Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and entity information [abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Trading Symbol | WPP |
Entity Registrant Name | WPP plc |
Entity Central Index Key | 0000806968 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 1,332,678,227 |
Consolidated Income Statement
Consolidated Income Statement - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Profit or loss [abstract] | ||||||
Revenue | [1],[2] | £ 15,602.4 | £ 15,804.2 | £ 14,887.3 | ||
Costs of services | (12,663.5) | (12,629) | [2] | (11,846.5) | [2] | |
Gross profit | 2,938.9 | 3,175.2 | [2] | 3,040.8 | [2] | |
General and administrative costs | (1,507.5) | (1,267) | [2] | (977.7) | [2] | |
Operating profit | 1,431.4 | 1,908.2 | [2] | 2,063.1 | [2] | |
Share of results of associates | 43.5 | 113.5 | [2] | 49.8 | [2] | |
Profit before interest and taxation | 1,474.9 | 2,021.7 | [2] | 2,112.9 | [2] | |
Finance income | 104.8 | 95.2 | [2] | 80.4 | [2] | |
Finance costs | (289.3) | (269.8) | [2] | (254.5) | [2] | |
Revaluation of financial instruments | 172.9 | 262.2 | [2] | (48.3) | [2] | |
Profit before taxation | 1,463.3 | 2,109.3 | [2] | 1,890.5 | [2] | |
Taxation | (323.9) | (197) | [2] | (388.9) | [2] | |
Profit for the year | 1,139.4 | 1,912.3 | [2] | 1,501.6 | [2] | |
Attributable to: | ||||||
Equity holders of the parent | 1,062.9 | 1,816.6 | [2] | 1,400.1 | [2] | |
Non-controlling interests | 76.5 | 95.7 | [2] | 101.5 | [2] | |
Profit for the year | £ 1,139.4 | £ 1,912.3 | [2] | £ 1,501.6 | [2] | |
Earnings per share | ||||||
Basic earnings per ordinary share | £ 0.852 | £ 1.440 | [2] | £ 1.096 | [2] | |
Diluted earnings per ordinary share | £ 0.843 | £ 1.424 | [2] | £ 1.080 | [2] | |
[1] | Intersegment sales have not been separately disclosed as they are not material. | |||||
[2] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Statement of comprehensive income [abstract] | |||||
Profit for the year | £ 1,139.4 | £ 1,912.3 | [1] | £ 1,501.6 | [1] |
Items that may be reclassified subsequently to profit or loss: | |||||
Exchange adjustments on foreign currency net investments | 78.9 | (465.2) | 1,378 | ||
Gain/(loss) on revaluation of available for sale investments | 32.1 | (93.1) | |||
Items that may be reclassified subsequently to profit or loss | 78.9 | (433.1) | 1,284.9 | ||
Items that will not be reclassified subsequently to profit or loss: | |||||
Actuarial gain/(loss) on defined benefit pension plans | 8.9 | 17 | (15.9) | ||
Deferred tax on defined benefit pension plans | (0.7) | (24.6) | (0.4) | ||
Movements on equity investments held at fair value through other comprehensive income | (247.9) | ||||
Items that will not be reclassified subsequently to profit or loss | (239.7) | (7.6) | (16.3) | ||
Other comprehensive (loss)/income for the year | (160.8) | (440.7) | 1,268.6 | ||
Total comprehensive income for the year | 978.6 | 1,471.6 | 2,770.2 | ||
Attributable to: | |||||
Equity holders of the parent | 893.1 | 1,395.6 | 2,600.6 | ||
Non-controlling interests | 85.5 | 76 | 169.6 | ||
Total comprehensive income for the year | £ 978.6 | £ 1,471.6 | £ 2,770.2 | ||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statement - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of cash flows [abstract] | |||
Net cash inflow from operating activities | £ 1,693.8 | £ 1,408.1 | £ 1,773.8 |
Investing activities | |||
Acquisitions | (298.8) | (477.5) | (719.3) |
Proceeds on disposal of investments and subsidiaries | 849 | 296 | 80.5 |
Purchases of property, plant and equipment | (314.8) | (288.9) | (252.1) |
Purchases of other intangible assets (including capitalised computer software) | (60.4) | (37.3) | (33) |
Proceeds on disposal of property, plant and equipment | 9.5 | 8 | 7.7 |
Net cash inflow/(outflow) from investing activities | 184.5 | (499.7) | (916.2) |
Financing activities | |||
Share option proceeds | 1.2 | 6.4 | 27.2 |
Cash consideration for non-controlling interests | (109.9) | (47.3) | (58.3) |
Share repurchases and buy-backs | (207.1) | (504.2) | (427.4) |
Net (decrease)/increase in borrowings | (440.6) | 599.6 | (22.5) |
Financing and share issue costs | (3.8) | (0.8) | (6.4) |
Equity dividends paid | (747.4) | (751.5) | (616.5) |
Dividends paid to non-controlling interests in subsidiary undertakings | (106.2) | (87.8) | (89.6) |
Net cash outflow from financing activities | (1,613.8) | (785.6) | (1,193.5) |
Net increase/(decrease) in cash and cash equivalents | 264.5 | 122.8 | (335.9) |
Translation of cash and cash equivalents | (61.5) | (27.2) | 291.9 |
Cash and cash equivalents at beginning of year | 1,998.2 | 1,902.6 | 1,946.6 |
Cash and cash equivalents at end of year | £ 2,201.2 | £ 1,998.2 | £ 1,902.6 |
Consolidated Balance Sheet
Consolidated Balance Sheet - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | [1] |
Non-current assets | |||
Goodwill | £ 13,202.8 | £ 12,952.9 | |
Other | 1,842 | 2,018.4 | |
Property, plant and equipment | 1,083 | 979.5 | |
Interests in associates and joint ventures | 796.8 | 1,065.2 | |
Other investments | 666.7 | 1,153.5 | |
Deferred tax assets | 153 | 160.3 | |
Trade and other receivables | 180 | 176.2 | |
Non-current assets | 17,924.3 | 18,506 | |
Current assets | |||
Corporate income tax recoverable | 198.7 | 234.7 | |
Trade and other receivables | 13,101.5 | 12,530.7 | |
Cash and short-term deposits | 2,643.2 | 2,391.4 | |
Current assets | 15,943.4 | 15,156.8 | |
Current liabilities | |||
Trade and other payables | (15,038.4) | (14,241.1) | |
Corporate income tax payable | (545.9) | (649.3) | |
Bank overdrafts, bonds and bank loans | (1,025.1) | (624.1) | |
Current liabilities | (16,609.4) | (15,514.5) | |
Net current liabilities | (666) | (357.7) | |
Total assets less current liabilities | 17,258.3 | 18,148.3 | |
Non-current liabilities | |||
Bonds and bank loans | (5,634.8) | (6,250.4) | |
Trade and other payables | (841.4) | (992.8) | |
Deferred tax liabilities | (479.5) | (513.7) | |
Provision for post-employment benefits | (184.3) | (206.3) | |
Provisions for liabilities and charges | (311.7) | (229) | |
Non-current liabilities | (7,451.7) | (8,192.2) | |
Net assets | 9,806.6 | 9,956.1 | |
Equity | |||
Called-up share capital | 133.3 | 133.3 | |
Share premium account | 569.7 | 568.5 | |
Other reserves | 393.5 | 761.7 | |
Own shares | (1,255.7) | (1,171.1) | |
Retained earnings | 9,541.4 | 9,194.9 | |
Equity shareholder's funds | 9,382.2 | 9,487.3 | |
Non-controlling interests | 424.4 | 468.8 | |
Total equity | £ 9,806.6 | £ 9,956.1 | |
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - GBP (£) £ in Millions | Total | Called-up share capital [member] | Share premium account [member] | Other reserves [member] | [1] | Own shares [member] | Retained earnings [member] | [2] | Total equity share owner's funds [member] | Non-controlling interests [member] | ||
Beginning balance at Dec. 31, 2015 | £ 8,009.9 | £ 132.9 | £ 535.3 | £ (9.7) | £ (719.6) | £ 7,692.6 | £ 7,631.5 | £ 378.4 | ||||
Ordinary shares issued | 27.2 | 0.3 | 26.9 | 27.2 | ||||||||
Treasury share additions | (274.5) | (274.5) | (274.5) | |||||||||
Treasury share allocations | 3.9 | (3.9) | ||||||||||
Profit for the year | 1,501.6 | [3] | 1,400.1 | 1,400.1 | 101.5 | |||||||
Exchange adjustments on foreign currency net investments | 1,378 | 1,309.9 | 1,309.9 | 68.1 | ||||||||
Gain/(loss) on revaluation of available for sale investments | (93.1) | (93.1) | (93.1) | |||||||||
Actuarial gain(loss) on defined benefit pension plans | (15.9) | (15.9) | (15.9) | |||||||||
Deferred tax on defined benefit pension plans | (0.4) | (0.4) | (0.4) | |||||||||
Other comprehensive (loss)/income for the year | 1,268.6 | 1,216.8 | (16.3) | 1,200.5 | 68.1 | |||||||
Dividends paid | (706.1) | (616.5) | (616.5) | (89.6) | ||||||||
Non-cash share-based incentive plans (including share options) | 106.5 | 106.5 | 106.5 | |||||||||
Tax adjustment on share-based payments | 3.9 | 3.9 | 3.9 | |||||||||
Net movement in own shares held by ESOP Trusts | (152.9) | 28.2 | (181.1) | (152.9) | ||||||||
Recognition/remeasurement of financial instruments | 4.9 | (21.9) | 26.8 | 4.9 | ||||||||
Share purchases - close period commitments | 8.6 | 8.6 | 8.6 | |||||||||
Acquisition of subsidiaries | [4] | (36) | (20.7) | (20.7) | (15.3) | |||||||
End of year at Dec. 31, 2016 | 9,761.7 | 133.2 | 562.2 | 1,185.2 | (962) | 8,400 | 9,318.6 | 443.1 | ||||
Ordinary shares issued | 6.4 | 0.1 | 6.3 | 6.4 | ||||||||
Treasury share additions | (289.6) | (289.6) | (289.6) | |||||||||
Treasury share allocations | 112.2 | (112.2) | ||||||||||
Profit for the year | 1,912.3 | [3] | 1,816.6 | 1,816.6 | 95.7 | |||||||
Exchange adjustments on foreign currency net investments | (465.2) | (445.5) | (445.5) | (19.7) | ||||||||
Gain/(loss) on revaluation of available for sale investments | 32.1 | 32.1 | 32.1 | |||||||||
Actuarial gain(loss) on defined benefit pension plans | 17 | 17 | 17 | |||||||||
Deferred tax on defined benefit pension plans | (24.6) | (24.6) | (24.6) | |||||||||
Other comprehensive (loss)/income for the year | (440.7) | (413.4) | (7.6) | (421) | (19.7) | |||||||
Dividends paid | (839.3) | (751.5) | (751.5) | (87.8) | ||||||||
Non-cash share-based incentive plans (including share options) | 105 | 105 | 105 | |||||||||
Tax adjustment on share-based payments | 3 | 3 | 3 | |||||||||
Net movement in own shares held by ESOP Trusts | (214.6) | (31.7) | (182.9) | (214.6) | ||||||||
Recognition/remeasurement of financial instruments | (21.8) | (10.1) | (11.7) | (21.8) | ||||||||
Acquisition of subsidiaries | [4] | (26.3) | (63.8) | (63.8) | 37.5 | |||||||
End of year at Dec. 31, 2017 | 9,956.1 | [3] | 133.3 | 568.5 | 761.7 | (1,171.1) | 9,194.9 | 9,487.3 | 468.8 | |||
Accounting policy change (IFRS 9) | [5] | (407.4) | 407.4 | |||||||||
Beginning balance, revised at Dec. 31, 2017 | 9,956.1 | 133.3 | 568.5 | 354.3 | (1,171.1) | 9,602.3 | 9,487.3 | 468.8 | ||||
Ordinary shares issued | 1.2 | 1.2 | 1.2 | |||||||||
Treasury share additions | (104.3) | (104.3) | (104.3) | |||||||||
Treasury share allocations | 1.5 | (1.5) | ||||||||||
Profit for the year | 1,139.4 | 1,062.9 | 1,062.9 | 76.5 | ||||||||
Exchange adjustments on foreign currency net investments | 78.9 | 69.9 | 69.9 | 9 | ||||||||
Movements on equity investments held at fair value through other comprehensive income | (247.9) | (247.9) | (247.9) | |||||||||
Actuarial gain(loss) on defined benefit pension plans | 8.9 | 8.9 | 8.9 | |||||||||
Deferred tax on defined benefit pension plans | (0.7) | (0.7) | (0.7) | |||||||||
Other comprehensive (loss)/income for the year | (160.8) | 69.9 | (239.7) | (169.8) | 9 | |||||||
Dividends paid | (853.6) | (747.4) | (747.4) | (106.2) | ||||||||
Non-cash share-based incentive plans (including share options) | 84.8 | 84.8 | 84.8 | |||||||||
Tax adjustment on share-based payments | (1.2) | (1.2) | (1.2) | |||||||||
Net movement in own shares held by ESOP Trusts | (102.8) | 18.2 | (121) | (102.8) | ||||||||
Recognition/remeasurement of financial instruments | (20.4) | (30.7) | 10.3 | (20.4) | ||||||||
Acquisition of subsidiaries | [4] | (131.8) | (108.1) | (108.1) | (23.7) | |||||||
End of year at Dec. 31, 2018 | £ 9,806.6 | £ 133.3 | £ 569.7 | £ 393.5 | £ (1,255.7) | £ 9,541.4 | £ 9,382.2 | £ 424.4 | ||||
[1] | Other reserves are analysed in note 26. | |||||||||||
[2] | Retained earnings have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. | |||||||||||
[3] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. | |||||||||||
[4] | Acquisition of subsidiaries represents movements in retained earnings and non-controlling interests arising from changes in ownership of existing subsidiaries and recognition of non-controlling interests on new acquisitions. | |||||||||||
[5] | The impact of the adoption of IFRS 9 Financial Instruments from 1 January 2018 is described in the accounting policies on pages F-2 to F-3. |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Accounting policies | Accounting policies The consolidated financial statements of WPP plc and its subsidiaries (the Group) for the year ended 31 December 2018 have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board as they apply to the financial statements of the Group for the year ended 31 December 2018. Basis of preparation The consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of certain financial instruments. The principal accounting policies are set out below. The financial statements were approved by the Board of Directors and authorized for issue on 26 April 2019 Basis of consolidation The consolidated financial statements include the results of the Company and all its subsidiary undertakings made up to the same accounting date. All intra-Group balances, transactions, income and expenses are eliminated in full on consolidation. The results of subsidiary undertakings acquired or disposed of during the period are included or excluded from the consolidated income statement from the effective date of acquisition or disposal. New IFRS accounting pronouncements At the date of authorisation of these financial statements, the following Standards, which have not been applied in these financial statements, were in issue but not yet effective: • IFRS 16 Leases; and • IFRIC 23 Uncertainty over Income Tax Treatments. IFRS 16 is effective from 1 January 2019. The standard eliminates the classification of leases as either operating or finance leases and introduces a single accounting model. Lessees will be required to recognise a right-of-use asset and related lease liability for the majority of their operating leases and show depreciation of leased assets and interest on lease liabilities separately in the income statement. IFRS 16 will require the Group to recognise substantially all of its operating leases on the balance sheet. The Group will adopt IFRS 16 effective 1 January 2019 on a modified retrospective basis and apply the standard retrospectively with the cumulative effect of initially applying the standard recognised at the date of initial application as an adjustment to retained earnings. Accordingly, prior year financial information will not be restated and will continue to be reported under IAS 17 Leases. The right-of-use asset and lease liability will initially be measured at the present value of the remaining lease payments, with the right-of-use asset being subject to certain adjustments. The estimated right-of-use asset and lease liability recorded on the balance sheet as of 1 January 2019 will be approximately £2.0 billion to £2.5 billion. Depreciation of the right-of-use asset and recognition of interest on the lease liability in the income statement will replace amounts recognised as rent expense under IAS 17, resulting in an estimated increase to operating margin of approximately 0.4 to 0.6 margin points and an estimated decrease to diluted earnings per share of approximately 1.3p to 1.6p. IFRIC 23 is effective from 1 January 2019. The Group does not consider that this Standard will have a significant impact on the financial statements of the Group. In the current year, the following Standards and Interpretations became effective: • IFRS 9 Financial Instruments; and • IFRS 15 Revenue from Contracts with Customers. Impact of the Adoption of IFRS 9 Financial Instruments The Group has adopted IFRS 9 Financial Instruments from 1 January 2018 which resulted in the movements in fair value of certain equity investments previously designated as ‘available-for-sale’ being designated as fair value through other comprehensive income or fair value through profit or loss. The cumulative movements in fair value taken to equity up to 31 December 2017 for these investments have been transferred from other reserves to retained earnings, resulting in an increase in retained earnings of £407.4 million and a corresponding decrease in other reserves. Amounts classified as loans and receivables under IAS 39 Financial Instruments: Recognition and Measurement have been reclassified to amortised cost under IFRS 9. Further details on reclassification are set out in note 24. The requirement under IFRS 9 to use an expected loss method of impairment of financial assets did not have a material effect on the Group due to the short-term nature of the Group’s trade and other receivables, which are mainly due from large national or multinational companies. The Group continues to apply the hedge accounting requirements of IAS 39, as permitted by IFRS 9. Comparatives have not been restated in accordance with the transitional guidance in IFRS 9 and the cumulative impact of adopting the standard on reserves at 1 January 2018 is shown in the consolidated statement of changes in equity. Impact of the Adoption of IFRS 15 Revenue from Contracts with Customers The Group has adopted IFRS 15 Revenue from Contracts with Customers from 1 January 2018 which resulted in changes in certain aspects of our accounting policies and adjustments to the amounts recognised in the financial statements. In accordance with the transition provisions in IFRS 15, the Group has adopted the new rules retrospectively and has restated comparatives for each prior year presented in the consolidated financial statements. The new standard establishes a five-step model where consideration received or expected to be received is recognised as revenue when contractual performance obligations are satisfied by transferring control of the relevant goods or services to the customer. Adopting IFRS 15 did not have a significant impact on the timing of the Group’s revenue recognition nor on the Group’s equity. However, for certain of our contracts, the adoption of IFRS 15 resulted in a change in our accounting for certain third-party costs. Third-party costs are included in revenue when the Group acts as principal with respect to the services provided to the client and are excluded when the Group acts as agent. Under IFRS 15, the principal versus agent assessment is based on whether the Group controls the relevant services before they are transferred to the client. As a result of the adoption of IFRS 15, there was an increase in third-party costs included in revenue and costs of services. This change increased revenue and costs of services by the same amount and therefore had no impact on gross profit or operating profit. The following table summarises the impact of adopting IFRS 15 on the Group’s consolidated income statement for the years ended 31 December 2017 and 2016. Year ended 31 December 2017 Year ended 31 December 2016 £ million As IFRS 15 As As IFRS 15 As Revenue 15,265.4 538.8 15,804.2 14,388.9 498.4 14,887.3 Costs of services (12,090.2 ) (538.8 ) (12,629.0 ) (11,348.1 ) (498.4 ) (11,846.5 ) Gross profit 3,175.2 – 3,175.2 3,040.8 – 3,040.8 Work in progress includes outlays incurred on behalf of clients, including production costs, and other third-party costs that have not yet been billed and are considered receivables under IFRS 15. As such, £401.1 million of ‘Work in progress’ has been reclassified as ‘Trade and other receivables’ as of 31 December 2017. Other than this reclassification, the impact of the adoption of IFRS 15 on the consolidated balance sheet, consolidated cash flow statement, consolidated statement of changes in equity and earnings per share was immaterial. Goodwill and other intangible assets Intangible assets comprise goodwill, certain acquired separable corporate brand names, acquired customer relationships, acquired proprietary tools and capitalised computer software not integral to a related item of hardware. Goodwill represents the excess of fair value attributed to investments in businesses or subsidiary undertakings over the fair value of the underlying net assets, including intangible assets, at the date of their acquisition. Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the net present value of future cash flows derived from the underlying assets using a projection period of up to five years for each cash-generating unit. After the projection period a steady growth rate representing an appropriate long-term growth rate for the industry is applied. Any impairment is recognised immediately as an expense and is not subsequently reversed. Corporate brand names, customer relationships and proprietary tools acquired as part of acquisitions of businesses are capitalised separately from goodwill as intangible assets if their value can be measured reliably on initial recognition and it is probable that the expected future economic benefits that are attributable to the asset will flow to the Group. Certain corporate brands of the Group are considered to have an indefinite economic life because of the institutional nature of the corporate brand names, their proven ability to maintain market leadership and profitable operations over long periods of time and the Group’s commitment to develop and enhance their value. The carrying value of these intangible assets is reviewed at least annually for impairment and adjusted to the recoverable amount if required. Amortisation is provided at rates calculated to write off the cost less estimated residual value of each asset on a straight-line basis over its estimated useful life as follows: • Brand names (with finite lives) – 10-20 years. • Customer-related intangibles – 3-10 years. • Other proprietary tools – 3-10 years. • Other (including capitalised computer software) – 3-5 years. Contingent consideration Contingent consideration is accounted for in accordance with IFRS 3 Business Combinations. Contingent consideration only applies to situations where contingent payments are not dependent on future employment of vendors and any such payments are expensed when they relate to future employment. Future anticipated payments to vendors in respect of contingent consideration (earnout agreements) are initially recorded at fair value which is the present value of the expected cash outflows of the obligations. The obligations are dependent on the future financial performance of the interests acquired (typically over a four- to five-year period following the year of acquisition) and assume the operating companies improve profits in line with Directors’ estimates. The Directors derive their estimates from internal business plans together with financial due diligence performed in connection with the acquisition. Subsequent adjustments to the fair value are recorded in the consolidated income statement within revaluation of financial instruments. Property, plant and equipment Property, plant and equipment are shown at cost less accumulated depreciation and any provision for impairment with the exception of freehold land which is not depreciated. The Group assesses the carrying value of its property, plant and equipment to determine if any impairment has occurred. Where this indicates that an asset may be impaired, the Group applies the requirements of IAS 36 Impairment of Assets in assessing the carrying amount of the asset. This process includes comparing its recoverable amount with its carrying value. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset on a straight-line basis over its estimated useful life, as follows: • Freehold buildings – 50 years. • Leasehold land and buildings – over the term of the lease or life of the asset, if shorter. • Fixtures, fittings and equipment – 3-10 years. • Computer equipment – 3-5 years. Interests in associates and joint ventures An associate is an entity over which the Group has significant influence. In certain circumstances, significant influence may be represented by factors other than ownership and voting rights, such as representation on the Board of Directors. The Group’s share of the profits less losses of associate undertakings net of tax, interest and non-controlling interests is included in the consolidated income statement and the Group’s share of net assets is shown within interests in associates in the consolidated balance sheet. The Group’s share of the profits less losses and net assets is based on current information produced by the undertakings, adjusted to conform with the accounting policies of the Group. The Group assesses the carrying value of its associate undertakings to determine if any impairment has occurred. Where this indicates that an investment may be impaired, the Group applies the requirements of IAS 36 in assessing the carrying amount of the investment. This process includes comparing its recoverable amount with its carrying value. The Group accounts for joint venture investments under the equity method which is consistent with the Group’s treatment of associates. Other investments The Group has adopted IFRS 9 Financial Instruments from 1 January 2018 which resulted in the movements in fair value of certain equity investments previously designated as ‘available-for-sale’ being designated as fair value through other comprehensive income or fair value through profit or loss. Further details on reclassifications are set out in note 24. Movements in fair value through profit or loss are recorded in the consolidated income statement within revaluation of financial instruments. Accrued and deferred income Accrued income is a contract asset and is recognised when a performance obligation has been satisfied but has not yet been billed. Contract assets are transferred to receivables when the right to consideration is unconditional and billed per the terms of the contractual agreement. In certain cases, payments are received from customers prior to satisfaction of performance obligations and recognised as deferred income. These balances are considered contract liabilities and are typically related to prepayments for third party expenses that are incurred shortly after billing. Trade receivables and work in progress Trade receivables are stated net of provisions for bad and doubtful debts. The Group has adopted IFRS 9 Financial Instruments from 1 January 2018 which requires an expected loss method of impairment of financial assets to be used. The implementation of this did not have a material impact on the Group. The Group has applied the simplified approach to measuring expected credit losses, as permitted by IFRS 9. Therefore the Group does not track changes in credit risk, but recognises a loss allowance based on the financial asset’s lifetime expected credit loss. The Group measures expected credit losses based on the ageing of the receivable, based on the Group’s historical experience and informed credit assessment. The Group considers a loss allowance to be required for 50% of all invoices aged 180 days to 1 year and 100% of all invoices aged over 1 year, with adjustments where there is specific information to indicate that recoverability of the balance is likely. Further credit losses are recognised where the Group has information that indicates it is unlikely to recover balances in full. Further details on provisions for bad and doubtful debts are provided in note 16. Work in progress includes outlays incurred on behalf of clients, including production costs, and other third-party costs that have not yet been billed and are considered receivables under IFRS 15 Revenue from Contracts with Customers. Foreign currency and interest rate hedging The Group’s policy on interest rate and foreign exchange rate management sets out the instruments and methods available to hedge interest and currency risk exposures and the control procedures in place to ensure effectiveness. The Group uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The Group does not hold or issue derivative financial instruments for speculative purposes. Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each balance sheet date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. At the inception of the hedge relationship the entity documents the relationship between the hedging instrument and hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument that is used in a hedging relationship is highly effective in offsetting changes in fair values or cash flows of the hedged item. Note 24 contains details of the fair values of the derivative instruments used for hedging purposes. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in profit or loss immediately, together with any changes in the fair value of the hedged item that is attributable to the hedged risk. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow or net investment hedges is recognised in other comprehensive income and deferred in equity. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. Amounts deferred in equity are recycled in profit or loss in the periods when the hedged item is recognised in profit or loss. However, when the forecast transaction that is hedged results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the asset or liability. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained in equity until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in equity is transferred to net profit or loss for the period. Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of host contracts and the host contracts are not carried at fair value with unrealised gains or losses reported in the consolidated income statement. Liabilities in respect of option agreements Option agreements that allow the Group’s equity partners to require the Group to purchase a non-controlling interest are treated as derivatives over equity instruments and are recorded in the consolidated balance sheet initially at the present value of the redemption amount in accordance with IAS 32 Financial Instruments: Presentation and subsequently measured at fair value in accordance with IFRS 9 Financial Instruments. The movement in the fair value is recognised as income or expense within revaluation of financial instruments in the consolidated income statement. Derecognition of financial liabilities In accordance with IFRS 9 Financial Instruments, a financial liability of the Group is only released to the consolidated income statement when the underlying legal obligation is extinguished. Debt Interest-bearing debt is recorded at the proceeds received, net of direct issue costs. Borrowing costs Finance costs of borrowing are recognised in the consolidated income statement over the term of those borrowings. Revenue recognition The Group is a leading worldwide creative transformation organisation offering national and multinational clients a comprehensive range of communications, experience, commerce and technology services. Contracts often involve multiple agencies offering different services in different countries. As such, the terms of local, regional and global contracts can vary to meet client needs and regulatory requirements. Consistent with the industry, contracts are typically short-term in nature and tend to be cancellable by either party with 90 days notice. The Group is generally entitled to payment for work performed to date. The Group is generally paid in arrears for its services. Invoices are typically payable within 30 to 60 days. Revenue comprises commissions and fees earned in respect of amounts billed and is stated exclusive of VAT, sales taxes and trade discounts. 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, predominantly media and data collection costs. Costs to obtain a contract are typically expensed as incurred as the contracts are generally short-term in nature. In most instances, promised services in a contract are not considered distinct or represent a series of services that are substantially the same with the same pattern of transfer to the customer and, as such, are accounted for as a single performance obligation. However, where there are contracts with services that are capable of being distinct, are distinct within the context of the contract, and are accounted for as separate performance obligations, revenue is allocated to each of the performance obligations based on relative standalone selling prices. Revenue is recognised when a performance obligation is satisfied, in accordance with the terms of the contractual arrangement. Typically performance obligations are satisfied over time as services are rendered. Revenue recognised over time is based on the proportion of the level of service performed. Either an input method or an output method, depending on the particular arrangement, is used to measure progress for each performance obligation. For most fee arrangements, costs incurred are used as an objective input measure of performance. The primary input of substantially all work performed under these arrangements is labour. There is normally a direct relationship between costs incurred and the proportion of the contract performed to date. In other circumstances relevant output measures, such as the achievement of any project milestones stipulated in the contract, are used to assess proportional performance. For our retainer arrangements, we have a stand ready obligation to perform services on an ongoing basis over the life of the contract. The scope of these arrangements are broad and generally are not reconcilable to another input or output criteria. In these instances, revenue is recognised using a time-based method resulting in straight-line revenue recognition. The amount of revenue recognised depends on whether we act as an agent or as a principal. Certain arrangements with our clients are such that our responsibility is to arrange for a third party to provide a specified good or service to the client. In these cases we are acting as an agent as we do not control the relevant good or service before it is transferred to the client. When we act as an agent, the revenue recorded is the net amount retained. Costs incurred with external suppliers (such as production costs and media suppliers) are excluded from revenue and recorded as work in progress until billed. The Group acts as principal when we control the specified good or service prior to transfer. When the Group acts as a principal (such as in-house production services, events, data investment management and branding), the revenue recorded is the gross amount billed. Billings related to out-of-pocket costs such as travel are also recognised at the gross amount billed with a corresponding amount recorded as an expense. Further details on revenue recognition are detailed by sector below: Advertising and Media Investment Management Revenue is typically derived from media placements and advertising services. Revenue may consist of various arrangements involving commissions, fees, incentive-based revenue or a combination of the three, as agreed upon with each client. Revenue for commissions on purchased media is typically recognised at the point in time the media is run. The Group receives volume rebates from certain suppliers for transactions entered into on behalf of clients that, based on the terms of the relevant contracts and local law, are either remitted to clients or retained by the Group. If amounts are passed on to clients they are recorded as liabilities until settled or, if retained by the Group, are recorded as revenue when earned. Variable incentive-based revenue typically comprises both quantitative and qualitative elements. Incentive compensation is estimated using the most likely amount and is included in revenue up to the amount that is highly probable not to result in a significant reversal of cumulative revenue recognised. The Group recognises incentive revenue as the related performance obligation is satisfied. Data Investment Management Revenue for market research services is typically recognised over time based on input measures. For certain performance obligations, output measures such as the percentage of interviews completed, percentage of reports delivered to a client and the achievement of any project milestones stipulated in the contract are used to measure progress. While most of the studies provided in connection with the Group’s market research contracts are undertaken in response to an individual client’s or group of clients’ specifications, in certain instances a study may be developed as an off-the-shelf product offering sold to a broad client base. For these transactions, revenue is recognised when the product is delivered. When the terms of the transaction provide for licensing the right to access a product on a subscription basis, revenue is recognised over the subscription period, typically on a straight-line basis. Public Relations & Public Affairs and Brand Consulting, Health & Wellness and Specialist Communications Revenue for these services is typically derived from retainer fees and fees for services to be performed subject to specific agreement. Most revenue under these arrangements is earned over time, in accordance with the terms of the contractual arrangement. Taxation Corporate taxes are payable on taxable profits at current rates. The tax expense represents the sum of the tax currently payable and deferred tax. The Group is subject to corporate taxes in a number of different jurisdictions and judgement is required in determining the appropriate provision for transactions where the ultimate tax determination is uncertain. In such circumstances, the Group recognises liabilities for anticipated taxes based on the best information available and where the anticipated liability is both probable and estimable, liabilities are classified as current. Any interest and penalties accrued are included in corporate income taxes both in the consolidated income statement and balance sheet. Where the final outcome of such matters differs from the amount recorded, any differences may impact the income tax and deferred tax provisions in the period in which the final determination is made. The tax laws that apply to the Group’s subsidiaries may be amended by the relevant tax authorities. Such potential amendments are regularly monitored and adjustments are made to the Group’s tax liabilities and deferred tax assets and liabilities where necessary. The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the consolidated income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are recognised for all taxable temporary differences unless specifically excepted by IAS 12 Income Taxes. Deferred tax is charged or credited in the consolidated income statement, except when it relates to items charged or credited to other comprehensive income or directly to equity, in which case the deferred tax is also dealt with in other comprehensive income or equity. Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised, which can require the use of accounting estimation and the exercise of judgement. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or other assets and liabilities (other than in a business combination) in a transaction that affects neither the taxable profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on enacted or substantively enacted legislation. Retirement benefit costs The Group accounts for retirement benefit costs in accordance with IAS 19 Employee Benefits. For defined contribution plans, contributions are charged to the consolidated income statement as payable in respect of the accounting period. For defined benefit plans the amounts charged to operating profit are the current service costs, past service costs, administrative expenses and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the consolidated income statement when the related plan amendment occurs. Net interest expense is calculated by applying the discount rate to the recognised overall surplus or deficit in the plan. Actuarial gains and losses are recognised immediately in the consolidated statement of comprehensive income. Where defined benefit plans are funded, the assets of the plan are held separately from those of the Group, in separate independently managed funds. Pension plan assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent currency and term to the plan liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. Recognition of a surplus in a defined benefit plan is limited based on the economic gain the Company is expected to benefit from in the future by means of a refund or reduction in future contributions to the plan, in accordance with IAS 19. Provisions for liabilities and charges Provisions comprise liabilities where there is uncertainty about the timing of settlement, but where a reliable estimate can be made of the amount. These include provisions for vacant space, sub-let losses and other property-related liabilities. Also included are other provisions, such as certain long-term employee benefits and legal claims, where the likelihood of settlement is considered probable. Finance leases Assets held under finance leases are recognised as assets of the Group at the inception of the lease at the lower of their fair value and the present |
General information
General information | 12 Months Ended |
Dec. 31, 2018 | |
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General information | 1. General information WPP plc is a company incorporated in Jersey. The address of the registered office is Queensway House, Hilgrove Street, St Helier, Jersey, JE1 1ES and the address of the principal executive office is Sea Containers, 18 Upper Ground, London, United Kingdom, SE1 9GL. The nature of the Group’s operations and its principal activities are set out in note 2. These consolidated financial statements are presented in pounds sterling. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2018 | |
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Segment information | 2. Segment information The Group is a leading worldwide creative transformation organisation offering national and multinational clients a comprehensive range of communications, experience, commerce and technology services. Substantially all of the Group’s revenue is from contracts with customers. The Group is organised into four reportable segments – Advertising and Media Investment Management; Data Investment Management; Public Relations & Public Affairs; and Brand Consulting, Health & Wellness and Specialist Communications. This last reportable segment includes direct, interactive and ecommerce. IFRS 8 Operating Segments requires operating segments to be identified on the same basis as is used internally for the review of performance and allocation of resources by the Chief Executive Officer. Provided certain quantitative and qualitative criteria are fulfilled, IFRS 8 permits the aggregation of these components into reportable segments for the purposes of disclosure in the Group’s financial statements. In assessing the Group’s reportable segments, the Directors have had regard to the similar economic characteristics of certain operating segments, their shared client base, the similar nature of their products or services and their long-term margins, amongst other factors. Reportable segments Reported contributions were as follows: Income statement Revenue 1,2 Revenue pass-through 2,3 Headline 4 Headline 5 £m £m £m 2018 Advertising and Media Investment Management 7,132.4 5,529.7 972.4 17.6% Data Investment Management 2,582.5 1,965.4 301.1 15.3% Public Relations & Public Affairs 1,210.7 1,136.3 183.7 16.2% Brand Consulting, Health & Wellness and Specialist Communications 4,676.8 4,195.2 590.1 14.1% 15,602.4 2,047.3 2017 Advertising and Media Investment Management 7,368.7 5,889.3 1,109.0 18.8% Data Investment Management 2,703.4 2,052.1 350.3 17.1% Public Relations & Public Affairs 1,204.0 1,140.6 183.2 16.1% Brand Consulting, Health & Wellness and Specialist Communications 4,528.1 4,087.6 624.6 15.3% 15,804.2 2,267.1 2016 Advertising and Media Investment Management 6,709.4 5,450.9 1,027.2 18.8% Data Investment Management 2,672.4 1,994.0 351.5 17.6% Public Relations & Public Affairs 1,130.6 1,078.5 179.8 16.7% Brand Consulting, Health & Wellness and Specialist Communications 4,374.9 3,905.2 601.8 15.4% 14,887.3 2,160.3 Notes 1 Intersegment sales have not been separately disclosed as they are not material. 2 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. 3 Revenue less pass-through costs is revenue less media, data collection and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media and data collection costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. 4 A reconciliation from profit before interest and taxation to headline PBIT is provided in note 29. PBIT is reconciled to reported profit before taxation in the consolidated income statement. 5 Headline PBIT margin is calculated as headline PBIT (defined above) as a percentage of revenue less pass-through costs. Previously referred to as revenue less pass-through costs margin. Other information Share-based Capital 1 Depreciation 2 Goodwill Share of Interests in £m £m £m £m £m £m 2018 Advertising and Media Investment Management 41.9 190.8 111.8 148.0 16.6 203.4 Data Investment Management 12.8 68.9 56.6 0.9 12.5 113.1 Public Relations & Public Affairs 8.3 13.4 13.8 – 5.2 39.5 Brand Consulting, Health & Wellness and Specialist Communications 21.8 102.1 81.6 35.0 9.2 440.8 84.8 375.2 263.8 183.9 43.5 796.8 2017 Advertising and Media Investment Management 57.0 171.3 108.8 19.5 27.0 193.1 Data Investment Management 14.4 58.8 59.9 – 15.3 106.3 Public Relations & Public Affairs 8.6 10.6 12.2 7.6 6.3 34.2 Brand Consulting, Health & Wellness and Specialist Communications 25.0 85.5 86.1 – 64.9 731.6 105.0 326.2 267.0 27.1 113.5 1,065.2 2016 Advertising and Media Investment Management 60.7 126.2 105.4 20.9 8.3 285.6 Data Investment Management 13.0 61.5 60.9 – 13.2 109.4 Public Relations & Public Affairs 7.5 10.3 11.6 – 3.2 108.1 Brand Consulting, Health & Wellness and Specialist Communications 25.3 87.1 81.5 6.1 25.1 566.3 106.5 285.1 259.4 27.0 49.8 1,069.4 Notes 1 Capital additions include purchases of property, plant and equipment and other intangible assets (including capitalised computer software). 2 Depreciation of property, plant and equipment and amortisation of other intangible assets. Contributions by geographical area were as follows: 2018 £m 2017 2 £m 2016 2 £m Revenue 1 North America 3 5,371.0 5,659.2 5,400.9 UK 2,189.4 2,133.4 1,970.7 Western Continental Europe 3,335.3 3,230.6 3,008.5 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 4,706.7 4,781.0 4,507.2 15,602.4 15,804.2 14,887.3 Revenue less pass-through costs 4 North America 3 4,474.2 4,793.9 4,598.4 UK 1,691.3 1,688.0 1,590.2 Western Continental Europe 2,735.4 2,630.6 2,438.3 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 3,925.7 4,057.1 3,801.7 Headline PBIT 5 North America 3 804.0 937.4 895.4 UK 244.6 280.0 261.4 Western Continental Europe 372.7 376.0 351.7 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 626.0 673.7 651.8 2,047.3 2,267.1 2,160.3 Margin Margin 2 Margin 2 Headline PBIT margin 6 North America 18.0% 19.6% 19.5% UK 14.5% 16.6% 16.4% Western Continental Europe 13.6% 14.3% 14.4% Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 15.9% 16.6% 17.1% Notes 1 Intersegment sales have not been separately disclosed as they are not material. 2 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. 3 North America includes the US with revenue of £5,074.1 million (2017: £5,336.3 million, 2016: £5,107.2 million), revenue less pass-through costs of £4,236.7 million (2017: £4,535.3 million, 2016: £4,359.7 million) and Headline PBIT of £761.6 million (2017: £890.3 million, 2016: £849.4 million). 4 Revenue less pass-through costs is revenue less media, data collection and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media and data collection costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. 5 See note 29 for a reconciliation of PBIT to headline PBIT. 6 Headline PBIT margin is calculated as headline PBIT (defined above) as a percentage of revenue less pass-through costs. Previously referred to as revenue less pass-through costs margin. 2018 £m 2017 £m Non-current assets 1 North America 2 7,269.7 7,667.5 UK 2,079.2 2,098.2 Western Continental Europe 4,385.6 4,542.1 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 4,028.4 4,035.8 17,762.9 18,343.6 Note 1 Non-current assets excluding financial instruments and deferred tax. 2 North America includes the US with non-current assets of £6,791.9 million (2017: £7,202.7 million). |
Costs of services and general a
Costs of services and general and administrative costs | 12 Months Ended |
Dec. 31, 2018 | |
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Costs of services and general and administrative costs | 3. Costs of services and general and administrative costs 2018 £m 2017 1 £m 2016 1 £m Costs of services 12,663.5 12,629.0 11,846.5 General and administrative costs 1,507.5 1,267.0 977.7 14,171.0 13,896.0 12,824.2 Costs of services and general and administrative costs include: 2018 £m 2017 1 £m 2016 1 £m Staff costs (note 5) 8,172.6 8,319.0 7,784.9 Establishment costs 871.7 888.6 836.5 Media pass-through costs 1,458.0 1,429.4 1,276.2 Data collection pass-through costs 609.2 646.4 669.8 Other costs of services and general and administrative costs 2 3,059.5 2,612.6 2,256.8 14,171.0 13,896.0 12,824.2 Other costs of services and general and administrative costs include: Goodwill impairment (note 12) 183.9 27.1 27.0 Investment write-downs 2.0 95.9 86.1 Restructuring and transformation costs 302.3 56.8 27.4 Amortisation and impairment of acquired intangible assets (note 12) 280.0 195.1 168.4 Amortisation of other intangible assets (note 12) 38.7 36.3 38.6 Depreciation of property, plant and equipment 225.1 230.7 215.2 Losses on sale of property, plant and equipment 0.6 1.1 0.8 Gains on disposal of investments and subsidiaries (235.5 ) (129.0 ) (44.3 ) (Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership (2.0 ) 0.3 (232.4 ) Net foreign exchange (gains)/losses (13.2 ) 12.9 (17.0 ) Notes 1 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. 2 Other costs of services and general and administrative costs include £708.6 million (2017: £558.8 million, 2016: £512.7 million) of other pass-through costs. In 2018, operating profit includes credits totalling £29.9 million (2017: £44.8 million, 2016: £26.3 million) relating to the release of excess provisions and other balances established in respect of acquisitions completed prior to 2017. Further details of the Group’s approach to acquisition reserves, as required by IFRS 3 Business Combinations, are given in note 27. The goodwill impairment charge of £183.9 million (2017: £27.1 million, 2016: £27.0 million) primarily relates to a charge of £148.0 million on VMLY&R, with the remaining £35.9 million relating to a number of under-performing businesses in the Group. In certain markets, the impact of current, local economic conditions and trading circumstances on these businesses is sufficiently severe to indicate impairment to the carrying value of goodwill. Investment write-downs of £95.9 million in 2017 (2016: £86.1 million) include £53.1 million in relation to comScore Inc, which had not released any financial statements in relation to its 2015, 2016 or 2017 results due to an internal investigation by their Audit Committee. In 2017, the market value of comScore Inc fell below the Group’s carrying value. Other investment write-downs relate to certain non-core minority investments in the US where forecast financial performance and/or liquidity issues indicate a permanent decline in the recoverability of the Group’s investment. In 2018, restructuring and transformation costs of £302.3 million comprise £210.3 million of restructuring costs and £92.0 million transformation costs with respect to strategic initiatives such as co-locations in major cities, IT transformation and shared services. In the fourth quarter of 2018, £234.0 million of restructuring and transformation costs were incurred in relation to the strategic review of the Group’s operations, as outlined in the investor day on 11 December 2018. As part of that review, restructuring actions have been taken to right-size underperforming businesses, address high cost severance markets and simplify operational structures. Further restructuring and transformation costs will be incurred in 2019, 2020 and 2021. The remaining £68.3 million primarily relates to restructuring costs recorded in the first half and transformation costs in relation to the continuing global IT transformation programme. In 2017, restructuring and transformation costs of £56.8 million (2016: £27.4 million) predominantly comprise £33.7 million (2016: £nil) of severance costs arising from a structural assessment of certain of the Group’s operations, primarily in the mature markets; and £12.8 million (2016: £27.4 million) of costs resulting from the project to transform and rationalise the Group’s IT services and infrastructure including costs relating to the cyber attack in June 2017. Gains on disposal of investments and subsidiaries of £235.5 million in 2018 (2017: £129.0 million, 2016: £44.3 million) include £185.3 million gains on the disposal of the Group’s interest in Globant S.A. Gains in 2017 include £92.3 million on the sale of the Group’s equity interest in Asatsu-DK Inc following its acquisition by Bain Capital. In 2016, gains on remeasurement of equity interests arising from a change in scope of ownership of £232.4 million primarily comprise gains in relation to the reclassification of the Group’s interest in the Imagina Group in Spain from other investments to interests in associates, resulting from WPP attaining significant influence in the period. Auditors’ remuneration: 2018 2017 2016 Fees payable to the Company’s auditors for the audit of the Company’s annual accounts 1.4 1.4 1.4 The audit of the Company’s subsidiaries pursuant to legislation 21.7 20.7 19.4 Other services pursuant to legislation 4.2 4.0 3.7 Fees payable to the auditors pursuant to legislation 27.3 26.1 24.5 Tax advisory services – 0.1 1.6 Tax compliance services 0.1 0.1 1.3 Corporate finance services – – 0.1 Other services 1 4.7 4.6 5.7 Total non-audit fees 4.8 4.8 8.7 Total fees 32.1 30.9 33.2 Note 1 Other services include audits for earnout purposes. 2018 2017 2016 Operating lease rentals: Land and buildings 585.3 586.6 556.1 Sublease income (25.4 ) (17.9 ) (11.6 ) 559.9 568.7 544.5 Plant and machinery 10.6 11.9 10.6 570.5 580.6 555.1 Minimum committed annual rentals Amounts payable in 2019 under leases will be as follows: Plant and machinery Land and buildings 2019 2018 2017 2019 2018 2017 In respect of operating leases which expire: – within one year 3.6 5.1 4.0 70.2 88.6 85.1 – within two to five years 19.2 10.8 10.5 272.7 236.2 287.9 – after five years 0.4 0.1 – 246.3 207.8 187.0 23.2 16.0 14.5 589.2 532.6 560.0 Future minimum annual amounts payable under all lease commitments in existence at 31 December 2018 are as follows: Minimum Less lease- 1 Minimum Less sub-let Net payment £m Year ending 31 December 2019 612.4 (54.2 ) 558.2 (11.5 ) 546.7 2020 475.0 (51.0 ) 424.0 (6.4 ) 417.6 2021 415.3 (47.3 ) 368.0 (4.9 ) 363.1 2022 362.4 (44.8 ) 317.6 (4.3 ) 313.3 2023 323.4 (43.1 ) 280.3 (3.1 ) 277.2 Later years 2,074.1 (362.5 ) 1,711.6 (1.3 ) 1,710.3 4,262.6 (602.9 ) 3,659.7 (31.5 ) 3,628.2 Note 1 Lease-related |
Share of results of associates
Share of results of associates | 12 Months Ended |
Dec. 31, 2018 | |
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Share of results of associates | 4. Share of results of associates Share of results of associates include: 2018 2017 2016 Share of profit before interest and taxation 123.8 145.1 97.1 Share of exceptional (losses)/gains (41.7 ) 0.8 (15.2 ) Share of interest and non-controlling interests (9.7 ) (7.8 ) (4.7 ) Share of taxation (28.9 ) (24.6 ) (27.4 ) 43.5 113.5 49.8 |
Our people
Our people | 12 Months Ended |
Dec. 31, 2018 | |
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Our people | 5. Our people Our staff numbers averaged 133,903 for the year ended 31 December 2018 against 134,428 in 2017 and 132,657 in 2016. Their geographical distribution was as follows: 2018 2017 2016 North America 25,990 27,399 27,246 UK 14,331 14,197 14,070 Western Continental Europe 26,825 25,700 24,996 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 66,757 67,132 66,345 133,903 134,428 132,657 Their reportable segment distribution was as follows: 2018 2017 2016 Advertising and Media Investment Management 55,421 56,789 55,120 Data Investment Management 28,309 28,629 29,279 Public Relations & Public Affairs 9,048 9,082 9,054 Brand Consulting, Health & Wellness and Specialist Communications 41,125 39,928 39,204 133,903 134,428 132,657 At the end of 2018, staff numbers were 134,281 (2017: 134,413, 2016: 134,341). Staff costs include: 2018 £m 2017 £m 2016 £m Wages and salaries 5,710.0 5,832.3 5,395.6 Cash-based incentive plans 240.7 219.2 260.2 Share-based incentive plans (note 21) 84.8 105.0 106.5 Social security costs 717.5 720.3 658.1 Pension costs (note 22) 191.2 192.0 178.1 Severance 37.5 39.5 34.5 Other staff costs 1 1,190.9 1,210.7 1,151.9 8,172.6 8,319.0 7,784.9 Note 1 Freelance and temporary staff costs are included in other staff costs. Included above are charges of £2.0 million (2017: £12.3 million, 2016: £15.5 million) for share-based incentive plans in respect of key management personnel (who comprise the Directors of the Group). Total compensation received by key management personnel in respect of 2018 was £6.2 million (2017: £17.8 million, 2016: £57.5 million) of which £0.4 million (2017: £0.7 million, 2016: £0.7 million) were pension contributions. The value of the EPSP awards, which vest in the year following the end of the five-year performance period, is included in total compensation in the year the relevant five-year performance period ends. |
Finance income, finance costs a
Finance income, finance costs and revaluation of financial instruments | 12 Months Ended |
Dec. 31, 2018 | |
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Finance income, finance costs and revaluation of financial instruments | 6. Finance income, finance costs and revaluation of financial instruments Finance income includes: 2018 £m 2017 £m 2016 £m Income from equity investments 15.4 16.8 12.5 Interest income 89.4 78.4 67.9 104.8 95.2 80.4 Finance costs include: 2018 £m 2017 £m 2016 £m Net interest expense on pension plans (note 22) 4.4 6.3 6.7 Interest on other long-term employee benefits 4.0 3.9 2.7 Interest expense and similar charges 1 280.9 259.6 245.1 289.3 269.8 254.5 Revaluation of financial instruments include: 2018 2017 2016 Movements in fair value of treasury instruments (12.4 ) 1.1 (19.5 ) Revaluation of investments held at fair value through profit or loss 68.2 – – Revaluation of put options over non-controlling interests 34.5 52.5 (17.2 ) Revaluation of payments due to vendors (earnout agreements) 82.6 208.6 (11.6 ) 172.9 262.2 (48.3 ) Note 1 Interest expense and similar charges are payable on bank overdrafts, bonds and bank loans held at amortised cost. The majority of the Group’s long-term debt is represented by $2,784 million of US dollar bonds at an average interest rate of 4.46%, € 3,700 million of Eurobonds at an average interest rate of 1.64% and £600 million of Sterling bonds at an average interest rate of 4.04%. Average borrowings under the US Dollar Revolving Credit Facilities (note 10) amounted to the equivalent of $125 million at an average interest rate of 0.96% (2017: $715 million at an average interest rate of 0.78%). Average borrowings under the Australian dollar Revolving Credit Facilities, amounted to A$439 million at an average rate of 3.27% (2017: A$412 million at an average rate of 3.24%). Average borrowings under the US Commercial Paper Programme for 2018 amounted to $540 million at an average interest rate of 2.28% inclusive of margin (2017: $860 million at an average interest rate of 1.47% inclusive of margin). |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2018 | |
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Taxation | 7. Taxation In 2018, the effective tax rate on profit before taxation was 22.1% (2017: 9.3%, 2016: 20.6%) On 22 December 2017, The Tax Cuts and Jobs Act was enacted in the US which reduced the federal tax rate from 35% to 21% from 1 January 2018. As a result, deferred tax assets and liabilities were remeasured at the end of 2017, leading to a non-cash credit to the income statement of £234.1 million, partially offset by a one-time deemed repatriation tax charge related to unremitted foreign earnings of £28.1 million, payable over eight years. The tax charge comprises: 2018 £m 2017 £m 2016 £m Corporation tax Current year 481.9 523.4 569.4 Prior years (111.8 ) (98.6 ) (80.3 ) 370.1 424.8 489.1 Deferred tax Current year (49.0 ) (235.2 ) (88.0 ) Prior years 2.8 7.4 (12.2 ) (46.2 ) (227.8 ) (100.2 ) Tax charge 323.9 197.0 388.9 The corporation tax credit for prior years in 2018, 2017 and 2016, mainly comprises the release of a number of provisions following the resolution of tax matters in various countries. The tax charge for the year can be reconciled to profit before taxation in the consolidated income statement as follows: 2018 £m 2017 £m 2016 £m Profit before taxation 1,463.3 2,109.3 1,890.5 Tax at the corporation tax rate of 19.0% 1 278.0 406.0 378.1 Tax effect of share of results of associates (8.3 ) (21.8 ) (10.0 ) Irrecoverable withholding taxes 55.9 37.0 36.3 Items that are not deductible/(taxable) in determining taxable profit 28.7 (3.9 ) 9.4 Effect of different tax rates in subsidiaries operating in other jurisdictions 90.2 140.3 60.4 US Transition Tax related to unremitted foreign earnings (7.3 ) 28.1 – Effect of change in US tax rate on deferred tax balances – (234.1 ) – Origination and reversal of unrecognised temporary differences 7.5 (17.2 ) (4.3 ) Tax losses not recognised or utilised in the year 22.3 32.5 52.2 Utilisation of tax losses not previously recognised (25.6 ) (10.4 ) (11.3 ) Recognition of temporary differences not previously recognised (8.4 ) (68.3 ) (29.4 ) Net release of prior year provisions in relation to acquired businesses (20.4 ) (15.0 ) (23.3 ) Other prior year adjustments (88.7 ) (76.2 ) (69.2 ) Tax charge 323.9 197.0 388.9 Effective tax rate on profit before tax 22.1% 9.3% 20.6% Note 1 The Parent Company of the Group is tax resident in the UK. As the Group is subject to the tax rates of more than one country, it has chosen to present its reconciliation of the tax charge using the UK corporation tax rate of 19% (2017: 19.25%, 2016: 20%). Factors affecting the tax charge in future years Given the Group’s geographic mix of profits and the changing international tax environment, the tax rate is expected to increase slightly over the next few years. Factors that may affect the Group’s future tax charge include the levels and mix of profits in the many countries in which we operate, the prevailing tax rates in each of those countries and also the foreign exchange rates that apply to those profits. The tax charge may also be affected by the impact of acquisitions, disposals and other corporate restructurings, the resolution of open tax issues, future planning, and the ability to use brought forward tax losses. Furthermore, changes in local or international tax rules, for example prompted by the OECD’s Base Erosion and Profit Shifting project (a global initiative to improve the fairness and integrity of tax systems), or new challenges by tax or competition authorities, for example, the European Commission’s state aid investigation into Group Financing Exemption in the UK CFC rules announced in October 2017, may expose us to additional tax liabilities or impact the carrying value of our deferred tax assets, which would affect the future tax charge. The Group has a number of open tax returns and various ongoing tax audits worldwide but does not currently expect material additional tax exposures to arise, above the amounts provided, as and when the audits are concluded. Liabilities relating to these open and judgemental matters are based upon estimates of whether additional taxes will be due after taking into account external advice where appropriate. Where the final tax outcome of these matters is different from the amounts which were initially recorded then such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made. Tax risk management We maintain constructive engagement with the tax authorities and relevant government representatives, as well as active engagement with a wide range of international companies and business organisations with similar issues. We engage advisors and legal counsel to obtain opinions on tax legislation and principles. We have a Tax Risk Management Strategy in place which sets out the controls established and our assessment procedures for decision-making and how we monitor tax risk. We monitor proposed changes in taxation legislation and ensure these are taken into account when we consider our future business plans. Our Directors are informed by management of any tax law changes, the nature and status of any significant ongoing tax audits, and other developments that could materially affect the Group’s tax position. |
Ordinary dividends
Ordinary dividends | 12 Months Ended |
Dec. 31, 2018 | |
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Ordinary dividends | 8. Ordinary dividends Amounts recognised as distributions to equity holders in the year: 2018 2017 2016 2018 2017 2016 Per share Pence per share £m £m £m 2017 Final dividend 37.30p 37.05p 28.78p 464.6 467.2 368.5 2018 Interim dividend 22.70p 22.70p 19.55p 282.8 284.3 248.0 60.00p 59.75p 48.33p 747.4 751.5 616.5 Proposed final dividend for the year ended 31 December 2018: 2018 2017 2016 Per share Pence per share Final dividend 37.30p 37.30p 37.05p The payment of dividends will not have any tax consequences for the Group. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2018 | |
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Earnings per share | 9. Earnings per share Basic EPS The calculation of basic EPS is as follows: 2018 2017 2016 Earnings 1 1,062.9 1,816.6 1,400.1 Average shares used in basic EPS calculation (m) 1,247.8 1,261.1 1,277.8 EPS 85.2 p 144.0 p 109.6 p Note 1 Earnings is equivalent to profit for the year attributable to equity holders of the parent. Diluted EPS The calculation of diluted EPS is as follows: 2018 2017 2016 Diluted earnings (£m) 1,062.9 1,816.6 1,400.1 Average shares used in diluted EPS calculation (m) 1,261.2 1,275.8 1,296.0 Diluted EPS 84.3 p 142.4 p 108.0 p Diluted EPS has been calculated based on the diluted earnings amounts above. At 31 December 2018, options to purchase 16.9 million ordinary shares (2017: 8.2 million, 2016: 8.4 million) were outstanding, but were excluded from the computation of diluted earnings per share because the exercise prices of these options were greater than the average market price of the Group’s shares and, therefore, their inclusion would have been accretive. A reconciliation between the shares used in calculating basic and diluted EPS is as follows: 2018 2017 2016 Average shares used in basic EPS calculation 1,247.8 1,261.1 1,277.8 Dilutive share options outstanding 1.6 1.8 2.4 Other potentially issuable shares 11.8 12.9 15.8 Shares used in diluted EPS calculation 1,261.2 1,275.8 1,296.0 At 31 December 2018 there were 1,332,678,227 (2017: 1,332,511,552, 2016: 1,331,880,730) ordinary shares in issue. |
Sources of finance
Sources of finance | 12 Months Ended |
Dec. 31, 2018 | |
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Sources of finance | 10. Sources of finance The following table summarises the equity and debt financing of the Group, and changes during the year: Shares Debt 2018 2017 2018 2017 Analysis of changes in financing Beginning of year 701.8 695.4 6,481.3 6,033.1 Ordinary shares issued 1.2 6.4 – – Net (decrease)/increase in drawings on bank loans and corporate bonds – – (440.6 ) 599.6 Amortisation of financing costs included in debt – – 7.7 8.0 Other movements – – (10.1 ) (6.9 ) Exchange adjustments – – 179.6 (152.5 ) End of year 703.0 701.8 6,217.9 6,481.3 Note The table above excludes bank overdrafts which fall within cash and cash equivalents for the purposes of the consolidated cash flow statement. Shares At 31 December 2018, the Company’s share base was entirely composed of ordinary equity share capital and share premium of £703.0 million (2017: £701.8 million), further details of which are disclosed in note 25. Debt US$ bonds Eurobonds € 600 million of 0.75% bonds due November 2019, € 750 million of 3% bonds due November 2023, € 750 million of 2.25% bonds due September 2026, € 600 million of 1.625% bonds due March 2030 and € 250 million of Floating Rate Notes carrying a coupon of 3m EURIBOR + 0.32% due May 2020. In March 2018, the Group issued € 250 million of Floating Rate Notes carrying a coupon of 3m EURIBOR + 0.45% due March 2022 and € 500 million of 1.375% bonds due March 2025. Sterling bonds Revolving Credit Facility Borrowings under the $2.5 billion Revolving Credit Facility are governed by certain financial covenants based on the results and financial position of the Group. Borrowings under the A$150 million Revolving Credit Facility and A$370 million Revolving Credit Facility are governed by certain financial covenants based on the results and financial position of WPP AUNZ. US Commercial Paper Program The Group operates a commercial paper programme using its Revolving Credit Facility as a backstop. The average commercial paper outstanding in 2018 was $540.0 million. There was no US Commercial Paper outstanding at 31 December 2018. The following table is an analysis of future anticipated cash flows in relation to the Group’s debt, on an undiscounted basis which, therefore, differs from the fair value and carrying value: 2018 £m 2017 £m Within one year (748.4 ) (391.7 ) Between one and two years (596.8 ) (896.3 ) Between two and three years (937.1 ) (584.3 ) Between three and four years (742.5 ) (1,537.8 ) Between four and five years (786.8 ) (487.9 ) Over five years (4,199.7 ) (4,519.1 ) Debt financing (including interest) under the Revolving Credit Facility and in relation to unsecured loan notes (8,011.3 ) (8,417.1 ) Short-term overdrafts – within one year (442.0 ) (393.2 ) Future anticipated cash flows (8,453.3 ) (8,810.3 ) Effect of discounting/financing rates 1,793.4 1,935.8 Debt financing (6,659.9 ) (6,874.5 ) Analysis of fixed and floating rate debt by currency including the effect of interest rate and cross-currency swaps: 2018 Currency £m Fixed 1 Floating Period 1 $ – fixed 1,154.8 4.58 n/a 181 – floating 1,029.6 n/a LIBOR n/a £ – fixed 1,044.1 3.43 n/a 232 € – fixed 2,425.9 1.99 n/a 75 – floating 449.2 n/a EURIBOR n/a Other 114.3 n/a n/a n/a 6,217.9 2017 Currency £m Fixed 1 Floating Period 1 $ – fixed 1,146.1 4.62% n/a 199 – floating 1,760.9 n/a LIBOR n/a £ – fixed 600.0 4.04% n/a 245 € – fixed 2,623.9 1.85% n/a 80 – floating 222.2 n/a EURIBOR n/a Other 128.2 n/a n/a n/a 6,481.3 Note 1 Weighted average. These rates do not include the effect of gains on interest rate swap terminations that are written to income over the life of the original instrument. The following table is an analysis of future anticipated cash flows in relation to the Group’s financial derivatives, which include interest rate swaps, forward contracts and other foreign exchange swaps: Financial liabilities Financial assets 2018 Payable Receivable Payable Receivable Within one year 229.3 221.9 124.6 120.6 Between one and two years 50.0 45.3 11.8 6.5 Between two and three years 688.4 685.3 11.5 6.4 Between three and four years 408.5 406.6 11.6 6.5 Between four and five years – – 11.6 6.6 Over five years – – 461.4 498.2 1,376.2 1,359.1 632.5 644.8 Financial liabilities Financial assets 2017 Payable Receivable Payable Receivable Within one year 97.8 96.7 123.7 128.8 Between one and two years 21.4 20.1 38.6 38.8 Between two and three years 20.5 18.8 39.5 38.6 Between three and four years 20.7 18.6 851.7 851.0 Between four and five years 523.5 521.1 – – Over five years – – – – 683.9 675.3 1,053.5 1,057.2 |
Analysis of cash flows
Analysis of cash flows | 12 Months Ended |
Dec. 31, 2018 | |
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Analysis of cash flows | 11. Analysis of cash flows The following tables analyse the items included within the main cash flow headings on page F-13. Net cash from operating activities: 2018 2017 2016 Profit for the year 1,139.4 1,912.3 1,501.6 Taxation 323.9 197.0 388.9 Revaluation of financial instruments (172.9 ) (262.2 ) 48.3 Finance costs 289.3 269.8 254.5 Finance income (104.8 ) (95.2 ) (80.4 ) Share of results of associates (43.5 ) (113.5 ) (49.8 ) Adjustments for: Non-cash share-based incentive plans (including share options) 84.8 105.0 106.5 Depreciation of property, plant and equipment 225.1 230.7 220.8 Impairment of goodwill 183.9 27.1 27.0 Amortisation and impairment of acquired intangible assets 280.0 195.1 168.4 Amortisation of other intangible assets 38.7 36.3 38.6 Investment write-downs 2.0 95.9 86.1 Gains on disposal of investments and subsidiaries (235.5 ) (129.0 ) (44.3 ) (Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership (2.0 ) 0.3 (232.4 ) Losses on sale of property, plant and equipment 0.6 1.1 0.8 Increase in trade receivables and accrued income (298.9 ) (90.4 ) (70.4 ) Increase/(decrease) in trade payables and deferred income 500.9 (170.8 ) 188.7 (Increase)/decrease in other receivables (52.9 ) (110.6 ) 77.4 Decrease in other payables – short-term (31.8 ) (122.8 ) (303.7 ) Increase in other payables – long-term 0.4 20.1 4.5 Increase/(decrease) in provisions 48.0 (57.3 ) (47.8 ) Corporation and overseas tax paid (383.6 ) (424.7 ) (414.2 ) Interest and similar charges paid (252.8 ) (246.6 ) (242.1 ) Interest received 90.4 76.9 73.9 Investment income 15.4 16.8 12.5 Dividends from associates 49.7 46.8 60.4 Net cash inflow from operating activities 1,693.8 1,408.1 1,773.8 Acquisitions and disposals: 2018 2017 2016 Initial cash consideration (126.7 ) (214.8 ) (424.1 ) Cash and cash equivalents acquired (net) 1 (3.8 ) 28.9 57.3 Earnout payments (120.2 ) (199.1 ) (92.3 ) Purchase of other investments (including associates) (48.1 ) (92.5 ) (260.2 ) Acquisitions (298.8 ) (477.5 ) (719.3 ) Proceeds on disposal of investments and subsidiaries 2 849.0 296.0 80.5 Acquisitions and disposals 550.2 (181.5 ) (638.8 ) Cash consideration for non-controlling interests (109.9 ) (47.3 ) (58.3 ) Net cash inflow/(outflow) 440.3 (228.8 ) (697.1 ) Notes 1 In 2018, cash and cash equivalents acquired comprises £11.3 million from acquisitions offset by £15.1 million from disposals. 2 Proceeds on disposal of investments and subsidiaries includes return of capital from investments in associates. Share repurchases and buy-backs: 2018 2017 2016 Purchase of own shares by ESOP Trusts (102.8) (214.6) (152.9) Shares purchased into treasury (104.3 ) (289.6 ) (274.5 ) Net cash outflow (207.1 ) (504.2 ) (427.4 ) Net (decrease)/increase in borrowings: 2018 2017 2016 (Decrease)/increase in drawings on bank loans (819.3) 785.6 (30.4) Proceeds from issue of € 250 million bonds 218.8 214.0 – Proceeds from issue of € 500 million bonds 438.0 – – Repayment of € 252 million bonds (220.0 ) – – Partial repayment of $300 million bonds (20.8 ) – – Partial repayment of $500 million bonds (37.3 ) – – Repayment of £400 million bonds – (400.0 ) – Proceeds from issue of £400 million bonds – – 400.0 Repayment of € 498 million bonds – – (392.1 ) Net cash (outflow)/inflow (440.6 ) 599.6 (22.5 ) Cash and cash equivalents: 2018 2017 2016 Cash at bank and in hand 2,010.8 2,049.6 2,256.2 Short-term bank deposits 632.4 341.8 180.7 Overdrafts 1 (442.0 ) (393.2 ) (534.3 ) 2,201.2 1,998.2 1,902.6 Note 1 Bank overdrafts are included in cash and cash equivalents because they form an integral part of the Group’s cash management. The Group considers that the carrying amount of cash and cash equivalents approximates their fair value. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2018 | |
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Intangible assets | 12. Intangible assets Goodwill The movements in 2018 and 2017 were as follows: £m Cost: 1 January 2017 13,939.4 Additions 1 301.0 Revision of earnout estimates (60.7 ) Exchange adjustments (504.4 ) 31 December 2017 13,675.3 Additions 1 154.4 Revision of earnout estimates (68.3 ) Exchange adjustments 368.1 31 December 2018 14,129.5 Accumulated impairment losses and write-downs: 1 January 2017 725.1 Impairment losses for the year 27.1 Exchange adjustments (29.8 ) 31 December 2017 722.4 Impairment losses for the year 183.9 Exchange adjustments 20.4 31 December 2018 926.7 Net book value: 31 December 2018 13,202.8 31 December 2017 12,952.9 1 January 2017 13,214.3 Note 1 Additions represent goodwill arising on the acquisition of subsidiary undertakings including the effect of any revisions to fair value adjustments that had been determined provisionally at the immediately preceding balance sheet date, as permitted by IFRS 3 Business Combinations. The effect of such revisions was not material in either year presented. Goodwill arising on the acquisition of associate undertakings is shown within interests in associates and joint ventures in note 14. Cash-generating units with significant goodwill as at 31 December are: 2018 2017 GroupM 2,942.9 2,906.7 Kantar 2,522.9 2,518.2 Wunderman 1,581.2 1,514.5 VMLY&R 930.4 1,091.8 Other 5,225.4 4,921.7 Total goodwill 13,202.8 12,952.9 Other goodwill represents goodwill on a large number of cash-generating units, none of which is individually significant in comparison to the total carrying value of goodwill. Other intangible assets The movements in 2018 and 2017 were as follows: Brands Acquired Other Total Cost: 1 January 2017 1,141.3 2,535.5 404.1 4,080.9 Additions – – 37.3 37.3 Disposals – – (15.8 ) (15.8 ) New acquisitions – 79.0 0.8 79.8 Other movements 1 – 6.4 7.2 13.6 Exchange adjustments (60.0 ) (73.1 ) (22.1 ) (155.2 ) 31 December 2017 1,081.3 2,547.8 411.5 4,040.6 Additions – – 60.4 60.4 Disposals – (0.9 ) (37.3 ) (38.2 ) New acquisitions – 40.3 – 40.3 Other movements 1 – 2.9 (7.4 ) (4.5 ) Exchange adjustments 51.5 19.9 10.1 81.5 31 December 2018 1,132.8 2,610.0 437.3 4,180.1 Amortisation and impairment: 1 January 2017 – 1,563.0 300.6 1,863.6 Charge for the year – 189.4 36.3 225.7 Disposals – – (14.9 ) (14.9 ) Other movements – – 2.5 2.5 Exchange adjustments – (33.7 ) (21.0 ) (54.7 ) 31 December 2017 – 1,718.7 303.5 2,022.2 Charge for the year – 275.8 38.7 314.5 Disposals – (0.7 ) (27.3 ) (28.0 ) Other movements – – (1.9 ) (1.9 ) Exchange adjustments – 21.4 9.9 31.3 31 December 2018 – 2,015.2 322.9 2,338.1 Net book value: 31 December 2018 1,132.8 594.8 114.4 1,842.0 31 December 2017 1,081.3 829.1 108.0 2,018.4 1 January 2017 1,141.3 972.5 103.5 2,217.3 Note 1 Other movements in acquired intangibles include revisions to fair value adjustments arising on the acquisition of subsidiary undertakings that had been determined provisionally at the immediately preceding balance sheet date, as permitted by IFRS 3 Business Combinations. Brands with an indefinite life are carried at historical cost in accordance with the Group’s accounting policy for intangible assets. The carrying values of the separately identifiable brands are not individually significant in comparison with the total carrying value of brands with an indefinite useful life. Acquired intangible assets at net book value at 31 December 2018 include brand names of £361.2 million (2017: £445.6 million), customer-related intangibles of £220.6 million (2017: £360.9 million), and other assets (including proprietary tools) of £13.0 million (2017: £22.6 million). The total amortisation and impairment of acquired intangible assets of £280.0 million (2017: £195.1 million) includes an impairment charge of £126.1 million (2017: £6.0 million) comprising £58.6 million in regard to certain brand names that are no longer in use and £67.5 million in regard to customer relationships where the underlying clients have been lost. £70.6 million of the impairment charge relates to the Advertising and Media Investment Management segment, £38.2 million relates to the Data Investment Management segment, and £17.3 million relates to the Brand Consulting, Health & Wellness and Specialist Communications segment. In addition, the total amortisation and impairment of acquired intangible assets includes £4.2 million (2017: £5.7 million) in relation to associates. In accordance with the Group’s accounting policy, the carrying values of goodwill and intangible assets with indefinite useful lives are reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment review is undertaken annually on 30 September. The review assessed whether the carrying value of goodwill and intangible assets with indefinite useful lives was supported by the net present value of future cash flows, using a pre-tax discount rate of 9.0% (2017: 8.5%) and management forecasts for a projection period of up to five years, followed by an assumed annual long-term growth rate of 3.0% (2017: 3.0%) and no assumed improvement in operating margin. Management have made the judgement that this long-term growth rate does not exceed the long-term average growth rate for the industry. The goodwill impairment charge of £183.9 million (2017: £27.1 million) primarily relates to a charge of £148.0 million on VMLY&R, driven by challenges in the advertising businesses in the Advertising and Media Investment Management segment. The recoverable amount for the VMLY&R cash-generating unit is £1,327.3 million. It is based on a value in use calculation, assuming a pre-tax discount rate of 8.7% specific to VMLY&R. A pre-tax discount rate of 8.5% was used in the prior year. The cash-generating unit includes goodwill, intangible assets, and other assets. The remaining £35.9 million relates to a number of under-performing businesses in the Group. In certain markets, the impact of local economic conditions and trading circumstances on these businesses was sufficiently severe to indicate impairment to the carrying value of goodwill. The VMLY&R impairment review is sensitive to changes in the assumptions used, most notably to changes in the discount rate, terminal growth rate and terminal margin. A summary of the movements in the impairment charge from a change in these assumptions is as follows: – 0.1% movement in the discount rate would increase or decrease the impairment charge by £23 million; – 0.1% movement in the terminal growth rate would increase or decrease the impairment charge by £19 million; and – 0.1% movement in terminal margin would increase or decrease the impairment charge by £8 million. Under IFRS, an impairment charge is required for both goodwill and other indefinite-lived assets when the carrying amount exceeds the ‘recoverable amount’, defined as the higher of fair value less costs to sell and value in use. Our approach in determining the recoverable amount utilises a discounted cash flow methodology, which necessarily involves making numerous estimates and assumptions regarding revenue growth, operating margins, appropriate discount rates and working capital requirements. The key assumptions used for estimating cash flow projections in the Group’s impairment testing are those relating to revenue growth and operating margin. The key assumptions take account of the businesses’ expectations for the projection period. These expectations consider the macroeconomic environment, industry and market conditions, the unit’s historical performance and any other circumstances particular to the unit, such as business strategy and client mix. These estimates will likely differ from future actual results of operations and cash flows, and it is possible that these differences could be material. In addition, judgements are applied in determining the level of cash-generating unit identified for impairment testing and the criteria used to determine which assets should be aggregated. A difference in testing levels could affect whether an impairment is recorded and the extent of impairment loss. For the 2018 impairment review, certain assets previously aggregated with the VMLY&R cash-generating unit have been realigned to other cash-generating units as part of the overall effort to simplify operations and become more client-centric. Changes in our business activities or structure may also result in additional changes to the level of testing in future periods. Further, future events could cause the Group to conclude that impairment indicators exist and that the asset values associated with a given operation have become impaired. Any resulting impairment loss could have a material impact on the Group’s financial condition and results of operations. Historically our impairment losses have resulted from a specific event, condition or circumstance in one of our companies, such as the loss of a significant client. As a result, changes in the assumptions used in our impairment model have not had a significant effect on the impairment charges recognised and a reasonably possible change in assumptions would not lead to a significant impairment, except for VMLY&R as discussed above. The carrying value of goodwill and other intangible assets will continue to be reviewed at least annually for impairment and adjusted down to the recoverable amount if required. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2018 | |
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Property, plant and equipment | 13. Property, plant and equipment The movements in 2018 and 2017 were as follows: Land Freehold buildings Leasehold buildings Fixtures, Computer Total Cost: 1 January 2017 37.1 126.4 1,012.5 402.6 743.4 2,322.0 Additions – 4.3 165.0 31.7 87.9 288.9 New acquisitions – – 2.0 2.4 1.1 5.5 Disposals – (1.2 ) (46.1 ) (40.7 ) (54.6 ) (142.6 ) Exchange adjustments – (10.7 ) (51.6 ) (18.8 ) (74.8 ) (155.9 ) 31 December 2017 37.1 118.8 1,081.8 377.2 703.0 2,317.9 Additions – 17.7 161.4 49.9 85.8 314.8 New acquisitions – 0.1 0.9 1.2 0.9 3.1 Disposals – – (83.5 ) (62.9 ) (109.3 ) (255.7 ) Exchange adjustments – (1.1 ) 41.8 9.9 10.0 60.6 31 December 2018 37.1 135.5 1,202.4 375.3 690.4 2,440.7 Depreciation: 1 January 2017 – 25.2 509.8 240.0 578.3 1,353.3 Charge for the year – 6.9 86.7 47.0 90.1 230.7 Disposals – (1.9 ) (42.6 ) (35.9 ) (54.4 ) (134.8 ) Exchange adjustments – (1.7 ) (27.8 ) (14.2 ) (67.1 ) (110.8 ) 31 December 2017 – 28.5 526.1 236.9 546.9 1,338.4 Charge for the year – 3.1 91.5 44.4 86.1 225.1 Disposals – – (74.6 ) (58.0 ) (107.9 ) (240.5 ) Exchange adjustments – (4.5 ) 24.3 6.4 8.5 34.7 31 December 2018 – 27.1 567.3 229.7 533.6 1,357.7 Net book value: 31 December 2018 37.1 108.4 635.1 145.6 156.8 1,083.0 31 December 2017 37.1 90.3 555.7 140.3 156.1 979.5 1 January 2017 37.1 101.2 502.7 162.6 165.1 968.7 At 31 December 2018, capital commitments contracted, but not provided for in respect of property, plant and equipment were £28.4 million (2017: £137.2 million). |
Interests in associates, joint
Interests in associates, joint ventures and other investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments accounted for using equity method [abstract] | |
Interests in associates, joint ventures and other investments | 14. Interests in associates, joint ventures and other investments The movements in 2018 and 2017 were as follows: Interests in Other investments 1 January 2017 1,069.4 1,310.3 Additions 34.5 67.7 Share of results of associate undertakings (note 4) 113.5 – Dividends (46.8 ) – Other movements 3.4 – Reclassification from other investments to associates 57.1 (57.1 ) Exchange adjustments (10.6 ) (106.1 ) Disposals (139.1 ) (1.7 ) Reclassification to subsidiaries (6.3 ) – Revaluation of other investments – 32.1 Amortisation of other intangible assets (5.7 ) – Write-downs (4.2 ) (91.7 ) 31 December 2017 1,065.2 1,153.5 Additions 16.7 35.0 Share of results of associate undertakings (note 4) 43.5 – Dividends (49.7 ) – Other movements 1.2 – Reclassification from other investments to associates 0.3 (0.3 ) Exchange adjustments 12.9 – Disposals (304.0 ) (341.7 ) Reclassification to subsidiaries 16.9 – Revaluation of other investments through profit or loss – 68.1 Revaluation of other investments through other comprehensive income – (247.9 ) Amortisation of other intangible assets (4.2 ) – Write-downs (2.0 ) – 31 December 2018 796.8 666.7 The investments included above as ‘other investments’ represent investments in equity securities that present the Group with opportunity for return through dividend income and trading gains. They have no fixed maturity or coupon rate. The fair values of the listed securities are based on quoted market prices. For unlisted securities, where market value is not available, the Group has estimated relevant fair values on the basis of publicly available information from outside sources. The carrying values of the Group’s associates and joint ventures are reviewed for impairment in accordance with the Group’s accounting policies. The Group’s principal associates and joint ventures at 31 December 2018 included: % Country of Barrows Design and Manufacturing (Pty) Limited 35.0 South Africa Chime Communications Ltd 24.9 UK CVSC Sofres Media Co Limited 40.0 China Dat Viet VAC Media Corporation 30.0 Vietnam GIIR Inc 30.0 Korea Haworth Marketing & Media Company 49.0 USA High Co SA 34.1 France Imagina 22.5 Spain Marktest Investimentos SGPS S.A. 40.0 Portugal Nanjing Yindu Ogilvy Advertising Co. Ltd 49.0 China Richard Attias and Associates 1 49.0 USA Smollan Holdings (Pty) Ltd 24.8 South Africa Note 1 The Group sold its shareholding in Richard Attias and Associates in January 2019. The market value of the Group’s shares in its principal listed associate undertakings at 31 December 2018 was as follows: GIIR Inc: £26.3 million, and High Co SA: £30.3 million (2017: GIIR Inc: £35.4 million and High Co SA: £33.3 million). The carrying value (including goodwill and other intangibles) of these equity interests in the Group’s consolidated balance sheet at 31 December 2018 was as follows: GIIR Inc: £46.8 million and High Co SA: £37.1 million (2017: GIIR Inc: £41.6 million and High Co SA: £34.5 million). Where the market value of the Group’s listed associates is less than the carrying value, an impairment review is performed utilising the discounted cash flow methodology discussed in note 12. The Group’s investments in its principal associate undertakings are represented by ordinary shares. Summarised financial information The following tables present a summary of the aggregate financial performance and net asset position of the Group’s associate undertakings and joint ventures. These have been estimated and converted, where appropriate, to an IFRS presentation based on information provided by the relevant companies at 31 December 2018. 2018 £m 2017 £m 2016 £m Income statement Revenue 3,685.8 3,800.8 2,254.5 Operating profit 378.4 440.4 308.3 Profit before taxation 194.7 381.9 237.2 Profit for the year 118.1 312.5 156.7 Balance sheet Assets 2,940.9 3,192.9 4,223.1 Liabilities (1,570.6 ) (1,633.7 ) (1,900.0 ) Net assets 1,370.3 1,559.2 2,323.1 The application of equity accounting is ordinarily discontinued when the investment is reduced to zero and additional losses are not provided for unless the Group has guaranteed obligations of the investee or is otherwise committed to provide further financial support for the investee. At 31 December 2018, capital commitments contracted, but not provided for in respect of interests in associates and other investments were £31.4 million (2017: £54.2 million). |
Deferred tax
Deferred tax | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Deferred tax | 15. Deferred tax The Group’s deferred tax assets and liabilities are measured at the end of each period in accordance with IAS 12 Income taxes. The recognition of deferred tax assets is determined by reference to the Group’s estimate of recoverability, using models where appropriate to forecast future taxable profits. Deferred tax assets have only been recognised for territories where the Group considers that it is probable that all or a portion of the deferred tax assets will be realised. The main factors that we consider include: – the future earnings potential determined through the use of internal forecasts; – the cumulative losses in recent years; – the various jurisdictions in which the potential deferred tax assets arise; – the history of losses carried forward and other tax assets expiring; – the timing of future reversal of taxable temporary differences; – the expiry period associated with the deferred tax assets; and – the nature of the income that can be used to realise the deferred tax asset. If it is probable that some portion of these assets will not be realised, then no asset is recognised in relation to that portion. If market conditions improve and future results of operations exceed our current expectations, our existing recognised deferred tax assets may be adjusted, resulting in future tax benefits. Alternatively, if market conditions deteriorate further or future results of operations are less than expected, future assessments may result in a determination that some or all of the deferred tax assets are not realisable. As a result, all or a portion of the deferred tax assets may need to be reversed. Certain deferred tax assets and liabilities have been offset as they relate to the same tax group. The following is the analysis of the deferred tax balances for financial reporting purposes: Gross £m Offset £m As £m Gross Offset As Deferred tax assets 412.0 (259.0 ) 153.0 411.8 (251.5 ) 160.3 Deferred tax liabilities (738.5 ) 259.0 (479.5 ) (765.2 ) 251.5 (513.7 ) (326.5 ) – (326.5 ) (353.4 ) – (353.4 ) The following are the major gross deferred tax assets recognised by the Group and movements thereon in 2018 and 2017: Deferred Accounting Retirement Property, Tax Share- Restructuring Other Total 1 January 2017 95.6 80.6 141.4 70.8 89.7 75.8 5.9 38.2 598.0 Acquisition of subsidiaries – – – – – – – 2.6 2.6 (Charge)/credit to income (5.5 ) 6.6 (10.2 ) 6.9 (34.4 ) (0.4 ) (1.5 ) (21.7 ) (60.2 ) Impact of US tax reform (30.8 ) (8.1 ) (29.1 ) (6.8 ) 23.1 (10.9 ) 1.6 (1.1 ) (62.1 ) Charge to other comprehensive income – – (20.9 ) – – – – – (20.9 ) Charge to equity – – – – – (27.3 ) – – (27.3 ) Exchange differences (5.8 ) 5.8 (5.6 ) (2.5 ) (5.7 ) (4.2 ) (0.2 ) (0.1 ) (18.3 ) 31 December 2017 53.5 84.9 75.6 68.4 72.7 33.0 5.8 17.9 411.8 Acquisition of subsidiaries – – – – – – – 2.0 2.0 Credit/(charge) to income 4.7 13.0 (11.2 ) (20.6 ) (8.9 ) (15.3 ) 10.7 11.0 (16.6 ) Charge to other comprehensive income – – (0.2 ) – – – – – (0.2 ) Charge to equity – – – – – (1.6 ) – – (1.6 ) Exchange differences 3.4 3.5 4.3 0.1 3.3 0.7 0.8 0.5 16.6 31 December 2018 61.6 101.4 68.5 47.9 67.1 16.8 17.3 31.4 412.0 Other temporary differences comprise a number of items including tax deductible goodwill, none of which is individually significant to the Group’s consolidated balance sheet. At 31 December 2018 the balance related to temporary differences in relation to revenue adjustments, tax deductible goodwill, fair value adjustments, and other temporary differences. In addition the Group has recognised the following gross deferred tax liabilities and movements thereon in 2018 and 2017: Brands Associate Goodwill Property, Financial Other Total £m 1 January 2017 755.9 28.3 232.5 36.2 64.0 33.1 1,150.0 Acquisition of subsidiaries 21.4 – – – – – 21.4 (Credit)/charge to income (49.9 ) (6.0 ) 0.7 (0.5 ) (3.3 ) 5.1 (53.9 ) Impact of US tax reform (203.8 ) – (76.3 ) (11.9 ) (22.2 ) 18.0 (296.2 ) Charge to other comprehensive income – – – – – 3.7 3.7 Exchange differences (34.4 ) (0.7 ) (16.5 ) (2.6 ) (2.3 ) (3.3 ) (59.8 ) 31 December 2017 489.2 21.6 140.4 21.2 36.2 56.6 765.2 Acquisition of subsidiaries 10.7 – – – – – 10.7 (Credit)/charge to income (68.8 ) (3.9 ) 31.8 (0.3 ) (0.9 ) (20.7 ) (62.8 ) Charge to other comprehensive income – – – – – 0.5 0.5 Exchange differences 7.5 (0.1 ) 10.1 1.3 4.6 1.5 24.9 31 December 2018 438.6 17.6 182.3 22.2 39.9 37.9 738.5 At the balance sheet date, the Group has gross tax losses and other temporary differences of £6,638.6 million (2017: £6,208.6 million) available for offset against future profits. Deferred tax assets have been recognised in respect of the tax benefit of £1,763.4 million (2017: £1,539.3 million) of such tax losses and other temporary differences. No deferred tax asset has been recognised in respect of the remaining £4,875.2 million (2017: £4,669.3 million) of losses and other temporary differences as the Group considers that there will not be enough taxable profits in the entities concerned such that any additional asset could be considered recoverable. Included in the total unrecognised temporary differences are losses of £46.4 million (2017: £56.5 million) that will expire within 1–10 years, and £4,572.6 million (2017: £4,421.5 million) of losses that may be carried forward indefinitely. At the balance sheet date, the aggregate amount of the temporary differences in relation to the investment in subsidiaries for which deferred tax liabilities have not been recognised was £1,768.5 million (2017: £3,898.0 million). No liability has been recognised in respect of these differences because the Group is in a position to control the timing of the reversal of the temporary differences and the Group considers that it is probable that such differences will not reverse in the foreseeable future. |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Trade and other receivables | 16. Trade and other receivables The following are included in trade and other receivables: Amounts falling due within one year: 2018 £m 2017 1 £m Trade receivables (net of bad debt provision) 8,062.2 7,889.7 Work in progress 366.5 401.1 VAT and sales taxes recoverable 264.2 202.3 Prepayments 287.3 298.3 Accrued income 3,541.2 3,205.8 Fair value of derivatives 1.3 1.0 Other debtors 578.8 532.5 13,101.5 12,530.7 Note 1 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. The ageing of trade receivables and other financial assets by due date is as follows: Past due but not impaired 2018 Carrying £m Neither 0-30 31-90 91-180 181 Greater Trade receivables 8,062.2 5,873.7 1,370.7 549.1 128.3 75.6 64.8 Other financial assets 551.7 424.9 61.3 14.2 8.6 7.7 35.0 8,613.9 6,298.6 1,432.0 563.3 136.9 83.3 99.8 Past due but not impaired 2017 Carrying £m Neither 0-30 31-90 91-180 181 Greater Trade receivables 7,889.7 5,466.6 1,629.6 577.0 143.0 48.8 24.7 Other financial assets 500.4 331.2 107.0 6.6 4.7 10.3 40.6 8,390.1 5,797.8 1,736.6 583.6 147.7 59.1 65.3 Other financial assets are included in other debtors. Past due amounts are not impaired where collection is considered likely. Amounts falling due after more than one year: 2018 2017 Prepayments 3.0 3.6 Accrued income 16.5 20.5 Fair value of derivatives 8.4 2.1 Other debtors 152.1 150.0 180.0 176.2 The Group has applied the practical expedient permitted by IFRS 15 to not disclose the transaction price allocated to performance obligations unsatisfied (or partially unsatisfied) as of the end of the reporting period as contracts typically have an original expected duration of a year or less. Bad debt provisions: 2018 2017 2016 £m At beginning of year 91.3 93.8 85.4 New acquisitions 1.5 1.2 1.8 Charged to the income statement 66.7 27.4 15.5 Released to the income statement (11.6 ) (8.4 ) (6.3 ) Exchange adjustments 2.1 (4.1 ) 13.7 Utilisations and other movements (33.4 ) (18.6 ) (16.3 ) At end of year 116.6 91.3 93.8 The allowance for bad and doubtful debts is equivalent to 1.4% (2017: 1.1%, 2016: 1.2%) of gross trade accounts receivables. The requirement to use an expected loss method of impairment of financial assets on adoption of IFRS 9 on 1 January 2018 did not have a material impact on the Group. The Group has applied the simplified approach to measuring expected credit losses, as permitted by IFRS 9, and recognises a loss allowance based on the financial asset’s lifetime expected credit loss. Based on the aging of the invoice, the loss allowance at 31 December 2018 and 1 January 2018 (on adoption of IFRS 9) is as follows: 31 December 2018 £m 0-90 91-180 181 Over Gross trade receivables 8,178.9 7,621.9 381.5 86.5 89.0 Loss allowance 116.6 11.3 3.8 39.2 62.3 Expected loss rate 1.4% 0.1% 1.0% 45.3% 70.0% 1 January 2018 £m 0-90 91-180 181 Over Gross trade receivables 7,981.0 7,392.6 425.6 78.6 84.2 Loss allowance 91.3 2.9 2.8 24.2 61.4 Expected loss rate 1.1% – 0.7% 30.8% 73.0% Impairment losses on work in progress and accrued income were immaterial for the years presented. The Group considers that the carrying amount of trade and other receivables approximates their fair value. |
Trade and other payables_ amoun
Trade and other payables: amounts falling due within one year | 12 Months Ended |
Dec. 31, 2018 | |
Within one year [member] | |
Statement [LineItems] | |
Trade and other payables: amounts falling due within one year | 17. Trade and other payables: amounts falling due within one year The following are included in trade and other payables falling due within one year: 2018 £m 2017 £m Trade payables 10,524.3 9,893.0 Deferred income 1,253.6 1,212.1 Payments due to vendors (earnout agreements) 148.2 180.7 Liabilities in respect of put option agreements with vendors 36.8 38.6 Fair value of derivatives 2.6 3.5 Other creditors and accruals 3,072.9 2,913.2 15,038.4 14,241.1 The Group considers that the carrying amount of trade and other payables approximates their fair value. |
Trade and other payables_ amo_2
Trade and other payables: amounts falling due after more than one year | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Trade and other payables: amounts falling due after more than one year | 18. Trade and other payables: amounts falling due after more than one year The following are included in trade and other payables falling due after more than one year: 2018 2017 Payments due to vendors (earnout agreements) 266.5 450.0 Liabilities in respect of put option agreements with vendors 205.2 219.5 Fair value of derivatives 14.2 3.3 Other creditors and accruals 355.5 320.0 841.4 992.8 The Group considers that the carrying amount of trade and other payables approximates their fair value. The following tables set out payments due to vendors, comprising contingent consideration and the Directors’ best estimates of future earnout-related obligations: 2018 £m 2017 £m Within one year 148.2 180.7 Between one and two years 140.2 128.3 Between two and three years 38.5 144.1 Between three and four years 50.3 58.3 Between four and five years 20.4 103.1 Over five years 17.1 16.2 414.7 630.7 2018 £m 2017 £m At beginning of year 630.7 976.5 Earnouts paid (note 11) (120.2 ) (199.1 ) New acquisitions 48.6 163.7 Revision of estimates taken to goodwill (note 12) (68.3 ) (60.7 ) Revaluation of payments due to vendors (note 6) (82.6 ) (208.6 ) Exchange adjustments 6.5 (41.1 ) At end of year 414.7 630.7 As of 31 December 2018, the potential undiscounted amount of future payments that could be required under the earnout agreements for acquisitions completed in the current year and for all earnout agreements range from £nil to £179 million (2017: £nil to £228 million) and £nil to £1,960 million (2017: £nil to £1,910 million), respectively. |
Bank overdrafts, bonds and bank
Bank overdrafts, bonds and bank loans | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Bank overdrafts, bonds and bank loans | 19. Bank overdrafts, bonds and bank loans Amounts falling due within one year: 2018 £m 2017 Bank overdrafts 442.0 393.2 Corporate bonds and bank loans 583.1 230.9 1,025.1 624.1 The Group considers that the carrying amount of bank overdrafts approximates their fair value. Amounts falling due after more than one year: 2018 £m 2017 Corporate bonds and bank loans 5,634.8 6,250.4 The Group estimates that the fair value of corporate bonds is £5,965.7 million at 31 December 2018 (2017: £5,816.5 million). The fair values of the corporate bonds are based on quoted market prices. The Group considers that the carrying amount of bank loans of £186.8 million (2017: £993.4 million) approximates their fair value. The corporate bonds, bank loans and overdrafts included within liabilities fall due for repayment as follows: 2018 £m 2017 Within one year 1,025.1 624.1 Between one and two years 423.8 727.6 Between two and three years 761.0 421.0 Between three and four years 609.8 1,384.2 Between four and five years 670.1 356.6 Over five years 3,170.1 3,361.0 6,659.9 6,874.5 |
Provisions for liabilities and
Provisions for liabilities and charges | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Provisions for liabilities and charges | 20. Provisions for liabilities and charges The movements in 2018 and 2017 were as follows: Property Other Total 1 January 2017 58.5 169.4 227.9 Charged to the income statement 4.1 16.9 21.0 Acquisitions 1 4.0 22.8 26.8 Utilised (6.0 ) (21.4 ) (27.4 ) Released to the income statement (5.5 ) (5.9 ) (11.4 ) Transfers 0.1 7.1 7.2 Exchange adjustments (2.6 ) (12.5 ) (15.1 ) 31 December 2017 52.6 176.4 229.0 Charged to the income statement 2 72.1 13.9 86.0 Acquisitions 1 0.5 8.3 8.8 Utilised (5.7 ) (20.1 ) (25.8 ) Released to the income statement (5.7 ) (4.6 ) (10.3 ) Transfers 2.0 10.9 12.9 Exchange adjustments 2.9 8.2 11.1 31 December 2018 118.7 193.0 311.7 Notes 1 Acquisitions include £8.4 million (2017: £21.9 million) of provisions arising from revisions to fair value adjustments related to the acquisition of subsidiary undertakings that had been determined provisionally at the immediately preceding balance sheet date, as permitted by IFRS 3 Business Combinations. 2 Amounts charged to the income statement in 2018 include £50.6 million in regard to transformation costs with respect to the strategic initiative of co-locations in major cities. The Company and various of its subsidiaries are, from time to time, parties to legal proceedings and claims which arise in the ordinary course of business. The Directors do not anticipate that the outcome of these proceedings and claims will have a material adverse effect on the Group’s financial position or on the results of its operations. |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Share-based payments | 21. Share-based payments Charges for share-based incentive plans were as follows: 2018 2017 2016 Share-based payments (note 5) 84.8 105.0 106.5 Share-based payments comprise charges for stock options and restricted stock awards to employees of the Group. As of 31 December 2018, there was £146.0 million (2017: £156.0 million) of total unrecognised compensation cost related to the Group’s restricted stock plans. That cost is expected to be recognised over an average period of one to two years. Further information on stock options is provided in note 25. Restricted stock plans The Group operates a number of equity-settled share incentive schemes, in most cases satisfied by the delivery of stock from one of the Group’s ESOP Trusts. The most significant current schemes are as follows: Executive Performance Share Plan (EPSP) This scheme is intended to reward and incentivise the most senior executives of the Group. The performance period is five complete financial years, commencing with the financial year in which the award is granted. The vest date will usually be in the March following the end of the five-year performance period. Vesting is conditional on continued employment throughout the vesting period. There are three performance criteria, each constituting one-third of the vesting value, and each measured over this five-year period: (i) TSR against a comparator group of companies. Threshold performance (equating to ranking in the 50th percentile of the comparator group) will result in 20% vesting of the part of the award dependent on TSR. The maximum vest of 100% will arise if performance ranks in the 90th percentile, with a sliding scale of vesting for performance between threshold and maximum. (ii) Headline diluted earnings per share. Threshold performance (7% compound annual growth) will again result in a 20% vest. Maximum performance of 14% compound annual growth will give rise to a 100% vest, with a sliding vesting scale for performance between threshold and maximum. (iii) Return on equity (ROE). Average annual ROE defined as headline diluted EPS divided by the balance sheet value per share of shareholders’ equity. Threshold performance ranges between 10–14% average annual ROE and maximum performance ranges between 14–18%, with a sliding scale in between. Threshold again gives rise to a 20% vest, 100% for maximum, with a sliding scale in between. Performance Share Awards (PSA) Grants of restricted stock under PSA are dependent upon annual performance targets, typically based on one or more of: operating profit, profit before taxation and operating margin. Grants are made in the year following the year of performance measurement, and vest two years after grant date provided the individual concerned is continually employed by the Group throughout this time. Leaders, Partners and High Potential Group This scheme provides annual grants of restricted stock to 1,800 key executives of the Group. Vesting is conditional on continued employment over the three-year vesting period. Valuation methodology For all of these schemes, the valuation methodology is based upon fair value on grant date, which is determined by the market price on that date or the application of a Black-Scholes model, depending upon the characteristics of the scheme concerned. The assumptions underlying the Black-Scholes model are detailed in note 25, including details of assumed dividend yields. Market price on any given day is obtained from external, publicly available sources. Market/non-market conditions Most share-based plans are subject to non-market performance conditions, such as margin or growth targets, as well as continued employment. EPSP is subject to a number of performance conditions, including TSR, a market-based condition. For schemes without market-based performance conditions, the valuation methodology above is applied and, at each year-end, the relevant accrual for each grant is revised, if appropriate, to take account of any changes in estimate of the likely number of shares expected to vest. For schemes with market-based performance conditions, the probability of satisfying these conditions is assessed at grant date through a statistical model (such as the Monte Carlo Model) and applied to the fair value. This initial valuation remains fixed throughout the life of the relevant plan, irrespective of the actual outcome in terms of performance. Where a lapse occurs due to cessation of employment, the cumulative charge taken to date is reversed. Movement on ordinary shares granted for significant restricted stock plans: Non-vested m Granted Lapsed Vested Non-vested number m Executive Performance Share Plan (EPSP) 9.1 0.7 (1.1 ) (2.0 ) 6.7 Performance Share Awards (PSA) 1.9 1.4 (0.1 ) (0.9 ) 2.3 Leaders, Partners and High Potential Group 6.8 4.8 (0.7 ) (1.8 ) 9.1 Weighted average fair value (pence per share): Executive Performance Share Plan (EPSP) 1,368p 814p 1,500p 1,122p 1,363p Performance Share Awards (PSA) 1,659p 1,202p 1,522p 1,517p 1,437p Leaders, Partners and High Potential Group 1,502p 806p 1,472p 1,426p 1,154p The total fair value of shares vested for all the Group’s restricted stock plans during the year ended 31 December 2018 was £107.2 million (2017: £114.8 million, 2016: £116.8 million). |
Provision for post-employment b
Provision for post-employment benefits | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Provision for post-employment benefits | 22. Provision for post-employment benefits Companies within the Group operate a large number of pension plans, the forms and benefits of which vary with conditions and practices in the countries concerned. The Group’s pension costs are analysed as follows: 2018 2017 2016 Defined contribution plans 172.3 175.9 153.5 Defined benefit plans charge to operating profit 18.9 16.1 24.6 Pension costs (note 5) 191.2 192.0 178.1 Net interest expense on pension plans (note 6) 4.4 6.3 6.7 195.6 198.3 184.8 Defined benefit plans The pension costs are assessed in accordance with the advice of local independent qualified actuaries. The latest full actuarial valuations for the various pension plans were carried out at various dates in the last three years. These valuations have been updated by the local actuaries to 31 December 2018. The Group’s policy is to close existing defined benefit plans to new members. This has been implemented across a significant number of the pension plans. Contributions to funded plans are determined in line with local conditions and practices. Contributions in respect of unfunded plans are paid as they fall due. The total contributions (for funded plans) and benefit payments (for unfunded plans) paid for 2018 amounted to £44.9 million (2017: £68.2 million, 2016: £43.7 million). Employer contributions and benefit payments in 2019 are expected to be approximately £50 million. (a) Assumptions There are a number of areas in pension accounting that involve estimates made by management based on advice of qualified advisors. These include establishing the discount rates, rates of increase in salaries and pensions in payment, inflation, and mortality assumptions. The main weighted average assumptions used for the actuarial valuations at 31 December are shown in the following table: 2018 2017 2016 2015 UK Discount rate 1 2.8 2.4 2.5 3.7 Rate of increase in salaries 2 n/a n/a 3.5 3.1 Rate of increase in pensions in payment 4.3 4.1 4.1 3.9 Inflation 2.8 2.7 2.8 2.4 North America Discount rate 1 4.1 3.5 3.8 4.0 Rate of increase in salaries 3.0 3.1 3.1 3.0 Inflation n/a 4.0 4.0 2.5 Western Continental Europe Discount rate 1 2.0 1.9 1.7 2.5 Rate of increase in salaries 2.3 1.9 2.0 2.3 Rate of increase in pensions in payment 1.2 1.2 1.3 1.6 Inflation 1.7 1.7 1.7 2.0 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe Discount rate 1 5.0 4.2 4.2 4.2 Rate of increase in salaries 5.8 5.5 5.9 5.8 Inflation 3.6 4.0 4.0 4.0 Notes 1 Discount rates are based on high-quality corporate bond yields. In countries where there is no deep market in corporate bonds, the discount rate assumption has been set with regard to the yield on long-term government bonds. 2 The salary assumptions are no longer applicable to the UK as all plans were frozen since 2017. Active participants will not accrue additional benefits for future services under these plans. For the Group’s pension plans, the plans’ assets are invested with the objective of being able to meet current and future benefit payment needs, while controlling balance sheet volatility and future contributions. Pension plan assets are invested with a number of investment managers, and assets are diversified among equities, bonds, insured annuities, property and cash or other liquid investments. The primary use of bonds as an investment class is to match the anticipated cash flows from the plans to pay pensions. The Group is invested in high-quality corporate and government bonds which share similar risk characteristics and are of equivalent currency and term to the plan liabilities. Various insurance policies have also been bought historically to provide a more exact match for the cash flows, including a match for the actual mortality of specific plan members. These insurance policies effectively provide protection against both investment fluctuations and longevity risks. The strategic target allocation varies among the individual plans. Management considers the types of investment classes in which the pension plan assets are invested. The types of investment classes are determined by economic and market conditions and in consideration of specific asset class risk. Management periodically commissions detailed asset and liability studies performed by third-party professional investment advisors and actuaries that generate probability-adjusted expected future returns on those assets. These studies also project the estimated future pension payments and evaluate the efficiency of the allocation of the pension plan assets into various investment categories. At 31 December 2018, the life expectancies underlying the value of the accrued liabilities for the main defined benefit pension plans operated by the Group were as follows: Years life expectancy after All North UK Western Other 1 – current pensioners 22.2 22.1 23.2 21.1 17.0 – current pensioners 23.9 23.6 24.3 24.0 21.4 – future pensioners 24.0 23.7 24.8 23.5 17.0 – future pensioners 25.7 25.2 26.1 26.2 21.4 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. The life expectancies after age 65 at 31 December 2017 were 22.4 years and 24.0 years for male and female current pensioners (at age 65), respectively, and 23.8 years and 25.7 years for male and female future pensioners (current age 45), respectively. In the determination of mortality assumptions, management uses the most up-to-date mortality tables available in each country. The following table provides information on the weighted average duration of the defined benefit pension obligations and the distribution of the timing of benefit payments for the next 10 years. The duration corresponds to the weighted average length of the underlying cash flows. All North UK Western Other 1 Weighted average duration of the defined benefit obligation (years) 11.8 8.5 14.2 15.7 8.2 Expected benefit payments over the next 10 years (£m) Benefits expected to be paid within 12 months 67.2 36.3 16.4 9.3 5.1 Benefits expected to be paid in 2020 58.4 34.3 12.9 8.6 2.5 Benefits expected to be paid in 2021 58.3 33.7 12.8 8.6 3.1 Benefits expected to be paid in 2022 59.1 33.6 12.7 9.1 3.6 Benefits expected to be paid in 2023 56.6 30.4 12.9 9.4 3.9 Benefits expected to be paid in the next five years 276.6 131.0 66.1 52.8 26.6 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. The following table presents a sensitivity analysis for each significant actuarial assumption showing how the defined benefit obligation would have been affected by changes in the relevant actuarial assumption that were reasonably possible at the balance sheet date. This sensitivity analysis applies to the defined benefit obligation only and not to the net defined benefit pension liability in its entirety, the measurement of which is driven by a number of factors including, in addition to the assumptions below, the fair value of plan assets. The sensitivity analyses are based on a change in one assumption while holding all other assumptions constant so that interdependencies between the assumptions are excluded. The methodology applied is consistent with that used to determine the recognised defined benefit obligation. The sensitivity analysis for inflation is not shown as it is an underlying assumption to build the pension and salary increase assumptions. Changing the inflation assumption on its own without changing the salary or pension assumptions will not result in a significant change in pension liabilities. Increase/(decrease) Sensitivity analysis of significant actuarial assumptions 2018 2017 £m Discount rate Increase by 25 basis points UK (9.8 ) (13.1 ) North America (8.8 ) (9.9 ) Western Continental Europe (8.7 ) (9.2 ) Other 1 (0.7 ) (0.6 ) Decrease by 25 basis points UK 10.3 13.8 North America 9.1 10.2 Western Continental Europe 9.3 9.8 Other 1 0.7 0.6 Rate of increase in salaries Increase by 25 basis points North America – 0.1 Western Continental Europe 1.3 1.5 Other 1 0.7 0.6 Decrease by 25 basis points North America – (0.1 ) Western Continental Europe (1.2 ) (1.5 ) Other 1 (0.6 ) (0.6 ) Rate of increase in pensions in payment Increase by 25 basis points UK 1.3 2.4 Western Continental Europe 5.3 6.2 Decrease by 25 basis points UK (0.8 ) (1.9 ) Western Continental Europe (5.0 ) (5.8 ) Life expectancy Increase in longevity by one additional year UK 13.6 16.9 North America 5.7 6.0 Western Continental Europe 6.9 7.0 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. (b) Assets and liabilities At 31 December, the fair value of the assets in the pension plans, and the assessed present value of the liabilities in the pension plans are shown in the following table: 2018 % 2017 % 2016 % Equities 76.5 9.1 124.6 13.4 161.9 17.3 Bonds 544.9 64.8 520.0 55.9 566.0 60.6 Insured annuities 90.9 10.8 178.5 19.2 63.5 6.8 Property 0.9 0.1 1.3 0.1 1.6 0.2 Cash 31.1 3.7 9.9 1.1 44.9 4.8 Other 96.3 11.5 95.7 10.3 96.3 10.3 Total fair value of assets 840.6 100.0 930.0 100.0 934.2 100.0 Present value of liabilities (1,024.0 ) (1,135.4 ) (1,209.8 ) Deficit in the plans (183.4 ) (205.4 ) (275.6 ) Irrecoverable surplus (0.9 ) (0.9 ) (0.9 ) Net liability 1 (184.3 ) (206.3 ) (276.5 ) Plans in surplus 42.8 43.9 28.0 Plans in deficit (227.1 ) (250.2 ) (304.5 ) Note 1 The related deferred tax asset is discussed in note 15. All plan assets have quoted prices in active markets with the exception of insured annuities and other assets. Surplus/(deficit) in plans by region 2018 2017 2016 UK 33.7 31.5 20.0 North America (68.7 ) (89.2 ) (133.8 ) Western Continental Europe (104.6 ) (107.7 ) (116.9 ) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (43.8 ) (40.0 ) (44.9 ) Deficit in the plans (183.4 ) (205.4 ) (275.6 ) Some of the Group’s defined benefit plans are unfunded (or largely unfunded) by common custom and practice in certain jurisdictions. In the case of these unfunded plans, the benefit payments are made as and when they fall due. Pre-funding of these plans would not be typical business practice. The following table shows the split of the deficit at 31 December between funded and unfunded pension plans. 2018 2018 2017 2017 2016 2016 Funded plans by region UK 33.7 (290.5 ) 31.5 (387.5 ) 20.0 (406.4 ) North America (4.6 ) (375.3 ) (21.4 ) (385.4 ) (56.0 ) (420.4 ) Western Continental Europe (35.8 ) (168.4 ) (37.9 ) (173.3 ) (48.9 ) (180.9 ) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (6.6 ) (19.7 ) (4.2 ) (15.8 ) (5.8 ) (17.2 ) Deficit/liabilities in the funded plans (13.3 ) (853.9 ) (32.0 ) (962.0 ) (90.7 ) (1,024.9 ) Unfunded plans by region UK – – – – – – North America (64.1 ) (64.1 ) (67.8 ) (67.8 ) (77.8 ) (77.8 ) Western Continental Europe (68.8 ) (68.8 ) (69.8 ) (69.8 ) (68.0 ) (68.0 ) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (37.2 ) (37.2 ) (35.8 ) (35.8 ) (39.1 ) (39.1 ) Deficit/liabilities in the unfunded plans (170.1 ) (170.1 ) (173.4 ) (173.4 ) (184.9 ) (184.9 ) Deficit/liabilities in the plans (183.4 ) (1,024.0 ) (205.4 ) (1,135.4 ) (275.6 ) (1,209.8 ) In accordance with IAS 19, plans that are wholly or partially funded are considered funded plans. (c) Pension expense The following table shows the breakdown of the pension expense between amounts charged to operating profit, amounts charged to finance costs and amounts recognised in the consolidated statement of comprehensive income (OCI): 2018 2017 2016 Service cost 1 15.5 13.0 22.4 Administrative expenses 3.4 3.1 2.2 Charge to operating profit 18.9 16.1 24.6 Net interest expense on pension plans 4.4 6.3 6.7 Charge to profit before taxation for defined benefit plans 23.3 22.4 31.3 Return on plan assets (excluding interest income) (43.9 ) 13.4 66.3 Changes in demographic assumptions underlying the present value of the plan liabilities 3.8 12.7 6.7 Changes in financial assumptions underlying the present value of the plan liabilities 45.2 (17.0 ) (92.6 ) Experience gain arising on the plan liabilities 3.8 7.9 1.0 Change in irrecoverable surplus – – 2.7 Actuarial gain/(loss) recognised in OCI 8.9 17.0 (15.9 ) Note 1 Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments. (d) Movement in plan liabilities The following table shows an analysis of the movement in the pension plan liabilities for each accounting period: 2018 £m 2017 £m 2016 £m Plan liabilities at beginning of year 1,135.4 1,209.8 1,039.9 Service cost 1 15.5 13.0 22.4 Interest cost 30.7 32.9 37.2 Actuarial (gain)/loss Effect of changes in demographic assumptions (3.8 ) (12.7 ) (6.7 ) Effect of changes in financial assumptions (45.2 ) 17.0 92.6 Effect of experience adjustments (3.8 ) (7.9 ) (1.0 ) Benefits paid (75.6 ) (79.7 ) (92.4 ) Loss/(gain) due to exchange rate movements 30.0 (36.4 ) 124.2 Settlement payments 2 (70.4 ) (1.2 ) (4.8 ) Other 3 11.2 0.6 (1.6 ) Plan liabilities at end of year 1,024.0 1,135.4 1,209.8 Notes 1 Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments. 2 In 2018, the Group completed the transfer of the defined benefit obligations for certain UK plans to an insurer resulting in £70.4 million settlement payments. 3 Other includes acquisitions, disposals, plan participants’ contributions and reclassifications. The reclassifications represent certain of the Group’s defined benefit plans which are included in this note for the first time in the periods presented. (e) Movement in plan assets The following table shows an analysis of the movement in the pension plan assets for each accounting period: 2018 2017 2016 Fair value of plan assets at beginning of year 930.0 934.2 814.2 Interest income on plan assets 26.3 26.6 30.5 Return on plan assets (excluding interest income) (43.9 ) 13.4 66.3 Employer contributions 44.9 68.2 43.7 Benefits paid (75.6 ) (79.7 ) (92.4 ) Gain/(loss) due to exchange rate movements 23.0 (28.7 ) 78.8 Settlement payments 1 (70.4 ) (1.2 ) (4.8 ) Administrative expenses (3.4 ) (3.1 ) (2.2 ) Other 2 9.7 0.3 0.1 Fair value of plan assets at end of year 840.6 930.0 934.2 Actual return on plan assets (17.6 ) 40.0 96.8 Notes 1 In 2018, the Group completed the transfer of the defined benefit obligations for certain UK plans to an insurer resulting in £70.4 million settlement payments. 2 Other includes acquisitions, disposals, plan participants’ contributions and reclassifications. The reclassifications represent certain of the Group’s defined benefit plans which are included in this note for the first time in the periods presented. |
Risk management policies
Risk management policies | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Risk management policies | 23. Risk management policies Foreign currency risk The Group’s results in pounds sterling are subject to fluctuation as a result of exchange rate movements. The Group does not hedge this translation exposure to its earnings but does hedge the currency element of its net assets using foreign currency borrowings, cross-currency swaps and forward foreign exchange contracts. The Group effects these currency net asset hedges by borrowing in the same currencies as the operating (or ‘functional’) currencies of its main operating units. The majority of the Group’s debt is therefore denominated in US dollars, pounds sterling and euros. The Group’s borrowings at 31 December 2018 were primarily made up of $2,784 million, £1,044 million and € 3,200 million (2017: $3,931 million, £600 million and € 3,202 million). The Group’s average gross debt during the course of 2018 was $3,377 million, £1,039 million and € 3,202 million (2017: $3,741 million, £1,242 million and € 3,108 million). The Group’s operations conduct the majority of their activities in their own local currency and consequently the Group has no significant transactional foreign exchange exposures arising from its operations. Any significant cross-border trading exposures are hedged by the use of forward foreign-exchange contracts. No speculative foreign exchange trading is undertaken. Interest rate risk The Group is exposed to interest rate risk on both interest-bearing assets and interest-bearing liabilities. The Group has a policy of actively managing its interest rate risk exposure while recognising that fixing rates on all its debt eliminates the possibility of benefiting from rate reductions and similarly, having all its debt at floating rates unduly exposes the Group to increases in rates. Including the effect of interest rate and cross-currency swaps, 52.9% of the year-end US dollar debt is at fixed rates averaging 4.58% for an average period of 181 months; 47.1% of the year-end US dollar debt is at floating rates averaging 4.77% for an average period of 39 months; 100% of the sterling debt is at a fixed rate of 3.43% for an average period of 232 months; 84.4% of the euro debt is at fixed rates averaging 1.99% for an average period of 75 months and 15.6% of the euro debt is at floating rates averaging 0.05% for an average of 28 months. Going concern and liquidity risk In considering going concern and liquidity risk, the Directors have reviewed the Group’s future cash requirements and earnings projections. The Directors believe these forecasts have been prepared on a prudent basis and have also considered the impact of a range of potential changes to trading performance. The Directors have concluded that the Group should be able to operate within its current facilities and comply with its banking covenants for the foreseeable future and therefore believe it is appropriate to prepare the financial statements of the Group on a going concern basis. The potential impact of Brexit has been considered and is not deemed to have a significant effect on this assessment. At 31 December 2018, the Group has access to £8.4 billion of committed facilities with maturity dates spread over the years 2019 to 2046 as illustrated below: £m 2019 2020 2021 2022 2023+ £ bonds £400m (2.875% ’46) 400.0 400.0 US bond $450m (5.625% ’43) 353.3 353.3 US bond $272m (5.125% ’42) 213.1 213.1 Eurobonds € 600m (1.625% ’30) 539.1 539.1 Eurobonds € 750m (2.25%,’26) 673.9 673.9 Eurobonds € 500m (1.375% ’25) 449.2 449.2 US bond $750m (3.75%,’24) 588.4 588.4 Eurobonds € 750m (3.0% ’23) 673.9 673.9 US bond $500m (3.625% ’22) 392.3 392.3 Eurobonds € 250m (3m EURIBOR + 0.45% ’22) 224.6 224.6 US bond $812m (4.75% ’21) 637.4 637.4 Bank revolver ($2,500m ’21) 1,961.4 1,961.4 Bank revolver (A$150m ’19, A$370m ’21) 287.3 82.9 204.4 £ bonds £200m (6.375% ’20) 200.0 200.0 Eurobonds € 250m (3m EURIBOR + 0.32% ’20) 224.6 224.6 Eurobonds € 600m (0.75% ’19) 539.1 539.1 Total committed facilities available 8,357.6 622.0 424.6 2,803.2 616.9 3,890.9 Drawn down facilities at 31 December 2018 6,282.9 571.1 424.6 779.4 616.9 3,890.9 Undrawn committed credit facilities 2,074.7 Given the strong cash generation of the business, its debt maturity profile and available facilities, the Directors believe the Group has sufficient liquidity to match its requirements for the foreseeable future. Treasury activities Treasury activity is managed centrally from London, New York and Hong Kong, and is principally concerned with the monitoring of working capital, managing external and internal funding requirements and the monitoring and management of financial market risks, in particular interest rate and foreign exchange exposures. The treasury operation is not a profit centre and its activities are carried out in accordance with policies approved by the Board of Directors and subject to regular review and audit. The Group manages liquidity risk by ensuring continuity and flexibility of funding even in difficult market conditions. Undrawn committed borrowing facilities are maintained in excess of peak net-borrowing levels and debt maturities are closely monitored. Targets for debt less cash position are set on an annual basis and, to assist in meeting this, working capital targets are set for all the Group’s major operations. Capital risk management The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Group consists of debt, which includes the borrowings disclosed in note 10, cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings as disclosed in the consolidated statement of changes in equity and in notes 25 and 26. Credit risk The Group’s principal financial assets are cash and short-term deposits, trade and other receivables and investments, the carrying values of which represent the Group’s maximum exposure to credit risk in relation to financial assets, as shown in note 24. The Group’s credit risk is primarily attributable to its trade receivables. The majority of the Group’s trade receivables are due from large national or multinational companies where the risk of default is considered low. The amounts presented in the consolidated balance sheet are net of allowances for doubtful receivables, estimated by the Group’s management based on expected losses, prior experience and their assessment of the current economic environment. A relatively small number of clients make up a significant percentage of the Group’s debtors, but no single client represents more than 5% of total trade receivables as at 31 December 2018. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies or banks that have been financed by their government. A relatively small number of clients contribute a significant percentage of the Group’s consolidated revenues. The Group’s clients generally are able to reduce advertising and marketing spending or cancel projects at any time for any reason. There can be no assurance that any of the Group’s clients will continue to utilise the Group’s services to the same extent, or at all, in the future. Clients can reduce their marketing spend, terminate contracts, or cancel projects on short notice. The loss of one or more of our largest clients, if not replaced by new accounts or an increase in business from existing clients, would adversely affect our financial condition. Sensitivity analysis The following sensitivity analysis addresses the effect of currency and interest rate risks on the Group’s financial instruments. The analysis assumes that all hedges are highly effective. Currency risk At 31 December 2018, the Group’s major foreign currency denominated borrowings are held in individual entities with the same financial reporting currencies as borrowings. Therefore a weakening or strengthening of sterling against the Group’s major currencies would not result in any gains or losses being posted directly to equity and there would be no profit before tax impact. Interest rate risk A one percentage point increase in market interest rates for all currencies in which the Group had cash and borrowings at 31 December 2018 would increase profit before tax by approximately £7.2 million (2017: £0.2 million). A one percentage decrease in market interest rates would have an equal and opposite effect. This has been calculated by applying the interest rate change to the Group’s variable rate cash and borrowings. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Financial instruments | 24. Financial instruments Currency derivatives The Group utilises currency derivatives to hedge significant future transactions and cash flows and the exchange risk arising on translation of the Group’s investments in foreign operations. The Group is a party to a variety of foreign currency derivatives in the management of its exchange rate exposures. The instruments purchased are primarily denominated in the currencies of the Group’s principal markets. The Group designates its foreign currency-denominated debt as hedging instruments against the currency risk associated with the translation of its foreign operations. Contracts due in March 2025 have receipts of € 500.0 million and payments of £444.1 million. At 31 December 2018, the fair value of the Group’s currency derivatives is estimated to be a net asset of approximately £8.4 million (2017: £nil). These amounts are based on market values of equivalent instruments at the balance sheet date, comprising £8.4 million (2017: £nil) assets included in trade and other receivables and £nil (2017: £nil) liabilities included in trade and other payables. The amounts taken to and deferred in equity during the year for currency derivatives that are designated and effective hedges was a charge of £17.9 million (2017: £nil) for cash flow hedges. Changes in the fair value relating to the ineffective portion of the currency derivatives amounted to a loss of £11.1 million (2017: £nil) which is included in the revaluation of financial instruments for the year. This loss resulted from a £6.8 million gain on hedging instruments and a £17.9 million loss on hedged items. At the balance sheet date, the total nominal amount of outstanding forward foreign exchange contracts not designated as hedges was £296.1 million (2017: £177.7 million). The Group estimates the fair value of these contracts to be a net liability of £1.3 million (2017: £2.5 million). These arrangements are designed to address significant exchange exposure and are renewed on a revolving basis as required. Interest rate swaps The Group uses interest rate swaps as hedging instruments in fair value hedges to manage its exposure to interest rate movements on its borrowings. Contracts with a nominal value of $500 million have fixed interest receipts of 3.63% until September 2022 and have floating interest payments averaging LIBOR plus 1.52%. Contracts with a nominal value of $812 million have fixed interest receipts of 4.75% until November 2021 and have floating rate payments averaging LIBOR plus 2.34%. The fair value of interest rate swaps entered into at 31 December 2018 is estimated to be a net liability of £14.2 million (2017: £1.2 million). These amounts are based on market values of equivalent instruments at the balance sheet date, comprising £nil (2017: £2.1 million) assets included in trade and other receivables and £14.2 million (2017: £3.3 million) liabilities included in trade and other payables. Changes in the fair value relating to the ineffective portion of interest rate swaps amounted to a gain of £0.9 million (2017: £2.8 million) which is included in the revaluation of financial instruments for the year. This gain resulted from a £9.9 million loss on hedging instruments and a £10.8 million gain on hedged items. An analysis of the Group’s financial assets and liabilities by accounting classification is set out below: Classification Derivatives Held at Held at Amortised Carrying £m £m £m £m £m 2018 Other investments – 319.6 347.1 – 666.7 Cash and short-term deposits – – – 2,643.2 2,643.2 Bank overdrafts, bonds and bank loans – – – (1,025.1 ) (1,025.1 ) Bonds and bank loans – – – (5,634.8 ) (5,634.8 ) Trade and other receivables: amounts falling due within one year – – – 8,545.6 8,545.6 Trade and other receivables: amounts falling due after more than one year – – – 68.3 68.3 Trade and other payables: amounts falling due within one year – – – (10,637.3 ) (10,637.3 ) Trade and other payables: amounts falling due after more than one year – – – (8.4 ) (8.4 ) Derivative assets 8.4 1.3 – – 9.7 Derivative liabilities (14.2) (2.6 ) – – (16.8 ) Payments due to vendors (earnout agreements) (note 18) – (414.7 ) – – (414.7 ) Liabilities in respect of put options – (242.0 ) – – (242.0 ) (5.8) (338.4 ) 347.1 (6,048.5 ) (6,045.6 ) Classification Derivatives Held Loans Available Amortised Carrying £m £m £m £m £m £m 2017 Other investments – – – 1,153.5 – 1,153.5 Cash and short-term deposits – – 2,391.4 – – 2,391.4 Bank overdrafts, bonds and bank loans – – – – (624.1 ) (624.1 ) Bonds and bank loans – – – – (6,250.4 ) (6,250.4 ) Trade and other receivables: amounts falling due within one year – – 8,328.4 – – 8,328.4 Trade and other receivables: amounts falling due after more than one year – – 61.7 – – 61.7 Trade and other payables: amounts falling due within one year – – – – (9,970.5 ) (9,970.5 ) Trade and other payables: amounts falling due after more than one year – – – – (8.5 ) (8.5 ) Derivative assets 2.1 1.0 – – – 3.1 Derivative liabilities (3.3 ) (3.5 ) – – – (6.8 ) Payments due to vendors (earnout agreements) (note 18) – (630.7 ) – – – (630.7 ) Liabilities in respect of put options – (258.1 ) – – – (258.1 ) (1.2 ) (891.3 ) 10,781.5 1,153.5 (16,853.5 ) (5,811.0 ) The Group adopted IFRS 9 on 1 January 2018 resulting in cash and short-term deposits and trade and other receivables being reclassified from loans and receivables to amortised cost. Other investments of £1,153.5 million classified as available for sale at 31 December 2017 were reclassified as held at fair value through other comprehensive income (£835.1 million) and fair value through profit or loss (£318.4 million). There have been no material changes in the carrying amounts of financial assets and financial liabilities arising from the adoption of IFRS 9. 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: Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices); Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Level 1 Level 2 Level 3 2018 Derivatives in designated hedge relationships Derivative assets – 8.4 – Derivative liabilities – (14.2 ) – Held at fair value through profit or loss Other investments 0.4 – 319.2 Derivative assets – 1.3 – Derivative liabilities – (2.6 ) – Payments due to vendors (earnout agreements) (note 18) – – (414.7 ) Liabilities in respect of put options – – (242.0 ) Held at fair value through other comprehensive income Other investments 128.1 – 219.0 Level 1 Level 2 Level 3 2017 Derivatives in designated hedge relationships Derivative assets – 2.1 – Derivative liabilities – (3.3 ) – Held for trading Derivative assets – 1.0 – Derivative liabilities – (3.5 ) – Payments due to vendors (earnout agreements) (note 18) – – (630.7 ) Liabilities in respect of put options – – (258.1 ) Available for sale Other investments 333.2 – 820.3 There have been no transfers between these levels in the periods presented. Reconciliation of level 3 fair value measurements 1 Liabilities Other 1 January 2017 (297.0 ) 881.0 Gains/(losses) recognised in the income statement 52.5 (13.8 ) Gains recognised in other comprehensive income – 15.1 Exchange adjustments 7.5 (70.9 ) Additions (40.5 ) 67.7 Disposals – (1.7 ) Cancellations 2.9 – Reclassifications from other investments to interests in associates – (57.1 ) Settlements 16.5 – 31 December 2017 (258.1 ) 820.3 Gains recognised in the income statement 34.5 61.1 Losses recognised in other comprehensive income – (140.6 ) Exchange adjustments 1.1 – Additions (43.5 ) 35.0 Disposals – (237.3 ) Cancellations 2.2 – Reclassifications from other investments to interests in associates – (0.3 ) Settlements 21.8 – 31 December 2018 (242.0 ) 538.2 Note 1 The reconciliation of payments due to vendors (earnout agreements) is presented in note 18. 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 publicly available information from outside sources. There have been no movements between level 3 and other levels. Payments due to vendors and liabilities in respect of put options Future anticipated payments due to vendors in respect of contingent consideration (earnout agreements) are recorded at fair value, which is the present value of the expected cash outflows of the obligations. Liabilities in respect of put option agreements are initially recorded at the present value of the redemption amount in accordance with IAS 32 and subsequently measured at fair value in accordance with IFRS 9. Both types of obligations are dependent on the future financial performance of the entity and it is assumed that future profits are in line with Directors’ estimates. The Directors derive their estimates from internal business plans together with financial due diligence performed in connection with the acquisition. At 31 December 2018, the weighted average growth rate in estimating future financial performance was 22.7% (2017: 25.0%), which reflects the prevalence of recent acquisitions in the faster-growing markets and new media sectors. The risk adjusted discount rate applied to these obligations at 31 December 2018 was 2.9% (2017: 1.8%). A one percentage point increase or decrease in the growth rate in estimated future financial performance would increase or decrease the combined liabilities due to earnout agreements and put options by approximately £6.8 million (2017: £8.9 million) and £10.4 million (2017: £9.3 million), respectively. A 0.5 percentage point increase or decrease in the risk adjusted discount rate would decrease or increase the combined liabilities by approximately £7.1 million (2017: £11.2 million) and £7.2 million (2017: £11.4 million), respectively. An increase in the liability would result in a loss in the revaluation of financial instruments, while a decrease would result in a gain. Other investments The fair value of other investments included in level 1 are based on quoted market prices. Other investments included in level 3 are unlisted securities, where market value is not readily available. The Group has estimated relevant fair values on the basis of publicly available information from outside sources. The sensitivity to changes in unobservable inputs is specific to each individual investment. |
Authorised and issued share cap
Authorised and issued share capital | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Authorised and issued share capital | 25. Authorised and issued share capital Equity ordinary shares Nominal value £m Authorised At 1 January 2016 1,750,000,000 175.0 At 31 December 2016 1,750,000,000 175.0 At 31 December 2017 1,750,000,000 175.0 At 31 December 2018 1,750,000,000 175.0 Issued and fully paid At 1 January 2016 1,329,366,024 132.9 Exercise of share options 2,514,706 0.3 At 31 December 2016 1,331,880,730 133.2 Exercise of share options 630,822 0.1 At 31 December 2017 1,332,511,552 133.3 Exercise of share options 166,675 – At 31 December 2018 1,332,678,227 133.3 Company’s own shares The Company’s holdings of own shares are stated at cost and represent shares held in treasury and purchases by the Employee Share Ownership Plan (‘ESOP’) trusts of shares in WPP plc for the purpose of funding certain of the Group’s share-based incentive plans. The trustees of the ESOP purchase the Company’s ordinary shares in the open market using funds provided by the Company. The Company also has an obligation to make regular contributions to the ESOP to enable it to meet its administrative costs. The number and market value of the ordinary shares of the Company held by the ESOP at 31 December 2018 was 14,820,994 (2017: 14,232,910), and £125.5 million (2017: £190.9 million) respectively. The number and market value of ordinary shares held in treasury at 31 December 2018 was 70,854,553 (2017: 62,578,938) and £599.9 million (2017: £839.2 million) respectively. Share options WPP Executive Share Option Scheme As at 31 December 2018, unexercised options over ordinary shares of 6,741 have been granted under the WPP Executive Share Option Scheme as follows: Number of ordinary shares under option Exercise price Exercise dates 3,696 8.333 2015 - 2022 3,045 10.595 2016 - 2023 WPP Worldwide Share Ownership Programme As at 31 December 2018, unexercised options over ordinary shares of 3,187,979 and unexercised options over ADRs of 466,559 have been granted under the WPP Worldwide Share Ownership Programme as follows: Number of ordinary Exercise price Exercise dates 28,275 5.483 2012 - 2019 18,000 5.483 2013 - 2019 750 5.608 2012 - 2019 95,000 6.268 2014 - 2021 44,125 6.268 2015 - 2021 61,625 7.113 2013 - 2020 30,250 7.113 2014 - 2020 233,129 8.458 2015 - 2022 52,000 13.145 2017 - 2021 1,959,975 13.145 2017 - 2024 4,750 13.145 2018 - 2024 642,975 13.505 2016 - 2023 17,125 13.505 2017 - 2023 Number of ADRs Exercise price Exercise dates 11,855 44.560 2012 - 2019 29,025 49.230 2014 - 2021 19,200 56.560 2013 - 2020 44,964 67.490 2015 - 2022 195,890 102.670 2017 - 2024 165,625 110.760 2016 - 2023 WPP Share Option Plan 2015 As at 31 December 2018, unexercised options over ordinary shares of 12,257,750 and unexercised options over ADRs of 1,286,670 have been granted under the WPP Share Option Plan 2015 as follows: Number of ordinary shares under option Exercise price Exercise dates 23,750 8.372 2021 - 2025 4,053,925 8.372 2021 - 2028 23,875 13.085 2020 - 2024 3,245,325 13.085 2020 - 2027 66,125 15.150 2018 - 2022 2,211,900 15.150 2018 - 2025 5,750 15.150 2019 - 2025 15,875 17.055 2019 - 2023 2,611,225 17.055 2019 - 2026 Number of ADRs under option Exercise price Exercise dates 439,205 53.140 2021 - 2028 340,225 88.260 2020 - 2027 282,115 105.490 2020 - 2026 225,125 115.940 2018 - 2025 The aggregate status of the WPP Share Option Plans during 2018 was as follows: Movements on options granted (represented in ordinary shares) 1 January Granted Exercised Lapsed Outstanding Exercisable WPP 6,741 – – – 6,741 6,741 WWOP 6,375,750 – (166,675 ) (688,301 ) 5,520,774 5,520,774 WSOP 14,602,950 6,301,400 – (2,213,250 ) 18,691,100 3,403,650 20,985,441 6,301,400 (166,675 ) (2,901,551 ) 24,218,615 8,931,165 Weighted-average exercise price for options over 1 January Granted Exercised Lapsed Outstanding Exercisable Ordinary shares (£) WPP 9.355 – – – 9.355 9.355 WWOP 12.195 – 7.064 12.473 12.290 12.290 WSOP 14.929 8.372 – 14.818 12.753 15.150 ADRs ($) WWOP 94.752 – 57.031 99.731 95.453 95.453 WSOP 101.047 53.140 – 98.978 84.893 115.940 Options over ordinary shares Outstanding Range of exercise prices £ Weighted average £ Weighted average 5.483 – 17.055 12.656 96 Options over ADRs Outstanding Range of exercise prices $ Weighted average $ Weighted average 44.560 – 115.940 87.703 93 As at 31 December 2018 there was £8.5 million (2017: £9.0 million) of total unrecognised compensation costs related to share options. That cost is expected to be recognised over a weighted average period of 20 months (2017: 20 months). Share options are satisfied out of newly issued shares. The weighted average fair value of options granted in the year calculated using the Black-Scholes model was as follows: 2018 2017 2016 Fair value of UK options (shares) 107.0p 112.0p 135.0p Fair value of US options (ADRs) $8.09 $9.40 $9.94 Weighted average assumptions: UK Risk-free interest rate 0.78% 0.57% 0.44% US Risk-free interest rate 2.74% 2.05% 1.60% Expected life (months) 48 48 48 Expected volatility 24% 17% 16% Dividend yield 3.5% 2.9% 2.8% Options are issued at an exercise price equal to market value on the date of grant. The average share price of the Group for the year ended 31 December 2018 was £11.56 (2017: £15.86, 2016: £16.45) and the average ADR price for the same period was $77.31 (2017: $101.86, 2016: $111.20). Expected volatility is sourced from external market data and represents the historic volatility in the Group’s share price over a period equivalent to the expected option life. Expected life is based on a review of historic exercise behaviour in the context of the contractual terms of the options, as described in more detail below. Terms of share option plans In 2015, the Group introduced the Share Option Plan 2015 to replace both the ‘all-employee’ Worldwide Share Ownership Plan and the discretionary Executive Stock Option Plan. Two kinds of options over ordinary shares can be granted, both with a market value exercise price. Firstly, options can be granted to employees who have worked at a company owned by WPP plc for at least two years which are not subject to performance conditions. Secondly, options may be granted on a discretionary basis subject to the satisfaction of performance conditions. The Worldwide Share Ownership Programme was open for participation to employees with at least two years’ employment in the Group. It was not available to those participating in other share-based incentive programmes or to Executive Directors. The vesting period for each grant is three years and there are no performance conditions other than continued employment with the Group. The Executive Stock Option Plan has historically been open for participation to WPP Group Leaders, Partners and High Potential Group. It is not currently offered to Parent Company Executive Directors. The vesting period is three years and performance conditions include achievement of various TSR (Total Shareholder Return) and EPS (Earnings Per Share) objectives, as well as continued employment. The terms of these stock options are such that if, after nine years and eight months, the performance conditions have not been met, then the stock option will vest automatically. The Group grants stock options with a life of 10 years, including the vesting period. |
Other reserves
Other reserves | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Other reserves | 26. Other reserves Other reserves comprise the following: Capital £m Equity £m Revaluation reserve £m Translation £m Total 1 January 2016 2.7 (225.2 ) 364.4 (151.6 ) (9.7 ) Exchange adjustments on foreign currency net investments – – – 1,309.9 1,309.9 Loss on revaluation of available for sale investments – – (93.1 ) – (93.1 ) Recognition and remeasurement of financial instruments – (21.9 ) – – (21.9 ) 31 December 2016 2.7 (247.1 ) 271.3 1,158.3 1,185.2 Exchange adjustments on foreign currency net investments – – – (445.5 ) (445.5 ) Gain on revaluation of available for sale investments – – 32.1 – 32.1 Recognition and remeasurement of financial instruments – (10.1 ) – – (10.1 ) 31 December 2017 2.7 (257.2 ) 303.4 712.8 761.7 Exchange adjustments on foreign currency net investments – – – 69.9 69.9 Accounting policy change (IFRS 9) 1 – – (303.4 ) (104.0 ) (407.4 ) Recognition and remeasurement of financial instruments – (30.7 ) – – (30.7 ) 31 December 2018 2.7 (287.9 ) – 678.7 393.5 Note 1 Due to the adoption of IFRS 9, cumulative gains and losses on revaluation of available for sale investments have been transferred to retained earnings, as described in the accounting policies. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Acquisitions | 27. Acquisitions The Group accounts for acquisitions in accordance with IFRS 3 Business Combinations. IFRS 3 requires the acquiree’s identifiable assets, liabilities and contingent liabilities (other than non-current assets or disposal groups held for sale) to be recognised at fair value at acquisition date. In assessing fair value at acquisition date, management make their best estimate of the likely outcome where the fair value of an asset or liability may be contingent on a future event. In certain instances, the underlying transaction giving rise to an estimate may not be resolved until some years after the acquisition date. IFRS 3 requires the release to profit of any acquisition reserves which subsequently become excess in the same way as any excess costs over those provided at acquisition date are charged to profit. At each period end management assess provisions and other balances established in respect of acquisitions for their continued probability of occurrence and amend the relevant value accordingly through the consolidated income statement or as an adjustment to goodwill as appropriate under IFRS 3. Acquisitions in 2018 The Group acquired a number of subsidiaries in the year. The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the Group. The fair value adjustments for certain acquisitions have been determined provisionally at the balance sheet date. Book Fair value adjustments Fair Intangible assets – 40.3 40.3 Property, plant and equipment 3.1 – 3.1 Cash 5.0 – 5.0 Trade receivables due within one year 43.7 – 43.7 Other current assets 20.3 – 20.3 Total assets 72.1 40.3 112.4 Current liabilities (42.8 ) – (42.8 ) Trade and other payables due after one year (2.4 ) (13.5 ) (15.9 ) Deferred tax liabilities – (9.9 ) (9.9 ) Provisions – (0.4 ) (0.4 ) Total liabilities (45.2 ) (23.8 ) (69.0 ) Net assets 26.9 16.5 43.4 Non-controlling interests (6.3 ) Fair value of equity stake in associate undertakings before acquisition of controlling interest (3.1 ) Goodwill 141.6 Consideration 175.6 Consideration satisfied by: Cash 127.4 Payments due to vendors 48.2 Goodwill arising from acquisitions represents the value of synergies with our existing portfolio of businesses and skilled staff to deliver services to our clients. Goodwill that is expected to be deductible for tax purposes is £65.3 million. Non-controlling interests in acquired companies are measured at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets. The contribution to revenue and operating profit of acquisitions completed in the year was not material. There were no material acquisitions completed between 31 December 2018 and the date the financial statements have been authorised for issue. Acquisitions in 2017 The Group acquired a number of subsidiaries in the year. The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the Group. The fair value adjustments for certain acquisitions have been determined provisionally at the balance sheet date. Book Fair value Fair Intangible assets 0.8 79.0 79.8 Property, plant and equipment 5.5 – 5.5 Cash 28.9 – 28.9 Trade receivables due within one year 74.4 – 74.4 Other current assets 20.1 – 20.1 Total assets 129.7 79.0 208.7 Current liabilities (76.0 ) – (76.0 ) Trade and other payables due after one year (10.2 ) (20.5 ) (30.7 ) Deferred tax liabilities – (16.8 ) (16.8 ) Provisions (0.1 ) (4.8 ) (4.9 ) Total liabilities (86.3 ) (42.1 ) (128.4 ) Net assets 43.4 36.9 80.3 Non-controlling interests (13.9 ) Fair value of equity stake in associate undertakings before acquisition of controlling interest (5.7 ) Goodwill 314.3 Consideration 375.0 Consideration satisfied by: Cash 213.7 Payments due to vendors 161.3 Goodwill arising from acquisitions represents the value of synergies with our existing portfolio of businesses and skilled staff to deliver services to our clients. Goodwill that is expected to be deductible for tax purposes is £63.9 million. Non-controlling interests in acquired companies are measured at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets. The contribution to revenue and operating profit of acquisitions completed in the year was not material. Acquisitions in 2016 The Group acquired a number of subsidiaries in the year. The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the Group. The fair value adjustments for certain acquisitions have been determined provisionally at the balance sheet date. Book Fair value Fair Intangible assets 10.5 319.1 329.6 Property, plant and equipment 20.6 – 20.6 Cash 57.1 – 57.1 Trade receivables due within one year 249.5 – 249.5 Other current assets 78.0 – 78.0 Total assets 415.7 319.1 734.8 Current liabilities (299.4 ) (2.8 ) (302.2 ) Trade and other payables due after one year (40.4 ) (59.5 ) (99.9 ) Deferred tax liabilities – (96.1 ) (96.1 ) Provisions (0.1 ) (11.5 ) (11.6 ) Bank loans (144.4 ) – (144.4 ) Total liabilities (484.3 ) (169.9 ) (654.2 ) Net assets (68.6 ) 149.2 80.6 Non-controlling interests (15.0 ) Fair value of equity stake in associate undertakings before acquisition of controlling interest (98.5 ) Goodwill 799.3 Consideration 766.4 Consideration satisfied by: Cash 423.3 Payments due to vendors 343.1 Goodwill arising from acquisitions represents the value of synergies with our existing portfolio of businesses and skilled staff to deliver services to our clients. Goodwill that is expected to be deductible for tax purposes is £54.8 million. Non-controlling interests in acquired companies are measured at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets. The contribution to revenue and operating profit of acquisitions completed in the year was not material. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2018 | |
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Related party transactions | 28. Related party transactions From time to time the Group enters into transactions with its associate undertakings. These transactions were not material for any of the years presented. |
Reconciliation of profit before
Reconciliation of profit before interest and taxation to headline PBIT | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Reconciliation of profit before interest and taxation to headline PBIT | 29. Reconciliation of profit before interest and taxation to headline PBIT Reconciliation of profit before interest and taxation to headline PBIT: 2018 2017 2016 Profit before interest and taxation 1,474.9 2,021.7 2,112.9 Amortisation and impairment of acquired intangible assets 280.0 195.1 168.4 Goodwill impairment 183.9 27.1 27.0 Gains on disposal of investments and subsidiaries (235.5) (129.0) (44.3) (Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership (2.0 ) 0.3 (232.4 ) Investment write-downs 2.0 95.9 86.1 Restructuring and transformation costs 302.3 56.8 27.4 Share of exceptional losses/(gains) of associates 41.7 (0.8 ) 15.2 Headline PBIT 2,047.3 2,267.1 2,160.3 Headline PBIT is one of the metrics that management uses to assess the performance of the business. |
Condensed consolidating financi
Condensed consolidating financial information for bonds issued | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | |
Statement [LineItems] | |
Condensed consolidating financial information for bonds issued | 31. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors WPP Finance 2010 has in issue $750 million of 3.750% bonds due September 2024 and $450 million ($50 million repaid in 2018 from the $500 million initially issued) of 5.625% bonds due November 2043, with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors. The issuer and guarantors of the bonds (issuer and subsidiary guarantors are 100% owned by WPP plc) are each subject to the reporting requirements under section 15(d) of the Securities Exchange Act of 1934. In accordance with SEC Regulation S-X 3-10, In the event that WPP Finance 2010 fails to pay the holders of the securities, thereby requiring WPP plc, WPP Jubilee Limited or WPP 2005 Limited to make payment pursuant to the terms of their full and unconditional, and joint and several guarantee of those securities, there is no impediment to WPP plc, WPP Jubilee Limited or WPP 2005 Limited obtaining reimbursement for any such payments from WPP Finance 2010. Condensed consolidating income statement information For the year ended 31 December 2018, £m WPP plc Subsidiary WPP Other Reclassifications / Consolidated Revenue — — — 15,602.4 — 15,602.4 Costs of services — — — (12,663.5 ) — (12,663.5 ) Gross profit — — — 2,938.9 — 2,938.9 General and administrative costs 10.8 (305.8 ) — (1,212.5 ) — (1,507.5 ) Operating profit/(loss) 10.8 (305.8 ) — 1,726.4 — 1,431.4 Share of results of subsidiaries 1,179.2 1,710.2 — — (2,889.4 ) — Share of results of associates — — — 43.5 — 43.5 Profit before interest and taxation 1,190.0 1,404.4 — 1,769.9 (2,889.4 ) 1,474.9 Finance income — 27.8 102.3 300.6 (325.9 ) 104.8 Finance costs (127.1 ) (248.9 ) (103.1 ) (136.1 ) 325.9 (289.3 ) Revaluation of financial instruments — — (1.1 ) 174.0 — 172.9 Profit/(loss) before taxation 1,062.9 1,183.3 (1.9 ) 2,108.4 (2,889.4 ) 1,463.3 Taxation — (4.1 ) — (319.8 ) — (323.9 ) Profit/(loss) for the year 1,062.9 1,179.2 (1.9 ) 1,788.6 (2,889.4 ) 1,139.4 Attributable to: Equity holders of the parent 1,062.9 1,179.2 (1.9 ) 1,712.1 (2,889.4 ) 1,062.9 Non-controlling — — — 76.5 — 76.5 1,062.9 1,179.2 (1.9 ) 1,788.6 (2,889.4 ) 1,139.4 For the year ended 31 December 2017, £m 1 WPP plc Subsidiary WPP Other Reclassifications / Consolidated Revenue — — — 15,804.2 — 15,804.2 Costs of services — — — (12,629.0 ) — (12,629.0 ) Gross profit — — — 3,175.2 — 3,175.2 General and administrative costs 14.1 74.7 — (1,355.8 ) — (1,267.0 ) Operating profit 14.1 74.7 — 1,819.4 — 1,908.2 Share of results of subsidiaries 1,901.2 2,016.5 — — (3,917.7 ) — Share of results of associates — — — 113.5 — 113.5 Profit before interest and taxation 1,915.3 2,091.2 — 1,932.9 (3,917.7 ) 2,021.7 Finance income — 24.5 110.6 262.8 (302.7 ) 95.2 Finance costs (99.3 ) (221.5 ) (103.4 ) (148.3 ) 302.7 (269.8 ) Revaluation of financial instruments 0.6 — (5.4 ) 267.0 — 262.2 Profit before taxation 1,816.6 1,894.2 1.8 2,314.4 (3,917.7 ) 2,109.3 Taxation — 7.0 — (204.0 ) — (197.0 ) Profit for the year 1,816.6 1,901.2 1.8 2,110.4 (3,917.7 ) 1,912.3 Attributable to: Equity holders of the parent 1,816.6 1,901.2 1.8 2,014.7 (3,917.7 ) 1,816.6 Non-controlling — — — 95.7 — 95.7 1,816.6 1,901.2 1.8 2,110.4 (3,917.7 ) 1,912.3 Note 1 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. For the year ended 31 December 2016, £m 1 WPP plc Subsidiary WPP Other Reclassifications / Consolidated Revenue — — — 14,887.3 — 14,887.3 Costs of services — — — (11,846.5 ) — (11,846.5 ) Gross profit — — — 3,040.8 — 3,040.8 General and administrative costs 13.8 (828.2 ) (0.1 ) (163.2 ) — (977.7 ) Operating profit/(loss) 13.8 (828.2 ) (0.1 ) 2,877.6 — 2,063.1 Share of results of subsidiaries 1,497.4 2,518.2 — — (4,015.6 ) — Share of results of associates — — — 49.8 — 49.8 Profit/(loss) before interest and taxation 1,511.2 1,690.0 (0.1 ) 2,927.4 (4,015.6 ) 2,112.9 Finance income — 28.8 121.1 231.9 (301.4 ) 80.4 Finance costs (102.5 ) (222.1 ) (98.8 ) (132.5 ) 301.4 (254.5 ) Revaluation of financial instruments (8.6 ) — 7.0 (46.7 ) — (48.3 ) Profit before taxation 1,400.1 1,496.7 29.2 2,980.1 (4,015.6 ) 1,890.5 Taxation — 0.7 — (389.6 ) — (388.9 ) Profit for the year 1,400.1 1,497.4 29.2 2,590.5 (4,015.6 ) 1,501.6 Attributable to: Equity holders of the parent 1,400.1 1,497.4 29.2 2,489.0 (4,015.6 ) 1,400.1 Non-controlling — — — 101.5 — 101.5 1,400.1 1,497.4 29.2 2,590.5 (4,015.6 ) 1,501.6 Note 1 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. Condensed consolidating statement of comprehensive income For the year ended 31 December 2018, £m WPP plc Subsidiary Guarantors WPP Finance 2010 Other Reclassifications / Consolidated Profit/(loss) for the year 1,062.9 1,179.2 (1.9 ) 1,788.6 (2,889.4 ) 1,139.4 Items that may be reclassified subsequently to profit or loss: Exchange adjustments on foreign currency net investments 69.9 69.9 0.6 78.3 (139.8 ) 78.9 69.9 69.9 0.6 78.3 (139.8 ) 78.9 Items that will not be reclassified subsequently to profit or loss: Actuarial gain on defined benefit pension plans 8.9 8.9 — 8.9 (17.8 ) 8.9 Deferred tax on defined benefit pension plans (0.7 ) (0.7 ) — (0.7 ) 1.4 (0.7 ) Movements on equity investments held at fair value through other comprehensive income (247.9 ) (247.9 ) — (247.9 ) 495.8 (247.9 ) (239.7 ) (239.7 ) — (239.7 ) 479.4 (239.7 ) Other comprehensive (loss)/income for the year (169.8 ) (169.8 ) 0.6 (161.4 ) 339.6 (160.8 ) Total comprehensive income/(loss) for the year 893.1 1,009.4 (1.3 ) 1,627.2 (2,549.8 ) 978.6 Attributable to: Equity holders of the parent 893.1 1,009.4 (1.3 ) 1,541.7 (2,549.8 ) 893.1 Non-controlling — — — 85.5 — 85.5 893.1 1,009.4 (1.3 ) 1,627.2 (2,549.8 ) 978.6 For the year ended 31 December 2017, £m WPP plc Subsidiary Guarantors WPP Finance 2010 Other Reclassifications / Consolidated Profit for the year 1,816.6 1,901.2 1.8 2,110.4 (3,917.7 ) 1,912.3 Items that may be reclassified subsequently to profit or loss: Exchange adjustments on foreign currency net investments (445.5 ) (445.5 ) (0.6 ) (464.6 ) 891.0 (465.2 ) Gain on revaluation of available for sale investments 32.1 32.1 — 32.1 (64.2 ) 32.1 (413.4 ) (413.4 ) (0.6 ) (432.5 ) 826.8 (433.1 ) Items that will not be reclassified subsequently to profit or loss: Actuarial gain on defined benefit pension plans 17.0 17.0 — 17.0 (34.0 ) 17.0 Deferred tax on defined benefit pension plans (24.6 ) (24.6 ) — (24.6 ) 49.2 (24.6 ) (7.6 ) (7.6 ) — (7.6 ) 15.2 (7.6 ) Other comprehensive loss for the year (421.0 ) (421.0 ) (0.6 ) (440.1 ) 842.0 (440.7 ) Total comprehensive income for the year 1,395.6 1,480.2 1.2 1,670.3 (3,075.7 ) 1,471.6 Attributable to: Equity holders of the parent 1,395.6 1,480.2 1.2 1,594.3 (3,075.7 ) 1,395.6 Non-controlling — — — 76.0 — 76.0 1,395.6 1,480.2 1.2 1,670.3 (3,075.7 ) 1,471.6 For the year ended 31 December 2016, £m WPP plc Subsidiary Guarantors WPP Finance 2010 Other Reclassifications / Consolidated Profit for the year 1,400.1 1,497.4 29.2 2,590.5 (4,015.6 ) 1,501.6 Items that may be reclassified subsequently to profit or loss: Exchange adjustments on foreign currency net investments 1,309.9 1,309.9 (1.2 ) 1,379.2 (2,619.8 ) 1,378.0 Loss on revaluation of available for sale investments (93.1 ) (93.1 ) — (93.1 ) 186.2 (93.1 ) 1,216.8 1,216.8 (1.2 ) 1,286.1 (2,433.6 ) 1,284.9 Items that will not be reclassified subsequently to profit or loss: Actuarial loss on defined benefit pension plans (15.9 ) (15.9 ) — (15.9 ) 31.8 (15.9 ) Deferred tax on defined benefit pension plans (0.4 ) (0.4 ) — (0.4 ) 0.8 (0.4 ) (16.3 ) (16.3 ) — (16.3 ) 32.6 (16.3 ) Other comprehensive income/(loss) for the year 1,200.5 1,200.5 (1.2 ) 1,269.8 (2,401.0 ) 1,268.6 Total comprehensive income for the year 2,600.6 2,697.9 28.0 3,860.3 (6,416.6 ) 2,770.2 Attributable to: Equity holders of the parent 2,600.6 2,697.9 28.0 3,690.7 (6,416.6 ) 2,600.6 Non-controlling — — — 169.6 — 169.6 2,600.6 2,697.9 28.0 3,860.3 (6,416.6 ) 2,770.2 Condensed consolidating cash flow statement information For the year ended 31 December 2018, £m WPP plc Subsidiary WPP Other Subsidiaries Reclassifications/ Consolidated Net cash inflow/(outflow) from operating activities 2,308.8 (271.1 ) 42.9 (386.8 ) — 1,693.8 Investing activities Acquisitions — — — (298.8 ) — (298.8 ) Proceeds on disposal of investments and subsidiaries — — — 849.0 — 849.0 Purchases of property, plant and equipment — (10.4 ) — (304.4 ) — (314.8 ) Purchases of other intangible assets (including capitalised computer software) — — — (60.4 ) — (60.4 ) Proceeds on disposal of property, plant and equipment — — — 9.5 — 9.5 Net cash inflow/(outflow) from investing activities — (10.4 ) — 194.9 — 184.5 Financing activities Share option proceeds 1.2 — — — — 1.2 Cash consideration for non-controlling — (0.3 ) — (109.6 ) — (109.9 ) Share repurchases and buy-backs (104.3 ) — — (102.8 ) — (207.1 ) Net decrease in borrowings — — (58.1 ) (382.5 ) — (440.6 ) Financing and share issue costs — — — (3.8 ) — (3.8 ) Equity dividends paid (747.4 ) — — — — (747.4 ) Dividends paid to non-controlling — — — (106.2 ) — (106.2 ) Net cash outflow from financing activities (850.5 ) (0.3 ) (58.1 ) (704.9 ) — (1,613.8 ) Net increase/(decrease) in cash and cash equivalents 1,458.3 (281.8 ) (15.2 ) (896.8 ) — 264.5 Translation of cash and cash equivalents (4.7 ) (51.5 ) (5.4 ) 0.1 — (61.5 ) Cash and cash equivalents at beginning of year (2,627.7 ) (1,640.6 ) (27.4 ) 6,293.9 — 1,998.2 Cash and cash equivalents at end of year (1,174.1 ) (1,973.9 ) (48.0 ) 5,397.2 — 2,201.2 For the year ended 31 December 2017, £m WPP plc Subsidiary WPP Other Subsidiaries Reclassifications/ Consolidated WPP plc Net cash inflow/(outflow) from operating activities 32.9 (49.7 ) (13.6 ) 1,438.5 — 1,408.1 Investing activities Acquisitions — — — (477.5 ) — (477.5 ) Proceeds on disposal of investments and subsidiaries — — — 296.0 — 296.0 Purchases of property, plant and equipment — (10.4 ) — (278.5 ) — (288.9 ) Purchases of other intangible assets (including capitalised computer software) — — — (37.3 ) — (37.3 ) Proceeds on disposal of property, plant and equipment — — — 8.0 — 8.0 Net cash outflow from investing activities — (10.4 ) — (489.3 ) — (499.7 ) Financing activities Share option proceeds 6.4 — — — — 6.4 Cash consideration for non-controlling — (1.4 ) — (45.9 ) — (47.3 ) Share repurchases and buy-backs (289.6 ) — — (214.6 ) — (504.2 ) Net increase/(decrease) in borrowings (400.0 ) — — 999.6 — 599.6 Financing and share issue costs — — — (0.8 ) — (0.8 ) Equity dividends paid (751.5 ) — — — — (751.5 ) Dividends paid to non-controlling — — — (87.8 ) — (87.8 ) Net cash (outflow)/inflow from financing activities (1,434.7 ) (1.4 ) — 650.5 — (785.6 ) Net increase/(decrease) in cash and cash equivalents (1,401.8 ) (61.5 ) (13.6 ) 1,599.7 — 122.8 Translation of cash and cash equivalents (0.9 ) 48.4 1.3 (76.0 ) — (27.2 ) Cash and cash equivalents at beginning of year (1,225.0 ) (1,627.5 ) (15.1 ) 4,770.2 — 1,902.6 Cash and cash equivalents at end of year (2,627.7 ) (1,640.6 ) (27.4 ) 6,293.9 — 1,998.2 For the year ended 31 December 2016, £m WPP plc Subsidiary Guarantors WPP Finance 2010 Other Reclassifications/ Consolidated Net cash inflow/(outflow) from operating activities 963.1 1,002.2 65.5 (257.0 ) — 1,773.8 Investing activities Acquisitions — — — (719.3 ) — (719.3 ) Proceeds on disposal of investments and subsidiaries — — — 80.5 — 80.5 Purchases of property, plant and equipment — (1.1 ) — (251.0 ) — (252.1 ) Purchases of other intangible assets (including capitalised computer software) — — — (33.0 ) — (33.0 ) Proceeds on disposal of property, plant and equipment — — — 7.7 — 7.7 Net cash outflow from investing activities — (1.1 ) — (915.1 ) — (916.2 ) Financing activities Share option proceeds 27.2 — — — — 27.2 Cash consideration for non-controlling — (1.3 ) — (57.0 ) — (58.3 ) Share repurchases and buy-backs (274.5 ) — — (152.9 ) — (427.4 ) Net (decrease)/increase in borrowings (392.1 ) — — 369.6 — (22.5 ) Financing and share issue costs — — — (6.4 ) — (6.4 ) Equity dividends paid (616.5 ) — — — — (616.5 ) Dividends paid to non-controlling — — — (89.6 ) — (89.6 ) Net cash (outflow)/inflow from financing activities (1,255.9 ) (1.3 ) — 63.7 — (1,193.5 ) Net (decrease)/increase in cash and cash equivalents (292.8 ) 999.8 65.5 (1,108.4 ) — (335.9 ) Translation of cash and cash equivalents (5.7 ) (154.6 ) (13.1 ) 465.3 — 291.9 Cash and cash equivalents at beginning of year (926.5 ) (2,472.7 ) (67.5 ) 5,413.3 — 1,946.6 Cash and cash equivalents at end of year (1,225.0 ) (1,627.5 ) (15.1 ) 4,770.2 — 1,902.6 Condensed consolidating balance sheet information At 31 December 2018, £m WPP plc Subsidiary WPP Other Reclassifications/ Consolidated Non-current Intangible assets: Goodwill — — — 13,202.8 — 13,202.8 Other — — — 1,842.0 — 1,842.0 Property, plant and equipment — 26.1 — 1,056.9 — 1,083.0 Investment in subsidiaries 15,463.9 29,329.2 — — (44,793.1 ) — Interests in associates and joint ventures — — — 796.8 — 796.8 Other investments — — — 666.7 — 666.7 Deferred tax assets — — — 153.0 — 153.0 Trade and other receivables — — — 180.0 — 180.0 Intercompany receivables — 205.4 2,182.9 7,657.7 (10,046.0 ) — 15,463.9 29,560.7 2,182.9 25,555.9 (54,839.1 ) 17,924.3 Current assets Corporate income tax recoverable — — — 198.7 — 198.7 Trade and other receivables 0.6 497.9 0.1 12,602.9 — 13,101.5 Intercompany receivables 1,675.6 1,720.6 55.2 8,130.6 (11,582.0 ) — Cash and short-term deposits — 17.3 41.4 5,839.2 (3,254.7 ) 2,643.2 1,676.2 2,235.8 96.7 26,771.4 (14,836.7 ) 15,943.4 Current liabilities Trade and other payables (3.7 ) (57.5 ) (21.6 ) (14,955.6 ) — (15,038.4 ) Intercompany payables (5,190.3 ) (6,078.1 ) (0.9 ) (312.7 ) 11,582.0 — Corporate income tax payable — — — (545.9 ) — (545.9 ) Bank overdrafts, bonds and bank loans (1,174.1 ) (1,991.2 ) (89.4 ) (1,025.1 ) 3,254.7 (1,025.1 ) (6,368.1 ) (8,126.8 ) (111.9 ) (16,839.3 ) 14,836.7 (16,609.4 ) Net current (liabilities)/assets (4,691.9 ) (5,891.0 ) (15.2 ) 9,932.1 — (666.0 ) Total assets less current liabilities 10,772.0 23,669.7 2,167.7 35,488.0 (54,839.1 ) 17,258.3 Non-current Bonds and bank loans — — (2,151.8 ) (3,483.0 ) — (5,634.8 ) Trade and other payables — — (5.5 ) (835.9 ) — (841.4 ) Intercompany payables (1,389.8 ) (8,205.8 ) — (450.4 ) 10,046.0 — Deferred tax liabilities — — — (479.5 ) — (479.5 ) Provision for post-employment benefits — — — (184.3 ) — (184.3 ) Provisions for liabilities and charges — — — (311.7 ) — (311.7 ) (1,389.8 ) (8,205.8 ) (2,157.3 ) (5,744.8 ) 10,046.0 (7,451.7 ) Net assets 9,382.2 15,463.9 10.4 29,743.2 (44,793.1 ) 9,806.6 Attributable to: Equity shareholders’ funds 9,382.2 15,463.9 10.4 29,318.8 (44,793.1 ) 9,382.2 Non-controlling — — — 424.4 — 424.4 Total equity 9,382.2 15,463.9 10.4 29,743.2 (44,793.1 ) 9,806.6 At 31 December 2017, £m 1 WPP plc Subsidiary WPP Other Reclassifications/ Consolidated Non-current Intangible assets: Goodwill — — — 12,952.9 — 12,952.9 Other — — — 2,018.4 — 2,018.4 Property, plant and equipment — 16.5 — 963.0 — 979.5 Investment in subsidiaries 14,638.1 27,746.7 — — (42,384.8 ) — Interests in associates and joint ventures — — — 1,065.2 — 1,065.2 Other investments — — — 1,153.5 — 1,153.5 Deferred tax assets — — — 160.3 — 160.3 Trade and other receivables — — 1.6 174.6 — 176.2 Intercompany receivables 2 — 203.3 2,078.3 7,649.3 (9,930.9 ) — 14,638.1 27,966.5 2,079.9 26,137.2 (52,315.7 ) 18,506.0 Current assets Corporate income tax recoverable — — — 234.7 — 234.7 Trade and other receivables 0.3 457.3 0.1 12,073.0 — 12,530.7 Intercompany receivables 2 1,661.4 1,713.8 65.7 5,268.7 (8,709.6 ) — Cash and short-term deposits — 231.2 — 6,687.3 (4,527.1 ) 2,391.4 1,661.7 2,402.3 65.8 24,263.7 (13,236.7 ) 15,156.8 Current liabilities Trade and other payables (16.9 ) (113.9 ) (19.6 ) (14,090.7 ) — (14,241.1 ) Intercompany payables 2 (2,808.3 ) (5,607.8 ) — (293.5 ) 8,709.6 — Corporate income tax payable — — — (649.3 ) — (649.3 ) Bank overdrafts, bonds and bank loans (2,627.7 ) (1,871.8 ) (27.4 ) (624.3 ) 4,527.1 (624.1 ) (5,452.9 ) (7,593.5 ) (47.0 ) (15,657.8 ) 13,236.7 (15,514.5 ) Net current (liabilities)/assets (3,791.2 ) (5,191.2 ) 18.8 8,605.9 — (357.7 ) Total assets less current liabilities 10,846.9 22,775.3 2,098.7 34,743.1 (52,315.7 ) 18,148.3 Non-current Bonds and bank loans — — (2,087.1 ) (4,163.3 ) — (6,250.4 ) Trade and other payables — — — (992.8 ) — (992.8 ) Intercompany payables 2 (1,359.6 ) (8,137.2 ) — (434.1 ) 9,930.9 — Deferred tax liabilities — — — (513.7 ) — (513.7 ) Provision for post-employment benefits — — — (206.3 ) — (206.3 ) Provisions for liabilities and charges — — — (229.0 ) — (229.0 ) (1,359.6 ) (8,137.2 ) (2,087.1 ) (6,539.2 ) 9,930.9 (8,192.2 ) Net assets 9,487.3 14,638.1 11.6 28,203.9 (42,384.8 ) 9,956.1 Attributable to: Equity shareholders’ funds 9,487.3 14,638.1 11.6 27,735.1 (42,384.8 ) 9,487.3 Non-controlling — — — 468.8 — 468.8 Total equity 9,487.3 14,638.1 11.6 28,203.9 (42,384.8 ) 9,956.1 Notes 1 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. 2 Prior year figures have been restated to reclassify certain intercompany balances in an amount of £2,540.2 million from non-current |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | |
Statement [LineItems] | |
Condensed consolidating financial information for bonds issued | 30. Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors WPP Finance 2010 has in issue $500 million of 3.625% bonds due September 2022, $272 million ($28 million was repaid in 2018 from the $300 million initially issued) of 5.125% bonds due September 2042 and $812 million of 4.75% bonds due November 2021 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited and WPP Jubilee Limited as subsidiary guarantors. The issuer and guarantors of the bonds (issuer and subsidiary guarantors are 100% owned by WPP plc) are each subject to the reporting requirements under section 15(d) of the Securities Exchange Act of 1934. In accordance with SEC Regulation S-X 3-10, In the event that WPP Finance 2010 fails to pay the holders of the securities, thereby requiring WPP plc, WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited or WPP Jubilee Limited to make payment pursuant to the terms of their full and unconditional, and joint and several guarantee of those securities, there is no impediment to WPP plc, WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited or WPP Jubilee Limited obtaining reimbursement for any such payments from WPP Finance 2010. Condensed consolidating income statement information For the year ended 31 December 2018, £m WPP Subsidiary WPP Other Reclassifications / Consolidated Revenue — — — 15,602.4 — 15,602.4 Costs of services — — — (12,663.5 ) — (12,663.5 ) Gross profit — — — 2,938.9 — 2,938.9 General and administrative costs 10.8 (305.8 ) — (1,212.5 ) — (1,507.5 ) Operating profit/(loss) 10.8 (305.8 ) — 1,726.4 — 1,431.4 Share of results of subsidiaries 1,179.2 1,710.2 — — (2,889.4 ) — Share of results of associates — — — 43.5 — 43.5 Profit before interest and taxation 1,190.0 1,404.4 — 1,769.9 (2,889.4 ) 1,474.9 Finance income — 27.8 102.3 300.6 (325.9 ) 104.8 Finance costs (127.1 ) (248.9 ) (103.1 ) (136.1 ) 325.9 (289.3 ) Revaluation of financial instruments — — (1.1 ) 174.0 — 172.9 Profit/(loss) before taxation 1,062.9 1,183.3 (1.9 ) 2,108.4 (2,889.4 ) 1,463.3 Taxation — (4.1 ) — (319.8 ) — (323.9 ) Profit/(loss) for the year 1,062.9 1,179.2 (1.9 ) 1,788.6 (2,889.4 ) 1,139.4 Attributable to: Equity holders of the parent 1,062.9 1,179.2 (1.9 ) 1,712.1 (2,889.4 ) 1,062.9 Non-controlling — — — 76.5 — 76.5 1,062.9 1,179.2 (1.9 ) 1,788.6 (2,889.4 ) 1,139.4 For the year ended 31 December 2017, £m 1 WPP Subsidiary WPP Other Reclassifications / Consolidated Revenue — — — 15,804.2 — 15,804.2 Costs of services — — — (12,629.0 ) — (12,629.0 ) Gross profit — — — 3,175.2 — 3,175.2 General and administrative costs 14.1 74.7 — (1,355.8 ) — (1,267.0 ) Operating profit 14.1 74.7 — 1,819.4 — 1,908.2 Share of results of subsidiaries 1,901.2 2,016.5 — — (3,917.7 ) — Share of results of associates — — — 113.5 — 113.5 Profit before interest and taxation 1,915.3 2,091.2 — 1,932.9 (3,917.7 ) 2,021.7 Finance income — 24.5 110.6 262.8 (302.7 ) 95.2 Finance costs (99.3 ) (221.5 ) (103.4 ) (148.3 ) 302.7 (269.8 ) Revaluation of financial instruments 0.6 — (5.4 ) 267.0 — 262.2 Profit before taxation 1,816.6 1,894.2 1.8 2,314.4 (3,917.7 ) 2,109.3 Taxation — 7.0 — (204.0 ) — (197.0 ) Profit for the year 1,816.6 1,901.2 1.8 2,110.4 (3,917.7 ) 1,912.3 Attributable to: Equity holders of the parent 1,816.6 1,901.2 1.8 2,014.7 (3,917.7 ) 1,816.6 Non-controlling — — — 95.7 — 95.7 1,816.6 1,901.2 1.8 2,110.4 (3,917.7 ) 1,912.3 Note 1 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. For the year ended 31 December 2016, £m 1 WPP Subsidiary WPP Other Reclassifications / Consolidated Revenue — — — 14,887.3 — 14,887.3 Costs of services — — — (11,846.5 ) — (11,846.5 ) Gross profit — — — 3,040.8 — 3,040.8 General and administrative costs 13.8 (828.2 ) (0.1 ) (163.2 ) — (977.7 ) Operating profit/(loss) 13.8 (828.2 ) (0.1 ) 2,877.6 — 2,063.1 Share of results of subsidiaries 1,497.4 2,518.2 — — (4,015.6 ) — Share of results of associates — — — 49.8 — 49.8 Profit/(loss) before interest and taxation 1,511.2 1,690.0 (0.1 ) 2,927.4 (4,015.6 ) 2,112.9 Finance income — 28.8 121.1 231.9 (301.4 ) 80.4 Finance costs (102.5 ) (222.1 ) (98.8 ) (132.5 ) 301.4 (254.5 ) Revaluation of financial instruments (8.6 ) — 7.0 (46.7 ) — (48.3 ) Profit before taxation 1,400.1 1,496.7 29.2 2,980.1 (4,015.6 ) 1,890.5 Taxation — 0.7 — (389.6 ) — (388.9 ) Profit for the year 1,400.1 1,497.4 29.2 2,590.5 (4,015.6 ) 1,501.6 Attributable to: Equity holders of the parent 1,400.1 1,497.4 29.2 2,489.0 (4,015.6 ) 1,400.1 Non-controlling — — — 101.5 — 101.5 1,400.1 1,497.4 29.2 2,590.5 (4,015.6 ) 1,501.6 Note 1 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. Condensed consolidating statement of comprehensive income For the year ended 31 December 2018, £m WPP plc Subsidiary Guarantors WPP Finance 2010 Other Reclassifications / Consolidated Profit/(loss) for the year 1,062.9 1,179.2 (1.9 ) 1,788.6 (2,889.4 ) 1,139.4 Items that may be reclassified subsequently to profit or loss: Exchange adjustments on foreign currency net investments 69.9 69.9 0.6 78.3 (139.8 ) 78.9 69.9 69.9 0.6 78.3 (139.8 ) 78.9 Items that will not be reclassified subsequently to profit or loss: Actuarial gain on defined benefit pension plans 8.9 8.9 — 8.9 (17.8 ) 8.9 Deferred tax on defined benefit pension plans (0.7 ) (0.7 ) — (0.7 ) 1.4 (0.7 ) Movements on equity investments held at fair value through other comprehensive income (247.9 ) (247.9 ) — (247.9 ) 495.8 (247.9 ) (239.7 ) (239.7 ) — (239.7 ) 479.4 (239.7 ) Other comprehensive (loss)/income for the year (169.8 ) (169.8 ) 0.6 (161.4 ) 339.6 (160.8 ) Total comprehensive income/(loss) for the year 893.1 1,009.4 (1.3 ) 1,627.2 (2,549.8 ) 978.6 Attributable to: Equity holders of the parent 893.1 1,009.4 (1.3 ) 1,541.7 (2,549.8 ) 893.1 Non-controlling — — — 85.5 — 85.5 893.1 1,009.4 (1.3 ) 1,627.2 (2,549.8 ) 978.6 For the year ended 31 December 2017, £m WPP plc Subsidiary Guarantors WPP Finance 2010 Other Reclassifications / Consolidated Profit for the year 1,816.6 1,901.2 1.8 2,110.4 (3,917.7 ) 1,912.3 Items that may be reclassified subsequently to profit or loss: Exchange adjustments on foreign currency net investments (445.5 ) (445.5 ) (0.6 ) (464.6 ) 891.0 (465.2 ) Gain on revaluation of available for sale investments 32.1 32.1 — 32.1 (64.2 ) 32.1 (413.4 ) (413.4 ) (0.6 ) (432.5 ) 826.8 (433.1 ) Items that will not be reclassified subsequently to profit or loss: Actuarial gain on defined benefit pension plans 17.0 17.0 — 17.0 (34.0 ) 17.0 Deferred tax on defined benefit pension plans (24.6 ) (24.6 ) — (24.6 ) 49.2 (24.6 ) (7.6 ) (7.6 ) — (7.6 ) 15.2 (7.6 ) Other comprehensive loss for the year (421.0 ) (421.0 ) (0.6 ) (440.1 ) 842.0 (440.7 ) Total comprehensive income for the year 1,395.6 1,480.2 1.2 1,670.3 (3,075.7 ) 1,471.6 Attributable to: Equity holders of the parent 1,395.6 1,480.2 1.2 1,594.3 (3,075.7 ) 1,395.6 Non-controlling — — — 76.0 — 76.0 1,395.6 1,480.2 1.2 1,670.3 (3,075.7 ) 1,471.6 For the year ended 31 December 2016, £m WPP plc Subsidiary Guarantors WPP Finance 2010 Other Reclassifications / Consolidated Profit for the year 1,400.1 1,497.4 29.2 2,590.5 (4,015.6 ) 1,501.6 Items that may be reclassified subsequently to profit or loss: Exchange adjustments on foreign currency net investments 1,309.9 1,309.9 (1.2 ) 1,379.2 (2,619.8 ) 1,378.0 Loss on revaluation of available for sale investments (93.1 ) (93.1 ) — (93.1 ) 186.2 (93.1 ) 1,216.8 1,216.8 (1.2 ) 1,286.1 (2,433.6 ) 1,284.9 Items that will not be reclassified subsequently to profit or loss: Actuarial loss on defined benefit pension plans (15.9 ) (15.9 ) — (15.9 ) 31.8 (15.9 ) Deferred tax on defined benefit pension plans (0.4 ) (0.4 ) — (0.4 ) 0.8 (0.4 ) (16.3 ) (16.3 ) — (16.3 ) 32.6 (16.3 ) Other comprehensive income/(loss) for the year 1,200.5 1,200.5 (1.2 ) 1,269.8 (2,401.0 ) 1,268.6 Total comprehensive income for the year 2,600.6 2,697.9 28.0 3,860.3 (6,416.6 ) 2,770.2 Attributable to: Equity holders of the parent 2,600.6 2,697.9 28.0 3,690.7 (6,416.6 ) 2,600.6 Non-controlling — — — 169.6 — 169.6 2,600.6 2,697.9 28.0 3,860.3 (6,416.6 ) 2,770.2 Condensed consolidating cash flow statement information For the year ended 31 December 2018, £m WPP Subsidiary WPP Other Subsidiaries Reclassifications/ Consolidated Net cash inflow/(outflow) from operating activities 2,308.8 (271.1 ) 42.9 (386.8 ) — 1,693.8 Investing activities Acquisitions — — — (298.8 ) — (298.8 ) Proceeds on disposal of investments and subsidiaries — — — 849.0 — 849.0 Purchases of property, plant and equipment — (10.4 ) — (304.4 ) — (314.8 ) Purchases of other intangible assets (including capitalised computer software) — — — (60.4 ) — (60.4 ) Proceeds on disposal of property, plant and equipment — — — 9.5 — 9.5 Net cash inflow/(outflow) from investing activities — (10.4 ) — 194.9 — 184.5 Financing activities Share option proceeds 1.2 — — — — 1.2 Cash consideration for non-controlling — (0.3 ) — (109.6 ) — (109.9 ) Share repurchases and buy-backs (104.3 ) — — (102.8 ) — (207.1 ) Net decrease in borrowings — — (58.1 ) (382.5 ) — (440.6 ) Financing and share issue costs — — — (3.8 ) — (3.8 ) Equity dividends paid (747.4 ) — — — — (747.4 ) Dividends paid to non-controlling — — — (106.2 ) — (106.2 ) Net cash outflow from financing activities (850.5 ) (0.3 ) (58.1 ) (704.9 ) — (1,613.8 ) Net increase/(decrease) in cash and cash equivalents 1,458.3 (281.8 ) (15.2 ) (896.8 ) — 264.5 Translation of cash and cash equivalents (4.7 ) (51.5 ) (5.4 ) 0.1 — (61.5 ) Cash and cash equivalents at beginning of year (2,627.7 ) (1,636.8 ) (27.4 ) 6,290.1 — 1,998.2 Cash and cash equivalents at end of year (1,174.1 ) (1,970.1 ) (48.0 ) 5,393.4 — 2,201.2 For the year ended 31 December 2017, £m WPP Subsidiary WPP Other Subsidiaries Reclassifications/ Consolidated Net cash inflow/(outflow) from operating activities 32.9 (49.7 ) (13.6 ) 1,438.5 — 1,408.1 Investing activities Acquisitions — — — (477.5 ) — (477.5 ) Proceeds on disposal of investments and subsidiaries — — — 296.0 — 296.0 Purchases of property, plant and equipment — (10.4 ) — (278.5 ) — (288.9 ) Purchases of other intangible assets (including capitalised computer software) — — — (37.3 ) — (37.3 ) Proceeds on disposal of property, plant and equipment — — — 8.0 — 8.0 Net cash outflow from investing activities — (10.4 ) — (489.3 ) — (499.7 ) Financing activities Share option proceeds 6.4 — — — — 6.4 Cash consideration for non-controlling — (1.4 ) — (45.9 ) — (47.3 ) Share repurchases and buy-backs (289.6 ) — — (214.6 ) — (504.2 ) Net increase/(decrease) in borrowings (400.0 ) — — 999.6 — 599.6 Financing and share issue costs — — — (0.8 ) — (0.8 ) Equity dividends paid (751.5 ) — — — — (751.5 ) Dividends paid to non-controlling — — — (87.8 ) — (87.8 ) Net cash (outflow)/inflow from financing activities (1,434.7 ) (1.4 ) — 650.5 — (785.6 ) Net increase/(decrease) in cash and cash equivalents (1,401.8 ) (61.5 ) (13.6 ) 1,599.7 — 122.8 Translation of cash and cash equivalents (0.9 ) 48.4 1.3 (76.0 ) — (27.2 ) Cash and cash equivalents at beginning of year (1,225.0 ) (1,623.7 ) (15.1 ) 4,766.4 — 1,902.6 Cash and cash equivalents at end of year (2,627.7 ) (1,636.8 ) (27.4 ) 6,290.1 — 1,998.2 For the year ended 31 December 2016, £m WPP Subsidiary WPP Other Subsidiaries Reclassifications/ Consolidated Net cash inflow/(outflow) from operating activities 963.1 1,002.2 65.5 (257.0 ) — 1,773.8 Investing activities Acquisitions — — — (719.3 ) — (719.3 ) Proceeds on disposal of investments and subsidiaries — — — 80.5 — 80.5 Purchases of property, plant and equipment — (1.1 ) — (251.0 ) — (252.1 ) Purchases of other intangible assets (including capitalised computer software) — — — (33.0 ) — (33.0 ) Proceeds on disposal of property, plant and equipment — — — 7.7 — 7.7 Net cash outflow from investing activities — (1.1 ) — (915.1 ) — (916.2 ) Financing activities Share option proceeds 27.2 — — — — 27.2 Cash consideration for non-controlling — (1.3 ) — (57.0 ) — (58.3 ) Share repurchases and buy-backs (274.5 ) — — (152.9 ) — (427.4 ) Net (decrease)/increase in borrowings (392.1 ) — — 369.6 — (22.5 ) Financing and share issue costs — — — (6.4 ) — (6.4 ) Equity dividends paid (616.5 ) — — — — (616.5 ) Dividends paid to non-controlling — — — (89.6 ) — (89.6 ) Net cash (outflow)/inflow from financing activities (1,255.9 ) (1.3 ) — 63.7 — (1,193.5 ) Net (decrease)/increase in cash and cash equivalents (292.8 ) 999.8 65.5 (1,108.4 ) — (335.9 ) Translation of cash and cash equivalents (5.7 ) (154.6 ) (13.1 ) 465.3 — 291.9 Cash and cash equivalents at beginning of year (926.5 ) (2,468.9 ) (67.5 ) 5,409.5 — 1,946.6 Cash and cash equivalents at end of year (1,225.0 ) (1,623.7 ) (15.1 ) 4,766.4 — 1,902.6 Condensed consolidating balance sheet information For the year ended 31 December 2018, £m WPP plc Subsidiary WPP Other Reclassifications/ Consolidated Non-current Intangible assets: Goodwill — — — 13,202.8 — 13,202.8 Other — — — 1,842.0 — 1,842.0 Property, plant and equipment — 26.1 — 1,056.9 — 1,083.0 Investment in subsidiaries 15,463.9 29,497.8 — — (44,961.7 ) — Interests in associates and joint ventures — — — 796.8 — 796.8 Other investments — — — 666.7 — 666.7 Deferred tax assets — — — 153.0 — 153.0 Trade and other receivables — — — 180.0 — 180.0 Intercompany receivables — 205.4 2,182.9 7,657.7 (10,046.0 ) — 15,463.9 29,729.3 2,182.9 25,555.9 (55,007.7 ) 17,924.3 Current assets Corporate income tax recoverable — — — 198.7 — 198.7 Trade and other receivables 0.6 497.9 0.1 12,602.9 — 13,101.5 Intercompany receivables 1,675.6 1,720.6 55.2 8,129.9 (11,581.3 ) — Cash and short-term deposits — 21.1 41.4 5,835.4 (3,254.7 ) 2,643.2 1,676.2 2,239.6 96.7 26,766.9 (14,836.0 ) 15,943.4 Current liabilities Trade and other payables (3.7 ) (57.5 ) (21.6 ) (14,955.6 ) — (15,038.4 ) Intercompany payables (5,190.3 ) (6,250.5 ) (0.9 ) (139.6 ) 11,581.3 — Corporate income tax payable — — — (545.9 ) — (545.9 ) Bank overdrafts, bonds and bank loans (1,174.1 ) (1,991.2 ) (89.4 ) (1,025.1 ) 3,254.7 (1,025.1 ) (6,368.1 ) (8,299.2 ) (111.9 ) (16,666.2 ) 14,836.0 (16,609.4 ) Net current (liabilities)/assets (4,691.9 ) (6,059.6 ) (15.2 ) 10,100.7 — (666.0 ) Total assets less current liabilities 10,772.0 23,669.7 2,167.7 35,656.6 (55,007.7 ) 17,258.3 Non-current Bonds and bank loans — — (2,151.8 ) (3,483.0 ) — (5,634.8 ) Trade and other payables — — (5.5 ) (835.9 ) — (841.4 ) Intercompany payables (1,389.8 ) (8,205.8 ) — (450.4 ) 10,046.0 — Deferred tax liabilities — — — (479.5 ) — (479.5 ) Provision for post-employment benefits — — — (184.3 ) — (184.3 ) Provisions for liabilities and charges — — — (311.7 ) — (311.7 ) (1,389.8 ) (8,205.8 ) (2,157.3 ) (5,744.8 ) 10,046.0 (7,451.7 ) Net assets 9,382.2 15,463.9 10.4 29,911.8 (44,961.7 ) 9,806.6 Attributable to: Equity shareholders’ funds 9,382.2 15,463.9 10.4 29,487.4 (44,961.7 ) 9,382.2 Non-controlling — — — 424.4 — 424.4 Total equity 9,382.2 15,463.9 10.4 29,911.8 (44,961.7 ) 9,806.6 At 31 December 2017, £m 1 WPP plc Subsidiary WPP Other Reclassifications/ Consolidated Non-current Intangible assets: Goodwill — — — 12,952.9 — 12,952.9 Other — — — 2,018.4 — 2,018.4 Property, plant and equipment — 16.5 — 963.0 — 979.5 Investment in subsidiaries 14,638.1 27,915.3 — — (42,553.4 ) — Interests in associates and joint ventures — — — 1,065.2 — 1,065.2 Other investments — — — 1,153.5 — 1,153.5 Deferred tax assets — — — 160.3 — 160.3 Trade and other receivables — — 1.6 174.6 — 176.2 Intercompany receivables 2 — 203.3 2,078.3 7,649.3 (9,930.9 ) — 14,638.1 28,135.1 2,079.9 26,137.2 (52,484.3 ) 18,506.0 Current assets Corporate income tax recoverable — — — 234.7 — 234.7 Trade and other receivables 0.3 457.3 0.1 12,073.0 — 12,530.7 Intercompany receivables 2 1,661.4 1,713.8 65.7 5,268.8 (8,709.7 ) — Cash and short-term deposits — 235.0 — 6,683.5 (4,527.1 ) 2,391.4 1,661.7 2,406.1 65.8 24,260.0 (13,236.8 ) 15,156.8 Current liabilities Trade and other payables (16.9 ) (113.9 ) (19.6 ) (14,090.7 ) — (14,241.1 ) Intercompany payables 2 (2,808.3 ) (5,780.2 ) — (121.2 ) 8,709.7 — Corporate income tax payable — — — (649.3 ) — (649.3 ) Bank overdrafts, bonds and bank loans (2,627.7 ) (1,871.8 ) (27.4 ) (624.3 ) 4,527.1 (624.1 ) (5,452.9 ) (7,765.9 ) (47.0 ) (15,485.5 ) 13,236.8 (15,514.5 ) Net current (liabilities)/assets (3,791.2 ) (5,359.8 ) 18.8 8,774.5 — (357.7 ) Total assets less current liabilities 10,846.9 22,775.3 2,098.7 34,911.7 (52,484.3 ) 18,148.3 Non-current Bonds and bank loans — — (2,087.1 ) (4,163.3 ) — (6,250.4 ) Trade and other payables — — — (992.8 ) — (992.8 ) Intercompany payables 2 (1,359.6 ) (8,137.2 ) — (434.1 ) 9,930.9 — Deferred tax liabilities — — — (513.7 ) — (513.7 ) Provision for post-employment benefits — — — (206.3 ) — (206.3 ) Provisions for liabilities and charges — — — (229.0 ) — (229.0 ) (1,359.6 ) (8,137.2 ) (2,087.1 ) (6,539.2 ) 9,930.9 (8,192.2 ) Net assets 9,487.3 14,638.1 11.6 28,372.5 (42,553.4 ) 9,956.1 Attributable to: Equity shareholders’ funds 9,487.3 14,638.1 11.6 27,903.7 (42,553.4 ) 9,487.3 Non-controlling — — — 468.8 — 468.8 Total equity 9,487.3 14,638.1 11.6 28,372.5 (42,553.4 ) 9,956.1 Notes 1 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. 2 Prior year figures have been restated to reclassify certain intercompany balances in an amount of £2,540.2 million from non-current |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Basis of preparation | Basis of preparation The consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of certain financial instruments. The principal accounting policies are set out below. The financial statements were approved by the Board of Directors and authorized for issue on 26 April 2019 |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the results of the Company and all its subsidiary undertakings made up to the same accounting date. All intra-Group balances, transactions, income and expenses are eliminated in full on consolidation. The results of subsidiary undertakings acquired or disposed of during the period are included or excluded from the consolidated income statement from the effective date of acquisition or disposal. |
New IFRS accounting pronouncements | New IFRS accounting pronouncements At the date of authorisation of these financial statements, the following Standards, which have not been applied in these financial statements, were in issue but not yet effective: • IFRS 16 Leases; and • IFRIC 23 Uncertainty over Income Tax Treatments. IFRS 16 is effective from 1 January 2019. The standard eliminates the classification of leases as either operating or finance leases and introduces a single accounting model. Lessees will be required to recognise a right-of-use asset and related lease liability for the majority of their operating leases and show depreciation of leased assets and interest on lease liabilities separately in the income statement. IFRS 16 will require the Group to recognise substantially all of its operating leases on the balance sheet. The Group will adopt IFRS 16 effective 1 January 2019 on a modified retrospective basis and apply the standard retrospectively with the cumulative effect of initially applying the standard recognised at the date of initial application as an adjustment to retained earnings. Accordingly, prior year financial information will not be restated and will continue to be reported under IAS 17 Leases. The right-of-use asset and lease liability will initially be measured at the present value of the remaining lease payments, with the right-of-use asset being subject to certain adjustments. The estimated right-of-use asset and lease liability recorded on the balance sheet as of 1 January 2019 will be approximately £2.0 billion to £2.5 billion. Depreciation of the right-of-use asset and recognition of interest on the lease liability in the income statement will replace amounts recognised as rent expense under IAS 17, resulting in an estimated increase to operating margin of approximately 0.4 to 0.6 margin points and an estimated decrease to diluted earnings per share of approximately 1.3p to 1.6p. IFRIC 23 is effective from 1 January 2019. The Group does not consider that this Standard will have a significant impact on the financial statements of the Group. In the current year, the following Standards and Interpretations became effective: • IFRS 9 Financial Instruments; and • IFRS 15 Revenue from Contracts with Customers. Impact of the Adoption of IFRS 9 Financial Instruments The Group has adopted IFRS 9 Financial Instruments from 1 January 2018 which resulted in the movements in fair value of certain equity investments previously designated as ‘available-for-sale’ being designated as fair value through other comprehensive income or fair value through profit or loss. The cumulative movements in fair value taken to equity up to 31 December 2017 for these investments have been transferred from other reserves to retained earnings, resulting in an increase in retained earnings of £407.4 million and a corresponding decrease in other reserves. Amounts classified as loans and receivables under IAS 39 Financial Instruments: Recognition and Measurement have been reclassified to amortised cost under IFRS 9. Further details on reclassification are set out in note 24. The requirement under IFRS 9 to use an expected loss method of impairment of financial assets did not have a material effect on the Group due to the short-term nature of the Group’s trade and other receivables, which are mainly due from large national or multinational companies. The Group continues to apply the hedge accounting requirements of IAS 39, as permitted by IFRS 9. Comparatives have not been restated in accordance with the transitional guidance in IFRS 9 and the cumulative impact of adopting the standard on reserves at 1 January 2018 is shown in the consolidated statement of changes in equity. Impact of the Adoption of IFRS 15 Revenue from Contracts with Customers The Group has adopted IFRS 15 Revenue from Contracts with Customers from 1 January 2018 which resulted in changes in certain aspects of our accounting policies and adjustments to the amounts recognised in the financial statements. In accordance with the transition provisions in IFRS 15, the Group has adopted the new rules retrospectively and has restated comparatives for each prior year presented in the consolidated financial statements. The new standard establishes a five-step model where consideration received or expected to be received is recognised as revenue when contractual performance obligations are satisfied by transferring control of the relevant goods or services to the customer. Adopting IFRS 15 did not have a significant impact on the timing of the Group’s revenue recognition nor on the Group’s equity. However, for certain of our contracts, the adoption of IFRS 15 resulted in a change in our accounting for certain third-party costs. Third-party costs are included in revenue when the Group acts as principal with respect to the services provided to the client and are excluded when the Group acts as agent. Under IFRS 15, the principal versus agent assessment is based on whether the Group controls the relevant services before they are transferred to the client. As a result of the adoption of IFRS 15, there was an increase in third-party costs included in revenue and costs of services. This change increased revenue and costs of services by the same amount and therefore had no impact on gross profit or operating profit. The following table summarises the impact of adopting IFRS 15 on the Group’s consolidated income statement for the years ended 31 December 2017 and 2016. Year ended 31 December 2017 Year ended 31 December 2016 £ million As IFRS 15 As As IFRS 15 As Revenue 15,265.4 538.8 15,804.2 14,388.9 498.4 14,887.3 Costs of services (12,090.2 ) (538.8 ) (12,629.0 ) (11,348.1 ) (498.4 ) (11,846.5 ) Gross profit 3,175.2 – 3,175.2 3,040.8 – 3,040.8 Work in progress includes outlays incurred on behalf of clients, including production costs, and other third-party costs that have not yet been billed and are considered receivables under IFRS 15. As such, £401.1 million of ‘Work in progress’ has been reclassified as ‘Trade and other receivables’ as of 31 December 2017. Other than this reclassification, the impact of the adoption of IFRS 15 on the consolidated balance sheet, consolidated cash flow statement, consolidated statement of changes in equity and earnings per share was immaterial. |
Goodwill and other intangible assets | Goodwill and other intangible assets Intangible assets comprise goodwill, certain acquired separable corporate brand names, acquired customer relationships, acquired proprietary tools and capitalised computer software not integral to a related item of hardware. Goodwill represents the excess of fair value attributed to investments in businesses or subsidiary undertakings over the fair value of the underlying net assets, including intangible assets, at the date of their acquisition. Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the net present value of future cash flows derived from the underlying assets using a projection period of up to five years for each cash-generating unit. After the projection period a steady growth rate representing an appropriate long-term growth rate for the industry is applied. Any impairment is recognised immediately as an expense and is not subsequently reversed. Corporate brand names, customer relationships and proprietary tools acquired as part of acquisitions of businesses are capitalised separately from goodwill as intangible assets if their value can be measured reliably on initial recognition and it is probable that the expected future economic benefits that are attributable to the asset will flow to the Group. Certain corporate brands of the Group are considered to have an indefinite economic life because of the institutional nature of the corporate brand names, their proven ability to maintain market leadership and profitable operations over long periods of time and the Group’s commitment to develop and enhance their value. The carrying value of these intangible assets is reviewed at least annually for impairment and adjusted to the recoverable amount if required. Amortisation is provided at rates calculated to write off the cost less estimated residual value of each asset on a straight-line basis over its estimated useful life as follows: • Brand names (with finite lives) – 10-20 years. • Customer-related intangibles – 3-10 years. • Other proprietary tools – 3-10 years. • Other (including capitalised computer software) – 3-5 years. |
Contingent consideration | Contingent consideration Contingent consideration is accounted for in accordance with IFRS 3 Business Combinations. Contingent consideration only applies to situations where contingent payments are not dependent on future employment of vendors and any such payments are expensed when they relate to future employment. Future anticipated payments to vendors in respect of contingent consideration (earnout agreements) are initially recorded at fair value which is the present value of the expected cash outflows of the obligations. The obligations are dependent on the future financial performance of the interests acquired (typically over a four- to five-year period following the year of acquisition) and assume the operating companies improve profits in line with Directors’ estimates. The Directors derive their estimates from internal business plans together with financial due diligence performed in connection with the acquisition. Subsequent adjustments to the fair value are recorded in the consolidated income statement within revaluation of financial instruments. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are shown at cost less accumulated depreciation and any provision for impairment with the exception of freehold land which is not depreciated. The Group assesses the carrying value of its property, plant and equipment to determine if any impairment has occurred. Where this indicates that an asset may be impaired, the Group applies the requirements of IAS 36 Impairment of Assets in assessing the carrying amount of the asset. This process includes comparing its recoverable amount with its carrying value. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset on a straight-line basis over its estimated useful life, as follows: • Freehold buildings – 50 years. • Leasehold land and buildings – over the term of the lease or life of the asset, if shorter. • Fixtures, fittings and equipment – 3-10 years. • Computer equipment – 3-5 years. |
Interests in associates and joint ventures | Interests in associates and joint ventures An associate is an entity over which the Group has significant influence. In certain circumstances, significant influence may be represented by factors other than ownership and voting rights, such as representation on the Board of Directors. The Group’s share of the profits less losses of associate undertakings net of tax, interest and non-controlling interests is included in the consolidated income statement and the Group’s share of net assets is shown within interests in associates in the consolidated balance sheet. The Group’s share of the profits less losses and net assets is based on current information produced by the undertakings, adjusted to conform with the accounting policies of the Group. The Group assesses the carrying value of its associate undertakings to determine if any impairment has occurred. Where this indicates that an investment may be impaired, the Group applies the requirements of IAS 36 in assessing the carrying amount of the investment. This process includes comparing its recoverable amount with its carrying value. The Group accounts for joint venture investments under the equity method which is consistent with the Group’s treatment of associates. |
Other investments | Other investments The Group has adopted IFRS 9 Financial Instruments from 1 January 2018 which resulted in the movements in fair value of certain equity investments previously designated as ‘available-for-sale’ being designated as fair value through other comprehensive income or fair value through profit or loss. Further details on reclassifications are set out in note 24. Movements in fair value through profit or loss are recorded in the consolidated income statement within revaluation of financial instruments. |
Accrued and deferred income | Accrued and deferred income Accrued income is a contract asset and is recognised when a performance obligation has been satisfied but has not yet been billed. Contract assets are transferred to receivables when the right to consideration is unconditional and billed per the terms of the contractual agreement. In certain cases, payments are received from customers prior to satisfaction of performance obligations and recognised as deferred income. These balances are considered contract liabilities and are typically related to prepayments for third party expenses that are incurred shortly after billing. |
Trade receivables and work in progress | Trade receivables and work in progress Trade receivables are stated net of provisions for bad and doubtful debts. The Group has adopted IFRS 9 Financial Instruments from 1 January 2018 which requires an expected loss method of impairment of financial assets to be used. The implementation of this did not have a material impact on the Group. The Group has applied the simplified approach to measuring expected credit losses, as permitted by IFRS 9. Therefore the Group does not track changes in credit risk, but recognises a loss allowance based on the financial asset’s lifetime expected credit loss. The Group measures expected credit losses based on the ageing of the receivable, based on the Group’s historical experience and informed credit assessment. The Group considers a loss allowance to be required for 50% of all invoices aged 180 days to 1 year and 100% of all invoices aged over 1 year, with adjustments where there is specific information to indicate that recoverability of the balance is likely. Further credit losses are recognised where the Group has information that indicates it is unlikely to recover balances in full. Further details on provisions for bad and doubtful debts are provided in note 16. Work in progress includes outlays incurred on behalf of clients, including production costs, and other third-party costs that have not yet been billed and are considered receivables under IFRS 15 Revenue from Contracts with Customers. |
Foreign currency and interest rate hedging | Foreign currency and interest rate hedging The Group’s policy on interest rate and foreign exchange rate management sets out the instruments and methods available to hedge interest and currency risk exposures and the control procedures in place to ensure effectiveness. The Group uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The Group does not hold or issue derivative financial instruments for speculative purposes. Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each balance sheet date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. At the inception of the hedge relationship the entity documents the relationship between the hedging instrument and hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument that is used in a hedging relationship is highly effective in offsetting changes in fair values or cash flows of the hedged item. Note 24 contains details of the fair values of the derivative instruments used for hedging purposes. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in profit or loss immediately, together with any changes in the fair value of the hedged item that is attributable to the hedged risk. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow or net investment hedges is recognised in other comprehensive income and deferred in equity. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. Amounts deferred in equity are recycled in profit or loss in the periods when the hedged item is recognised in profit or loss. However, when the forecast transaction that is hedged results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the asset or liability. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained in equity until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in equity is transferred to net profit or loss for the period. Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of host contracts and the host contracts are not carried at fair value with unrealised gains or losses reported in the consolidated income statement. |
Liabilities in respect of option agreements | Liabilities in respect of option agreements Option agreements that allow the Group’s equity partners to require the Group to purchase a non-controlling interest are treated as derivatives over equity instruments and are recorded in the consolidated balance sheet initially at the present value of the redemption amount in accordance with IAS 32 Financial Instruments: Presentation and subsequently measured at fair value in accordance with IFRS 9 Financial Instruments. The movement in the fair value is recognised as income or expense within revaluation of financial instruments in the consolidated income statement. |
Derecognition of financial liabilities | Derecognition of financial liabilities In accordance with IFRS 9 Financial Instruments, a financial liability of the Group is only released to the consolidated income statement when the underlying legal obligation is extinguished. |
Debt | Debt Interest-bearing debt is recorded at the proceeds received, net of direct issue costs. |
Borrowing costs | Borrowing costs Finance costs of borrowing are recognised in the consolidated income statement over the term of those borrowings. |
Revenue recognition | Revenue recognition The Group is a leading worldwide creative transformation organisation offering national and multinational clients a comprehensive range of communications, experience, commerce and technology services. Contracts often involve multiple agencies offering different services in different countries. As such, the terms of local, regional, and global contracts can vary to meet client needs and regulatory requirements. Consistent with the industry, contracts are typically short-term in nature and tend to be cancellable by either party with 90 days notice. The Group is generally entitled to payment for work performed to date. The Group is generally paid in arrears for its services. Invoices are typically payable within 30 to 60 days. Revenue comprises commissions and fees earned in respect of amounts billed and is stated exclusive of VAT, sales taxes and trade discounts. 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, predominantly media and data collection costs. Costs to obtain a contract are typically expensed as incurred as the contracts are generally short-term in nature. In most instances, promised services in a contract are not considered distinct or represent a series of services that are substantially the same with the same pattern of transfer to the customer and, as such, are accounted for as a single performance obligation. However, where there are contracts with services that are capable of being distinct, are distinct within the context of the contract, and are accounted for as separate performance obligations, revenue is allocated to each of the performance obligations based on relative standalone selling prices. Revenue is recognised when a performance obligation is satisfied, in accordance with the terms of the contractual arrangement. Typically performance obligations are satisfied over-time as services are rendered. Revenue recognised over-time is based on the proportion of the level of service performed. Either an input method or an output method, depending on the particular arrangement, is used to measure progress for each performance obligation. For most fee arrangements, costs incurred are used as an objective input measure of performance. The primary input of substantially all work performed under these arrangements is labour. There is normally a direct relationship between costs incurred and the proportion of the contract performed to date. In other circumstances relevant output measures, such as the achievement of any project milestones stipulated in the contract, are used to assess proportional performance. For our retainer arrangements, we have a stand ready obligation to perform services on an ongoing basis over the life of the contract. The scope of these arrangements are broad and generally are not reconcilable to another input or output criteria. In these instances, revenue is recognised using a time-based method resulting in straight-line revenue recognition. The amount of revenue recognised depends on whether we act as an agent or as a principal. Certain arrangements with our clients are such that our responsibility is to arrange for a third party to provide a specified good or service to the client. In these cases we are acting as an agent as we do not control the relevant good or service before it is transferred to the client. When we act as an agent, the revenue recorded is the net amount retained. Costs incurred with external suppliers (such as production costs and media suppliers) are excluded from revenue and recorded as work in progress until billed. The Group acts as principal when we control the specified good or service prior to transfer. When the Group acts as a principal (such as in-house out-of-pocket Advertising and media investment management Revenue is typically derived from media placements and advertising services. Revenue may consist of various arrangements involving commissions, fees, incentive-based revenue or a combination of the three, as agreed upon with each client. Revenue for commissions on purchased media is typically recognised at the point in time the media is run. The Group receives volume rebates from certain suppliers for transactions entered into on behalf of clients that, based on the terms of the relevant contracts and local law, are either remitted to clients or retained by the Group. If amounts are passed on to clients they are recorded as liabilities until settled or, if retained by the Group, are recorded as revenue when earned. Variable incentive-based revenue typically comprises both quantitative and qualitative elements. Incentive compensation is estimated using the most likely amount and is included in revenue up to the amount that is highly probable not to result in a significant reversal of cumulative revenue recognised. The Group recognises incentive revenue as the related performance obligation is satisfied. Data investment management Revenue for market research services is typically recognised over-time based on input measures. For certain performance obligations, output measures such as the percentage of interviews completed, percentage of reports delivered to a client and the achievement of any project milestones stipulated in the contract are used to measure progress. While most of the studies provided in connection with the Group’s market research contracts are undertaken in response to an individual client’s or group of clients’ specifications, in certain instances a study may be developed as an off-the-shelf Public relations & public affairs and brand consulting, health & wellness and specialist communications Revenue for these services is typically derived from retainer fees and fees for services to be performed subject to specific agreement. Most revenue under these arrangements is earned over-time, in accordance with the terms of the contractual arrangement. |
Taxation | Taxation Corporate taxes are payable on taxable profits at current rates. The tax expense represents the sum of the tax currently payable and deferred tax. The Group is subject to corporate taxes in a number of different jurisdictions and judgement is required in determining the appropriate provision for transactions where the ultimate tax determination is uncertain. In such circumstances, the Group recognises liabilities for anticipated taxes based on the best information available and where the anticipated liability is both probable and estimable, liabilities are classified as current. Any interest and penalties accrued are included in corporate income taxes both in the consolidated income statement and balance sheet. Where the final outcome of such matters differs from the amount recorded, any differences may impact the income tax and deferred tax provisions in the period in which the final determination is made. The tax laws that apply to the Group’s subsidiaries may be amended by the relevant tax authorities. Such potential amendments are regularly monitored and adjustments are made to the Group’s tax liabilities and deferred tax assets and liabilities where necessary. The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the consolidated income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are recognised for all taxable temporary differences unless specifically excepted by IAS 12 Income Taxes. Deferred tax is charged or credited in the consolidated income statement, except when it relates to items charged or credited to other comprehensive income or directly to equity, in which case the deferred tax is also dealt with in other comprehensive income or equity. Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised, which can require the use of accounting estimation and the exercise of judgement. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or other assets and liabilities (other than in a business combination) in a transaction that affects neither the taxable profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on enacted or substantively enacted legislation. |
Retirement benefit costs | Retirement benefit costs The Group accounts for retirement benefit costs in accordance with IAS 19 Employee Benefits. For defined contribution plans, contributions are charged to the consolidated income statement as payable in respect of the accounting period. For defined benefit plans the amounts charged to operating profit are the current service costs, past service costs, administrative expenses and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the consolidated income statement when the related plan amendment occurs. Net interest expense is calculated by applying the discount rate to the recognised overall surplus or deficit in the plan. Actuarial gains and losses are recognised immediately in the consolidated statement of comprehensive income. Where defined benefit plans are funded, the assets of the plan are held separately from those of the Group, in separate independently managed funds. Pension plan assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent currency and term to the plan liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. Recognition of a surplus in a defined benefit plan is limited based on the economic gain the Company is expected to benefit from in the future by means of a refund or reduction in future contributions to the plan, in accordance with IAS 19. |
Provisions for liabilities and charges | Provisions for liabilities and charges Provisions comprise liabilities where there is uncertainty about the timing of settlement, but where a reliable estimate can be made of the amount. These include provisions for vacant space, sub-let losses and other property-related liabilities. Also included are other provisions, such as certain long-term employee benefits and legal claims, where the likelihood of settlement is considered probable. |
Finance leases | Finance leases Assets held under finance leases are recognised as assets of the Group at the inception of the lease at the lower of their fair value and the present value of the minimum lease payments. Depreciation on leased assets is charged to the consolidated income statement on the same basis as owned assets. Leasing payments are treated as consisting of capital and interest elements and the interest is charged to the consolidated income statement as it is incurred. |
Operating leases | Operating leases Operating lease rentals are charged to the consolidated income statement on a straight-line basis over the lease term. Any premium or discount on the acquisition of a lease is spread over the life of the lease on a straight-line basis. |
Translation of foreign currencies | Translation of foreign currencies Foreign currency transactions arising from normal trading activities are recorded at the rates in effect at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the year-end are translated at the year-end exchange rate. Foreign currency gains and losses are credited or charged to the consolidated income statement as they arise. The income statements of overseas subsidiary undertakings are translated into pounds sterling at average exchange rates and the year-end net assets of these companies are translated at year-end exchange rates. Exchange differences arising from retranslation of the opening net assets and on foreign currency borrowings (to the extent that they hedge the Group’s investment in such operations) are reported in the consolidated statement of comprehensive income. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Hyperinflation in Argentina During 2018, Argentina was designated as a hyperinflationary economy and the financial statements of the Group’s subsidiaries in Argentina have been adjusted for the effects of inflation in accordance with IAS 29 Financial Reporting in Hyperinflationary Economies. IAS 29 requires that the income statement is adjusted for inflation in the period and translated at the year-end foreign exchange rate and that non-monetary assets and liabilities on the balance sheet are restated to reflect the change in purchasing power caused by inflation from the date of initial recognition. This resulted in an increase in goodwill of £105.8 million and an increase in other intangibles of £19.5 million. The impact on other non-monetary assets and liabilities and the impact on the Group’s income statement in the year were immaterial. |
Share-based payments | Share-based payments The Group issues equity-settled share-based payments (including share options) to certain employees and accounts for these awards in accordance with IFRS 2 Share-Based Payment. Equity-settled share-based payments are measured at fair value (excluding the effect of non-market-based vesting conditions) at the date of grant. Details regarding the fair value of equity settled share-based transactions are set out in notes 21 and 25. The fair value determined at the grant date is recognised in the consolidated income statement as an expense on a straight-line basis over the relevant vesting period, based on the Group’s estimate of the number of shares that will ultimately vest and adjusted for the effect of non-market-based vesting conditions. |
Critical judgements and estimation uncertainty in applying accounting policies | Critical judgements and estimation uncertainty in applying accounting policies Management is required to make key decisions and judgements whilst acknowledging there is estimation uncertainty in the process of applying the Group’s accounting policies. These estimates and judgements are reviewed on an ongoing basis. Where judgement has been applied or estimation uncertainty exists, the key factors taken into consideration are disclosed in the accounting policies and the appropriate note in these financial statements. The most significant areas of estimation uncertainty include: • Goodwill: The discounted cash flow methodology employed by the Group when testing for goodwill impairment requires estimates regarding revenue growth, operating margins, discount rates and working capital requirements. Further details of the methodology, discount rates, long-term growth rates and estimates used in relation to the goodwill impairment on VMLY&R in 2018 are set out in note 12. • Payments due to vendors (earnout agreements) and liabilities in respect of put options: Estimates are required regarding growth rates in deriving future financial performance and discount rates to be applied when measuring the liabilities for earnouts and put options. Further details on growth rates and discount rates and the sensitivity to these estimates are set out in note 24. • Provision for post-employment benefits: Estimates are required in the accounting for defined benefit pension plans, including establishing discount rates, rates of increase in salaries and pensions in payment, inflation and mortality assumptions. These estimates are made by management based on the advice of qualified advisors. Details of the assumptions used and the sensitivity of the benefit obligation to these assumptions are set out in note 22. The most significant areas of judgements include: • Revenue recognition: Judgement is required regarding the timing of recognition, particularly in relation to media volume income with regards to whether it is required to be passed back to the client and in assessing progress on performance obligations where revenue is recognised over time, particularly in the Group’s Data Investment Management business. Further details are set out in the accounting policy. • Taxation: Judgement is required in relation to the level of provisions required and the amount of taxes that will be due, particularly given the many countries in which the Group operates. Where the final tax outcome is different from the amounts recorded then such differences may expose the Group to additional tax liabilities or impact the carrying value of deferred tax assets, which would affect the future tax charge. Further details are set out in note 7. |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of the Impact of Adopting IFRS 15 | The following table summarises the impact of adopting IFRS 15 on the Group’s consolidated income statement for the years ended 31 December 2017 and 2016. Year ended 31 December 2017 Year ended 31 December 2016 £ million As IFRS 15 As As IFRS 15 As Revenue 15,265.4 538.8 15,804.2 14,388.9 498.4 14,887.3 Costs of services (12,090.2 ) (538.8 ) (12,629.0 ) (11,348.1 ) (498.4 ) (11,846.5 ) Gross profit 3,175.2 – 3,175.2 3,040.8 – 3,040.8 |
Summary of Estimated Useful Life of Intangible Assets | Amortisation is provided at rates calculated to write off the cost less estimated residual value of each asset on a straight-line basis over its estimated useful life as follows: • Brand names (with finite lives) – 10-20 years. • Customer-related intangibles – 3-10 years. • Other proprietary tools – 3-10 years. • Other (including capitalised computer software) – 3-5 years. |
Summary of Estimated Useful Life of Property, Plant and Equipment | Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset on a straight-line basis over its estimated useful life, as follows: • Freehold buildings – 50 years. • Leasehold land and buildings – over the term of the lease or life of the asset, if shorter. • Fixtures, fittings and equipment – 3-10 years. • Computer equipment – 3-5 years. |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Contributions by Reportable Segments | Reportable segments Reported contributions were as follows: Income statement Revenue 1,2 Revenue pass-through 2,3 Headline 4 Headline 5 £m £m £m 2018 Advertising and Media Investment Management 7,132.4 5,529.7 972.4 17.6% Data Investment Management 2,582.5 1,965.4 301.1 15.3% Public Relations & Public Affairs 1,210.7 1,136.3 183.7 16.2% Brand Consulting, Health & Wellness and Specialist Communications 4,676.8 4,195.2 590.1 14.1% 15,602.4 2,047.3 2017 Advertising and Media Investment Management 7,368.7 5,889.3 1,109.0 18.8% Data Investment Management 2,703.4 2,052.1 350.3 17.1% Public Relations & Public Affairs 1,204.0 1,140.6 183.2 16.1% Brand Consulting, Health & Wellness and Specialist Communications 4,528.1 4,087.6 624.6 15.3% 15,804.2 2,267.1 2016 Advertising and Media Investment Management 6,709.4 5,450.9 1,027.2 18.8% Data Investment Management 2,672.4 1,994.0 351.5 17.6% Public Relations & Public Affairs 1,130.6 1,078.5 179.8 16.7% Brand Consulting, Health & Wellness and Specialist Communications 4,374.9 3,905.2 601.8 15.4% 14,887.3 2,160.3 Notes 1 Intersegment sales have not been separately disclosed as they are not material. 2 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. 3 Revenue less pass-through costs is revenue less media, data collection and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media and data collection costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. 4 A reconciliation from profit before interest and taxation to headline PBIT is provided in note 29. PBIT is reconciled to reported profit before taxation in the consolidated income statement. 5 Headline PBIT margin is calculated as headline PBIT (defined above) as a percentage of revenue less pass-through costs. Previously referred to as revenue less pass-through costs margin. Other information Share-based Capital 1 Depreciation 2 Goodwill Share of Interests in £m £m £m £m £m £m 2018 Advertising and Media Investment Management 41.9 190.8 111.8 148.0 16.6 203.4 Data Investment Management 12.8 68.9 56.6 0.9 12.5 113.1 Public Relations & Public Affairs 8.3 13.4 13.8 – 5.2 39.5 Brand Consulting, Health & Wellness and Specialist Communications 21.8 102.1 81.6 35.0 9.2 440.8 84.8 375.2 263.8 183.9 43.5 796.8 2017 Advertising and Media Investment Management 57.0 171.3 108.8 19.5 27.0 193.1 Data Investment Management 14.4 58.8 59.9 – 15.3 106.3 Public Relations & Public Affairs 8.6 10.6 12.2 7.6 6.3 34.2 Brand Consulting, Health & Wellness and Specialist Communications 25.0 85.5 86.1 – 64.9 731.6 105.0 326.2 267.0 27.1 113.5 1,065.2 2016 Advertising and Media Investment Management 60.7 126.2 105.4 20.9 8.3 285.6 Data Investment Management 13.0 61.5 60.9 – 13.2 109.4 Public Relations & Public Affairs 7.5 10.3 11.6 – 3.2 108.1 Brand Consulting, Health & Wellness and Specialist Communications 25.3 87.1 81.5 6.1 25.1 566.3 106.5 285.1 259.4 27.0 49.8 1,069.4 Notes 1 Capital additions include purchases of property, plant and equipment and other intangible assets (including capitalised computer software). 2 Depreciation of property, plant and equipment and amortisation of other intangible assets. |
Contributions by Geographical Area | Contributions by geographical area were as follows: 2018 £m 2017 2 £m 2016 2 £m Revenue 1 North America 3 5,371.0 5,659.2 5,400.9 UK 2,189.4 2,133.4 1,970.7 Western Continental Europe 3,335.3 3,230.6 3,008.5 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 4,706.7 4,781.0 4,507.2 15,602.4 15,804.2 14,887.3 Revenue less pass-through costs 4 North America 3 4,474.2 4,793.9 4,598.4 UK 1,691.3 1,688.0 1,590.2 Western Continental Europe 2,735.4 2,630.6 2,438.3 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 3,925.7 4,057.1 3,801.7 Headline PBIT 5 North America 3 804.0 937.4 895.4 UK 244.6 280.0 261.4 Western Continental Europe 372.7 376.0 351.7 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 626.0 673.7 651.8 2,047.3 2,267.1 2,160.3 Margin Margin 2 Margin 2 Headline PBIT margin 6 North America 18.0% 19.6% 19.5% UK 14.5% 16.6% 16.4% Western Continental Europe 13.6% 14.3% 14.4% Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 15.9% 16.6% 17.1% Notes 1 Intersegment sales have not been separately disclosed as they are not material. 2 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. 3 North America includes the US with revenue of £5,074.1 million (2017: £5,336.3 million, 2016: £5,107.2 million), revenue less pass-through costs of £4,236.7 million (2017: £4,535.3 million, 2016: £4,359.7 million) and Headline PBIT of £761.6 million (2017: £890.3 million, 2016: £849.4 million). 4 Revenue less pass-through costs is revenue less media, data collection and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media and data collection costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. 5 See note 29 for a reconciliation of PBIT to headline PBIT. 6 Headline PBIT margin is calculated as headline PBIT (defined above) as a percentage of revenue less pass-through costs. Previously referred to as revenue less pass-through costs margin. 2018 £m 2017 £m Non-current assets 1 North America 2 7,269.7 7,667.5 UK 2,079.2 2,098.2 Western Continental Europe 4,385.6 4,542.1 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 4,028.4 4,035.8 17,762.9 18,343.6 Note 1 Non-current assets excluding financial instruments and deferred tax. 2 North America includes the US with non-current assets of £6,791.9 million (2017: £7,202.7 million). |
Costs of services and general_2
Costs of services and general and administrative costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Costs of Services and General Administrative Costs | 2018 £m 2017 1 £m 2016 1 £m Costs of services 12,663.5 12,629.0 11,846.5 General and administrative costs 1,507.5 1,267.0 977.7 14,171.0 13,896.0 12,824.2 Costs of services and general and administrative costs include: 2018 £m 2017 1 £m 2016 1 £m Staff costs (note 5) 8,172.6 8,319.0 7,784.9 Establishment costs 871.7 888.6 836.5 Media pass-through costs 1,458.0 1,429.4 1,276.2 Data collection pass-through costs 609.2 646.4 669.8 Other costs of services and general and administrative costs 2 3,059.5 2,612.6 2,256.8 14,171.0 13,896.0 12,824.2 Other costs of services and general and administrative costs include: Goodwill impairment (note 12) 183.9 27.1 27.0 Investment write-downs 2.0 95.9 86.1 Restructuring and transformation costs 302.3 56.8 27.4 Amortisation and impairment of acquired intangible assets (note 12) 280.0 195.1 168.4 Amortisation of other intangible assets (note 12) 38.7 36.3 38.6 Depreciation of property, plant and equipment 225.1 230.7 215.2 Losses on sale of property, plant and equipment 0.6 1.1 0.8 Gains on disposal of investments and subsidiaries (235.5 ) (129.0 ) (44.3 ) (Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership (2.0 ) 0.3 (232.4 ) Net foreign exchange (gains)/losses (13.2 ) 12.9 (17.0 ) Notes 1 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. 2 Other costs of services and general and administrative costs include £708.6 million (2017: £558.8 million, 2016: £512.7 million) of other pass-through costs. |
Auditors' Remuneration | Auditors’ remuneration: 2018 2017 2016 Fees payable to the Company’s auditors for the audit of the Company’s annual accounts 1.4 1.4 1.4 The audit of the Company’s subsidiaries pursuant to legislation 21.7 20.7 19.4 Other services pursuant to legislation 4.2 4.0 3.7 Fees payable to the auditors pursuant to legislation 27.3 26.1 24.5 Tax advisory services – 0.1 1.6 Tax compliance services 0.1 0.1 1.3 Corporate finance services – – 0.1 Other services 1 4.7 4.6 5.7 Total non-audit fees 4.8 4.8 8.7 Total fees 32.1 30.9 33.2 Note 1 Other services include audits for earnout purposes. |
Operating Lease | 2018 2017 2016 Operating lease rentals: Land and buildings 585.3 586.6 556.1 Sublease income (25.4 ) (17.9 ) (11.6 ) 559.9 568.7 544.5 Plant and machinery 10.6 11.9 10.6 570.5 580.6 555.1 |
Minimum Committed Annual Rentals | Minimum committed annual rentals Amounts payable in 2019 under leases will be as follows: Plant and machinery Land and buildings 2019 2018 2017 2019 2018 2017 In respect of operating leases which expire: – within one year 3.6 5.1 4.0 70.2 88.6 85.1 – within two to five years 19.2 10.8 10.5 272.7 236.2 287.9 – after five years 0.4 0.1 – 246.3 207.8 187.0 23.2 16.0 14.5 589.2 532.6 560.0 Future minimum annual amounts payable under all lease commitments in existence at 31 December 2018 are as follows: Minimum Less lease- 1 Minimum Less sub-let Net payment £m Year ending 31 December 2019 612.4 (54.2 ) 558.2 (11.5 ) 546.7 2020 475.0 (51.0 ) 424.0 (6.4 ) 417.6 2021 415.3 (47.3 ) 368.0 (4.9 ) 363.1 2022 362.4 (44.8 ) 317.6 (4.3 ) 313.3 2023 323.4 (43.1 ) 280.3 (3.1 ) 277.2 Later years 2,074.1 (362.5 ) 1,711.6 (1.3 ) 1,710.3 4,262.6 (602.9 ) 3,659.7 (31.5 ) 3,628.2 Note 1 Lease-related |
Share of results of associates
Share of results of associates (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Share of Results of Associates | Share of results of associates include: 2018 2017 2016 Share of profit before interest and taxation 123.8 145.1 97.1 Share of exceptional (losses)/gains (41.7 ) 0.8 (15.2 ) Share of interest and non-controlling interests (9.7 ) (7.8 ) (4.7 ) Share of taxation (28.9 ) (24.6 ) (27.4 ) 43.5 113.5 49.8 |
Our people (Tables)
Our people (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Geographical Distribution of Staff | Our staff numbers averaged 133,903 for the year ended 31 December 2018 against 134,428 in 2017 and 132,657 in 2016. Their geographical distribution was as follows: 2018 2017 2016 North America 25,990 27,399 27,246 UK 14,331 14,197 14,070 Western Continental Europe 26,825 25,700 24,996 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 66,757 67,132 66,345 133,903 134,428 132,657 |
Reportable Segment Distribution of Staff | Their reportable segment distribution was as follows: 2018 2017 2016 Advertising and Media Investment Management 55,421 56,789 55,120 Data Investment Management 28,309 28,629 29,279 Public Relations & Public Affairs 9,048 9,082 9,054 Brand Consulting, Health & Wellness and Specialist Communications 41,125 39,928 39,204 133,903 134,428 132,657 |
Staff costs | At the end of 2018, staff numbers were 134,281 (2017: 134,413, 2016: 134,341). Staff costs include: 2018 £m 2017 £m 2016 £m Wages and salaries 5,710.0 5,832.3 5,395.6 Cash-based incentive plans 240.7 219.2 260.2 Share-based incentive plans (note 21) 84.8 105.0 106.5 Social security costs 717.5 720.3 658.1 Pension costs (note 22) 191.2 192.0 178.1 Severance 37.5 39.5 34.5 Other staff costs 1 1,190.9 1,210.7 1,151.9 8,172.6 8,319.0 7,784.9 Note 1 Freelance and temporary staff costs are included in other staff costs. |
Finance income, finance costs_2
Finance income, finance costs and revaluation of financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Finance Income, Finance Costs and Revaluation of Financial Instruments | Finance income includes: 2018 £m 2017 £m 2016 £m Income from equity investments 15.4 16.8 12.5 Interest income 89.4 78.4 67.9 104.8 95.2 80.4 Finance costs include: 2018 £m 2017 £m 2016 £m Net interest expense on pension plans (note 22) 4.4 6.3 6.7 Interest on other long-term employee benefits 4.0 3.9 2.7 Interest expense and similar charges 1 280.9 259.6 245.1 289.3 269.8 254.5 Revaluation of financial instruments include: 2018 2017 2016 Movements in fair value of treasury instruments (12.4 ) 1.1 (19.5 ) Revaluation of investments held at fair value through profit or loss 68.2 – – Revaluation of put options over non-controlling interests 34.5 52.5 (17.2 ) Revaluation of payments due to vendors (earnout agreements) 82.6 208.6 (11.6 ) 172.9 262.2 (48.3 ) Note 1 Interest expense and similar charges are payable on bank overdrafts, bonds and bank loans held at amortised cost. |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Tax Charge | The tax charge comprises: 2018 £m 2017 £m 2016 £m Corporation tax Current year 481.9 523.4 569.4 Prior years (111.8 ) (98.6 ) (80.3 ) 370.1 424.8 489.1 Deferred tax Current year (49.0 ) (235.2 ) (88.0 ) Prior years 2.8 7.4 (12.2 ) (46.2 ) (227.8 ) (100.2 ) Tax charge 323.9 197.0 388.9 |
Tax Charge Reconciled to Profit Before Taxation | The tax charge for the year can be reconciled to profit before taxation in the consolidated income statement as follows: 2018 £m 2017 £m 2016 £m Profit before taxation 1,463.3 2,109.3 1,890.5 Tax at the corporation tax rate of 19.0% 1 278.0 406.0 378.1 Tax effect of share of results of associates (8.3 ) (21.8 ) (10.0 ) Irrecoverable withholding taxes 55.9 37.0 36.3 Items that are not deductible/(taxable) in determining taxable profit 28.7 (3.9 ) 9.4 Effect of different tax rates in subsidiaries operating in other jurisdictions 90.2 140.3 60.4 US Transition Tax related to unremitted foreign earnings (7.3 ) 28.1 – Effect of change in US tax rate on deferred tax balances – (234.1 ) – Origination and reversal of unrecognised temporary differences 7.5 (17.2 ) (4.3 ) Tax losses not recognised or utilised in the year 22.3 32.5 52.2 Utilisation of tax losses not previously recognised (25.6 ) (10.4 ) (11.3 ) Recognition of temporary differences not previously recognised (8.4 ) (68.3 ) (29.4 ) Net release of prior year provisions in relation to acquired businesses (20.4 ) (15.0 ) (23.3 ) Other prior year adjustments (88.7 ) (76.2 ) (69.2 ) Tax charge 323.9 197.0 388.9 Effective tax rate on profit before tax 22.1% 9.3% 20.6% Note 1 The Parent Company of the Group is tax resident in the UK. As the Group is subject to the tax rates of more than one country, it has chosen to present its reconciliation of the tax charge using the UK corporation tax rate of 19% (2017: 19.25%, 2016: 20%). |
Ordinary dividends (Tables)
Ordinary dividends (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Ordinary Dividends | Amounts recognised as distributions to equity holders in the year: 2018 2017 2016 2018 2017 2016 Per share Pence per share £m £m £m 2017 Final dividend 37.30p 37.05p 28.78p 464.6 467.2 368.5 2018 Interim dividend 22.70p 22.70p 19.55p 282.8 284.3 248.0 60.00p 59.75p 48.33p 747.4 751.5 616.5 Proposed final dividend for the year ended 31 December 2018: 2018 2017 2016 Per share Pence per share Final dividend 37.30p 37.30p 37.05p |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Calculation of Basic and Diluted EPS | Basic EPS The calculation of basic EPS is as follows: 2018 2017 2016 Earnings 1 1,062.9 1,816.6 1,400.1 Average shares used in basic EPS calculation (m) 1,247.8 1,261.1 1,277.8 EPS 85.2 p 144.0 p 109.6 p Note 1 Earnings is equivalent to profit for the year attributable to equity holders of the parent. Diluted EPS The calculation of diluted EPS is as follows: 2018 2017 2016 Diluted earnings (£m) 1,062.9 1,816.6 1,400.1 Average shares used in diluted EPS calculation (m) 1,261.2 1,275.8 1,296.0 Diluted EPS 84.3 p 142.4 p 108.0 p |
Reconciliation Between Shares Used in Calculating Basic and Diluted EPS | A reconciliation between the shares used in calculating basic and diluted EPS is as follows: 2018 2017 2016 Average shares used in basic EPS calculation 1,247.8 1,261.1 1,277.8 Dilutive share options outstanding 1.6 1.8 2.4 Other potentially issuable shares 11.8 12.9 15.8 Shares used in diluted EPS calculation 1,261.2 1,275.8 1,296.0 |
Sources of finance (Tables)
Sources of finance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Equity and Debt Financing | The following table summarises the equity and debt financing of the Group, and changes during the year: Shares Debt 2018 2017 2018 2017 Analysis of changes in financing Beginning of year 701.8 695.4 6,481.3 6,033.1 Ordinary shares issued 1.2 6.4 – – Net (decrease)/increase in drawings on bank loans and corporate bonds – – (440.6 ) 599.6 Amortisation of financing costs included in debt – – 7.7 8.0 Other movements – – (10.1 ) (6.9 ) Exchange adjustments – – 179.6 (152.5 ) End of year 703.0 701.8 6,217.9 6,481.3 Note The table above excludes bank overdrafts which fall within cash and cash equivalents for the purposes of the consolidated cash flow statement. |
Analysis of Future Anticipated Cash Flows in Relation to Group's Financial Derivatives and Debt | The following table is an analysis of future anticipated cash flows in relation to the Group’s debt, on an undiscounted basis which, therefore, differs from the fair value and carrying value: 2018 £m 2017 £m Within one year (748.4 ) (391.7 ) Between one and two years (596.8 ) (896.3 ) Between two and three years (937.1 ) (584.3 ) Between three and four years (742.5 ) (1,537.8 ) Between four and five years (786.8 ) (487.9 ) Over five years (4,199.7 ) (4,519.1 ) Debt financing (including interest) under the Revolving Credit Facility and in relation to unsecured loan notes (8,011.3 ) (8,417.1 ) Short-term overdrafts – within one year (442.0 ) (393.2 ) Future anticipated cash flows (8,453.3 ) (8,810.3 ) Effect of discounting/financing rates 1,793.4 1,935.8 Debt financing (6,659.9 ) (6,874.5 ) The following table is an analysis of future anticipated cash flows in relation to the Group’s financial derivatives, which include interest rate swaps, forward contracts and other foreign exchange swaps: Financial liabilities Financial assets 2018 Payable Receivable Payable Receivable Within one year 229.3 221.9 124.6 120.6 Between one and two years 50.0 45.3 11.8 6.5 Between two and three years 688.4 685.3 11.5 6.4 Between three and four years 408.5 406.6 11.6 6.5 Between four and five years – – 11.6 6.6 Over five years – – 461.4 498.2 1,376.2 1,359.1 632.5 644.8 Financial liabilities Financial assets 2017 Payable Receivable Payable Receivable Within one year 97.8 96.7 123.7 128.8 Between one and two years 21.4 20.1 38.6 38.8 Between two and three years 20.5 18.8 39.5 38.6 Between three and four years 20.7 18.6 851.7 851.0 Between four and five years 523.5 521.1 – – Over five years – – – – 683.9 675.3 1,053.5 1,057.2 |
Analysis of Fixed and Floating Rate Debt by Currency | Analysis of fixed and floating rate debt by currency including the effect of interest rate and cross-currency swaps: 2018 Currency £m Fixed 1 Floating Period 1 $ – fixed 1,154.8 4.58 n/a 181 – floating 1,029.6 n/a LIBOR n/a £ – fixed 1,044.1 3.43 n/a 232 € – fixed 2,425.9 1.99 n/a 75 – floating 449.2 n/a EURIBOR n/a Other 114.3 n/a n/a n/a 6,217.9 2017 Currency £m Fixed 1 Floating Period 1 $ – fixed 1,146.1 4.62% n/a 199 – floating 1,760.9 n/a LIBOR n/a £ – fixed 600.0 4.04% n/a 245 € – fixed 2,623.9 1.85% n/a 80 – floating 222.2 n/a EURIBOR n/a Other 128.2 n/a n/a n/a 6,481.3 Note 1 Weighted average. These rates do not include the effect of gains on interest rate swap terminations that are written to income over the life of the original instrument. |
Analysis of cash flows (Tables)
Analysis of cash flows (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Analysis of Cash Flows | The following tables analyse the items included within the main cash flow headings on page F-13. Net cash from operating activities: 2018 2017 2016 Profit for the year 1,139.4 1,912.3 1,501.6 Taxation 323.9 197.0 388.9 Revaluation of financial instruments (172.9 ) (262.2 ) 48.3 Finance costs 289.3 269.8 254.5 Finance income (104.8 ) (95.2 ) (80.4 ) Share of results of associates (43.5 ) (113.5 ) (49.8 ) Adjustments for: Non-cash share-based incentive plans (including share options) 84.8 105.0 106.5 Depreciation of property, plant and equipment 225.1 230.7 220.8 Impairment of goodwill 183.9 27.1 27.0 Amortisation and impairment of acquired intangible assets 280.0 195.1 168.4 Amortisation of other intangible assets 38.7 36.3 38.6 Investment write-downs 2.0 95.9 86.1 Gains on disposal of investments and subsidiaries (235.5 ) (129.0 ) (44.3 ) (Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership (2.0 ) 0.3 (232.4 ) Losses on sale of property, plant and equipment 0.6 1.1 0.8 Increase in trade receivables and accrued income (298.9 ) (90.4 ) (70.4 ) Increase/(decrease) in trade payables and deferred income 500.9 (170.8 ) 188.7 (Increase)/decrease in other receivables (52.9 ) (110.6 ) 77.4 Decrease in other payables – short-term (31.8 ) (122.8 ) (303.7 ) Increase in other payables – long-term 0.4 20.1 4.5 Increase/(decrease) in provisions 48.0 (57.3 ) (47.8 ) Corporation and overseas tax paid (383.6 ) (424.7 ) (414.2 ) Interest and similar charges paid (252.8 ) (246.6 ) (242.1 ) Interest received 90.4 76.9 73.9 Investment income 15.4 16.8 12.5 Dividends from associates 49.7 46.8 60.4 Net cash inflow from operating activities 1,693.8 1,408.1 1,773.8 Acquisitions and disposals: 2018 2017 2016 Initial cash consideration (126.7 ) (214.8 ) (424.1 ) Cash and cash equivalents acquired (net) 1 (3.8 ) 28.9 57.3 Earnout payments (120.2 ) (199.1 ) (92.3 ) Purchase of other investments (including associates) (48.1 ) (92.5 ) (260.2 ) Acquisitions (298.8 ) (477.5 ) (719.3 ) Proceeds on disposal of investments and subsidiaries 2 849.0 296.0 80.5 Acquisitions and disposals 550.2 (181.5 ) (638.8 ) Cash consideration for non-controlling interests (109.9 ) (47.3 ) (58.3 ) Net cash inflow/(outflow) 440.3 (228.8 ) (697.1 ) Notes 1 In 2018, cash and cash equivalents acquired comprises £11.3 million from acquisitions offset by £15.1 million from disposals. 2 Proceeds on disposal of investments and subsidiaries includes return of capital from investments in associates. Share repurchases and buy-backs: 2018 2017 2016 Purchase of own shares by ESOP Trusts (102.8) (214.6) (152.9) Shares purchased into treasury (104.3 ) (289.6 ) (274.5 ) Net cash outflow (207.1 ) (504.2 ) (427.4 ) Net (decrease)/increase in borrowings: 2018 2017 2016 (Decrease)/increase in drawings on bank loans (819.3) 785.6 (30.4) Proceeds from issue of € 250 million bonds 218.8 214.0 – Proceeds from issue of € 500 million bonds 438.0 – – Repayment of € 252 million bonds (220.0 ) – – Partial repayment of $300 million bonds (20.8 ) – – Partial repayment of $500 million bonds (37.3 ) – – Repayment of £400 million bonds – (400.0 ) – Proceeds from issue of £400 million bonds – – 400.0 Repayment of € 498 million bonds – – (392.1 ) Net cash (outflow)/inflow (440.6 ) 599.6 (22.5 ) Cash and cash equivalents: 2018 2017 2016 Cash at bank and in hand 2,010.8 2,049.6 2,256.2 Short-term bank deposits 632.4 341.8 180.7 Overdrafts 1 (442.0 ) (393.2 ) (534.3 ) 2,201.2 1,998.2 1,902.6 Note 1 Bank overdrafts are included in cash and cash equivalents because they form an integral part of the Group’s cash management. The Group considers that the carrying amount of cash and cash equivalents approximates their fair value. |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Movements of Goodwill | Goodwill The movements in 2018 and 2017 were as follows: £m Cost: 1 January 2017 13,939.4 Additions 1 301.0 Revision of earnout estimates (60.7 ) Exchange adjustments (504.4 ) 31 December 2017 13,675.3 Additions 1 154.4 Revision of earnout estimates (68.3 ) Exchange adjustments 368.1 31 December 2018 14,129.5 Accumulated impairment losses and write-downs: 1 January 2017 725.1 Impairment losses for the year 27.1 Exchange adjustments (29.8 ) 31 December 2017 722.4 Impairment losses for the year 183.9 Exchange adjustments 20.4 31 December 2018 926.7 Net book value: 31 December 2018 13,202.8 31 December 2017 12,952.9 1 January 2017 13,214.3 Note 1 Additions represent goodwill arising on the acquisition of subsidiary undertakings including the effect of any revisions to fair value adjustments that had been determined provisionally at the immediately preceding balance sheet date, as permitted by IFRS 3 Business Combinations. The effect of such revisions was not material in either year presented. Goodwill arising on the acquisition of associate undertakings is shown within interests in associates and joint ventures in note 14. |
Cash-generating Units with Significant Goodwill | Cash-generating units with significant goodwill as at 31 December are: 2018 2017 GroupM 2,942.9 2,906.7 Kantar 2,522.9 2,518.2 Wunderman 1,581.2 1,514.5 VMLY&R 930.4 1,091.8 Other 5,225.4 4,921.7 Total goodwill 13,202.8 12,952.9 |
Movements of Other Intangible Assets | Other intangible assets The movements in 2018 and 2017 were as follows: Brands Acquired Other Total Cost: 1 January 2017 1,141.3 2,535.5 404.1 4,080.9 Additions – – 37.3 37.3 Disposals – – (15.8 ) (15.8 ) New acquisitions – 79.0 0.8 79.8 Other movements 1 – 6.4 7.2 13.6 Exchange adjustments (60.0 ) (73.1 ) (22.1 ) (155.2 ) 31 December 2017 1,081.3 2,547.8 411.5 4,040.6 Additions – – 60.4 60.4 Disposals – (0.9 ) (37.3 ) (38.2 ) New acquisitions – 40.3 – 40.3 Other movements 1 – 2.9 (7.4 ) (4.5 ) Exchange adjustments 51.5 19.9 10.1 81.5 31 December 2018 1,132.8 2,610.0 437.3 4,180.1 Amortisation and impairment: 1 January 2017 – 1,563.0 300.6 1,863.6 Charge for the year – 189.4 36.3 225.7 Disposals – – (14.9 ) (14.9 ) Other movements – – 2.5 2.5 Exchange adjustments – (33.7 ) (21.0 ) (54.7 ) 31 December 2017 – 1,718.7 303.5 2,022.2 Charge for the year – 275.8 38.7 314.5 Disposals – (0.7 ) (27.3 ) (28.0 ) Other movements – – (1.9 ) (1.9 ) Exchange adjustments – 21.4 9.9 31.3 31 December 2018 – 2,015.2 322.9 2,338.1 Net book value: 31 December 2018 1,132.8 594.8 114.4 1,842.0 31 December 2017 1,081.3 829.1 108.0 2,018.4 1 January 2017 1,141.3 972.5 103.5 2,217.3 Note 1 Other movements in acquired intangibles include revisions to fair value adjustments arising on the acquisition of subsidiary undertakings that had been determined provisionally at the immediately preceding balance sheet date, as permitted by IFRS 3 Business Combinations. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Property, Plant and Equipment | The movements in 2018 and 2017 were as follows: Land Freehold buildings Leasehold buildings Fixtures, Computer Total Cost: 1 January 2017 37.1 126.4 1,012.5 402.6 743.4 2,322.0 Additions – 4.3 165.0 31.7 87.9 288.9 New acquisitions – – 2.0 2.4 1.1 5.5 Disposals – (1.2 ) (46.1 ) (40.7 ) (54.6 ) (142.6 ) Exchange adjustments – (10.7 ) (51.6 ) (18.8 ) (74.8 ) (155.9 ) 31 December 2017 37.1 118.8 1,081.8 377.2 703.0 2,317.9 Additions – 17.7 161.4 49.9 85.8 314.8 New acquisitions – 0.1 0.9 1.2 0.9 3.1 Disposals – – (83.5 ) (62.9 ) (109.3 ) (255.7 ) Exchange adjustments – (1.1 ) 41.8 9.9 10.0 60.6 31 December 2018 37.1 135.5 1,202.4 375.3 690.4 2,440.7 Depreciation: 1 January 2017 – 25.2 509.8 240.0 578.3 1,353.3 Charge for the year – 6.9 86.7 47.0 90.1 230.7 Disposals – (1.9 ) (42.6 ) (35.9 ) (54.4 ) (134.8 ) Exchange adjustments – (1.7 ) (27.8 ) (14.2 ) (67.1 ) (110.8 ) 31 December 2017 – 28.5 526.1 236.9 546.9 1,338.4 Charge for the year – 3.1 91.5 44.4 86.1 225.1 Disposals – – (74.6 ) (58.0 ) (107.9 ) (240.5 ) Exchange adjustments – (4.5 ) 24.3 6.4 8.5 34.7 31 December 2018 – 27.1 567.3 229.7 533.6 1,357.7 Net book value: 31 December 2018 37.1 108.4 635.1 145.6 156.8 1,083.0 31 December 2017 37.1 90.3 555.7 140.3 156.1 979.5 1 January 2017 37.1 101.2 502.7 162.6 165.1 968.7 |
Interests in associates, join_2
Interests in associates, joint ventures and other investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments accounted for using equity method [abstract] | |
Movements in Associates, Joint Ventures and Other Investments | The movements in 2018 and 2017 were as follows: Interests in Other investments 1 January 2017 1,069.4 1,310.3 Additions 34.5 67.7 Share of results of associate undertakings (note 4) 113.5 – Dividends (46.8 ) – Other movements 3.4 – Reclassification from other investments to associates 57.1 (57.1 ) Exchange adjustments (10.6 ) (106.1 ) Disposals (139.1 ) (1.7 ) Reclassification to subsidiaries (6.3 ) – Revaluation of other investments – 32.1 Amortisation of other intangible assets (5.7 ) – Write-downs (4.2 ) (91.7 ) 31 December 2017 1,065.2 1,153.5 Additions 16.7 35.0 Share of results of associate undertakings (note 4) 43.5 – Dividends (49.7 ) – Other movements 1.2 – Reclassification from other investments to associates 0.3 (0.3 ) Exchange adjustments 12.9 – Disposals (304.0 ) (341.7 ) Reclassification to subsidiaries 16.9 – Revaluation of other investments through profit or loss – 68.1 Revaluation of other investments through other comprehensive income – (247.9 ) Amortisation of other intangible assets (4.2 ) – Write-downs (2.0 ) – 31 December 2018 796.8 666.7 |
Principal Associates and Joint Ventures | The Group’s principal associates and joint ventures at 31 December 2018 included: % Country of Barrows Design and Manufacturing (Pty) Limited 35.0 South Africa Chime Communications Ltd 24.9 UK CVSC Sofres Media Co Limited 40.0 China Dat Viet VAC Media Corporation 30.0 Vietnam GIIR Inc 30.0 Korea Haworth Marketing & Media Company 49.0 USA High Co SA 34.1 France Imagina 22.5 Spain Marktest Investimentos SGPS S.A. 40.0 Portugal Nanjing Yindu Ogilvy Advertising Co. Ltd 49.0 China Richard Attias and Associates 1 49.0 USA Smollan Holdings (Pty) Ltd 24.8 South Africa Note 1 The Group sold its shareholding in Richard Attias and Associates in January 2019. |
Summary of Aggregate Financial Performance and Net Asset Position of Associates and Joint Ventures | The following tables present a summary of the aggregate financial performance and net asset position of the Group’s associate undertakings and joint ventures. These have been estimated and converted, where appropriate, to an IFRS presentation based on information provided by the relevant companies at 31 December 2018. 2018 £m 2017 £m 2016 £m Income statement Revenue 3,685.8 3,800.8 2,254.5 Operating profit 378.4 440.4 308.3 Profit before taxation 194.7 381.9 237.2 Profit for the year 118.1 312.5 156.7 Balance sheet Assets 2,940.9 3,192.9 4,223.1 Liabilities (1,570.6 ) (1,633.7 ) (1,900.0 ) Net assets 1,370.3 1,559.2 2,323.1 |
Deferred tax (Tables)
Deferred tax (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Analysis of Deferred Tax Balances for Financial Reporting Purposes | The following is the analysis of the deferred tax balances for financial reporting purposes: Gross £m Offset £m As £m Gross Offset As Deferred tax assets 412.0 (259.0 ) 153.0 411.8 (251.5 ) 160.3 Deferred tax liabilities (738.5 ) 259.0 (479.5 ) (765.2 ) 251.5 (513.7 ) (326.5 ) – (326.5 ) (353.4 ) – (353.4 ) |
Movements of Major Gross Deferred Tax Assets | The following are the major gross deferred tax assets recognised by the Group and movements thereon in 2018 and 2017: Deferred Accounting Retirement Property, Tax Share- Restructuring Other Total 1 January 2017 95.6 80.6 141.4 70.8 89.7 75.8 5.9 38.2 598.0 Acquisition of subsidiaries – – – – – – – 2.6 2.6 (Charge)/credit to income (5.5 ) 6.6 (10.2 ) 6.9 (34.4 ) (0.4 ) (1.5 ) (21.7 ) (60.2 ) Impact of US tax reform (30.8 ) (8.1 ) (29.1 ) (6.8 ) 23.1 (10.9 ) 1.6 (1.1 ) (62.1 ) Charge to other comprehensive income – – (20.9 ) – – – – – (20.9 ) Charge to equity – – – – – (27.3 ) – – (27.3 ) Exchange differences (5.8 ) 5.8 (5.6 ) (2.5 ) (5.7 ) (4.2 ) (0.2 ) (0.1 ) (18.3 ) 31 December 2017 53.5 84.9 75.6 68.4 72.7 33.0 5.8 17.9 411.8 Acquisition of subsidiaries – – – – – – – 2.0 2.0 Credit/(charge) to income 4.7 13.0 (11.2 ) (20.6 ) (8.9 ) (15.3 ) 10.7 11.0 (16.6 ) Charge to other comprehensive income – – (0.2 ) – – – – – (0.2 ) Charge to equity – – – – – (1.6 ) – – (1.6 ) Exchange differences 3.4 3.5 4.3 0.1 3.3 0.7 0.8 0.5 16.6 31 December 2018 61.6 101.4 68.5 47.9 67.1 16.8 17.3 31.4 412.0 |
Movements of Gross Deferred Tax Liabilities | In addition the Group has recognised the following gross deferred tax liabilities and movements thereon in 2018 and 2017: Brands Associate Goodwill Property, Financial Other Total £m 1 January 2017 755.9 28.3 232.5 36.2 64.0 33.1 1,150.0 Acquisition of subsidiaries 21.4 – – – – – 21.4 (Credit)/charge to income (49.9 ) (6.0 ) 0.7 (0.5 ) (3.3 ) 5.1 (53.9 ) Impact of US tax reform (203.8 ) – (76.3 ) (11.9 ) (22.2 ) 18.0 (296.2 ) Charge to other comprehensive income – – – – – 3.7 3.7 Exchange differences (34.4 ) (0.7 ) (16.5 ) (2.6 ) (2.3 ) (3.3 ) (59.8 ) 31 December 2017 489.2 21.6 140.4 21.2 36.2 56.6 765.2 Acquisition of subsidiaries 10.7 – – – – – 10.7 (Credit)/charge to income (68.8 ) (3.9 ) 31.8 (0.3 ) (0.9 ) (20.7 ) (62.8 ) Charge to other comprehensive income – – – – – 0.5 0.5 Exchange differences 7.5 (0.1 ) 10.1 1.3 4.6 1.5 24.9 31 December 2018 438.6 17.6 182.3 22.2 39.9 37.9 738.5 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Aging Analysis of Invoice, Loss Allowance | Based on the aging of the invoice, the loss allowance at 31 December 2018 and 1 January 2018 (on adoption of IFRS 9) is as follows: 31 December 2018 £m 0-90 91-180 181 Over Gross trade receivables 8,178.9 7,621.9 381.5 86.5 89.0 Loss allowance 116.6 11.3 3.8 39.2 62.3 Expected loss rate 1.4% 0.1% 1.0% 45.3% 70.0% 1 January 2018 £m 0-90 91-180 181 Over Gross trade receivables 7,981.0 7,392.6 425.6 78.6 84.2 Loss allowance 91.3 2.9 2.8 24.2 61.4 Expected loss rate 1.1% – 0.7% 30.8% 73.0% |
Within one year [member] | |
Statement [LineItems] | |
Summary of Trade and Other Receivables | Amounts falling due within one year: 2018 £m 2017 1 £m Trade receivables (net of bad debt provision) 8,062.2 7,889.7 Work in progress 366.5 401.1 VAT and sales taxes recoverable 264.2 202.3 Prepayments 287.3 298.3 Accrued income 3,541.2 3,205.8 Fair value of derivatives 1.3 1.0 Other debtors 578.8 532.5 13,101.5 12,530.7 Note 1 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Over 1 year [member] | |
Statement [LineItems] | |
Summary of Trade and Other Receivables | Amounts falling due after more than one year: 2018 2017 Prepayments 3.0 3.6 Accrued income 16.5 20.5 Fair value of derivatives 8.4 2.1 Other debtors 152.1 150.0 180.0 176.2 |
Trade and other receivable [member] | |
Statement [LineItems] | |
Ageing of Trade Receivables and Other Financial Assets | The ageing of trade receivables and other financial assets by due date is as follows: Past due but not impaired 2018 Carrying £m Neither 0-30 31-90 91-180 181 Greater Trade receivables 8,062.2 5,873.7 1,370.7 549.1 128.3 75.6 64.8 Other financial assets 551.7 424.9 61.3 14.2 8.6 7.7 35.0 8,613.9 6,298.6 1,432.0 563.3 136.9 83.3 99.8 Past due but not impaired 2017 Carrying £m Neither 0-30 31-90 91-180 181 Greater Trade receivables 7,889.7 5,466.6 1,629.6 577.0 143.0 48.8 24.7 Other financial assets 500.4 331.2 107.0 6.6 4.7 10.3 40.6 8,390.1 5,797.8 1,736.6 583.6 147.7 59.1 65.3 |
Bad Debt Provisions | Bad debt provisions: 2018 2017 2016 £m At beginning of year 91.3 93.8 85.4 New acquisitions 1.5 1.2 1.8 Charged to the income statement 66.7 27.4 15.5 Released to the income statement (11.6 ) (8.4 ) (6.3 ) Exchange adjustments 2.1 (4.1 ) 13.7 Utilisations and other movements (33.4 ) (18.6 ) (16.3 ) At end of year 116.6 91.3 93.8 |
Trade and other payables_ amo_3
Trade and other payables: amounts falling due within one year (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Within one year [member] | |
Statement [LineItems] | |
Summary of Trade and Other Payables | The following are included in trade and other payables falling due within one year: 2018 £m 2017 £m Trade payables 10,524.3 9,893.0 Deferred income 1,253.6 1,212.1 Payments due to vendors (earnout agreements) 148.2 180.7 Liabilities in respect of put option agreements with vendors 36.8 38.6 Fair value of derivatives 2.6 3.5 Other creditors and accruals 3,072.9 2,913.2 15,038.4 14,241.1 |
Trade and other payables_ amo_4
Trade and other payables: amounts falling due after more than one year (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Over 1 year [member] | |
Statement [LineItems] | |
Summary of Trade and Other Payables | 2018 2017 Payments due to vendors (earnout agreements) 266.5 450.0 Liabilities in respect of put option agreements with vendors 205.2 219.5 Fair value of derivatives 14.2 3.3 Other creditors and accruals 355.5 320.0 841.4 992.8 |
Trade and Other Payable [member] | |
Statement [LineItems] | |
Maturity Analysis for Non-derivative Financial Liabilities | The following tables set out payments due to vendors, comprising contingent consideration and the Directors’ best estimates of future earnout-related obligations: 2018 £m 2017 £m Within one year 148.2 180.7 Between one and two years 140.2 128.3 Between two and three years 38.5 144.1 Between three and four years 50.3 58.3 Between four and five years 20.4 103.1 Over five years 17.1 16.2 414.7 630.7 |
Summary of Contingent Consideration | 2018 £m 2017 £m At beginning of year 630.7 976.5 Earnouts paid (note 11) (120.2 ) (199.1 ) New acquisitions 48.6 163.7 Revision of estimates taken to goodwill (note 12) (68.3 ) (60.7 ) Revaluation of payments due to vendors (note 6) (82.6 ) (208.6 ) Exchange adjustments 6.5 (41.1 ) At end of year 414.7 630.7 |
Bank overdrafts, bonds and ba_2
Bank overdrafts, bonds and bank loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Bank Overdrafts, Bonds and Bank Loans Amounts Falling Due Within One Year | Amounts falling due within one year: 2018 £m 2017 Bank overdrafts 442.0 393.2 Corporate bonds and bank loans 583.1 230.9 1,025.1 624.1 |
Corporate Bonds and Bank Loans Amounts Falling Due After More Than One Year | Amounts falling due after more than one year: 2018 £m 2017 Corporate bonds and bank loans 5,634.8 6,250.4 |
Maturity Analysis for Non-derivative Financial Liabilities | The corporate bonds, bank loans and overdrafts included within liabilities fall due for repayment as follows: 2018 £m 2017 Within one year 1,025.1 624.1 Between one and two years 423.8 727.6 Between two and three years 761.0 421.0 Between three and four years 609.8 1,384.2 Between four and five years 670.1 356.6 Over five years 3,170.1 3,361.0 6,659.9 6,874.5 |
Provisions for liabilities an_2
Provisions for liabilities and charges (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Provisions for Liabilities and Charges | Property Other Total 1 January 2017 58.5 169.4 227.9 Charged to the income statement 4.1 16.9 21.0 Acquisitions 1 4.0 22.8 26.8 Utilised (6.0 ) (21.4 ) (27.4 ) Released to the income statement (5.5 ) (5.9 ) (11.4 ) Transfers 0.1 7.1 7.2 Exchange adjustments (2.6 ) (12.5 ) (15.1 ) 31 December 2017 52.6 176.4 229.0 Charged to the income statement 2 72.1 13.9 86.0 Acquisitions 1 0.5 8.3 8.8 Utilised (5.7 ) (20.1 ) (25.8 ) Released to the income statement (5.7 ) (4.6 ) (10.3 ) Transfers 2.0 10.9 12.9 Exchange adjustments 2.9 8.2 11.1 31 December 2018 118.7 193.0 311.7 Notes 1 Acquisitions include £8.4 million (2017: £21.9 million) of provisions arising from revisions to fair value adjustments related to the acquisition of subsidiary undertakings that had been determined provisionally at the immediately preceding balance sheet date, as permitted by IFRS 3 Business Combinations. 2 Amounts charged to the income statement in 2018 include £50.6 million in regard to transformation costs with respect to the strategic initiative of co-locations in major cities. |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Charges for Share-based Incentive Plans | Charges for share-based incentive plans were as follows: 2018 2017 2016 Share-based payments (note 5) 84.8 105.0 106.5 |
Movement on Ordinary Shares Granted for Significant Restricted Stock Plans | Movement on ordinary shares granted for significant restricted stock plans: Non-vested m Granted Lapsed Vested Non-vested number m Executive Performance Share Plan (EPSP) 9.1 0.7 (1.1 ) (2.0 ) 6.7 Performance Share Awards (PSA) 1.9 1.4 (0.1 ) (0.9 ) 2.3 Leaders, Partners and High Potential Group 6.8 4.8 (0.7 ) (1.8 ) 9.1 Weighted average fair value (pence per share): Executive Performance Share Plan (EPSP) 1,368p 814p 1,500p 1,122p 1,363p Performance Share Awards (PSA) 1,659p 1,202p 1,522p 1,517p 1,437p Leaders, Partners and High Potential Group 1,502p 806p 1,472p 1,426p 1,154p |
Provision for post-employment_2
Provision for post-employment benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Pension Costs | The Group’s pension costs are analysed as follows: 2018 2017 2016 Defined contribution plans 172.3 175.9 153.5 Defined benefit plans charge to operating profit 18.9 16.1 24.6 Pension costs (note 5) 191.2 192.0 178.1 Net interest expense on pension plans (note 6) 4.4 6.3 6.7 195.6 198.3 184.8 |
Weighted Average Assumptions Used For Actuarial Valuations | The main weighted average assumptions used for the actuarial valuations at 31 December are shown in the following table: 2018 2017 2016 2015 UK Discount rate 1 2.8 2.4 2.5 3.7 Rate of increase in salaries 2 n/a n/a 3.5 3.1 Rate of increase in pensions in payment 4.3 4.1 4.1 3.9 Inflation 2.8 2.7 2.8 2.4 North America Discount rate 1 4.1 3.5 3.8 4.0 Rate of increase in salaries 3.0 3.1 3.1 3.0 Inflation n/a 4.0 4.0 2.5 Western Continental Europe Discount rate 1 2.0 1.9 1.7 2.5 Rate of increase in salaries 2.3 1.9 2.0 2.3 Rate of increase in pensions in payment 1.2 1.2 1.3 1.6 Inflation 1.7 1.7 1.7 2.0 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe Discount rate 1 5.0 4.2 4.2 4.2 Rate of increase in salaries 5.8 5.5 5.9 5.8 Inflation 3.6 4.0 4.0 4.0 Notes 1 Discount rates are based on high-quality corporate bond yields. In countries where there is no deep market in corporate bonds, the discount rate assumption has been set with regard to the yield on long-term government bonds. 2 The salary assumptions are no longer applicable to the UK as all plans were frozen since 2017. Active participants will not accrue additional benefits for future services under these plans. |
Life Expectancies For Defined Benefit Pension Plans | At 31 December 2018, the life expectancies underlying the value of the accrued liabilities for the main defined benefit pension plans operated by the Group were as follows: Years life expectancy after All North UK Western Other 1 – current pensioners 22.2 22.1 23.2 21.1 17.0 – current pensioners 23.9 23.6 24.3 24.0 21.4 – future pensioners 24.0 23.7 24.8 23.5 17.0 – future pensioners 25.7 25.2 26.1 26.2 21.4 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. |
Weighted Average Duration of Defined Benefit Pension Obligations and Distribution of Timing of Benefit Payments | The following table provides information on the weighted average duration of the defined benefit pension obligations and the distribution of the timing of benefit payments for the next 10 years. The duration corresponds to the weighted average length of the underlying cash flows. All North UK Western Other 1 Weighted average duration of the defined benefit obligation (years) 11.8 8.5 14.2 15.7 8.2 Expected benefit payments over the next 10 years (£m) Benefits expected to be paid within 12 months 67.2 36.3 16.4 9.3 5.1 Benefits expected to be paid in 2020 58.4 34.3 12.9 8.6 2.5 Benefits expected to be paid in 2021 58.3 33.7 12.8 8.6 3.1 Benefits expected to be paid in 2022 59.1 33.6 12.7 9.1 3.6 Benefits expected to be paid in 2023 56.6 30.4 12.9 9.4 3.9 Benefits expected to be paid in the next five years 276.6 131.0 66.1 52.8 26.6 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. |
Sensitivity Analysis of Significant Actuarial Assumptions | Increase/(decrease) Sensitivity analysis of significant actuarial assumptions 2018 2017 £m Discount rate Increase by 25 basis points UK (9.8 ) (13.1 ) North America (8.8 ) (9.9 ) Western Continental Europe (8.7 ) (9.2 ) Other 1 (0.7 ) (0.6 ) Decrease by 25 basis points UK 10.3 13.8 North America 9.1 10.2 Western Continental Europe 9.3 9.8 Other 1 0.7 0.6 Rate of increase in salaries Increase by 25 basis points North America – 0.1 Western Continental Europe 1.3 1.5 Other 1 0.7 0.6 Decrease by 25 basis points North America – (0.1 ) Western Continental Europe (1.2 ) (1.5 ) Other 1 (0.6 ) (0.6 ) Rate of increase in pensions in payment Increase by 25 basis points UK 1.3 2.4 Western Continental Europe 5.3 6.2 Decrease by 25 basis points UK (0.8 ) (1.9 ) Western Continental Europe (5.0 ) (5.8 ) Life expectancy Increase in longevity by one additional year UK 13.6 16.9 North America 5.7 6.0 Western Continental Europe 6.9 7.0 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. |
Fair Value of Assets and Assessed Present Value of Liabilities in Pension Plans | At 31 December, the fair value of the assets in the pension plans, and the assessed present value of the liabilities in the pension plans are shown in the following table: 2018 % 2017 % 2016 % Equities 76.5 9.1 124.6 13.4 161.9 17.3 Bonds 544.9 64.8 520.0 55.9 566.0 60.6 Insured annuities 90.9 10.8 178.5 19.2 63.5 6.8 Property 0.9 0.1 1.3 0.1 1.6 0.2 Cash 31.1 3.7 9.9 1.1 44.9 4.8 Other 96.3 11.5 95.7 10.3 96.3 10.3 Total fair value of assets 840.6 100.0 930.0 100.0 934.2 100.0 Present value of liabilities (1,024.0 ) (1,135.4 ) (1,209.8 ) Deficit in the plans (183.4 ) (205.4 ) (275.6 ) Irrecoverable surplus (0.9 ) (0.9 ) (0.9 ) Net liability 1 (184.3 ) (206.3 ) (276.5 ) Plans in surplus 42.8 43.9 28.0 Plans in deficit (227.1 ) (250.2 ) (304.5 ) Note 1 The related deferred tax asset is discussed in note 15. |
Surplus/(Deficit) in Plans by Region | All plan assets have quoted prices in active markets with the exception of insured annuities and other assets. Surplus/(deficit) in plans by region 2018 2017 2016 UK 33.7 31.5 20.0 North America (68.7 ) (89.2 ) (133.8 ) Western Continental Europe (104.6 ) (107.7 ) (116.9 ) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (43.8 ) (40.0 ) (44.9 ) Deficit in the plans (183.4 ) (205.4 ) (275.6 ) |
Funded and Unfunded Pension Plans By Region | The following table shows the split of the deficit at 31 December between funded and unfunded pension plans. 2018 2018 2017 2017 2016 2016 Funded plans by region UK 33.7 (290.5 ) 31.5 (387.5 ) 20.0 (406.4 ) North America (4.6 ) (375.3 ) (21.4 ) (385.4 ) (56.0 ) (420.4 ) Western Continental Europe (35.8 ) (168.4 ) (37.9 ) (173.3 ) (48.9 ) (180.9 ) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (6.6 ) (19.7 ) (4.2 ) (15.8 ) (5.8 ) (17.2 ) Deficit/liabilities in the funded plans (13.3 ) (853.9 ) (32.0 ) (962.0 ) (90.7 ) (1,024.9 ) Unfunded plans by region UK – – – – – – North America (64.1 ) (64.1 ) (67.8 ) (67.8 ) (77.8 ) (77.8 ) Western Continental Europe (68.8 ) (68.8 ) (69.8 ) (69.8 ) (68.0 ) (68.0 ) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (37.2 ) (37.2 ) (35.8 ) (35.8 ) (39.1 ) (39.1 ) Deficit/liabilities in the unfunded plans (170.1 ) (170.1 ) (173.4 ) (173.4 ) (184.9 ) (184.9 ) Deficit/liabilities in the plans (183.4 ) (1,024.0 ) (205.4 ) (1,135.4 ) (275.6 ) (1,209.8 ) |
Pension Expense Charged to Operating Profit, Amounts Charged to Finance Costs and Amounts Recognised in Consolidated Statement of Comprehensive Income (OCI) | The following table shows the breakdown of the pension expense between amounts charged to operating profit, amounts charged to finance costs and amounts recognised in the consolidated statement of comprehensive income (OCI): 2018 2017 2016 Service cost 1 15.5 13.0 22.4 Administrative expenses 3.4 3.1 2.2 Charge to operating profit 18.9 16.1 24.6 Net interest expense on pension plans 4.4 6.3 6.7 Charge to profit before taxation for defined benefit plans 23.3 22.4 31.3 Return on plan assets (excluding interest income) (43.9 ) 13.4 66.3 Changes in demographic assumptions underlying the present value of the plan liabilities 3.8 12.7 6.7 Changes in financial assumptions underlying the present value of the plan liabilities 45.2 (17.0 ) (92.6 ) Experience gain arising on the plan liabilities 3.8 7.9 1.0 Change in irrecoverable surplus – – 2.7 Actuarial gain/(loss) recognised in OCI 8.9 17.0 (15.9 ) Note 1 Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments. |
Retirement benefit obligation [member] | |
Statement [LineItems] | |
Movement in Pension Plan Assets and Liabilities | The following table shows an analysis of the movement in the pension plan liabilities for each accounting period: 2018 £m 2017 £m 2016 £m Plan liabilities at beginning of year 1,135.4 1,209.8 1,039.9 Service cost 1 15.5 13.0 22.4 Interest cost 30.7 32.9 37.2 Actuarial (gain)/loss Effect of changes in demographic assumptions (3.8 ) (12.7 ) (6.7 ) Effect of changes in financial assumptions (45.2 ) 17.0 92.6 Effect of experience adjustments (3.8 ) (7.9 ) (1.0 ) Benefits paid (75.6 ) (79.7 ) (92.4 ) Loss/(gain) due to exchange rate movements 30.0 (36.4 ) 124.2 Settlement payments 2 (70.4 ) (1.2 ) (4.8 ) Other 3 11.2 0.6 (1.6 ) Plan liabilities at end of year 1,024.0 1,135.4 1,209.8 Notes 1 Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments. 2 In 2018, the Group completed the transfer of the defined benefit obligations for certain UK plans to an insurer resulting in £70.4 million settlement payments. 3 Other includes acquisitions, disposals, plan participants’ contributions and reclassifications. The reclassifications represent certain of the Group’s defined benefit plans which are included in this note for the first time in the periods presented. |
Plan assets [member] | |
Statement [LineItems] | |
Movement in Pension Plan Assets and Liabilities | The following table shows an analysis of the movement in the pension plan assets for each accounting period: 2018 2017 2016 Fair value of plan assets at beginning of year 930.0 934.2 814.2 Interest income on plan assets 26.3 26.6 30.5 Return on plan assets (excluding interest income) (43.9 ) 13.4 66.3 Employer contributions 44.9 68.2 43.7 Benefits paid (75.6 ) (79.7 ) (92.4 ) Gain/(loss) due to exchange rate movements 23.0 (28.7 ) 78.8 Settlement payments 1 (70.4 ) (1.2 ) (4.8 ) Administrative expenses (3.4 ) (3.1 ) (2.2 ) Other 2 9.7 0.3 0.1 Fair value of plan assets at end of year 840.6 930.0 934.2 Actual return on plan assets (17.6 ) 40.0 96.8 Notes 1 In 2018, the Group completed the transfer of the defined benefit obligations for certain UK plans to an insurer resulting in £70.4 million settlement payments. 2 Other includes acquisitions, disposals, plan participants’ contributions and reclassifications. The reclassifications represent certain of the Group’s defined benefit plans which are included in this note for the first time in the periods presented. |
Risk management policies (Table
Risk management policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Committed Facilities | At 31 December 2018, the Group has access to £8.4 billion of committed facilities with maturity dates spread over the years 2019 to 2046 as illustrated below: £m 2019 2020 2021 2022 2023+ £ bonds £400m (2.875% ’46) 400.0 400.0 US bond $450m (5.625% ’43) 353.3 353.3 US bond $272m (5.125% ’42) 213.1 213.1 Eurobonds € 600m (1.625% ’30) 539.1 539.1 Eurobonds € 750m (2.25%,’26) 673.9 673.9 Eurobonds € 500m (1.375% ’25) 449.2 449.2 US bond $750m (3.75%,’24) 588.4 588.4 Eurobonds € 750m (3.0% ’23) 673.9 673.9 US bond $500m (3.625% ’22) 392.3 392.3 Eurobonds € 250m (3m EURIBOR + 0.45% ’22) 224.6 224.6 US bond $812m (4.75% ’21) 637.4 637.4 Bank revolver ($2,500m ’21) 1,961.4 1,961.4 Bank revolver (A$150m ’19, A$370m ’21) 287.3 82.9 204.4 £ bonds £200m (6.375% ’20) 200.0 200.0 Eurobonds € 250m (3m EURIBOR + 0.32% ’20) 224.6 224.6 Eurobonds € 600m (0.75% ’19) 539.1 539.1 Total committed facilities available 8,357.6 622.0 424.6 2,803.2 616.9 3,890.9 Drawn down facilities at 31 December 2018 6,282.9 571.1 424.6 779.4 616.9 3,890.9 Undrawn committed credit facilities 2,074.7 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Analysis of Financial Assets and Liabilities | An analysis of the Group’s financial assets and liabilities by accounting classification is set out below: Classification Derivatives Held at Held at Amortised Carrying £m £m £m £m £m 2018 Other investments – 319.6 347.1 – 666.7 Cash and short-term deposits – – – 2,643.2 2,643.2 Bank overdrafts, bonds and bank loans – – – (1,025.1 ) (1,025.1 ) Bonds and bank loans – – – (5,634.8 ) (5,634.8 ) Trade and other receivables: amounts falling due within one year – – – 8,545.6 8,545.6 Trade and other receivables: amounts falling due after more than one year – – – 68.3 68.3 Trade and other payables: amounts falling due within one year – – – (10,637.3 ) (10,637.3 ) Trade and other payables: amounts falling due after more than one year – – – (8.4 ) (8.4 ) Derivative assets 8.4 1.3 – – 9.7 Derivative liabilities (14.2) (2.6 ) – – (16.8 ) Payments due to vendors (earnout agreements) (note 18) – (414.7 ) – – (414.7 ) Liabilities in respect of put options – (242.0 ) – – (242.0 ) (5.8) (338.4 ) 347.1 (6,048.5 ) (6,045.6 ) Classification Derivatives Held Loans Available Amortised Carrying £m £m £m £m £m £m 2017 Other investments – – – 1,153.5 – 1,153.5 Cash and short-term deposits – – 2,391.4 – – 2,391.4 Bank overdrafts, bonds and bank loans – – – – (624.1 ) (624.1 ) Bonds and bank loans – – – – (6,250.4 ) (6,250.4 ) Trade and other receivables: amounts falling due within one year – – 8,328.4 – – 8,328.4 Trade and other receivables: amounts falling due after more than one year – – 61.7 – – 61.7 Trade and other payables: amounts falling due within one year – – – – (9,970.5 ) (9,970.5 ) Trade and other payables: amounts falling due after more than one year – – – – (8.5 ) (8.5 ) Derivative assets 2.1 1.0 – – – 3.1 Derivative liabilities (3.3 ) (3.5 ) – – – (6.8 ) Payments due to vendors (earnout agreements) (note 18) – (630.7 ) – – – (630.7 ) Liabilities in respect of put options – (258.1 ) – – – (258.1 ) (1.2 ) (891.3 ) 10,781.5 1,153.5 (16,853.5 ) (5,811.0 ) |
Analysis of Financial Instruments Measured at 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: Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices); Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Level 1 Level 2 Level 3 2018 Derivatives in designated hedge relationships Derivative assets – 8.4 – Derivative liabilities – (14.2 ) – Held at fair value through profit or loss Other investments 0.4 – 319.2 Derivative assets – 1.3 – Derivative liabilities – (2.6 ) – Payments due to vendors (earnout agreements) (note 18) – – (414.7 ) Liabilities in respect of put options – – (242.0 ) Held at fair value through other comprehensive income Other investments 128.1 – 219.0 Level 1 Level 2 Level 3 2017 Derivatives in designated hedge relationships Derivative assets – 2.1 – Derivative liabilities – (3.3 ) – Held for trading Derivative assets – 1.0 – Derivative liabilities – (3.5 ) – Payments due to vendors (earnout agreements) (note 18) – – (630.7 ) Liabilities in respect of put options – – (258.1 ) Available for sale Other investments 333.2 – 820.3 There have been no transfers between these levels in the periods presented. Reconciliation of level 3 fair value measurements 1 Liabilities Other 1 January 2017 (297.0 ) 881.0 Gains/(losses) recognised in the income statement 52.5 (13.8 ) Gains recognised in other comprehensive income – 15.1 Exchange adjustments 7.5 (70.9 ) Additions (40.5 ) 67.7 Disposals – (1.7 ) Cancellations 2.9 – Reclassifications from other investments to interests in associates – (57.1 ) Settlements 16.5 – 31 December 2017 (258.1 ) 820.3 Gains recognised in the income statement 34.5 61.1 Losses recognised in other comprehensive income – (140.6 ) Exchange adjustments 1.1 – Additions (43.5 ) 35.0 Disposals – (237.3 ) Cancellations 2.2 – Reclassifications from other investments to interests in associates – (0.3 ) Settlements 21.8 – 31 December 2018 (242.0 ) 538.2 Note 1 The reconciliation of payments due to vendors (earnout agreements) is presented in note 18. |
Authorised and issued share c_2
Authorised and issued share capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Authorised and Issued Share Capital | Equity ordinary shares Nominal value £m Authorised At 1 January 2016 1,750,000,000 175.0 At 31 December 2016 1,750,000,000 175.0 At 31 December 2017 1,750,000,000 175.0 At 31 December 2018 1,750,000,000 175.0 Issued and fully paid At 1 January 2016 1,329,366,024 132.9 Exercise of share options 2,514,706 0.3 At 31 December 2016 1,331,880,730 133.2 Exercise of share options 630,822 0.1 At 31 December 2017 1,332,511,552 133.3 Exercise of share options 166,675 – At 31 December 2018 1,332,678,227 133.3 |
Movements and Weighted-average Exercise Price for Options Granted | Movements on options granted (represented in ordinary shares) 1 January Granted Exercised Lapsed Outstanding Exercisable WPP 6,741 – – – 6,741 6,741 WWOP 6,375,750 – (166,675 ) (688,301 ) 5,520,774 5,520,774 WSOP 14,602,950 6,301,400 – (2,213,250 ) 18,691,100 3,403,650 20,985,441 6,301,400 (166,675 ) (2,901,551 ) 24,218,615 8,931,165 Weighted-average exercise price for options over 1 January Granted Exercised Lapsed Outstanding Exercisable Ordinary shares (£) WPP 9.355 – – – 9.355 9.355 WWOP 12.195 – 7.064 12.473 12.290 12.290 WSOP 14.929 8.372 – 14.818 12.753 15.150 ADRs ($) WWOP 94.752 – 57.031 99.731 95.453 95.453 WSOP 101.047 53.140 – 98.978 84.893 115.940 |
Range of Exercise Prices of Options | Options over ordinary shares Outstanding Range of exercise prices £ Weighted average £ Weighted average 5.483 – 17.055 12.656 96 Options over ADRs Outstanding Range of exercise prices $ Weighted average $ Weighted average 44.560 – 115.940 87.703 93 |
Weighted Average Fair Value of Options Granted and Weighted Average Assumptions | The weighted average fair value of options granted in the year calculated using the Black-Scholes model was as follows: 2018 2017 2016 Fair value of UK options (shares) 107.0p 112.0p 135.0p Fair value of US options (ADRs) $8.09 $9.40 $9.94 Weighted average assumptions: UK Risk-free interest rate 0.78% 0.57% 0.44% US Risk-free interest rate 2.74% 2.05% 1.60% Expected life (months) 48 48 48 Expected volatility 24% 17% 16% Dividend yield 3.5% 2.9% 2.8% |
WPP Executive Share Option Scheme [member] | |
Statement [LineItems] | |
Options Granted | As at 31 December 2018, unexercised options over ordinary shares of 6,741 have been granted under the WPP Executive Share Option Scheme as follows: Number of ordinary shares under option Exercise price Exercise dates 3,696 8.333 2015 - 2022 3,045 10.595 2016 - 2023 |
WPP Worldwide Share Ownership Program [member] | |
Statement [LineItems] | |
Options Granted | As at 31 December 2018, unexercised options over ordinary shares of 3,187,979 and unexercised options over ADRs of 466,559 have been granted under the WPP Worldwide Share Ownership Programme as follows: Number of ordinary Exercise price Exercise dates 28,275 5.483 2012 - 2019 18,000 5.483 2013 - 2019 750 5.608 2012 - 2019 95,000 6.268 2014 - 2021 44,125 6.268 2015 - 2021 61,625 7.113 2013 - 2020 30,250 7.113 2014 - 2020 233,129 8.458 2015 - 2022 52,000 13.145 2017 - 2021 1,959,975 13.145 2017 - 2024 4,750 13.145 2018 - 2024 642,975 13.505 2016 - 2023 17,125 13.505 2017 - 2023 Number of ADRs Exercise price Exercise dates 11,855 44.560 2012 - 2019 29,025 49.230 2014 - 2021 19,200 56.560 2013 - 2020 44,964 67.490 2015 - 2022 195,890 102.670 2017 - 2024 165,625 110.760 2016 - 2023 |
WPP Share Option Plan 2015 [member] | |
Statement [LineItems] | |
Options Granted | As at 31 December 2018, unexercised options over ordinary shares of 12,257,750 and unexercised options over ADRs of 1,286,670 have been granted under the WPP Share Option Plan 2015 as follows: Number of ordinary shares under option Exercise price Exercise dates 23,750 8.372 2021 - 2025 4,053,925 8.372 2021 - 2028 23,875 13.085 2020 - 2024 3,245,325 13.085 2020 - 2027 66,125 15.150 2018 - 2022 2,211,900 15.150 2018 - 2025 5,750 15.150 2019 - 2025 15,875 17.055 2019 - 2023 2,611,225 17.055 2019 - 2026 Number of ADRs under option Exercise price Exercise dates 439,205 53.140 2021 - 2028 340,225 88.260 2020 - 2027 282,115 105.490 2020 - 2026 225,125 115.940 2018 - 2025 |
Other reserves (Tables)
Other reserves (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Other Reserves | Other reserves comprise the following: Capital £m Equity £m Revaluation reserve £m Translation £m Total 1 January 2016 2.7 (225.2 ) 364.4 (151.6 ) (9.7 ) Exchange adjustments on foreign currency net investments – – – 1,309.9 1,309.9 Loss on revaluation of available for sale investments – – (93.1 ) – (93.1 ) Recognition and remeasurement of financial instruments – (21.9 ) – – (21.9 ) 31 December 2016 2.7 (247.1 ) 271.3 1,158.3 1,185.2 Exchange adjustments on foreign currency net investments – – – (445.5 ) (445.5 ) Gain on revaluation of available for sale investments – – 32.1 – 32.1 Recognition and remeasurement of financial instruments – (10.1 ) – – (10.1 ) 31 December 2017 2.7 (257.2 ) 303.4 712.8 761.7 Exchange adjustments on foreign currency net investments – – – 69.9 69.9 Accounting policy change (IFRS 9) 1 – – (303.4 ) (104.0 ) (407.4 ) Recognition and remeasurement of financial instruments – (30.7 ) – – (30.7 ) 31 December 2018 2.7 (287.9 ) – 678.7 393.5 Note 1 Due to the adoption of IFRS 9, cumulative gains and losses on revaluation of available for sale investments have been transferred to retained earnings, as described in the accounting policies. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Book Values of Identifiable Assets and Liabilities Acquired and Their Fair Value | Acquisitions in 2018 The Group acquired a number of subsidiaries in the year. The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the Group. The fair value adjustments for certain acquisitions have been determined provisionally at the balance sheet date. Book Fair value adjustments Fair Intangible assets – 40.3 40.3 Property, plant and equipment 3.1 – 3.1 Cash 5.0 – 5.0 Trade receivables due within one year 43.7 – 43.7 Other current assets 20.3 – 20.3 Total assets 72.1 40.3 112.4 Current liabilities (42.8 ) – (42.8 ) Trade and other payables due after one year (2.4 ) (13.5 ) (15.9 ) Deferred tax liabilities – (9.9 ) (9.9 ) Provisions – (0.4 ) (0.4 ) Total liabilities (45.2 ) (23.8 ) (69.0 ) Net assets 26.9 16.5 43.4 Non-controlling interests (6.3 ) Fair value of equity stake in associate undertakings before acquisition of controlling interest (3.1 ) Goodwill 141.6 Consideration 175.6 Consideration satisfied by: Cash 127.4 Payments due to vendors 48.2 Goodwill arising from acquisitions represents the value of synergies with our existing portfolio of businesses and skilled staff to deliver services to our clients. Goodwill that is expected to be deductible for tax purposes is £65.3 million. Non-controlling interests in acquired companies are measured at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets. The contribution to revenue and operating profit of acquisitions completed in the year was not material. There were no material acquisitions completed between 31 December 2018 and the date the financial statements have been authorised for issue. Acquisitions in 2017 The Group acquired a number of subsidiaries in the year. The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the Group. The fair value adjustments for certain acquisitions have been determined provisionally at the balance sheet date. Book Fair value Fair Intangible assets 0.8 79.0 79.8 Property, plant and equipment 5.5 – 5.5 Cash 28.9 – 28.9 Trade receivables due within one year 74.4 – 74.4 Other current assets 20.1 – 20.1 Total assets 129.7 79.0 208.7 Current liabilities (76.0 ) – (76.0 ) Trade and other payables due after one year (10.2 ) (20.5 ) (30.7 ) Deferred tax liabilities – (16.8 ) (16.8 ) Provisions (0.1 ) (4.8 ) (4.9 ) Total liabilities (86.3 ) (42.1 ) (128.4 ) Net assets 43.4 36.9 80.3 Non-controlling interests (13.9 ) Fair value of equity stake in associate undertakings before acquisition of controlling interest (5.7 ) Goodwill 314.3 Consideration 375.0 Consideration satisfied by: Cash 213.7 Payments due to vendors 161.3 Goodwill arising from acquisitions represents the value of synergies with our existing portfolio of businesses and skilled staff to deliver services to our clients. Goodwill that is expected to be deductible for tax purposes is £63.9 million. Non-controlling interests in acquired companies are measured at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets. The contribution to revenue and operating profit of acquisitions completed in the year was not material. Acquisitions in 2016 The Group acquired a number of subsidiaries in the year. The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the Group. The fair value adjustments for certain acquisitions have been determined provisionally at the balance sheet date. Book Fair value Fair Intangible assets 10.5 319.1 329.6 Property, plant and equipment 20.6 – 20.6 Cash 57.1 – 57.1 Trade receivables due within one year 249.5 – 249.5 Other current assets 78.0 – 78.0 Total assets 415.7 319.1 734.8 Current liabilities (299.4 ) (2.8 ) (302.2 ) Trade and other payables due after one year (40.4 ) (59.5 ) (99.9 ) Deferred tax liabilities – (96.1 ) (96.1 ) Provisions (0.1 ) (11.5 ) (11.6 ) Bank loans (144.4 ) – (144.4 ) Total liabilities (484.3 ) (169.9 ) (654.2 ) Net assets (68.6 ) 149.2 80.6 Non-controlling interests (15.0 ) Fair value of equity stake in associate undertakings before acquisition of controlling interest (98.5 ) Goodwill 799.3 Consideration 766.4 Consideration satisfied by: Cash 423.3 Payments due to vendors 343.1 Goodwill arising from acquisitions represents the value of synergies with our existing portfolio of businesses and skilled staff to deliver services to our clients. Goodwill that is expected to be deductible for tax purposes is £54.8 million. Non-controlling interests in acquired companies are measured at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets. The contribution to revenue and operating profit of acquisitions completed in the year was not material. |
Reconciliation of profit befo_2
Reconciliation of profit before interest and taxation to headline PBIT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Reconciliation of Profit Before Interest and Taxation to Headline PBIT | 2018 2017 2016 Profit before interest and taxation 1,474.9 2,021.7 2,112.9 Amortisation and impairment of acquired intangible assets 280.0 195.1 168.4 Goodwill impairment 183.9 27.1 27.0 Gains on disposal of investments and subsidiaries (235.5) (129.0) (44.3) (Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership (2.0 ) 0.3 (232.4 ) Investment write-downs 2.0 95.9 86.1 Restructuring and transformation costs 302.3 56.8 27.4 Share of exceptional losses/(gains) of associates 41.7 (0.8 ) 15.2 Headline PBIT 2,047.3 2,267.1 2,160.3 |
Condensed consolidating finan_2
Condensed consolidating financial information for bonds issued (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | |
Statement [LineItems] | |
Condensed Consolidating Income Statement Information | Condensed consolidating income statement information For the year ended 31 December 2018, £m WPP Subsidiary WPP Other Reclassifications / Consolidated Revenue — — — 15,602.4 — 15,602.4 Costs of services — — — (12,663.5 ) — (12,663.5 ) Gross profit — — — 2,938.9 — 2,938.9 General and administrative costs 10.8 (305.8 ) — (1,212.5 ) — (1,507.5 ) Operating profit/(loss) 10.8 (305.8 ) — 1,726.4 — 1,431.4 Share of results of subsidiaries 1,179.2 1,710.2 — — (2,889.4 ) — Share of results of associates — — — 43.5 — 43.5 Profit before interest and taxation 1,190.0 1,404.4 — 1,769.9 (2,889.4 ) 1,474.9 Finance income — 27.8 102.3 300.6 (325.9 ) 104.8 Finance costs (127.1 ) (248.9 ) (103.1 ) (136.1 ) 325.9 (289.3 ) Revaluation of financial instruments — — (1.1 ) 174.0 — 172.9 Profit/(loss) before taxation 1,062.9 1,183.3 (1.9 ) 2,108.4 (2,889.4 ) 1,463.3 Taxation — (4.1 ) — (319.8 ) — (323.9 ) Profit/(loss) for the year 1,062.9 1,179.2 (1.9 ) 1,788.6 (2,889.4 ) 1,139.4 Attributable to: Equity holders of the parent 1,062.9 1,179.2 (1.9 ) 1,712.1 (2,889.4 ) 1,062.9 Non-controlling — — — 76.5 — 76.5 1,062.9 1,179.2 (1.9 ) 1,788.6 (2,889.4 ) 1,139.4 For the year ended 31 December 2017, £m 1 WPP Subsidiary WPP Other Reclassifications / Consolidated Revenue — — — 15,804.2 — 15,804.2 Costs of services — — — (12,629.0 ) — (12,629.0 ) Gross profit — — — 3,175.2 — 3,175.2 General and administrative costs 14.1 74.7 — (1,355.8 ) — (1,267.0 ) Operating profit 14.1 74.7 — 1,819.4 — 1,908.2 Share of results of subsidiaries 1,901.2 2,016.5 — — (3,917.7 ) — Share of results of associates — — — 113.5 — 113.5 Profit before interest and taxation 1,915.3 2,091.2 — 1,932.9 (3,917.7 ) 2,021.7 Finance income — 24.5 110.6 262.8 (302.7 ) 95.2 Finance costs (99.3 ) (221.5 ) (103.4 ) (148.3 ) 302.7 (269.8 ) Revaluation of financial instruments 0.6 — (5.4 ) 267.0 — 262.2 Profit before taxation 1,816.6 1,894.2 1.8 2,314.4 (3,917.7 ) 2,109.3 Taxation — 7.0 — (204.0 ) — (197.0 ) Profit for the year 1,816.6 1,901.2 1.8 2,110.4 (3,917.7 ) 1,912.3 Attributable to: Equity holders of the parent 1,816.6 1,901.2 1.8 2,014.7 (3,917.7 ) 1,816.6 Non-controlling — — — 95.7 — 95.7 1,816.6 1,901.2 1.8 2,110.4 (3,917.7 ) 1,912.3 Note 1 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. For the year ended 31 December 2016, £m 1 WPP Subsidiary WPP Other Reclassifications / Consolidated Revenue — — — 14,887.3 — 14,887.3 Costs of services — — — (11,846.5 ) — (11,846.5 ) Gross profit — — — 3,040.8 — 3,040.8 General and administrative costs 13.8 (828.2 ) (0.1 ) (163.2 ) — (977.7 ) Operating profit/(loss) 13.8 (828.2 ) (0.1 ) 2,877.6 — 2,063.1 Share of results of subsidiaries 1,497.4 2,518.2 — — (4,015.6 ) — Share of results of associates — — — 49.8 — 49.8 Profit/(loss) before interest and taxation 1,511.2 1,690.0 (0.1 ) 2,927.4 (4,015.6 ) 2,112.9 Finance income — 28.8 121.1 231.9 (301.4 ) 80.4 Finance costs (102.5 ) (222.1 ) (98.8 ) (132.5 ) 301.4 (254.5 ) Revaluation of financial instruments (8.6 ) — 7.0 (46.7 ) — (48.3 ) Profit before taxation 1,400.1 1,496.7 29.2 2,980.1 (4,015.6 ) 1,890.5 Taxation — 0.7 — (389.6 ) — (388.9 ) Profit for the year 1,400.1 1,497.4 29.2 2,590.5 (4,015.6 ) 1,501.6 Attributable to: Equity holders of the parent 1,400.1 1,497.4 29.2 2,489.0 (4,015.6 ) 1,400.1 Non-controlling — — — 101.5 — 101.5 1,400.1 1,497.4 29.2 2,590.5 (4,015.6 ) 1,501.6 Note 1 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Condensed Consolidating Statement of Comprehensive Income | Condensed consolidating statement of comprehensive income For the year ended 31 December 2018, £m WPP plc Subsidiary Guarantors WPP Finance 2010 Other Reclassifications / Consolidated Profit/(loss) for the year 1,062.9 1,179.2 (1.9 ) 1,788.6 (2,889.4 ) 1,139.4 Items that may be reclassified subsequently to profit or loss: Exchange adjustments on foreign currency net investments 69.9 69.9 0.6 78.3 (139.8 ) 78.9 69.9 69.9 0.6 78.3 (139.8 ) 78.9 Items that will not be reclassified subsequently to profit or loss: Actuarial gain on defined benefit pension plans 8.9 8.9 — 8.9 (17.8 ) 8.9 Deferred tax on defined benefit pension plans (0.7 ) (0.7 ) — (0.7 ) 1.4 (0.7 ) Movements on equity investments held at fair value through other comprehensive income (247.9 ) (247.9 ) — (247.9 ) 495.8 (247.9 ) (239.7 ) (239.7 ) — (239.7 ) 479.4 (239.7 ) Other comprehensive (loss)/income for the year (169.8 ) (169.8 ) 0.6 (161.4 ) 339.6 (160.8 ) Total comprehensive income/(loss) for the year 893.1 1,009.4 (1.3 ) 1,627.2 (2,549.8 ) 978.6 Attributable to: Equity holders of the parent 893.1 1,009.4 (1.3 ) 1,541.7 (2,549.8 ) 893.1 Non-controlling — — — 85.5 — 85.5 893.1 1,009.4 (1.3 ) 1,627.2 (2,549.8 ) 978.6 For the year ended 31 December 2017, £m WPP plc Subsidiary Guarantors WPP Finance 2010 Other Reclassifications / Consolidated Profit for the year 1,816.6 1,901.2 1.8 2,110.4 (3,917.7 ) 1,912.3 Items that may be reclassified subsequently to profit or loss: Exchange adjustments on foreign currency net investments (445.5 ) (445.5 ) (0.6 ) (464.6 ) 891.0 (465.2 ) Gain on revaluation of available for sale investments 32.1 32.1 — 32.1 (64.2 ) 32.1 (413.4 ) (413.4 ) (0.6 ) (432.5 ) 826.8 (433.1 ) Items that will not be reclassified subsequently to profit or loss: Actuarial gain on defined benefit pension plans 17.0 17.0 — 17.0 (34.0 ) 17.0 Deferred tax on defined benefit pension plans (24.6 ) (24.6 ) — (24.6 ) 49.2 (24.6 ) (7.6 ) (7.6 ) — (7.6 ) 15.2 (7.6 ) Other comprehensive loss for the year (421.0 ) (421.0 ) (0.6 ) (440.1 ) 842.0 (440.7 ) Total comprehensive income for the year 1,395.6 1,480.2 1.2 1,670.3 (3,075.7 ) 1,471.6 Attributable to: Equity holders of the parent 1,395.6 1,480.2 1.2 1,594.3 (3,075.7 ) 1,395.6 Non-controlling — — — 76.0 — 76.0 1,395.6 1,480.2 1.2 1,670.3 (3,075.7 ) 1,471.6 For the year ended 31 December 2016, £m WPP plc Subsidiary Guarantors WPP Finance 2010 Other Reclassifications / Consolidated Profit for the year 1,400.1 1,497.4 29.2 2,590.5 (4,015.6 ) 1,501.6 Items that may be reclassified subsequently to profit or loss: Exchange adjustments on foreign currency net investments 1,309.9 1,309.9 (1.2 ) 1,379.2 (2,619.8 ) 1,378.0 Loss on revaluation of available for sale investments (93.1 ) (93.1 ) — (93.1 ) 186.2 (93.1 ) 1,216.8 1,216.8 (1.2 ) 1,286.1 (2,433.6 ) 1,284.9 Items that will not be reclassified subsequently to profit or loss: Actuarial loss on defined benefit pension plans (15.9 ) (15.9 ) — (15.9 ) 31.8 (15.9 ) Deferred tax on defined benefit pension plans (0.4 ) (0.4 ) — (0.4 ) 0.8 (0.4 ) (16.3 ) (16.3 ) — (16.3 ) 32.6 (16.3 ) Other comprehensive income/(loss) for the year 1,200.5 1,200.5 (1.2 ) 1,269.8 (2,401.0 ) 1,268.6 Total comprehensive income for the year 2,600.6 2,697.9 28.0 3,860.3 (6,416.6 ) 2,770.2 Attributable to: Equity holders of the parent 2,600.6 2,697.9 28.0 3,690.7 (6,416.6 ) 2,600.6 Non-controlling — — — 169.6 — 169.6 2,600.6 2,697.9 28.0 3,860.3 (6,416.6 ) 2,770.2 |
Condensed Consolidating Cash Flow Statement Information | Condensed consolidating cash flow statement information For the year ended 31 December 2018, £m WPP Subsidiary WPP Other Subsidiaries Reclassifications/ Consolidated Net cash inflow/(outflow) from operating activities 2,308.8 (271.1 ) 42.9 (386.8 ) — 1,693.8 Investing activities Acquisitions — — — (298.8 ) — (298.8 ) Proceeds on disposal of investments and subsidiaries — — — 849.0 — 849.0 Purchases of property, plant and equipment — (10.4 ) — (304.4 ) — (314.8 ) Purchases of other intangible assets (including capitalised computer software) — — — (60.4 ) — (60.4 ) Proceeds on disposal of property, plant and equipment — — — 9.5 — 9.5 Net cash inflow/(outflow) from investing activities — (10.4 ) — 194.9 — 184.5 Financing activities Share option proceeds 1.2 — — — — 1.2 Cash consideration for non-controlling — (0.3 ) — (109.6 ) — (109.9 ) Share repurchases and buy-backs (104.3 ) — — (102.8 ) — (207.1 ) Net decrease in borrowings — — (58.1 ) (382.5 ) — (440.6 ) Financing and share issue costs — — — (3.8 ) — (3.8 ) Equity dividends paid (747.4 ) — — — — (747.4 ) Dividends paid to non-controlling — — — (106.2 ) — (106.2 ) Net cash outflow from financing activities (850.5 ) (0.3 ) (58.1 ) (704.9 ) — (1,613.8 ) Net increase/(decrease) in cash and cash equivalents 1,458.3 (281.8 ) (15.2 ) (896.8 ) — 264.5 Translation of cash and cash equivalents (4.7 ) (51.5 ) (5.4 ) 0.1 — (61.5 ) Cash and cash equivalents at beginning of year (2,627.7 ) (1,636.8 ) (27.4 ) 6,290.1 — 1,998.2 Cash and cash equivalents at end of year (1,174.1 ) (1,970.1 ) (48.0 ) 5,393.4 — 2,201.2 For the year ended 31 December 2017, £m WPP Subsidiary WPP Other Subsidiaries Reclassifications/ Consolidated Net cash inflow/(outflow) from operating activities 32.9 (49.7 ) (13.6 ) 1,438.5 — 1,408.1 Investing activities Acquisitions — — — (477.5 ) — (477.5 ) Proceeds on disposal of investments and subsidiaries — — — 296.0 — 296.0 Purchases of property, plant and equipment — (10.4 ) — (278.5 ) — (288.9 ) Purchases of other intangible assets (including capitalised computer software) — — — (37.3 ) — (37.3 ) Proceeds on disposal of property, plant and equipment — — — 8.0 — 8.0 Net cash outflow from investing activities — (10.4 ) — (489.3 ) — (499.7 ) Financing activities Share option proceeds 6.4 — — — — 6.4 Cash consideration for non-controlling — (1.4 ) — (45.9 ) — (47.3 ) Share repurchases and buy-backs (289.6 ) — — (214.6 ) — (504.2 ) Net increase/(decrease) in borrowings (400.0 ) — — 999.6 — 599.6 Financing and share issue costs — — — (0.8 ) — (0.8 ) Equity dividends paid (751.5 ) — — — — (751.5 ) Dividends paid to non-controlling — — — (87.8 ) — (87.8 ) Net cash (outflow)/inflow from financing activities (1,434.7 ) (1.4 ) — 650.5 — (785.6 ) Net increase/(decrease) in cash and cash equivalents (1,401.8 ) (61.5 ) (13.6 ) 1,599.7 — 122.8 Translation of cash and cash equivalents (0.9 ) 48.4 1.3 (76.0 ) — (27.2 ) Cash and cash equivalents at beginning of year (1,225.0 ) (1,623.7 ) (15.1 ) 4,766.4 — 1,902.6 Cash and cash equivalents at end of year (2,627.7 ) (1,636.8 ) (27.4 ) 6,290.1 — 1,998.2 For the year ended 31 December 2016, £m WPP Subsidiary WPP Other Subsidiaries Reclassifications/ Consolidated Net cash inflow/(outflow) from operating activities 963.1 1,002.2 65.5 (257.0 ) — 1,773.8 Investing activities Acquisitions — — — (719.3 ) — (719.3 ) Proceeds on disposal of investments and subsidiaries — — — 80.5 — 80.5 Purchases of property, plant and equipment — (1.1 ) — (251.0 ) — (252.1 ) Purchases of other intangible assets (including capitalised computer software) — — — (33.0 ) — (33.0 ) Proceeds on disposal of property, plant and equipment — — — 7.7 — 7.7 Net cash outflow from investing activities — (1.1 ) — (915.1 ) — (916.2 ) Financing activities Share option proceeds 27.2 — — — — 27.2 Cash consideration for non-controlling — (1.3 ) — (57.0 ) — (58.3 ) Share repurchases and buy-backs (274.5 ) — — (152.9 ) — (427.4 ) Net (decrease)/increase in borrowings (392.1 ) — — 369.6 — (22.5 ) Financing and share issue costs — — — (6.4 ) — (6.4 ) Equity dividends paid (616.5 ) — — — — (616.5 ) Dividends paid to non-controlling — — — (89.6 ) — (89.6 ) Net cash (outflow)/inflow from financing activities (1,255.9 ) (1.3 ) — 63.7 — (1,193.5 ) Net (decrease)/increase in cash and cash equivalents (292.8 ) 999.8 65.5 (1,108.4 ) — (335.9 ) Translation of cash and cash equivalents (5.7 ) (154.6 ) (13.1 ) 465.3 — 291.9 Cash and cash equivalents at beginning of year (926.5 ) (2,468.9 ) (67.5 ) 5,409.5 — 1,946.6 Cash and cash equivalents at end of year (1,225.0 ) (1,623.7 ) (15.1 ) 4,766.4 — 1,902.6 |
Condensed Consolidating Balance Sheet Information | Condensed consolidating balance sheet information For the year ended 31 December 2018, £m WPP plc Subsidiary WPP Other Reclassifications/ Consolidated Non-current Intangible assets: Goodwill — — — 13,202.8 — 13,202.8 Other — — — 1,842.0 — 1,842.0 Property, plant and equipment — 26.1 — 1,056.9 — 1,083.0 Investment in subsidiaries 15,463.9 29,497.8 — — (44,961.7 ) — Interests in associates and joint ventures — — — 796.8 — 796.8 Other investments — — — 666.7 — 666.7 Deferred tax assets — — — 153.0 — 153.0 Trade and other receivables — — — 180.0 — 180.0 Intercompany receivables — 205.4 2,182.9 7,657.7 (10,046.0 ) — 15,463.9 29,729.3 2,182.9 25,555.9 (55,007.7 ) 17,924.3 Current assets Corporate income tax recoverable — — — 198.7 — 198.7 Trade and other receivables 0.6 497.9 0.1 12,602.9 — 13,101.5 Intercompany receivables 1,675.6 1,720.6 55.2 8,129.9 (11,581.3 ) — Cash and short-term deposits — 21.1 41.4 5,835.4 (3,254.7 ) 2,643.2 1,676.2 2,239.6 96.7 26,766.9 (14,836.0 ) 15,943.4 Current liabilities Trade and other payables (3.7 ) (57.5 ) (21.6 ) (14,955.6 ) — (15,038.4 ) Intercompany payables (5,190.3 ) (6,250.5 ) (0.9 ) (139.6 ) 11,581.3 — Corporate income tax payable — — — (545.9 ) — (545.9 ) Bank overdrafts, bonds and bank loans (1,174.1 ) (1,991.2 ) (89.4 ) (1,025.1 ) 3,254.7 (1,025.1 ) (6,368.1 ) (8,299.2 ) (111.9 ) (16,666.2 ) 14,836.0 (16,609.4 ) Net current (liabilities)/assets (4,691.9 ) (6,059.6 ) (15.2 ) 10,100.7 — (666.0 ) Total assets less current liabilities 10,772.0 23,669.7 2,167.7 35,656.6 (55,007.7 ) 17,258.3 Non-current Bonds and bank loans — — (2,151.8 ) (3,483.0 ) — (5,634.8 ) Trade and other payables — — (5.5 ) (835.9 ) — (841.4 ) Intercompany payables (1,389.8 ) (8,205.8 ) — (450.4 ) 10,046.0 — Deferred tax liabilities — — — (479.5 ) — (479.5 ) Provision for post-employment benefits — — — (184.3 ) — (184.3 ) Provisions for liabilities and charges — — — (311.7 ) — (311.7 ) (1,389.8 ) (8,205.8 ) (2,157.3 ) (5,744.8 ) 10,046.0 (7,451.7 ) Net assets 9,382.2 15,463.9 10.4 29,911.8 (44,961.7 ) 9,806.6 Attributable to: Equity shareholders’ funds 9,382.2 15,463.9 10.4 29,487.4 (44,961.7 ) 9,382.2 Non-controlling — — — 424.4 — 424.4 Total equity 9,382.2 15,463.9 10.4 29,911.8 (44,961.7 ) 9,806.6 At 31 December 2017, £m 1 WPP plc Subsidiary WPP Other Reclassifications/ Consolidated Non-current Intangible assets: Goodwill — — — 12,952.9 — 12,952.9 Other — — — 2,018.4 — 2,018.4 Property, plant and equipment — 16.5 — 963.0 — 979.5 Investment in subsidiaries 14,638.1 27,915.3 — — (42,553.4 ) — Interests in associates and joint ventures — — — 1,065.2 — 1,065.2 Other investments — — — 1,153.5 — 1,153.5 Deferred tax assets — — — 160.3 — 160.3 Trade and other receivables — — 1.6 174.6 — 176.2 Intercompany receivables 2 — 203.3 2,078.3 7,649.3 (9,930.9 ) — 14,638.1 28,135.1 2,079.9 26,137.2 (52,484.3 ) 18,506.0 Current assets Corporate income tax recoverable — — — 234.7 — 234.7 Trade and other receivables 0.3 457.3 0.1 12,073.0 — 12,530.7 Intercompany receivables 2 1,661.4 1,713.8 65.7 5,268.8 (8,709.7 ) — Cash and short-term deposits — 235.0 — 6,683.5 (4,527.1 ) 2,391.4 1,661.7 2,406.1 65.8 24,260.0 (13,236.8 ) 15,156.8 Current liabilities Trade and other payables (16.9 ) (113.9 ) (19.6 ) (14,090.7 ) — (14,241.1 ) Intercompany payables 2 (2,808.3 ) (5,780.2 ) — (121.2 ) 8,709.7 — Corporate income tax payable — — — (649.3 ) — (649.3 ) Bank overdrafts, bonds and bank loans (2,627.7 ) (1,871.8 ) (27.4 ) (624.3 ) 4,527.1 (624.1 ) (5,452.9 ) (7,765.9 ) (47.0 ) (15,485.5 ) 13,236.8 (15,514.5 ) Net current (liabilities)/assets (3,791.2 ) (5,359.8 ) 18.8 8,774.5 — (357.7 ) Total assets less current liabilities 10,846.9 22,775.3 2,098.7 34,911.7 (52,484.3 ) 18,148.3 Non-current Bonds and bank loans — — (2,087.1 ) (4,163.3 ) — (6,250.4 ) Trade and other payables — — — (992.8 ) — (992.8 ) Intercompany payables 2 (1,359.6 ) (8,137.2 ) — (434.1 ) 9,930.9 — Deferred tax liabilities — — — (513.7 ) — (513.7 ) Provision for post-employment benefits — — — (206.3 ) — (206.3 ) Provisions for liabilities and charges — — — (229.0 ) — (229.0 ) (1,359.6 ) (8,137.2 ) (2,087.1 ) (6,539.2 ) 9,930.9 (8,192.2 ) Net assets 9,487.3 14,638.1 11.6 28,372.5 (42,553.4 ) 9,956.1 Attributable to: Equity shareholders’ funds 9,487.3 14,638.1 11.6 27,903.7 (42,553.4 ) 9,487.3 Non-controlling — — — 468.8 — 468.8 Total equity 9,487.3 14,638.1 11.6 28,372.5 (42,553.4 ) 9,956.1 Notes 1 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. 2 Prior year figures have been restated to reclassify certain intercompany balances in an amount of £2,540.2 million from non-current |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | |
Statement [LineItems] | |
Condensed Consolidating Income Statement Information | Condensed consolidating income statement information For the year ended 31 December 2018, £m WPP plc Subsidiary WPP Other Reclassifications / Consolidated Revenue — — — 15,602.4 — 15,602.4 Costs of services — — — (12,663.5 ) — (12,663.5 ) Gross profit — — — 2,938.9 — 2,938.9 General and administrative costs 10.8 (305.8 ) — (1,212.5 ) — (1,507.5 ) Operating profit/(loss) 10.8 (305.8 ) — 1,726.4 — 1,431.4 Share of results of subsidiaries 1,179.2 1,710.2 — — (2,889.4 ) — Share of results of associates — — — 43.5 — 43.5 Profit before interest and taxation 1,190.0 1,404.4 — 1,769.9 (2,889.4 ) 1,474.9 Finance income — 27.8 102.3 300.6 (325.9 ) 104.8 Finance costs (127.1 ) (248.9 ) (103.1 ) (136.1 ) 325.9 (289.3 ) Revaluation of financial instruments — — (1.1 ) 174.0 — 172.9 Profit/(loss) before taxation 1,062.9 1,183.3 (1.9 ) 2,108.4 (2,889.4 ) 1,463.3 Taxation — (4.1 ) — (319.8 ) — (323.9 ) Profit/(loss) for the year 1,062.9 1,179.2 (1.9 ) 1,788.6 (2,889.4 ) 1,139.4 Attributable to: Equity holders of the parent 1,062.9 1,179.2 (1.9 ) 1,712.1 (2,889.4 ) 1,062.9 Non-controlling — — — 76.5 — 76.5 1,062.9 1,179.2 (1.9 ) 1,788.6 (2,889.4 ) 1,139.4 For the year ended 31 December 2017, £m 1 WPP plc Subsidiary WPP Other Reclassifications / Consolidated Revenue — — — 15,804.2 — 15,804.2 Costs of services — — — (12,629.0 ) — (12,629.0 ) Gross profit — — — 3,175.2 — 3,175.2 General and administrative costs 14.1 74.7 — (1,355.8 ) — (1,267.0 ) Operating profit 14.1 74.7 — 1,819.4 — 1,908.2 Share of results of subsidiaries 1,901.2 2,016.5 — — (3,917.7 ) — Share of results of associates — — — 113.5 — 113.5 Profit before interest and taxation 1,915.3 2,091.2 — 1,932.9 (3,917.7 ) 2,021.7 Finance income — 24.5 110.6 262.8 (302.7 ) 95.2 Finance costs (99.3 ) (221.5 ) (103.4 ) (148.3 ) 302.7 (269.8 ) Revaluation of financial instruments 0.6 — (5.4 ) 267.0 — 262.2 Profit before taxation 1,816.6 1,894.2 1.8 2,314.4 (3,917.7 ) 2,109.3 Taxation — 7.0 — (204.0 ) — (197.0 ) Profit for the year 1,816.6 1,901.2 1.8 2,110.4 (3,917.7 ) 1,912.3 Attributable to: Equity holders of the parent 1,816.6 1,901.2 1.8 2,014.7 (3,917.7 ) 1,816.6 Non-controlling — — — 95.7 — 95.7 1,816.6 1,901.2 1.8 2,110.4 (3,917.7 ) 1,912.3 Note 1 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. For the year ended 31 December 2016, £m 1 WPP plc Subsidiary WPP Other Reclassifications / Consolidated Revenue — — — 14,887.3 — 14,887.3 Costs of services — — — (11,846.5 ) — (11,846.5 ) Gross profit — — — 3,040.8 — 3,040.8 General and administrative costs 13.8 (828.2 ) (0.1 ) (163.2 ) — (977.7 ) Operating profit/(loss) 13.8 (828.2 ) (0.1 ) 2,877.6 — 2,063.1 Share of results of subsidiaries 1,497.4 2,518.2 — — (4,015.6 ) — Share of results of associates — — — 49.8 — 49.8 Profit/(loss) before interest and taxation 1,511.2 1,690.0 (0.1 ) 2,927.4 (4,015.6 ) 2,112.9 Finance income — 28.8 121.1 231.9 (301.4 ) 80.4 Finance costs (102.5 ) (222.1 ) (98.8 ) (132.5 ) 301.4 (254.5 ) Revaluation of financial instruments (8.6 ) — 7.0 (46.7 ) — (48.3 ) Profit before taxation 1,400.1 1,496.7 29.2 2,980.1 (4,015.6 ) 1,890.5 Taxation — 0.7 — (389.6 ) — (388.9 ) Profit for the year 1,400.1 1,497.4 29.2 2,590.5 (4,015.6 ) 1,501.6 Attributable to: Equity holders of the parent 1,400.1 1,497.4 29.2 2,489.0 (4,015.6 ) 1,400.1 Non-controlling — — — 101.5 — 101.5 1,400.1 1,497.4 29.2 2,590.5 (4,015.6 ) 1,501.6 Note 1 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Condensed Consolidating Statement of Comprehensive Income | Condensed consolidating statement of comprehensive income For the year ended 31 December 2018, £m WPP plc Subsidiary Guarantors WPP Finance 2010 Other Reclassifications / Consolidated Profit/(loss) for the year 1,062.9 1,179.2 (1.9 ) 1,788.6 (2,889.4 ) 1,139.4 Items that may be reclassified subsequently to profit or loss: Exchange adjustments on foreign currency net investments 69.9 69.9 0.6 78.3 (139.8 ) 78.9 69.9 69.9 0.6 78.3 (139.8 ) 78.9 Items that will not be reclassified subsequently to profit or loss: Actuarial gain on defined benefit pension plans 8.9 8.9 — 8.9 (17.8 ) 8.9 Deferred tax on defined benefit pension plans (0.7 ) (0.7 ) — (0.7 ) 1.4 (0.7 ) Movements on equity investments held at fair value through other comprehensive income (247.9 ) (247.9 ) — (247.9 ) 495.8 (247.9 ) (239.7 ) (239.7 ) — (239.7 ) 479.4 (239.7 ) Other comprehensive (loss)/income for the year (169.8 ) (169.8 ) 0.6 (161.4 ) 339.6 (160.8 ) Total comprehensive income/(loss) for the year 893.1 1,009.4 (1.3 ) 1,627.2 (2,549.8 ) 978.6 Attributable to: Equity holders of the parent 893.1 1,009.4 (1.3 ) 1,541.7 (2,549.8 ) 893.1 Non-controlling — — — 85.5 — 85.5 893.1 1,009.4 (1.3 ) 1,627.2 (2,549.8 ) 978.6 For the year ended 31 December 2017, £m WPP plc Subsidiary Guarantors WPP Finance 2010 Other Reclassifications / Consolidated Profit for the year 1,816.6 1,901.2 1.8 2,110.4 (3,917.7 ) 1,912.3 Items that may be reclassified subsequently to profit or loss: Exchange adjustments on foreign currency net investments (445.5 ) (445.5 ) (0.6 ) (464.6 ) 891.0 (465.2 ) Gain on revaluation of available for sale investments 32.1 32.1 — 32.1 (64.2 ) 32.1 (413.4 ) (413.4 ) (0.6 ) (432.5 ) 826.8 (433.1 ) Items that will not be reclassified subsequently to profit or loss: Actuarial gain on defined benefit pension plans 17.0 17.0 — 17.0 (34.0 ) 17.0 Deferred tax on defined benefit pension plans (24.6 ) (24.6 ) — (24.6 ) 49.2 (24.6 ) (7.6 ) (7.6 ) — (7.6 ) 15.2 (7.6 ) Other comprehensive loss for the year (421.0 ) (421.0 ) (0.6 ) (440.1 ) 842.0 (440.7 ) Total comprehensive income for the year 1,395.6 1,480.2 1.2 1,670.3 (3,075.7 ) 1,471.6 Attributable to: Equity holders of the parent 1,395.6 1,480.2 1.2 1,594.3 (3,075.7 ) 1,395.6 Non-controlling — — — 76.0 — 76.0 1,395.6 1,480.2 1.2 1,670.3 (3,075.7 ) 1,471.6 For the year ended 31 December 2016, £m WPP plc Subsidiary Guarantors WPP Finance 2010 Other Reclassifications / Consolidated Profit for the year 1,400.1 1,497.4 29.2 2,590.5 (4,015.6 ) 1,501.6 Items that may be reclassified subsequently to profit or loss: Exchange adjustments on foreign currency net investments 1,309.9 1,309.9 (1.2 ) 1,379.2 (2,619.8 ) 1,378.0 Loss on revaluation of available for sale investments (93.1 ) (93.1 ) — (93.1 ) 186.2 (93.1 ) 1,216.8 1,216.8 (1.2 ) 1,286.1 (2,433.6 ) 1,284.9 Items that will not be reclassified subsequently to profit or loss: Actuarial loss on defined benefit pension plans (15.9 ) (15.9 ) — (15.9 ) 31.8 (15.9 ) Deferred tax on defined benefit pension plans (0.4 ) (0.4 ) — (0.4 ) 0.8 (0.4 ) (16.3 ) (16.3 ) — (16.3 ) 32.6 (16.3 ) Other comprehensive income/(loss) for the year 1,200.5 1,200.5 (1.2 ) 1,269.8 (2,401.0 ) 1,268.6 Total comprehensive income for the year 2,600.6 2,697.9 28.0 3,860.3 (6,416.6 ) 2,770.2 Attributable to: Equity holders of the parent 2,600.6 2,697.9 28.0 3,690.7 (6,416.6 ) 2,600.6 Non-controlling — — — 169.6 — 169.6 2,600.6 2,697.9 28.0 3,860.3 (6,416.6 ) 2,770.2 |
Condensed Consolidating Cash Flow Statement Information | Condensed consolidating cash flow statement information For the year ended 31 December 2018, £m WPP plc Subsidiary WPP Other Subsidiaries Reclassifications/ Consolidated Net cash inflow/(outflow) from operating activities 2,308.8 (271.1 ) 42.9 (386.8 ) — 1,693.8 Investing activities Acquisitions — — — (298.8 ) — (298.8 ) Proceeds on disposal of investments and subsidiaries — — — 849.0 — 849.0 Purchases of property, plant and equipment — (10.4 ) — (304.4 ) — (314.8 ) Purchases of other intangible assets (including capitalised computer software) — — — (60.4 ) — (60.4 ) Proceeds on disposal of property, plant and equipment — — — 9.5 — 9.5 Net cash inflow/(outflow) from investing activities — (10.4 ) — 194.9 — 184.5 Financing activities Share option proceeds 1.2 — — — — 1.2 Cash consideration for non-controlling — (0.3 ) — (109.6 ) — (109.9 ) Share repurchases and buy-backs (104.3 ) — — (102.8 ) — (207.1 ) Net decrease in borrowings — — (58.1 ) (382.5 ) — (440.6 ) Financing and share issue costs — — — (3.8 ) — (3.8 ) Equity dividends paid (747.4 ) — — — — (747.4 ) Dividends paid to non-controlling — — — (106.2 ) — (106.2 ) Net cash outflow from financing activities (850.5 ) (0.3 ) (58.1 ) (704.9 ) — (1,613.8 ) Net increase/(decrease) in cash and cash equivalents 1,458.3 (281.8 ) (15.2 ) (896.8 ) — 264.5 Translation of cash and cash equivalents (4.7 ) (51.5 ) (5.4 ) 0.1 — (61.5 ) Cash and cash equivalents at beginning of year (2,627.7 ) (1,640.6 ) (27.4 ) 6,293.9 — 1,998.2 Cash and cash equivalents at end of year (1,174.1 ) (1,973.9 ) (48.0 ) 5,397.2 — 2,201.2 For the year ended 31 December 2017, £m WPP plc Subsidiary WPP Other Subsidiaries Reclassifications/ Consolidated WPP plc Net cash inflow/(outflow) from operating activities 32.9 (49.7 ) (13.6 ) 1,438.5 — 1,408.1 Investing activities Acquisitions — — — (477.5 ) — (477.5 ) Proceeds on disposal of investments and subsidiaries — — — 296.0 — 296.0 Purchases of property, plant and equipment — (10.4 ) — (278.5 ) — (288.9 ) Purchases of other intangible assets (including capitalised computer software) — — — (37.3 ) — (37.3 ) Proceeds on disposal of property, plant and equipment — — — 8.0 — 8.0 Net cash outflow from investing activities — (10.4 ) — (489.3 ) — (499.7 ) Financing activities Share option proceeds 6.4 — — — — 6.4 Cash consideration for non-controlling — (1.4 ) — (45.9 ) — (47.3 ) Share repurchases and buy-backs (289.6 ) — — (214.6 ) — (504.2 ) Net increase/(decrease) in borrowings (400.0 ) — — 999.6 — 599.6 Financing and share issue costs — — — (0.8 ) — (0.8 ) Equity dividends paid (751.5 ) — — — — (751.5 ) Dividends paid to non-controlling — — — (87.8 ) — (87.8 ) Net cash (outflow)/inflow from financing activities (1,434.7 ) (1.4 ) — 650.5 — (785.6 ) Net increase/(decrease) in cash and cash equivalents (1,401.8 ) (61.5 ) (13.6 ) 1,599.7 — 122.8 Translation of cash and cash equivalents (0.9 ) 48.4 1.3 (76.0 ) — (27.2 ) Cash and cash equivalents at beginning of year (1,225.0 ) (1,627.5 ) (15.1 ) 4,770.2 — 1,902.6 Cash and cash equivalents at end of year (2,627.7 ) (1,640.6 ) (27.4 ) 6,293.9 — 1,998.2 For the year ended 31 December 2016, £m WPP plc Subsidiary Guarantors WPP Finance 2010 Other Reclassifications/ Consolidated Net cash inflow/(outflow) from operating activities 963.1 1,002.2 65.5 (257.0 ) — 1,773.8 Investing activities Acquisitions — — — (719.3 ) — (719.3 ) Proceeds on disposal of investments and subsidiaries — — — 80.5 — 80.5 Purchases of property, plant and equipment — (1.1 ) — (251.0 ) — (252.1 ) Purchases of other intangible assets (including capitalised computer software) — — — (33.0 ) — (33.0 ) Proceeds on disposal of property, plant and equipment — — — 7.7 — 7.7 Net cash outflow from investing activities — (1.1 ) — (915.1 ) — (916.2 ) Financing activities Share option proceeds 27.2 — — — — 27.2 Cash consideration for non-controlling — (1.3 ) — (57.0 ) — (58.3 ) Share repurchases and buy-backs (274.5 ) — — (152.9 ) — (427.4 ) Net (decrease)/increase in borrowings (392.1 ) — — 369.6 — (22.5 ) Financing and share issue costs — — — (6.4 ) — (6.4 ) Equity dividends paid (616.5 ) — — — — (616.5 ) Dividends paid to non-controlling — — — (89.6 ) — (89.6 ) Net cash (outflow)/inflow from financing activities (1,255.9 ) (1.3 ) — 63.7 — (1,193.5 ) Net (decrease)/increase in cash and cash equivalents (292.8 ) 999.8 65.5 (1,108.4 ) — (335.9 ) Translation of cash and cash equivalents (5.7 ) (154.6 ) (13.1 ) 465.3 — 291.9 Cash and cash equivalents at beginning of year (926.5 ) (2,472.7 ) (67.5 ) 5,413.3 — 1,946.6 Cash and cash equivalents at end of year (1,225.0 ) (1,627.5 ) (15.1 ) 4,770.2 — 1,902.6 |
Condensed Consolidating Balance Sheet Information | Condensed consolidating balance sheet information At 31 December 2018, £m WPP plc Subsidiary WPP Other Reclassifications/ Consolidated Non-current Intangible assets: Goodwill — — — 13,202.8 — 13,202.8 Other — — — 1,842.0 — 1,842.0 Property, plant and equipment — 26.1 — 1,056.9 — 1,083.0 Investment in subsidiaries 15,463.9 29,329.2 — — (44,793.1 ) — Interests in associates and joint ventures — — — 796.8 — 796.8 Other investments — — — 666.7 — 666.7 Deferred tax assets — — — 153.0 — 153.0 Trade and other receivables — — — 180.0 — 180.0 Intercompany receivables — 205.4 2,182.9 7,657.7 (10,046.0 ) — 15,463.9 29,560.7 2,182.9 25,555.9 (54,839.1 ) 17,924.3 Current assets Corporate income tax recoverable — — — 198.7 — 198.7 Trade and other receivables 0.6 497.9 0.1 12,602.9 — 13,101.5 Intercompany receivables 1,675.6 1,720.6 55.2 8,130.6 (11,582.0 ) — Cash and short-term deposits — 17.3 41.4 5,839.2 (3,254.7 ) 2,643.2 1,676.2 2,235.8 96.7 26,771.4 (14,836.7 ) 15,943.4 Current liabilities Trade and other payables (3.7 ) (57.5 ) (21.6 ) (14,955.6 ) — (15,038.4 ) Intercompany payables (5,190.3 ) (6,078.1 ) (0.9 ) (312.7 ) 11,582.0 — Corporate income tax payable — — — (545.9 ) — (545.9 ) Bank overdrafts, bonds and bank loans (1,174.1 ) (1,991.2 ) (89.4 ) (1,025.1 ) 3,254.7 (1,025.1 ) (6,368.1 ) (8,126.8 ) (111.9 ) (16,839.3 ) 14,836.7 (16,609.4 ) Net current (liabilities)/assets (4,691.9 ) (5,891.0 ) (15.2 ) 9,932.1 — (666.0 ) Total assets less current liabilities 10,772.0 23,669.7 2,167.7 35,488.0 (54,839.1 ) 17,258.3 Non-current Bonds and bank loans — — (2,151.8 ) (3,483.0 ) — (5,634.8 ) Trade and other payables — — (5.5 ) (835.9 ) — (841.4 ) Intercompany payables (1,389.8 ) (8,205.8 ) — (450.4 ) 10,046.0 — Deferred tax liabilities — — — (479.5 ) — (479.5 ) Provision for post-employment benefits — — — (184.3 ) — (184.3 ) Provisions for liabilities and charges — — — (311.7 ) — (311.7 ) (1,389.8 ) (8,205.8 ) (2,157.3 ) (5,744.8 ) 10,046.0 (7,451.7 ) Net assets 9,382.2 15,463.9 10.4 29,743.2 (44,793.1 ) 9,806.6 Attributable to: Equity shareholders’ funds 9,382.2 15,463.9 10.4 29,318.8 (44,793.1 ) 9,382.2 Non-controlling — — — 424.4 — 424.4 Total equity 9,382.2 15,463.9 10.4 29,743.2 (44,793.1 ) 9,806.6 At 31 December 2017, £m 1 WPP plc Subsidiary WPP Other Reclassifications/ Consolidated Non-current Intangible assets: Goodwill — — — 12,952.9 — 12,952.9 Other — — — 2,018.4 — 2,018.4 Property, plant and equipment — 16.5 — 963.0 — 979.5 Investment in subsidiaries 14,638.1 27,746.7 — — (42,384.8 ) — Interests in associates and joint ventures — — — 1,065.2 — 1,065.2 Other investments — — — 1,153.5 — 1,153.5 Deferred tax assets — — — 160.3 — 160.3 Trade and other receivables — — 1.6 174.6 — 176.2 Intercompany receivables 2 — 203.3 2,078.3 7,649.3 (9,930.9 ) — 14,638.1 27,966.5 2,079.9 26,137.2 (52,315.7 ) 18,506.0 Current assets Corporate income tax recoverable — — — 234.7 — 234.7 Trade and other receivables 0.3 457.3 0.1 12,073.0 — 12,530.7 Intercompany receivables 2 1,661.4 1,713.8 65.7 5,268.7 (8,709.6 ) — Cash and short-term deposits — 231.2 — 6,687.3 (4,527.1 ) 2,391.4 1,661.7 2,402.3 65.8 24,263.7 (13,236.7 ) 15,156.8 Current liabilities Trade and other payables (16.9 ) (113.9 ) (19.6 ) (14,090.7 ) — (14,241.1 ) Intercompany payables 2 (2,808.3 ) (5,607.8 ) — (293.5 ) 8,709.6 — Corporate income tax payable — — — (649.3 ) — (649.3 ) Bank overdrafts, bonds and bank loans (2,627.7 ) (1,871.8 ) (27.4 ) (624.3 ) 4,527.1 (624.1 ) (5,452.9 ) (7,593.5 ) (47.0 ) (15,657.8 ) 13,236.7 (15,514.5 ) Net current (liabilities)/assets (3,791.2 ) (5,191.2 ) 18.8 8,605.9 — (357.7 ) Total assets less current liabilities 10,846.9 22,775.3 2,098.7 34,743.1 (52,315.7 ) 18,148.3 Non-current Bonds and bank loans — — (2,087.1 ) (4,163.3 ) — (6,250.4 ) Trade and other payables — — — (992.8 ) — (992.8 ) Intercompany payables 2 (1,359.6 ) (8,137.2 ) — (434.1 ) 9,930.9 — Deferred tax liabilities — — — (513.7 ) — (513.7 ) Provision for post-employment benefits — — — (206.3 ) — (206.3 ) Provisions for liabilities and charges — — — (229.0 ) — (229.0 ) (1,359.6 ) (8,137.2 ) (2,087.1 ) (6,539.2 ) 9,930.9 (8,192.2 ) Net assets 9,487.3 14,638.1 11.6 28,203.9 (42,384.8 ) 9,956.1 Attributable to: Equity shareholders’ funds 9,487.3 14,638.1 11.6 27,735.1 (42,384.8 ) 9,487.3 Non-controlling — — — 468.8 — 468.8 Total equity 9,487.3 14,638.1 11.6 28,203.9 (42,384.8 ) 9,956.1 Notes 1 Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. 2 Prior year figures have been restated to reclassify certain intercompany balances in an amount of £2,540.2 million from non-current |
Accounting policies - IFRS 16 I
Accounting policies - IFRS 16 Implementation - Additional Information (Detail) - Expected impact of initial application of new standards or interpretations [member] | Jan. 01, 2019GBP (£)Point |
Bottom of range [member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Right-of-use asset | £ 2,000,000,000 |
Lease liability | £ 2,000,000,000 |
Increase to operating margin | Point | 0.4 |
Decrease to diluted earnings per share | £ (0.013) |
Top of range [member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Right-of-use asset | 2,500,000,000 |
Lease liability | £ 2,500,000,000 |
Increase to operating margin | Point | 0.6 |
Decrease to diluted earnings per share | £ (0.016) |
Accounting policies - IFRS 9 an
Accounting policies - IFRS 9 and IFRS 15 Implementations - Additional Information (Detail) - GBP (£) £ in Millions | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of initial application of standards or interpretations [line items] | ||||
Work in progress reclassified as trade and other receivables | £ 366.5 | £ 401.1 | ||
181 days - 1 year [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Percentage of trade receivables for which loss allowance required | 50.00% | |||
Over 1 year [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Percentage of trade receivables for which loss allowance required | 100.00% | |||
Retained earnings [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Accounting policy change (IFRS 9) | £ 407.4 | £ 407.4 | [1],[2] | |
Other reserves [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Accounting policy change (IFRS 9) | £ (407.4) | £ (407.4) | [2],[3] | |
[1] | Retained earnings have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. | |||
[2] | The impact of the adoption of IFRS 9 Financial Instruments from 1 January 2018 is described in the accounting policies on pages F-2 to F-3. | |||
[3] | Other reserves are analysed in note 26. |
Accounting policies - Summary o
Accounting policies - Summary of the Impact of Adopting IFRS 15 (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||||
Revenue | [1],[2] | £ 15,602.4 | £ 15,804.2 | £ 14,887.3 | ||
Costs of services | (12,663.5) | (12,629) | [2] | (11,846.5) | [2] | |
Gross profit | £ 2,938.9 | 3,175.2 | [2] | 3,040.8 | [2] | |
Previously stated [member] | ||||||
Disclosure of initial application of standards or interpretations [line items] | ||||||
Revenue | 15,265.4 | 14,388.9 | ||||
Costs of services | (12,090.2) | (11,348.1) | ||||
Gross profit | 3,175.2 | 3,040.8 | ||||
Impact due to adoption of IFRS 15 [member] | ||||||
Disclosure of initial application of standards or interpretations [line items] | ||||||
Revenue | 538.8 | 498.4 | ||||
Costs of services | £ (538.8) | £ (498.4) | ||||
[1] | Intersegment sales have not been separately disclosed as they are not material. | |||||
[2] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Accounting policies - Summary_2
Accounting policies - Summary of Estimated Useful Life of Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Bottom of range [member] | Brand names [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 10 years |
Bottom of range [member] | Customer-related intangibles [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 3 years |
Bottom of range [member] | Other proprietary tools [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 3 years |
Bottom of range [member] | Other [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 3 years |
Top of range [member] | Brand names [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 20 years |
Top of range [member] | Customer-related intangibles [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 10 years |
Top of range [member] | Other proprietary tools [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 10 years |
Top of range [member] | Other [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 5 years |
Accounting policies - Summary_3
Accounting policies - Summary of Estimated Useful Life of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Freehold buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 50 years |
Leasehold land and buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | Over the term of the lease or life of the asset, if shorter. |
Bottom of range [member] | Fixtures, fittings and equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 3 years |
Bottom of range [member] | Computer equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 3 years |
Top of range [member] | Fixtures, fittings and equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 10 years |
Top of range [member] | Computer equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 5 years |
Accounting policies - Hyperinfl
Accounting policies - Hyperinflation in Argentina - Additional Information (Detail) - Argentina [Member] £ in Millions | 12 Months Ended |
Dec. 31, 2018GBP (£) | |
Disclosure of Hyperinflationary Reporting [line items] | |
Increase in goodwill due to hyperinflation | £ 105.8 |
Increase in other intangibles due to hyperinflation | £ 19.5 |
Segment information - Additiona
Segment information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018Segments | |
Disclosure of operating segments [abstract] | |
Number of reportable segments | 4 |
Segment information - Contribut
Segment information - Contributions by Reportable Segments (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Disclosure of operating segments [line items] | ||||||
Revenue | [1],[2] | £ 15,602.4 | £ 15,804.2 | £ 14,887.3 | ||
Headline PBIT | [3] | 2,047.3 | 2,267.1 | 2,160.3 | ||
Share-based payments | 84.8 | 105 | 106.5 | |||
Capital additions | [1],[4] | 375.2 | 326.2 | 285.1 | ||
Depreciation and amortisation | [1],[5] | 263.8 | 267 | 259.4 | ||
Goodwill impairment | 183.9 | 27.1 | 27 | |||
Share of results of associates | 43.5 | 113.5 | [2] | 49.8 | [2] | |
Interests in associates and joint ventures | 796.8 | 1,065.2 | 1,069.4 | |||
Advertising and media investment management [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Revenue | [1],[2] | 7,132.4 | 7,368.7 | 6,709.4 | ||
Revenue less pass-through costs | [2],[6] | 5,529.7 | 5,889.3 | 5,450.9 | ||
Headline PBIT | [3] | £ 972.4 | £ 1,109 | £ 1,027.2 | ||
Headline PBIT margin | [7] | 17.60% | 18.80% | 18.80% | ||
Share-based payments | £ 41.9 | £ 57 | £ 60.7 | |||
Capital additions | [1],[4] | 190.8 | 171.3 | 126.2 | ||
Depreciation and amortisation | [1],[5] | 111.8 | 108.8 | 105.4 | ||
Goodwill impairment | 148 | 19.5 | 20.9 | |||
Share of results of associates | 16.6 | 27 | 8.3 | |||
Interests in associates and joint ventures | 203.4 | 193.1 | 285.6 | |||
Data investment management [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Revenue | [1],[2] | 2,582.5 | 2,703.4 | 2,672.4 | ||
Revenue less pass-through costs | [2],[6] | 1,965.4 | 2,052.1 | 1,994 | ||
Headline PBIT | [3] | £ 301.1 | £ 350.3 | £ 351.5 | ||
Headline PBIT margin | [7] | 15.30% | 17.10% | 17.60% | ||
Share-based payments | £ 12.8 | £ 14.4 | £ 13 | |||
Capital additions | [1],[4] | 68.9 | 58.8 | 61.5 | ||
Depreciation and amortisation | [1],[5] | 56.6 | 59.9 | 60.9 | ||
Goodwill impairment | 0.9 | |||||
Share of results of associates | 12.5 | 15.3 | 13.2 | |||
Interests in associates and joint ventures | 113.1 | 106.3 | 109.4 | |||
Public relations & public affairs [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Revenue | [1],[2] | 1,210.7 | 1,204 | 1,130.6 | ||
Revenue less pass-through costs | [2],[6] | 1,136.3 | 1,140.6 | 1,078.5 | ||
Headline PBIT | [3] | £ 183.7 | £ 183.2 | £ 179.8 | ||
Headline PBIT margin | [7] | 16.20% | 16.10% | 16.70% | ||
Share-based payments | £ 8.3 | £ 8.6 | £ 7.5 | |||
Capital additions | [1],[4] | 13.4 | 10.6 | 10.3 | ||
Depreciation and amortisation | [1],[5] | 13.8 | 12.2 | 11.6 | ||
Goodwill impairment | 7.6 | |||||
Share of results of associates | 5.2 | 6.3 | 3.2 | |||
Interests in associates and joint ventures | 39.5 | 34.2 | 108.1 | |||
Brand consulting, health & wellness and specialist communications [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Revenue | [1],[2] | 4,676.8 | 4,528.1 | 4,374.9 | ||
Revenue less pass-through costs | [2],[6] | 4,195.2 | 4,087.6 | 3,905.2 | ||
Headline PBIT | [3] | £ 590.1 | £ 624.6 | £ 601.8 | ||
Headline PBIT margin | [7] | 14.10% | 15.30% | 15.40% | ||
Share-based payments | £ 21.8 | £ 25 | £ 25.3 | |||
Capital additions | [1],[4] | 102.1 | 85.5 | 87.1 | ||
Depreciation and amortisation | [1],[5] | 81.6 | 86.1 | 81.5 | ||
Goodwill impairment | 35 | 6.1 | ||||
Share of results of associates | 9.2 | 64.9 | 25.1 | |||
Interests in associates and joint ventures | £ 440.8 | £ 731.6 | £ 566.3 | |||
[1] | Intersegment sales have not been separately disclosed as they are not material. | |||||
[2] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. | |||||
[3] | A reconciliation from profit before interest and taxation to headline PBIT is provided in note 29. PBIT is reconciled to reported profit before taxation in the consolidated income statement. | |||||
[4] | Capital additions include purchases of property, plant and equipment and other intangible assets (including capitalised computer software). | |||||
[5] | Depreciation of property, plant and equipment and amortisation of other intangible assets. | |||||
[6] | Revenue less pass-through costs is revenue less media, data collection and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media and data collection costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. | |||||
[7] | Headline PBIT margin is calculated as headline PBIT (defined above) as a percentage of revenue less pass-through costs. Previously referred to as revenue less pass-through costs margin. |
Segment information - Contrib_2
Segment information - Contributions by Geographical Area (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of geographical areas [line items] | ||||
Revenue | [1],[2] | £ 15,602.4 | £ 15,804.2 | £ 14,887.3 |
Headline PBIT | [3] | 2,047.3 | 2,267.1 | 2,160.3 |
Non-current assets | [4] | 17,762.9 | 18,343.6 | |
North America [member] | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 5,371 | 5,659.2 | 5,400.9 | |
Revenue less pass-through costs | 4,474.2 | 4,793.9 | 4,598.4 | |
Headline PBIT | £ 804 | £ 937.4 | £ 895.4 | |
Headline PBIT margin | 18.00% | 19.60% | 19.50% | |
Non-current assets | [4],[5] | £ 7,269.7 | £ 7,667.5 | |
United Kingdom [member] | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 2,189.4 | 2,133.4 | £ 1,970.7 | |
Revenue less pass-through costs | 1,691.3 | 1,688 | 1,590.2 | |
Headline PBIT | £ 244.6 | £ 280 | £ 261.4 | |
Headline PBIT margin | 14.50% | 16.60% | 16.40% | |
Non-current assets | [4] | £ 2,079.2 | £ 2,098.2 | |
Western Continental Europe [member] | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 3,335.3 | 3,230.6 | £ 3,008.5 | |
Revenue less pass-through costs | 2,735.4 | 2,630.6 | 2,438.3 | |
Headline PBIT | £ 372.7 | £ 376 | £ 351.7 | |
Headline PBIT margin | 13.60% | 14.30% | 14.40% | |
Non-current assets | [4] | £ 4,385.6 | £ 4,542.1 | |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 4,706.7 | 4,781 | £ 4,507.2 | |
Revenue less pass-through costs | 3,925.7 | 4,057.1 | 3,801.7 | |
Headline PBIT | £ 626 | £ 673.7 | £ 651.8 | |
Headline PBIT margin | 15.90% | 16.60% | 17.10% | |
Non-current assets | [4] | £ 4,028.4 | £ 4,035.8 | |
[1] | Intersegment sales have not been separately disclosed as they are not material. | |||
[2] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. | |||
[3] | A reconciliation from profit before interest and taxation to headline PBIT is provided in note 29. PBIT is reconciled to reported profit before taxation in the consolidated income statement. | |||
[4] | Non-current assets excluding financial instruments and deferred tax. | |||
[5] | North America includes the US with non-current assets of £6,791.9 million (2017: £7,202.7 million). |
Segment information - Contrib_3
Segment information - Contributions by Geographical Area (Parenthetical) (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of geographical areas [line items] | ||||
Revenue | [1],[2] | £ 15,602.4 | £ 15,804.2 | £ 14,887.3 |
Headline PBIT | [3] | 2,047.3 | 2,267.1 | 2,160.3 |
Non-current assets | [4] | 17,762.9 | 18,343.6 | |
United States [member] | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 5,074.1 | 5,336.3 | 5,107.2 | |
Revenue less pass-through costs | 4,236.7 | 4,535.3 | 4,359.7 | |
Headline PBIT | 761.6 | 890.3 | £ 849.4 | |
Non-current assets | £ 6,791.9 | £ 7,202.7 | ||
[1] | Intersegment sales have not been separately disclosed as they are not material. | |||
[2] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. | |||
[3] | A reconciliation from profit before interest and taxation to headline PBIT is provided in note 29. PBIT is reconciled to reported profit before taxation in the consolidated income statement. | |||
[4] | Non-current assets excluding financial instruments and deferred tax. |
Costs of services and general_3
Costs of services and general and administrative costs - Summary of Operating Costs (Detail) - GBP (£) £ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Analysis of income and expense [abstract] | |||||||
Costs of services | £ 12,663.5 | £ 12,629 | [1] | £ 11,846.5 | [1] | ||
General and administrative costs | 1,507.5 | 1,267 | [1] | 977.7 | [1] | ||
Costs of services and general and administrative costs | [2] | 14,171 | 13,896 | [1] | 12,824.2 | [1] | |
Costs of services and general and administrative costs include: | |||||||
Staff costs (note 5) | 8,172.6 | 8,319 | [1] | 7,784.9 | [1] | ||
Establishment costs | 871.7 | 888.6 | [1] | 836.5 | [1] | ||
Media pass-through costs | 1,458 | 1,429.4 | [1] | 1,276.2 | [1] | ||
Data collection pass-through costs | 609.2 | 646.4 | [1] | 669.8 | [1] | ||
Other costs of services and general and administrative costs | 3,059.5 | 2,612.6 | [1] | 2,256.8 | [1] | ||
Costs of services and general and administrative costs | [2] | 14,171 | 13,896 | [1] | 12,824.2 | [1] | |
Goodwill impairment (note 12) | 183.9 | 27.1 | 27 | ||||
Investment write-downs | 2 | 95.9 | 86.1 | ||||
Restructuring and transformation costs | £ 234 | 302.3 | 56.8 | 27.4 | |||
Amortisation and impairment of acquired intangible assets (note 12) | 280 | 195.1 | 168.4 | ||||
Amortisation of other intangible assets (note 12) | 38.7 | 36.3 | 38.6 | ||||
Depreciation of property, plant and equipment | 225.1 | 230.7 | 215.2 | ||||
Losses on sale of property, plant and equipment | 0.6 | 1.1 | 0.8 | ||||
Gains on disposal of investments and subsidiaries | (235.5) | (129) | (44.3) | ||||
(Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership | (2) | 0.3 | (232.4) | ||||
Net foreign exchange (gains)/losses | £ (13.2) | £ 12.9 | £ (17) | ||||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. | ||||||
[2] | Other costs of services and general and administrative costs include £708.6 million (2017: £558.8 million, 2016: £512.7 million) of other pass-through costs. |
Costs of services and general_4
Costs of services and general and administrative costs - Summary of Operating Costs (Parenthetical) (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Analysis of income and expense [abstract] | |||||
Other pass-through costs | £ 708.6 | £ 558.8 | [1] | £ 512.7 | [1] |
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Costs of services and general_5
Costs of services and general and administrative costs - Additional Information (Detail) - GBP (£) £ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Information About Operating Cost [line items] | |||||
Credits relating to the release of excess provisions and other balances | £ 29.9 | £ 44.8 | £ 26.3 | ||
Goodwill impairment | 183.9 | 27.1 | 27 | ||
Investment write-downs | 2 | 95.9 | 86.1 | ||
Restructuring and transformation costs | £ 234 | 302.3 | 56.8 | 27.4 | |
Gains on disposal of investments and subsidiaries | 235.5 | 129 | 44.3 | ||
Costs arising from a structural assessment of operations [member] | |||||
Disclosure Of Information About Operating Cost [line items] | |||||
Restructuring and transformation costs | £ 68.3 | 210.3 | |||
Transformation cost [member] | |||||
Disclosure Of Information About Operating Cost [line items] | |||||
Restructuring and transformation costs | 92 | ||||
Severance costs [member] | |||||
Disclosure Of Information About Operating Cost [line items] | |||||
Restructuring and transformation costs | 33.7 | 0 | |||
IT services and infrastructure cost [member] | |||||
Disclosure Of Information About Operating Cost [line items] | |||||
Restructuring and transformation costs | 12.8 | 27.4 | |||
comScore Inc. [member] | |||||
Disclosure Of Information About Operating Cost [line items] | |||||
Investment write-downs | 53.1 | ||||
Globant S.A. [member] | |||||
Disclosure Of Information About Operating Cost [line items] | |||||
Gains on disposal of investments and subsidiaries | 185.3 | ||||
Asatsu-DK Inc. [member] | |||||
Disclosure Of Information About Operating Cost [line items] | |||||
Gains on disposal of investments and subsidiaries | 92.3 | ||||
Goodwill [member] | |||||
Disclosure Of Information About Operating Cost [line items] | |||||
Goodwill impairment | 183.9 | £ 27.1 | £ 27 | ||
Goodwill [member] | VMLY&R [member] | |||||
Disclosure Of Information About Operating Cost [line items] | |||||
Goodwill impairment | 148 | ||||
Other business [member] | |||||
Disclosure Of Information About Operating Cost [line items] | |||||
Goodwill impairment | £ 35.9 |
Costs of services and general_6
Costs of services and general and administrative costs - Auditor's Remuneration (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Information About Operating Cost [line items] | |||
Other services pursuant to legislation | £ 4.2 | £ 4 | £ 3.7 |
Fees payable to the auditors pursuant to legislation | 27.3 | 26.1 | 24.5 |
Total non-audit fees | 4.8 | 4.8 | 8.7 |
Total fees | 32.1 | 30.9 | 33.2 |
Advisory services [member] | |||
Disclosure Of Information About Operating Cost [line items] | |||
Auditors' remuneration for tax services | 0.1 | 1.6 | |
Compliance services [member] | |||
Disclosure Of Information About Operating Cost [line items] | |||
Auditors' remuneration for tax services | 0.1 | 0.1 | 1.3 |
Corporate finance services [member] | |||
Disclosure Of Information About Operating Cost [line items] | |||
Other services pursuant to legislation | 0.1 | ||
Other services [member] | |||
Disclosure Of Information About Operating Cost [line items] | |||
Other services pursuant to legislation | 4.7 | 4.6 | 5.7 |
WPP plc [member] | |||
Disclosure Of Information About Operating Cost [line items] | |||
Auditors' remuneration for audit services | 1.4 | 1.4 | 1.4 |
Subsidiaries [member] | |||
Disclosure Of Information About Operating Cost [line items] | |||
Auditors' remuneration for audit services | £ 21.7 | £ 20.7 | £ 19.4 |
Costs of services and general_7
Costs of services and general and administrative costs - Summary of Operating Lease (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Information About Operating Cost [line items] | |||
Operating lease rentals, net of sublease income | £ 570.5 | £ 580.6 | £ 555.1 |
Land and buildings [member] | |||
Disclosure Of Information About Operating Cost [line items] | |||
Land and buildings | 585.3 | 586.6 | 556.1 |
Sublease income | (25.4) | (17.9) | (11.6) |
Operating lease rentals, net of sublease income | 559.9 | 568.7 | 544.5 |
Plant and machinery [member] | |||
Disclosure Of Information About Operating Cost [line items] | |||
Land and buildings | £ 10.6 | £ 11.9 | £ 10.6 |
Costs of services and general_8
Costs of services and general and administrative costs - Minimum Committed Annual Rentals (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | £ 4,262.6 | ||
Within one year [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | 612.4 | ||
Over five years [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | 2,074.1 | ||
Plant and machinery [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | 16 | £ 14.5 | |
Plant and machinery [member] | Entering into significant commitments or contingent liabilities [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | £ 23.2 | ||
Plant and machinery [member] | Within one year [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | 5.1 | 4 | |
Plant and machinery [member] | Within one year [member] | Entering into significant commitments or contingent liabilities [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | 3.6 | ||
Plant and machinery [member] | Later than two years and not later than five years [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | 10.8 | 10.5 | |
Plant and machinery [member] | Later than two years and not later than five years [member] | Entering into significant commitments or contingent liabilities [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | 19.2 | ||
Plant and machinery [member] | Over five years [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | 0.1 | ||
Plant and machinery [member] | Over five years [member] | Entering into significant commitments or contingent liabilities [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | 0.4 | ||
Land and buildings [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | 532.6 | 560 | |
Land and buildings [member] | Entering into significant commitments or contingent liabilities [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | 589.2 | ||
Land and buildings [member] | Within one year [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | 88.6 | 85.1 | |
Land and buildings [member] | Within one year [member] | Entering into significant commitments or contingent liabilities [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | 70.2 | ||
Land and buildings [member] | Later than two years and not later than five years [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | 236.2 | 287.9 | |
Land and buildings [member] | Later than two years and not later than five years [member] | Entering into significant commitments or contingent liabilities [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | 272.7 | ||
Land and buildings [member] | Over five years [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | £ 207.8 | £ 187 | |
Land and buildings [member] | Over five years [member] | Entering into significant commitments or contingent liabilities [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Amounts payable | £ 246.3 |
Costs of services and general_9
Costs of services and general and administrative costs - Minimum Annual Amounts Payable Under All Lease Commitments (Detail) £ in Millions | Dec. 31, 2018GBP (£) |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum gross rental payments | £ 4,262.6 |
Less lease related costs | (602.9) |
Minimum net rental payments | 3,659.7 |
Less sub-let rentals | (31.5) |
Net payment | 3,628.2 |
Within one year [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum gross rental payments | 612.4 |
Less lease related costs | (54.2) |
Minimum net rental payments | 558.2 |
Less sub-let rentals | (11.5) |
Net payment | 546.7 |
Between one and two years [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum gross rental payments | 475 |
Less lease related costs | (51) |
Minimum net rental payments | 424 |
Less sub-let rentals | (6.4) |
Net payment | 417.6 |
Between two and three years [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum gross rental payments | 415.3 |
Less lease related costs | (47.3) |
Minimum net rental payments | 368 |
Less sub-let rentals | (4.9) |
Net payment | 363.1 |
Between three and four years [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum gross rental payments | 362.4 |
Less lease related costs | (44.8) |
Minimum net rental payments | 317.6 |
Less sub-let rentals | (4.3) |
Net payment | 313.3 |
Between four and five years [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum gross rental payments | 323.4 |
Less lease related costs | (43.1) |
Minimum net rental payments | 280.3 |
Less sub-let rentals | (3.1) |
Net payment | 277.2 |
Over five years [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum gross rental payments | 2,074.1 |
Less lease related costs | (362.5) |
Minimum net rental payments | 1,711.6 |
Less sub-let rentals | (1.3) |
Net payment | £ 1,710.3 |
Share of results of associate_2
Share of results of associates - Summary of Share of Results of Associates (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure of associates [abstract] | |||||
Share of profit before interest and taxation | £ 123.8 | £ 145.1 | £ 97.1 | ||
Share of exceptional (losses)/gains | (41.7) | 0.8 | (15.2) | ||
Share of interest and non-controlling interests | (9.7) | (7.8) | (4.7) | ||
Share of taxation | (28.9) | (24.6) | (27.4) | ||
Share of profit loss of associates accounted for using equity method | £ 43.5 | £ 113.5 | [1] | £ 49.8 | [1] |
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Our people - Additional Informa
Our people - Additional Information (Detail) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018GBP (£)Employees | Dec. 31, 2017GBP (£)Employees | Dec. 31, 2016GBP (£)Employees | |
Disclosure of our people [line items] | |||
Average number of staff | Employees | 133,903 | 134,428 | 132,657 |
Staff numbers at the end of period | Employees | 134,281 | 134,413 | 134,341 |
Share-based incentive plans in respect of key management personnel | £ 2 | £ 12.3 | £ 15.5 |
Total compensation received by key management personnel | 6.2 | 17.8 | 57.5 |
Compensation received by key management personnel in the form of pension contributions | £ 0.4 | £ 0.7 | £ 0.7 |
Leadership Equity Acquisition Plan III [member] | |||
Disclosure of our people [line items] | |||
LEAP awards vesting performance period | 5 years | 5 years | 5 years |
Our people - Geographical Distr
Our people - Geographical Distribution of staff (Detail) - Employees | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of geographical areas [line items] | |||
Average number of staff | 133,903 | 134,428 | 132,657 |
North America [member] | |||
Disclosure of geographical areas [line items] | |||
Average number of staff | 25,990 | 27,399 | 27,246 |
United Kingdom [member] | |||
Disclosure of geographical areas [line items] | |||
Average number of staff | 14,331 | 14,197 | 14,070 |
Western Continental Europe [member] | |||
Disclosure of geographical areas [line items] | |||
Average number of staff | 26,825 | 25,700 | 24,996 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | |||
Disclosure of geographical areas [line items] | |||
Average number of staff | 66,757 | 67,132 | 66,345 |
Our people - Reportable Segment
Our people - Reportable Segment Distribution of Staff (Detail) - Employees | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of operating segments [line items] | |||
Average number of staff | 133,903 | 134,428 | 132,657 |
Advertising and media investment management [member] | |||
Disclosure of operating segments [line items] | |||
Average number of staff | 55,421 | 56,789 | 55,120 |
Data investment management [member] | |||
Disclosure of operating segments [line items] | |||
Average number of staff | 28,309 | 28,629 | 29,279 |
Public relations & public affairs [member] | |||
Disclosure of operating segments [line items] | |||
Average number of staff | 9,048 | 9,082 | 9,054 |
Brand consulting, health & wellness and specialist communications [member] | |||
Disclosure of operating segments [line items] | |||
Average number of staff | 41,125 | 39,928 | 39,204 |
Our people - Staffing Costs (De
Our people - Staffing Costs (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Classes of employee benefits expense [abstract] | |||||
Wages and salaries | £ 5,710 | £ 5,832.3 | £ 5,395.6 | ||
Cash-based incentive plans | 240.7 | 219.2 | 260.2 | ||
Share-based incentive plans (note 21) | 84.8 | 105 | 106.5 | ||
Social security costs | 717.5 | 720.3 | 658.1 | ||
Pension costs (note 22) | 191.2 | 192 | 178.1 | ||
Severance | 37.5 | 39.5 | 34.5 | ||
Other staff costs | 1,190.9 | 1,210.7 | 1,151.9 | ||
Staffing costs | £ 8,172.6 | £ 8,319 | [1] | £ 7,784.9 | [1] |
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Finance income, finance costs_3
Finance income, finance costs and revaluation of financial instruments - Summary of Finance Income, Finance Costs and Revaluation of Financial Instruments (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Analysis of income and expense [abstract] | |||||
Income from equity investments | £ 15.4 | £ 16.8 | £ 12.5 | ||
Interest income | 89.4 | 78.4 | 67.9 | ||
Finance income | 104.8 | 95.2 | [1] | 80.4 | [1] |
Net interest expense on pension plans | 4.4 | 6.3 | 6.7 | ||
Interest on other long-term employee benefits | 4 | 3.9 | 2.7 | ||
Interest expense and similar charges | 280.9 | 259.6 | 245.1 | ||
Finance costs | 289.3 | 269.8 | [1] | 254.5 | [1] |
Movements in fair value of treasury instruments | (12.4) | 1.1 | (19.5) | ||
Revaluation of investments held at fair value through profit or loss | 68.2 | ||||
Revaluation of put options over non-controlling interests | 34.5 | 52.5 | (17.2) | ||
Revaluation of payments due to vendors (earnout agreements) | 82.6 | 208.6 | (11.6) | ||
Revaluation of financial instruments | £ 172.9 | £ 262.2 | £ (48.3) | ||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Finance income, finance costs_4
Finance income, finance costs and revaluation of financial instruments - Additional Information (Detail) € in Millions, £ in Millions, $ in Millions, $ in Millions | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018AUD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017AUD ($) |
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | £ | £ 6,217.9 | £ 6,481.3 | |||||
US revolving credit facilities [member] | Weighted average [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ 125 | $ 715 | |||||
Average interest rate | 0.96% | 0.96% | 0.96% | 0.96% | 0.78% | 0.78% | 0.78% |
US commercial paper [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ 0 | ||||||
US commercial paper [member] | Weighted average [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ 540 | $ 860 | |||||
Average interest rate | 2.28% | 2.28% | 2.28% | 2.28% | 1.47% | 1.47% | 1.47% |
Australian New Zealand revolving credit facilities [member] | Weighted average [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ 439 | $ 412 | |||||
Average interest rate | 3.27% | 3.27% | 3.27% | 3.27% | 3.24% | 3.24% | 3.24% |
US Dollar bonds [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ 2,784 | ||||||
Average interest rate | 4.46% | 4.46% | 4.46% | 4.46% | |||
Eurobonds [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | € | € 3,700 | ||||||
Average interest rate | 1.64% | 1.64% | 1.64% | 1.64% | |||
Sterling bonds [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | £ | £ 600 | ||||||
Average interest rate | 4.04% | 4.04% | 4.04% | 4.04% |
Taxation - Additional Informati
Taxation - Additional Information (Detail) - GBP (£) £ in Millions | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Income Taxes [line items] | ||||
Effective tax rate on profit before taxation | 22.10% | 9.30% | 20.60% | |
Tax rate | 19.00% | 19.25% | 20.00% | |
Tax Cuts and Jobs Act revalued deferred tax assets and liabilities | £ 234.1 | |||
Tax Cuts and Jobs Act deemed repatriation tax charge related to unremitted foreign earnings | £ 7.3 | £ (28.1) | ||
Tax Cuts and Jobs Act payable period | 8 years | |||
United States [member] | ||||
Disclosure Of Income Taxes [line items] | ||||
Tax rate | 35.00% | |||
United States [member] | Changes in tax rates or tax laws enacted or announced [member] | ||||
Disclosure Of Income Taxes [line items] | ||||
Tax rate | 21.00% |
Taxation - Tax Charge (Detail)
Taxation - Tax Charge (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Corporation tax | |||||
Current year | £ 481.9 | £ 523.4 | £ 569.4 | ||
Prior years | (111.8) | (98.6) | (80.3) | ||
Corporation tax | 370.1 | 424.8 | 489.1 | ||
Deferred tax | |||||
Current year | (49) | (235.2) | (88) | ||
Prior years | 2.8 | 7.4 | (12.2) | ||
Deferred tax | (46.2) | (227.8) | (100.2) | ||
Tax charge | £ 323.9 | £ 197 | [1] | £ 388.9 | [1] |
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Taxation - Tax Charge Reconcile
Taxation - Tax Charge Reconciled to Profit Before Taxation (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||||
Profit before taxation | £ 1,463.3 | £ 2,109.3 | [1] | £ 1,890.5 | [1] |
Tax at the corporation tax rate of 19.0% | 278 | 406 | 378.1 | ||
Tax effect of share of results of associates | (8.3) | (21.8) | (10) | ||
Irrecoverable withholding taxes | 55.9 | 37 | 36.3 | ||
Items that are not deductible/(taxable) in determining taxable profit | 28.7 | (3.9) | 9.4 | ||
Effect of different tax rates in subsidiaries operating in other jurisdictions | 90.2 | 140.3 | 60.4 | ||
US Transition Tax related to unremitted foreign earnings | (7.3) | 28.1 | |||
Effect of change in US tax rate on deferred tax balances | (234.1) | ||||
Origination and reversal of unrecognised temporary differences | 7.5 | (17.2) | (4.3) | ||
Tax losses not recognised or utilised in the year | 22.3 | 32.5 | 52.2 | ||
Utilisation of tax losses not previously recognised | (25.6) | (10.4) | (11.3) | ||
Recognition of temporary differences not previously recognised | (8.4) | (68.3) | (29.4) | ||
Net release of prior year provisions in relation to acquired businesses | (20.4) | (15) | (23.3) | ||
Other prior year adjustments | (88.7) | (76.2) | (69.2) | ||
Tax charge | £ 323.9 | £ 197 | [1] | £ 388.9 | [1] |
Effective tax rate on profit before tax | 22.10% | 9.30% | 20.60% | ||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Taxation - Tax Charge Reconci_2
Taxation - Tax Charge Reconciled to Profit Before Taxation (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
UK corporation tax rate | 19.00% | 19.25% | 20.00% |
Ordinary dividends - Summary of
Ordinary dividends - Summary of Ordinary Dividends (Detail) - GBP (£) £ / shares in Units, £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Dividends [line items] | |||
Amounts recognised as distributions to equity holders, per share | £ 0.6000 | £ 0.5975 | £ 0.4833 |
Amounts recognised as distributions to equity holders | £ 747.4 | £ 751.5 | £ 616.5 |
Proposed final dividend, per share | £ 0.3730 | £ 0.3730 | £ 0.3705 |
Previous period final amount [member] | |||
Disclosure of Dividends [line items] | |||
Amounts recognised as distributions to equity holders, per share | £ 0.3730 | £ 0.3705 | £ 0.2878 |
Amounts recognised as distributions to equity holders | £ 464.6 | £ 467.2 | £ 368.5 |
Interim period amount [member] | |||
Disclosure of Dividends [line items] | |||
Amounts recognised as distributions to equity holders, per share | £ 0.2270 | £ 0.2270 | £ 0.1955 |
Amounts recognised as distributions to equity holders | £ 282.8 | £ 284.3 | £ 248 |
Earnings per share - Calculatio
Earnings per share - Calculation of Basic and Diluted EPS (Detail) - GBP (£) £ / shares in Units, £ in Millions, shares in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Earnings per share [abstract] | |||||
Earnings | £ 1,062.9 | £ 1,816.6 | £ 1,400.1 | ||
Average shares used in basic EPS calculation | 1,247.8 | 1,261.1 | 1,277.8 | ||
EPS | £ 0.852 | £ 1.440 | [1] | £ 1.096 | [1] |
Diluted earnings | £ 1,062.9 | £ 1,816.6 | £ 1,400.1 | ||
Average shares used in diluted EPS calculation | 1,261.2 | 1,275.8 | 1,296 | ||
Diluted EPS | £ 0.843 | £ 1.424 | [1] | £ 1.080 | [1] |
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Earnings per share - Additional
Earnings per share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per share [line items] | |||
Shares excluded from the computation of diluted earnings per share | 16,900,000 | 8,200,000 | 8,400,000 |
Ordinary shares [member] | |||
Earnings per share [line items] | |||
Ordinary shares in issue | 1,332,678,227 | 1,332,511,552 | 1,331,880,730 |
Earnings per share - Reconcilia
Earnings per share - Reconciliation Between Shares Used in Calculating Basic and Diluted EPS (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per share [abstract] | |||
Average shares used in basic EPS calculation | 1,247.8 | 1,261.1 | 1,277.8 |
Dilutive share options outstanding | 1.6 | 1.8 | 2.4 |
Other potentially issuable shares | 11.8 | 12.9 | 15.8 |
Shares used in diluted EPS calculation | 1,261.2 | 1,275.8 | 1,296 |
Sources of finance - Summary of
Sources of finance - Summary of Equity and Debt Financing (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Analysis of changes in financing | |||||
Beginning balance | £ 9,956.1 | [1] | £ 9,761.7 | £ 8,009.9 | |
Ordinary shares issued | 1.2 | 6.4 | 27.2 | ||
End of year | 9,806.6 | 9,956.1 | [1] | 9,761.7 | |
Analysis of changes in financing | |||||
Beginning of year | 6,481.3 | ||||
Net (decrease)/increase in drawings on bank loans and corporate bonds | (440.6) | 599.6 | (22.5) | ||
End of year | 6,217.9 | 6,481.3 | |||
Debt financing [member] | |||||
Analysis of changes in financing | |||||
Beginning of year | 6,481.3 | 6,033.1 | |||
Net (decrease)/increase in drawings on bank loans and corporate bonds | (440.6) | 599.6 | |||
Amortisation of financing costs included in debt | 7.7 | 8 | |||
Other movements | (10.1) | (6.9) | |||
Exchange adjustments | 179.6 | (152.5) | |||
End of year | 6,217.9 | 6,481.3 | 6,033.1 | ||
Issued capital and share premium [member] | |||||
Analysis of changes in financing | |||||
Beginning balance | 701.8 | 695.4 | |||
Ordinary shares issued | 1.2 | 6.4 | |||
End of year | £ 703 | £ 701.8 | £ 695.4 | ||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Sources of finance - Additional
Sources of finance - Additional Information (Detail) € in Millions, £ in Millions, $ in Millions, $ in Millions | Mar. 27, 2019GBP (£) | Mar. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Mar. 15, 2019USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018AUD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | Dec. 31, 2015GBP (£) | |
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total equity | £ | £ 9,806.6 | £ 9,956.1 | [1] | £ 9,761.7 | £ 8,009.9 | ||||||||
Total committed facilities available | £ | 8,357.6 | ||||||||||||
Undrawn committed credit facility | £ | 2,074.7 | 1,163.8 | |||||||||||
Borrowings | £ | 6,217.9 | 6,481.3 | |||||||||||
Issued capital and share premium [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total equity | £ | 703 | £ 701.8 | £ 695.4 | ||||||||||
US$ bonds due November 2021 [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | $ 812 | £ 637.4 | |||||||||||
Bonds interest rate | 4.75% | 4.75% | 4.75% | 4.75% | |||||||||
US$ bonds due September 2022 [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | $ 500 | £ 392.3 | |||||||||||
Bonds interest rate | 3.625% | 3.625% | 3.625% | 3.625% | |||||||||
US$ bonds due September 2024 [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | $ 750 | £ 588.4 | |||||||||||
Bonds interest rate | 3.75% | 3.75% | 3.75% | 3.75% | |||||||||
US$ bonds due September 2042 [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | $ 272 | £ 213.1 | |||||||||||
Bonds interest rate | 5.125% | 5.125% | 5.125% | 5.125% | |||||||||
Repayment of bonds | $ 28 | ||||||||||||
US$ bonds due November 2043 [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | $ 450 | £ 353.3 | |||||||||||
Bonds interest rate | 5.625% | 5.625% | 5.625% | 5.625% | |||||||||
Eurobonds (3m EURIBOR + 0.32%) due May 2020 [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | € 250 | £ 224.6 | |||||||||||
Floating basis | 3m EURIBOR | ||||||||||||
Adjustment to floating basis | 0.32% | 0.32% | 0.32% | 0.32% | |||||||||
Euro bonds due November 2019 [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | € 600 | £ 539.1 | |||||||||||
Bonds interest rate | 0.75% | 0.75% | 0.75% | 0.75% | |||||||||
Euro bonds due November 2023 [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | € 750 | £ 673.9 | |||||||||||
Bonds interest rate | 3.00% | 3.00% | 3.00% | 3.00% | |||||||||
Euro bonds due September 2026 [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | € 750 | £ 673.9 | |||||||||||
Bonds interest rate | 2.25% | 2.25% | 2.25% | 2.25% | |||||||||
Euro bonds due March 2030 [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | € 600 | £ 539.1 | |||||||||||
Bonds interest rate | 1.625% | 1.625% | 1.625% | 1.625% | |||||||||
Eurobonds Due March 2025 [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | € | € 500 | ||||||||||||
Bonds interest rate | 1.375% | ||||||||||||
Eurobonds Due March 2022 [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | € | € 250 | ||||||||||||
Bonds interest rate | 0.45% | ||||||||||||
Floating basis | 3m EURIBOR | ||||||||||||
Sterling bonds due November 2020 [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | £ | £ 200 | ||||||||||||
Bonds interest rate | 6.375% | 6.375% | 6.375% | 6.375% | |||||||||
Sterling bonds due November 2020 [member] | Early Redemption [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bonds interest rate | 6.375% | ||||||||||||
Repayment of bonds | £ | £ 200 | ||||||||||||
Sterling bonds due September 2046 [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | £ | £ 400 | ||||||||||||
Bonds interest rate | 2.875% | 2.875% | 2.875% | 2.875% | |||||||||
US revolving credit facilities [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | $ 2,500 | £ 1,961.4 | |||||||||||
US revolving credit facilities [member] | Weighted average [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bonds interest rate | 0.96% | 0.96% | 0.96% | 0.96% | 0.78% | 0.78% | |||||||
Borrowings | $ 125 | $ 715 | |||||||||||
US revolving credit facilities [member] | Weighted average [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Borrowings averaged equivalent | 125 | ||||||||||||
Australian revolving credit facilities due 2019 [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | $ 150 | ||||||||||||
Australian revolving credit facilities due 2021 [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | 370 | ||||||||||||
Australian New Zealand revolving credit facilities [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Borrowings averaged equivalent | $ 439 | ||||||||||||
US Revolving Credit Facilities March 2024 [member] | Borrowings and financing [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total committed facilities available | $ 2,500 | ||||||||||||
US commercial paper [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Borrowings | $ 0 | ||||||||||||
US commercial paper [member] | Weighted average [member] | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bonds interest rate | 2.28% | 2.28% | 2.28% | 2.28% | 1.47% | 1.47% | |||||||
Borrowings | $ 540 | $ 860 | |||||||||||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Sources of finance - Analysis o
Sources of finance - Analysis of Future Anticipated Cash Flows Related to Debt (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | £ (8,453.3) | £ (8,810.3) |
Effect of discounting/financing rates | 1,793.4 | 1,935.8 |
Debt financing | (6,659.9) | (6,874.5) |
Within one year [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Debt financing | (1,025.1) | (624.1) |
Between one and two years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Debt financing | (423.8) | (727.6) |
Between two and three years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Debt financing | (761) | (421) |
Between three and four years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Debt financing | (609.8) | (1,384.2) |
Between four and five years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Debt financing | (670.1) | (356.6) |
Over five years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Debt financing | (3,170.1) | (3,361) |
Borrowings [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | (8,011.3) | (8,417.1) |
Borrowings [member] | Within one year [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | (748.4) | (391.7) |
Borrowings [member] | Between one and two years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | (596.8) | (896.3) |
Borrowings [member] | Between two and three years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | (937.1) | (584.3) |
Borrowings [member] | Between three and four years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | (742.5) | (1,537.8) |
Borrowings [member] | Between four and five years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | (786.8) | (487.9) |
Borrowings [member] | Over five years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | (4,199.7) | (4,519.1) |
Bank overdrafts [member] | Within one year [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | £ (442) | £ (393.2) |
Sources of finance - Analysis_2
Sources of finance - Analysis of Fixed and Floating Rate Debt by Currency (Detail) € in Millions, £ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018EUR (€) | Dec. 31, 2017GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | |
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings | £ 6,481.3 | £ 6,217.9 | ||
US Dollar bonds [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings | $ | $ 2,784 | |||
US Dollar bonds [member] | Fixed interest rate [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings | £ 1,146.1 | £ 1,154.8 | ||
Fixed rate | 4.58% | 4.62% | 4.58% | 4.58% |
Period (months) | 181 months | 199 months | ||
US Dollar bonds [member] | Floating interest rate [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings | £ 1,760.9 | £ 1,029.6 | ||
Floating basis | LIBOR | LIBOR | ||
Sterling bonds [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings | 600 | |||
Sterling bonds [member] | Fixed interest rate [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings | £ 600 | £ 1,044.1 | ||
Fixed rate | 3.43% | 4.04% | 3.43% | 3.43% |
Period (months) | 232 months | 245 months | ||
Eurobonds [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings | € | € 3,700 | |||
Eurobonds [member] | Fixed interest rate [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings | £ 2,623.9 | £ 2,425.9 | ||
Fixed rate | 1.99% | 1.85% | 1.99% | 1.99% |
Period (months) | 75 months | 80 months | ||
Eurobonds [member] | Floating interest rate [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings | £ 222.2 | £ 449.2 | ||
Floating basis | EURIBOR | EURIBOR | ||
Other bonds [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings | £ 128.2 | £ 114.3 |
Sources of finance - Analysis_3
Sources of finance - Analysis of Future Anticipated Cash Flows Related of Financial Derivatives (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Trade and Other Payable [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | £ 1,376.2 | £ 683.9 |
Future anticipated cash flows, Financial assets | 632.5 | 1,053.5 |
Trade and Other Payable [member] | Within one year [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 229.3 | 97.8 |
Future anticipated cash flows, Financial assets | 124.6 | 123.7 |
Trade and Other Payable [member] | Between one and two years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 50 | 21.4 |
Future anticipated cash flows, Financial assets | 11.8 | 38.6 |
Trade and Other Payable [member] | Between two and three years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 688.4 | 20.5 |
Future anticipated cash flows, Financial assets | 11.5 | 39.5 |
Trade and Other Payable [member] | Between three and four years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 408.5 | 20.7 |
Future anticipated cash flows, Financial assets | 11.6 | 851.7 |
Trade and Other Payable [member] | Between four and five years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 523.5 | |
Future anticipated cash flows, Financial assets | 11.6 | |
Trade and Other Payable [member] | Over five years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial assets | 461.4 | |
Trade and other receivable [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 1,359.1 | 675.3 |
Future anticipated cash flows, Financial assets | 644.8 | 1,057.2 |
Trade and other receivable [member] | Within one year [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 221.9 | 96.7 |
Future anticipated cash flows, Financial assets | 120.6 | 128.8 |
Trade and other receivable [member] | Between one and two years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 45.3 | 20.1 |
Future anticipated cash flows, Financial assets | 6.5 | 38.8 |
Trade and other receivable [member] | Between two and three years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 685.3 | 18.8 |
Future anticipated cash flows, Financial assets | 6.4 | 38.6 |
Trade and other receivable [member] | Between three and four years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 406.6 | 18.6 |
Future anticipated cash flows, Financial assets | 6.5 | 851 |
Trade and other receivable [member] | Between four and five years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | £ 521.1 | |
Future anticipated cash flows, Financial assets | 6.6 | |
Trade and other receivable [member] | Over five years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial assets | £ 498.2 |
Analysis of cash flows - Summar
Analysis of cash flows - Summary of Analysis of Cash Flows (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Disclosure Of Cash Flow Statement [line items] | ||||||
Profit for the year | £ 1,139.4 | £ 1,912.3 | [1] | £ 1,501.6 | [1] | |
Taxation | 323.9 | 197 | 388.9 | |||
Revaluation of financial instruments | (172.9) | (262.2) | [1] | 48.3 | [1] | |
Finance costs | 289.3 | 269.8 | 254.5 | |||
Finance income | (104.8) | (95.2) | (80.4) | |||
Share of results of associates | (43.5) | (113.5) | (49.8) | |||
Non-cash share-based incentive plans (including share options) | 84.8 | 105 | 106.5 | |||
Depreciation of property, plant and equipment | 225.1 | 230.7 | 220.8 | |||
Impairment of goodwill | 183.9 | 27.1 | 27 | |||
Amortisation and impairment of acquired intangible assets | 280 | 195.1 | 168.4 | |||
Amortisation of other intangible assets | 38.7 | 36.3 | 38.6 | |||
Investment write-downs | 2 | 95.9 | 86.1 | |||
Gains on disposal of investments and subsidiaries | (235.5) | (129) | (44.3) | |||
(Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership | (2) | 0.3 | (232.4) | |||
Losses on sale of property, plant and equipment | 0.6 | 1.1 | 0.8 | |||
Increase in trade receivables and accrued income | (298.9) | (90.4) | (70.4) | |||
Increase/(decrease) in trade payables and deferred income | 500.9 | (170.8) | 188.7 | |||
(Increase)/decrease in other receivables | (52.9) | (110.6) | 77.4 | |||
Decrease in other payables - short-term | (31.8) | (122.8) | (303.7) | |||
Increase in other payables - long-term | 0.4 | 20.1 | 4.5 | |||
Increase/(decrease) in provisions | 48 | (57.3) | (47.8) | |||
Corporation and overseas tax paid | (383.6) | (424.7) | (414.2) | |||
Interest and similar charges paid | (252.8) | (246.6) | (242.1) | |||
Interest received | 90.4 | 76.9 | 73.9 | |||
Investment income | 15.4 | 16.8 | 12.5 | |||
Dividends from associates | 49.7 | 46.8 | 60.4 | |||
Net cash inflow from operating activities | 1,693.8 | 1,408.1 | 1,773.8 | |||
Acquisitions and disposals: | ||||||
Initial cash consideration | (126.7) | (214.8) | (424.1) | |||
Cash and cash equivalents acquired (net) | (3.8) | 28.9 | 57.3 | |||
Earnout payments | (120.2) | (199.1) | (92.3) | |||
Purchase of other investments (including associates) | (48.1) | (92.5) | (260.2) | |||
Acquisitions | (298.8) | (477.5) | (719.3) | |||
Proceeds on disposal of investments and subsidiaries | 849 | 296 | 80.5 | |||
Acquisitions and disposals | 550.2 | (181.5) | (638.8) | |||
Cash consideration for non-controlling interests | (109.9) | (47.3) | (58.3) | |||
Net cash inflow/(outflow) | 440.3 | (228.8) | (697.1) | |||
Share repurchases and buy-backs: | ||||||
Purchase of own shares by ESOP Trusts | (102.8) | (214.6) | (152.9) | |||
Shares purchased into treasury | (104.3) | (289.6) | (274.5) | |||
Net cash outflow | (207.1) | (504.2) | (427.4) | |||
Net increase/(decrease) in borrowings: | ||||||
(Decrease)/increase in drawings on bank loans | (819.3) | 785.6 | (30.4) | |||
Net cash (outflow)/inflow | (440.6) | 599.6 | (22.5) | |||
Cash and cash equivalents: | ||||||
Cash at bank and in hand | 2,010.8 | 2,049.6 | 2,256.2 | |||
Short-term bank deposits | 632.4 | 341.8 | 180.7 | |||
Overdrafts | (442) | (393.2) | (534.3) | |||
Cash and cash equivalents | 2,201.2 | 1,998.2 | 1,902.6 | £ 1,946.6 | ||
Proceeds from issue of EURO 250 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Proceeds from issues of bonds | 218.8 | 214 | ||||
Proceeds from issue of EURO 500 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Proceeds from issues of bonds | 438 | |||||
Repayment of EURO 252 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Repayment of bonds | (220) | |||||
Partial repayment of USD 300 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Repayment of bonds | (20.8) | |||||
Partial repayment of USD 500 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Repayment of bonds | £ (37.3) | |||||
Repayment of GBP 400 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Repayment of bonds | £ (400) | |||||
Proceeds from issue of GBP 400 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Proceeds from issues of bonds | 400 | |||||
Repayment of EUR 498 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Repayment of bonds | £ (392.1) | |||||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Analysis of cash flows - Summ_2
Analysis of cash flows - Summary of Analysis of Cash Flows (Parenthetical) (Detail) - Dec. 31, 2018 | EUR (€) | USD ($) | GBP (£) |
Disclosure Of Cash Flow Statement [line items] | |||
Cash and cash equivalents acquired from acquisitions | £ 11,300,000 | ||
Cash and cash equivalents acquired from disposals | 15,100,000 | ||
Bond amount | 8,357,600,000 | ||
Proceeds from issue of EURO 250 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | € | € 250,000,000 | ||
Proceeds from issue of EURO 500 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | € | 500,000,000 | ||
Repayment of EURO 252 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | € | 252,000,000 | ||
Partial repayment of USD 300 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | $ | $ 300,000,000 | ||
Partial repayment of USD 500 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | $ | $ 500,000,000 | ||
Repayment of GBP 400 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | 400,000,000 | ||
Proceeds from issue of GBP 400 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | £ 400,000,000 | ||
Repayment of EUR 498 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | € | € 498,000,000 |
Intangible assets - Movement of
Intangible assets - Movement of Goodwill (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||||
Beginning balance | £ 12,952.9 | [1] | £ 13,214.3 | ||
Impairment losses for the year | 183.9 | 27.1 | £ 27 | ||
Ending balance | 13,202.8 | 12,952.9 | [1] | 13,214.3 | |
Cost [member] | |||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||
Beginning balance | 13,675.3 | 13,939.4 | |||
Additions | 154.4 | 301 | |||
Revision of earnout estimates | (68.3) | (60.7) | |||
Exchange adjustments | 368.1 | (504.4) | |||
Ending balance | 14,129.5 | 13,675.3 | 13,939.4 | ||
Accumulated impairment losses and write-downs [member] | |||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||
Beginning balance | 722.4 | 725.1 | |||
Impairment losses for the year | 183.9 | 27.1 | |||
Exchange adjustments | 20.4 | (29.8) | |||
Ending balance | £ 926.7 | £ 722.4 | £ 725.1 | ||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Intangible assets - Cash-genera
Intangible assets - Cash-generating Units with Significant Goodwill (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | £ 13,202.8 | £ 12,952.9 | [1] | £ 13,214.3 |
GroupM [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | 2,942.9 | 2,906.7 | ||
Kantar [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | 2,522.9 | 2,518.2 | ||
Wunderman [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | 1,581.2 | 1,514.5 | ||
VMLY&R [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | 930.4 | 1,091.8 | ||
Other [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | £ 5,225.4 | £ 4,921.7 | ||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Intangible assets - Movements o
Intangible assets - Movements of Other Intangible Assets (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | £ 2,018.4 | [1] | £ 2,217.3 | |
Charge for the year | 126.1 | 6 | ||
Ending balance | 1,842 | 2,018.4 | [1] | |
Cost [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 4,040.6 | 4,080.9 | ||
Additions | 60.4 | 37.3 | ||
Disposals | (38.2) | (15.8) | ||
New acquisitions | 40.3 | 79.8 | ||
Other movements | (4.5) | 13.6 | ||
Exchange adjustments | 81.5 | (155.2) | ||
Ending balance | 4,180.1 | 4,040.6 | ||
Amortisation and impairment [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 2,022.2 | 1,863.6 | ||
Charge for the year | 314.5 | 225.7 | ||
Disposals | (28) | (14.9) | ||
Other movements | (1.9) | 2.5 | ||
Exchange adjustments | 31.3 | (54.7) | ||
Ending balance | 2,338.1 | 2,022.2 | ||
Brands with an indefinite useful life [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 1,081.3 | 1,141.3 | ||
Ending balance | 1,132.8 | 1,081.3 | ||
Brands with an indefinite useful life [member] | Cost [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 1,081.3 | 1,141.3 | ||
Exchange adjustments | 51.5 | (60) | ||
Ending balance | 1,132.8 | 1,081.3 | ||
Acquired intangibles [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 829.1 | 972.5 | ||
Ending balance | 594.8 | 829.1 | ||
Acquired intangibles [member] | Cost [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 2,547.8 | 2,535.5 | ||
Disposals | (0.9) | |||
New acquisitions | 40.3 | 79 | ||
Other movements | 2.9 | 6.4 | ||
Exchange adjustments | 19.9 | (73.1) | ||
Ending balance | 2,610 | 2,547.8 | ||
Acquired intangibles [member] | Amortisation and impairment [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 1,718.7 | 1,563 | ||
Charge for the year | 275.8 | 189.4 | ||
Disposals | (0.7) | |||
Exchange adjustments | 21.4 | (33.7) | ||
Ending balance | 2,015.2 | 1,718.7 | ||
Other [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 108 | 103.5 | ||
Ending balance | 114.4 | 108 | ||
Other [member] | Cost [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 411.5 | 404.1 | ||
Additions | 60.4 | 37.3 | ||
Disposals | (37.3) | (15.8) | ||
New acquisitions | 0.8 | |||
Other movements | (7.4) | 7.2 | ||
Exchange adjustments | 10.1 | (22.1) | ||
Ending balance | 437.3 | 411.5 | ||
Other [member] | Amortisation and impairment [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 303.5 | 300.6 | ||
Charge for the year | 38.7 | 36.3 | ||
Disposals | (27.3) | (14.9) | ||
Other movements | (1.9) | 2.5 | ||
Exchange adjustments | 9.9 | (21) | ||
Ending balance | £ 322.9 | £ 303.5 | ||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Intangible assets - Additional
Intangible assets - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of detailed information about intangible assets [line items] | ||||
Other Intangible Assets | £ 1,842 | £ 2,018.4 | [1] | £ 2,217.3 |
Amortisation and impairment of acquired intangible assets | 280 | 195.1 | ||
Impairment charge on intangible assets | £ 126.1 | £ 6 | ||
Pre-tax discount rate | 9.00% | 8.50% | ||
Assumed annual long-term growth rate | 3.00% | 3.00% | ||
Goodwill impairment charge | £ 183.9 | £ 27.1 | 27 | |
Discount Rates [member] | VMLY&R [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Percentage of movement in discount rate | 0.10% | |||
Increase or decrease the impairment charge | £ 23 | |||
Terminal Growth Rate [member] | VMLY&R [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Increase or decrease the impairment charge | £ 19 | |||
Percentage Of Movement In Terminal growth rate | 0.10% | |||
Terminal margin [member] | VMLY&R [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Increase or decrease the impairment charge | £ 8 | |||
Percentage Of Movement In Terminal Margin | 0.10% | |||
VMLY&R [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Pre-tax discount rate | 8.70% | 8.50% | ||
Impairment loss recoverable amount | £ 1,327.3 | |||
Other business [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Goodwill impairment charge | 35.9 | |||
Advertising and media investment management [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment charge on intangible assets | 70.6 | |||
Goodwill impairment charge | 148 | £ 19.5 | 20.9 | |
Advertising and media investment management [member] | VMLY&R [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Goodwill impairment charge | 148 | |||
Data investment management [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment charge on intangible assets | 38.2 | |||
Goodwill impairment charge | 0.9 | |||
Brand consulting, health & wellness and specialist communications [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment charge on intangible assets | 17.3 | |||
Goodwill impairment charge | £ 35 | £ 6.1 | ||
Top of range [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Management forecasts for a projection period | Five years | |||
Associates [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Amortisation and impairment of acquired intangible assets | £ 4.2 | 5.7 | ||
Brand names [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Other Intangible Assets | 361.2 | 445.6 | ||
Impairment charge on intangible assets | 58.6 | |||
Customer-related intangibles [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Other Intangible Assets | 220.6 | 360.9 | ||
Other acquired intangible assets [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Other Intangible Assets | 13 | £ 22.6 | ||
Customer relationships [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment charge on intangible assets | £ 67.5 | |||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Property, plant and equipment -
Property, plant and equipment - Summary of Property, Plant and Equipment (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | £ 979.5 | [1] | £ 968.7 | ||
Charge for the year | 225.1 | 230.7 | £ 215.2 | ||
Ending balance | 1,083 | 979.5 | [1] | 968.7 | |
Cost [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 2,317.9 | 2,322 | |||
Additions | 314.8 | 288.9 | |||
New acquisitions | 3.1 | 5.5 | |||
Disposals | (255.7) | (142.6) | |||
Exchange adjustments | 60.6 | (155.9) | |||
Ending balance | 2,440.7 | 2,317.9 | 2,322 | ||
Depreciation [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 1,338.4 | 1,353.3 | |||
Charge for the year | 225.1 | 230.7 | |||
Disposals | (240.5) | (134.8) | |||
Exchange adjustments | 34.7 | (110.8) | |||
Ending balance | 1,357.7 | 1,338.4 | 1,353.3 | ||
Land [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 37.1 | 37.1 | |||
Ending balance | 37.1 | 37.1 | 37.1 | ||
Land [member] | Cost [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 37.1 | 37.1 | |||
Ending balance | 37.1 | 37.1 | 37.1 | ||
Freehold buildings [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 90.3 | 101.2 | |||
Ending balance | 108.4 | 90.3 | 101.2 | ||
Freehold buildings [member] | Cost [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 118.8 | 126.4 | |||
Additions | 17.7 | 4.3 | |||
New acquisitions | 0.1 | ||||
Disposals | (1.2) | ||||
Exchange adjustments | (1.1) | (10.7) | |||
Ending balance | 135.5 | 118.8 | 126.4 | ||
Freehold buildings [member] | Depreciation [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 28.5 | 25.2 | |||
Charge for the year | 3.1 | 6.9 | |||
Disposals | (1.9) | ||||
Exchange adjustments | (4.5) | (1.7) | |||
Ending balance | 27.1 | 28.5 | 25.2 | ||
Leasehold buildings [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 555.7 | 502.7 | |||
Ending balance | 635.1 | 555.7 | 502.7 | ||
Leasehold buildings [member] | Cost [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 1,081.8 | 1,012.5 | |||
Additions | 161.4 | 165 | |||
New acquisitions | 0.9 | 2 | |||
Disposals | (83.5) | (46.1) | |||
Exchange adjustments | 41.8 | (51.6) | |||
Ending balance | 1,202.4 | 1,081.8 | 1,012.5 | ||
Leasehold buildings [member] | Depreciation [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 526.1 | 509.8 | |||
Charge for the year | 91.5 | 86.7 | |||
Disposals | (74.6) | (42.6) | |||
Exchange adjustments | 24.3 | (27.8) | |||
Ending balance | 567.3 | 526.1 | 509.8 | ||
Fixtures, fittings and equipment [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 140.3 | 162.6 | |||
Ending balance | 145.6 | 140.3 | 162.6 | ||
Fixtures, fittings and equipment [member] | Cost [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 377.2 | 402.6 | |||
Additions | 49.9 | 31.7 | |||
New acquisitions | 1.2 | 2.4 | |||
Disposals | (62.9) | (40.7) | |||
Exchange adjustments | 9.9 | (18.8) | |||
Ending balance | 375.3 | 377.2 | 402.6 | ||
Fixtures, fittings and equipment [member] | Depreciation [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 236.9 | 240 | |||
Charge for the year | 44.4 | 47 | |||
Disposals | (58) | (35.9) | |||
Exchange adjustments | 6.4 | (14.2) | |||
Ending balance | 229.7 | 236.9 | 240 | ||
Computer equipment [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 156.1 | 165.1 | |||
Ending balance | 156.8 | 156.1 | 165.1 | ||
Computer equipment [member] | Cost [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 703 | 743.4 | |||
Additions | 85.8 | 87.9 | |||
New acquisitions | 0.9 | 1.1 | |||
Disposals | (109.3) | (54.6) | |||
Exchange adjustments | 10 | (74.8) | |||
Ending balance | 690.4 | 703 | 743.4 | ||
Computer equipment [member] | Depreciation [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 546.9 | 578.3 | |||
Charge for the year | 86.1 | 90.1 | |||
Disposals | (107.9) | (54.4) | |||
Exchange adjustments | 8.5 | (67.1) | |||
Ending balance | £ 533.6 | £ 546.9 | £ 578.3 | ||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Property, plant and equipment_2
Property, plant and equipment - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, plant and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capital commitments contracted | £ 28.4 | £ 137.2 |
Interests in associates, join_3
Interests in associates, joint ventures and other investments - Movements in Associates, Joint Ventures and Other Investments (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Movements in interests in associates and joint ventures | ||||||
Beginning balance | £ 1,065.2 | [1] | £ 1,069.4 | |||
Additions | 16.7 | 34.5 | ||||
Share of results of associate undertakings (note 4) | 43.5 | 113.5 | [1] | £ 49.8 | [1] | |
Dividends | (49.7) | (46.8) | ||||
Other movements | 1.2 | 3.4 | ||||
Reclassification from other investments to associates | 0.3 | 57.1 | ||||
Exchange adjustments | 12.9 | (10.6) | ||||
Disposals | (304) | (139.1) | ||||
Reclassification to subsidiaries | 16.9 | (6.3) | ||||
Amortisation of other intangible assets | (4.2) | (5.7) | ||||
Write-downs | (2) | (4.2) | ||||
Ending balance | 796.8 | 1,065.2 | [1] | 1,069.4 | ||
Movements in interests in other investments | ||||||
Beginning balance | 1,153.5 | [1] | 1,310.3 | |||
Additions | 35 | 67.7 | ||||
Reclassification from other investments to associates | (0.3) | (57.1) | ||||
Exchange adjustments | (106.1) | |||||
Disposals | (341.7) | (1.7) | ||||
Revaluation of other investments | 32.1 | |||||
Revaluation of other investments through profit or loss | 68.1 | |||||
Write-downs | (91.7) | |||||
Revaluation of other investments through other comprehensive income | (247.9) | |||||
Ending balance | £ 666.7 | £ 1,153.5 | [1] | £ 1,310.3 | ||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Interests in associates, join_4
Interests in associates, joint ventures and other investments - Principal Associates and Joint Ventures (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Barrows Design and Manufacturing (Pty) Limited [member] | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, Country of incorporation | South Africa |
Associate, % owned | 35.00% |
Chime Communications Ltd [member] | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, Country of incorporation | UK |
Associate, % owned | 24.90% |
CVSC Sofres Media Co Limited [member] | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, Country of incorporation | China |
Associate, % owned | 40.00% |
Dat Viet VAC Media Corporation [member] | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, Country of incorporation | Vietnam |
Associate, % owned | 30.00% |
GIIR Inc [member] | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, Country of incorporation | Korea |
Associate, % owned | 30.00% |
Haworth Marketing & Media Company [member] | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, Country of incorporation | USA |
Associate, % owned | 49.00% |
High Co SA [member] | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, Country of incorporation | France |
Associate, % owned | 34.10% |
Imagina [member] | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, Country of incorporation | Spain |
Associate, % owned | 22.50% |
Marktest Investimentos SGPS S.A. [member] | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, Country of incorporation | Portugal |
Associate, % owned | 40.00% |
Nanjing Yindu Ogilvy Advertising Co. Ltd [member] | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, Country of incorporation | China |
Associate, % owned | 49.00% |
Richard Attias and Associates [member] | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, Country of incorporation | USA |
Associate, % owned | 49.00% |
Smollan Holdings (Pty) Ltd. [member] | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, Country of incorporation | South Africa |
Associate, % owned | 24.80% |
Interests in associates, join_5
Interests in associates, joint ventures and other investments - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of principal associates and joint ventures [line items] | ||||
Carrying value (including goodwill and other intangibles) of equity interests | £ 796.8 | £ 1,065.2 | [1] | £ 1,069.4 |
GIIR Inc [member] | ||||
Disclosure of principal associates and joint ventures [line items] | ||||
Market value of equity interests | 26.3 | 35.4 | ||
Carrying value (including goodwill and other intangibles) of equity interests | 46.8 | 41.6 | ||
High Co SA [member] | ||||
Disclosure of principal associates and joint ventures [line items] | ||||
Market value of equity interests | 30.3 | 33.3 | ||
Carrying value (including goodwill and other intangibles) of equity interests | 37.1 | 34.5 | ||
Associates and Other Investments [member] | ||||
Disclosure of principal associates and joint ventures [line items] | ||||
Capital commitments contracted | £ 31.4 | £ 54.2 | ||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Interests in associates, join_6
Interests in associates, joint ventures and other investments - Summary of Aggregate Financial Performance and Net Asset Position of Associates and Joint Ventures (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Income statement | ||||||
Revenue | [1],[2] | £ 15,602.4 | £ 15,804.2 | £ 14,887.3 | ||
Operating profit | 1,431.4 | 1,908.2 | [2] | 2,063.1 | [2] | |
Profit before taxation | 1,463.3 | 2,109.3 | [2] | 1,890.5 | [2] | |
Profit for the year | 1,139.4 | 1,912.3 | [2] | 1,501.6 | [2] | |
Balance sheet | ||||||
Net assets | 9,806.6 | 9,956.1 | [2] | |||
Associates and Joint Ventures [member] | ||||||
Income statement | ||||||
Revenue | 3,685.8 | 3,800.8 | 2,254.5 | |||
Operating profit | 378.4 | 440.4 | 308.3 | |||
Profit before taxation | 194.7 | 381.9 | 237.2 | |||
Profit for the year | 118.1 | 312.5 | 156.7 | |||
Balance sheet | ||||||
Assets | 2,940.9 | 3,192.9 | 4,223.1 | |||
Liabilities | (1,570.6) | (1,633.7) | (1,900) | |||
Net assets | £ 1,370.3 | £ 1,559.2 | £ 2,323.1 | |||
[1] | Intersegment sales have not been separately disclosed as they are not material. | |||||
[2] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Deferred tax - Analysis of Defe
Deferred tax - Analysis of Deferred Tax Balances for Financial Reporting Purposes (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | £ 153 | £ 160.3 | [1] |
Deferred tax liabilities | (479.5) | (513.7) | [1] |
Deferred tax assets (liabilities) | (326.5) | (353.4) | |
Deferred tax assets, offset | (259) | (251.5) | |
Deferred tax liabilities, offset | 259 | 251.5 | |
Gross amount before offset [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 412 | 411.8 | |
Deferred tax liabilities | (738.5) | (765.2) | |
Deferred tax assets (liabilities) | £ (326.5) | £ (353.4) | |
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Deferred tax - Movements of Maj
Deferred tax - Movements of Major Gross Deferred Tax Assets (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | [1] | £ 160.3 | ||
Ending balance | 153 | £ 160.3 | [1] | |
Gross deferred tax assets [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 411.8 | 598 | ||
Acquisition of subsidiaries | 2 | 2.6 | ||
(Charge)/credit to income | (16.6) | (60.2) | ||
Impact of US tax reform | (62.1) | |||
Charge to other comprehensive income | (0.2) | (20.9) | ||
Charge to equity | (1.6) | (27.3) | ||
Exchange differences | 16.6 | (18.3) | ||
Ending balance | 412 | 411.8 | ||
Gross deferred tax assets [member] | Deferred compensation [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 53.5 | 95.6 | ||
(Charge)/credit to income | 4.7 | (5.5) | ||
Impact of US tax reform | (30.8) | |||
Exchange differences | 3.4 | (5.8) | ||
Ending balance | 61.6 | 53.5 | ||
Gross deferred tax assets [member] | Accounting provisions and accruals [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 84.9 | 80.6 | ||
(Charge)/credit to income | 13 | 6.6 | ||
Impact of US tax reform | (8.1) | |||
Exchange differences | 3.5 | 5.8 | ||
Ending balance | 101.4 | 84.9 | ||
Gross deferred tax assets [member] | Retirement benefit obligation [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 75.6 | 141.4 | ||
(Charge)/credit to income | (11.2) | (10.2) | ||
Impact of US tax reform | (29.1) | |||
Charge to other comprehensive income | (0.2) | (20.9) | ||
Exchange differences | 4.3 | (5.6) | ||
Ending balance | 68.5 | 75.6 | ||
Gross deferred tax assets [member] | Property, plant and equipment [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 68.4 | 70.8 | ||
(Charge)/credit to income | (20.6) | 6.9 | ||
Impact of US tax reform | (6.8) | |||
Exchange differences | 0.1 | (2.5) | ||
Ending balance | 47.9 | 68.4 | ||
Gross deferred tax assets [member] | Tax losses and credits [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 72.7 | 89.7 | ||
(Charge)/credit to income | (8.9) | (34.4) | ||
Impact of US tax reform | 23.1 | |||
Exchange differences | 3.3 | (5.7) | ||
Ending balance | 67.1 | 72.7 | ||
Gross deferred tax assets [member] | Share-based payments [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 33 | 75.8 | ||
(Charge)/credit to income | (15.3) | (0.4) | ||
Impact of US tax reform | (10.9) | |||
Charge to equity | (1.6) | (27.3) | ||
Exchange differences | 0.7 | (4.2) | ||
Ending balance | 16.8 | 33 | ||
Gross deferred tax assets [member] | Restructuring provisions [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 5.8 | 5.9 | ||
(Charge)/credit to income | 10.7 | (1.5) | ||
Impact of US tax reform | 1.6 | |||
Exchange differences | 0.8 | (0.2) | ||
Ending balance | 17.3 | 5.8 | ||
Gross deferred tax assets [member] | Other temporary differences [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 17.9 | 38.2 | ||
Acquisition of subsidiaries | 2 | 2.6 | ||
(Charge)/credit to income | 11 | (21.7) | ||
Impact of US tax reform | (1.1) | |||
Exchange differences | 0.5 | (0.1) | ||
Ending balance | £ 31.4 | £ 17.9 | ||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Deferred tax - Movements of Gro
Deferred tax - Movements of Gross Deferred Tax Liabilities (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | [1] | £ 513.7 | ||
Ending balance | 479.5 | £ 513.7 | [1] | |
Gross deferred tax liabilities [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 765.2 | 1,150 | ||
Acquisition of subsidiaries | 10.7 | 21.4 | ||
(Credit)/charge to income | (62.8) | (53.9) | ||
Impact of US tax reform | (296.2) | |||
Charge to other comprehensive income | 0.5 | 3.7 | ||
Exchange differences | 24.9 | (59.8) | ||
Ending balance | 738.5 | 765.2 | ||
Gross deferred tax liabilities [member] | Brands and other intangibles [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 489.2 | 755.9 | ||
Acquisition of subsidiaries | 10.7 | 21.4 | ||
(Credit)/charge to income | (68.8) | (49.9) | ||
Impact of US tax reform | (203.8) | |||
Exchange differences | 7.5 | (34.4) | ||
Ending balance | 438.6 | 489.2 | ||
Gross deferred tax liabilities [member] | Associate earnings [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 21.6 | 28.3 | ||
(Credit)/charge to income | (3.9) | (6) | ||
Exchange differences | (0.1) | (0.7) | ||
Ending balance | 17.6 | 21.6 | ||
Gross deferred tax liabilities [member] | Goodwill [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 140.4 | 232.5 | ||
(Credit)/charge to income | 31.8 | 0.7 | ||
Impact of US tax reform | (76.3) | |||
Exchange differences | 10.1 | (16.5) | ||
Ending balance | 182.3 | 140.4 | ||
Gross deferred tax liabilities [member] | Property, plant and equipment [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 21.2 | 36.2 | ||
(Credit)/charge to income | (0.3) | (0.5) | ||
Impact of US tax reform | (11.9) | |||
Exchange differences | 1.3 | (2.6) | ||
Ending balance | 22.2 | 21.2 | ||
Gross deferred tax liabilities [member] | Financial instruments [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 36.2 | 64 | ||
(Credit)/charge to income | (0.9) | (3.3) | ||
Impact of US tax reform | (22.2) | |||
Exchange differences | 4.6 | (2.3) | ||
Ending balance | 39.9 | 36.2 | ||
Gross deferred tax liabilities [member] | Other temporary differences [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 56.6 | 33.1 | ||
(Credit)/charge to income | (20.7) | 5.1 | ||
Impact of US tax reform | 18 | |||
Charge to other comprehensive income | 0.5 | 3.7 | ||
Exchange differences | 1.5 | (3.3) | ||
Ending balance | £ 37.9 | £ 56.6 | ||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Deferred tax - Additional Infor
Deferred tax - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross tax losses and other temporary differences available for offset against future profits | £ 6,638.6 | £ 6,208.6 |
Gross tax losses and other temporary differences, deferred tax assets that have been recognised | 1,763.4 | 1,539.3 |
Gross tax losses and other temporary differences, deferred tax assets that have not been recognised | 4,875.2 | 4,669.3 |
Unrecognised temporary differences | 46.4 | 56.5 |
Losses carried forward | 4,572.6 | 4,421.5 |
Temporary differences, deferred tax liabilities that have not been recognised | £ 1,768.5 | £ 3,898 |
Bottom of range [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognised temporary differences, period | 1 year | |
Top of range [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognised temporary differences, period | 10 years |
Trade and other receivables - S
Trade and other receivables - Summary of Trade and Other Receivables, Amounts Falling Due Within One Year (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Trade and other current receivables [abstract] | |||
Trade receivables (net of bad debt provision) | £ 8,062.2 | £ 7,889.7 | |
Work in progress | 366.5 | 401.1 | |
VAT and sales taxes recoverable | 264.2 | 202.3 | |
Prepayments | 287.3 | 298.3 | |
Accrued income | 3,541.2 | 3,205.8 | |
Fair value of derivatives | 1.3 | 1 | |
Other debtors | 578.8 | 532.5 | |
Trade and other receivables | £ 13,101.5 | £ 12,530.7 | [1] |
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Trade and other receivables - A
Trade and other receivables - Ageing of Trade Receivables and Other Financial Assets (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [Line items] | ||
Financial assets | £ 8,613.9 | £ 8,390.1 |
Trade receivables [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 8,062.2 | 7,889.7 |
Other financial assets [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 551.7 | 500.4 |
0-30 days [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 1,432 | 1,736.6 |
0-30 days [member] | Trade receivables [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 1,370.7 | 1,629.6 |
0-30 days [member] | Other financial assets [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 61.3 | 107 |
31-90 days [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 563.3 | 583.6 |
31-90 days [member] | Trade receivables [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 549.1 | 577 |
31-90 days [member] | Other financial assets [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 14.2 | 6.6 |
91-180 days [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 136.9 | 147.7 |
91-180 days [member] | Trade receivables [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 128.3 | 143 |
91-180 days [member] | Other financial assets [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 8.6 | 4.7 |
181 days - 1 year [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 83.3 | 59.1 |
181 days - 1 year [member] | Trade receivables [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 75.6 | 48.8 |
181 days - 1 year [member] | Other financial assets [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 7.7 | 10.3 |
Over 1 year [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 99.8 | 65.3 |
Over 1 year [member] | Trade receivables [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 64.8 | 24.7 |
Over 1 year [member] | Other financial assets [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 35 | 40.6 |
Neither past due nor impaired [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 6,298.6 | 5,797.8 |
Neither past due nor impaired [member] | Trade receivables [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 5,873.7 | 5,466.6 |
Neither past due nor impaired [member] | Other financial assets [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 424.9 | £ 331.2 |
Trade and other receivables -_2
Trade and other receivables - Summary of Trade and Other Receivables, Amounts Falling Due After More Than One Year (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Trade and other non-current receivables [abstract] | |||
Prepayments | £ 3 | £ 3.6 | |
Accrued income | 16.5 | 20.5 | |
Fair value of derivatives | 8.4 | 2.1 | |
Other debtors | 152.1 | 150 | |
Trade and other receivables | £ 180 | £ 176.2 | [1] |
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Trade and other receivables - B
Trade and other receivables - Bad Debt Provisions (Detail) - Trade receivables [member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of financial assets [Line items] | |||
At beginning of year | £ 91.3 | £ 93.8 | £ 85.4 |
New acquisitions | 1.5 | 1.2 | 1.8 |
Charged to the income statement | 66.7 | 27.4 | 15.5 |
Released to the income statement | (11.6) | (8.4) | (6.3) |
Exchange adjustments | 2.1 | (4.1) | 13.7 |
Utilisations and other movements | (33.4) | (18.6) | (16.3) |
At end of year | £ 116.6 | £ 91.3 | £ 93.8 |
Trade and other receivables -_3
Trade and other receivables - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Trade and other receivables [abstract] | |||
Allowance for bad and doubtful debts as a percentage of gross trade accounts receivables | 1.40% | 1.10% | 1.20% |
Trade and other receivables -_4
Trade and other receivables - Summary of Aging Analysis of Invoice, Loss Allowance (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of financial assets [Line items] | |||||
Trade receivables | £ 8,613.9 | £ 8,390.1 | |||
Trade receivables [member] | |||||
Disclosure of financial assets [Line items] | |||||
Trade receivables | 8,062.2 | 7,889.7 | |||
Loss allowance | £ 116.6 | £ 91.3 | £ 91.3 | £ 93.8 | £ 85.4 |
Expected loss rate | 1.40% | 1.10% | |||
Trade receivables [member] | Cost [member] | |||||
Disclosure of financial assets [Line items] | |||||
Trade receivables | £ 8,178.9 | £ 7,981 | |||
0-90 days [member] | Trade receivables [member] | |||||
Disclosure of financial assets [Line items] | |||||
Loss allowance | £ 11.3 | 2.9 | |||
Expected loss rate | 0.10% | ||||
0-90 days [member] | Trade receivables [member] | Cost [member] | |||||
Disclosure of financial assets [Line items] | |||||
Trade receivables | £ 7,621.9 | 7,392.6 | |||
91-180 days [member] | Trade receivables [member] | |||||
Disclosure of financial assets [Line items] | |||||
Loss allowance | £ 3.8 | £ 2.8 | |||
Expected loss rate | 1.00% | 0.70% | |||
91-180 days [member] | Trade receivables [member] | Cost [member] | |||||
Disclosure of financial assets [Line items] | |||||
Trade receivables | £ 381.5 | £ 425.6 | |||
181 days - 1 year [member] | Trade receivables [member] | |||||
Disclosure of financial assets [Line items] | |||||
Loss allowance | £ 39.2 | £ 24.2 | |||
Expected loss rate | 45.30% | 30.80% | |||
181 days - 1 year [member] | Trade receivables [member] | Cost [member] | |||||
Disclosure of financial assets [Line items] | |||||
Trade receivables | £ 86.5 | £ 78.6 | |||
Over 1 year [member] | Trade receivables [member] | |||||
Disclosure of financial assets [Line items] | |||||
Loss allowance | £ 62.3 | £ 61.4 | |||
Expected loss rate | 70.00% | 73.00% | |||
Over 1 year [member] | Trade receivables [member] | Cost [member] | |||||
Disclosure of financial assets [Line items] | |||||
Trade receivables | £ 89 | £ 84.2 |
Trade and other payables - Summ
Trade and other payables - Summary of Trade and Other Payables, Amounts Falling Due within One Year (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Trade and other current payables [abstract] | |||
Trade payables | £ 10,524.3 | £ 9,893 | |
Deferred income | 1,253.6 | 1,212.1 | |
Payments due to vendors (earnout agreements) | 148.2 | 180.7 | |
Liabilities in respect of put option agreements with vendors | 36.8 | 38.6 | |
Fair value of derivatives | 2.6 | 3.5 | |
Other creditors and accruals | 3,072.9 | 2,913.2 | |
Total | £ 15,038.4 | £ 14,241.1 | [1] |
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Trade and other payables - Su_2
Trade and other payables - Summary of Trade and Other Payables, Amounts Falling Due After More Than One Year (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Trade and other non-current payables [abstract] | |||
Payments due to vendors (earnout agreements) | £ 266.5 | £ 450 | |
Liabilities in respect of put option agreements with vendors | 205.2 | 219.5 | |
Fair value of derivatives | 14.2 | 3.3 | |
Other creditors and accruals | 355.5 | 320 | |
Trade and other payables | £ 841.4 | £ 992.8 | [1] |
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Trade and other payables - Paym
Trade and other payables - Payments Due to Vendors (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Payments due to vendors, Current | £ 148.2 | £ 180.7 | |
Payments due to vendors, Non-current | 266.5 | 450 | |
Payments due to vendors | 414.7 | 630.7 | £ 976.5 |
Within one year [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Payments due to vendors, Current | 148.2 | 180.7 | |
Between one and two years [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Payments due to vendors, Non-current | 140.2 | 128.3 | |
Between two and three years [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Payments due to vendors, Non-current | 38.5 | 144.1 | |
Between three and four years [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Payments due to vendors, Non-current | 50.3 | 58.3 | |
Between four and five years [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Payments due to vendors, Non-current | 20.4 | 103.1 | |
Over five years [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Payments due to vendors, Non-current | £ 17.1 | £ 16.2 |
Trade and Other Payables Amount
Trade and Other Payables Amounts Falling Due After More than One Year - Summary of Contingent Consideration (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Fair Value Of Contingent Consideration [abstract] | |||
At the beginning of the year | £ 630.7 | £ 976.5 | |
Earnouts paid (note 11) | (120.2) | (199.1) | £ (92.3) |
New acquisitions | 48.6 | 163.7 | |
Revision of estimates taken to goodwill (note 12) | (68.3) | (60.7) | |
Revaluation of payments due to vendors (note 6) | (82.6) | (208.6) | |
Exchange adjustments | 6.5 | (41.1) | |
At end of year | £ 414.7 | £ 630.7 | £ 976.5 |
Trade and Other Payables - Addi
Trade and Other Payables - Additional Information (Detail) - GBP (£) | Dec. 31, 2018 | Dec. 31, 2017 |
Bottom of range [member] | Earnout agreements for acquisitions completed in the current year [member] | ||
Disclosure of trade and other payables [line items] | ||
Potential undiscounted amount of future payments | £ 0 | £ 0 |
Bottom of range [member] | All earn-out agreements [member] | ||
Disclosure of trade and other payables [line items] | ||
Potential undiscounted amount of future payments | 0 | 0 |
Top of range [member] | Earnout agreements for acquisitions completed in the current year [member] | ||
Disclosure of trade and other payables [line items] | ||
Potential undiscounted amount of future payments | 179,000,000 | 228,000,000 |
Top of range [member] | All earn-out agreements [member] | ||
Disclosure of trade and other payables [line items] | ||
Potential undiscounted amount of future payments | £ 1,960,000,000 | £ 1,910,000,000 |
Bank overdrafts, bonds and ba_3
Bank overdrafts, bonds and bank loans - Bank Overdrafts, Bonds and Bank Loans Amounts Falling Due Within One Year (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of bank overdraft bonds and bank loans [abstract] | ||||
Bank overdrafts | £ 442 | £ 393.2 | £ 534.3 | |
Corporate bonds and bank loans | 583.1 | 230.9 | ||
Bank overdrafts, bonds and bank loans | £ 1,025.1 | £ 624.1 | [1] | |
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Bank overdrafts, bonds and ba_4
Bank overdrafts, bonds and bank loans - Corporate Bonds and Bank Loans Amounts Falling Due After More Than One Year (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of bank overdraft bonds and bank loans [abstract] | |||
Corporate bonds and bank loans | £ 5,634.8 | £ 6,250.4 | [1] |
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Bank overdrafts, bonds and ba_5
Bank overdrafts, bonds and bank loans - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of bank overdraft bonds and bank loans [line items] | ||
Carrying amount of bank loans | £ 186.8 | £ 993.4 |
Corporate bond [member] | ||
Disclosure of bank overdraft bonds and bank loans [line items] | ||
Fair value of corporate bonds | £ 5,965.7 | £ 5,816.5 |
Bank overdrafts, bonds and ba_6
Bank overdrafts, bonds and bank loans - Repayments Due on Corporate Bonds, Bank Loans and Overdrafts (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | £ 6,659.9 | £ 6,874.5 |
Within one year [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | 1,025.1 | 624.1 |
Between one and two years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | 423.8 | 727.6 |
Between two and three years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | 761 | 421 |
Between three and four years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | 609.8 | 1,384.2 |
Between four and five years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | 670.1 | 356.6 |
Over five years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | £ 3,170.1 | £ 3,361 |
Provisions for liabilities an_3
Provisions for liabilities and charges - Summary of Provisions for Liabilities and Charges (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Noncurrent Provisions [line items] | ||
Beginning balance | £ 229 | £ 227.9 |
Charged to the income statement | 86 | 21 |
Acquisitions | 8.8 | 26.8 |
Utilised | (25.8) | (27.4) |
Released to the income statement | (10.3) | (11.4) |
Transfers | 12.9 | 7.2 |
Exchange adjustments | 11.1 | (15.1) |
Ending balance | 311.7 | 229 |
Property [Member] | ||
Disclosure Of Noncurrent Provisions [line items] | ||
Beginning balance | 52.6 | 58.5 |
Charged to the income statement | 72.1 | 4.1 |
Acquisitions | 0.5 | 4 |
Utilised | (5.7) | (6) |
Released to the income statement | (5.7) | (5.5) |
Transfers | 2 | 0.1 |
Exchange adjustments | 2.9 | (2.6) |
Ending balance | 118.7 | 52.6 |
Other [member] | ||
Disclosure Of Noncurrent Provisions [line items] | ||
Beginning balance | 176.4 | 169.4 |
Charged to the income statement | 13.9 | 16.9 |
Acquisitions | 8.3 | 22.8 |
Utilised | (20.1) | (21.4) |
Released to the income statement | (4.6) | (5.9) |
Transfers | 10.9 | 7.1 |
Exchange adjustments | 8.2 | (12.5) |
Ending balance | £ 193 | £ 176.4 |
Provisions for liabilities an_4
Provisions for liabilities and charges - Summary of Provisions for Liabilities and Charges (Parenthetical) (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other provisions [abstract] | ||
Acquisitions provisions from revisions to fair value adjustments | £ 8.4 | £ 21.9 |
Transformation costs with respect to the strategic initiative of co-locations | £ 50.6 |
Share-based payments - Charges
Share-based payments - Charges for Share-based Incentive Plans (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of share based payments [abstract] | |||
Share-based payments (note 5) | £ 84.8 | £ 105 | £ 106.5 |
Share-based payments - Addition
Share-based payments - Additional Information (Detail) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018GBP (£)Employees | Dec. 31, 2017GBP (£)Employees | Dec. 31, 2016GBP (£)Employees | |
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Number of key executives covered | Employees | 134,281 | 134,413 | 134,341 |
Restricted stock plans [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Unrecognised compensation cost | £ 146 | £ 156 | |
Fair value of shares vested | £ 107.2 | £ 114.8 | £ 116.8 |
Restricted stock plans [member] | Bottom of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Unrecognised compensation cost, recognised period | 1 year | ||
Restricted stock plans [member] | Top of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Unrecognised compensation cost, recognised period | 2 years | ||
Executive Performance Share Plan [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Performance period | 5 years | ||
Executive Performance Share Plan [member] | Bottom of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Threshold performance vesting percentage | 20.00% | ||
Compound annual growth percentage | 7.00% | ||
Average return on equity percentage | 10.00% | ||
Compound annual growth percentage | 14.00% | ||
Executive Performance Share Plan [member] | Top of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Threshold performance vesting percentage | 100.00% | ||
Compound annual growth percentage | 14.00% | ||
Average return on equity percentage | 14.00% | ||
Compound annual growth percentage | 18.00% | ||
Performance Share Awards [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Vesting period | 2 years | ||
Leaders, Partners and High Potential Group [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Vesting period | 3 years | ||
Number of key executives covered | 1,800 |
Share-based payments - Movement
Share-based payments - Movement on Ordinary Shares Granted for Significant Restricted Stock Plans (Detail) pure in Millions | 12 Months Ended |
Dec. 31, 2018GBP (£) | |
Executive Performance Share Plan [member] | |
Disclosure of movement on ordinary shares granted for significant restricted stock plans [line items] | |
Weighted average fair value, Non-vested beginning balance | £ 13.68 |
Weighted average fair value, Granted | 8.14 |
Weighted average fair value, Lapsed | 15 |
Weighted average fair value, Vested | 11.22 |
Weighted average fair value, Non-vested ending balance | £ 13.63 |
Number of shares, Non-vested beginning balance | 9.1 |
Number of shares, Granted | 0.7 |
Number of shares, Lapsed | (1.1) |
Number of shares, Vested | (2) |
Number of shares, Non-vested ending balance | 6.7 |
Performance Share Awards [member] | |
Disclosure of movement on ordinary shares granted for significant restricted stock plans [line items] | |
Weighted average fair value, Non-vested beginning balance | £ 16.59 |
Weighted average fair value, Granted | 12.02 |
Weighted average fair value, Lapsed | 15.22 |
Weighted average fair value, Vested | 15.17 |
Weighted average fair value, Non-vested ending balance | £ 14.37 |
Number of shares, Non-vested beginning balance | 1.9 |
Number of shares, Granted | 1.4 |
Number of shares, Lapsed | (0.1) |
Number of shares, Vested | (0.9) |
Number of shares, Non-vested ending balance | 2.3 |
Leaders, Partners and High Potential Group [member] | |
Disclosure of movement on ordinary shares granted for significant restricted stock plans [line items] | |
Weighted average fair value, Non-vested beginning balance | £ 15.02 |
Weighted average fair value, Granted | 8.06 |
Weighted average fair value, Lapsed | 14.72 |
Weighted average fair value, Vested | 14.26 |
Weighted average fair value, Non-vested ending balance | £ 11.54 |
Number of shares, Non-vested beginning balance | 6.8 |
Number of shares, Granted | 4.8 |
Number of shares, Lapsed | (0.7) |
Number of shares, Vested | (1.8) |
Number of shares, Non-vested ending balance | 9.1 |
Provision for post-employment_3
Provision for post-employment benefits - Pension Costs (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Pension Costs [abstract] | |||
Defined contribution plans | £ 172.3 | £ 175.9 | £ 153.5 |
Defined benefit plans charge to operating profit | 18.9 | 16.1 | 24.6 |
Pension costs (note 5) | 191.2 | 192 | 178.1 |
Net interest expense on pension plans (note 6) | 4.4 | 6.3 | 6.7 |
Pension costs, Net | £ 195.6 | £ 198.3 | £ 184.8 |
Provision for post-employment_4
Provision for post-employment benefits - Additional Information (Detail) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018GBP (£)yr | Dec. 31, 2017GBP (£)yr | Dec. 31, 2016GBP (£) | |
Disclosure of defined benefit plans [line items] | |||
Employer contributions and benefit payments | £ | £ 44.9 | £ 68.2 | £ 43.7 |
Employer contributions and benefit payments, expected in 2019 | £ | £ 50 | ||
Years life expectancy after age 65 - current pensioners (at age 65) - male [member] | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assumption of life expectancy | 22.2 | 22.4 | |
Years life expectancy after age 65 - current pensioners (at age 65) - female [member] | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assumption of life expectancy | 23.9 | 24 | |
Years life expectancy after age 65 - future pensioners (current age 45) - male [member] | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assumption of life expectancy | 24 | 23.8 | |
Years life expectancy after age 65 - future pensioners (current age 45) - female [member] | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assumption of life expectancy | 25.7 | 25.7 |
Provision for post-employment_5
Provision for post-employment benefits - Weighted Average Assumptions Used For Actuarial Valuations (Detail) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
United Kingdom [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Discount rate | 2.80% | 2.40% | 2.50% | 3.70% |
Rate of increase in salaries | 3.50% | 3.10% | ||
Rate of increase in pensions in payment | 4.30% | 4.10% | 4.10% | 3.90% |
Inflation | 2.80% | 2.70% | 2.80% | 2.40% |
North America [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Discount rate | 4.10% | 3.50% | 3.80% | 4.00% |
Rate of increase in salaries | 3.00% | 3.10% | 3.10% | 3.00% |
Inflation | 4.00% | 4.00% | 2.50% | |
Western Continental Europe [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Discount rate | 2.00% | 1.90% | 1.70% | 2.50% |
Rate of increase in salaries | 2.30% | 1.90% | 2.00% | 2.30% |
Rate of increase in pensions in payment | 1.20% | 1.20% | 1.30% | 1.60% |
Inflation | 1.70% | 1.70% | 1.70% | 2.00% |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Discount rate | 5.00% | 4.20% | 4.20% | 4.20% |
Rate of increase in salaries | 5.80% | 5.50% | 5.90% | 5.80% |
Inflation | 3.60% | 4.00% | 4.00% | 4.00% |
Provision for post-employment_6
Provision for post-employment benefits - Life Expectancies For Defined Benefit Pension Plans (Detail) - yr | Dec. 31, 2018 | Dec. 31, 2017 |
Years life expectancy after age 65 - current pensioners (at age 65) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 22.2 | 22.4 |
Years life expectancy after age 65 - current pensioners (at age 65) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23.9 | 24 |
Years life expectancy after age 65 - future pensioners (current age 45) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 24 | 23.8 |
Years life expectancy after age 65 - future pensioners (current age 45) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 25.7 | 25.7 |
North America [member] | Years life expectancy after age 65 - current pensioners (at age 65) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 22.1 | |
North America [member] | Years life expectancy after age 65 - current pensioners (at age 65) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23.6 | |
North America [member] | Years life expectancy after age 65 - future pensioners (current age 45) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23.7 | |
North America [member] | Years life expectancy after age 65 - future pensioners (current age 45) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 25.2 | |
United Kingdom [member] | Years life expectancy after age 65 - current pensioners (at age 65) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23.2 | |
United Kingdom [member] | Years life expectancy after age 65 - current pensioners (at age 65) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 24.3 | |
United Kingdom [member] | Years life expectancy after age 65 - future pensioners (current age 45) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 24.8 | |
United Kingdom [member] | Years life expectancy after age 65 - future pensioners (current age 45) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 26.1 | |
Western Continental Europe [member] | Years life expectancy after age 65 - current pensioners (at age 65) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 21.1 | |
Western Continental Europe [member] | Years life expectancy after age 65 - current pensioners (at age 65) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 24 | |
Western Continental Europe [member] | Years life expectancy after age 65 - future pensioners (current age 45) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23.5 | |
Western Continental Europe [member] | Years life expectancy after age 65 - future pensioners (current age 45) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 26.2 | |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Years life expectancy after age 65 - current pensioners (at age 65) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 17 | |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Years life expectancy after age 65 - current pensioners (at age 65) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 21.4 | |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Years life expectancy after age 65 - future pensioners (current age 45) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 17 | |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Years life expectancy after age 65 - future pensioners (current age 45) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 21.4 |
Provision for post-employment_7
Provision for post-employment benefits - Weighted Average Duration of Defined Benefit Pension Obligations and Distribution of Timing of Benefit Payments (Detail) £ in Millions | 12 Months Ended |
Dec. 31, 2018GBP (£)yr | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of the defined benefit obligation (years) | yr | 11.8 |
Within one year [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 67.2 |
Between one and two years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 58.4 |
Between two and three years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 58.3 |
Between three and four years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 59.1 |
Between four and five years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 56.6 |
Later than five years and not later than ten years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 276.6 |
North America [member] | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of the defined benefit obligation (years) | yr | 8.5 |
North America [member] | Within one year [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 36.3 |
North America [member] | Between one and two years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 34.3 |
North America [member] | Between two and three years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 33.7 |
North America [member] | Between three and four years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 33.6 |
North America [member] | Between four and five years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 30.4 |
North America [member] | Later than five years and not later than ten years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 131 |
United Kingdom [member] | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of the defined benefit obligation (years) | yr | 14.2 |
United Kingdom [member] | Within one year [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 16.4 |
United Kingdom [member] | Between one and two years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 12.9 |
United Kingdom [member] | Between two and three years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 12.8 |
United Kingdom [member] | Between three and four years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 12.7 |
United Kingdom [member] | Between four and five years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 12.9 |
United Kingdom [member] | Later than five years and not later than ten years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 66.1 |
Western Continental Europe [member] | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of the defined benefit obligation (years) | yr | 15.7 |
Western Continental Europe [member] | Within one year [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 9.3 |
Western Continental Europe [member] | Between one and two years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 8.6 |
Western Continental Europe [member] | Between two and three years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 8.6 |
Western Continental Europe [member] | Between three and four years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 9.1 |
Western Continental Europe [member] | Between four and five years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 9.4 |
Western Continental Europe [member] | Later than five years and not later than ten years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 52.8 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of the defined benefit obligation (years) | yr | 8.2 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Within one year [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 5.1 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Between one and two years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 2.5 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Between two and three years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 3.1 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Between three and four years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 3.6 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Between four and five years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 3.9 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Later than five years and not later than ten years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 26.6 |
Provision for post-employment_8
Provision for post-employment benefits - Sensitivity Analysis of Significant Actuarial Assumptions (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Discount rate [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumption, basis point increase | 0.25% | 0.25% |
Assumption, basis point decrease | 0.25% | 0.25% |
Discount rate [member] | United Kingdom [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ (9.8) | £ (13.1) |
Increase/(decrease) in benefit obligation, due to decrease in assumption | 10.3 | 13.8 |
Discount rate [member] | North America [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | (8.8) | (9.9) |
Increase/(decrease) in benefit obligation, due to decrease in assumption | 9.1 | 10.2 |
Discount rate [member] | Western Continental Europe [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | (8.7) | (9.2) |
Increase/(decrease) in benefit obligation, due to decrease in assumption | 9.3 | 9.8 |
Discount rate [member] | Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | (0.7) | (0.6) |
Increase/(decrease) in benefit obligation, due to decrease in assumption | £ 0.7 | £ 0.6 |
Rate of increase in salaries [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumption, basis point increase | 0.25% | 0.25% |
Assumption, basis point decrease | 0.25% | 0.25% |
Rate of increase in salaries [member] | North America [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ 0.1 | |
Increase/(decrease) in benefit obligation, due to decrease in assumption | (0.1) | |
Rate of increase in salaries [member] | Western Continental Europe [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ 1.3 | 1.5 |
Increase/(decrease) in benefit obligation, due to decrease in assumption | (1.2) | (1.5) |
Rate of increase in salaries [member] | Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | 0.7 | 0.6 |
Increase/(decrease) in benefit obligation, due to decrease in assumption | £ (0.6) | £ (0.6) |
Rate of increase in pensions in payment [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumption, basis point increase | 0.25% | 0.25% |
Assumption, basis point decrease | 0.25% | 0.25% |
Rate of increase in pensions in payment [member] | United Kingdom [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ 1.3 | £ 2.4 |
Increase/(decrease) in benefit obligation, due to decrease in assumption | (0.8) | (1.9) |
Rate of increase in pensions in payment [member] | Western Continental Europe [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | 5.3 | 6.2 |
Increase/(decrease) in benefit obligation, due to decrease in assumption | £ (5) | £ (5.8) |
Life expectancy [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumption, increase in longevity | 1 year | 1 year |
Life expectancy [member] | United Kingdom [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ 13.6 | £ 16.9 |
Life expectancy [member] | North America [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | 5.7 | 6 |
Life expectancy [member] | Western Continental Europe [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ 6.9 | £ 7 |
Provision for post-employment_9
Provision for post-employment benefits - Fair Value of Assets and Assessed Present Value of Liabilities in Pension Plans (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [abstract] | |||
Fair value of assets allocation, Equities | 9.10% | 13.40% | 17.30% |
Fair value of assets allocation, Bonds | 64.80% | 55.90% | 60.60% |
Fair value of assets allocation, Insured annuities | 10.80% | 19.20% | 6.80% |
Fair value of assets allocation, Property | 0.10% | 0.10% | 0.20% |
Fair value of assets allocation, Cash | 3.70% | 1.10% | 4.80% |
Fair value of assets allocation, Other | 11.50% | 10.30% | 10.30% |
Total fair value of assets allocation | 100.00% | 100.00% | 100.00% |
Fair value of assets, Equities | £ 76.5 | £ 124.6 | £ 161.9 |
Fair value of assets, Bonds | 544.9 | 520 | 566 |
Fair value of assets, Insured annuities | 90.9 | 178.5 | 63.5 |
Fair value of assets, Property | 0.9 | 1.3 | 1.6 |
Fair value of assets, Cash | 31.1 | 9.9 | 44.9 |
Fair value of assets, Other | 96.3 | 95.7 | 96.3 |
Total fair value of assets | 840.6 | 930 | 934.2 |
Present value of liabilities | (1,024) | (1,135.4) | (1,209.8) |
Deficit in the plans | (183.4) | (205.4) | (275.6) |
Irrecoverable surplus | (0.9) | (0.9) | (0.9) |
Net liability | (184.3) | (206.3) | (276.5) |
Plans in surplus | 42.8 | 43.9 | 28 |
Plans in deficit | £ (227.1) | £ (250.2) | £ (304.5) |
Provision for post-employmen_10
Provision for post-employment benefits - Surplus/(Deficit) in Plans by Region (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [line items] | |||
Surplus/(deficit) in plans | £ (183.4) | £ (205.4) | £ (275.6) |
United Kingdom [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/(deficit) in plans | 33.7 | 31.5 | 20 |
North America [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/(deficit) in plans | (68.7) | (89.2) | (133.8) |
Western Continental Europe [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/(deficit) in plans | (104.6) | (107.7) | (116.9) |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/(deficit) in plans | £ (43.8) | £ (40) | £ (44.9) |
Provision for post-employmen_11
Provision for post-employment benefits - Funded and Unfunded Pension Plans By Region (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | £ (183.4) | £ (205.4) | £ (275.6) |
Present value of liabilities | (1,024) | (1,135.4) | (1,209.8) |
United Kingdom [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | 33.7 | 31.5 | 20 |
North America [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (68.7) | (89.2) | (133.8) |
Western Continental Europe [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (104.6) | (107.7) | (116.9) |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (43.8) | (40) | (44.9) |
Funded defined benefit plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (13.3) | (32) | (90.7) |
Present value of liabilities | (853.9) | (962) | (1,024.9) |
Funded defined benefit plans [member] | United Kingdom [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | 33.7 | 31.5 | 20 |
Present value of liabilities | (290.5) | (387.5) | (406.4) |
Funded defined benefit plans [member] | North America [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (4.6) | (21.4) | (56) |
Present value of liabilities | (375.3) | (385.4) | (420.4) |
Funded defined benefit plans [member] | Western Continental Europe [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (35.8) | (37.9) | (48.9) |
Present value of liabilities | (168.4) | (173.3) | (180.9) |
Funded defined benefit plans [member] | Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (6.6) | (4.2) | (5.8) |
Present value of liabilities | (19.7) | (15.8) | (17.2) |
Unfunded defined benefit plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (170.1) | (173.4) | (184.9) |
Present value of liabilities | (170.1) | (173.4) | (184.9) |
Unfunded defined benefit plans [member] | North America [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (64.1) | (67.8) | (77.8) |
Present value of liabilities | (64.1) | (67.8) | (77.8) |
Unfunded defined benefit plans [member] | Western Continental Europe [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (68.8) | (69.8) | (68) |
Present value of liabilities | (68.8) | (69.8) | (68) |
Unfunded defined benefit plans [member] | Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (37.2) | (35.8) | (39.1) |
Present value of liabilities | £ (37.2) | £ (35.8) | £ (39.1) |
Provision for post-employmen_12
Provision for post-employment benefits - Pension Expense Charged to Operating Profit, Amounts Charged to Finance Costs and Amounts Recognised in Consolidated Statement of Comprehensive Income (OCI) (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of net defined benefit (liability) asset | |||
Charge to operating profit | £ 18.9 | £ 16.1 | £ 24.6 |
Net interest expense on pension plans | 4.4 | 6.3 | 6.7 |
Actuarial gain/(loss) recognised in OCI | 8.9 | 17 | (15.9) |
Post employment pension expense [member] | |||
Disclosure of net defined benefit (liability) asset | |||
Service cost | 15.5 | 13 | 22.4 |
Administrative expenses | 3.4 | 3.1 | 2.2 |
Charge to operating profit | 18.9 | 16.1 | 24.6 |
Net interest expense on pension plans | 4.4 | 6.3 | 6.7 |
Charge to profit before taxation for defined benefit plans | 23.3 | 22.4 | 31.3 |
Return on plan assets (excluding interest income) | (43.9) | 13.4 | 66.3 |
Changes in demographic assumptions underlying the present value of the plan liabilities | 3.8 | 12.7 | 6.7 |
Changes in financial assumptions underlying the present value of the plan liabilities | 45.2 | (17) | (92.6) |
Experience gain arising on the plan liabilities | 3.8 | 7.9 | 1 |
Change in irrecoverable surplus | 2.7 | ||
Actuarial gain/(loss) recognised in OCI | £ 8.9 | £ 17 | £ (15.9) |
Provision for post-employmen_13
Provision for post-employment benefits - Movement in Pension Plan Liabilities (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of net defined benefit (liability) asset | |||
Plan liabilities at beginning of year | £ 206.3 | £ 276.5 | |
Plan liabilities at end of year | 184.3 | 206.3 | £ 276.5 |
Retirement benefit obligation [member] | |||
Disclosure of net defined benefit (liability) asset | |||
Plan liabilities at beginning of year | 1,135.4 | 1,209.8 | 1,039.9 |
Service cost | 15.5 | 13 | 22.4 |
Interest cost | 30.7 | 32.9 | 37.2 |
Effect of changes in demographic assumptions | (3.8) | (12.7) | (6.7) |
Effect of changes in financial assumptions | (45.2) | 17 | 92.6 |
Effect of experience adjustments | (3.8) | (7.9) | (1) |
Benefits paid | (75.6) | (79.7) | (92.4) |
Loss/(gain) due to exchange rate movements | 30 | (36.4) | 124.2 |
Settlement payments | (70.4) | (1.2) | (4.8) |
Other | 11.2 | 0.6 | (1.6) |
Plan liabilities at end of year | £ 1,024 | £ 1,135.4 | £ 1,209.8 |
Provision for post-employmen_14
Provision for post-employment benefits - Movement in Pension Plan Liabilities (Parenthetical) (Detail) £ in Millions | 12 Months Ended |
Dec. 31, 2018GBP (£) | |
United Kingdom [member] | |
Disclosure of net defined benefit (liability) asset | |
Settlement payments | £ 70.4 |
Provision for post-employmen_15
Provision for post-employment benefits - Movement in Pension Plan Assets (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of net defined benefit (liability) asset | |||
Fair value of plan assets at beginning of year | £ (206.3) | £ (276.5) | |
Employer contributions | (44.9) | (68.2) | £ (43.7) |
Fair value of plan assets at end of year | (184.3) | (206.3) | (276.5) |
Plan assets [member] | |||
Disclosure of net defined benefit (liability) asset | |||
Fair value of plan assets at beginning of year | 930 | 934.2 | 814.2 |
Interest income on plan assets | 26.3 | 26.6 | 30.5 |
Return on plan assets (excluding interest income) | (43.9) | 13.4 | 66.3 |
Employer contributions | 44.9 | 68.2 | 43.7 |
Benefits paid | (75.6) | (79.7) | (92.4) |
Gain/(loss) due to exchange rate movements | 23 | (28.7) | 78.8 |
Settlement payments | (70.4) | (1.2) | (4.8) |
Administrative expenses | (3.4) | (3.1) | (2.2) |
Other | 9.7 | 0.3 | 0.1 |
Fair value of plan assets at end of year | 840.6 | 930 | 934.2 |
Actual return on plan assets | £ (17.6) | £ 40 | £ 96.8 |
Provision for post-employmen_16
Provision for post-employment benefits - Movement in Pension Plan Assets (Parenthetical) (Detail) £ in Millions | 12 Months Ended |
Dec. 31, 2018GBP (£) | |
United Kingdom [member] | |
Disclosure of net defined benefit (liability) asset | |
Settlement payments | £ 70.4 |
Risk management policies - Addi
Risk management policies - Additional Information (Detail) € in Millions, £ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£) | |
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | £ 6,217.9 | £ 6,481.3 | ||||
Total committed facilities available | 8,357.6 | |||||
Interest rate risk [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage increase in market interest rate | 1.00% | 1.00% | ||||
Potential amount of change due to an increase or decrease in risk | £ 7.2 | 0.2 | ||||
Percentage decrease in market interest rate | 1.00% | 1.00% | ||||
US dollar borrowings [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | $ | $ 2,784 | $ 3,931 | ||||
US dollar borrowings [member] | Weighted average [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | $ | $ 3,377 | $ 3,741 | ||||
US dollar borrowings [member] | Fixed interest rate [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage of debt | 52.90% | |||||
Borrowings interest rate | 4.58% | 4.58% | 4.58% | |||
Average period of debt | 181 months | |||||
US dollar borrowings [member] | Floating interest rate [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage of debt | 47.10% | |||||
Borrowings interest rate | 4.77% | 4.77% | 4.77% | |||
Average period of debt | 39 months | |||||
Sterling Borrowings [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | £ 1,044 | 600 | ||||
Sterling Borrowings [member] | Weighted average [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | £ 1,039 | £ 1,242 | ||||
Sterling Borrowings [member] | Fixed interest rate [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage of debt | 100.00% | |||||
Borrowings interest rate | 3.43% | 3.43% | 3.43% | |||
Average period of debt | 232 months | |||||
Euro Borrowings [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | € | € 3,200 | € 3,202 | ||||
Euro Borrowings [member] | Weighted average [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | € | € 3,202 | € 3,108 | ||||
Euro Borrowings [member] | Fixed interest rate [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage of debt | 84.40% | |||||
Borrowings interest rate | 1.99% | 1.99% | 1.99% | |||
Average period of debt | 75 months | |||||
Euro Borrowings [member] | Floating interest rate [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage of debt | 15.60% | |||||
Borrowings interest rate | 0.05% | 0.05% | 0.05% | |||
Average period of debt | 28 months |
Risk management policies - Comm
Risk management policies - Committed Facilities (Detail) € in Millions, £ in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018AUD ($) | Dec. 31, 2017GBP (£) | |
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 8,357.6 | ||||
Drawn down facilities | 6,282.9 | ||||
Undrawn committed credit facilities | 2,074.7 | £ 1,163.8 | |||
Sterling bonds due September 2046 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 400 | ||||
Interest rate | 2.875% | 2.875% | 2.875% | 2.875% | |
US$ bonds due November 2043 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | $ 450 | £ 353.3 | |||
Interest rate | 5.625% | 5.625% | 5.625% | 5.625% | |
US$ bonds due September 2042 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | $ 272 | £ 213.1 | |||
Interest rate | 5.125% | 5.125% | 5.125% | 5.125% | |
Euro bonds due March 2030 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | € 600 | £ 539.1 | |||
Interest rate | 1.625% | 1.625% | 1.625% | 1.625% | |
Euro bonds due September 2026 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | € 750 | £ 673.9 | |||
Interest rate | 2.25% | 2.25% | 2.25% | 2.25% | |
US$ bonds due September 2024 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | $ 750 | £ 588.4 | |||
Interest rate | 3.75% | 3.75% | 3.75% | 3.75% | |
Euro bonds due November 2023 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | € 750 | £ 673.9 | |||
Interest rate | 3.00% | 3.00% | 3.00% | 3.00% | |
US$ bonds due September 2022 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | $ 500 | £ 392.3 | |||
Interest rate | 3.625% | 3.625% | 3.625% | 3.625% | |
US$ bonds due November 2021 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | $ 812 | £ 637.4 | |||
Interest rate | 4.75% | 4.75% | 4.75% | 4.75% | |
US revolving credit facilities [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | $ 2,500 | £ 1,961.4 | |||
Sterling bonds due November 2020 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 200 | ||||
Interest rate | 6.375% | 6.375% | 6.375% | 6.375% | |
Eurobonds (3m EURIBOR + 0.32%) due May 2020 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Adjustment to floating basis | 0.32% | 0.32% | 0.32% | 0.32% | |
Floating basis | 3m EURIBOR | ||||
Total committed facilities available | € 250 | £ 224.6 | |||
Euro bonds due November 2019 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | € 600 | £ 539.1 | |||
Interest rate | 0.75% | 0.75% | 0.75% | 0.75% | |
Australian New Zealand revolving credit facilities [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 287.3 | ||||
Euro bonds due 2025 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | € 500 | £ 449.2 | |||
Interest rate | 1.375% | 1.375% | 1.375% | 1.375% | |
Eurobonds (3m EURIBOR + 0.45%) due March 2022 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Adjustment to floating basis | 0.45% | 0.45% | 0.45% | 0.45% | |
Floating basis | 3m EURIBOR | ||||
Total committed facilities available | € 250 | £ 224.6 | |||
Australian revolving credit facilities due 2019 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | $ | $ 150 | ||||
Australian revolving credit facilities due 2021 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | $ | $ 370 | ||||
Within one year [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 622 | ||||
Drawn down facilities | 571.1 | ||||
Within one year [member] | Euro bonds due November 2019 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 539.1 | ||||
Within one year [member] | Australian New Zealand revolving credit facilities [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 82.9 | ||||
Between one and two years [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 424.6 | ||||
Drawn down facilities | 424.6 | ||||
Between one and two years [member] | Sterling bonds due November 2020 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 200 | ||||
Between one and two years [member] | Eurobonds (3m EURIBOR + 0.32%) due May 2020 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 224.6 | ||||
Between two and three years [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 2,803.2 | ||||
Drawn down facilities | 779.4 | ||||
Between two and three years [member] | US$ bonds due November 2021 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 637.4 | ||||
Between two and three years [member] | US revolving credit facilities [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 1,961.4 | ||||
Between two and three years [member] | Australian New Zealand revolving credit facilities [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 204.4 | ||||
Between three and four years [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 616.9 | ||||
Drawn down facilities | 616.9 | ||||
Between three and four years [member] | US$ bonds due September 2022 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 392.3 | ||||
Between three and four years [member] | Eurobonds (3m EURIBOR + 0.45%) due March 2022 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 224.6 | ||||
Later than four years [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 3,890.9 | ||||
Drawn down facilities | 3,890.9 | ||||
Later than four years [member] | Sterling bonds due September 2046 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 400 | ||||
Later than four years [member] | US$ bonds due November 2043 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 353.3 | ||||
Later than four years [member] | US$ bonds due September 2042 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 213.1 | ||||
Later than four years [member] | Euro bonds due March 2030 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 539.1 | ||||
Later than four years [member] | Euro bonds due September 2026 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 673.9 | ||||
Later than four years [member] | US$ bonds due September 2024 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 588.4 | ||||
Later than four years [member] | Euro bonds due November 2023 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 673.9 | ||||
Later than four years [member] | Euro bonds due 2025 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 449.2 |
Financial instruments - Additio
Financial instruments - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | ||
Disclosure of detailed information about financial instruments [line items] | |||||
Nominal amount | £ 8,357,600,000 | ||||
Ending balance | £ 666,700,000 | £ 1,153,500,000 | [1] | ||
Weighted average growth rate | 25.00% | 22.70% | 22.70% | ||
Risk adjusted discount rate | 1.80% | 2.90% | 2.90% | ||
Available for sale [member] | Adoption of IFRS 9 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Ending balance | £ 1,153,500,000 | ||||
Held at fair value through other comprehensive income [member] | Adoption of IFRS 9 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Ending balance | 835,100,000 | ||||
Held at fair value through profit or loss [member] | Adoption of IFRS 9 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Ending balance | 318,400,000 | ||||
One percentage point increase or decrease [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Increase in combined liabilities due to earn out and put option arrangement | 8,900,000 | £ 6,800,000 | |||
Decrease in combined liabilities due to earn out and put option arrangement | 9,300,000 | 10,400,000 | |||
0.5 percentage point increase or decrease [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Increase in combined liabilities due to earn out and put option arrangement | 11,400,000 | 7,200,000 | |||
Decrease in combined liabilities due to earn out and put option arrangement | 11,200,000 | 7,100,000 | |||
Interest Rate Swap Contract [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Fair value estimated to be a net asset (liability) | (1,200,000) | (14,200,000) | |||
Gain (loss) on changes in the fair value relating to the ineffective portion | 900,000 | 2,800,000 | |||
Gain (loss) on changes in the fair value relating to the ineffective portion, loss on hedging instruments | (9,900,000) | ||||
Gain (loss) on changes in the fair value relating to the ineffective portion, gain on hedged items | £ 10,800,000 | ||||
Interest Rate Swap Contract [member] | Trade and other receivable [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative assets | 2,100,000 | 0 | |||
Interest Rate Swap Contract [member] | Trade and Other Payable [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative liabilities | 3,300,000 | 14,200,000 | |||
Interest Rate Swap Contract [member] | Until September 2022 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Nominal amount | $ | $ 500,000,000 | ||||
Interest Rate Swap Contract [member] | Until November 2021 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Nominal amount | $ | $ 812,000,000 | ||||
Interest Rate Swap Contract [member] | Fixed interest rate [member] | Until September 2022 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative interest rates | 3.63% | ||||
Interest Rate Swap Contract [member] | Fixed interest rate [member] | Until November 2021 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative interest rates | 4.75% | ||||
Interest Rate Swap Contract [member] | Floating interest rate [member] | Until September 2022 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative interest rates, LIBOR adjustment | 1.52% | ||||
Interest Rate Swap Contract [member] | Floating interest rate [member] | Until November 2021 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative interest rates, LIBOR adjustment | 2.34% | ||||
Contracts due in March 2025 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Receipts | £ 500,000,000 | ||||
Payments | 444,100,000 | ||||
Derivatives in designated hedge relationships [member] | Foreign Exchange Contracts [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Fair value estimated to be a net asset (liability) | 0 | 8,400,000 | |||
Deferred amount in equity | 17,900,000 | 0 | |||
Gain (loss) on changes in the fair value relating to the ineffective portion | (11,100,000) | 0 | |||
Gain (loss) on changes in the fair value relating to the ineffective portion, loss on hedging instruments | 6,800,000 | ||||
Gain (loss) on changes in the fair value relating to the ineffective portion, gain on hedged items | £ (17,900,000) | ||||
Derivatives in designated hedge relationships [member] | Foreign Exchange Contracts [member] | Trade and other receivable [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative assets | 0 | 8,400,000 | |||
Derivatives in designated hedge relationships [member] | Foreign Exchange Contracts [member] | Trade and Other Payable [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative liabilities | 0 | 0 | |||
Derivatives not designated as hedges [member] | Foreign Exchange Contracts [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Fair value estimated to be a net asset (liability) | (2,500,000) | (1,300,000) | |||
Nominal amount | £ 177,700,000 | £ 296,100,000 | |||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Financial instruments - Analysi
Financial instruments - Analysis of Financial Assets and Liabilities (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | ||||
Other investments | £ 666.7 | £ 1,153.5 | [1] | £ 1,310.3 |
Bank overdrafts, bonds and bank loans | (1,025.1) | (624.1) | [1] | |
Bonds and bank loans | (5,634.8) | (6,250.4) | [1] | |
Payments due to vendors (earnout agreements) (note 18) | (414.7) | (630.7) | £ (976.5) | |
Derivatives in designated hedge relationships [member] | Classification under IFRS 9 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative assets | 8.4 | |||
Derivative liabilities | (14.2) | |||
Financial instruments | (5.8) | |||
Derivatives in designated hedge relationships [member] | Classification under IAS39 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative assets | 2.1 | |||
Derivative liabilities | (3.3) | |||
Financial instruments | (1.2) | |||
Held at fair value through profit or loss [member] | Classification under IFRS 9 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Other investments | 319.6 | |||
Derivative assets | 1.3 | |||
Derivative liabilities | (2.6) | |||
Payments due to vendors (earnout agreements) (note 18) | (414.7) | |||
Liabilities in respect of put options | (242) | |||
Financial instruments | (338.4) | |||
Held at fair value through other comprehensive income [member] | Classification under IFRS 9 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Other investments | 347.1 | |||
Financial instruments | 347.1 | |||
Amortised cost [member] | Classification under IFRS 9 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Cash and short-term deposits | 2,643.2 | |||
Bank overdrafts, bonds and bank loans | (1,025.1) | |||
Bonds and bank loans | (5,634.8) | |||
Trade and other receivables: amounts falling due within one year | 8,545.6 | |||
Trade and other receivables: amounts falling due after more than one year | 68.3 | |||
Trade and other payables: amounts falling due within one year | (10,637.3) | |||
Trade and other payables: amounts falling due after more than one year | (8.4) | |||
Financial instruments | (6,048.5) | |||
Amortised cost [member] | Classification under IAS39 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Bank overdrafts, bonds and bank loans | (624.1) | |||
Bonds and bank loans | (6,250.4) | |||
Trade and other payables: amounts falling due within one year | (9,970.5) | |||
Trade and other payables: amounts falling due after more than one year | (8.5) | |||
Financial instruments | (16,853.5) | |||
Carrying value [member] | Classification under IFRS 9 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Other investments | 666.7 | |||
Cash and short-term deposits | 2,643.2 | |||
Bank overdrafts, bonds and bank loans | (1,025.1) | |||
Bonds and bank loans | (5,634.8) | |||
Trade and other receivables: amounts falling due within one year | 8,545.6 | |||
Trade and other receivables: amounts falling due after more than one year | 68.3 | |||
Trade and other payables: amounts falling due within one year | (10,637.3) | |||
Trade and other payables: amounts falling due after more than one year | (8.4) | |||
Derivative assets | 9.7 | |||
Derivative liabilities | (16.8) | |||
Payments due to vendors (earnout agreements) (note 18) | (414.7) | |||
Liabilities in respect of put options | (242) | |||
Financial instruments | £ (6,045.6) | |||
Carrying value [member] | Classification under IAS39 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Other investments | 1,153.5 | |||
Cash and short-term deposits | 2,391.4 | |||
Bank overdrafts, bonds and bank loans | (624.1) | |||
Bonds and bank loans | (6,250.4) | |||
Trade and other receivables: amounts falling due within one year | 8,328.4 | |||
Trade and other receivables: amounts falling due after more than one year | 61.7 | |||
Trade and other payables: amounts falling due within one year | (9,970.5) | |||
Trade and other payables: amounts falling due after more than one year | (8.5) | |||
Derivative assets | 3.1 | |||
Derivative liabilities | (6.8) | |||
Payments due to vendors (earnout agreements) (note 18) | (630.7) | |||
Liabilities in respect of put options | (258.1) | |||
Financial instruments | (5,811) | |||
Held for trading [member] | Classification under IAS39 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative assets | 1 | |||
Derivative liabilities | (3.5) | |||
Payments due to vendors (earnout agreements) (note 18) | (630.7) | |||
Liabilities in respect of put options | (258.1) | |||
Financial instruments | (891.3) | |||
Loans and receivables [member] | Classification under IAS39 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Cash and short-term deposits | 2,391.4 | |||
Trade and other receivables: amounts falling due within one year | 8,328.4 | |||
Trade and other receivables: amounts falling due after more than one year | 61.7 | |||
Financial instruments | 10,781.5 | |||
Available for sale [member] | Classification under IAS39 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Other investments | 1,153.5 | |||
Financial instruments | £ 1,153.5 | |||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Financial instruments - Analy_2
Financial instruments - Analysis of Financial Instruments Measured at Fair Value (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure of detailed information about financial instruments [line items] | |||||
Beginning balance | £ 1,153.5 | [1] | £ 1,310.3 | ||
Payments due to vendors (earnout agreements) (note 18) | (414.7) | (630.7) | £ (976.5) | ||
Ending balance | 666.7 | 1,153.5 | [1] | ||
At Fair Value [member] | Level 1 [member] | Equity investments [member] | Other investments [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Beginning balance | 333.2 | ||||
Ending balance | 333.2 | ||||
At Fair Value [member] | Level 1 [member] | Held at fair value through profit or loss [member] | Other investments [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Ending balance | 0.4 | ||||
At Fair Value [member] | Level 1 [member] | Held at fair value through other comprehensive income [member] | Other investments [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Ending balance | 128.1 | ||||
At Fair Value [member] | Level 2 [member] | Derivatives in designated hedge relationships [member] | Derivatives Liabilities [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative liabilities | (14.2) | (3.3) | |||
At Fair Value [member] | Level 2 [member] | Derivatives in designated hedge relationships [member] | Derivatives Assets [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative assets | 8.4 | 2.1 | |||
At Fair Value [member] | Level 2 [member] | Held for trading [member] | Derivatives Liabilities [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative liabilities | (3.5) | ||||
At Fair Value [member] | Level 2 [member] | Held for trading [member] | Derivatives Assets [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative assets | 1 | ||||
At Fair Value [member] | Level 2 [member] | Held at fair value through profit or loss [member] | Derivatives Liabilities [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative liabilities | (2.6) | ||||
At Fair Value [member] | Level 2 [member] | Held at fair value through profit or loss [member] | Derivatives Assets [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative assets | 1.3 | ||||
At Fair Value [member] | Level 3 [member] | Held for trading [member] | Trade And Other Payables To Trade Suppliers [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Payments due to vendors (earnout agreements) (note 18) | (630.7) | ||||
At Fair Value [member] | Level 3 [member] | Held for trading [member] | Liabilities in Respect of Put Options [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Liabilities in respect of put options | (258.1) | ||||
Beginning balance | (258.1) | (297) | |||
Gains recognised in the income statement | 34.5 | 52.5 | |||
Exchange adjustments | 1.1 | 7.5 | |||
Additions | (43.5) | (40.5) | |||
Cancellations | 2.2 | 2.9 | |||
Settlements | 21.8 | 16.5 | |||
Ending balance | (242) | (258.1) | |||
At Fair Value [member] | Level 3 [member] | Equity investments [member] | Other investments [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Beginning balance | 820.3 | 881 | |||
Gains/(losses) recognised in the income statement | 61.1 | (13.8) | |||
Gains/(losses) recognised in other comprehensive income | (140.6) | 15.1 | |||
Exchange adjustments | (70.9) | ||||
Additions | 35 | 67.7 | |||
Disposals | (237.3) | (1.7) | |||
Reclassifications from other investments to interests in associates | (0.3) | (57.1) | |||
Settlements | 0 | 0 | |||
Ending balance | 538.2 | £ 820.3 | |||
At Fair Value [member] | Level 3 [member] | Held at fair value through profit or loss [member] | Trade And Other Payables To Trade Suppliers [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Payments due to vendors (earnout agreements) (note 18) | (414.7) | ||||
At Fair Value [member] | Level 3 [member] | Held at fair value through profit or loss [member] | Liabilities in Respect of Put Options [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Liabilities in respect of put options | (242) | ||||
At Fair Value [member] | Level 3 [member] | Held at fair value through profit or loss [member] | Other investments [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Ending balance | 319.2 | ||||
At Fair Value [member] | Level 3 [member] | Held at fair value through other comprehensive income [member] | Other investments [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Ending balance | £ 219 | ||||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Authorised and issued share c_3
Authorised and issued share capital - Summary of Authorised and Issued Share Capital (Detail) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2018GBP (£)shares | Dec. 31, 2017GBP (£)shares | Dec. 31, 2016GBP (£)shares | Dec. 31, 2015GBP (£)shares | |||
Disclosure of classes of share capital [line items] | ||||||
Issued and fully paid capital, Beginning balance | [1] | £ 133.3 | ||||
Issued and fully paid capital, Ending balance | £ 133.3 | £ 133.3 | [1] | |||
Ordinary shares [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Equity ordinary shares, authorised | shares | 1,750,000,000 | 1,750,000,000 | 1,750,000,000 | 1,750,000,000 | ||
Nominal value of Authorised shares | £ 175 | £ 175 | £ 175 | £ 175 | ||
Number of shares issued and fully paid, Beginning balance | shares | 1,332,511,552 | 1,331,880,730 | 1,329,366,024 | |||
Exercise of share options | shares | 166,675 | 630,822 | 2,514,706 | |||
Number of shares issued and fully paid, Ending balance | shares | 1,332,678,227 | 1,332,511,552 | 1,331,880,730 | |||
Issued and fully paid capital, Beginning balance | £ 133.3 | £ 133.2 | £ 132.9 | |||
Exercise of share options | 0.1 | 0.3 | ||||
Issued and fully paid capital, Ending balance | £ 133.3 | £ 133.3 | £ 133.2 | |||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Authorised and issued share c_4
Authorised and issued share capital - Additional Information (Detail) | 12 Months Ended | |||||
Dec. 31, 2018USD ($)Years | Dec. 31, 2018GBP (£)sharesADRsYears | Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£)shares | Dec. 31, 2016USD ($) | Dec. 31, 2016GBP (£) | |
Disclosure of classes of share capital [line items] | ||||||
Share option performance effect | Nine years and eight months | Nine years and eight months | ||||
Share option granted in Life | Years | 10 | 10 | ||||
WPP Share Option Plan 2015 [member] | Bottom of range [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Threshold period for employment participation in employee stock ownership plan | 2 years | 2 years | ||||
WPP Worldwide Share Ownership Program [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Vesting period | 3 years | 3 years | ||||
WPP Worldwide Share Ownership Program [member] | Bottom of range [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Threshold period for employment participation in employee stock ownership plan | 2 years | 2 years | ||||
Executive Stock Option Plan [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Vesting period | 3 years | 3 years | ||||
Ordinary shares [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of the ordinary shares of the Company held by the ESOP | shares | 14,820,994 | 14,232,910 | ||||
Market value of the ordinary shares of the Company held by the ESOP | £ | £ 125,500,000 | £ 190,900,000 | ||||
Number of ordinary shares held in treasury | shares | 70,854,553 | 62,578,938 | ||||
Ordinary shares held in Treasury at market value | £ | £ 599,900,000 | £ 839,200,000 | ||||
Number of ordinary shares under option | 24,218,615 | 20,985,441 | ||||
Average share price | £ | £ 11.56 | £ 15.86 | £ 16.45 | |||
Ordinary shares [member] | WPP Executive Share Option Scheme [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of ordinary shares under option | shares | 6,741 | |||||
Ordinary shares [member] | WPP Worldwide Share Ownership Program [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of ordinary shares under option | shares | 3,187,979 | |||||
Ordinary shares [member] | WPP Share Option Plan 2015 [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of ordinary shares under option | 18,691,100 | 14,602,950 | ||||
Ordinary shares [member] | WPP Worldwide Share Ownership Program [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of ordinary shares under option | 5,520,774 | 6,375,750 | ||||
American depository receipts [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Average ADR Price | $ | $ 77.31 | $ 101.86 | $ 111.20 | |||
American depository receipts [member] | WPP Worldwide Share Ownership Program [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Unexercised options | ADRs | 466,559 | |||||
American depository receipts [member] | WPP Share Option Plan 2015 [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Unexercised options | ADRs | 1,286,670 | |||||
Share purchase options [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Unrecognised compensation costs related to share options | £ | £ 8,500,000 | £ 9,000,000 | ||||
Unrecognised compensation cost related to share options, weighted average period | 20 months | 20 months | 20 months | 20 months |
Authorised and issued share c_5
Authorised and issued share capital - Options Granted, WPP Executive Share Option Scheme (Detail) - Ordinary shares [member] | 12 Months Ended | |
Dec. 31, 2018GBP (£)shares | Dec. 31, 2017 | |
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 24,218,615 | 20,985,441 |
WPP Executive Share Option Scheme [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 6,741 | 6,741 |
WPP Executive Share Option Scheme [member] | Exercise price group 1 [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | shares | 3,696 | |
Exercise price per share | £ | £ 8.333 | |
Exercise dates | 2015 - 2022 | |
WPP Executive Share Option Scheme [member] | Exercise price group 2 [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | shares | 3,045 | |
Exercise price per share | £ | £ 10.595 | |
Exercise dates | 2016 - 2023 |
Authorised and issued share c_6
Authorised and issued share capital - Options Granted, WPP Worldwide Share Ownership Program (Detail) | 12 Months Ended | ||
Dec. 31, 2018USD ($)sharesADRs | Dec. 31, 2018GBP (£)sharesADRs | Dec. 31, 2017 | |
Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | 24,218,615 | 24,218,615 | 20,985,441 |
WPP Worldwide Share Ownership Program [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | 5,520,774 | 5,520,774 | 6,375,750 |
WPP Worldwide Share Ownership Program [member] | Exercise price group 1 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 28,275 | 28,275 | |
Exercise price per share | £ | £ 5.483 | ||
Exercise dates | 2012 - 2019 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 1 [member] | American depository receipts [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 11,855 | 11,855 | |
Exercise price per ADR | $ | $ 44.560 | ||
Exercise dates | 2012 - 2019 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 2 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 18,000 | 18,000 | |
Exercise price per share | £ | £ 5.483 | ||
Exercise dates | 2013 - 2019 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 2 [member] | American depository receipts [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 29,025 | 29,025 | |
Exercise price per ADR | $ | $ 49.230 | ||
Exercise dates | 2014 - 2021 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 3 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 750 | 750 | |
Exercise price per share | £ | £ 5.608 | ||
Exercise dates | 2012 - 2019 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 3 [member] | American depository receipts [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 19,200 | 19,200 | |
Exercise price per ADR | $ | $ 56.560 | ||
Exercise dates | 2013 - 2020 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 4 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 95,000 | 95,000 | |
Exercise price per share | £ | £ 6.268 | ||
Exercise dates | 2014 - 2021 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 4 [member] | American depository receipts [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 44,964 | 44,964 | |
Exercise price per ADR | $ | $ 67.490 | ||
Exercise dates | 2015 - 2022 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 5 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 44,125 | 44,125 | |
Exercise price per share | £ | £ 6.268 | ||
Exercise dates | 2015 - 2021 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 5 [member] | American depository receipts [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 195,890 | 195,890 | |
Exercise price per ADR | $ | $ 102.670 | ||
Exercise dates | 2017 - 2024 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 6 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 61,625 | 61,625 | |
Exercise price per share | £ | £ 7.113 | ||
Exercise dates | 2013 - 2020 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 6 [member] | American depository receipts [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 165,625 | 165,625 | |
Exercise price per ADR | $ | $ 110.760 | ||
Exercise dates | 2016 - 2023 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 7 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 30,250 | 30,250 | |
Exercise price per share | £ | £ 7.113 | ||
Exercise dates | 2014 - 2020 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 8 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 233,129 | 233,129 | |
Exercise price per share | £ | £ 8.458 | ||
Exercise dates | 2015 - 2022 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 9 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 52,000 | 52,000 | |
Exercise price per share | £ | £ 13.145 | ||
Exercise dates | 2017 - 2021 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 10 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 1,959,975 | 1,959,975 | |
Exercise price per share | £ | £ 13.145 | ||
Exercise dates | 2017 - 2024 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 11 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 4,750 | 4,750 | |
Exercise price per share | £ | £ 13.145 | ||
Exercise dates | 2018 - 2024 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 12 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 642,975 | 642,975 | |
Exercise price per share | £ | £ 13.505 | ||
Exercise dates | 2016 - 2023 | ||
WPP Worldwide Share Ownership Program [member] | Exercise price group 13 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 17,125 | 17,125 | |
Exercise price per share | £ | £ 13.505 | ||
Exercise dates | 2017 - 2023 |
Authorised and issued share c_7
Authorised and issued share capital - Options Granted, WPP Share Option Plan 2015 (Detail) | 12 Months Ended | ||
Dec. 31, 2018USD ($)sharesADRs | Dec. 31, 2018GBP (£)sharesADRs | Dec. 31, 2017 | |
Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | 24,218,615 | 24,218,615 | 20,985,441 |
WPP Share Option Plan 2015 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | 18,691,100 | 18,691,100 | 14,602,950 |
WPP Share Option Plan 2015 [member] | American depository receipts [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 1,286,670 | 1,286,670 | |
WPP Share Option Plan 2015 [member] | Exercise price group 1 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 23,750 | 23,750 | |
Exercise price per share | £ | £ 8.372 | ||
Exercise dates | 2021 - 2025 | ||
WPP Share Option Plan 2015 [member] | Exercise price group 1 [member] | American depository receipts [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 439,205 | 439,205 | |
Exercise price per ADR | $ | $ 53.140 | ||
Exercise dates | 2021 - 2028 | ||
WPP Share Option Plan 2015 [member] | Exercise price group 2 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 4,053,925 | 4,053,925 | |
Exercise price per share | £ | £ 8.372 | ||
Exercise dates | 2021 - 2028 | ||
WPP Share Option Plan 2015 [member] | Exercise price group 2 [member] | American depository receipts [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 340,225 | 340,225 | |
Exercise price per ADR | $ | $ 88.260 | ||
Exercise dates | 2020 - 2027 | ||
WPP Share Option Plan 2015 [member] | Exercise price group 3 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 23,875 | 23,875 | |
Exercise price per share | £ | £ 13.085 | ||
Exercise dates | 2020 - 2024 | ||
WPP Share Option Plan 2015 [member] | Exercise price group 3 [member] | American depository receipts [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 282,115 | 282,115 | |
Exercise price per ADR | $ | $ 105.490 | ||
Exercise dates | 2020 - 2026 | ||
WPP Share Option Plan 2015 [member] | Exercise price group 4 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 3,245,325 | 3,245,325 | |
Exercise price per share | £ | £ 13.085 | ||
Exercise dates | 2020 - 2027 | ||
WPP Share Option Plan 2015 [member] | Exercise price group 4 [member] | American depository receipts [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 225,125 | 225,125 | |
Exercise price per ADR | $ | $ 115.940 | ||
Exercise dates | 2018 - 2025 | ||
WPP Share Option Plan 2015 [member] | Exercise price group 5 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 66,125 | 66,125 | |
Exercise price per share | £ | £ 15.150 | ||
Exercise dates | 2018 - 2022 | ||
WPP Share Option Plan 2015 [member] | Exercise price group 6 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 2,211,900 | 2,211,900 | |
Exercise price per share | £ | £ 15.150 | ||
Exercise dates | 2018 - 2025 | ||
WPP Share Option Plan 2015 [member] | Exercise price group 7 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 5,750 | 5,750 | |
Exercise price per share | £ | £ 15.150 | ||
Exercise dates | 2019 - 2025 | ||
WPP Share Option Plan 2015 [member] | Exercise price group 8 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 15,875 | 15,875 | |
Exercise price per share | £ | £ 17.055 | ||
Exercise dates | 2019 - 2023 | ||
WPP Share Option Plan 2015 [member] | Exercise price group 9 [member] | Ordinary shares [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option | shares | 2,611,225 | 2,611,225 | |
Exercise price per share | £ | £ 17.055 | ||
Exercise dates | 2019 - 2026 |
Authorised and issued share c_8
Authorised and issued share capital - Movements and Weighted-average Exercise Price for Options Granted (Detail) | 12 Months Ended | |||||
Dec. 31, 2018USD ($)shares | Dec. 31, 2018GBP (£)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2017GBP (£)shares | Dec. 31, 2016shares | Dec. 31, 2018GBP (£) | |
American depository receipts [member] | WPP Worldwide Share Ownership Program [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Weighted-average exercise price for options, 1 January | $ | $ 94.752 | |||||
Weighted-average exercise price for options, Exercised | $ | 57.031 | |||||
Weighted-average exercise price for options, Lapsed | $ | 99.731 | |||||
Weighted-average exercise price for options, Outstanding 31 December | $ | 95.453 | $ 94.752 | ||||
Weighted-average exercise price for options, Exercisable | $ | 95.453 | |||||
American depository receipts [member] | WPP Share Option Plans [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Weighted-average exercise price for options, 1 January | $ | 101.047 | |||||
Weighted-average exercise price for options, Granted | $ | 53.140 | |||||
Weighted-average exercise price for options, Lapsed | $ | 98.978 | |||||
Weighted-average exercise price for options, Outstanding 31 December | $ | 84.893 | $ 101.047 | ||||
Weighted-average exercise price for options, Exercisable | $ | $ 115.940 | |||||
Ordinary shares [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Options granted, Beginning balance | 20,985,441 | 20,985,441 | ||||
Options granted, Granted | 6,301,400 | 6,301,400 | ||||
Options granted, Exercised | shares | (166,675) | (166,675) | (630,822) | (630,822) | (2,514,706) | |
Options granted, Lapsed | (2,901,551) | (2,901,551) | ||||
Options granted, Ending balance | 24,218,615 | 24,218,615 | 20,985,441 | 20,985,441 | ||
Options granted, Exercisable | 8,931,165 | 8,931,165 | ||||
Ordinary shares [member] | WPP Executive Share Option Scheme [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Options granted, Beginning balance | 6,741 | 6,741 | ||||
Options granted, Ending balance | 6,741 | 6,741 | 6,741 | 6,741 | ||
Options granted, Exercisable | 6,741 | 6,741 | ||||
Weighted-average exercise price for options, 1 January | £ 9.355 | |||||
Weighted-average exercise price for options, Outstanding 31 December | £ 9.355 | £ 9.355 | ||||
Weighted-average exercise price for options, Exercisable | £ 9.355 | |||||
Ordinary shares [member] | WPP Worldwide Share Ownership Program [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Options granted, Beginning balance | 6,375,750 | 6,375,750 | ||||
Options granted, Exercised | (166,675) | (166,675) | ||||
Options granted, Lapsed | (688,301) | (688,301) | ||||
Options granted, Ending balance | 5,520,774 | 5,520,774 | 6,375,750 | 6,375,750 | ||
Options granted, Exercisable | 5,520,774 | 5,520,774 | ||||
Weighted-average exercise price for options, 1 January | £ 12.195 | |||||
Weighted-average exercise price for options, Exercised | 7.064 | |||||
Weighted-average exercise price for options, Lapsed | 12.473 | |||||
Weighted-average exercise price for options, Outstanding 31 December | 12.290 | £ 12.195 | ||||
Weighted-average exercise price for options, Exercisable | £ 12.290 | |||||
Ordinary shares [member] | WPP Executive Share Option New Scheme [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Weighted-average exercise price for options, 1 January | 14.929 | |||||
Weighted-average exercise price for options, Granted | 8.372 | |||||
Weighted-average exercise price for options, Lapsed | 14.818 | |||||
Weighted-average exercise price for options, Outstanding 31 December | £ 12.753 | £ 14.929 | ||||
Weighted-average exercise price for options, Exercisable | £ 15.150 | |||||
Ordinary shares [member] | WPP Share Option Plan 2015 [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Options granted, Beginning balance | 14,602,950 | 14,602,950 | ||||
Options granted, Granted | 6,301,400 | 6,301,400 | ||||
Options granted, Lapsed | (2,213,250) | (2,213,250) | ||||
Options granted, Ending balance | 18,691,100 | 18,691,100 | 14,602,950 | 14,602,950 | ||
Options granted, Exercisable | 3,403,650 | 3,403,650 |
Authorised and issued share c_9
Authorised and issued share capital - Range of Exercise Prices of Options (Detail) | Dec. 31, 2018USD ($)Months | Dec. 31, 2018GBP (£)Months |
Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Weighted average contractual life | Months | 96 | 96 |
American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Weighted average contractual life | Months | 93 | 93 |
Bottom of range [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price | £ | £ 5.483 | |
Bottom of range [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price | $ | $ 44.560 | |
Top of range [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price | £ | 17.055 | |
Top of range [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price | $ | 115.940 | |
Weighted average [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price | £ | £ 12.656 | |
Weighted average [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price | $ | $ 87.703 |
Authorised and issued share _10
Authorised and issued share capital - Weighted Average Fair Value of Options Granted and Weighted Average Assumptions (Detail) | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | |
Weighted average assumptions: | ||||||
Expected life (months) | 48 months | 48 months | 48 months | |||
Expected volatility | 24.00% | 17.00% | 16.00% | |||
Dividend yield | 3.50% | 2.90% | 2.80% | |||
United Kingdom [member] | ||||||
Weighted average assumptions: | ||||||
Risk-free interest rate | 0.78% | 0.57% | 0.44% | |||
United Kingdom [member] | Ordinary shares [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Fair value of options | £ | £ 1.07 | £ 1.12 | £ 1.35 | |||
United States [member] | ||||||
Weighted average assumptions: | ||||||
Risk-free interest rate | 2.74% | 2.05% | 1.60% | |||
United States [member] | American depository receipts [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Fair value of options | $ | $ 8.09 | $ 9.40 | $ 9.94 |
Other reserves - Summary of Oth
Other reserves - Summary of Other Reserves (Detail) - GBP (£) £ in Millions | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | [1] | £ 761.7 | £ 761.7 | ||||
Exchange adjustments on foreign currency net investments | 78.9 | £ (465.2) | £ 1,378 | ||||
Gain (loss) on revaluation of available for sale investments | 32.1 | (93.1) | |||||
Recognition and remeasurement of financial instruments | (20.4) | (21.8) | 4.9 | ||||
Ending balance | 393.5 | 761.7 | [1] | ||||
Capital redemption reserve [member] | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | 2.7 | 2.7 | 2.7 | 2.7 | |||
Ending balance | 2.7 | 2.7 | 2.7 | ||||
Reserve of gains and losses from investments in equity instruments [member] | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | (257.2) | (257.2) | (247.1) | (225.2) | |||
Recognition and remeasurement of financial instruments | (30.7) | (10.1) | (21.9) | ||||
Ending balance | (287.9) | (257.2) | (247.1) | ||||
Revaluation reserve [member] | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | 303.4 | 303.4 | 271.3 | 364.4 | |||
Gain (loss) on revaluation of available for sale investments | 32.1 | (93.1) | |||||
Accounting policy change (IFRS 9) | [2] | (303.4) | |||||
Ending balance | 303.4 | 271.3 | |||||
Translation reserve [member] | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | 712.8 | 712.8 | 1,158.3 | (151.6) | |||
Exchange adjustments on foreign currency net investments | 69.9 | (445.5) | 1,309.9 | ||||
Accounting policy change (IFRS 9) | [2] | (104) | |||||
Ending balance | 678.7 | 712.8 | 1,158.3 | ||||
Other reserves [member] | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | 761.7 | 761.7 | 1,185.2 | (9.7) | |||
Exchange adjustments on foreign currency net investments | [3] | 69.9 | (445.5) | 1,309.9 | |||
Gain (loss) on revaluation of available for sale investments | [3] | 32.1 | (93.1) | ||||
Accounting policy change (IFRS 9) | £ (407.4) | (407.4) | [3],[4] | ||||
Recognition and remeasurement of financial instruments | [3] | (30.7) | (10.1) | (21.9) | |||
Ending balance | £ 393.5 | £ 761.7 | £ 1,185.2 | ||||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. | ||||||
[2] | Due to the adoption of IFRS 9, cumulative gains and losses on revaluation of available for sale investments have been transferred to retained earnings, as described in the accounting policies. | ||||||
[3] | Other reserves are analysed in note 26. | ||||||
[4] | The impact of the adoption of IFRS 9 Financial Instruments from 1 January 2018 is described in the accounting policies on pages F-2 to F-3. |
Acquisitions - Book Values of I
Acquisitions - Book Values of Identifiable Assets and Liabilities Acquired and Their Fair Value (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about business combination [line items] | |||
Cash | £ 11.3 | ||
Book value [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Intangible assets | £ 0.8 | £ 10.5 | |
Property, plant and equipment | 3.1 | 5.5 | 20.6 |
Cash | 5 | 28.9 | 57.1 |
Trade receivables due within one year | 43.7 | 74.4 | 249.5 |
Other current assets | 20.3 | 20.1 | 78 |
Total assets | 72.1 | 129.7 | 415.7 |
Current liabilities | (42.8) | (76) | (299.4) |
Trade and other payables due after one year | (2.4) | (10.2) | (40.4) |
Provisions | (0.1) | (0.1) | |
Bank loans | (144.4) | ||
Total liabilities | (45.2) | (86.3) | (484.3) |
Net assets | 26.9 | 43.4 | (68.6) |
Fair value adjustments [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Intangible assets | 40.3 | 79 | 319.1 |
Total assets | 40.3 | 79 | 319.1 |
Current liabilities | (2.8) | ||
Trade and other payables due after one year | (13.5) | (20.5) | (59.5) |
Deferred tax liabilities | (9.9) | (16.8) | (96.1) |
Provisions | (0.4) | (4.8) | (11.5) |
Total liabilities | (23.8) | (42.1) | (169.9) |
Net assets | 16.5 | 36.9 | 149.2 |
At Fair Value [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Intangible assets | 40.3 | 79.8 | 329.6 |
Property, plant and equipment | 3.1 | 5.5 | 20.6 |
Cash | 5 | 28.9 | 57.1 |
Trade receivables due within one year | 43.7 | 74.4 | 249.5 |
Other current assets | 20.3 | 20.1 | 78 |
Total assets | 112.4 | 208.7 | 734.8 |
Current liabilities | (42.8) | (76) | (302.2) |
Trade and other payables due after one year | (15.9) | (30.7) | (99.9) |
Deferred tax liabilities | (9.9) | (16.8) | (96.1) |
Provisions | (0.4) | (4.9) | (11.6) |
Bank loans | (144.4) | ||
Total liabilities | (69) | (128.4) | (654.2) |
Net assets | 43.4 | 80.3 | 80.6 |
Non-controlling interests | (6.3) | (13.9) | (15) |
Fair value of equity stake in associate undertakings before acquisition of controlling interest | (3.1) | (5.7) | (98.5) |
Goodwill | 141.6 | 314.3 | 799.3 |
Consideration | 175.6 | 375 | 766.4 |
Consideration satisfied by: | |||
Cash | 127.4 | 213.7 | 423.3 |
Payments due to vendors | £ 48.2 | £ 161.3 | £ 343.1 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about business combination [abstract] | |||
Goodwill that is expected to be deductible for tax purposes | £ 65.3 | £ 63.9 | £ 54.8 |
Reconciliation of profit befo_3
Reconciliation of profit before interest and taxation to headline PBIT - Summary of Reconciliation of Profit Before Interest and Taxation to Headline PBIT (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Disclosure of reconciliation of profit before interest and taxation to headline PBIT [abstract] | ||||||
Profit before interest and taxation | £ 1,474.9 | £ 2,021.7 | [1] | £ 2,112.9 | [1] | |
Amortisation and impairment of acquired intangible assets | 280 | 195.1 | 168.4 | |||
Goodwill impairment | 183.9 | 27.1 | 27 | |||
Gains on disposal of investments and subsidiaries | (235.5) | (129) | (44.3) | |||
(Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership | (2) | 0.3 | (232.4) | |||
Investment write-downs | 2 | 95.9 | 86.1 | |||
Restructuring and transformation costs | 302.3 | 56.8 | 27.4 | |||
Share of exceptional losses/(gains) of associates | 41.7 | (0.8) | 15.2 | |||
Headline PBIT | [2] | £ 2,047.3 | £ 2,267.1 | £ 2,160.3 | ||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. | |||||
[2] | A reconciliation from profit before interest and taxation to headline PBIT is provided in note 29. PBIT is reconciled to reported profit before taxation in the consolidated income statement. |
Condensed consolidating finan_3
Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors - Additional Information (Detail) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) |
Disclosure of detailed information of condensed consolidating financial information [line items] | ||
Ownership percentage in subsidiaries | 100.00% | 100.00% |
US$ bonds due September 2022 [member] | ||
Disclosure of detailed information of condensed consolidating financial information [line items] | ||
Bond amount | $ 500,000,000 | $ 500,000,000 |
Interest rate | 3.625% | 3.625% |
US$ bonds due September 2042 [member] | ||
Disclosure of detailed information of condensed consolidating financial information [line items] | ||
Bond amount | $ 272,000,000 | $ 272,000,000 |
Interest rate | 5.125% | 5.125% |
Repayment of bonds | $ 28,000,000 | |
Bond amount initially issued | $ 300,000,000 | 300,000,000 |
US$ bonds due November 2021 [member] | ||
Disclosure of detailed information of condensed consolidating financial information [line items] | ||
Bond amount | $ 812,000,000 | $ 812,000,000 |
Interest rate | 4.75% | 4.75% |
Condensed consolidating finan_4
Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors - Condensed Consolidating Income Statement Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Condensed Consolidating Income Statement Information | ||||||
Revenue | [1],[2] | £ 15,602.4 | £ 15,804.2 | £ 14,887.3 | ||
Costs of services | (12,663.5) | (12,629) | [2] | (11,846.5) | [2] | |
Gross profit | 2,938.9 | 3,175.2 | [2] | 3,040.8 | [2] | |
General and administrative costs | (1,507.5) | (1,267) | [2] | (977.7) | [2] | |
Operating profit | 1,431.4 | 1,908.2 | [2] | 2,063.1 | [2] | |
Share of results of associates | 43.5 | 113.5 | [2] | 49.8 | [2] | |
Profit before interest and taxation | 1,474.9 | 2,021.7 | [2] | 2,112.9 | [2] | |
Finance income | 104.8 | 95.2 | [2] | 80.4 | [2] | |
Finance costs | (289.3) | (269.8) | [2] | (254.5) | [2] | |
Revaluation of financial instruments | 172.9 | 262.2 | [2] | (48.3) | [2] | |
Profit before taxation | 1,463.3 | 2,109.3 | [2] | 1,890.5 | [2] | |
Taxation | (323.9) | (197) | [2] | (388.9) | [2] | |
Profit for the year | 1,139.4 | 1,912.3 | [2] | 1,501.6 | [2] | |
Attributable to: | ||||||
Equity holders of the parent | 1,062.9 | 1,816.6 | [2] | 1,400.1 | [2] | |
Non-controlling interests | 76.5 | 95.7 | [2] | 101.5 | [2] | |
Profit for the year | 1,139.4 | 1,912.3 | [2] | 1,501.6 | [2] | |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | ||||||
Condensed Consolidating Income Statement Information | ||||||
Revenue | 15,602.4 | 15,804.2 | [2] | 14,887.3 | [2] | |
Costs of services | (12,663.5) | (12,629) | [2] | (11,846.5) | [2] | |
Gross profit | 2,938.9 | 3,175.2 | [2] | 3,040.8 | [2] | |
General and administrative costs | (1,507.5) | (1,267) | [2] | (977.7) | [2] | |
Operating profit | 1,431.4 | 1,908.2 | [2] | 2,063.1 | [2] | |
Share of results of associates | 43.5 | 113.5 | [2] | 49.8 | [2] | |
Profit before interest and taxation | 1,474.9 | 2,021.7 | [2] | 2,112.9 | [2] | |
Finance income | 104.8 | 95.2 | [2] | 80.4 | [2] | |
Finance costs | (289.3) | (269.8) | [2] | (254.5) | [2] | |
Revaluation of financial instruments | 172.9 | 262.2 | [2] | (48.3) | [2] | |
Profit before taxation | 1,463.3 | 2,109.3 | [2] | 1,890.5 | [2] | |
Taxation | (323.9) | (197) | [2] | (388.9) | [2] | |
Profit for the year | 1,139.4 | 1,912.3 | [2] | 1,501.6 | [2] | |
Attributable to: | ||||||
Equity holders of the parent | 1,062.9 | 1,816.6 | [2] | 1,400.1 | [2] | |
Non-controlling interests | 76.5 | 95.7 | [2] | 101.5 | [2] | |
Profit for the year | 1,139.4 | 1,912.3 | [2] | 1,501.6 | [2] | |
WPP plc [member] | Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | ||||||
Condensed Consolidating Income Statement Information | ||||||
General and administrative costs | 10.8 | 14.1 | [2] | 13.8 | [2] | |
Operating profit | 10.8 | 14.1 | [2] | 13.8 | [2] | |
Share of results of subsidiaries | 1,179.2 | 1,901.2 | [2] | 1,497.4 | [2] | |
Profit before interest and taxation | 1,190 | 1,915.3 | [2] | 1,511.2 | [2] | |
Finance costs | (127.1) | (99.3) | [2] | (102.5) | [2] | |
Revaluation of financial instruments | [2] | 0.6 | (8.6) | |||
Profit before taxation | 1,062.9 | 1,816.6 | [2] | 1,400.1 | [2] | |
Profit for the year | 1,062.9 | 1,816.6 | [2] | 1,400.1 | [2] | |
Attributable to: | ||||||
Equity holders of the parent | 1,062.9 | 1,816.6 | [2] | 1,400.1 | [2] | |
Profit for the year | 1,062.9 | 1,816.6 | [2] | 1,400.1 | [2] | |
Subsidiary Guarantors [member] | Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | ||||||
Condensed Consolidating Income Statement Information | ||||||
General and administrative costs | (305.8) | 74.7 | [2] | (828.2) | [2] | |
Operating profit | (305.8) | 74.7 | [2] | (828.2) | [2] | |
Share of results of subsidiaries | 1,710.2 | 2,016.5 | [2] | 2,518.2 | [2] | |
Profit before interest and taxation | 1,404.4 | 2,091.2 | [2] | 1,690 | [2] | |
Finance income | 27.8 | 24.5 | [2] | 28.8 | [2] | |
Finance costs | (248.9) | (221.5) | [2] | (222.1) | [2] | |
Profit before taxation | 1,183.3 | 1,894.2 | [2] | 1,496.7 | [2] | |
Taxation | (4.1) | 7 | [2] | 0.7 | [2] | |
Profit for the year | 1,179.2 | 1,901.2 | [2] | 1,497.4 | [2] | |
Attributable to: | ||||||
Equity holders of the parent | 1,179.2 | 1,901.2 | [2] | 1,497.4 | [2] | |
Profit for the year | 1,179.2 | 1,901.2 | [2] | 1,497.4 | [2] | |
WPP Finance 2010 [member] | Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | ||||||
Condensed Consolidating Income Statement Information | ||||||
General and administrative costs | [2] | (0.1) | ||||
Operating profit | [2] | (0.1) | ||||
Profit before interest and taxation | [2] | (0.1) | ||||
Finance income | 102.3 | 110.6 | [2] | 121.1 | [2] | |
Finance costs | (103.1) | (103.4) | [2] | (98.8) | [2] | |
Revaluation of financial instruments | (1.1) | (5.4) | [2] | 7 | [2] | |
Profit before taxation | (1.9) | 1.8 | [2] | 29.2 | [2] | |
Profit for the year | (1.9) | 1.8 | [2] | 29.2 | [2] | |
Attributable to: | ||||||
Equity holders of the parent | (1.9) | 1.8 | [2] | 29.2 | [2] | |
Profit for the year | (1.9) | 1.8 | [2] | 29.2 | [2] | |
Other Subsidiaries [member] | Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | ||||||
Condensed Consolidating Income Statement Information | ||||||
Revenue | 15,602.4 | 15,804.2 | [2] | 14,887.3 | [2] | |
Costs of services | (12,663.5) | (12,629) | [2] | (11,846.5) | [2] | |
Gross profit | 2,938.9 | 3,175.2 | [2] | 3,040.8 | [2] | |
General and administrative costs | (1,212.5) | (1,355.8) | [2] | (163.2) | [2] | |
Operating profit | 1,726.4 | 1,819.4 | [2] | 2,877.6 | [2] | |
Share of results of associates | 43.5 | 113.5 | [2] | 49.8 | [2] | |
Profit before interest and taxation | 1,769.9 | 1,932.9 | [2] | 2,927.4 | [2] | |
Finance income | 300.6 | 262.8 | [2] | 231.9 | [2] | |
Finance costs | (136.1) | (148.3) | [2] | (132.5) | [2] | |
Revaluation of financial instruments | 174 | 267 | [2] | (46.7) | [2] | |
Profit before taxation | 2,108.4 | 2,314.4 | [2] | 2,980.1 | [2] | |
Taxation | (319.8) | (204) | [2] | (389.6) | [2] | |
Profit for the year | 1,788.6 | 2,110.4 | [2] | 2,590.5 | [2] | |
Attributable to: | ||||||
Equity holders of the parent | 1,712.1 | 2,014.7 | [2] | 2,489 | [2] | |
Non-controlling interests | 76.5 | 95.7 | [2] | 101.5 | [2] | |
Profit for the year | 1,788.6 | 2,110.4 | [2] | 2,590.5 | [2] | |
Reclassifications/Eliminations [member] | Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | ||||||
Condensed Consolidating Income Statement Information | ||||||
Share of results of subsidiaries | (2,889.4) | (3,917.7) | [2] | (4,015.6) | [2] | |
Profit before interest and taxation | (2,889.4) | (3,917.7) | [2] | (4,015.6) | [2] | |
Finance income | (325.9) | (302.7) | [2] | (301.4) | [2] | |
Finance costs | 325.9 | 302.7 | [2] | 301.4 | [2] | |
Profit before taxation | (2,889.4) | (3,917.7) | [2] | (4,015.6) | [2] | |
Profit for the year | (2,889.4) | (3,917.7) | [2] | (4,015.6) | [2] | |
Attributable to: | ||||||
Equity holders of the parent | (2,889.4) | (3,917.7) | [2] | (4,015.6) | [2] | |
Profit for the year | £ (2,889.4) | £ (3,917.7) | [2] | £ (4,015.6) | [2] | |
[1] | Intersegment sales have not been separately disclosed as they are not material. | |||||
[2] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Condensed consolidating finan_5
Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors - Condensed Consolidating Statement of Comprehensive Income (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Condensed consolidating statement of comprehensive income | |||||
Profit for the year | £ 1,139.4 | £ 1,912.3 | [1] | £ 1,501.6 | [1] |
Items that may be reclassified subsequently to profit or loss: | |||||
Exchange adjustments on foreign currency net investments | 78.9 | (465.2) | 1,378 | ||
Gain/(loss) on revaluation of available for sale investments | 32.1 | (93.1) | |||
Items that may be reclassified subsequently to profit or loss | 78.9 | (433.1) | 1,284.9 | ||
Items that will not be reclassified subsequently to profit or loss: | |||||
Actuarial gain/(loss) on defined benefit pension plans | 8.9 | 17 | (15.9) | ||
Deferred tax on defined benefit pension plans | (0.7) | (24.6) | (0.4) | ||
Movements on equity investments held at fair value through other comprehensive income | (247.9) | ||||
Items that will not be reclassified subsequently to profit or loss | (239.7) | (7.6) | (16.3) | ||
Other comprehensive (loss)/income for the year | (160.8) | (440.7) | 1,268.6 | ||
Total comprehensive income/(loss) for the year | 978.6 | 1,471.6 | 2,770.2 | ||
Attributable to: | |||||
Equity holders of the parent | 893.1 | 1,395.6 | 2,600.6 | ||
Non-controlling interests | 85.5 | 76 | 169.6 | ||
Total comprehensive income for the year | 978.6 | 1,471.6 | 2,770.2 | ||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | |||||
Condensed consolidating statement of comprehensive income | |||||
Profit for the year | 1,139.4 | 1,912.3 | [1] | 1,501.6 | [1] |
Items that may be reclassified subsequently to profit or loss: | |||||
Exchange adjustments on foreign currency net investments | 78.9 | (465.2) | 1,378 | ||
Gain/(loss) on revaluation of available for sale investments | 32.1 | (93.1) | |||
Items that may be reclassified subsequently to profit or loss | 78.9 | (433.1) | 1,284.9 | ||
Items that will not be reclassified subsequently to profit or loss: | |||||
Actuarial gain/(loss) on defined benefit pension plans | 8.9 | 17 | (15.9) | ||
Deferred tax on defined benefit pension plans | (0.7) | (24.6) | (0.4) | ||
Movements on equity investments held at fair value through other comprehensive income | (247.9) | ||||
Items that will not be reclassified subsequently to profit or loss | (239.7) | (7.6) | (16.3) | ||
Other comprehensive (loss)/income for the year | (160.8) | (440.7) | 1,268.6 | ||
Total comprehensive income/(loss) for the year | 978.6 | 1,471.6 | 2,770.2 | ||
Attributable to: | |||||
Equity holders of the parent | 893.1 | 1,395.6 | 2,600.6 | ||
Non-controlling interests | 85.5 | 76 | 169.6 | ||
Total comprehensive income for the year | 978.6 | 1,471.6 | 2,770.2 | ||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | WPP plc [member] | |||||
Condensed consolidating statement of comprehensive income | |||||
Profit for the year | 1,062.9 | 1,816.6 | [1] | 1,400.1 | [1] |
Items that may be reclassified subsequently to profit or loss: | |||||
Exchange adjustments on foreign currency net investments | 69.9 | (445.5) | 1,309.9 | ||
Gain/(loss) on revaluation of available for sale investments | 32.1 | (93.1) | |||
Items that may be reclassified subsequently to profit or loss | 69.9 | (413.4) | 1,216.8 | ||
Items that will not be reclassified subsequently to profit or loss: | |||||
Actuarial gain/(loss) on defined benefit pension plans | 8.9 | 17 | (15.9) | ||
Deferred tax on defined benefit pension plans | (0.7) | (24.6) | (0.4) | ||
Movements on equity investments held at fair value through other comprehensive income | (247.9) | ||||
Items that will not be reclassified subsequently to profit or loss | (239.7) | (7.6) | (16.3) | ||
Other comprehensive (loss)/income for the year | (169.8) | (421) | 1,200.5 | ||
Total comprehensive income/(loss) for the year | 893.1 | 1,395.6 | 2,600.6 | ||
Attributable to: | |||||
Equity holders of the parent | 893.1 | 1,395.6 | 2,600.6 | ||
Total comprehensive income for the year | 893.1 | 1,395.6 | 2,600.6 | ||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | Subsidiary Guarantors [member] | |||||
Condensed consolidating statement of comprehensive income | |||||
Profit for the year | 1,179.2 | 1,901.2 | [1] | 1,497.4 | [1] |
Items that may be reclassified subsequently to profit or loss: | |||||
Exchange adjustments on foreign currency net investments | 69.9 | (445.5) | 1,309.9 | ||
Gain/(loss) on revaluation of available for sale investments | 32.1 | (93.1) | |||
Items that may be reclassified subsequently to profit or loss | 69.9 | (413.4) | 1,216.8 | ||
Items that will not be reclassified subsequently to profit or loss: | |||||
Actuarial gain/(loss) on defined benefit pension plans | 8.9 | 17 | (15.9) | ||
Deferred tax on defined benefit pension plans | (0.7) | (24.6) | (0.4) | ||
Movements on equity investments held at fair value through other comprehensive income | (247.9) | ||||
Items that will not be reclassified subsequently to profit or loss | (239.7) | (7.6) | (16.3) | ||
Other comprehensive (loss)/income for the year | (169.8) | (421) | 1,200.5 | ||
Total comprehensive income/(loss) for the year | 1,009.4 | 1,480.2 | 2,697.9 | ||
Attributable to: | |||||
Equity holders of the parent | 1,009.4 | 1,480.2 | 2,697.9 | ||
Total comprehensive income for the year | 1,009.4 | 1,480.2 | 2,697.9 | ||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | WPP Finance 2010 [member] | |||||
Condensed consolidating statement of comprehensive income | |||||
Profit for the year | (1.9) | 1.8 | [1] | 29.2 | [1] |
Items that may be reclassified subsequently to profit or loss: | |||||
Exchange adjustments on foreign currency net investments | 0.6 | (0.6) | (1.2) | ||
Items that may be reclassified subsequently to profit or loss | 0.6 | (0.6) | (1.2) | ||
Items that will not be reclassified subsequently to profit or loss: | |||||
Other comprehensive (loss)/income for the year | 0.6 | (0.6) | (1.2) | ||
Total comprehensive income/(loss) for the year | (1.3) | 1.2 | 28 | ||
Attributable to: | |||||
Equity holders of the parent | (1.3) | 1.2 | 28 | ||
Total comprehensive income for the year | (1.3) | 1.2 | 28 | ||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | Other Subsidiaries [member] | |||||
Condensed consolidating statement of comprehensive income | |||||
Profit for the year | 1,788.6 | 2,110.4 | [1] | 2,590.5 | [1] |
Items that may be reclassified subsequently to profit or loss: | |||||
Exchange adjustments on foreign currency net investments | 78.3 | (464.6) | 1,379.2 | ||
Gain/(loss) on revaluation of available for sale investments | 32.1 | (93.1) | |||
Items that may be reclassified subsequently to profit or loss | 78.3 | (432.5) | 1,286.1 | ||
Items that will not be reclassified subsequently to profit or loss: | |||||
Actuarial gain/(loss) on defined benefit pension plans | 8.9 | 17 | (15.9) | ||
Deferred tax on defined benefit pension plans | (0.7) | (24.6) | (0.4) | ||
Movements on equity investments held at fair value through other comprehensive income | (247.9) | ||||
Items that will not be reclassified subsequently to profit or loss | (239.7) | (7.6) | (16.3) | ||
Other comprehensive (loss)/income for the year | (161.4) | (440.1) | 1,269.8 | ||
Total comprehensive income/(loss) for the year | 1,627.2 | 1,670.3 | 3,860.3 | ||
Attributable to: | |||||
Equity holders of the parent | 1,541.7 | 1,594.3 | 3,690.7 | ||
Non-controlling interests | 85.5 | 76 | 169.6 | ||
Total comprehensive income for the year | 1,627.2 | 1,670.3 | 3,860.3 | ||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | Reclassifications/Eliminations [member] | |||||
Condensed consolidating statement of comprehensive income | |||||
Profit for the year | (2,889.4) | (3,917.7) | [1] | (4,015.6) | [1] |
Items that may be reclassified subsequently to profit or loss: | |||||
Exchange adjustments on foreign currency net investments | (139.8) | 891 | (2,619.8) | ||
Gain/(loss) on revaluation of available for sale investments | (64.2) | 186.2 | |||
Items that may be reclassified subsequently to profit or loss | (139.8) | 826.8 | (2,433.6) | ||
Items that will not be reclassified subsequently to profit or loss: | |||||
Actuarial gain/(loss) on defined benefit pension plans | (17.8) | (34) | 31.8 | ||
Deferred tax on defined benefit pension plans | 1.4 | 49.2 | 0.8 | ||
Movements on equity investments held at fair value through other comprehensive income | 495.8 | ||||
Items that will not be reclassified subsequently to profit or loss | 479.4 | 15.2 | 32.6 | ||
Other comprehensive (loss)/income for the year | 339.6 | 842 | (2,401) | ||
Total comprehensive income/(loss) for the year | (2,549.8) | (3,075.7) | (6,416.6) | ||
Attributable to: | |||||
Equity holders of the parent | (2,549.8) | (3,075.7) | (6,416.6) | ||
Total comprehensive income for the year | £ (2,549.8) | £ (3,075.7) | £ (6,416.6) | ||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Condensed consolidating finan_6
Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors - Condensed Consolidating Cash Flow Statement Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed consolidating cash flow statement information | |||
Net cash inflow/(outflow) from operating activities | £ 1,693.8 | £ 1,408.1 | £ 1,773.8 |
Investing activities | |||
Acquisitions | (298.8) | (477.5) | (719.3) |
Proceeds on disposal of investments and subsidiaries | 849 | 296 | 80.5 |
Purchases of property, plant and equipment | (314.8) | (288.9) | (252.1) |
Purchases of other intangible assets (including capitalised computer software) | (60.4) | (37.3) | (33) |
Proceeds on disposal of property, plant and equipment | 9.5 | 8 | 7.7 |
Net cash inflow/(outflow) from investing activities | 184.5 | (499.7) | (916.2) |
Financing activities | |||
Share option proceeds | 1.2 | 6.4 | 27.2 |
Cash consideration for non-controlling interests | (109.9) | (47.3) | (58.3) |
Share repurchases and buy-backs | (207.1) | (504.2) | (427.4) |
Net (decrease)/increase in borrowings | (440.6) | 599.6 | (22.5) |
Financing and share issue costs | (3.8) | (0.8) | (6.4) |
Equity dividends paid | (747.4) | (751.5) | (616.5) |
Dividends paid to non-controlling interests in subsidiary undertakings | (106.2) | (87.8) | (89.6) |
Net cash (outflow)/inflow from financing activities | (1,613.8) | (785.6) | (1,193.5) |
Net (decrease)/increase in cash and cash equivalents | 264.5 | 122.8 | (335.9) |
Translation of cash and cash equivalents | (61.5) | (27.2) | 291.9 |
Cash and cash equivalents at beginning of year | 1,998.2 | 1,902.6 | 1,946.6 |
Cash and cash equivalents at end of year | 2,201.2 | 1,998.2 | 1,902.6 |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | |||
Condensed consolidating cash flow statement information | |||
Net cash inflow/(outflow) from operating activities | 1,693.8 | 1,408.1 | 1,773.8 |
Investing activities | |||
Acquisitions | (298.8) | (477.5) | (719.3) |
Proceeds on disposal of investments and subsidiaries | 849 | 296 | 80.5 |
Purchases of property, plant and equipment | (314.8) | (288.9) | (252.1) |
Purchases of other intangible assets (including capitalised computer software) | (60.4) | (37.3) | (33) |
Proceeds on disposal of property, plant and equipment | 9.5 | 8 | 7.7 |
Net cash inflow/(outflow) from investing activities | 184.5 | (499.7) | (916.2) |
Financing activities | |||
Share option proceeds | 1.2 | 6.4 | 27.2 |
Cash consideration for non-controlling interests | (109.9) | (47.3) | (58.3) |
Share repurchases and buy-backs | (207.1) | (504.2) | (427.4) |
Net (decrease)/increase in borrowings | (440.6) | 599.6 | (22.5) |
Financing and share issue costs | (3.8) | (0.8) | (6.4) |
Equity dividends paid | (747.4) | (751.5) | (616.5) |
Dividends paid to non-controlling interests in subsidiary undertakings | (106.2) | (87.8) | (89.6) |
Net cash (outflow)/inflow from financing activities | (1,613.8) | (785.6) | (1,193.5) |
Net (decrease)/increase in cash and cash equivalents | 264.5 | 122.8 | (335.9) |
Translation of cash and cash equivalents | (61.5) | (27.2) | 291.9 |
Cash and cash equivalents at beginning of year | 1,998.2 | 1,902.6 | 1,946.6 |
Cash and cash equivalents at end of year | 2,201.2 | 1,998.2 | 1,902.6 |
WPP plc [member] | Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | |||
Condensed consolidating cash flow statement information | |||
Net cash inflow/(outflow) from operating activities | 2,308.8 | 32.9 | 963.1 |
Financing activities | |||
Share option proceeds | 1.2 | 6.4 | 27.2 |
Share repurchases and buy-backs | (104.3) | (289.6) | (274.5) |
Net (decrease)/increase in borrowings | (400) | (392.1) | |
Equity dividends paid | (747.4) | (751.5) | (616.5) |
Net cash (outflow)/inflow from financing activities | (850.5) | (1,434.7) | (1,255.9) |
Net (decrease)/increase in cash and cash equivalents | 1,458.3 | (1,401.8) | (292.8) |
Translation of cash and cash equivalents | (4.7) | (0.9) | (5.7) |
Cash and cash equivalents at beginning of year | (2,627.7) | (1,225) | (926.5) |
Cash and cash equivalents at end of year | (1,174.1) | (2,627.7) | (1,225) |
Subsidiary Guarantors [member] | Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | |||
Condensed consolidating cash flow statement information | |||
Net cash inflow/(outflow) from operating activities | (271.1) | (49.7) | 1,002.2 |
Investing activities | |||
Purchases of property, plant and equipment | (10.4) | (10.4) | (1.1) |
Net cash inflow/(outflow) from investing activities | (10.4) | (10.4) | (1.1) |
Financing activities | |||
Cash consideration for non-controlling interests | (0.3) | (1.4) | (1.3) |
Net cash (outflow)/inflow from financing activities | (0.3) | (1.4) | (1.3) |
Net (decrease)/increase in cash and cash equivalents | (281.8) | (61.5) | 999.8 |
Translation of cash and cash equivalents | (51.5) | 48.4 | (154.6) |
Cash and cash equivalents at beginning of year | (1,636.8) | (1,623.7) | (2,468.9) |
Cash and cash equivalents at end of year | (1,970.1) | (1,636.8) | (1,623.7) |
WPP Finance 2010 [member] | Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | |||
Condensed consolidating cash flow statement information | |||
Net cash inflow/(outflow) from operating activities | 42.9 | (13.6) | 65.5 |
Financing activities | |||
Net (decrease)/increase in borrowings | (58.1) | ||
Net cash (outflow)/inflow from financing activities | (58.1) | ||
Net (decrease)/increase in cash and cash equivalents | (15.2) | (13.6) | 65.5 |
Translation of cash and cash equivalents | (5.4) | 1.3 | (13.1) |
Cash and cash equivalents at beginning of year | (27.4) | (15.1) | (67.5) |
Cash and cash equivalents at end of year | (48) | (27.4) | (15.1) |
Other Subsidiaries [member] | Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | |||
Condensed consolidating cash flow statement information | |||
Net cash inflow/(outflow) from operating activities | (386.8) | 1,438.5 | (257) |
Investing activities | |||
Acquisitions | (298.8) | (477.5) | (719.3) |
Proceeds on disposal of investments and subsidiaries | 849 | 296 | 80.5 |
Purchases of property, plant and equipment | (304.4) | (278.5) | (251) |
Purchases of other intangible assets (including capitalised computer software) | (60.4) | (37.3) | (33) |
Proceeds on disposal of property, plant and equipment | 9.5 | 8 | 7.7 |
Net cash inflow/(outflow) from investing activities | 194.9 | (489.3) | (915.1) |
Financing activities | |||
Cash consideration for non-controlling interests | (109.6) | (45.9) | (57) |
Share repurchases and buy-backs | (102.8) | (214.6) | (152.9) |
Net (decrease)/increase in borrowings | (382.5) | 999.6 | 369.6 |
Financing and share issue costs | (3.8) | (0.8) | (6.4) |
Dividends paid to non-controlling interests in subsidiary undertakings | (106.2) | (87.8) | (89.6) |
Net cash (outflow)/inflow from financing activities | (704.9) | 650.5 | 63.7 |
Net (decrease)/increase in cash and cash equivalents | (896.8) | 1,599.7 | (1,108.4) |
Translation of cash and cash equivalents | 0.1 | (76) | 465.3 |
Cash and cash equivalents at beginning of year | 6,290.1 | 4,766.4 | 5,409.5 |
Cash and cash equivalents at end of year | £ 5,393.4 | £ 6,290.1 | £ 4,766.4 |
Condensed consolidating finan_7
Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors - Condensed Consolidating Balance Sheet Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-current assets | |||||
Goodwill | £ 13,202.8 | £ 12,952.9 | [1] | £ 13,214.3 | |
Other | 1,842 | 2,018.4 | [1] | 2,217.3 | |
Property, plant and equipment | 1,083 | 979.5 | [1] | 968.7 | |
Interests in associates and joint ventures | 796.8 | 1,065.2 | [1] | 1,069.4 | |
Other investments | 666.7 | 1,153.5 | [1] | 1,310.3 | |
Deferred tax assets | 153 | 160.3 | [1] | ||
Trade and other receivables | 180 | 176.2 | [1] | ||
Non-current assets | 17,924.3 | 18,506 | [1] | ||
Current assets | |||||
Corporate income tax recoverable | 198.7 | 234.7 | [1] | ||
Trade and other receivables | 13,101.5 | 12,530.7 | [1] | ||
Cash and short-term deposits | 2,643.2 | 2,391.4 | [1] | ||
Current assets | 15,943.4 | 15,156.8 | [1] | ||
Current liabilities | |||||
Trade and other payables | (15,038.4) | (14,241.1) | [1] | ||
Corporate income tax payable | (545.9) | (649.3) | [1] | ||
Bank overdrafts, bonds and bank loans | (1,025.1) | (624.1) | [1] | ||
Current liabilities | (16,609.4) | (15,514.5) | [1] | ||
Net current (liabilities)/assets | (666) | (357.7) | [1] | ||
Total assets less current liabilities | 17,258.3 | 18,148.3 | [1] | ||
Non-current liabilities | |||||
Bonds and bank loans | (5,634.8) | (6,250.4) | [1] | ||
Trade and other payables | (841.4) | (992.8) | [1] | ||
Deferred tax liabilities | (479.5) | (513.7) | [1] | ||
Provision for post-employment benefits | (184.3) | (206.3) | [1] | ||
Provisions for liabilities and charges | (311.7) | (229) | [1] | ||
Non-current liabilities | (7,451.7) | (8,192.2) | [1] | ||
Net assets | 9,806.6 | 9,956.1 | [1] | ||
Attributable to: | |||||
Equity shareholders' funds | 9,382.2 | 9,487.3 | [1] | ||
Non-controlling interests | 424.4 | 468.8 | [1] | ||
Total equity | 9,806.6 | 9,956.1 | [1] | £ 9,761.7 | £ 8,009.9 |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | |||||
Non-current assets | |||||
Goodwill | 13,202.8 | 12,952.9 | |||
Other | 1,842 | 2,018.4 | |||
Property, plant and equipment | 1,083 | 979.5 | |||
Interests in associates and joint ventures | 796.8 | 1,065.2 | |||
Other investments | 666.7 | 1,153.5 | |||
Deferred tax assets | 153 | 160.3 | |||
Trade and other receivables | 180 | 176.2 | |||
Non-current assets | 17,924.3 | 18,506 | |||
Current assets | |||||
Corporate income tax recoverable | 198.7 | 234.7 | |||
Trade and other receivables | 13,101.5 | 12,530.7 | |||
Cash and short-term deposits | 2,643.2 | 2,391.4 | |||
Current assets | 15,943.4 | 15,156.8 | |||
Current liabilities | |||||
Trade and other payables | (15,038.4) | (14,241.1) | |||
Corporate income tax payable | (545.9) | (649.3) | |||
Bank overdrafts, bonds and bank loans | (1,025.1) | (624.1) | |||
Current liabilities | (16,609.4) | (15,514.5) | |||
Net current (liabilities)/assets | (666) | (357.7) | |||
Total assets less current liabilities | 17,258.3 | 18,148.3 | |||
Non-current liabilities | |||||
Bonds and bank loans | (5,634.8) | (6,250.4) | |||
Trade and other payables | (841.4) | (992.8) | |||
Deferred tax liabilities | (479.5) | (513.7) | |||
Provision for post-employment benefits | (184.3) | (206.3) | |||
Provisions for liabilities and charges | (311.7) | (229) | |||
Non-current liabilities | (7,451.7) | (8,192.2) | |||
Net assets | 9,806.6 | 9,956.1 | |||
Attributable to: | |||||
Equity shareholders' funds | 9,382.2 | 9,487.3 | |||
Non-controlling interests | 424.4 | 468.8 | |||
Total equity | 9,806.6 | 9,956.1 | |||
WPP plc [member] | Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | |||||
Non-current assets | |||||
Investment in subsidiaries | 15,463.9 | 14,638.1 | |||
Non-current assets | 15,463.9 | 14,638.1 | |||
Current assets | |||||
Trade and other receivables | 0.6 | 0.3 | |||
Intercompany receivables | 1,675.6 | 1,661.4 | |||
Current assets | 1,676.2 | 1,661.7 | |||
Current liabilities | |||||
Trade and other payables | (3.7) | (16.9) | |||
Intercompany payables | (5,190.3) | (2,808.3) | |||
Bank overdrafts, bonds and bank loans | (1,174.1) | (2,627.7) | |||
Current liabilities | (6,368.1) | (5,452.9) | |||
Net current (liabilities)/assets | (4,691.9) | (3,791.2) | |||
Total assets less current liabilities | 10,772 | 10,846.9 | |||
Non-current liabilities | |||||
Intercompany payables | (1,389.8) | (1,359.6) | |||
Non-current liabilities | (1,389.8) | (1,359.6) | |||
Net assets | 9,382.2 | 9,487.3 | |||
Attributable to: | |||||
Equity shareholders' funds | 9,382.2 | 9,487.3 | |||
Total equity | 9,382.2 | 9,487.3 | |||
Subsidiary Guarantors [member] | Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | |||||
Non-current assets | |||||
Property, plant and equipment | 26.1 | 16.5 | |||
Investment in subsidiaries | 29,497.8 | 27,915.3 | |||
Intercompany receivables | 205.4 | 203.3 | |||
Non-current assets | 29,729.3 | 28,135.1 | |||
Current assets | |||||
Trade and other receivables | 497.9 | 457.3 | |||
Intercompany receivables | 1,720.6 | 1,713.8 | |||
Cash and short-term deposits | 21.1 | 235 | |||
Current assets | 2,239.6 | 2,406.1 | |||
Current liabilities | |||||
Trade and other payables | (57.5) | (113.9) | |||
Intercompany payables | (6,250.5) | (5,780.2) | |||
Bank overdrafts, bonds and bank loans | (1,991.2) | (1,871.8) | |||
Current liabilities | (8,299.2) | (7,765.9) | |||
Net current (liabilities)/assets | (6,059.6) | (5,359.8) | |||
Total assets less current liabilities | 23,669.7 | 22,775.3 | |||
Non-current liabilities | |||||
Intercompany payables | (8,205.8) | (8,137.2) | |||
Non-current liabilities | (8,205.8) | (8,137.2) | |||
Net assets | 15,463.9 | 14,638.1 | |||
Attributable to: | |||||
Equity shareholders' funds | 15,463.9 | 14,638.1 | |||
Total equity | 15,463.9 | 14,638.1 | |||
WPP Finance 2010 [member] | Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | |||||
Non-current assets | |||||
Trade and other receivables | 1.6 | ||||
Intercompany receivables | 2,182.9 | 2,078.3 | |||
Non-current assets | 2,182.9 | 2,079.9 | |||
Current assets | |||||
Trade and other receivables | 0.1 | 0.1 | |||
Intercompany receivables | 55.2 | 65.7 | |||
Cash and short-term deposits | 41.4 | ||||
Current assets | 96.7 | 65.8 | |||
Current liabilities | |||||
Trade and other payables | (21.6) | (19.6) | |||
Intercompany payables | (0.9) | ||||
Bank overdrafts, bonds and bank loans | (89.4) | (27.4) | |||
Current liabilities | (111.9) | (47) | |||
Net current (liabilities)/assets | (15.2) | 18.8 | |||
Total assets less current liabilities | 2,167.7 | 2,098.7 | |||
Non-current liabilities | |||||
Bonds and bank loans | (2,151.8) | (2,087.1) | |||
Trade and other payables | (5.5) | ||||
Non-current liabilities | (2,157.3) | (2,087.1) | |||
Net assets | 10.4 | 11.6 | |||
Attributable to: | |||||
Equity shareholders' funds | 10.4 | 11.6 | |||
Total equity | 10.4 | 11.6 | |||
Other Subsidiaries [member] | Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | |||||
Non-current assets | |||||
Goodwill | 13,202.8 | 12,952.9 | |||
Other | 1,842 | 2,018.4 | |||
Property, plant and equipment | 1,056.9 | 963 | |||
Interests in associates and joint ventures | 796.8 | 1,065.2 | |||
Other investments | 666.7 | 1,153.5 | |||
Deferred tax assets | 153 | 160.3 | |||
Trade and other receivables | 180 | 174.6 | |||
Intercompany receivables | 7,657.7 | 7,649.3 | |||
Non-current assets | 25,555.9 | 26,137.2 | |||
Current assets | |||||
Corporate income tax recoverable | 198.7 | 234.7 | |||
Trade and other receivables | 12,602.9 | 12,073 | |||
Intercompany receivables | 8,129.9 | 5,268.8 | |||
Cash and short-term deposits | 5,835.4 | 6,683.5 | |||
Current assets | 26,766.9 | 24,260 | |||
Current liabilities | |||||
Trade and other payables | (14,955.6) | (14,090.7) | |||
Intercompany payables | (139.6) | (121.2) | |||
Corporate income tax payable | (545.9) | (649.3) | |||
Bank overdrafts, bonds and bank loans | (1,025.1) | (624.3) | |||
Current liabilities | (16,666.2) | (15,485.5) | |||
Net current (liabilities)/assets | 10,100.7 | 8,774.5 | |||
Total assets less current liabilities | 35,656.6 | 34,911.7 | |||
Non-current liabilities | |||||
Bonds and bank loans | (3,483) | (4,163.3) | |||
Trade and other payables | (835.9) | (992.8) | |||
Intercompany payables | (450.4) | (434.1) | |||
Deferred tax liabilities | (479.5) | (513.7) | |||
Provision for post-employment benefits | (184.3) | (206.3) | |||
Provisions for liabilities and charges | (311.7) | (229) | |||
Non-current liabilities | (5,744.8) | (6,539.2) | |||
Net assets | 29,911.8 | 28,372.5 | |||
Attributable to: | |||||
Equity shareholders' funds | 29,487.4 | 27,903.7 | |||
Non-controlling interests | 424.4 | 468.8 | |||
Total equity | 29,911.8 | 28,372.5 | |||
Reclassifications/Eliminations [member] | Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | |||||
Non-current assets | |||||
Investment in subsidiaries | (44,961.7) | (42,553.4) | |||
Intercompany receivables | (10,046) | (9,930.9) | |||
Non-current assets | (55,007.7) | (52,484.3) | |||
Current assets | |||||
Intercompany receivables | (11,581.3) | (8,709.7) | |||
Cash and short-term deposits | (3,254.7) | (4,527.1) | |||
Current assets | (14,836) | (13,236.8) | |||
Current liabilities | |||||
Intercompany payables | 11,581.3 | 8,709.7 | |||
Bank overdrafts, bonds and bank loans | 3,254.7 | 4,527.1 | |||
Current liabilities | 14,836 | 13,236.8 | |||
Total assets less current liabilities | (55,007.7) | (52,484.3) | |||
Non-current liabilities | |||||
Intercompany payables | 10,046 | 9,930.9 | |||
Non-current liabilities | 10,046 | 9,930.9 | |||
Net assets | (44,961.7) | (42,553.4) | |||
Attributable to: | |||||
Equity shareholders' funds | (44,961.7) | (42,553.4) | |||
Total equity | £ (44,961.7) | £ (42,553.4) | |||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Condensed consolidating finan_8
Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as subsidiary guarantors - Condensed Consolidating Balance Sheet Information (Parenthetical) (Detail) £ in Millions | Dec. 31, 2017GBP (£) |
Guarantor Subsidiaries and Other Subsidiaries [member] | Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited, and WPP Jubilee Limited as Subsidiary Guarantors [member] | |
Disclosure of detailed information of condensed consolidating financial information [line items] | |
Restatement for intercompany receivables and intercompany payables | £ 2,540.2 |
Condensed consolidating finan_9
Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors - Additional Information (Detail) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) |
Disclosure of detailed information of condensed consolidating financial information [line items] | ||
Ownership percentage in subsidiaries | 100.00% | 100.00% |
US$ bonds due September 2024 [member] | ||
Disclosure of detailed information of condensed consolidating financial information [line items] | ||
Bond amount | $ 750,000,000 | $ 750,000,000 |
Interest rate | 3.75% | 3.75% |
US$ bonds due November 2043 [member] | ||
Disclosure of detailed information of condensed consolidating financial information [line items] | ||
Bond amount | $ 500,000,000 | $ 500,000,000 |
Interest rate | 5.625% | 5.625% |
Outstanding bond amount | $ 450,000,000 | $ 450,000,000 |
Bonds repayment amount | $ 50,000,000 | $ 50,000,000 |
Condensed consolidating fina_10
Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors - Condensed Consolidating Income Statement (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Condensed Consolidating Income Statement Information | ||||||
Revenue | [1],[2] | £ 15,602.4 | £ 15,804.2 | £ 14,887.3 | ||
Costs of services | (12,663.5) | (12,629) | [2] | (11,846.5) | [2] | |
Gross profit | 2,938.9 | 3,175.2 | [2] | 3,040.8 | [2] | |
General and administrative costs | (1,507.5) | (1,267) | [2] | (977.7) | [2] | |
Operating profit/(loss) | 1,431.4 | 1,908.2 | [2] | 2,063.1 | [2] | |
Share of results of associates | 43.5 | 113.5 | [2] | 49.8 | [2] | |
Profit before interest and taxation | 1,474.9 | 2,021.7 | [2] | 2,112.9 | [2] | |
Finance income | 104.8 | 95.2 | [2] | 80.4 | [2] | |
Finance costs | (289.3) | (269.8) | [2] | (254.5) | [2] | |
Revaluation of financial instruments | 172.9 | 262.2 | [2] | (48.3) | [2] | |
Profit before taxation | 1,463.3 | 2,109.3 | [2] | 1,890.5 | [2] | |
Taxation | (323.9) | (197) | [2] | (388.9) | [2] | |
Profit for the year | 1,139.4 | 1,912.3 | [2] | 1,501.6 | [2] | |
Attributable to: | ||||||
Equity holders of the parent | 1,062.9 | 1,816.6 | [2] | 1,400.1 | [2] | |
Non-controlling interests | 76.5 | 95.7 | [2] | 101.5 | [2] | |
Profit for the year | 1,139.4 | 1,912.3 | [2] | 1,501.6 | [2] | |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | ||||||
Condensed Consolidating Income Statement Information | ||||||
Revenue | 15,602.4 | 15,804.2 | [2] | 14,887.3 | [2] | |
Costs of services | (12,663.5) | (12,629) | [2] | (11,846.5) | [2] | |
Gross profit | 2,938.9 | 3,175.2 | [2] | 3,040.8 | [2] | |
General and administrative costs | (1,507.5) | (1,267) | [2] | (977.7) | [2] | |
Operating profit/(loss) | 1,431.4 | 1,908.2 | [2] | 2,063.1 | [2] | |
Share of results of associates | 43.5 | 113.5 | [2] | 49.8 | [2] | |
Profit before interest and taxation | 1,474.9 | 2,021.7 | [2] | 2,112.9 | [2] | |
Finance income | 104.8 | 95.2 | [2] | 80.4 | [2] | |
Finance costs | (289.3) | (269.8) | [2] | (254.5) | [2] | |
Revaluation of financial instruments | 172.9 | 262.2 | [2] | (48.3) | [2] | |
Profit before taxation | 1,463.3 | 2,109.3 | [2] | 1,890.5 | [2] | |
Taxation | (323.9) | (197) | [2] | (388.9) | [2] | |
Profit for the year | 1,139.4 | 1,912.3 | [2] | 1,501.6 | [2] | |
Attributable to: | ||||||
Equity holders of the parent | 1,062.9 | 1,816.6 | [2] | 1,400.1 | [2] | |
Non-controlling interests | 76.5 | 95.7 | [2] | 101.5 | [2] | |
Profit for the year | 1,139.4 | 1,912.3 | [2] | 1,501.6 | [2] | |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | WPP plc [member] | ||||||
Condensed Consolidating Income Statement Information | ||||||
General and administrative costs | 10.8 | 14.1 | [2] | 13.8 | [2] | |
Operating profit/(loss) | 10.8 | 14.1 | [2] | 13.8 | [2] | |
Share of results of subsidiaries | 1,179.2 | 1,901.2 | [2] | 1,497.4 | [2] | |
Profit before interest and taxation | 1,190 | 1,915.3 | [2] | 1,511.2 | [2] | |
Finance costs | (127.1) | (99.3) | [2] | (102.5) | [2] | |
Revaluation of financial instruments | [2] | 0.6 | (8.6) | |||
Profit before taxation | 1,062.9 | 1,816.6 | [2] | 1,400.1 | [2] | |
Profit for the year | 1,062.9 | 1,816.6 | [2] | 1,400.1 | [2] | |
Attributable to: | ||||||
Equity holders of the parent | 1,062.9 | 1,816.6 | [2] | 1,400.1 | [2] | |
Profit for the year | 1,062.9 | 1,816.6 | [2] | 1,400.1 | [2] | |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | Subsidiary Guarantors [member] | ||||||
Condensed Consolidating Income Statement Information | ||||||
General and administrative costs | (305.8) | 74.7 | [2] | (828.2) | [2] | |
Operating profit/(loss) | (305.8) | 74.7 | [2] | (828.2) | [2] | |
Share of results of subsidiaries | 1,710.2 | 2,016.5 | [2] | 2,518.2 | [2] | |
Profit before interest and taxation | 1,404.4 | 2,091.2 | [2] | 1,690 | [2] | |
Finance income | 27.8 | 24.5 | [2] | 28.8 | [2] | |
Finance costs | (248.9) | (221.5) | [2] | (222.1) | [2] | |
Profit before taxation | 1,183.3 | 1,894.2 | [2] | 1,496.7 | [2] | |
Taxation | (4.1) | 7 | [2] | 0.7 | [2] | |
Profit for the year | 1,179.2 | 1,901.2 | [2] | 1,497.4 | [2] | |
Attributable to: | ||||||
Equity holders of the parent | 1,179.2 | 1,901.2 | [2] | 1,497.4 | [2] | |
Profit for the year | 1,179.2 | 1,901.2 | [2] | 1,497.4 | [2] | |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | WPP Finance 2010 [member] | ||||||
Condensed Consolidating Income Statement Information | ||||||
General and administrative costs | [2] | (0.1) | ||||
Operating profit/(loss) | [2] | (0.1) | ||||
Profit before interest and taxation | [2] | (0.1) | ||||
Finance income | 102.3 | 110.6 | [2] | 121.1 | [2] | |
Finance costs | (103.1) | (103.4) | [2] | (98.8) | [2] | |
Revaluation of financial instruments | (1.1) | (5.4) | [2] | 7 | [2] | |
Profit before taxation | (1.9) | 1.8 | [2] | 29.2 | [2] | |
Profit for the year | (1.9) | 1.8 | [2] | 29.2 | [2] | |
Attributable to: | ||||||
Equity holders of the parent | (1.9) | 1.8 | [2] | 29.2 | [2] | |
Profit for the year | (1.9) | 1.8 | [2] | 29.2 | [2] | |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | Other Subsidiaries [member] | ||||||
Condensed Consolidating Income Statement Information | ||||||
Revenue | 15,602.4 | 15,804.2 | [2] | 14,887.3 | [2] | |
Costs of services | (12,663.5) | (12,629) | [2] | (11,846.5) | [2] | |
Gross profit | 2,938.9 | 3,175.2 | [2] | 3,040.8 | [2] | |
General and administrative costs | (1,212.5) | (1,355.8) | [2] | (163.2) | [2] | |
Operating profit/(loss) | 1,726.4 | 1,819.4 | [2] | 2,877.6 | [2] | |
Share of results of associates | 43.5 | 113.5 | [2] | 49.8 | [2] | |
Profit before interest and taxation | 1,769.9 | 1,932.9 | [2] | 2,927.4 | [2] | |
Finance income | 300.6 | 262.8 | [2] | 231.9 | [2] | |
Finance costs | (136.1) | (148.3) | [2] | (132.5) | [2] | |
Revaluation of financial instruments | 174 | 267 | [2] | (46.7) | [2] | |
Profit before taxation | 2,108.4 | 2,314.4 | [2] | 2,980.1 | [2] | |
Taxation | (319.8) | (204) | [2] | (389.6) | [2] | |
Profit for the year | 1,788.6 | 2,110.4 | [2] | 2,590.5 | [2] | |
Attributable to: | ||||||
Equity holders of the parent | 1,712.1 | 2,014.7 | [2] | 2,489 | [2] | |
Non-controlling interests | 76.5 | 95.7 | [2] | 101.5 | [2] | |
Profit for the year | 1,788.6 | 2,110.4 | [2] | 2,590.5 | [2] | |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | Reclassifications/Eliminations [member] | ||||||
Condensed Consolidating Income Statement Information | ||||||
Share of results of subsidiaries | (2,889.4) | (3,917.7) | [2] | (4,015.6) | [2] | |
Profit before interest and taxation | (2,889.4) | (3,917.7) | [2] | (4,015.6) | [2] | |
Finance income | (325.9) | (302.7) | [2] | (301.4) | [2] | |
Finance costs | 325.9 | 302.7 | [2] | 301.4 | [2] | |
Profit before taxation | (2,889.4) | (3,917.7) | [2] | (4,015.6) | [2] | |
Profit for the year | (2,889.4) | (3,917.7) | [2] | (4,015.6) | [2] | |
Attributable to: | ||||||
Equity holders of the parent | (2,889.4) | (3,917.7) | [2] | (4,015.6) | [2] | |
Profit for the year | £ (2,889.4) | £ (3,917.7) | [2] | £ (4,015.6) | [2] | |
[1] | Intersegment sales have not been separately disclosed as they are not material. | |||||
[2] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Condensed consolidating fina_11
Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors - Condensed Consolidating Statement of Comprehensive Income (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Condensed consolidating statement of comprehensive income | |||||
Profit for the year | £ 1,139.4 | £ 1,912.3 | [1] | £ 1,501.6 | [1] |
Items that may be reclassified subsequently to profit or loss: | |||||
Exchange adjustments on foreign currency net investments | 78.9 | (465.2) | 1,378 | ||
Gain/(loss) on revaluation of available for sale investments | 32.1 | (93.1) | |||
Items that may be reclassified subsequently to profit or loss | 78.9 | (433.1) | 1,284.9 | ||
Items that will not be reclassified subsequently to profit or loss: | |||||
Actuarial gain/(loss) on defined benefit pension plans | 8.9 | 17 | (15.9) | ||
Deferred tax on defined benefit pension plans | (0.7) | (24.6) | (0.4) | ||
Movements on equity investments held at fair value through other comprehensive income | (247.9) | ||||
Items that will not be reclassified subsequently to profit or loss | (239.7) | (7.6) | (16.3) | ||
Other comprehensive (loss)/income for the period | (160.8) | (440.7) | 1,268.6 | ||
Total comprehensive income for the year | 978.6 | 1,471.6 | 2,770.2 | ||
Attributable to: | |||||
Equity holders of the parent | 893.1 | 1,395.6 | 2,600.6 | ||
Non-controlling interests | 85.5 | 76 | 169.6 | ||
Total comprehensive income for the year | 978.6 | 1,471.6 | 2,770.2 | ||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | |||||
Condensed consolidating statement of comprehensive income | |||||
Profit for the year | 1,139.4 | 1,912.3 | [1] | 1,501.6 | [1] |
Items that may be reclassified subsequently to profit or loss: | |||||
Exchange adjustments on foreign currency net investments | 78.9 | (465.2) | 1,378 | ||
Gain/(loss) on revaluation of available for sale investments | 32.1 | (93.1) | |||
Items that may be reclassified subsequently to profit or loss | 78.9 | (433.1) | 1,284.9 | ||
Items that will not be reclassified subsequently to profit or loss: | |||||
Actuarial gain/(loss) on defined benefit pension plans | 8.9 | 17 | (15.9) | ||
Deferred tax on defined benefit pension plans | (0.7) | (24.6) | (0.4) | ||
Movements on equity investments held at fair value through other comprehensive income | (247.9) | ||||
Items that will not be reclassified subsequently to profit or loss | (239.7) | (7.6) | (16.3) | ||
Other comprehensive (loss)/income for the period | (160.8) | (440.7) | 1,268.6 | ||
Total comprehensive income for the year | 978.6 | 1,471.6 | 2,770.2 | ||
Attributable to: | |||||
Equity holders of the parent | 893.1 | 1,395.6 | 2,600.6 | ||
Non-controlling interests | 85.5 | 76 | 169.6 | ||
Total comprehensive income for the year | 978.6 | 1,471.6 | 2,770.2 | ||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | WPP plc [member] | |||||
Condensed consolidating statement of comprehensive income | |||||
Profit for the year | 1,062.9 | 1,816.6 | [1] | 1,400.1 | [1] |
Items that may be reclassified subsequently to profit or loss: | |||||
Exchange adjustments on foreign currency net investments | 69.9 | (445.5) | 1,309.9 | ||
Gain/(loss) on revaluation of available for sale investments | 32.1 | (93.1) | |||
Items that may be reclassified subsequently to profit or loss | 69.9 | (413.4) | 1,216.8 | ||
Items that will not be reclassified subsequently to profit or loss: | |||||
Actuarial gain/(loss) on defined benefit pension plans | 8.9 | 17 | (15.9) | ||
Deferred tax on defined benefit pension plans | (0.7) | (24.6) | (0.4) | ||
Movements on equity investments held at fair value through other comprehensive income | (247.9) | ||||
Items that will not be reclassified subsequently to profit or loss | (239.7) | (7.6) | (16.3) | ||
Other comprehensive (loss)/income for the period | (169.8) | (421) | 1,200.5 | ||
Total comprehensive income for the year | 893.1 | 1,395.6 | 2,600.6 | ||
Attributable to: | |||||
Equity holders of the parent | 893.1 | 1,395.6 | 2,600.6 | ||
Total comprehensive income for the year | 893.1 | 1,395.6 | 2,600.6 | ||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | Subsidiary Guarantors [member] | |||||
Condensed consolidating statement of comprehensive income | |||||
Profit for the year | 1,179.2 | 1,901.2 | [1] | 1,497.4 | [1] |
Items that may be reclassified subsequently to profit or loss: | |||||
Exchange adjustments on foreign currency net investments | 69.9 | (445.5) | 1,309.9 | ||
Gain/(loss) on revaluation of available for sale investments | 32.1 | (93.1) | |||
Items that may be reclassified subsequently to profit or loss | 69.9 | (413.4) | 1,216.8 | ||
Items that will not be reclassified subsequently to profit or loss: | |||||
Actuarial gain/(loss) on defined benefit pension plans | 8.9 | 17 | (15.9) | ||
Deferred tax on defined benefit pension plans | (0.7) | (24.6) | (0.4) | ||
Movements on equity investments held at fair value through other comprehensive income | (247.9) | ||||
Items that will not be reclassified subsequently to profit or loss | (239.7) | (7.6) | (16.3) | ||
Other comprehensive (loss)/income for the period | (169.8) | (421) | 1,200.5 | ||
Total comprehensive income for the year | 1,009.4 | 1,480.2 | 2,697.9 | ||
Attributable to: | |||||
Equity holders of the parent | 1,009.4 | 1,480.2 | 2,697.9 | ||
Total comprehensive income for the year | 1,009.4 | 1,480.2 | 2,697.9 | ||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | WPP Finance 2010 [member] | |||||
Condensed consolidating statement of comprehensive income | |||||
Profit for the year | (1.9) | 1.8 | [1] | 29.2 | [1] |
Items that may be reclassified subsequently to profit or loss: | |||||
Exchange adjustments on foreign currency net investments | 0.6 | (0.6) | (1.2) | ||
Items that may be reclassified subsequently to profit or loss | 0.6 | (0.6) | (1.2) | ||
Items that will not be reclassified subsequently to profit or loss: | |||||
Other comprehensive (loss)/income for the period | 0.6 | (0.6) | (1.2) | ||
Total comprehensive income for the year | (1.3) | 1.2 | 28 | ||
Attributable to: | |||||
Equity holders of the parent | (1.3) | 1.2 | 28 | ||
Total comprehensive income for the year | (1.3) | 1.2 | 28 | ||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | Other Subsidiaries [member] | |||||
Condensed consolidating statement of comprehensive income | |||||
Profit for the year | 1,788.6 | 2,110.4 | [1] | 2,590.5 | [1] |
Items that may be reclassified subsequently to profit or loss: | |||||
Exchange adjustments on foreign currency net investments | 78.3 | (464.6) | 1,379.2 | ||
Gain/(loss) on revaluation of available for sale investments | 32.1 | (93.1) | |||
Items that may be reclassified subsequently to profit or loss | 78.3 | (432.5) | 1,286.1 | ||
Items that will not be reclassified subsequently to profit or loss: | |||||
Actuarial gain/(loss) on defined benefit pension plans | 8.9 | 17 | (15.9) | ||
Deferred tax on defined benefit pension plans | (0.7) | (24.6) | (0.4) | ||
Movements on equity investments held at fair value through other comprehensive income | (247.9) | ||||
Items that will not be reclassified subsequently to profit or loss | (239.7) | (7.6) | (16.3) | ||
Other comprehensive (loss)/income for the period | (161.4) | (440.1) | 1,269.8 | ||
Total comprehensive income for the year | 1,627.2 | 1,670.3 | 3,860.3 | ||
Attributable to: | |||||
Equity holders of the parent | 1,541.7 | 1,594.3 | 3,690.7 | ||
Non-controlling interests | 85.5 | 76 | 169.6 | ||
Total comprehensive income for the year | 1,627.2 | 1,670.3 | 3,860.3 | ||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | Reclassifications/Eliminations [member] | |||||
Condensed consolidating statement of comprehensive income | |||||
Profit for the year | (2,889.4) | (3,917.7) | [1] | (4,015.6) | [1] |
Items that may be reclassified subsequently to profit or loss: | |||||
Exchange adjustments on foreign currency net investments | (139.8) | 891 | (2,619.8) | ||
Gain/(loss) on revaluation of available for sale investments | (64.2) | 186.2 | |||
Items that may be reclassified subsequently to profit or loss | (139.8) | 826.8 | (2,433.6) | ||
Items that will not be reclassified subsequently to profit or loss: | |||||
Actuarial gain/(loss) on defined benefit pension plans | (17.8) | (34) | 31.8 | ||
Deferred tax on defined benefit pension plans | 1.4 | 49.2 | 0.8 | ||
Movements on equity investments held at fair value through other comprehensive income | 495.8 | ||||
Items that will not be reclassified subsequently to profit or loss | 479.4 | 15.2 | 32.6 | ||
Other comprehensive (loss)/income for the period | 339.6 | 842 | (2,401) | ||
Total comprehensive income for the year | (2,549.8) | (3,075.7) | (6,416.6) | ||
Attributable to: | |||||
Equity holders of the parent | (2,549.8) | (3,075.7) | (6,416.6) | ||
Total comprehensive income for the year | £ (2,549.8) | £ (3,075.7) | £ (6,416.6) | ||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Condensed consolidating fina_12
Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors - Condensed Consolidating Cash Flow Statement (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed consolidating cash flow statement information | |||
Net cash inflow/(outflow) from operating activities | £ 1,693.8 | £ 1,408.1 | £ 1,773.8 |
Investing activities | |||
Acquisitions | (298.8) | (477.5) | (719.3) |
Proceeds on disposal of investments and subsidiaries | 849 | 296 | 80.5 |
Purchases of property, plant and equipment | (314.8) | (288.9) | (252.1) |
Purchases of other intangible assets (including capitalised computer software) | (60.4) | (37.3) | (33) |
Proceeds on disposal of property, plant and equipment | 9.5 | 8 | 7.7 |
Net cash outflow from investing activities | 184.5 | (499.7) | (916.2) |
Financing activities | |||
Share option proceeds | 1.2 | 6.4 | 27.2 |
Cash consideration for non-controlling interests | (109.9) | (47.3) | (58.3) |
Share repurchases and buy-backs | (207.1) | (504.2) | (427.4) |
Net (decrease)/increase in borrowings | (440.6) | 599.6 | (22.5) |
Financing and share issue costs | (3.8) | (0.8) | (6.4) |
Equity dividends paid | (747.4) | (751.5) | (616.5) |
Dividends paid to non-controlling interests in subsidiary undertakings | (106.2) | (87.8) | (89.6) |
Net cash (outflow)/inflow from financing activities | (1,613.8) | (785.6) | (1,193.5) |
Net (decrease)/increase in cash and cash equivalents | 264.5 | 122.8 | (335.9) |
Translation of cash and cash equivalents | (61.5) | (27.2) | 291.9 |
Cash and cash equivalents at beginning of year | 1,998.2 | 1,902.6 | 1,946.6 |
Cash and cash equivalents at end of year | 2,201.2 | 1,998.2 | 1,902.6 |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | |||
Condensed consolidating cash flow statement information | |||
Net cash inflow/(outflow) from operating activities | 1,693.8 | 1,408.1 | 1,773.8 |
Investing activities | |||
Acquisitions | (298.8) | (477.5) | (719.3) |
Proceeds on disposal of investments and subsidiaries | 849 | 296 | 80.5 |
Purchases of property, plant and equipment | (314.8) | (288.9) | (252.1) |
Purchases of other intangible assets (including capitalised computer software) | (60.4) | (37.3) | (33) |
Proceeds on disposal of property, plant and equipment | 9.5 | 8 | 7.7 |
Net cash outflow from investing activities | 184.5 | (499.7) | (916.2) |
Financing activities | |||
Share option proceeds | 1.2 | 6.4 | 27.2 |
Cash consideration for non-controlling interests | (109.9) | (47.3) | (58.3) |
Share repurchases and buy-backs | (207.1) | (504.2) | (427.4) |
Net (decrease)/increase in borrowings | (440.6) | 599.6 | (22.5) |
Financing and share issue costs | (3.8) | (0.8) | (6.4) |
Equity dividends paid | (747.4) | (751.5) | (616.5) |
Dividends paid to non-controlling interests in subsidiary undertakings | (106.2) | (87.8) | (89.6) |
Net cash (outflow)/inflow from financing activities | (1,613.8) | (785.6) | (1,193.5) |
Net (decrease)/increase in cash and cash equivalents | 264.5 | 122.8 | (335.9) |
Translation of cash and cash equivalents | (61.5) | (27.2) | 291.9 |
Cash and cash equivalents at beginning of year | 1,998.2 | 1,902.6 | 1,946.6 |
Cash and cash equivalents at end of year | 2,201.2 | 1,998.2 | 1,902.6 |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | WPP plc [member] | |||
Condensed consolidating cash flow statement information | |||
Net cash inflow/(outflow) from operating activities | 2,308.8 | 32.9 | 963.1 |
Financing activities | |||
Share option proceeds | 1.2 | 6.4 | 27.2 |
Share repurchases and buy-backs | (104.3) | (289.6) | (274.5) |
Net (decrease)/increase in borrowings | (400) | (392.1) | |
Equity dividends paid | (747.4) | (751.5) | (616.5) |
Net cash (outflow)/inflow from financing activities | (850.5) | (1,434.7) | (1,255.9) |
Net (decrease)/increase in cash and cash equivalents | 1,458.3 | (1,401.8) | (292.8) |
Translation of cash and cash equivalents | (4.7) | (0.9) | (5.7) |
Cash and cash equivalents at beginning of year | (2,627.7) | (1,225) | (926.5) |
Cash and cash equivalents at end of year | (1,174.1) | (2,627.7) | (1,225) |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | Subsidiary Guarantors [member] | |||
Condensed consolidating cash flow statement information | |||
Net cash inflow/(outflow) from operating activities | (271.1) | (49.7) | 1,002.2 |
Investing activities | |||
Purchases of property, plant and equipment | (10.4) | (10.4) | (1.1) |
Net cash outflow from investing activities | (10.4) | (10.4) | (1.1) |
Financing activities | |||
Cash consideration for non-controlling interests | (0.3) | (1.4) | (1.3) |
Net cash (outflow)/inflow from financing activities | (0.3) | (1.4) | (1.3) |
Net (decrease)/increase in cash and cash equivalents | (281.8) | (61.5) | 999.8 |
Translation of cash and cash equivalents | (51.5) | 48.4 | (154.6) |
Cash and cash equivalents at beginning of year | (1,640.6) | (1,627.5) | (2,472.7) |
Cash and cash equivalents at end of year | (1,973.9) | (1,640.6) | (1,627.5) |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | WPP Finance 2010 [member] | |||
Condensed consolidating cash flow statement information | |||
Net cash inflow/(outflow) from operating activities | 42.9 | (13.6) | 65.5 |
Financing activities | |||
Net (decrease)/increase in borrowings | (58.1) | ||
Net cash (outflow)/inflow from financing activities | (58.1) | ||
Net (decrease)/increase in cash and cash equivalents | (15.2) | (13.6) | 65.5 |
Translation of cash and cash equivalents | (5.4) | 1.3 | (13.1) |
Cash and cash equivalents at beginning of year | (27.4) | (15.1) | (67.5) |
Cash and cash equivalents at end of year | (48) | (27.4) | (15.1) |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | Other Subsidiaries [member] | |||
Condensed consolidating cash flow statement information | |||
Net cash inflow/(outflow) from operating activities | (386.8) | 1,438.5 | (257) |
Investing activities | |||
Acquisitions | (298.8) | (477.5) | (719.3) |
Proceeds on disposal of investments and subsidiaries | 849 | 296 | 80.5 |
Purchases of property, plant and equipment | (304.4) | (278.5) | (251) |
Purchases of other intangible assets (including capitalised computer software) | (60.4) | (37.3) | (33) |
Proceeds on disposal of property, plant and equipment | 9.5 | 8 | 7.7 |
Net cash outflow from investing activities | 194.9 | (489.3) | (915.1) |
Financing activities | |||
Cash consideration for non-controlling interests | (109.6) | (45.9) | (57) |
Share repurchases and buy-backs | (102.8) | (214.6) | (152.9) |
Net (decrease)/increase in borrowings | (382.5) | 999.6 | 369.6 |
Financing and share issue costs | (3.8) | (0.8) | (6.4) |
Dividends paid to non-controlling interests in subsidiary undertakings | (106.2) | (87.8) | (89.6) |
Net cash (outflow)/inflow from financing activities | (704.9) | 650.5 | 63.7 |
Net (decrease)/increase in cash and cash equivalents | (896.8) | 1,599.7 | (1,108.4) |
Translation of cash and cash equivalents | 0.1 | (76) | 465.3 |
Cash and cash equivalents at beginning of year | 6,293.9 | 4,770.2 | 5,413.3 |
Cash and cash equivalents at end of year | £ 5,397.2 | £ 6,293.9 | £ 4,770.2 |
Condensed consolidating fina_13
Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors - Condensed Consolidating Balance Sheet (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-current assets | |||||
Goodwill | £ 13,202.8 | £ 12,952.9 | [1] | £ 13,214.3 | |
Other | 1,842 | 2,018.4 | [1] | 2,217.3 | |
Property, plant and equipment | 1,083 | 979.5 | [1] | 968.7 | |
Interests in associates and joint ventures | 796.8 | 1,065.2 | [1] | 1,069.4 | |
Other investments | 666.7 | 1,153.5 | [1] | 1,310.3 | |
Deferred tax assets | 153 | 160.3 | [1] | ||
Trade and other receivables | 180 | 176.2 | [1] | ||
Non-current assets | 17,924.3 | 18,506 | [1] | ||
Current assets | |||||
Corporate income tax recoverable | 198.7 | 234.7 | [1] | ||
Trade and other receivables | 13,101.5 | 12,530.7 | [1] | ||
Cash and short-term deposits | 2,643.2 | 2,391.4 | [1] | ||
Current assets | 15,943.4 | 15,156.8 | [1] | ||
Current liabilities | |||||
Trade and other payables | (15,038.4) | (14,241.1) | [1] | ||
Corporate income tax payable | (545.9) | (649.3) | [1] | ||
Bank overdrafts, bonds and bank loans | (1,025.1) | (624.1) | [1] | ||
Current liabilities | (16,609.4) | (15,514.5) | [1] | ||
Net current (liabilities)/assets | (666) | (357.7) | [1] | ||
Total assets less current liabilities | 17,258.3 | 18,148.3 | [1] | ||
Non-current liabilities | |||||
Bonds and bank loans | (5,634.8) | (6,250.4) | [1] | ||
Trade and other payables | (841.4) | (992.8) | [1] | ||
Deferred tax liabilities | (479.5) | (513.7) | [1] | ||
Provision for post-employment benefits | (184.3) | (206.3) | [1] | ||
Provisions for liabilities and charges | (311.7) | (229) | [1] | ||
Non-current liabilities | (7,451.7) | (8,192.2) | [1] | ||
Net assets | 9,806.6 | 9,956.1 | [1] | ||
Attributable to: | |||||
Equity shareholders' funds | 9,382.2 | 9,487.3 | [1] | ||
Non-controlling interests | 424.4 | 468.8 | [1] | ||
Total equity | 9,806.6 | 9,956.1 | [1] | £ 9,761.7 | £ 8,009.9 |
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | |||||
Non-current assets | |||||
Goodwill | 13,202.8 | 12,952.9 | |||
Other | 1,842 | 2,018.4 | |||
Property, plant and equipment | 1,083 | 979.5 | |||
Interests in associates and joint ventures | 796.8 | 1,065.2 | |||
Other investments | 666.7 | 1,153.5 | |||
Deferred tax assets | 153 | 160.3 | |||
Trade and other receivables | 180 | 176.2 | |||
Non-current assets | 17,924.3 | 18,506 | |||
Current assets | |||||
Corporate income tax recoverable | 198.7 | 234.7 | |||
Trade and other receivables | 13,101.5 | 12,530.7 | |||
Cash and short-term deposits | 2,643.2 | 2,391.4 | |||
Current assets | 15,943.4 | 15,156.8 | |||
Current liabilities | |||||
Trade and other payables | (15,038.4) | (14,241.1) | |||
Corporate income tax payable | (545.9) | (649.3) | |||
Bank overdrafts, bonds and bank loans | (1,025.1) | (624.1) | |||
Current liabilities | (16,609.4) | (15,514.5) | |||
Net current (liabilities)/assets | (666) | (357.7) | |||
Total assets less current liabilities | 17,258.3 | 18,148.3 | |||
Non-current liabilities | |||||
Bonds and bank loans | (5,634.8) | (6,250.4) | |||
Trade and other payables | (841.4) | (992.8) | |||
Deferred tax liabilities | (479.5) | (513.7) | |||
Provision for post-employment benefits | (184.3) | (206.3) | |||
Provisions for liabilities and charges | (311.7) | (229) | |||
Non-current liabilities | (7,451.7) | (8,192.2) | |||
Net assets | 9,806.6 | 9,956.1 | |||
Attributable to: | |||||
Equity shareholders' funds | 9,382.2 | 9,487.3 | |||
Non-controlling interests | 424.4 | 468.8 | |||
Total equity | 9,806.6 | 9,956.1 | |||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | WPP plc [member] | |||||
Non-current assets | |||||
Investment in subsidiaries | 15,463.9 | 14,638.1 | |||
Non-current assets | 15,463.9 | 14,638.1 | |||
Current assets | |||||
Trade and other receivables | 0.6 | 0.3 | |||
Intercompany receivables | 1,675.6 | 1,661.4 | |||
Current assets | 1,676.2 | 1,661.7 | |||
Current liabilities | |||||
Trade and other payables | (3.7) | (16.9) | |||
Intercompany payables | (5,190.3) | (2,808.3) | |||
Bank overdrafts, bonds and bank loans | (1,174.1) | (2,627.7) | |||
Current liabilities | (6,368.1) | (5,452.9) | |||
Net current (liabilities)/assets | (4,691.9) | (3,791.2) | |||
Total assets less current liabilities | 10,772 | 10,846.9 | |||
Non-current liabilities | |||||
Intercompany payables | (1,389.8) | (1,359.6) | |||
Non-current liabilities | (1,389.8) | (1,359.6) | |||
Net assets | 9,382.2 | 9,487.3 | |||
Attributable to: | |||||
Equity shareholders' funds | 9,382.2 | 9,487.3 | |||
Total equity | 9,382.2 | 9,487.3 | |||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | Subsidiary Guarantors [member] | |||||
Non-current assets | |||||
Property, plant and equipment | 26.1 | 16.5 | |||
Investment in subsidiaries | 29,329.2 | 27,746.7 | |||
Intercompany receivables | 205.4 | 203.3 | |||
Non-current assets | 29,560.7 | 27,966.5 | |||
Current assets | |||||
Trade and other receivables | 497.9 | 457.3 | |||
Intercompany receivables | 1,720.6 | 1,713.8 | |||
Cash and short-term deposits | 17.3 | 231.2 | |||
Current assets | 2,235.8 | 2,402.3 | |||
Current liabilities | |||||
Trade and other payables | (57.5) | (113.9) | |||
Intercompany payables | (6,078.1) | (5,607.8) | |||
Bank overdrafts, bonds and bank loans | (1,991.2) | (1,871.8) | |||
Current liabilities | (8,126.8) | (7,593.5) | |||
Net current (liabilities)/assets | (5,891) | (5,191.2) | |||
Total assets less current liabilities | 23,669.7 | 22,775.3 | |||
Non-current liabilities | |||||
Intercompany payables | (8,205.8) | (8,137.2) | |||
Non-current liabilities | (8,205.8) | (8,137.2) | |||
Net assets | 15,463.9 | 14,638.1 | |||
Attributable to: | |||||
Equity shareholders' funds | 15,463.9 | 14,638.1 | |||
Total equity | 15,463.9 | 14,638.1 | |||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | WPP Finance 2010 [member] | |||||
Non-current assets | |||||
Trade and other receivables | 1.6 | ||||
Intercompany receivables | 2,182.9 | 2,078.3 | |||
Non-current assets | 2,182.9 | 2,079.9 | |||
Current assets | |||||
Trade and other receivables | 0.1 | 0.1 | |||
Intercompany receivables | 55.2 | 65.7 | |||
Cash and short-term deposits | 41.4 | ||||
Current assets | 96.7 | 65.8 | |||
Current liabilities | |||||
Trade and other payables | (21.6) | (19.6) | |||
Intercompany payables | (0.9) | ||||
Bank overdrafts, bonds and bank loans | (89.4) | (27.4) | |||
Current liabilities | (111.9) | (47) | |||
Net current (liabilities)/assets | (15.2) | 18.8 | |||
Total assets less current liabilities | 2,167.7 | 2,098.7 | |||
Non-current liabilities | |||||
Bonds and bank loans | (2,151.8) | (2,087.1) | |||
Trade and other payables | (5.5) | ||||
Non-current liabilities | (2,157.3) | (2,087.1) | |||
Net assets | 10.4 | 11.6 | |||
Attributable to: | |||||
Equity shareholders' funds | 10.4 | 11.6 | |||
Total equity | 10.4 | 11.6 | |||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | Other Subsidiaries [member] | |||||
Non-current assets | |||||
Goodwill | 13,202.8 | 12,952.9 | |||
Other | 1,842 | 2,018.4 | |||
Property, plant and equipment | 1,056.9 | 963 | |||
Interests in associates and joint ventures | 796.8 | 1,065.2 | |||
Other investments | 666.7 | 1,153.5 | |||
Deferred tax assets | 153 | 160.3 | |||
Trade and other receivables | 180 | 174.6 | |||
Intercompany receivables | 7,657.7 | 7,649.3 | |||
Non-current assets | 25,555.9 | 26,137.2 | |||
Current assets | |||||
Corporate income tax recoverable | 198.7 | 234.7 | |||
Trade and other receivables | 12,602.9 | 12,073 | |||
Intercompany receivables | 8,130.6 | 5,268.7 | |||
Cash and short-term deposits | 5,839.2 | 6,687.3 | |||
Current assets | 26,771.4 | 24,263.7 | |||
Current liabilities | |||||
Trade and other payables | (14,955.6) | (14,090.7) | |||
Intercompany payables | (312.7) | (293.5) | |||
Corporate income tax payable | (545.9) | (649.3) | |||
Bank overdrafts, bonds and bank loans | (1,025.1) | (624.3) | |||
Current liabilities | (16,839.3) | (15,657.8) | |||
Net current (liabilities)/assets | 9,932.1 | 8,605.9 | |||
Total assets less current liabilities | 35,488 | 34,743.1 | |||
Non-current liabilities | |||||
Bonds and bank loans | (3,483) | (4,163.3) | |||
Trade and other payables | (835.9) | (992.8) | |||
Intercompany payables | (450.4) | (434.1) | |||
Deferred tax liabilities | (479.5) | (513.7) | |||
Provision for post-employment benefits | (184.3) | (206.3) | |||
Provisions for liabilities and charges | (311.7) | (229) | |||
Non-current liabilities | (5,744.8) | (6,539.2) | |||
Net assets | 29,743.2 | 28,203.9 | |||
Attributable to: | |||||
Equity shareholders' funds | 29,318.8 | 27,735.1 | |||
Non-controlling interests | 424.4 | 468.8 | |||
Total equity | 29,743.2 | 28,203.9 | |||
Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | Reclassifications/Eliminations [member] | |||||
Non-current assets | |||||
Investment in subsidiaries | (44,793.1) | (42,384.8) | |||
Intercompany receivables | (10,046) | (9,930.9) | |||
Non-current assets | (54,839.1) | (52,315.7) | |||
Current assets | |||||
Intercompany receivables | (11,582) | (8,709.6) | |||
Cash and short-term deposits | (3,254.7) | (4,527.1) | |||
Current assets | (14,836.7) | (13,236.7) | |||
Current liabilities | |||||
Intercompany payables | 11,582 | 8,709.6 | |||
Bank overdrafts, bonds and bank loans | 3,254.7 | 4,527.1 | |||
Current liabilities | 14,836.7 | 13,236.7 | |||
Total assets less current liabilities | (54,839.1) | (52,315.7) | |||
Non-current liabilities | |||||
Intercompany payables | 10,046 | 9,930.9 | |||
Non-current liabilities | 10,046 | 9,930.9 | |||
Net assets | (44,793.1) | (42,384.8) | |||
Attributable to: | |||||
Equity shareholders' funds | (44,793.1) | (42,384.8) | |||
Total equity | £ (44,793.1) | £ (42,384.8) | |||
[1] | Prior year figures have been restated for the impact of the adoption of IFRS 15 Revenue from Contracts with Customers, as described in the accounting policies. |
Condensed consolidating fina_14
Condensed consolidating financial information for bonds issued by WPP Finance 2010 with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors - Condensed Consolidating Balance Sheet (Parenthetical) (Detail) £ in Millions | Dec. 31, 2017GBP (£) |
Guarantor Subsidiaries and Other Subsidiaries [member] | Condensed Consolidating Financial Information for Bonds Issued by WPP Finance 2010 with WPP plc as Parent Guarantor and WPP Jubilee Limited and WPP 2005 Limited as Subsidiary Guarantors [member] | |
Disclosure of detailed information of condensed consolidating financial information [line items] | |
Restatement for intercompany receivables and intercompany payables | £ 2,540.2 |