WPP’s Sir Martin Sorrell warns over Ukraine tensions
Advertising group reported a 1.5% rise in first-half pre-tax profit to £532 million
Tuesday 26 August 2014
WPP’s boss Sir Martin Sorrell has warned geopolitical threats in the Middle East and the dispute between Ukraine and Russia provide a threat to the global economy.
Sorrell said that, despite a strong first half in its Russian arm, WPP’s profits would be hit in the second half by sanctions imposed on Russia by the US and EU.
The world's largest advertising group reported a 1.5 per cent rise in first-half pre-tax profit to £532 million and reaffirmed its net sales operating margin improvement target for the year of 0.3 percentage points in constant currency.
However Sorrell said: "The strength of sterling has ravaged... our revenue figures and profits figures on a reported basis."
The group, which was created by Martin Sorrell and employs almost 175,000 people in 3,000 offices around the world, said its net sales margin for the first half was 13 per cent.
WPP, which has agencies including Ogilvy Group and JWT, lowered its margin guidance for the 2014 year in February due to competition in the industry.
It has, however, gained extra work in recent months from rivals Omnicom and Publicis, as they were engaged in merger talks which broke down.
WPP announced a 2.7 per cent increase in reported revenue to £5.47 billion.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...
£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...