5 pence per
share, which together with the interim dividend paid in November
2025 gives a full-year dividend of 15.0 pence per share. The record
date for the final dividend is 5 June 2026, and the dividend
will be payable on 3 July 2026. The dividend has been reduced,
balancing consistent returns to shareholders with investment for
growth.
Cash flow highlights
Unaudited headline cash flow
statement1:
|
Year ended (£ million)
|
31 December 2025
|
31 December 2024
|
|
Headline operating profit
|
1,321
|
1,707
|
|
Headline earnings from associates
|
39
|
40
|
|
Depreciation of property, plant and equipment
|
142
|
156
|
|
Amortisation of other intangibles
|
43
|
32
|
|
Depreciation of right-of-use assets
|
201
|
213
|
|
Headline EBITDA
|
1,746
|
2,148
|
|
Less: headline earnings from associates
|
(39)
|
(40)
|
|
Repayment of lease liabilities and related interest
|
(337)
|
(377)
|
|
Non-cash compensation
|
73
|
109
|
|
Non-headline cash items (including restructuring
costs)
|
(68)
|
(261)
|
|
Capex
|
(186)
|
(236)
|
|
Adjusted operating cash flow before working capital
|
1,189
|
1,343
|
|
Working capital
|
(334)
|
117
|
|
Adjusted operating cash flow
|
855
|
1,460
|
|
% conversion of Headline operating profit
|
65 %
|
86 %
|
|
Net dividends (to minorities)/from associates
|
(5)
|
(36)
|
|
Contingent consideration liability payments
|
(65)
|
(97)
|
|
Net interest
|
(185)
|
(197)
|
|
Cash tax2
|
(398)
|
(392)
|
|
Adjusted free cash flow
|
202
|
738
|
|
Disposal proceeds
|
22
|
667
|
|
Net initial acquisition payments
|
(147)
|
(153)
|
|
Dividends
|
(343)
|
(425)
|
|
Share purchases
|
(97)
|
(82)
|
|
Adjusted net cash flow
|
(363)
|
745
|
|
Reported:
|
|
|
|
Net cash inflow from operating activities
|
724
|
1,408
|
1. A summary of the
Group’s unaudited cash flow statement and notes for the year
ended 31 December 2025 is provided in Appendix 1 and any
non-GAAP measures in this table are reconciled in Appendix
4.
2. Cash tax in 2025 includes
£43m related to tax payments for the FGS Global
disposal.
Adjusted operating cash outflow before working capital was
£1,189m (2024: £1,343m). The main driver of the lower
cash inflow was the decrease in headline operating profit,
partially offset by lower non-headline cash items, capex and lease
repayments. Included within non-headline cash items is £82m of
cash restructuring costs (2024: £275m). Working capital was an
outflow of £334m compared with an inflow of £117m in the
prior year, partly due to the impact of lower staff
incentives.
Adjusted free cash flow was £202m (2024: £738m), lower
than prior year due to a decrease in adjusted operating cash flow
and higher cash taxes, partially offset by lower contingent
consideration liability payments, net interest and dividends to
minorities/from associates.
Adjusted net cash outflow was £363m, compared to an adjusted
net cash inflow in the prior year (2024: £745m inflow),
primarily due to higher disposal proceeds, predominantly from the
FGS Global disposal in 2024, partially offset by lower dividends
paid.
Reported net cash inflow from operating activities decreased to
£724m (2024: £1,408m inflow) due a reported operating
profit decline and a large working capital outflow compared to an
inflow in 2024.
Balance sheet highlights
Unaudited balance sheet
Non-current assets of £10,905m decreased by £943m
(31 December 2024: £11,848m), primarily driven by lower
goodwill due to impairment charges of £641m and lower
property, plant and equipment due to property impairments of
£114m recognised in the year. The remainder of the decrease
primarily relates to depreciation, amortisation and foreign
exchange.
Current assets of £13,170m decreased by £491m
(31 December 2024: £13,661m). The decrease is principally
driven by lower trade and other receivables, which reduced by
£443m.
Current liabilities of £14,835m decreased by £681m
(31 December 2024: £15,516m). The decrease primarily
relates to trade and other payables which decreased by £807m
and corporate income tax payable which decreased by £112m,
partially offset by a net increase in current borrowings of
£238m. The increase in current borrowings is due to the
€750m of 2.25% bonds maturing in September 2026 becoming
current, mostly offset by the repayment of €500m of 1.375%
bonds, further detailed in the section below. The decrease in
corporate income tax payable is due to the lower tax charge
compared to prior year.
The decrease in both current trade and other receivables and trade
and other payables is primarily due to client activity and timing
of payments.
Non-current liabilities of £6,468m increased by £209m
(31 December 2024: £6,259m). The increase is primarily
due to the issuance of €1,000m of 3.625% bonds, offset by the
€750m of 2.25% bonds becoming current in the year. Further
details on bond activity is in the section below.
Recognised within total equity, other comprehensive loss of
£220m (2024: £62m loss) includes a £205m loss (2024:
£72m loss) for foreign exchange differences on translation of
foreign operations, a £58m loss (2024: £58m gain) for
cash flow hedge amounts reclassified to profit or loss and a
£54m decline (2024: £7m) of the fair value of equity
investments, partially offset by a £68m gain (2024: £3m
loss) on the Group’s net investment hedges.
A summary of the Group’s unaudited balance sheet and selected
notes as at 31 December 2025 is provided in Appendix
1.
Adjusted net debt
As at 31 December 2025, the Group had cash and cash
equivalents of £2.7bn (31 December 2024: £2.6bn) and
borrowings of £4.9bn (31 December 2024: £4.3bn). The
Group has current liquidity of £4.4bn (31 December 2024:
£4.5bn), comprising of cash and cash equivalents, bank
overdrafts and undrawn credit facilities.
As at 31 December 2025, adjusted net debt was £2.2bn
(31 December 2024: £1.7bn), up £0.5bn. Average
adjusted net debt in 2025 was £3.4bn, compared to £3.5bn
in 2024. The average adjusted net debt to headline EBITDA ratio in
the 12 months ended 31 December 2025 was 2.2x (12 months ended
31 December 2024: 1.8x).
The Group has a five-year Revolving Credit Facility of $2.5bn which
matures in February 2031 following the final one-year extension
option that was executed in February 2026. The Revolving Credit
Facility has no financial covenants and remained undrawn at
31 December 2025.
In March 2025, we repaid €500m of 1.375% bonds which matured
and in December 2025, we issued €1,000m of 3.625% bonds,
maturing 2031, in a successful bond raising which was
oversubscribed.
As at 31 December 2025, our bond portfolio had an average
maturity of 5.8 years (31 December 2024:
6.3 years) and a weighted average coupon rate of 3.5%
(31 December 2024: 3.5%).
Financial outlook
Our guidance for 2026 is as follows:
|
Like-for-like
revenue less pass-through costs decline in the mid to high-single
digits in the first half of 2026 with an improving trajectory in
the second half
Headline
operating margin expected to be 12% to 13%
Adjusted
operating cash flow before working capital of £800m to
£900m
|
Other 2026 modelling assumptions:
●
Mergers
and acquisitions will not significantly impact revenue less
pass-through costs
●
FX
impact: current rates (at 27 January 2026, with USD/GBP rate
of 1.38) imply a c.1.6% drag on FY 2026 revenue less pass-through
costs
●
In
keeping with our revenue less pass-through cost and headline
operating margin guidance, we now expect the
following:
●
Headline
earnings from associates of around £30m
●
Non-controlling
interests of around £45m
●
Headline
net finance costs of around £290m
●
Headline effective tax rate1
between 33% to 34%
●
The
following items impact adjusted operating cash flow before working
capital:
●
Capex
broadly flat year-on-year at around £190m
●
Total
cash restructuring costs of around £250m, consisting of
c.£190m from Elevate28 and c.£60m from historical
programs
This announcement contains information that qualifies or may
qualify as inside information. The person responsible for arranging
the release of this announcement on behalf of WPP plc is Balbir
Kelly-Bisla, Company Secretary.
1. Headline tax as a % of
headline profit before tax.
Q4 2025
highlights
Below we highlight key developments from Q4 across the
Group:
1. Clients
●
WPP new business momentum
– During
the fourth quarter WPP’s new business improved significantly
with a number of new client assignments. Our integrated offering
has secured global consolidated wins in December, with Kenvue for
creative and production and Jaguar Land Rover for global integrated
marketing activities including media and creative. In November, WPP
Media also secured the wins of both Reckitt and Henkel in Europe
and the win of the UK Government in December. Other wins include:
Pizza Hut creative in the US, Major League Soccer creative in the
US, BMW creative in India, Warburtons PR in the UK and Burger King
PR in France.
●
WPP Production launched,
uniting WPP’s production capabilities into a single operating
unit – In February 2026,
Hogarth has come together with content producers from across the
WPP network and created a single, globally connected operating unit
(see link).
All teams will now operate on a single platform, harnessing WPP
Open’s production technology and AI-powered workflows to
deliver higher quality, more impactful content. The new offering
reflects our broader strategy to provide a more integrated service
and empowers our clients to tap into our holistic ecosystem of
creative, media and production expertise.
●
WPP Media’s Business
Intelligence releases latest ‘This Year, Next Year’
report – In December, WPP
Media’s Business Intelligence published its End-of-Year
Global Advertising Forecast for 2025, projecting global ad revenue
to reach $1.14 trillion with 8.8% growth (see link).
The report underscores the advertising industry's resilience amidst
economic and technological shifts, projecting robust growth. This
momentum is set to continue into 2026 with an anticipated 7.1%
growth. The report highlights a period of significant
transformation within the industry, as streaming video continues to
gain ground on linear television, retail media captures budget from
traditional digital channels, and AI-powered answer engines are
beginning to reshape search behaviour.
●
Industry recognition of our
work for clients – In
November, WPP was named a Leader in three IDC 2025 MarketScape
assessments, Worldwide Influencer Market Platforms for Large
Enterprises, Worldwide Experience Design Services and Worldwide
Experience Build Services. In December, WPP Media was named
MediaPost’s Holding Company of the Year (see
link).
For the fifth consecutive year, Ogilvy earned Global Network of the
Year at the 2025 London International Awards (see
link),
and at the Drum Awards Festival 2025, VML was honoured with 18
accolades (see link) including for our ‘Glassphemy’
work for Diageo. In January 2026, our global marketing
effectiveness and foresight consultancy, Gain Theory, was named a
Leader in The Forrester Wave™: Marketing Measurement And
Optimization Services (see link).
2. Technology
●
Launch of Agent Hub
– In
January 2026 (see link)
we announced the launch of Agent Hub on WPP Open, which provides
clients with access to a suite of advanced AI agents with decades
of WPP’s collective world-class expertise of proprietary
data, strategic capabilities and deep institutional best practice.
The initial agents include the Brand Analytics Agent, the
Behavioural Science Agent, the Analogies Agent and the Creative
Brain. Each agent within Agent Hub adheres to rigorous standards
including validation by experts and verification of knowledge
sources, while ensuring data remains confidential and secure, and
tested for accuracy.
●
InfoSum introduces Beacons for
cross-cloud data collaboration – Beacons
is a new technology from InfoSum (see link),
WPP’s leading data collaboration platform. Beacons enables
secure, AI-ready collaboration directly within clients’ own
cloud environments, across Amazon Web Services (AWS), Google Cloud
and Microsoft Azure. Integrated into WPP Open, Beacons allows
clients to train custom Open Intelligence models, unlocking
predictive insights and collaborative intelligence, while
maintaining full control and trust as this is all done within their
own environments. Open Intelligence is our foundational
intelligence layer underpinning WPP Open, securely connecting live
data from clients, partners and WPP in a privacy-first
way.
●
From adoption of WPP Open to
everyday usage – In 2025
we prioritised investment in WPP Open, our pioneering agentic
marketing platform, focusing on deployment across our business as
part of our £300m investment in 2025 on AI-driven technology.
A key metric for us is internal adoption and we have seen continued
progress with over 70,000 of our people (equivalent to around 90%
of client-facing staff) using the platform actively on a monthly
basis during the course of December (December 2024: 33,000/c.40% client-facing staff). As adoption
targets in 2025 have been achieved, increasing everyday usage
across all our agencies is our key priority.
3. People
●
WPP’s first Chief
Innovation Officer – In
November, WPP appointed Elav Horwitz (see link)
to the Chief Innovation Officer position, a new role created to
solidify WPP’s leadership in applied AI and deliver
groundbreaking technology-driven solutions for clients. Elav is
responsible for connecting WPP’s partners with our
unparalleled creative and strategic talent to drive applied AI and
client transformation, and to redefine how clients engage with
commerce, create compelling content and shape
culture.
●
WPP launches Client Solution
Architects Group – In
January 2026, WPP created the Client Solution Architects Group
which is an end-to-end strategic function unifying WPP's
capabilities, including technology, media, data and marketing, to
deliver tailored solutions for clients and will focus on driving
growth amongst our top clients. Alex Hesz has joined WPP as
President, Strategy and Solutions as part of this new group, and
will co-lead the team alongside Antonis Kocheilas, global Chief
Transformation Officer at Ogilvy, and Ben Kay, WPP’s Head of
Planning. The Client Solution Architects Group reports to Devika
Bulchandani, WPP’s Chief Operating
Officer.
Business segment and regional analysis
Business segments – revenue
analysis1
|
|
Q4 2025
|
2025
|
||||
|
|
£ million
|
+/(-) % reported
|
+/(-) % LFL
|
£ million
|
+/(-) % reported
|
+/(-) % LFL
|
|
Global Integrated Agencies
|
3,218
|
(7.0)
|
(6.2)
|
11,956
|
(5.6)
|
(3.7)
|
|
Public Relations
|
180
|
(31.6)
|
(4.9)
|
705
|
(39.0)
|
(6.7)
|
|
Specialist Agencies
|
230
|
(1.3)
|
4.0
|
889
|
(3.8)
|
1.0
|
|
Total Group
|
3,628
|
(8.3)
|
(5.5)
|
13,550
|
(8.1)
|
(3.6)
|
Business segments – revenue less
pass-through costs analysis1
|
|
Q4 2025
|
2025
|
||||
|
|
£ million
|
+/(-) % reported
|
+/(-) % LFL
|
£ million
|
+/(-) % reported
|
+/(-) % LFL
|
|
Global Integrated Agencies
|
2,328
|
(8.4)
|
(7.6)
|
8,740
|
(7.5)
|
(5.7)
|
|
Public Relations
|
168
|
(32.3)
|
(3.4)
|
667
|
(38.8)
|
(6.0)
|
|
Specialist Agencies
|
195
|
(4.9)
|
(0.1)
|
769
|
(6.0)
|
(0.7)
|
|
Total Group
|
2,691
|
(10.1)
|
(6.9)
|
10,176
|
(10.4)
|
(5.4)
|
Business segments – headline
operating profit analysis1
|
£ million
|
2025
|
% margin2
|
2024
|
% margin2
|
|
Global Integrated Agencies
|
1,165
|
13.3
|
1,491
|
15.8
|
|
Public Relations
|
102
|
15.3
|
166
|
15.2
|
|
Specialist Agencies
|
54
|
7.0
|
50
|
6.1
|
|
Total Group
|
1,321
|
13.0
|
1,707
|
15.0
|
1. Prior year figures have been
restated to reflect the reallocation of a number of businesses
between Global Integrated Agencies and Specialist
Agencies.
2.
Headline operating profit as a
percentage of revenue less pass-through costs.
Business segment and regional analysis
Regional – revenue analysis
|
|
Q4 2025
|
2025
|
||||
|
|
£ million
|
+/(-) % reported
|
+/(-) % LFL
|
£ million
|
+/(-) % reported
|
+/(-) % LFL
|
|
N. America
|
1,250
|
(11.4)
|
(5.1)
|
4,966
|
(10.8)
|
(3.4)
|
|
United Kingdom
|
530
|
(8.0)
|
(9.5)
|
2,055
|
(5.9)
|
(7.6)
|
|
W Cont. Europe
|
848
|
(1.6)
|
(1.8)
|
2,891
|
(4.0)
|
(0.1)
|
|
AP, LA, AME, CEE1
|
1,000
|
(9.7)
|
(6.8)
|
3,638
|
(8.5)
|
(4.0)
|
|
Total Group
|
3,628
|
(8.3)
|
(5.5)
|
13,550
|
(8.1)
|
(3.6)
|
Regional – revenue less pass-through costs
analysis
|
|
Q4 2025
|
2025
|
||||
|
|
£ million
|
+/(-) % reported
|
+/(-) % LFL
|
£ million
|
+/(-) % reported
|
+/(-) % LFL
|
|
N. America
|
940
|
(14.2)
|
(7.3)
|
3,837
|
(12.7)
|
(4.6)
|
|
United Kingdom
|
389
|
(7.2)
|
(9.2)
|
1,503
|
(5.4)
|
(7.6)
|
|
W Cont. Europe
|
619
|
(5.6)
|
(3.5)
|
2,143
|
(9.8)
|
(4.7)
|
|
AP, LA, AME, CEE
|
743
|
(9.8)
|
(7.5)
|
2,693
|
(10.3)
|
(5.9)
|
|
Total Group
|
2,691
|
(10.1)
|
(6.9)
|
10,176
|
(10.4)
|
(5.4)
|
Regional – headline operating profit analysis
|
£ million
|
2025
|
% margin2
|
2024
|
% margin2
|
|
N. America
|
663
|
17.3
|
825
|
18.8
|
|
United Kingdom
|
164
|
10.9
|
237
|
14.9
|
|
W Cont. Europe
|
212
|
9.9
|
259
|
10.9
|
|
AP, LA, AME, CEE
|
282
|
10.5
|
386
|
12.9
|
|
Total Group
|
1,321
|
13.0
|
1,707
|
15.0
|
1. Asia Pacific, Latin America,
Africa & Middle East and Central & Eastern
Europe.
2.
Headline operating profit as a
percentage of revenue less pass-through costs.
Unaudited preliminary consolidated income statement for the year
ended 31 December 2025
|
£ million
|
Notes
|
2025
|
2024
|
|
Revenue
|
3
|
13,550
|
14,741
|
|
Costs of services
|
2
|
(11,404)
|
(12,290)
|
|
Gross profit
|
|
2,146
|
2,451
|
|
General and administrative costs
|
2
|
(1,764)
|
(1,126)
|
|
Operating profit
|
|
382
|
1,325
|
|
Earnings from associates
|
|
39
|
36
|
|
Profit before interest and taxation
|
|
421
|
1,361
|
|
Finance and investment income
|
|
78
|
137
|
|
Finance costs
|
|
(352)
|
(417)
|
|
Revaluation and retranslation of financial instruments
|
|
(16)
|
(50)
|
|
Profit before taxation
|
|
131
|
1,031
|
|
Taxation
|
|
(303)
|
(402)
|
|
(Loss)/profit for the year
|
|
(172)
|
629
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
Equity holders of the parent
|
|
(215)
|
542
|
|
Non-controlling interests
|
|
43
|
87
|
|
|
|
(172)
|
629
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
Basic (loss)/earnings per ordinary share
|
5
|
(20.0) p
|
50.3 p
|
|
Diluted (loss)/earnings per ordinary share
|
5
|
(20.0) p
|
49.4 p
|
The accompanying notes form an integral part of this unaudited
preliminary consolidated income statement.
Appendix 1: Preliminary results for the year ended 31 December
2025
Unaudited preliminary consolidated
statement of comprehensive
income for the year ended
31 December 2025
|
£ million
|
2025
|
2024
|
|
(Loss)/profit for the year
|
(172)
|
629
|
|
Items that may be reclassified subsequently to profit or
loss:
|
|
|
|
Foreign exchange differences on translation of foreign
operations
|
(205)
|
(72)
|
|
Gain/(loss) on net investment hedges
|
68
|
(3)
|
|
Cash flow hedges:
|
|
|
|
Fair
value gain/(loss) arising on hedging instruments
|
25
|
(35)
|
|
Amounts
reclassified to profit or loss
|
(58)
|
58
|
|
Gain/(loss)
on costs of hedging
|
5
|
(8)
|
|
|
(165)
|
(60)
|
|
|
|
|
|
Items that will not be reclassified subsequently to profit or
loss:
|
|
|
|
Movements
on equity investments held at fair value through other
comprehensive income
|
(54)
|
(7)
|
|
Actuarial (loss)/gain on defined benefit pension plans
|
(1)
|
3
|
|
Deferred tax on defined benefit pension plans
|
—
|
2
|
|
|
(55)
|
(2)
|
|
Other comprehensive loss for the year
|
(220)
|
(62)
|
|
Total comprehensive (loss)/income for the year
|
(392)
|
567
|
|
|
|
|
|
Attributable to:
|
|
|
|
Equity holders of the parent
|
(431)
|
482
|
|
Non-controlling interests
|
39
|
85
|
|
|
(392)
|
567
|
The accompanying notes form an integral part of this unaudited
preliminary consolidated statement of comprehensive
income.
Unaudited preliminary consolidated cash flow statement for the year
ended
31 December 2025
|
£ million
|
Notes
|
2025
|
2024
|
|
Net cash inflow from operating
activities1
|
6
|
724
|
1,408
|
|
Investing activities
|
|
|
|
|
Acquisitions1
|
|
(183)
|
(153)
|
|
Disposals of investments and subsidiaries2
|
|
14
|
553
|
|
Proceeds from loans on disposal of subsidiaries
|
|
—
|
93
|
|
Purchases of property, plant and equipment
|
|
(91)
|
(189)
|
|
Purchases of intangible assets
|
|
(95)
|
(47)
|
|
Proceeds from disposal of property, plant and
equipment
|
|
8
|
21
|
|
Net cash (outflow)/inflow from investing activities
|
|
(347)
|
278
|
|
Financing activities
|
|
|
|
|
Principal elements of lease payments
|
|
(242)
|
(282)
|
|
Share option proceeds
|
|
—
|
2
|
|
Cash consideration for purchase of non-controlling
interests
|
|
(8)
|
(87)
|
|
Share repurchases and buy-backs
|
|
(97)
|
(82)
|
|
Proceeds from borrowings
|
|
874
|
1,060
|
|
Repayment of borrowings
|
|
(418)
|
(1,087)
|
|
Repayment of borrowing-related derivatives
|
|
(26)
|
(14)
|
|
Financing and share issue costs
|
|
(9)
|
(7)
|
|
Equity dividends paid
|
|
(343)
|
(425)
|
|
Dividends paid to non-controlling interests in subsidiary
undertakings
|
|
(50)
|
(67)
|
|
Net cash outflow from financing activities
|
|
(319)
|
(989)
|
|
Net increase in cash and cash equivalents
|
|
58
|
697
|
|
Foreign exchange translation of cash and cash
equivalents
|
|
1
|
(90)
|
|
Cash and cash equivalents at beginning of year
|
|
2,467
|
1,860
|
|
Cash and cash equivalents at end of year
|
7
|
2,526
|
2,467
|
The accompanying notes form an integral part of this
unaudited
preliminary consolidated cash
flow statement.
1
Contingent
consideration liability payments in excess of the amount determined
at acquisition are recorded as operating activities.
2
Disposals of investments and
subsidiaries in investing activities represents consideration
received less cash and cash equivalents disposed. The proceeds in
2024 primarily relate to the disposal of FGS Global, with
consideration received less cash and cash equivalents disposed of
£520 million.
Unaudited preliminary consolidated balance sheet as at
31 December 2025
|
£ million
|
Notes
|
2025
|
2024
|
|
Non-current assets
|
|
|
|
|
Goodwill
|
|
6,946
|
7,610
|
|
Other intangible assets
|
|
734
|
737
|
|
Property, plant and equipment
|
|
724
|
909
|
|
Right-of-use assets
|
|
1,317
|
1,385
|
|
Interests in associates
|
|
231
|
253
|
|
Other investments
|
|
334
|
398
|
|
Deferred tax assets
|
|
292
|
323
|
|
Corporate income tax recoverable
|
|
55
|
59
|
|
Trade and other receivables
|
|
272
|
174
|
|
|
|
10,905
|
11,848
|
|
Current assets
|
|
|
|
|
Corporate income tax recoverable
|
|
124
|
113
|
|
Trade and other receivables
|
|
7,279
|
7,722
|
|
Accrued income and unbilled media
|
|
3,073
|
3,188
|
|
Cash and cash equivalents
|
7
|
2,694
|
2,638
|
|
|
|
13,170
|
13,661
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables1
|
|
(13,409)
|
(14,216)
|
|
Corporate income tax payable
|
|
(221)
|
(333)
|
|
Lease liabilities
|
|
(223)
|
(240)
|
|
Borrowings
|
7
|
(822)
|
(584)
|
|
Provisions for liabilities and charges
|
|
(160)
|
(143)
|
|
|
|
(14,835)
|
(15,516)
|
|
Net current liabilities
|
|
(1,665)
|
(1,855)
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Borrowings
|
7
|
(4,114)
|
(3,744)
|
|
Trade and other payables
|
|
(208)
|
(229)
|
|
Deferred tax liabilities
|
|
(146)
|
(142)
|
|
Employee benefit obligations
|
|
(128)
|
(132)
|
|
Provisions for liabilities and charges
|
|
(199)
|
(232)
|
|
Lease liabilities
|
|
(1,673)
|
(1,780)
|
|
|
|
(6,468)
|
(6,259)
|
|
Net assets
|
|
2,772
|
3,734
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Called-up share capital
|
|
109
|
109
|
|
Share premium account
|
|
579
|
579
|
|
Other reserves
|
|
(12)
|
151
|
|
Own shares
|
|
(188)
|
(191)
|
|
Retained earnings
|
|
2,052
|
2,827
|
|
Equity shareholders’ funds
|
|
2,540
|
3,475
|
|
Non-controlling interests
|
|
232
|
259
|
|
Total equity
|
|
2,772
|
3,734
|
The accompanying notes form an integral part of this
unaudited
preliminary consolidated
balance sheet.
1
Deferred income and customer advances,
that was previously presented separately, is included within Trade
and other payables
Unaudited preliminary consolidated statement of changes in equity
for the year ended 31 December 2025
|
£ million
|
Called-up
share capital
|
Share
premium account
|
Other reserves
|
Own shares
|
Retained earnings1
|
Total equity
share
holders’ funds
|
Non-
controlling interests
|
Total
|
|
Balance at 1 January 2024
|
114
|
577
|
187
|
(990)
|
3,488
|
3,376
|
457
|
3,833
|
|
Profit for the year
|
—
|
—
|
—
|
—
|
542
|
542
|
87
|
629
|
|
Other comprehensive loss
|
—
|
—
|
(58)
|
—
|
(2)
|
(60)
|
(2)
|
(62)
|
|
Total comprehensive (loss)/income
|
—
|
—
|
(58)
|
—
|
540
|
482
|
85
|
567
|
|
Dividends paid
|
—
|
—
|
—
|
—
|
(425)
|
(425)
|
(67)
|
(492)
|
|
Ordinary shares issued
|
—
|
2
|
—
|
—
|
—
|
2
|
—
|
2
|
|
Share cancellations3
|
(5)
|
—
|
5
|
743
|
(743)
|
—
|
—
|
—
|
|
Treasury shares used for share option schemes
|
—
|
—
|
—
|
57
|
(57)
|
—
|
—
|
—
|
|
Non-cash share-based incentive plans (including share
options)
|
—
|
—
|
—
|
—
|
81
|
81
|
—
|
81
|
|
Tax on share-based payments
|
—
|
—
|
—
|
—
|
1
|
1
|
—
|
1
|
|
Net movement in own shares held by ESOP Trusts
|
—
|
—
|
(8)
|
(1)
|
(73)
|
(82)
|
—
|
(82)
|
|
Net movement of liabilities in respect of put options
|
—
|
—
|
25
|
—
|
17
|
42
|
—
|
42
|
|
Net movement in non-controlling interests2
|
—
|
—
|
—
|
—
|
(2)
|
(2)
|
(216)
|
(218)
|
|
Total transactions with owners
|
(5)
|
2
|
22
|
799
|
(1,201)
|
(383)
|
(283)
|
(666)
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 December 2024
|
109
|
579
|
151
|
(191)
|
2,827
|
3,475
|
259
|
3,734
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit for the year
|
—
|
—
|
—
|
—
|
(215)
|
(215)
|
43
|
(172)
|
|
Other comprehensive loss
|
—
|
—
|
(161)
|
—
|
(55)
|
(216)
|
(4)
|
(220)
|
|
Total comprehensive
(loss)/income
|
—
|
—
|
(161)
|
—
|
(270)
|
(431)
|
39
|
(392)
|
|
Dividends paid
|
—
|
—
|
—
|
—
|
(343)
|
(343)
|
(50)
|
(393)
|
|
Non-cash share-based incentive plans (including share
options)
|
—
|
—
|
—
|
—
|
73
|
73
|
—
|
73
|
|
Tax on share-based payments
|
—
|
—
|
—
|
—
|
(2)
|
(2)
|
—
|
(2)
|
|
Net movement in own shares held by ESOP Trusts
|
—
|
—
|
—
|
3
|
(102)
|
(99)
|
—
|
(99)
|
|
Net movement of liabilities in respect of put options
|
—
|
—
|
(2)
|
—
|
(6)
|
(8)
|
—
|
(8)
|
|
Net movement in non-controlling interests2
|
—
|
—
|
—
|
—
|
(125)
|
(125)
|
(16)
|
(141)
|
|
Total transactions with owners
|
—
|
—
|
(2)
|
3
|
(505)
|
(504)
|
(66)
|
(570)
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 December 2025
|
109
|
579
|
(12)
|
(188)
|
2,052
|
2,540
|
232
|
2,772
|
The accompanying notes form an integral part of this unaudited
preliminary consolidated statement of changes in
equity.
1
Accumulated losses on existing equity
investments held at fair value through other comprehensive
income are £408 million at 31 December 2025 (2024:
£354 million).
2
Net movement in non-controlling
interests represents movements in retained earnings and
non-controlling interests arising from changes in ownership of
existing subsidiaries, including MAP and Resolve in 2025 (see note
8), recognition of non-controlling interests on new acquisitions
and derecognition of non-controlling interests on disposals of
subsidiaries, including FGS Global in 2024.
3
In December 2024, WPP cancelled
50,367,570 treasury shares.
Notes to the unaudited preliminary consolidated financial
statements
1. Basis of preparation
The unaudited preliminary consolidated financial statements for WPP
plc and its subsidiaries (the Group) comply with the recognition
and measurement criteria of International Financial Reporting
Standards (IFRS) as issued by the International Accounting
Standards Board (IASB) and with the accounting policies of the
Group, which were set out on pages 151 – 156 of the 2024
Annual Report and Accounts. The unaudited preliminary consolidated
financial statements are prepared under the historical cost
convention, except for the revaluation of certain financial
instruments as disclosed in the accounting policies referenced
above.
No significant changes have been made to the Group’s
accounting policies in the year ended 31 December 2025. The
Group does not consider that the amendments to standards adopted
during the year have a significant impact on the financial
statements.
Having considered the principal risks and uncertainties (as
outlined in Appendix 2), the directors consider it appropriate to
adopt the going concern basis of accounting in preparing these
preliminary consolidated financial statements. In making this
assessment, the directors have reviewed the results of latest cash
flow forecasts and have considered the results of a reverse stress
test to quantify the level of revenue less pass-through costs
decline required to utilise all of the Group's liquidity headroom
for at least a year from the date the consolidated financial
statements are planned to be signed, taking into account debt
maturities and cost mitigations. The likelihood of declines
required to utilise all available headroom is considered remote.
None of the Group's facilities have financial
covenants.
Whilst the unaudited preliminary consolidated financial statements
included in this preliminary announcement have been prepared in
accordance with the recognition and measurement criteria of IFRS as
issued by the IASB, they do not include all the information needed
to comply with IFRS disclosure requirements. The Group’s 2025
Annual Report and Accounts will be prepared in compliance with IFRS
disclosure requirements. The unaudited preliminary announcement
does not constitute a dissemination of the annual financial report
and does not therefore need to meet the dissemination requirements
for annual financial reports. A separate dissemination announcement
in accordance with Disclosure and Transparency Rules (DTR) 6.3 will
be made when the 2025 Annual Report and audited Accounts are
available on the Group’s website.
Statutory information
The financial information included in this preliminary announcement
does not constitute statutory accounts. The statutory accounts for
the year ended 31 December 2024 have been delivered to the
Jersey Registrar and received an unqualified auditors’
report. The statutory accounts for the year ended 31 December
2025 will be finalised on the basis of the financial information
presented by the directors in this unaudited preliminary
announcement and will be delivered to the Jersey Registrar
following the Company’s Annual General Meeting. The audit
report for the year ended 31 December 2025 has yet to be
signed. The announcement of the preliminary results was approved on
behalf of the board of directors on 26 February 2026.
2. Costs of services and general and administrative
costs
Costs of services and general and administrative costs
include:
|
£ million
|
2025
|
2024
|
|
Staff costs1
|
7,083
|
7,761
|
|
Establishment costs
|
420
|
472
|
|
Media pass-through costs
|
2,543
|
2,523
|
|
Other costs of services and general and administrative
costs2
|
3,122
|
2,660
|
|
|
13,168
|
13,416
|
1 Additional
staff costs of £13 million
(2024: £137 million) are
included within ‘Restructuring and transformation
costs’ below.
2
Other costs of services and general
and administrative costs include £831 million
(2024: £859 million) of
other pass-through costs.
Other costs of services and general and administrative costs
include the following significant items:
|
£ million
|
2025
|
2024
|
|
Goodwill impairment
|
641
|
237
|
|
Amortisation and impairment of acquired intangible
assets
|
61
|
93
|
|
Restructuring and transformation costs
|
68
|
251
|
|
Property-related restructuring costs
|
127
|
26
|
|
Gains on disposal of investments and subsidiaries
|
(6)
|
(322)
|
|
Legal provision charges
|
43
|
68
|
Goodwill impairment
In 2025, goodwill impairment charges of £641
million were recognised,
primarily relating to the Ogilvy, AKQA and previous Grey cash
generating units (“CGUs”). The respective 2025
impairments for these CGUs are £393 million for Ogilvy,
£123 million for AKQA and £58 million for Grey. In 2024,
the £237 million goodwill impairment primarily related to the
previous AKQA Group CGU.
After their separation, AKQA and Grey were tested separately for
impairment at 30 June 2025. Grey was then integrated and assessed
as part of the wider Ogilvy CGU in the second half of 2025. AKQA
remains a separate CGU.
The £393 million impairment to the Ogilvy CGU, including Grey,
recognised in the second half of 2025 reflects weaker trading
performance compared with prior expectations. The downturn in
trading was caused by macroeconomic pressures and uncertainty,
partly driven by the introduction of new global tariffs during the
year that weighed on client spending. The second half of 2025 saw a
more severe than previously anticipated decline in client
discretionary spend which impacted project win rates and the level
of net new business.
The factors described above also led to an impairment of £123
million of the AKQA CGU, of which £58 million was recognised
in the first half of 2025. The incremental £65 million
recognised in the second half of 2025 reflected a further
continuation of these factors along with a specific global client
loss.
The recoverable amounts of the Ogilvy and AKQA CGUs, both of which
are within the Global Integrated Agencies reportable segment, are
£948 million and £111 million, respectively. These
recoverable amounts were calculated on a fair value less costs of
disposal (FVLCD) basis, determined using a discounted cash flow
approach with future cash flows based upon a projection period of
five years. Cash flows beyond the projection period are based on a
long-term growth rate of 2.0% (2024: 2.0%). Post-tax discount rates
of 11.75% (2024: 10.5%) and 10.75% (2024: 10.5%), were applied to
determine the Ogilvy and AKQA recoverable amounts. These key inputs
are considered Level 3 in the fair value hierarchy.
2. Costs of services and general and administrative
costs (continued)
The impairment charges for both Ogilvy and AKQA are sensitive to
changes in long-term operating margins. The charge for Ogilvy is
also sensitive to changes in revenue less pass-through costs growth
rates, discount rate and long-term growth rate. If long-term
operating margins in future periods were two percentage points
lower than current expectations, additional goodwill impairment
charges of £105 million for Ogilvy and £22 million for
AKQA would be recognised.
For Ogilvy, if revenue less pass-through costs growth rates in
future periods were reduced by one percentage point, with a
corresponding impact on operating margins being reflected, an
additional impairment charge of £54 million would be
recognised. If the Ogilvy discount rate was one percentage point
higher, an additional goodwill impairment charge of £77
million would be recognised. If the Ogilvy long-term growth rate
decreased from 2.0% to 1.0%, an additional impairment charge of
£57 million would be recognised.
Amortisation and impairment of acquired intangible
assets
Charges of £61 million (2024: £93 million) relate to
ongoing amortisation charges for previously acquired intangible
assets. The prior year charges included an accelerated amortisation
charge of £20 million for certain brands that no longer had a
useful life due to the creation of Burson.
Restructuring and transformation costs
Charges of £68 million
(2024: £251 million) include
£50 million (2024: £90 million) in relation to the
Group’s IT transformation programme, which includes the
rollout of new ERP systems, and £5 million
(2024: £144 million) of
costs related to the Group’s transformation
plans.
Property-related restructuring costs
Charges of £127 million
(2024: £26 million) include £114 million (2024: £3 million) of
impairment charges and £13 million (2024: £23
million) of on-going property costs related to property impairments
recognised in prior years as part of the Group’s property
requirements review.
The impairment charges include £86 million (2024: £2
million) in relation to property, plant and equipment and £28
million (2024: £1 million) in relation to right-of-use assets.
The impairment charges for property, plant and equipment include an
impairment recognised for land and freehold buildings following a
review of the Group’s planned usage of its property
portfolio.
Gains on disposal of investment and subsidiaries
In 2024, gains on disposal of investments and subsidiaries
of £322
million were predominantly
related to the gain on disposal of FGS Global of
£275
million.
Legal provision charges
Charges of £43 million (2024: £68 million) have been
recognised, with the provision at 31 December 2025 representing
management's best estimate of its obligation in relation to certain
on-going legal proceedings and claims that were initially
recognised in 2023.
3. Segmental analysis
Reported contributions by reportable segments were as
follows:
|
£ million
|
2025
|
2024
|
|
Revenue1,2
|
|
|
|
Global Integrated Agencies
|
11,956
|
12,661
|
|
Public Relations
|
705
|
1,156
|
|
Specialist Agencies
|
889
|
924
|
|
|
13,550
|
14,741
|
|
Revenue less pass-through
costs1,3
|
|
|
|
Global Integrated Agencies
|
8,740
|
9,452
|
|
Public Relations
|
667
|
1,089
|
|
Specialist Agencies
|
769
|
818
|
|
|
10,176
|
11,359
|
|
Headline operating
profit1,4
|
|
|
|
Global Integrated Agencies
|
1,165
|
1,491
|
|
Public Relations
|
102
|
166
|
|
Specialist Agencies
|
54
|
50
|
|
|
1,321
|
1,707
|
|
|
|
|
|
Adjusting items within IFRS operating profit5
|
(939)
|
(382)
|
|
Financing items6
|
(290)
|
(330)
|
|
Earnings from associates
|
39
|
36
|
|
Reported profit before tax
|
131
|
1,031
|
1
During
the year ended 31 December 2025, the Group reallocated a number of
businesses between Global Integrated Agencies and Specialist
Agencies, therefore changing the composition of reportable segments
reported to the Group’s Chief Operating Decision Maker. As
required by IFRS 8, the 2024 comparatives have been
restated.
2
Intersegment transactions have not
been separately disclosed as they are not
material.
3
Revenue less pass-through costs is
defined and reconciled by segment and by geographical area in
Appendix 4.
4
Headline operating profit is defined
in Appendix 4. A reconciliation from reported profit before tax to
headline operating profit is also provided in Appendix
4.
5
Adjusting items are defined and
reconciled in Appendix 4.
6
Financing items include finance and
investment income, finance costs, and revaluation and retranslation
of financial instruments.
3. Segmental analysis (continued)
Reported contributions by geographical area were as
follows:
|
£ million
|
2025
|
2024
|
|
Revenue1
|
|
|
|
North America2
|
4,966
|
5,567
|
|
United Kingdom
|
2,055
|
2,185
|
|
Western Continental Europe
|
2,891
|
3,013
|
|
Asia Pacific, Latin America, Africa & Middle East and Central
& Eastern Europe
|
3,638
|
3,976
|
|
|
13,550
|
14,741
|
|
Revenue less pass-through costs
|
|
|
|
North America2
|
3,837
|
4,394
|
|
United Kingdom
|
1,503
|
1,588
|
|
Western Continental Europe
|
2,143
|
2,375
|
|
Asia Pacific, Latin America, Africa & Middle East and Central
& Eastern Europe
|
2,693
|
3,002
|
|
|
10,176
|
11,359
|
|
Headline operating profit
|
|
|
|
North America2
|
663
|
825
|
|
United Kingdom
|
164
|
237
|
|
Western Continental Europe
|
212
|
259
|
|
Asia Pacific, Latin America, Africa & Middle East and Central
& Eastern Europe
|
282
|
386
|
|
|
1,321
|
1,707
|
|
|
|
|
|
Adjusting items within IFRS operating profit
|
(939)
|
(382)
|
|
Financing items
|
(290)
|
(330)
|
|
Earnings from associates
|
39
|
36
|
|
Reported profit before tax
|
131
|
1,031
|
1
Interregional transactions have not
been separately disclosed as they are not
material.
2
North America includes the United
States, which has revenue of £4,675 million
(2024: £5,203 million), revenue less pass-through costs of
£3,612 million (2024: £4,115 million) and headline
operating profit of £616 million (2024: £766
million).
4. Ordinary dividends
The Board has recommended a final dividend of 7.5p (2024: 24.4p)
per ordinary share in addition to the interim dividend of 7.5p
(2024: 15.0p) per ordinary share. This makes a total for the year
of 15.0p (2024: 39.4p). Payment of the final dividend of 7.5p per
ordinary share will be made on 3 July 2026 to holders of
ordinary shares in the Company on 5 June 2026.
5. (Loss)/earnings per share
(“EPS”)
Basic EPS
The calculation of basic EPS is as follows:
|
|
2025
|
2024
|
|
(Loss)/profit for the year attributable to equity holders of the
parent
(£ million)
|
(215)
|
542
|
|
Weighted average number of shares used in basic EPS calculation
(million)
|
1,076
|
1,077
|
|
EPS
|
(20.0) p
|
50.3 p
|
Diluted EPS
The calculation of diluted EPS is as follows:
|
|
2025
|
2024
|
|
(Loss)/profit for the year attributable to equity holders of the
parent
(£ million)
|
(215)
|
542
|
|
Weighted average number of shares used in diluted EPS calculation
(million)1
|
1,076
|
1,097
|
|
Diluted EPS
|
(20.0) p
|
49.4 p
|
1
The weighted average shares used in
the basic EPS calculation for 2025 has also been used for the
diluted EPS calculation due to the anti-dilutive effect of the
weighted average shares calculated for the diluted EPS
calculation.
A reconciliation between the shares used in calculating basic and
diluted EPS is as follows:
|
million
|
2025
|
2024
|
|
Weighted average number of shares used in basic EPS
calculation
|
1,076
|
1,077
|
|
Dilutive share options outstanding
|
—
|
—
|
|
Other potentially issuable shares
|
—
|
20
|
|
Weighted average number of shares used in diluted EPS
calculation
|
1,076
|
1,097
|
At 31 December 2025 there were 1,091,394,251 (2024:
1,091,394,251) ordinary shares in issue, including treasury shares
of 12,591,893 (2024: 12,591,893).
6. Analysis of cash flows
The following table analyses the net cash inflow from operating
activities presented within the cash flow statement:
Net cash inflow from operating activities:
|
£ million
|
2025
|
2024
|
|
(Loss)/profit for the year
|
(172)
|
629
|
|
Taxation
|
303
|
402
|
|
Revaluation and retranslation of financial instruments
|
16
|
50
|
|
Finance costs
|
352
|
417
|
|
Finance and investment income
|
(78)
|
(137)
|
|
Earnings from associates
|
(39)
|
(36)
|
|
Operating profit
|
382
|
1,325
|
|
Adjustments for:
|
|
|
|
Non-cash share-based incentive plans (including share
options)
|
73
|
109
|
|
Depreciation of property, plant and equipment
|
142
|
156
|
|
Depreciation of right-of-use assets
|
201
|
213
|
|
Goodwill impairment
|
641
|
237
|
|
Property-related impairment charges
|
114
|
3
|
|
Other impairment charges
|
5
|
26
|
|
Amortisation and impairment of acquired intangible
assets
|
61
|
93
|
|
Amortisation of other intangible assets
|
43
|
32
|
|
Gains on disposal of investments and subsidiaries
|
(6)
|
(322)
|
|
Gains on disposal of property, plant and equipment
|
—
|
(7)
|
|
Other transaction costs
|
—
|
10
|
|
Operating cash flow before movements in working capital and
provisions
|
1,656
|
1,875
|
|
Decrease in trade receivables and accrued income
|
307
|
309
|
|
(Decrease)/increase in trade payables
|
(390)
|
31
|
|
(Increase)/decrease in other receivables
|
(108)
|
16
|
|
Decrease in other payables
|
(110)
|
(240)
|
|
Increase in provisions
|
10
|
69
|
|
Cash generated by operations
|
1,365
|
2,060
|
|
Corporation and overseas tax paid
|
(398)
|
(392)
|
|
Interest paid on lease liabilities
|
(95)
|
(95)
|
|
Other interest and similar charges paid
|
(282)
|
(306)
|
|
Interest received
|
97
|
109
|
|
Investment income
|
13
|
11
|
|
Dividends from associates
|
45
|
31
|
|
Contingent consideration liability payments recognised in operating
activities1
|
(21)
|
(10)
|
|
Net cash inflow from operating activities
|
724
|
1,408
|
1
Contingent consideration liability
payments in excess of the amount determined at acquisition are
recorded as operating activities.
7. Cash and cash equivalents and total
borrowings
|
£ million
|
2025
|
2024
|
|
Cash and cash equivalents as presented in the consolidated balance
sheet
|
2,694
|
2,638
|
|
Bank overdrafts
|
(168)
|
(171)
|
|
Cash and cash equivalents as presented in the consolidated cash
flow statement
|
2,526
|
2,467
|
|
Current borrowings (excluding bank overdrafts)
|
(654)
|
(413)
|
|
Non-current borrowings
|
(4,114)
|
(3,744)
|
|
Total borrowings (excluding bank overdrafts)
|
(4,768)
|
(4,157)
|
The Group estimates that the fair value of corporate bonds
is
£4,595 million at
31 December 2025
(2024: £3,964 million).
8. Acquisitions
Acquisition of InfoSum
On 4 April 2025, the Group acquired 100% of the ordinary share
capital of Cognitive Logic Inc. (“InfoSum”), a data
collaboration platform.
Total cash consideration of £108 million was paid on
completion date. Total net assets acquired were £17 million,
including £32 million of proprietary technology intangible
assets. The goodwill recognised on acquisition was £91
million. The goodwill is attributable to anticipated synergies and
will not be deductible for tax purposes.
Acquisition of non-controlling interests of MAP and
Resolve
On 19 September 2025, the Group acquired the remaining 49%
shareholdings of two subsidiaries, VML MAP A/S (“MAP”)
and Resolve Aps (“Resolve”), for total consideration of
£134 million, payable in three equal annual instalments in
January 2026, 2027 and 2028.
The present value of the consideration has been recognised within
Trade and other payables, with a corresponding adjustment to equity
including the derecognition of the previous non-controlling
interests.
9. Related party transactions
The Group enters into transactions with its associate undertakings.
In the year ended 31 December 2025, revenue of £137 million
(2024: £132 million) was recognised in relation to Compas, an
associate in the USA. The following amounts were outstanding at
31 December 2025 and 31 December 2024:
|
£ million
|
2025
|
2024
|
|
Amounts owed by related parties
|
105
|
68
|
|
Amounts owed to related parties
|
(126)
|
(104)
|
There are no material provisions for doubtful debts relating to
these balances, and no material expense has been recognised in the
income statement in relation to bad or doubtful debts in 2025 or
2024.
10. Financial instruments - fair
value
The following table provides an analysis of financial instruments
that are measured subsequent to initial recognition at fair value,
grouped into levels 1 to 3 based on the degree to which the fair
value is observable or not based on observable inputs:
|
£ million
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
31 December 2025
|
|
|
|
|
|
Derivatives in designated hedge relationships
|
|
|
|
|
|
Derivative assets
|
—
|
77
|
—
|
77
|
|
Derivative liabilities
|
—
|
(3)
|
—
|
(3)
|
|
Held at fair value through profit or loss
|
|
|
|
|
|
Money market funds
|
468
|
—
|
—
|
468
|
|
Other investments
|
96
|
—
|
193
|
289
|
|
Derivative assets
|
—
|
3
|
—
|
3
|
|
Derivative liabilities
|
—
|
(2)
|
—
|
(2)
|
|
Contingent consideration liabilities
|
—
|
(27)
|
(39)
|
(66)
|
|
Held at fair value through other comprehensive income
|
|
|
|
|
|
Trade and other receivables
|
—
|
504
|
—
|
504
|
|
Other investments
|
3
|
—
|
42
|
45
|
The fair values of financial assets and liabilities are based on
quoted market prices where available. Where the market value is not
available, the Group has estimated relevant fair values on the
basis of available information from outside sources.
For all level 3 fair value measurements, a change to one or more of
these unobservable inputs to reflect a reasonably possible
alternative assumption would not result in a significant change to
the fair value.
Reconciliation of level 3 fair value measurements:
|
£ million
|
Contingent consideration liabilities
|
Other investments
|
|
1 January 2025
|
(133)
|
322
|
|
Gains/(losses) recognised in the income statement
|
1
|
(21)
|
|
Losses recognised in other comprehensive income
|
—
|
(54)
|
|
Exchange adjustments
|
1
|
(15)
|
|
Transfers
|
27
|
(6)
|
|
Additions
|
—
|
9
|
|
Settlements
|
65
|
—
|
|
31 December 2025
|
(39)
|
235
|
11. Events after the reporting
period
On 6 January 2026, WPP acquired 100% of the issued shares in
Barrows North America Inc. (“Barrows”) from an
associate of the Group, Retail Capital Holdings Ltd
(“RCH”), for net consideration of £57 million. The
Group continues to hold a 35% investment in RCH and in January
2026, WPP received a special dividend of £19 million from RCH
following the Barrows transaction.
Appendix 2: Principal risks and uncertainties
The Board regularly reviews the principal and emerging risks and
uncertainties affecting the Group and these are summarised
below:
Strategic and External Risks
Economic Risk
●
Adverse
economic conditions, including those caused by conflicts, severe
and sustained inflation and currency volatility in key markets
where the Group operates, tariffs and other trade barriers, supply
chain issues including around resilience affecting the distribution
of clients’ products and/or disruption in credit markets,
pose a risk the Group’s clients may reduce, suspend or cancel
spend or be unable to satisfy obligations.
Geopolitical Risk
●
Growing
geopolitical tension and conflicts continue to have a destabilising
effect in the Group’s markets and across geographical
regions. Alongside an adverse effect upon the economic outlook,
there is a general erosion of trust in institutions and - in
relation to global cooperation and integration – an
increasing political focus both on national interests and regional
convergence. Such factors and economic conditions may be reflected
in the Group’s clients’ confidence in making
longer-term investments and commitments in marketing
spend.
Strategic Plan
●
The
failure to successfully execute the strategic plan published in
February 2026 to restore growth, simplify and integrate the
Group’s client proposition and drive long-term value,
including the failure to simplify the Group’s operating model
and strengthen execution as well as transform the Group’s
go-to-market. Failure also to unlock the target cost savings which
will enable a reallocation of investment to the growth building
blocks and implementation of the updated approach to capital
allocation, both of which underpin the strategic plan.
Artificial Intelligence
●
WPP
Open is the Group’s AI-driven system for marketing
transformation – it brings together, through proprietary AI
models created within the Group, diverse datasets across media,
performance, client and industry insights, it offers intelligent
workflow and operations in a centralised workspace, it augments
creative and strategic capabilities in an enterprise-level
generative AI studio and it integrates, through WPP Open
Intelligence (WPP Open’s advanced AI-powered data layer,
driven by Infosum’s cross-cloud technology) and WPP’s
technology partnerships, third-party technologies and first-party
data to provide an industry solution.
●
Failure
to optimise, deploy and engage clients in the suite of products
offered by WPP Open, may impact the overall operation of the
business.
●
The
Group may incur costs when ensuring it can comply with the
introduction of AI laws and regulations, including the EU AI Act.
This would be through review of IT systems and processes, which may
require refinement or amendment, to ensure regulation can be
adhered to.
●
IP
laws and in particular the analysis of copyright infringement is
evolving in generative AI specifically. Where AI is used in client
deliverables, IP infringement risk, in particular copyright
infringement risk, must be assessed in the context of the
underlying data sets used in the creation of client
work.
●
The
use of AI agents within the Group’s operations, particularly
in client-facing or decision-making roles, introduces risks related
to unintended or erroneous outputs, lack of transparency in their
decision-making processes, or potential for misuse if
compromised.
IT and Systems
●
The
Group continues to undertake a series of IT programmes devised to
prioritise the most critical changes necessary to support the
Group’s strategic plan while maintaining the operational
performance and security of core systems. The Group is reliant on
third parties for the performance of a significant portion of
worldwide information technology and operations functions. Failures
or delays in providing these functions could have an adverse effect
on the Group’s business.
Operational Risks
Client Loss
●
The
Group competes for clients in a highly competitive industry which
is continuously evolving and undergoing structural change and
advancements in AI, data and technology. Client net loss to
competitors or as a consequence of client consolidation, insolvency
or a reduction in marketing budgets due to a geopolitical change or
shift in client spending could have a material adverse effect on
the Group’s market share, business, revenues, results of
operations, financial condition and prospects.
Client Concentration
●
The
Group receives a significant portion of its revenues from a limited
number of large clients and the net loss of one or more of these
clients or of a major assignment with them could have a material
adverse effect on the Group’s prospects, business, financial
condition and results of operations.
People, Culture and Succession
●
The
Group’s performance could be adversely affected if the Group:
does not react quickly enough to changes in markets; fails to
attract and develop key media, creative, production and management
talent; is unable to retain and incentivise key talent; or is
unable to adapt to new ways of working including through an updated
workforce to respond to, for example, the incorporation into team
architecture and management of intelligent systems and capabilities
and accountabilities required for that.
Cyber and Information Security
●
The
Group has in the past and may in the future experience a cyber
attack that leads to harm or disruption to operations, systems or
services. This risk is likely to increase as the prevalence and
sophistication of generative AI means there is potential for both
human and AI generated attacks. Attackers are increasingly
leveraging artificial intelligence and agentic systems to automate
and scale their offensive capabilities, leading to the deployment
of more sophisticated, evasive, and rapidly evolving cyber threats.
Such an attack may also affect suppliers and partners through the
unauthorised access to, or manipulation, corruption or destruction
of, data.
Credit Risk
●
The
Group is subject to credit risk through the default of a client or
other counterparty.
●
Challenging
economic conditions, heightened geopolitical issues, shocks to
consumer confidence, disruption in credit markets and challenges in
the supply chain disrupting the Group’s clients operations
can lead to a worsening of the financial strength and outlook for
the Group’s clients who may reduce, suspend or cancel spend
with the Group, request extended payment terms beyond 60 days or be
unable to satisfy obligations.
Internal Financial Controls
●
The
Group’s performance could be adversely impacted if we fail to
ensure adequate internal control procedures are in
place.
●
If
material weaknesses are identified, they could adversely affect the
Group’s results of operations, investor confidence in the
Group and the market price of ADRs and ordinary
shares.
Compliance Risks
Data Privacy
●
The
Group is subject to strict data protection and privacy legislation
in the jurisdictions in which it operates and relies extensively on
information technology systems. The use of AI, while offering
significant benefits, introduces specific data privacy risks
related to data collection, model training and automated
decision-making. The Group stores, transmits and relies on critical
and sensitive data such as strategic plans, personally identifiable
information and trade secrets. Security of this type of data is
exposed to escalating external threats that are increasing in
sophistication as well as internal breaches. In addition, data
transfers between the Group’s global operating companies,
clients or vendors may be interrupted due to changes in law (for
example, EU adequacy decisions, CJEU Schrems II
decision).
Regulatory, Sanctions, Anti-Trust and Taxation
●
The
Group’s tax change could be adversely impacted by new tax
rules, changes to the application of existing rules or higher tax
rates. The global tax environment remains highly complex and
subject to frequent regulatory changes and evolving
interpretations. These dynamics present inherent compliance
risks.
●
The
Group is subject to strict anti-corruption, anti-bribery, and
anti-fraud and anti-trust legislation and enforcement in the
countries in which the Group operates. Failure to comply or to
create a culture opposed to fraud, bribery and corruption or
failure to instil business practices that that prevent both human
and AI-generated fraud and corruption could expose us to civil and
criminal sanctions and negatively impact the Group’s
reputation or financial condition.
●
The
Group is subject to the laws of the United States, the EU, the UK
and other jurisdictions that impose sanctions and regulate the
supply of services to certain countries. Failure to comply which
these laws could expose the Group to civil and criminal penalties
and the imposition of economic sanctions against the Group and
reputational damage and withdrawal of banking facilities which
could materially impact results.
Environmental, Social & Governance (ESG)
●
The
Group’s operations could be disrupted by an increased
frequency of extreme weather and climate related natural
disasters.
●
The
Group could be subject to increased costs to comply with the
potential future changes in ESG law and regulations. This includes
the EU Corporate Sustainability Reporting Directive (CSRD) and the
IFRS Sustainability Standards.
●
A
failure to manage the complexity in carbon emission accounting for
marketing or to consider Scope 3 emissions in new technology and
business model innovation across the supply chain could have an
adverse effect on the Group’s business and
reputation.
●
The
Group is susceptible to increased reputational risk associated with
working on client briefs perceived to be environmentally
detrimental and/or misrepresenting environmental
claims.
Appendix 3: Cautionary statement regarding forward-looking
statements
This document contains statements that are, or may be deemed to be,
“forward-looking statements”. Forward-looking
statements give the Company’s current expectations or
forecasts of future events.
These forward-looking statements may include, among other things,
plans, objectives, beliefs, intentions, strategies, projections and
anticipated future economic performance based on assumptions and
the like that are subject to risks and uncertainties. These
statements can be identified by the fact that they do not relate
strictly to historical or current facts. They use words such as
‘aim’, ‘anticipate’, ‘believe’,
‘estimate’, ‘expect’,
‘forecast’, ‘guidance’,
‘intend’, ‘may’, ‘will’,
‘should’, ‘potential’,
‘possible’, ‘predict’,
‘project’, ‘plan’, ‘target’,
and other words and similar references to future periods but are
not the exclusive means of identifying such statements. As such,
all forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances that are beyond the
control of the Company. Actual results or outcomes may differ
materially from those discussed or implied in the forward-looking
statements. Therefore, you should not rely on such forward-looking
statements, which speak only as of the date they are made, as a
prediction of actual results or otherwise. Important factors which
may cause actual results to differ include but are not limited to:
the unanticipated loss of a material client or key personnel;
delays, suspensions or reductions in client advertising budgets;
shifts in industry rates of compensation; regulatory compliance
costs or litigation; changes in competitive factors in the
industries in which we operate and demand for the Group’s
products and services; changes in client advertising, marketing and
corporate communications requirements; the Group’s inability
to realise the future anticipated benefits of acquisitions; failure
to realise the Group’s assumptions regarding goodwill and
indefinite lived intangible assets; natural disasters or acts of
terrorism; the Company’s ability to attract new clients; the
economic and geopolitical impact of conflicts; the risk of global
economic downturn; slower growth, increasing interest rates and
high and sustained inflation; tariffs and other trade barriers;
supply chain issues affecting the distribution of the Group’s
clients’ products; technological changes and risks to the
security of IT and operational infrastructure, systems, data and
information resulting from increased threat of cyber and other
attacks; effectively managing the risks, challenges and
efficiencies presented by using Artificial Intelligence (AI) and
Generative AI technologies and partnerships in the Group’s
business; risks related to the Group’s environmental, social
and governance goals and initiatives, including impacts from
regulators and other stakeholders, and the impact of factors
outside of the Group’s control on such goals and initiatives;
the Company’s exposure to changes in the values of other
major currencies (because a substantial portion of its revenues are
derived and costs incurred outside of the UK); and the overall
level of economic activity in the Company’s major markets
(which varies depending on, among other things, regional, national
and international political and economic conditions and government
regulations in the world’s advertising markets). In addition,
you should consider the risks described in Item 3D, captioned
‘Risk Factors’ in the Company’s most recent
Annual Report on Form 20-F, which could also cause actual results
to differ from forward-looking information. Neither the Company,
nor any of its directors, officers or employees, provides any
representation, assurance or guarantee that the occurrence of any
events anticipated, expressed or implied in any forward-looking
statements will actually occur. Accordingly, no assurance can be
given that any particular expectation will be met and investors are
cautioned not to place undue reliance on the forward-looking
statements.
Other than in accordance with its legal or regulatory obligations
(including under the Market Abuse Regulation, the UK Listing Rules
and the Disclosure and Transparency Rules of the Financial Conduct
Authority), the Company undertakes no obligation to update or
revise any such forward-looking statements, whether as a result of
new information, future events or otherwise.
Any forward-looking statements made by or on behalf of the Group
speak only as of the date they are made and are based upon the
knowledge and information available to the Directors at the
time.
Appendix 4: Reconciliation to Non-GAAP measures of
performance
The Group presents alternative performance measures, including
headline operating profit, headline operating profit margin,
headline profit before interest and tax, headline profit before
tax, headline earnings, headline basic and diluted EPS, headline
EBITDA, revenue less pass-through costs, adjusted net debt and
average adjusted net debt, adjusted operating cash flow, adjusted
free cash flow and adjusted net cash flow. These are used by
management for internal performance analyses. The presentation of
these measures facilitates comparability with other companies,
although management’s measures may not be calculated in the
same way as similarly titled measures reported by other companies;
and these measures are useful in connection with discussions with
the investment community.
In the calculation of headline measures, judgement is required by
management in determining which items are considered to be large,
unusual and non-recurring such that they are to be
excluded.
The exclusion of certain adjusting items may result in headline
measures being materially higher or lower than reported earnings,
for example when significant impairments or restructuring charges
are excluded but the related benefits are included within headline
measures. Headline measures should not be considered in isolation
as they provide additional information to aid the understanding of
the Group’s financial performance.
Reconciliation of revenue to revenue less pass-through
costs:
|
£ million
|
2025
|
2024
|
|
Revenue
|
13,550
|
14,741
|
|
Media pass-through costs
|
(2,543)
|
(2,523)
|
|
Other pass-through costs
|
(831)
|
(859)
|
|
Revenue less pass-through costs
|
10,176
|
11,359
|
Reconciliation of revenue to revenue less pass-through costs by
reportable segment:
Year ended 31 December 2025
|
£ million
|
Global Integrated Agencies
|
Public Relations
|
Specialist Agencies
|
|
Revenue
|
11,956
|
705
|
889
|
|
Media pass-through costs
|
(2,543)
|
—
|
—
|
|
Other pass-through costs
|
(673)
|
(38)
|
(120)
|
|
Revenue less pass-through costs
|
8,740
|
667
|
769
|
Year ended 31 December 2024
|
£ million
|
Global Integrated Agencies
|
Public Relations
|
Specialist Agencies
|
|
Revenue
|
12,661
|
1,156
|
924
|
|
Media pass-through costs
|
(2,523)
|
—
|
—
|
|
Other pass-through costs
|
(686)
|
(67)
|
(106)
|
|
Revenue less pass-through costs
|
9,452
|
1,089
|
818
|
Reconciliation of revenue to revenue less pass-through costs by
geographical area:
|
£ million
|
2025
|
2024
|
|
North America
|
|
|
|
Revenue
|
4,966
|
5,567
|
|
Media pass-through costs
|
(796)
|
(823)
|
|
Other pass-through costs
|
(333)
|
(350)
|
|
Revenue less pass-through costs
|
3,837
|
4,394
|
|
|
|
|
|
United Kingdom
|
|
|
|
Revenue
|
2,055
|
2,185
|
|
Media pass-through costs
|
(390)
|
(406)
|
|
Other pass-through costs
|
(162)
|
(191)
|
|
Revenue less pass-through costs
|
1,503
|
1,588
|
|
|
|
|
|
Western Continental Europe
|
|
|
|
Revenue
|
2,891
|
3,013
|
|
Media pass-through costs
|
(565)
|
(507)
|
|
Other pass-through costs
|
(183)
|
(131)
|
|
Revenue less pass-through costs
|
2,143
|
2,375
|
|
|
|
|
|
Asia Pacific, Latin America, Africa & Middle East and Central
& Eastern Europe
|
||
|
Revenue
|
3,638
|
3,976
|
|
Media pass-through costs
|
(791)
|
(787)
|
|
Other pass-through costs
|
(154)
|
(187)
|
|
Revenue less pass-through costs
|
2,693
|
3,002
|
Reconciliation of profit before taxation to headline operating
profit and headline PBIT:
|
£ million
|
2025
|
Margin
|
2024
|
Margin
|
|
Profit before taxation
|
131
|
|
1,031
|
|
|
Finance and investment income
|
(78)
|
|
(137)
|
|
|
Finance costs
|
352
|
|
417
|
|
|
Revaluation and retranslation of financial instruments
|
16
|
|
50
|
|
|
Profit before interest and taxation
|
421
|
|
1,361
|
|
|
Earnings from associates
|
(39)
|
|
(36)
|
|
|
Operating profit1
|
382
|
2.8 %
|
1,325
|
9.0 %
|
|
Goodwill impairment
|
641
|
|
237
|
|
|
Amortisation and impairment of acquired intangible
assets
|
61
|
|
93
|
|
|
Other impairment charges
|
5
|
|
26
|
|
|
Restructuring and transformation costs
|
68
|
|
251
|
|
|
Property-related restructuring costs
|
127
|
|
26
|
|
|
Gains on disposal of investments and subsidiaries
|
(6)
|
|
(322)
|
|
|
Gains on disposal of property
|
—
|
|
(7)
|
|
|
Other transaction costs
|
—
|
|
10
|
|
|
Legal provision charges
|
43
|
|
68
|
|
|
Headline operating
profit1
|
1,321
|
13.0 %
|
1,707
|
15.0 %
|
|
Earnings from associates
|
39
|
|
36
|
|
|
Share of adjusting and other items for associates
|
—
|
|
4
|
|
|
Headline PBIT
|
1,360
|
|
1,747
|
|
1
Operating profit margin is calculated
as operating profit as a percentage of revenue. Headline operating
profit margin is calculated as headline operating profit as a
percentage of revenue less pass-through costs.
Calculation of headline net finance costs:
|
£ million
|
2025
|
2024
|
|
Finance and investment income
|
(78)
|
(137)
|
|
Finance costs
|
352
|
417
|
|
Headline net finance costs
|
274
|
280
|
Headline operating profit margin before and after earnings from
associates:
|
£ million
|
2025
|
Margin
|
2024
|
Margin
|
|
Revenue less pass-through costs
|
10,176
|
|
11,359
|
|
|
Headline operating profit
|
1,321
|
13.0 %
|
1,707
|
15.0 %
|
|
Headline earnings from associates
|
39
|
|
40
|
|
|
Headline PBIT
|
1,360
|
13.4 %
|
1,747
|
15.4 %
|
Calculation of headline EBITDA:
|
£ million
|
2025
|
2024
|
|
Headline PBIT
|
1,360
|
1,747
|
|
Depreciation of property, plant and equipment
|
142
|
156
|
|
Amortisation of other intangible assets
|
43
|
32
|
|
Headline EBITDA (including depreciation of right-of-use
assets)
|
1,545
|
1,935
|
|
Depreciation of right-of-use assets
|
201
|
213
|
|
Headline EBITDA
|
1,746
|
2,148
|
Headline EBITDA (including depreciation of right-of-use assets) is
used in the Group’s key leverage metric (average adjusted net
debt/headline EBITDA).
Reconciliation of profit before taxation to headline PBT and
headline earnings:
|
£ million
|
2025
|
2024
|
|
Profit before taxation
|
131
|
1,031
|
|
Goodwill impairment
|
641
|
237
|
|
Amortisation and impairment of acquired intangible
assets
|
61
|
93
|
|
Other impairment charges
|
5
|
26
|
|
Restructuring and transformation costs
|
68
|
251
|
|
Property-related restructuring costs
|
127
|
26
|
|
Gains on disposal of investments and subsidiaries
|
(6)
|
(322)
|
|
Gains on disposal of property
|
—
|
(7)
|
|
Other transaction costs
|
—
|
10
|
|
Legal provision charges/(gains)
|
43
|
68
|
|
Share of adjusting and other items for associates
|
—
|
4
|
|
Revaluation and retranslation of financial instruments
|
16
|
50
|
|
Headline PBT
|
1,086
|
1,467
|
|
Headline tax charge
|
(348)
|
(411)
|
|
Non-controlling interests
|
(43)
|
(87)
|
|
Headline earnings
|
695
|
969
|
Headline PBT and headline earnings are metrics that management use
to assess the performance of the business.
Calculation of headline taxation:
|
£ million
|
2025
|
2024
|
|
Headline PBT
|
1,086
|
1,467
|
|
Tax charge
|
303
|
402
|
|
Tax credit relating to restructuring and transformation costs and
property-related costs
|
46
|
58
|
|
Tax charge relating to gains on disposal of investments and
subsidiaries
|
(8)
|
(85)
|
|
Tax charge relating to gains on disposal of investments and
subsidiaries in prior periods
|
(8)
|
—
|
|
Deferred
tax impact of the amortisation of acquisition related intangible
assets and liabilities
|
9
|
32
|
|
Deferred tax relating to investments in associates
|
6
|
6
|
|
Tax charge relating to gains on disposal of property
|
—
|
(2)
|
|
Headline tax charge
|
348
|
411
|
|
Headline tax rate
|
32.0 %
|
28.0 %
|
The headline tax rate as a percentage of headline PBT (that
includes the share of headline results of associates) is 32.0%
(2024: 28.0%).
Earnings from associates:
Management reviews the 'earnings from associates’ by
assessing the underlying component movements including 'share of
profit before interest and taxation of associates', 'share of
adjusting and other items for associates', 'share of interest and
non-controlling interests of associates', and 'share of taxation of
associates', which are derived from the income statements of the
associate undertakings. Management applies consistent principles in
determining items adjusted from headline profit as with
subsidiaries.
The following table is an analysis of 'earnings from
associates’ and underlying component movements:
|
£ million
|
2025
|
2024
|
|
Share of profit before interest and taxation
|
46
|
43
|
|
Share of adjusting and other items for associates
|
—
|
(4)
|
|
Share of interest and non-controlling interests
|
6
|
10
|
|
Share of taxation
|
(13)
|
(13)
|
|
Earnings from associates
|
39
|
36
|
|
Less: share of adjusting and other items for
associates
|
—
|
4
|
|
Headline earnings from associates
|
39
|
40
|
Headline earnings per share:
The calculation of basic headline EPS is as follows:
|
|
2025
|
2024
|
|
Headline earnings (£ million)
|
695
|
969
|
|
Weighted average number of shares used in basic EPS calculation
(million) (note 5)
|
1,076
|
1,077
|
|
Basic headline EPS
|
64.6 p
|
89.9 p
|
Headline earnings per share (continued):
The calculation of diluted headline EPS is as follows:
|
|
2025
|
2024
|
|
Headline earnings (£ million)
|
695
|
969
|
|
Weighted average number of shares used in diluted EPS calculation
(million)
|
1,099
|
1,097
|
|
Diluted headline EPS
|
63.2 p
|
88.3 p
|
A reconciliation between the shares used in calculating basic and
diluted EPS is as follows:
|
million
|
2025
|
2024
|
|
Weighted average number of shares used in basic EPS calculation
(note 5)
|
1,076
|
1,077
|
|
Dilutive share options outstanding
|
3
|
—
|
|
Other potentially issuable shares
|
20
|
20
|
|
Weighted average number of shares used in headline diluted EPS
calculation1
|
1,099
|
1,097
|
1
The weighted average number of shares
used in diluted EPS is different for headline EPS compared to
reported EPS due to a headline profit versus a reported
loss.
Adjusted net debt and average adjusted net debt:
Management believes that adjusted net debt and average adjusted net
debt are appropriate and meaningful measures of the debt levels
within the Group. Adjusted net debt is defined as cash and cash
equivalents, bank overdrafts, current and non-current borrowings,
derivative financial instruments hedging debt items, and excludes
lease liabilities, contingent consideration and deferred
consideration liabilities in respect of the Group’s
mergers and acquisitions activities. Average adjusted net debt
represents the rolling 12‑month average of the Group’s
monthly adjusted net debt balances.
The definition of adjusted net debt and average adjusted net debt
have been updated to include the impact of derivative financial
instruments that hedge debt items as management believes this
provides a more accurate representation of the adjusted net debt
levels of the Group. Prior year comparatives and related metrics
(i.e. the average adjusted net debt to headline EBITDA ratio) have
been re-presented for this new definition.
Average adjusted net debt represents the rolling 12‑month
average of the Group’s monthly adjusted net debt balances for
the twelve month period ended 31 December 2025 and 31 December 2024
respectively.
|
£ million
|
2025
|
2024
|
|
Cash and cash equivalents
|
2,694
|
2,638
|
|
Current borrowings
|
(822)
|
(584)
|
|
Non-current borrowings
|
(4,114)
|
(3,744)
|
|
Derivative financial instruments
|
75
|
(52)
|
|
Adjusted net debt1
|
(2,167)
|
(1,742)
|
|
Average adjusted net
debt1
|
(3,404)
|
(3,506)
|
Average adjusted net debt to headline EBITDA ratio:
|
£ million
|
2025
|
2024
|
|
Average adjusted net debt (12 month rolling)1
|
(3,404)
|
(3,506)
|
|
Headline EBITDA (including depreciation of right-of-use
assets)
(12 month rolling)
|
1,545
|
1,935
|
|
Average adjusted net debt to headline
EBITDA ratio1
|
(2.2x)
|
(1.8x)
|
1 Prior year comparatives have
been re-presented in accordance with the updated adjusted net debt
definition.
The average adjusted net debt and headline EBITDA
(including depreciation of
right-of-use assets) amounts used in the
average adjusted net debt to headline EBITDA (including depreciation of right-of-use assets)
ratio calculation above
are for the 12 months ended 31 December 2025 and 31 December
2024.
Reconciliation of adjusted cash flow
measures:
The Group bases its internal cash flow objectives on adjusted
operating cash flow, adjusted operating
cash flow before working capital, adjusted free cash flow and
adjusted net cash flow.
Reconciliation of adjusted operating cash flow, adjusted free cash
flow and adjusted net cash flow:
|
£ million
|
2025
|
2024
|
|
Net cash inflow from operating activities
|
724
|
1,408
|
|
Corporation and overseas tax paid
|
398
|
392
|
|
Interest paid on lease liabilities
|
95
|
95
|
|
Other interest and similar charges paid
|
282
|
306
|
|
Interest received
|
(97)
|
(109)
|
|
Investment income
|
(13)
|
(11)
|
|
Dividends from associates
|
(45)
|
(31)
|
|
Contingent consideration liability payments recognised in operating
activities
|
21
|
10
|
|
Cash generated by operations
|
1,365
|
2,060
|
|
Purchase of property, plant and equipment
|
(91)
|
(189)
|
|
Purchase of intangible assets
|
(95)
|
(47)
|
|
Repayment of lease liabilities
|
(242)
|
(282)
|
|
Interest paid on lease liabilities
|
(95)
|
(95)
|
|
Investment income
|
13
|
11
|
|
Share option proceeds
|
—
|
2
|
|
Adjusted operating cash flow
|
855
|
1,460
|
|
Corporation and overseas tax paid
|
(398)
|
(392)
|
|
Other interest and similar charges paid
|
(282)
|
(306)
|
|
Interest received
|
97
|
109
|
|
Dividends from associates
|
45
|
31
|
|
Contingent consideration liability payments
|
(65)
|
(97)
|
|
Dividends paid to non-controlling interests in subsidiary
undertakings
|
(50)
|
(67)
|
|
Adjusted free cash flow
|
202
|
738
|
|
Net disposal proceeds
|
22
|
667
|
|
Net initial acquisition payments
|
(147)
|
(153)
|
|
Dividends
|
(343)
|
(425)
|
|
Share purchases
|
(97)
|
(82)
|
|
Adjusted net cash flow
|
(363)
|
745
|
Reconciliation of adjusted operating cash flow before working
capital:
|
£ million
|
2025
|
2024
|
|
Adjusted operating cash flow
|
855
|
1,460
|
|
Less movements in working capital and provisions:
|
|
|
|
Decrease in trade receivables and accrued income
|
(307)
|
(309)
|
|
Decrease/(increase) in trade payables
|
390
|
(31)
|
|
Increase/(decrease) in other receivables
|
108
|
(16)
|
|
Decrease in other payables
|
110
|
240
|
|
Increase in provisions
|
(10)
|
(69)
|
|
Add back non-headline movements in working capital and
provisions:
|
|
|
|
Legal provision charges
|
43
|
68
|
|
Adjusted operating cash flow before working capital
|
1,189
|
1,343
|
Management believes adjusted operating cash flow is an appropriate
performance target, as it can be translated into targets for
operating business units that do not have direct control of items
affecting adjusted free cash flow, such as the Group effective tax
rate and leverage. It is meaningful to investors as a measure of
the degree to which headline operating profit is converted into
cash after the cost of leased operating assets, investment in
capital expenditure, and working capital.
Adjusted operating cash flow before working capital is meaningful
to investors because it excludes working capital movements which
can fluctuate around period ends.
Adjusted free cash flow is meaningful to investors because it is
the measure of the Group’s funds available for
acquisition-related payments, dividends to shareholders, share
repurchases and debt repayment. The purpose of presenting adjusted
free cash flow is to indicate the ongoing cash generation within
the control of the Group after taking account of the necessary cash
expenditures of maintaining the capital and operating structure of
the Group (in the form of payments of interest, corporate taxation,
and capital expenditure). This computation may not be comparable to
that of similarly titled measures presented by other
companies.
Adjusted net cash flow is meaningful to investors because it is the
measure of the Group’s funds available for debt repayment or
to increase cash on hand after acquisition related payments,
dividends to shareholders and share repurchases. The purpose of
presenting adjusted net cash flow is to indicate the ongoing cash
generation within the control of the Group after taking account of
the necessary cash expenditures of maintaining the capital and
operating structure of the Group (in the form of payments of
interest, corporate taxation, and capital expenditure) and after
acquisitions, dividend payments to shareholders and share
repurchases.
Constant currency and ‘like-for-like’
These preliminary consolidated financial statements are presented
in pounds sterling. However, the Group’s significant
international operations give rise to fluctuations in foreign
exchange rates.
To neutralise foreign exchange impact and illustrate the underlying
change in revenue and profit from one year to the next, the Group
presents results in both reportable currency (local currency
results translated into pounds sterling at the prevailing foreign
exchange rate) and constant currency.
Management also believes that discussing like-for-like contributes
to the understanding of the Group’s performance and trends
because it allows for meaningful comparisons of the current year to
that of prior years.
Further details of the constant currency and like-for-like methods
are given in the Glossary.
Constant currency and ‘like-for-like’
(continued)
The following tables reconciles reported revenue growth for the
three months and year ended 31 December 2025 and 2024, including
like-for-like revenue growth for the same period:
|
£ million
|
|
|
|
Revenue
|
|
|
|
2024 reported
|
14,741
|
|
|
Impact of exchange rate changes
|
(266)
|
(1.8%)
|
|
Impact of acquisitions and disposals
|
(402)
|
(2.7%)
|
|
Like-for-like growth
|
(523)
|
(3.6%)
|
|
2025 reported
|
13,550
|
(8.1%)
|
|
£ million
|
|
|
|
Revenue
|
|
|
|
Three months ended 31 December 2024 reported (Q4)
|
3,956
|
|
|
Impact of exchange rate changes
|
(34)
|
(0.9%)
|
|
Impact of acquisitions and disposals
|
(74)
|
(1.9%)
|
|
Like-for-like growth
|
(220)
|
(5.5%)
|
|
Three months ended 31 December 2025 reported (Q4)
|
3,628
|
(8.3%)
|
The following table reconciles reported revenue less pass-through
costs growth for the three months and year ended 31 December 2025
and 2024, including like-for-like revenue less pass-through costs
growth for the same period:
|
£ million
|
|
|
|
Revenue less pass-through costs
|
|
|
|
2024 reported
|
11,359
|
|
|
Impact of exchange rate changes
|
(199)
|
(1.7%)
|
|
Impact of acquisitions and disposals
|
(372)
|
(3.3%)
|
|
Like-for-like growth
|
(612)
|
(5.4%)
|
|
2025 reported
|
10,176
|
(10.4%)
|
|
£ million
|
|
|
|
Revenue less pass-through costs
|
|
|
|
Three months ended 31 December 2024 reported (Q4)
|
2,994
|
|
|
Impact of exchange rate changes
|
(19)
|
(0.6%)
|
|
Impact of acquisitions and disposals
|
(78)
|
(2.6%)
|
|
Like-for-like growth
|
(206)
|
(6.9%)
|
|
Three months ended 31 December 2025 reported
(Q4)
|
2,691
|
(10.1%)
|
The following table reconciles headline operating profit growth for
the year ended 31 December 2025 and 2024, including like-for-like
headline operating profit growth for the same period:
|
£ million
|
Margin
|
|
|
|
Headline operating profit
|
|
|
|
|
2024 reported
|
15.0 %
|
1,707
|
|
|
Impact of exchange rate changes
|
|
(29)
|
(1.7%)
|
|
Impact of acquisitions and disposals
|
|
(65)
|
(3.8%)
|
|
Like-for-like growth
|
|
(292)
|
(17.1%)
|
|
2025 reported
|
13.0 %
|
1,321
|
(22.6%)
|
Glossary
Adjusted free cash flow
Adjusted free cash flow is calculated as cash used in/generated by
operations plus dividends received from associates, interest
received, investment income received, and share option proceeds,
less corporation and overseas tax paid, interest and similar
charges paid, dividends paid to non-controlling interests in
subsidiary undertakings, repayment of lease liabilities, interest
paid on lease liabilities, contingent consideration liability
payments and purchases of property, plant and equipment and
purchases of intangible assets.
Adjusted net cash flow
Adjusted net cash flow is calculated as adjusted free cash flow (as
defined above) plus disposal proceeds, less net initial acquisition
payments, dividends and share purchases.
Adjusted net debt and average adjusted net debt
Adjusted net debt consists of cash and cash equivalents, bank
overdrafts, current and non-current borrowings, derivative
financial instruments hedging debt, and excludes lease liabilities,
contingent consideration and deferred consideration liabilities in
respect of the Group’s mergers and acquisitions
activities. Average adjusted net debt represents the rolling 12
month average of the Group’s monthly adjusted net debt
balances.
Adjusted operating cash flow
Adjusted operating cash flow is calculated as cash used
in/generated by operations plus investment income received, and
share option proceeds, less repayment of lease liabilities,
interest paid on lease liabilities, and purchases of property,
plant and equipment and purchases of intangible
assets.
Adjusted operating cash flow before working capital
Adjusted operating cash flow before movement in trade receivables
and accrued income, trade payables, other receivables, other
payables and provisions.
Adjusting items
Adjusting items include gains/losses on disposal of investments and
subsidiaries, gains/losses on disposal of property, goodwill
impairment, other impairment charges, impairment of investments in
associates, amortisation and impairment of acquired intangible
assets, restructuring and transformation costs, property-related
restructuring costs, other transaction costs, legal provision
charges/gains, revaluation and retranslation of financial
instruments and share of adjusting and other items for
associates.
Billings
Billings comprise the gross amounts billed to clients in respect of
commission-based/fee-based income together with the total of other
fees earned.
Constant currency
The Group uses US dollar-based, constant currency models to measure
performance across all jurisdictions. These are calculated by
applying budgeted 2025 exchange rates to local currency reported
results for the current and prior year, which excludes any
variances attributable to foreign exchange rate
movements.
Establishment costs
Establishment costs are costs directly related to the occupancy of
the buildings utilised by WPP. These include the depreciation of
right of use assets and leasehold improvements; and the costs of
property taxes, utilities, maintenance and facilities management
amongst others.
General and administrative costs
General and administrative costs include marketing costs, certain
professional fees, and an allocation of other costs, including
staff and establishment costs (defined above), based on the
function of employees within the Group.
Headline costs
Headline costs comprise costs of services and general
administrative costs excluding gains/losses on disposal of
investments and subsidiaries, gains/losses on disposal of property,
goodwill impairment, other impairment charges, impairment of
investments in associates, amortisation and impairment of acquired
intangible assets, restructuring and transformation costs,
property-related restructuring costs, other transaction costs,
legal provision charges/gains, revaluation and retranslation of
financial instruments and share of adjusting and other items for
associates.
Headline earnings
Headline PBT less headline tax charge and headline non-controlling
interests.
Headline earnings from associates
Earnings from associates, excluding share of adjusting and other
items for associates.
Headline EBITDA
Profit before finance income/costs and revaluation and
retranslation of financial instruments, taxation, gains/losses on
disposal of investments and subsidiaries, gains/losses on disposal
of property, goodwill impairment, impairment of investments in
associates, amortisation and impairment of acquired intangible
assets, restructuring and transformation costs, property-related
restructuring costs, legal provision charges/gains and share of
adjusting and other items for associates.
Headline net finance costs
Net finance costs (as defined below) excluding revaluation and
retranslation of financial instruments.
Headline operating profit
Operating profit before gains/losses on disposal of investments and
subsidiaries, gains/losses on disposal of property, other
impairment charges, goodwill impairment, amortisation and
impairment of acquired intangible assets, restructuring and
transformation costs, property-related restructuring costs, other
transaction costs, and legal provision
charges/(gains).
Headline operating profit margin
Headline operating profit margin is calculated as headline
operating profit (defined above) as a percentage of revenue less
pass-through costs.
Headline PBIT
Profit before net finance costs, taxation, gains/losses on disposal
of investments and subsidiaries, gains/losses on disposal of
property, goodwill impairment, impairment of investments in
associates, amortisation and impairment of acquired intangible
assets, other impairment charges, restructuring and transformation
costs, property-related restructuring costs, other transaction
costs, and legal provision charges/gains and share of adjusting and
other items for associates.
Headline PBT
Profit before taxation, gains/losses on disposal of investments and
subsidiaries, gains/losses on disposal of property, impairment of
investments in associates, goodwill impairment, amortisation and
impairment of acquired intangible assets, other impairment charges,
restructuring and transformation costs, property-related
restructuring costs, other transaction costs, and legal provision
charges/gains, share of adjusting and other items for associates,
and revaluation and retranslation of financial
instruments.
Headline tax charge
Taxation excluding tax/deferred tax relating to gains/losses on
disposal of investments and subsidiaries, gains/losses on disposal
of property, acquisition related intangible assets and liabilities,
restructuring and transformation costs, property-related
restructuring costs, investments in associates, other transaction
costs and legal provision charges/ gains.
Like-for-like
Like-for-like comparisons are calculated as follows: current year,
constant currency actual results (which include acquisitions from
the relevant date of completion) are compared with prior year,
constant currency actual results, adjusted to include the results
of acquisitions and disposals.
Net finance costs
All costs related to interest expense on bank overdrafts, bonds,
bank loans, lease liabilities, swaps and revaluation and
retranslation of financial instruments less any interest income on
cash surplus and investments.
Net working capital
The movement in net working capital consists of movements in trade
receivables and accrued income, trade payables, other receivables,
other payables and provisions per the analysis of cash flows note
in 6.
Pass-through costs
Pass-through costs comprise fees paid to external suppliers when
they are engaged to perform part or all of a specific project and
are charged directly to clients. This includes the cost of media
where the Group is buying digital media for its own account on a
transparent opt-in basis and, as a result, the subsequent media
pass-through costs have to be accounted for as revenue, as well as
billings.
Revenue less pass-through costs
Revenue less pass-through costs is revenue less media and other
pass-through costs.
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
|
|
WPP
PLC
|
|
|
(Registrant)
|
|
Date:
26 February 2026.
|
By:
______________________
|
|
|
Balbir
Kelly-Bisla
|
|
|
Company
Secretary
|