WPP’s interim results are in, showing a healthy increase in profits and revenues, despite growth in the UK slowing in the wake of the Brexit decision.
Sir Martin Sorrell’s group showed growth in the UK of 3.5%, compared to 4.7% in the first quarter, with net sales overall showing a similar pattern. Headline profits were at $1017m with global revenues of $8.6bn in the first six months.
In a statement, WPP credited the slowdown in the UK market, which accounts for almost 14% of global revenues, as “reflecting pre-Brexit vote uncertainties”.
Western Continental Europe showed considerable improvement in the second quarter, while Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe stayed the same for revenue growth but improved for net sales. Strong growth was shown in like-for-like new sales in Central and Eastern Europe.
“Whilst there seems limited likelihood of a worldwide recession, that is two quarters of negative GDP growth globally, there have been and will be individual countries that go into recession, as Russia and Brazil already have and a post-Brexit United Kingdom might,” commented WPP, which has previously suggested it may bolster its non-UK European operations.
WPP has previously confirmed that it is in the process of looking for a successor to Sir Martin Sorrell as chief executive.