Cover
Cover | 12 Months Ended |
Dec. 31, 2023 shares | |
Entity Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38303 |
Entity Registrant Name | WPP plc |
Entity Incorporation, State or Country Code | Y9 |
Entity Address, Address Line One | Sea Containers |
Entity Address, Address Line Two | 18 Upper Ground |
Entity Address, City or Town | London |
Entity Address, Country | GB |
Entity Address, Postal Zip Code | SE1 9GL |
Entity Common Stock, Shares Outstanding | 1,074,837,699 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction | true |
Document Financial Statement Restatement Recovery Analysis | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Central Index Key | 0000806968 |
Amendment Flag | false |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2023 |
Business Contact | |
Entity Information [Line Items] | |
Entity Address, Address Line One | Sea Containers |
Entity Address, Address Line Two | 18 Upper Ground |
Entity Address, City or Town | London |
Entity Address, Country | GB |
Entity Address, Postal Zip Code | SE1 9GL |
Contact Personnel Name | Andrea Harris |
Country Region | 44 |
City Area Code | (0) 20 |
Local Phone Number | 7282 4600 |
Contact Personnel Email Address | andrea.harris@wpp.com |
Ordinary shares | |
Entity Information [Line Items] | |
Title of 12(b) Security | Ordinary Shares of 10p each |
Trading Symbol | WPP |
ADR | |
Entity Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares, eachrepresenting five Ordinary Shares (ADSs) |
Trading Symbol | WPP |
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte LLP |
Auditor Location | London, United Kingdom |
Auditor Firm ID | 1147 |
Consolidated Income Statement
Consolidated Income Statement - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Profit or loss [abstract] | |||
Revenue | £ 14,844.8 | £ 14,428.7 | £ 12,801.1 |
Costs of services | (12,325.8) | (11,890.1) | (10,597.5) |
Gross profit | 2,519 | 2,538.6 | 2,203.6 |
General and administrative costs | (1,988) | (1,180.4) | (974.6) |
Operating profit | 531 | 1,358.2 | 1,229 |
Earnings/(loss) from associates - after interest and tax | 70.2 | (60.4) | 23.8 |
Profit before interest and taxation | 601.2 | 1,297.8 | 1,252.8 |
Finance and investment income | 127.3 | 145.4 | 69.4 |
Finance costs | (389) | (359.4) | (283.6) |
Revaluation and retranslation of financial instruments | 6.8 | 76 | (87.8) |
Profit before taxation | 346.3 | 1,159.8 | 950.8 |
Taxation | (149.1) | (384.4) | (230.1) |
Profit for the year | 197.2 | 775.4 | 720.7 |
Attributable to: | |||
Profit (loss), attributable to owners of parent | 110.4 | 682.7 | 637.7 |
Non-controlling interests | 86.8 | 92.7 | 83 |
Profit for the year | £ 197.2 | £ 775.4 | £ 720.7 |
Earnings per share | |||
Basic earnings per ordinary share (sterling per share) | £ 0.103 | £ 0.622 | £ 0.534 |
Diluted earnings per ordinary share (sterling per share) | £ 0.101 | £ 0.612 | £ 0.525 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of comprehensive income [abstract] | |||
Profit for the year | £ 197.2 | £ 775.4 | £ 720.7 |
Items that may be reclassified subsequently to profit or loss | |||
Foreign exchange differences on translation of foreign operations | (427.1) | 424.2 | (143) |
Gain/(loss) on net investment hedges | 108.2 | (141.5) | 45.5 |
Cash flow hedges [abstract] | |||
Fair value (loss)/gain arising on hedging instruments | (43.3) | 38.5 | (38) |
Less: gain/(loss) reclassified to profit or loss | 44.2 | (38.5) | 38 |
Share of other comprehensive (loss)/ earnings of associate undertakings | (0.9) | 51.2 | 13.5 |
Items that may be reclassified subsequently to profit or loss | (318.9) | 333.9 | (84) |
Items that will not be reclassified subsequently to profit or loss | |||
Movements on equity investments held at fair value through other comprehensive income | (3) | (22.3) | (35.5) |
Actuarial (loss)/gain on defined benefit pension plans | (9.1) | 16.6 | 14.3 |
Deferred tax on defined benefit pension plans | 1.7 | (7.4) | (3) |
Items that will not be reclassified subsequently to profit or loss | (10.4) | (13.1) | (24.2) |
Other comprehensive (loss)/income for the year | (329.3) | 320.8 | (108.2) |
Total comprehensive (loss)/income for the year | (132.1) | 1,096.2 | 612.5 |
Equity holders of the parent | |||
Equity holders of the parent | (195.8) | 988.3 | 539.8 |
Non-controlling interests | 63.7 | 107.9 | 72.7 |
Total comprehensive (loss)/income for the year | £ (132.1) | £ 1,096.2 | £ 612.5 |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statement - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Statement of cash flows [abstract] | ||||
Net cash inflow from operating activities | [1] | £ 1,238.2 | £ 700.9 | £ 2,029 |
Acquisitions | [1] | (266.8) | (236.2) | (382.3) |
Disposals of investments and subsidiaries | 98.8 | 37.7 | 28.3 | |
Investing activities | ||||
Purchases of property, plant and equipment | (177.2) | (208.4) | (263.2) | |
Purchases of other intangible assets (including capitalised computer software) | (40) | (14.9) | (29.9) | |
Proceeds on disposal of property, plant and equipment | 4.8 | 12.9 | 8.7 | |
Net cash outflow from investing activities | (380.4) | (408.9) | (638.4) | |
Financing activities | ||||
Repayment of lease liabilities | (258.7) | (309.6) | (320.7) | |
Share option proceeds | 0.7 | 1.2 | 4.4 | |
Cash consideration received from non-controlling interests | 46.1 | 0 | 39.5 | |
Cash consideration for purchase of non-controlling interests | (16.4) | (84.2) | (135) | |
Share repurchases and buybacks | (53.9) | (862.7) | (818.5) | |
Proceeds from issue of bonds | 1,052.6 | 0 | 0 | |
Repayment of borrowings | (1,147.5) | (220.6) | (397.1) | |
Financing and share issue costs | (3.5) | (0.2) | (0.4) | |
Equity dividends paid | (422.8) | (365.4) | (314.7) | |
Dividends paid to non-controlling interests in subsidiary undertakings | (101.3) | (69.5) | (114.5) | |
Net cash outflow from financing activities | (904.7) | (1,911) | (2,057) | |
Net decrease in cash and cash equivalents | (46.9) | (1,619) | (666.4) | |
Translation of cash and cash equivalents | (79.6) | 64.2 | (130.1) | |
Cash and cash equivalents at beginning of year | 1,985.8 | 3,540.6 | 4,337.1 | |
Cash and cash equivalents at end of year | £ 1,859.3 | £ 1,985.8 | £ 3,540.6 | |
[1] Earnout payments in excess of the amount determined at acquisition are recorded as operating activities. |
Consolidated Balance Sheet
Consolidated Balance Sheet - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Non-current assets | |||
Goodwill | £ 8,388.9 | £ 8,453.4 | |
Other | 849.9 | 1,451.9 | |
Property, plant and equipment | 828.5 | 1,000.7 | |
Right-of-use assets | 1,382.2 | 1,528.5 | |
Interests in associates | 286.5 | 305.1 | |
Other investments | 332.7 | 369.8 | |
Deferred tax assets | 324.4 | 322.1 | |
Corporate income tax recoverable | 76.5 | 74.1 | |
Trade and other receivables | 209.2 | 218.6 | |
Non-current assets | 12,678.8 | 13,724.2 | |
Current assets | |||
Corporate income tax recoverable | 114.9 | 107.1 | |
Trade and other receivables | 8,460.6 | 9,031.4 | |
Accrued income | [1] | 3,150.6 | 3,468.3 |
Cash and short-term deposits | 2,217.5 | 2,491.5 | |
Total of current assets after including assets classified as held for sale | 13,943.6 | 15,098.3 | |
Current liabilities | |||
Trade and other payables | (13,323.1) | (14,235.9) | |
Deferred income | [1] | (1,318.9) | (1,599) |
Corporate income tax payable | (370.2) | (422) | |
Short-term lease liabilities | (292.3) | (282.4) | |
Bank overdrafts and bonds | (946.3) | (1,169) | |
Total of current liabilities after including liabilitites associated with assets as held for sale | (16,250.8) | (17,708.3) | |
Net current liabilities | (2,307.2) | (2,610) | |
Non-current liabilities | |||
Bonds | (3,775) | (3,801.8) | |
Trade and other payables | (282.8) | (490.9) | |
Deferred tax liabilities | (178.5) | (350.8) | |
Employee benefit obligations | (135.9) | (137.5) | |
Provisions for liabilities and charges | (304.5) | (244.6) | |
Long-term lease liabilities | (1,862.2) | (1,928.2) | |
Non-current liabilities | (6,538.9) | (6,953.8) | |
Net assets | 3,832.7 | 4,160.4 | |
Equity | |||
Called-up share capital | 114.1 | 114.1 | |
Share premium account | 576.6 | 575.9 | |
Other reserves | 186.6 | 285.2 | |
Own shares | (990.1) | (1,054.1) | |
Retained earnings | 3,488.4 | 3,759.7 | |
Equity shareholders’ funds | 3,375.6 | 3,680.8 | |
Non-controlling interests | 457.1 | 479.6 | |
Total equity | £ 3,832.7 | £ 4,160.4 | |
[1] Accrued income and Deferred income were previously presented in Trade and other receivables and Trade and other payables respectively. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - GBP (£) £ in Millions | Total | Total equity shareholder's funds | Called- up share capital | Share premium account | Other reserves | Own shares | Retained earnings | [1] | Non- controlling interests | |
Beginning balance at Dec. 31, 2020 | £ 5,050.1 | £ 4,732 | £ 129.6 | £ 570.3 | £ 191.2 | £ (1,118.3) | £ 4,959.2 | £ 318.1 | ||
Ordinary shares issued | 4.4 | 4.4 | 4.4 | |||||||
Share cancellations | (729.3) | (729.3) | (7.2) | 7.2 | (729.3) | |||||
Treasury shares used for share option schemes | 0 | 0 | 3.7 | (3.7) | ||||||
Profit for the year | 720.7 | 637.7 | 637.7 | 83 | ||||||
Foreign exchange differences on translation of foreign operations | (143) | (132.7) | (132.7) | (10.3) | ||||||
Gain on net investment hedges | 45.5 | 45.5 | 45.5 | |||||||
Fair value loss arising on hedging instruments | (38) | (38) | (38) | |||||||
Less: gain/(loss) reclassified to profit or loss | 38 | 38 | 38 | |||||||
Share of other comprehensive (loss)/ earnings of associate undertakings | 13.5 | 13.5 | 7.3 | 6.2 | ||||||
Movements on equity investments held at fair value through other comprehensive income | (35.5) | (35.5) | (35.5) | |||||||
Actuarial (loss)/gain on defined benefit pension plans | 14.3 | 14.3 | 14.3 | |||||||
Deferred tax on defined benefit pension plans | (3) | (3) | (3) | |||||||
Other comprehensive (loss)/income for the year | (108.2) | (97.9) | (79.9) | (18) | (10.3) | |||||
Total comprehensive (loss)/income for the year | 612.5 | 539.8 | (79.9) | 619.7 | 72.7 | |||||
Dividends paid | (429.2) | (314.7) | (314.7) | (114.5) | ||||||
Non-cash share-based incentive plans (including share options) | 99.6 | 99.6 | 99.6 | |||||||
Tax adjustment on share-based payments | 15.4 | 15.4 | 15.4 | |||||||
Net movement in own shares held by ESOP Trusts | (89.2) | (89.2) | 2.5 | (91.7) | ||||||
Recognition/derecognition of liabilities in respect of put options | (241.6) | (241.6) | (242.7) | 1.1 | ||||||
Share purchases – close period commitments | [2] | (211.7) | (211.7) | (211.7) | ||||||
Share of other equity movements of associates | (8) | (8) | (8) | |||||||
Acquisition of subsidiaries | [3] | (4) | (180.3) | (180.3) | 176.3 | |||||
Ending balance at Dec. 31, 2021 | 4,069 | 3,616.4 | 122.4 | 574.7 | (335.9) | (1,112.1) | 4,367.3 | 452.6 | ||
Ordinary shares issued | 1.2 | 1.2 | 1.2 | |||||||
Share cancellations | (807.4) | (807.4) | (8.3) | 8.3 | (807.4) | |||||
Profit for the year | 775.4 | 682.7 | 682.7 | 92.7 | ||||||
Foreign exchange differences on translation of foreign operations | 424.2 | 409 | 409 | 15.2 | ||||||
Gain on net investment hedges | (141.5) | (141.5) | (141.5) | |||||||
Fair value loss arising on hedging instruments | 38.5 | 38.5 | 38.5 | |||||||
Less: gain/(loss) reclassified to profit or loss | (38.5) | (38.5) | (38.5) | |||||||
Share of other comprehensive (loss)/ earnings of associate undertakings | 51.2 | 51.2 | 31.9 | 19.3 | ||||||
Movements on equity investments held at fair value through other comprehensive income | (22.3) | (22.3) | (22.3) | |||||||
Actuarial (loss)/gain on defined benefit pension plans | 16.6 | 16.6 | 16.6 | |||||||
Deferred tax on defined benefit pension plans | (7.4) | (7.4) | (7.4) | |||||||
Other comprehensive (loss)/income for the year | 320.8 | 305.6 | 299.4 | 6.2 | 15.2 | |||||
Total comprehensive (loss)/income for the year | 1,096.2 | 988.3 | 299.4 | 688.9 | 107.9 | |||||
Dividends paid | (434.9) | (365.4) | (365.4) | (69.5) | ||||||
Non-cash share-based incentive plans (including share options) | 122 | 122 | 122 | |||||||
Tax adjustment on share-based payments | (9.2) | (9.2) | (9.2) | |||||||
Net movement in own shares held by ESOP Trusts | (55.3) | (55.3) | 58 | (113.3) | ||||||
Recognition/derecognition of liabilities in respect of put options | 61.4 | 61.4 | 101.7 | (40.3) | ||||||
Share purchases – close period commitments | [2] | 211.7 | 211.7 | 211.7 | ||||||
Acquisition of subsidiaries | [3] | (94.3) | (82.9) | (82.9) | (11.4) | |||||
Ending balance at Dec. 31, 2022 | 4,160.4 | 3,680.8 | 114.1 | 575.9 | 285.2 | (1,054.1) | 3,759.7 | 479.6 | ||
Ordinary shares issued | 0.7 | 0.7 | 0.7 | |||||||
Treasury shares used for share option schemes | 0 | 55.2 | (55.2) | |||||||
Profit for the year | 197.2 | 110.4 | 110.4 | 86.8 | ||||||
Foreign exchange differences on translation of foreign operations | (427.1) | (404) | (404) | (23.1) | ||||||
Gain on net investment hedges | 108.2 | 108.2 | 108.2 | |||||||
Fair value loss arising on hedging instruments | (43.3) | (43.3) | (43.3) | |||||||
Less: gain/(loss) reclassified to profit or loss | 44.2 | 44.2 | 44.2 | |||||||
Share of other comprehensive (loss)/ earnings of associate undertakings | (0.9) | (0.9) | (0.9) | |||||||
Movements on equity investments held at fair value through other comprehensive income | (3) | (3) | (3) | |||||||
Actuarial (loss)/gain on defined benefit pension plans | (9.1) | (9.1) | (9.1) | |||||||
Deferred tax on defined benefit pension plans | 1.7 | 1.7 | 1.7 | |||||||
Other comprehensive (loss)/income for the year | (329.3) | (306.2) | (295.8) | (10.4) | (23.1) | |||||
Total comprehensive (loss)/income for the year | (132.1) | (195.8) | (295.8) | 100 | 63.7 | |||||
Dividends paid | (524.1) | (422.8) | (422.8) | (101.3) | ||||||
Non-cash share-based incentive plans (including share options) | 140.1 | 140.1 | 140.1 | |||||||
Tax adjustment on share-based payments | 1.9 | 1.9 | 1.9 | |||||||
Net movement in own shares held by ESOP Trusts | (53.9) | (53.9) | 8.8 | (62.7) | ||||||
Recognition/derecognition of liabilities in respect of put options | 227.7 | 227.7 | 197.2 | 30.5 | ||||||
Acquisition of subsidiaries | [3] | 12 | (3.1) | (3.1) | 15.1 | |||||
Ending balance at Dec. 31, 2023 | £ 3,832.7 | £ 3,375.6 | £ 114.1 | £ 576.6 | £ 186.6 | £ (990.1) | £ 3,488.4 | £ 457.1 | ||
[1] Accumulated losses on existing equity investments held at fair value through other comprehensive income are £346.5 million at 31 December 2023 (2022: £343.7 million, 2021: £308.5 million). During 2021, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 16 December 2021 and ending on 18 February 2022, in accordance with UK listing rules. The commitment resulting from this agreement constituted a liability at 31 December 2021 and was recognised as a movement in other reserves in the year ended 31 December 2021. After the close period ended on 18 February 2022, the liability was settled and the amount in other reserves was reclassified to retained earnings. Net movement in non-controlling interests 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. |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of changes in equity [abstract] | |||
Reserve of gains and losses on hedging instruments that hedge investments in equity instruments | £ 346.5 | £ 343.7 | £ 308.5 |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Accounting policies | Accounting policies The consolidated financial statements of WPP plc and its subsidiaries (the Group) for the year ended 31 December 2023 have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) as they apply to the financial statements of the Group for the year ended 31 December 2023. Basis of preparation The Group consolidated financial statements have been prepared on a going concern basis, under the historical cost convention, except for the revaluation of certain financial instruments. In performing its going concern assessment, management's forecasts and projections, taking account of (i) reasonably possible declines in revenue less pass-through costs and (ii) remotely possible declines in revenue less pass-through costs for stress-testing purposes compared to 2023, considering the Group’s liquidity headroom taking into account the suspension of share buybacks, dividends and acquisitions, and cost-mitigation actions which could be implemented, show that the Company and the Group would be able to operate with appropriate liquidity and be able to meet its liabilities as they fall due, considering that the Group was in a £2.3 billion net current liability position as at 31 December 2023. The Company modelled a range of revenue less pass-through cost declines up to 31% compared with the year ended 31 December 2023. The Directors therefore have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements. The principal accounting policies are set out below. The financial statements were approved by the Board of Directors and authorized for issue on 21 March 2024. 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. Subsidiary undertakings are those entities controlled by the Group. Control exists where the Group is exposed to, or has the rights to variable returns from its involvement with, the investee and has the ability to use its power over the investee to affect its returns. 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. Non-controlling interests represent the share of earnings or equity in subsidiaries that is not attributable, directly or indirectly, to shareholders of the Group. New IFRS accounting pronouncements The Group has applied the following standards and amendments for the first time for their annual reporting period commencing on or after 1 January 2023: – IFRS 17 Insurance Contracts – Definition of Accounting Estimates - Amendments to IAS 8 – Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2 – Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12 – International Tax Reform - Pillar Two Model Rules - Amendments to IAS 12 The standards and amendments listed above did not have any impact on the amounts recognised in prior periods, did not have a significant impact on the amounts recognised in the current period, and are not expected to significantly affect the future periods. At the date of authorisation of these financial statements, there were a number of standards or amendments to standards, which have not been applied in these financial statements, that were in issue but not yet effective. The Group does not consider that any of these standards or amendments to standards in issue but not yet effective will have a significant impact on the financial statements. 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 over the fair value of the underlying net assets where relevant, 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 recoverable amount, defined as the higher of fair value less costs of disposal and value in use. The net present value of future cash flows, to determine value in use, is 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 goodwill 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 Subsequent adjustments to the fair value are recorded in the consolidated income statement within revaluation and retranslation of financial instruments. The effect of any revisions to fair value adjustments that had been determined provisionally at the immediately preceding balance sheet date are accounted for as revisions to goodwill, as permitted by IFRS 3 Business Combinations. 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 indicators exist. 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, where the recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. Property, plant and equipment impairment charges also form part of the property-related restructuring costs described in note 3; and are derived applying the method described in the Leases accounting policy. 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 – up to 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 and joint ventures 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 discontinues recognising its share of net assets or its share of net results from an associate if the value of the investment has reduced to nil. Any additional losses are provided for, and a liability is recognised, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. If the associate subsequently reports a positive equity, the Group resumes recognising its share of net assets, net result and other comprehensive income. 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 recoverable amount is defined as the higher of fair value less costs of disposal and value in use. The Group accounts for joint venture investments under the equity method which is consistent with the Group’s treatment of associates. Other investments Certain equity investments are designated as either fair value through other comprehensive income or fair value through profit or loss. Movements in fair value through profit or loss are recorded in the consolidated income statement within revaluation and retranslation of financial instruments. The Group generally elects to classify equity investments as fair value through other comprehensive income where the Group forms a strategic partnership with the investee. Accrued and deferred income Accrued income is a receivable within the scope of IFRS 9 Financial Instruments, and is recognised when a performance obligation has been satisfied but has not yet been billed. Accrued income is transferred to trade receivables once the right to consideration is billed per the terms of the contractual agreement. In certain cases, payments are received from customers or amounts are billed with an unconditional right to receive consideration 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 unbilled costs Trade receivables are stated net of expected credit loss. Unbilled costs (previously named 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. Expected credit losses The Group has applied the simplified approach to measuring expected credit losses, as permitted by IFRS 9 Financial Instruments. This has been applied to trade receivables, contract assets and lease receivables. Under this approach, the Group utilises a provision matrix based on the age of the trade receivables and historical loss rates to determine the expected credit losses. The Group also considers forward-looking information. 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. For all other assets, the general approach has been applied and a loss allowance for 12-month expected credit losses is recognised. Under IFRS 9, the expected credit losses are measured as the difference between the asset’s gross carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. Given the short-term nature of the Group’s trade receivables, unbilled costs and accrued income, which are mainly due from large national or multinational companies, the Group’s assessment of expected credit losses includes provisions for specific clients and receivables where the contractual cash flow is deemed at risk. The Group considers that the credit risk increased significantly since initial recognition when the credit rating changes adversely, the debtor has significant financial difficulty or if there was a breach of contract. Financial assets are written off when there is evidence indicating that the debtor is in severe financial difficulty and the Group has no realistic prospect of recovery. Receivables written off are still subject to enforcement activity and pursued by the Group. Further details on expected credit losses are provided in note 17. 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 inception of the hedge relationship, the Group documents the relationship between hedging instruments and hedged items, including whether changes in the cash flows of the hedging instruments are expected to offset changes in the fair values or cash flows of hedged items. Furthermore the Group documents its risk management objectives and its strategy for undertaking various hedge transactions. Note 25 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 items that are 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, 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 profit or loss for the period. Derivatives embedded in other financial liabilities 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 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, the financial liability is measured at amortised cost in accordance with IFRS 9 Financial Instruments. On initial recognition, the corresponding amount is recognised against the equity reserve, which is subsequently reversed on derecognition, either through exercise or non-exercise of the option agreement. Changes in the measurement of the financial liability due to the unwinding of the discount or changes in the amount that the Group could be required to pay are recognised in profit or loss within revaluation and retranslation 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 removed from the statement of financial position when the underlying legal obligation is extinguished. Debt Interest-bearing debt is recorded at the proceeds received, net of direct issue costs. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand and short-term highly liquid investments which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value, including bank deposits and money market funds. For Cash Flow Statement presentation purposes, the Group’s overdrafts are included in cash and cash equivalents where they are repayable on demand, are components of the Group’s centralised treasury strategy employed across the Group and form an integral part of the Group’s cash management, in accordance with IAS 7 Statement of Cash Flows. 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. This includes media costs where the Group is buying digital media for its own account on a transparent opt-in basis and, as a result, the subsequent media pass-through costs are recorded as Group revenue. As the contracts are generally short-term in nature, the Group has applied the practical expedient permitted by IFRS 15 to expense costs to obtain a contract as incurred, where applicable. 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 stand-alone 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 is broad and generally 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 unbilled costs 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 when supplying in-house production services, events 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. Global Integrated Agencies Revenue is typically derived from integrated product offerings including media placements and creative 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 once the related uncertainty is resolved. The Group recognises incentive revenue as the related performance obligation or obligations are satisfied depending on the specific contractual terms. Public Relations and Specialist Agencies 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 able to be estimated, 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 recognised within 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 other 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 Group 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 using either the most likely or expected value, depending on which method best estimates the uncertainty. These include provisions for other property-related liabilities such as onerous contracts and dilapidations. The timing of utilisation or release of such provisions are typically dependent on the term of the underlying lease. The eventual settling of such property-related provisions will be dependent on negotiations with the relevant landlord. Also included are other provisions, primarily long-term employee benefits such as deferred compensation plans, and legal claims, where the likelihood of settlement is considered probable. The timing of release and utilisation of the deferred compensation plans are dependent on applicable plan rules while the timing of settlement of legal claims are dependent on the status of any relevant legal proceedings. While we have factored in all known facts and circumstances, it is likely certain legal settlements will vary from the provisioned amount. Contingent liabilities Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the group, or present obligations where it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured with sufficient reliability. Contingent liabilities are not recognised in the consolidated financial statements but are disclosed, if material, unless the possibility of an outflow of economic resources is considered remote. Leases The Group leases most of its offices in cities where it operates. Other lease contracts include office equipment and motor vehicles. At inception of a contract, the Group assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a pe |
General information
General information | 12 Months Ended |
Dec. 31, 2023 | |
General Information and Statement of IFRS Compliance [Abstract] | |
General information | 1. General information WPP plc is a company incorporated in Jersey. The address of the registered office is 22 Grenville Street, St Helier, Jersey, JE4 8PX 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, 2023 | |
General Information and Statement of IFRS Compliance [Abstract] | |
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. Reportable segments The Group is organised into three reportable segments – Global Integrated Agencies, Public Relations and Specialist Agencies. 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 Group’s Chief Executive Officer (the Chief Operating Decision Maker). Provided certain quantitative and qualitative criteria are fulfilled, IFRS 8 permits 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, which includes the aggregation of certain operating segments, the Directors have had regard to the similar economic characteristics of certain operating segments, their shared client bases, the similar nature of their products or services and their long-term margins, amongst other factors. Reported contributions were as follows: Revenue 2 Revenue less pass-through costs 3 Headline operating profit 4 £m £m £m 2023 Global Integrated Agencies 12,594.9 9,808.2 1,474.3 Public Relations 1,262.2 1,180.0 191.1 Specialist Agencies 987.7 871.5 84.8 14,844.8 1,750.2 2022 1 Global Integrated Agencies 12,191.9 9,743.6 1,433.4 Public Relations 1,232.4 1,161.2 191.9 Specialist Agencies 1,004.4 894.5 116.5 14,428.7 1,741.8 2021 1 Global Integrated Agencies 10,887.6 8,680.4 1,221.2 Public Relations 963.5 914.2 144.6 Specialist Agencies 950.0 802.6 127.7 12,801.1 1,493.5 Notes 1 Prior year figures have been re-presented to reflect the reallocation of a number of businesses between Global Integrated Agencies, Specialist Agencies and Public Relations. 2 Intersegment sales have not been separately disclosed as they are not material. 3 Revenue less pass-through costs is revenue less media 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 costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. 4 A reconciliation from reported profit before tax to headline operating profit is provided in note 30. Share-based Capital additions 2 Depreciation and amortisation 3 Goodwill Earnings/(loss) from associates Interests in £m £m £m £m £m £m 2023 Global Integrated Agencies 118.9 180.4 362.8 40.3 56.4 93.1 Public Relations 14.3 15.4 40.0 — 0.2 — Specialist Agencies 6.9 21.4 43.9 23.3 13.6 193.4 140.1 217.2 446.7 63.6 70.2 286.5 2022 1 Global Integrated Agencies 100.7 193.8 373.0 — 10.8 80.1 Public Relations 14.4 11.1 36.7 3.7 0.5 0.1 Specialist Agencies 6.9 18.4 41.3 34.2 (71.7) 224.9 122.0 223.3 451.0 37.9 (60.4) 305.1 2021 1 Global Integrated Agencies 92.5 253.1 374.7 — 22.7 115.2 Public Relations 4.8 18.0 28.2 — 1.7 8.0 Specialist Agencies 2.3 22.0 41.1 1.8 (0.6) 289.7 99.6 293.1 444.0 1.8 23.8 412.9 Notes 1 Prior year figures have been re-presented to reflect the reallocation of a number of businesses between Global Integrated Agencies, Specialist Agencies and Public Relations. 2 Capital additions include purchases of property, plant and equipment and other intangible assets (including capitalised computer software). 3 Depreciation of property, plant and equipment, depreciation of right-of-use assets and amortisation of other intangible assets. Contributions by geographical area were as follows: 2023 2022 2021 £m £m £m Revenue 1 North America 2 5,527.6 5,549.5 4,494.2 United Kingdom 2,155.4 2,003.8 1,866.9 Western Continental Europe 3,037.2 2,876.2 2,786.3 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 4,124.6 3,999.2 3,653.7 14,844.8 14,428.7 12,801.1 Revenue less pass-through costs 3 North America 2 4,556.3 4,688.1 3,849.2 United Kingdom 1,626.3 1,537.2 1,414.3 Western Continental Europe 2,410.5 2,318.5 2,225.4 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 3,266.6 3,255.5 2,908.3 Headline operating profit 4 North America 2 834.3 770.4 655.7 United Kingdom 214.5 187.1 180.9 Western Continental Europe 258.4 301.3 288.6 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 443.0 483.0 368.3 1,750.2 1,741.8 1,493.5 Notes 1 Intersegment sales have not been separately disclosed as they are not material. 2 North America includes the United States with revenue of £5,187.1 million (2022: £5,230.9 million, 2021: £4,220.8 million), revenue less pass-through costs of £4,270.6 million (2022: £4,402.0 million, 2021: £3,597.4 million) and headline operating profit of £785.4 million (2022: £727.6 million, 2021: £615.2 million). 3 Revenue less pass-through costs is revenue less media 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 costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. 4 A reconciliation from reported profit before tax to headline operating profit is provided in note 30. 2023 2022 £m £m Non-current assets 1 North America 2 5,217.6 5,896.4 United Kingdom 1,669.7 1,556.2 Western Continental Europe 2,695.5 2,797.9 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 2,739.3 3,151.0 12,322.1 13,401.5 Notes 1 Non-current assets excluding financial instruments and deferred tax. 2 |
Costs of services and general a
Costs of services and general and administrative costs | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
Costs of services and general and administrative costs | 3. Costs of services and general and administrative costs 2023 2022 2021 £m £m £m Costs of services 12,325.8 11,890.1 10,597.5 General and administrative costs 1,988.0 1,180.4 974.6 14,313.8 13,070.5 11,572.1 Costs of services and general and administrative costs include: 2023 2022 2021 £m £m £m Staff costs (note 5) 8,137.6 8,165.8 7,166.7 Establishment costs 515.8 536.0 529.0 Media pass-through costs 2,173.6 1,905.7 1,865.3 Other costs of services and general and administrative costs 1 3,486.8 2,463.0 2,011.1 14,313.8 13,070.5 11,572.1 Note 1 Other costs of services and general and administrative costs include £811.5 million (2022: £723.7 million, 2021: £538.6 million) of other pass-through costs. Included within costs of services and general administrative costs are the following: 2023 2022 2021 £m £m £m Goodwill impairment (note 13) 63.6 37.9 1.8 Amortisation and impairment of acquired intangible assets 727.9 62.1 97.8 Investment and other impairment charges/(reversals) 17.8 77.0 (42.4) Restructuring and transformation costs 195.5 218.8 175.4 Property-related restructuring costs 232.5 18.0 — (Gains)/losses on disposal of investments and subsidiaries (7.1) 36.3 10.6 Gains on remeasurement of equity interests arising from a change in scope of ownership — (66.5) — Litigation settlement (11.0) — 21.3 Amortisation of other intangible assets 24.8 21.9 19.9 Depreciation of property, plant and equipment 165.1 166.9 151.2 Depreciation of right-of-use assets 256.8 262.2 272.9 Losses/(gains) on sale of property, plant and equipment 0.4 (6.4) (1.3) Net foreign exchange (gains)/losses (14.5) (8.7) 4.4 Short-term lease expense 22.2 20.2 18.0 Low-value lease expense 2.8 1.9 2.3 In 2023, operating profit includes credits totalling £16.9 million (2022: £29.3 million, 2021: £19.3 million) relating to the release of provisions and other balances established in respect of acquisitions completed prior to 2022. Further details of the Group’s approach to acquisition provisions, as required by IFRS 3 Business Combinations, are given in note 28. The goodwill impairment charge of £63.6 million in 2023 (2022: £37.9 million, 2021: £1.8 million) relates to businesses in the Group that have closed or where the impact of current macroeconomic conditions and trading circumstances indicate impairment to the carrying value. Amortisation and impairment of acquired intangible assets of £727.9 million (2022: £62.1 million including £0.2 million relating to associates, 2021: £97.8 million) includes a charge of £650.1 million (2022: £1.4 million, 2021: £47.9 million) predominantly in relation to certain brands that no longer have any useful life. This includes accelerated amortisation charges of £430.8 million and £202.3 million for Wunderman Thompson and Y&R brands respectively, due to the creation of VML in the fourth quarter of 2023. The investment and other impairment charges/reversals of £17.8 million (2022: £77.0 million, 2021: reversal of £42.4 million) relate to the same macroeconomic factors noted above. The 2022 charge of £77.0 million consisted of £48.0 million related to impairments due also to macroeconomic factors and a £29.0 million impairment of capitalised configuration and customisation costs related to software development projects. Restructuring and transformation costs of £195.5 million (2022: £218.8 million, 2021: £175.4 million) include £113.4 million (2022: £134.5 million, 2021: £94.2 million) in relation to the Group’s IT-transformation programme. These IT costs include costs of £52.3 million (2022: £96.8 million, 2021: £62.2 million) in relation to the rollout of new ERP systems in order to drive efficiency and collaboration throughout the Group; and £38.3 million (2022: nil, 2021: nil) related to an IT-transition programme to move to a multi-vendor environment. Also included within restructuring and transformation costs is £9.8 million (2022: £15.1 million, 2021: £29.9 million) of ongoing property costs, related to impairments the Group recognised in prior years in response to the COVID-19 pandemic. The remaining restructuring and transformation costs of £72.3 million (2022: £69.2 million, 2021: £51.3 million) relates to the continuing restructuring plan, including the creation of VML and simplification of GroupM. This includes restructuring actions at under-performing businesses, aiming to reduce ongoing costs and simplify operational structures. Property-related restructuring costs of £232.5 million (2022: £18.0 million, 2021: nil) have been incurred related to a review of the Group's property requirements in 2023, following the stabilisation of return-to work practices post the COVID-19 pandemic and the campus strategy. This identified a number of properties that are surplus to requirements and opportunities to further consolidate Agencies within the existing Campus portfolio. The impairment charges included within property-related restructuring costs include £128.8 million (2022: £18.0 million, 2021: nil) in relation to right-of-use assets and £55.8 million (2022: nil, 2021: nil) of related property, plant and equipment. Gains on disposal of investments and subsidiaries of £7.1 million in 2023 includes a gain of £18.1 million related to net receipts from the prior disposal of Kantar, offset primarily by losses on disposals of £11.0 million including disposal of the Group’s investment in Astus Australia. Losses on disposal of investments and subsidiaries of £36.3 million in 2022 primarily included a loss of £63.1 million on the divestment of the Group's Russian interests which completed in May 2022. This was partially offset by gains on other disposals during the period including Res Publica for £17.7 million and Mutual Mobile for £9.4 million with the remaining gains/losses due to individually insignificant transactions. Losses on disposal of investments and subsidiaries of £10.6 million in 2021 included a loss of £4.9 million on the disposal of XMKT in China, which completed in September 2021. There were no remeasurements of equity interests in 2023. In 2022, gains on remeasurement of equity interests arising from a change in scope of ownership of £66.5 million (2021: nil) comprises a gain in relation to the reclassification of the Group's interest in Imagina in Spain from interests in associates to other investments. In 2023, £11.0 million (2022: nil) has been received by the Group (net of legal costs) related to a previous litigation matter that settled in 2023. Auditors’ remuneration: 2023 2022 2021 £m £m £m Fees payable to the Company’s auditors for the audit of the Company and Group’s annual accounts 10.0 8.4 7.1 Fees payable for the audit of the Company’s subsidiaries 29.9 28.5 24.8 Fees payable to the auditors pursuant to legislation 1 39.9 36.9 31.9 Audit-related services 2 0.5 0.4 0.4 Other services 3 1.7 0.6 1.4 Tax compliance services — 0.1 — Total other fees 2.2 1.1 1.8 Total fees 42.1 38.0 33.7 Notes 1 Includes fees in respect of the audit of internal control over financial reporting. 2 Audit-related assurance services are in respect of the review of the interim financial information. 3 Other services include audits for earnout purposes, non-statutory audits and other agreed upon procedures. |
Earnings_(loss) from associates
Earnings/(loss) from associates - after interest and tax | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of associates [abstract] | |
Earnings/(loss) from associates - after interest and tax | 4. Earnings/(loss) from associates - after interest and tax Earnings/(loss) from associates - after interest and tax was earnings of £70.2 million in 2023, a loss of £60.4 million in 2022 and earnings of £23.8 million in 2021. In 2023 this included £45.1 million of non-refundable distributions received from Kantar, which are recorded in the income statement (non headline) given the Group's balance sheet investment in Kantar is nil (2022: nil, 2021: £61.2 million). The loss in 2022 included £75.8 million (2021: £38.8 million) of amortisation and impairment of acquired intangible assets as well as restructuring and one-off transaction costs of £54.8 million (2021: £18.8 million) within Kantar. |
Our people
Our people | 12 Months Ended |
Dec. 31, 2023 | |
Number and average number of employees [abstract] | |
Our people | 5. Our people Our staff numbers averaged 114,732 for the year ended 31 December 2023 against 114,129 in 2022 and 104,808 in 2021. Their geographical distribution was as follows: 2023 2022 2021 North America 23,562 23,740 21,764 United Kingdom 12,457 12,490 10,995 Western Continental Europe 23,580 22,717 21,514 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 55,133 55,182 50,535 114,732 114,129 104,808 Their reportable segment distribution was as follows: 2023 2022 2021 Global Integrated Agencies 97,838 97,288 89,701 Public Relations 8,377 8,125 7,121 Specialist Agencies 8,517 8,716 7,986 114,732 114,129 104,808 At the end of 2023, staff numbers were 114,173 (2022: 115,473, 2021: 109,382). Staff costs include: 2023 2022 2021 £m £m £m Wages and salaries 5,878.8 5,721.0 4,797.2 Cash-based incentive plans 232.9 292.6 455.2 Share-based incentive plans (note 22) 140.1 122.0 99.6 Social security costs 715.1 689.4 630.1 Pension costs (note 23) 213.1 204.8 177.7 Severance 78.2 44.2 41.8 Other staff costs 1 879.4 1,091.8 965.1 8,137.6 8,165.8 7,166.7 Note 1 Freelance and temporary staff costs are included in other staff costs. Compensation for key management personnel includes: 2023 2022 2021 £m £m £m Short-term employee benefits 28.1 29.7 28.0 Pensions and other post-retirement benefits 1.3 1.1 0.9 Share-based payments 30.1 29.8 14.6 59.5 60.6 43.5 |
Finance and investment income,
Finance and investment income, finance costs and revaluation and retranslation of financial instruments | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
Finance and investment income, finance costs and revaluation and retranslation of financial instruments | 6. Finance and investment income, finance costs and revaluation and retranslation of financial instruments Finance and investment income includes: 2023 2022 2021 £m £m £m Income from equity investments 12.9 24.5 17.9 Interest income 114.4 120.9 51.5 127.3 145.4 69.4 Finance costs include: 2023 2022 2021 £m £m £m Net interest expense on pension plans 4.3 2.2 1.8 Interest on other long-term employee benefits 6.0 3.7 2.4 Interest expense and similar charges 1 272.4 257.8 188.5 Interest expense related to lease liabilities 106.3 95.7 90.9 389.0 359.4 283.6 Note 1 Interest expense and similar charges are payable on bank overdrafts, bonds and bank loans held at amortised cost. Revaluation and retranslation of financial instruments include: 2023 2022 2021 £m £m £m Movements in fair value of treasury instruments (3.1) 0.5 9.1 Premium on the early repayment of bonds — — (13.0) Revaluation of investments and other assets held at fair value through profit or loss (20.9) 23.1 (7.5) Remeasurement of put options over non-controlling interests (1.5) 27.9 (40.6) Revaluation of payments due to vendors (earnout agreements) 50.8 26.2 (58.7) Retranslation of financial instruments (18.5) (1.7) 22.9 6.8 76.0 (87.8) The majority of the Group’s long-term debt is represented by $1,063 million of US dollar bonds at an average interest rate of 4.26%, €3,350 million of Eurobonds at an average interest rate of 2.46% and £650 million of Sterling bonds at an average interest rate of 3.21%. Average borrowings in 2023 under the US Dollar Revolving Credit Facilities (note 10) amounted to $41 million at an average interest rate of 4.54% (2022: nil). Average borrowings under the US Commercial Paper Programme for 2023 amounted to $433 million at an average interest rate of 5.45% inclusive of margin (2022: $195 million at an average interest rate of 2.56% inclusive of margin). Average borrowings under the Euro Commercial Paper Programme for 2023 amounted to £45 million at an average interest rate of 4.90% inclusive of currency swaps (2022: £34 million at an average interest rate of 1.95% inclusive of currency swaps). |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2023 | |
Major components of tax expense (income) [abstract] | |
Taxation | 7. Taxation In 2023, the effective tax rate on profit before taxation was 43.1% (2022: 33.1%, 2021: 24.2%) The tax charge comprises: 2023 2022 2021 £m £m £m Corporation tax Current year 432.8 425.8 404.0 Prior years (85.6) (55.5) (41.4) 347.2 370.3 362.6 Deferred tax Current year (197.1) 9.4 (131.0) Prior years (1.0) 4.7 (1.5) (198.1) 14.1 (132.5) Tax charge 149.1 384.4 230.1 The corporation tax credit for prior years in 2023, 2022 and 2021 primarily comprises the release of a number of provisions following the resolution of tax matters in various countries. The current year deferred tax credit of £197.1 million (2022: debit of £9.4 million, 2021: credit of £131.0 million) reflects the tax impact of accelerated amortisation of intangible assets as a result of the creation of VML. The tax charge for the year can be reconciled to profit before taxation in the consolidated income statement as follows: 2023 2022 2021 £m £m £m Profit before taxation 346.3 1,159.8 950.8 Tax at the corporation tax rate of 23.5% 1 81.4 220.4 180.7 Tax effect of (earnings)/losses from associates (15.0) 17.4 (13.3) Irrecoverable withholding taxes 34.8 25.9 52.3 Tax effect of items that are not deductible in determining taxable profits 39.0 66.7 29.3 Tax effect of non-deductible goodwill impairment 16.2 7.2 0.6 Effect of different tax rates in subsidiaries operating in other jurisdictions 41.8 94.3 81.2 Origination and reversal of unrecognised temporary differences 8.8 (1.1) (36.3) Tax losses not recognised or utilised in the year 44.0 9.8 7.4 Utilisation of tax losses not previously recognised (15.3) (5.4) (5.1) Net release of prior year provisions in relation to acquired businesses (3.9) (2.8) (1.1) Other prior year adjustments (82.7) (48.0) (41.8) Impact of deferred tax rate change — — (23.8) Tax charge 149.1 384.4 230.1 Effective tax rate on profit before tax 43.1 % 33.1 % 24.2 % Note 1 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 23.5% (2022: 19.0%, 2021: 19.0%). Factors affecting the tax charge in future years The tax charge may be affected by the impact of acquisitions, disposals and other corporate restructurings, the resolution of open tax issues, and the ability to use brought forward tax losses. Changes in local or international tax rules, and changes arising from the application of existing rules, new demands and assessments or challenges by tax authorities, may expose the Group to additional tax liabilities or impact the carrying value of deferred tax assets, which could affect the future tax charge. Legislation in respect of the UK adoption of OECD Pillar Two Multinational top-up tax was substantively enacted in the UK in 2023 and is to apply for periods commencing 1 January 2024. The Group is currently monitoring the potential impact, which is expected to be insignificant on the Group's tax charge, including assessing the applicability of legislative safe harbours. The IAS 12 exception to recognise and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes has been applied. Liabilities relating to open and judgemental matters are based upon an assessment of whether the tax authorities will accept the position taken, after considering external advice where appropriate. Where the final tax outcome of these matters is different from the amounts which were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made. The Group does not currently consider that judgements made in assessing tax liabilities have a significant risk of resulting in any material additional charges or credits in respect of these matters, within the next financial year, beyond the amounts already provided. Following the enactment in 2021 of an increase in the UK corporation tax rate from 19% to 25% from 1 April 2023, the Group remeasured UK deferred tax balances accordingly and recognised a tax credit of £23.8 million in 2021. Tax risk management We look to maintain open and transparent relationships with the tax authorities and relevant government representatives in the jurisdictions in which we operate. We maintain 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 significant 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, 2023 | |
Disclosure of Dividends [abstract] | |
Ordinary dividends | 8. Ordinary dividends Amounts recognised as distributions to equity holders in the year: 2023 2022 2021 2023 2022 2021 Per share Pence per share £m £m £m Final dividend in respect of the prior year (2022) 24.40 p 18.70 p 14.00 p 261.8 203.5 167.7 Interim dividend in respect of the current year (2023) 15.00 p 15.00 p 12.50 p 161.0 161.9 147.0 39.40 p 33.70 p 26.50 p 422.8 365.4 314.7 Proposed final dividend for the year ended 31 December 2023: 2023 2022 2021 Per share Pence per share Final dividend 24.40 p 24.40 p 18.70 p The payment of dividends will not have any tax consequences for the Group. Final dividends are paid in the subsequent year to which they relate. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share [abstract] | |
Earnings per share | 9. Earnings per share Basic EPS The calculation of basic EPS is as follows: 2023 2022 2021 Earnings 1 (£m) 110.4 682.7 637.7 Weighted average shares used in basic EPS calculation (m) 1,072.1 1,097.9 1,194.1 EPS 10.3p 62.2p 53.4p 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: 2023 2022 2021 Earnings 1 (£m) 110.4 682.7 637.7 Weighted average shares used in diluted EPS calculation (m) 1,094.0 1,116.4 1,215.3 Diluted EPS 10.1 p 61.2 p 52.5 p 1 Earnings is equivalent to profit for the year attributable to equity holders of the parent. Diluted EPS has been calculated based on the earnings amounts above. At 31 December 2023, options to purchase 25.2 million ordinary shares (2022: 19.7 million, 2021: 7.2 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: 2023 2022 2021 m m m Weighted average shares used in basic EPS calculation 1,072.1 1,097.9 1,194.1 Dilutive share options outstanding 0.6 0.7 1.3 Other potentially issuable shares 21.3 17.8 19.9 Weighted average shares used in diluted EPS calculation 1,094.0 1,116.4 1,215.3 At 31 December 2023 there were 1,141,513,196 (2022: 1,141,427,296, 2021: 1,224,459,550) ordinary shares in issue, including 66,675,497 treasury shares (2022: 70,489,953, 2021: 70,489,953). |
Sources of finance
Sources of finance | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about financial instruments [abstract] | |
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 2023 2022 2021 2023 2022 2021 Analysis of changes in financing £m £m £m £m £m £m Beginning of year 690.0 697.1 699.9 4,465.1 4,441.7 5,032.7 Ordinary shares issued 0.7 1.2 4.4 — — — Share cancellations — (8.3) (7.2) — — — Net decrease in drawings on bank loans and bonds — — — (48.9) (220.6) (397.1) Amortisation of financing costs included in debt — — — 0.2 7.0 8.1 Acquisition of subsidiaries — — — 48.9 — — Changes in fair value due to hedging arrangements — — — — — (2.5) Other movements — — — (3.5) (0.2) (0.4) Exchange adjustments — — — (98.7) 237.2 (199.1) End of year 690.7 690.0 697.1 4,363.1 4,465.1 4,441.7 The table above excludes bank overdrafts which fall within cash and cash equivalents for the purposes of the consolidated cash flow statement. Other liabilities from financing activities, including lease liabilities and derivatives used for hedging debts, are disclosed in note 12 and note 25, respectively. Shares At 31 December 2023, the Company’s share base was entirely composed of ordinary equity share capital and share premium of £690.7 million (2022: £690.0 million, 2021: £697.1 million), further details of which are disclosed in note 26. Debt as at 31 December 2023 US$ bonds The Group had in issue $750 million of 3.75% bonds due September 2024, $93 million of 5.125% bonds due September 2042 and $220 million of 5.625% bonds due November 2043. Eurobonds During the year, the Group issued €750 million of 4.125% bonds due May 2028 . The Group also had in issue €500 million of 1.375% bonds due March 2025, €750 million of 2.25% bonds due September 2026, €750 million of 2.375% bonds due May 2027, and €600 million of 1.625% bonds due March 2030. In November 2023, €750 million of 3.0% bonds were repaid. Sterling bonds The Group had in issue £250 million of 3.750% bonds due May 2032 and £400 million of 2.875% bonds due September 2046. Revolving Credit Facility The Group had a five-year Revolving Credit Facility of $2.5 billion due March 2026, signed in November 2021. The Group’s borrowings under these facilities, which are drawn down predominantly in pounds sterling, averaged $41 million in 2023 (2022: nil, 2021: nil). In May 2021, the Group’s subsidiary, WPP AUNZ, repaid in full its A$150 million Revolving Credit Facility due August 2021, and its A$270 million Revolving Credit Facility due August 2023. The Group’s borrowings under the Australian dollar facilities, which were drawn down in Australian dollars and New Zealand dollars, averaged the equivalent of nil in 2023 (2022: nil, 2021: A$52 million). The Group had available undrawn committed credit facilities of £1,963.7 million at 31 December 2023 (2022: £2,069.0 million, 2021: £1,847.5 million). Borrowings under the $2.5 billion Revolving Credit Facility were governed by certain financial covenants based on the results and financial position of the Group. During 2023, and until 20 February 2024 when the Revolving Credit Facility was refinanced with no financial covenants (see note 31 for further details), all covenants have been complied with. The $2.5 billion Revolving Credit Facility, due March 2026, included terms which required the consent of the majority of the lenders if a proposed merger or consolidation of the Company would alter its legal personality or identity. Commercial paper programmes The Group operates commercial paper programmes using its Revolving Credit Facility as a backstop. The average US commercial paper in issue in 2023 was $433 million (2022: $195 million, 2021: nil). The average Euro commercial paper in issue in 2023 was £45 million (2022: £34 million, 2021: nil) inclusive of the effect of currency swaps, where applicable. There was no US or Euro commercial paper outstanding at 31 December 2023. 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: 2023 2022 2021 £m £m £m Within one year (711.3) (791.6) (326.8) Between one and two years (534.6) (724.3) (745.4) Between two and three years (746.2) (524.2) (646.5) Between three and four years (726.2) (740.3) (492.8) Between four and five years (704.1) (719.9) (698.0) Over five years (1,858.8) (1,963.7) (2,546.3) Debt financing (including interest) under the Revolving Credit Facility and in relation to unsecured loan notes (5,281.2) (5,464.0) (5,455.8) Short-term overdrafts – within one year (358.2) (505.7) (342.3) Future anticipated cash flows (5,639.4) (5,969.7) (5,798.1) Effect of discounting/financing rates 918.1 998.9 1,014.1 Debt financing (4,721.3) (4,970.8) (4,784.0) Analysis of fixed and floating rate debt by currency including the effect of cross-currency swaps: 2023 £m Fixed rate 1 Floating Period (months) 1 Currency $ – fixed 1,471.7 4.62 n/a 66 £ – fixed 1,094.1 2.97 n/a 130 € – fixed 1,820.5 2.12 n/a 48 – floating — n/a EURIBOR 0 Other (23.2) n/a n/a n/a 4,363.1 2022 £m Fixed rate 1 Floating Period (months) 1 Currency $ – fixed 1,379.5 4.18 n/a 60 £ – fixed 1,094.1 2.97 n/a 143 € – fixed 2,080.6 2.21 n/a 55 – floating — n/a EURIBOR 0 Other (89.1) n/a n/a n/a 4,465.1 2021 £m Fixed rate 1 Floating Period (months) 1 Currency $ – fixed 1,231.8 4.18 n/a 72 £ – fixed 1,094.1 2.97 n/a 155 € – fixed 1,976.0 2.04 n/a 69 – floating 210.2 n/a EURIBOR 3 Other (70.4) n/a n/a n/a 4,441.7 Note 1 Weighted average. The following table is an analysis of future undiscounted anticipated cash flows in relation to the Group’s financial derivatives, which include interest rate swaps, forward contracts and other foreign exchange swaps assuming interest rates and foreign exchange rates as at 31 December: Financial liabilities Financial assets 2023 Payable Receivable Payable Receivable £m £m £m £m Within one year 682.2 681.3 335.3 310.7 Between one and two years 15.9 15.7 487.4 479.6 Between two and three years 15.0 14.6 37.5 32.3 Between three and four years 14.7 14.2 37.1 32.5 Between four and five years 3.7 3.5 646.6 714.8 731.5 729.3 1,543.9 1,569.9 Financial liabilities Financial assets 2022 Payable Receivable Payable Receivable £m £m £m £m Within one year 1,186.3 1,126.2 347.1 345.7 Between one and two years — — 11.6 6.2 Between two and three years — — 449.8 461.8 1,186.3 1,126.2 808.5 813.7 Financial liabilities Financial assets 2021 Payable Receivable Payable Receivable £m £m £m £m Within one year 185.8 173.7 581.1 582.5 Between one and two years 551.4 521.1 30.0 30.4 Between two and three years 11.6 6.0 — — Between three and four years 449.8 445.6 — — 1,198.6 1,146.4 611.1 612.9 Analysis of change in financing activities (inclusive of leases) The table below details changes arising from financing activities, including both cash and non-cash changes. 2023 Opening balance Cash flow Acquisition of subsidiaries Foreign exchange Interest and other Closing balance £m £m £m £m £m £m Borrowings (excluding lease liabilities) (notes 11, 20 and 25) 1 4,465.1 (48.9) 48.9 (98.7) (3.3) 4,363.1 Derivatives (notes 11, 17, 18 and 19) 52.3 (46.0) — (50.8) 13.6 (30.9) Lease liabilities (note 12) 2 2,210.6 (361.6) 1.9 (75.6) 379.2 2,154.5 Liabilities from financing activities 6,728.0 (456.5) 50.8 (225.1) 389.5 6,486.7 Cash and short-term deposits (notes 11 and 25) (2,491.5) 216.9 (22.5) 79.6 — (2,217.5) Bank overdrafts 505.7 (147.5) — — — 358.2 4,742.2 (387.1) 28.3 (145.5) 389.5 4,627.4 2022 Opening balance Cash flow Acquisition of subsidiaries Foreign exchange Interest and other Closing balance £m £m £m £m £m £m Borrowings (excluding lease liabilities) (note 11, 20 and 25) 1 4,441.7 (220.6) — 237.2 6.8 4,465.1 Derivatives (notes 11, 17, 18 and 19) 50.6 — — 6.4 (4.7) 52.3 Lease liabilities (note 12) 2 2,041.8 (402.0) 0.1 145.8 424.9 2,210.6 Share repurchase commitments 211.7 (211.7) — — — — Liabilities from financing activities 6,745.8 (834.3) 0.1 389.4 427.0 6,728.0 Cash and short-term deposits (notes 11 and 25) (3,882.9) 1,494.4 (38.8) (64.2) — (2,491.5) Bank overdrafts 342.3 163.4 — — — 505.7 3,205.2 823.5 (38.7) 325.2 427.0 4,742.2 Notes 1 Borrowings includes: bonds and bank loans. The interest and other amounts within borrowings comprises amortisation of capitalised borrowing costs. 2 Repayment of lease liabilities includes £102.9 million (2022: £92.4 million) of interest paid on lease liabilities recognised within net cash inflow from operating activities (note 11). Interest and other within lease liabilities comprises interest on leases as well as the lease liability additions and disposals as disclosed in note 12. |
Analysis of cash flows
Analysis of cash flows | 12 Months Ended |
Dec. 31, 2023 | |
Cash flows from (used in) operating activities [abstract] | |
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-14. Net cash from operating activities: 2023 2022 2021 £m £m £m Profit for the year 197.2 775.4 720.7 Taxation 149.1 384.4 230.1 Revaluation and retranslation of financial instruments (6.8) (76.0) 87.8 Finance costs 389.0 359.4 283.6 Finance and investment income (127.3) (145.4) (69.4) (Earnings)/loss from associates - after interest and tax (70.2) 60.4 (23.8) Adjustments for: Non-cash share-based incentive plans (including share options) 140.1 122.0 99.6 Depreciation of property, plant and equipment 165.1 166.9 151.2 Depreciation of right-of-use assets 256.8 262.2 272.9 Impairment charges included within restructuring costs 1 184.6 43.3 39.2 Goodwill impairment 63.6 37.9 1.8 Amortisation and impairment of acquired intangible assets 727.9 62.1 97.8 Amortisation of other intangible assets 24.8 21.9 19.9 Investment and other impairment charges/(reversals) 17.8 77.0 (42.4) (Gains)/losses on disposal of investments and subsidiaries (7.1) 36.3 10.6 Gains on remeasurement of equity interests arising from a change in scope of ownership — (66.5) — Losses/(gains) of sale of property, plant and equipment 0.4 (6.4) (1.3) Decrease/(increase) in trade receivables and accrued income 231.8 (498.6) (458.9) (Decrease)/increase in trade payables and deferred income (238.0) 170.6 777.8 Decrease/(increase) in other receivables 125.0 (154.1) (120.0) (Decrease)/increase in other payables - short-term (563.5) (259.6) 547.0 Increase/(decrease) in other payables - long-term 118.8 (67.0) (11.0) Increase/(decrease) in provisions 65.7 (38.0) (32.9) Corporation and overseas tax paid (395.3) (390.9) (391.1) Payment on early settlement of bonds — — (13.0) Interest paid on lease liabilities (102.9) (92.4) (88.4) Other interest and similar charges paid (274.5) (210.2) (173.7) Interest received 115.8 88.9 47.5 Investment income 12.9 24.5 17.8 Dividends from associates 43.4 37.6 53.4 Earnout payments recognised in operating activities 2 (6.0) (24.8) (3.8) Net cash inflow from operating activities 1,238.2 700.9 2,029.0 Notes 1 Impairment charges included within restructuring costs includes impairments for right-of-use assets, property, plant and equipment and other intangible assets. 2 Earnout payments in excess of the amount determined at acquisition are recorded as operating activities. Acquisitions and disposals: 2023 2022 2021 £m £m £m Initial cash consideration (227.0) (218.3) (227.6) Cash and cash equivalents acquired 22.5 38.8 (2.3) Earnout payments recognised in investing activities 1 (52.5) (46.6) (53.2) Purchase of other investments (including associates) (9.8) (10.1) (99.2) Acquisitions (266.8) (236.2) (382.3) Proceeds on disposal of investments and subsidiaries 2 99.5 50.1 51.9 Cash and cash equivalents disposed (0.7) (12.4) (23.6) Disposals of investments and subsidiaries 98.8 37.7 28.3 Cash consideration received from non-controlling interests 46.1 — 39.5 Cash consideration for purchase of non-controlling interests (16.4) (84.2) (135.0) Cash consideration for non-controlling interests 29.7 (84.2) (95.5) Net acquisition payments and disposal proceeds (138.3) (282.7) (449.5) Notes 1 Earnout payments in excess of the amount determined at acquisition are recorded as operating activities. 2 Proceeds on disposal of investments and subsidiaries includes return of capital from investments in associates. Share repurchases and buybacks: 2023 2022 2021 £m £m £m Purchase of own shares by ESOP Trusts (53.9) (55.3) (89.2) Shares purchased into treasury for cancellation — (807.4) (729.3) Net cash outflow (53.9) (862.7) (818.5) Proceeds from issue of bonds: 2023 2022 2021 £m £m £m Proceeds from issue of €750 million bonds 652.6 — — Drawdown from revolving credit facility 400.0 — — Net cash inflow 1,052.6 — — Repayment of borrowings: 2023 2022 2021 £m £m £m Decrease in drawings on bank loans — (11.3) (36.3) Repayment of borrowing-related derivatives (46.0) — — Repayment of revolving credit facility (400.0) — — Net repayment of debt assumed on acquisition (48.9) — — Repayment of €750 million bonds (652.6) — — Repayment of $500 million bonds — — (360.8) Repayment of €250 million bonds — (209.3) — Net cash outflow (1,147.5) (220.6) (397.1) Cash and cash equivalents: 2023 2022 2021 £m £m £m Cash at bank and in hand 2,036.8 2,271.6 2,776.6 Short-term bank deposits 180.7 219.9 1,106.3 Overdrafts 1 (358.2) (505.7) (342.3) 1,859.3 1,985.8 3,540.6 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases Disclosure [Abstract] | |
Leases | 12. Leases The movements in 2023 and 2022 were as follows: Right-of-use assets Land and buildings 1 £m Plant and Total 1 January 2022 1,357.0 38.1 1,395.1 Additions 363.8 23.8 387.6 Transfers to net investment in subleases (7.0) — (7.0) Disposals (42.2) (0.8) (43.0) Depreciation of right-of-use assets (245.3) (16.9) (262.2) Impairment charges included within restructuring costs (33.3) (0.2) (33.5) Exchange adjustments 89.2 2.3 91.5 31 December 2022 1,482.2 46.3 1,528.5 Additions 255.0 49.6 304.6 Transfers to net investment in subleases (4.6) — (4.6) Disposals (9.2) (1.1) (10.3) Depreciation of right-of-use assets (235.9) (20.9) (256.8) Impairment charges included within restructuring costs (128.8) — (128.8) Exchange adjustments (49.1) (1.3) (50.4) 31 December 2023 1,309.6 72.6 1,382.2 Note 1 For the year ended 31 December 2023, the Company has £20.8 million (2022: £18.5 million) of right-of-use assets that are classified as investment property. Lease liabilities Land and Plant and Total 1 January 2022 2,002.5 39.3 2,041.8 Additions 353.6 23.7 377.3 Interest expense related to lease liabilities 94.2 1.5 95.7 Disposals (46.1) (1.9) (48.0) Repayment of lease liabilities (including interest) (385.6) (16.4) (402.0) Exchange adjustments 143.6 2.2 145.8 31 December 2022 2,162.2 48.4 2,210.6 Additions 237.7 50.2 287.9 Interest expense related to lease liabilities 103.4 2.9 106.3 Disposals (11.4) (1.7) (13.1) Repayment of lease liabilities (including interest) (340.0) (21.6) (361.6) Exchange adjustments (74.1) (1.5) (75.6) 31 December 2023 2,077.8 76.7 2,154.5 The following table shows the breakdown of the lease expense between amounts charged to operating profit and amounts charged to finance costs: 2023 2022 2021 £m £m £m Depreciation of right-of-use assets: Land and buildings (235.9) (245.3) (254.7) Plant and machinery (20.9) (16.9) (18.2) Impairment charges (128.8) (33.5) (12.5) Short-term lease expense (22.2) (20.2) (18.0) Low-value lease expense (2.8) (1.9) (2.3) Variable lease expense (45.5) (57.3) (56.2) Sublease income 17.3 18.6 17.3 Charge to operating profit (438.8) (356.5) (344.6) Interest expense related to lease liabilities (106.3) (95.7) (90.9) Charge to profit before taxation for leases (545.1) (452.2) (435.5) Variable lease payments primarily include real estate taxes and insurance costs. The maturity of lease liabilities at 31 December 2023 and 2022 were as follows: 2023 2022 £m £m Within one year 405.9 379.1 Between one and two years 326.9 337.7 Between two and three years 282.1 293.0 Between three and four years 261.0 252.3 Between four and five years 231.1 234.8 Over five years 1,265.2 1,328.5 2,772.2 2,825.4 Effect of discounting (617.7) (614.8) Lease liability at end of year 2,154.5 2,210.6 Short-term lease liability 292.3 282.4 Long-term lease liability 1,862.2 1,928.2 The total committed future cash flows for leases not yet commenced at 31 December 2023 is £280.0 million (2022: £440.0 million). The Group does not face a significant liquidity risk with regard to its lease liabilities. Refer to note 24 for management of liquidity risk. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Intangible Assets And Goodwill [Abstract] | |
Intangible Assets | 13. Intangible Assets Goodwill The movements in 2023 and 2022 were as follows: £m Cost 1 January 2022 10,991.0 Additions 1 262.6 Disposals — Exchange adjustments 891.0 31 December 2022 12,144.6 Additions 1 319.1 Disposals — Exchange adjustments (484.5) 31 December 2023 11,979.2 Accumulated impairment losses and write-downs 1 January 2022 3,378.7 Impairment losses for the year 37.9 Exchange adjustments 274.6 31 December 2022 3,691.2 Impairment losses for the year 63.6 Exchange adjustments (164.5) 31 December 2023 3,590.3 Net book value 31 December 2023 8,388.9 31 December 2022 8,453.4 1 January 2022 7,612.3 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. Other intangible assets The movements in 2023 and 2022 were as follows: Brands Acquired Other Total £m £m £m £m Cost 1 January 2022 1 1,067.3 921.4 288.1 2,276.8 Additions — — 14.9 14.9 Disposals and derecognition 1 — (33.8) (59.2) (93.0) New acquisitions — 46.5 1.2 47.7 Other movements 2 — 9.3 0.8 10.1 Exchange adjustments 1 98.7 129.8 34.7 263.2 31 December 2022 1 1,166.0 1,073.2 280.5 2,519.7 Additions — — 40.0 40.0 Disposals and derecognition — (15.1) (51.8) (66.9) Reclassifications (665.4) 665.4 — — New acquisitions — 138.5 2.9 141.4 Other movements 2 — — 17.0 17.0 Exchange adjustments (28.4) (47.5) (9.4) (85.3) 31 December 2023 472.2 1,814.5 279.2 2,565.9 Amortisation and impairment 1 January 2022 1 56.8 648.0 212.5 917.3 Charge for the year — 61.9 21.9 83.8 Impairment charges included within restructuring costs 3 — — 29.0 29.0 Disposals and derecognition 1 — (33.6) (59.4) (93.0) Exchange adjustments 1 5.8 108.2 16.7 130.7 31 December 2022 1 62.6 784.5 220.7 1,067.8 Charge for the year — 727.9 24.8 752.7 Other movements 2 — — (0.7) (0.7) Disposals and derecognition — (15.1) (51.5) (66.6) Exchange adjustments (2.8) (27.0) (7.4) (37.2) 31 December 2023 59.8 1,470.3 185.9 1,716.0 Net book value 31 December 2023 412.4 344.2 93.3 849.9 31 December 2022 1,103.4 288.7 59.8 1,451.9 1 January 2022 1,010.5 273.4 75.6 1,359.5 Notes 1 The acquired intangibles balances within these line items have been re-presented to reflect the derecognition of previously fully amortised assets that had no future economic benefit in prior periods. 2 Other movements in acquired intangibles include reclassifications of items previously recorded in trade and other receivables; and 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. 3 Refer to note 3 for further explanation in relation to the impairment charges included within restructuring costs. Cash-generating units (CGUs) with significant goodwill and brands with an indefinite useful life as at 31 December are: Goodwill Brands with an indefinite useful life 2023 2022 2023 2022 £m £m £m £m GroupM 3,254.9 3,178.3 — — Wunderman Thompson 1,165.0 1,210.8 — 442.0 VMLY&R 814.6 776.0 — 207.6 Ogilvy 809.3 849.8 213.2 222.8 BCW 618.8 646.0 112.7 140.5 AKQA Group 600.1 628.7 — — FGS Global 452.1 451.8 — — Hill & Knowlton 141.7 145.7 33.2 34.8 Landor Group 115.0 106.5 53.3 55.7 Other 417.4 459.8 — — 8,388.9 8,453.4 412.4 1,103.4 Other goodwill represents goodwill on a large number of CGUs, none of which is individually significant in comparison to the total carrying value of goodwill. Separately identifiable brands with an indefinite useful life are carried at historical cost in accordance with the Group’s accounting policy for intangible assets. The carrying values of the other brands with an indefinite useful life 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 2023 include brand names of £134.6 million (2022: £142.3 million), customer-related intangibles of £108.2 million (2022: £120.3 million) and other assets (including proprietary tools) of £101.4 million (2022: £26.1 million). Amortisation and Impairment The total amortisation and impairment of acquired intangible assets of £727.9 million (2022: £61.9 million, 2021: £97.8 million) includes a charge of £650.1 million (2022: £1.4 million, 2021: £47.9 million) predominantly in regard to certain brands that no longer have any useful life. This includes accelerated amortisation charges of £430.8 million and £202.3 million for Wunderman Thompson and Y&R brands respectively, due to the creation of VML in the fourth quarter of 2023. 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 goodwill impairment charge of £63.6 million (2022: £37.9 million, 2021: £1.8 million) recognised during the year relates to businesses in the Group that have closed or where the impact of current macroeconomic conditions and trading circumstances indicate impairment to the carrying value. This year, £40.3 million of the impairment charge related to the Global Integrated Agencies segment and £23.3 million related to the Specialist Agencies segment. Impairment assessment process Under IFRS, an impairment charge is required for both goodwill and other indefinite life assets when the carrying amount exceeds the 'recoverable amount', defined as the higher of fair value less costs of disposal and value in use. The review assessed whether the carrying value of goodwill and intangible assets with indefinite useful lives was supported by the value in use determined as the net present value of future cash flows. Recoverable amount assessment Due to the significant number of CGUs, the impairment test was performed in two steps. In the first step, the recoverable amount was calculated for each CGU using the latest available forecasts for 2023 and/or 2024, nil growth rate thereafter (2022: nil) and a conservative pre-tax discount rate of 14.7% (2022: 15.5%). The pre-tax discount rate of 14.7% was above the rate calculated for the global networks of 13.7% (2022: 14.5%). For smaller CGUs that operate primarily in a particular region subject to higher risk, the higher of 14.7% or 100 basis points above the regional discount rate was used in the first step. The recoverable amount was then compared to the carrying amount, which includes goodwill, intangible assets and other assets. CGUs where the recoverable amount exceeded the carrying amount were not considered to be impaired. Those CGUs where the recoverable amount did not exceed the carrying amount were then further reviewed in the second step. In the second step, these CGUs were retested for impairment using more refined assumptions. This included using a CGU-specific pre-tax discount rate and management forecasts for a projection period of up to five years, followed by an assumed long-term growth rate of 2.0% (2022: 2.0%). If the recoverable amount using the more specific assumptions did not exceed the carrying value of a CGU, an impairment charge was recorded. The long-term growth rate is derived from management’s best estimate of the likely long-term trading performance with reference to external industry reports and other relevant market trends. As at 31 December 2023, we have assessed long-term industry trends based on recent historical data and assumed a long-term growth rate of 2.0% (2022: 2.0%). Management has made the judgement that the long-term growth rate does not exceed the long-term average growth rate for the industry. Discount rates The discount rate uses the capital asset pricing model (CAPM) to derive the cost of equity along with an estimated cost of debt that is weighted by an appropriate capital structure to derive an indication of a weighted average cost of capital, which is then adjusted for relevant market and asset-specific risk where they are not already adjusted for within the underlying cash flow estimates. The cost of equity is calculated based on long-term government bond yield, an estimate of the required premium for investment in equity relative to government securities and further considers the volatility associated with peer public companies relative to the market. The cost of debt reflects an estimated market yield for long-term debt financing after taking into account the credit profile of public peer companies in the industry. The capital structure used to weight the cost of equity and cost of debt has been derived from the observed capital structure of public peer companies. The pre-tax discount rate applied to the cash flow projections for the CGUs that operate globally was 13.7% (2022: 14.5%). We developed a global discount rate that takes into account the diverse nature of the operations, as these CGUs operate with a diverse range of clients in a range of industries throughout the world, hence are subject to similar levels of market risks. The pre-tax discount rates applied to the CGUs that have more regional specific operations ranged from 12.6% (2022: 14.0%) to 28.4% (2022: 22.6%). Discounted cash flow assessment Our approach in determining the recoverable amount utilises a discounted cash flow methodology, which necessarily involves making numerous estimates and assumptions regarding revenue less pass-through costs 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 operating margins and discount rates. The key assumptions take account of the business’s expectations for the projection period. These expectations consider the macroeconomic environment, industry and market conditions, the CGU’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 CGU 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. 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. Historically, the Group's impairment losses have resulted from a specific event, condition or circumstance in one or more of our companies, such as the impact of Covid-19 or the loss of a significant client. As a result, changes in the assumptions used in our impairment model have generally not had a significant effect on the impairment charges recognised. Following the £650.1 million amortisation charge recorded in the fourth quarter of 2023, described further above and in note 3, for certain brands that no longer have any useful life, as at 31 December 2023 there are no CGUs for which a reasonably possible change in key assumptions would lead to a significant impairment. 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, 2023 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, plant and equipment | 14. Property, plant and equipment The movements in 2023 and 2022 were as follows: Land Freehold Leasehold Fixtures, Computer Total £m £m £m £m £m £m Cost 1 January 2022 43.2 61.4 1,075.0 149.5 391.8 1,720.9 Additions 13.8 0.1 75.8 32.1 86.6 208.4 New acquisitions — — 0.5 0.2 0.6 1.3 Disposals (0.1) (8.3) (62.1) (40.0) (72.1) (182.6) Exchange adjustments (16.9) 39.3 89.7 23.0 39.8 174.9 31 December 2022 40.0 92.5 1,178.9 164.8 446.7 1,922.9 Additions 3.5 3.3 88.3 17.1 65.0 177.2 New acquisitions — — 0.8 — — 0.8 Disposals — — (155.9) (51.0) (95.6) (302.5) Exchange adjustments (31.6) (61.5) (51.0) (11.5) (26.3) (181.9) 31 December 2023 11.9 34.3 1,061.1 119.4 389.8 1,616.5 Depreciation and impairment 1 January 2022 — 2.7 469.6 71.9 280.3 824.5 Charge for the year — 0.7 74.0 26.5 65.7 166.9 Impairment charges included within restructuring costs — — 9.1 0.6 0.1 9.8 Disposals — (1.7) (63.5) (36.7) (71.1) (173.0) Exchange adjustments — 0.3 43.2 17.5 33.0 94.0 31 December 2022 — 2.0 532.4 79.8 308.0 922.2 Charge for the year — 1.0 70.5 24.9 68.7 165.1 Impairment charges included within restructuring costs — — 52.2 2.7 0.9 55.8 Disposals — (0.2) (144.9) (48.4) (94.1) (287.6) Exchange adjustments — (0.2) (29.0) (14.2) (24.1) (67.5) 31 December 2023 — 2.6 481.2 44.8 259.4 788.0 Net book value 31 December 2023 11.9 31.7 579.9 74.6 130.4 828.5 31 December 2022 40.0 90.5 646.5 85.0 138.7 1,000.7 1 January 2022 43.2 58.7 605.4 77.6 111.5 896.4 At 31 December 2023, capital commitments contracted, but not provided for in respect of property, plant and equipment, were £38.4 million (2022: £128.2 million). |
Interests in associates, joint
Interests in associates, joint ventures and other investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments accounted for using equity method [abstract] | |
Interests in associates, joint ventures and other investments | 15. Interests in associates and other investments The movements in 2023 and 2022 were as follows: Interests in associates Other £m £m 1 January 2022 412.9 318.3 Additions 4.4 5.1 Loss from associates - after interest and tax (60.4) — Share of other comprehensive income of associate undertakings 51.2 — Dividends (37.6) — Other movements 2.9 — Exchange adjustments 17.1 — Disposals (9.6) (16.0) Reclassification from subsidiaries (5.9) — Reclassification from associates to other investments (22.5) 61.6 Revaluation of other investments through profit or loss — 23.1 Revaluation of other investments through other comprehensive income — (22.3) Amortisation of other intangible assets (0.2) — Impairment charges (47.2) — 31 December 2022 305.1 369.8 Additions 39.4 2.5 Gain from associates - after interest and tax 25.1 — Share of other comprehensive loss of associate undertakings (0.9) — Dividends (30.4) — Other movements (12.5) — Exchange adjustments (19.3) — Disposals (5.4) (10.4) Reclassification to subsidiaries — — Reclassification from associates to other investments — — Revaluation of other investments through profit or loss — (26.2) Revaluation of other investments through other comprehensive income — (3.0) Amortisation of other intangible assets — — Impairment charges (14.6) — 31 December 2023 286.5 332.7 Interests in joint ventures are immaterial and none of the Group's associates are individually material at 31 December 2023. The investments included above as 'Other investments' represent investments in equity securities that present the Group with the 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 at the balance sheet date. For unlisted securities, where market value is not available, the Group has estimated relevant fair values on the basis of information from outside sources at the balance sheet date. The carrying values of the Group’s associates are reviewed for impairment in accordance with the Group’s accounting policies. Aggregate information of associates that are not individually material The following table presents a summary of the aggregate financial performance of the Group’s associate undertakings. 2023 2022 2021 £m £m £m Earnings/(loss) from associates - after interest and tax (note 4) 70.2 (60.4) 23.8 Share of other comprehensive (loss)/ earnings of associate undertakings (0.9) 51.2 13.5 Share of total comprehensive earnings/(loss) of associate undertakings 69.3 (9.2) 37.3 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. As at 31 December 2023, share of losses of £30.1 million (2022: £29.5 million) for the US and £ 137.9 million (2022: £33.8 million) for the Rest of World have not been recognised in relation to Kantar, as the investment was previously reduced to zero. As at 31 December 2021, the cumulative share of unrecognised losses in relation to Imagina, an associate in Spain with the investment carrying value reduced to zero, were £23.0 million. In 2022, the Group partially disposed of its investment in Imagina resulting in its reclassification from interests in associates to other investments (within the scope of IFRS 9), designated as fair value through other comprehensive income. Refer to note 25 for further details on financial instruments held at fair value though other comprehensive income. At 31 December 2023, capital commitments contracted, but not provided for, in respect of interests in associates and other investments were £2.2 million (2022: £3.2 million). |
Deferred tax
Deferred tax | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | |
Deferred tax | 16. 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, 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. The following is the analysis of the deferred tax balances for financial reporting purposes: Gross 2023 Offset of balances arising from a single transaction 1 2023 Gross balances before offset within countries 2023 Offset within countries 2023 As reported 2023 £m £m £m £m £m Deferred tax assets 684.9 (94.0) 590.9 (266.5) 324.4 Deferred tax liabilities (539.0) 94.0 (445.0) 266.5 (178.5) 145.9 — 145.9 — 145.9 Gross 2022 Offset of balances arising from a single transaction 1 2022 Gross balances before offset within countries 2022 Offset within countries 2022 As reported 2022 £m £m £m £m £m Deferred tax assets 734.2 (145.4) 588.8 (266.7) 322.1 Deferred tax liabilities (762.9) 145.4 (617.5) 266.7 (350.8) (28.7) — (28.7) — (28.7) Note 1 The Group has applied Deferred tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12). Transactions which give rise to the recognition of an asset and a liability on the Group’s balance sheet, including leases for which the Group recognises a right-of-use asset and a lease liability, lead to taxable and deductible temporary differences in certain jurisdictions. The resulting deferred tax assets and deferred tax liabilities arising from these temporary differences have been offset and reported net on the Group’s balance sheet. The following are the major gross deferred tax assets before offset within countries recognised by the Group and movements thereon in 2023 and 2022: Deferred Accounting Retirement Plant and equipment Property Tax Share- Restructuring Other Total £m £m £m £m £m £m £m £m £m £m 1 January 2022 108.5 106.2 53.4 15.0 53.0 110.5 43.5 61.1 13.8 565.0 Acquisition of subsidiaries — — — — — — — — 1.1 1.1 (Charge)/credit to income (38.7) 3.3 (2.9) (1.0) (9.0) 5.0 1.3 21.2 (14.2) (35.0) Charge to other comprehensive income — — (7.0) — — — — — — (7.0) Charge to equity — — — — — — (15.5) — — (15.5) Exchange differences and other movements 4.5 10.6 4.5 33.9 9.7 7.0 3.0 2.3 4.7 80.2 31 December 2022 74.3 120.1 48.0 47.9 53.7 122.5 32.3 84.6 5.4 588.8 Acquisition of subsidiaries — — — — — — — — — — (Charge)/credit to income (6.0) 13.8 2.8 (11.8) (5.7) (11.5) 3.7 38.7 1.8 25.8 Credit to other comprehensive income — — 1.5 — — — — — — 1.5 Charge to equity — — — — — — (0.3) — — (0.3) Exchange differences and other movements (3.2) (2.2) (2.6) (0.3) 8.4 (6.8) (0.7) (15.7) (1.8) (24.9) 31 December 2023 65.1 131.7 49.7 35.8 56.4 104.2 35.0 107.6 5.4 590.9 Other temporary differences comprise a number of items, none of which is individually significant to the Group’s consolidated balance sheet. At 31 December 2023 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 before offset within countries and movements thereon in 2023 and 2022: Brands Associate Goodwill Plant and equipment Other Total £m £m £m £m £m £m 1 January 2022 325.1 36.8 133.2 — 40.9 536.0 Acquisition of subsidiaries 15.1 — — — — 15.1 (Credit)/charge to income (12.4) (3.5) 19.7 (14.2) (10.5) (20.9) Charge to other comprehensive income — — — — 0.4 0.4 Exchange differences and other movements 24.8 3.2 20.5 37.2 1.2 86.9 31 December 2022 352.6 36.5 173.4 23.0 32.0 617.5 Acquisition of subsidiaries 35.0 — — — — 35.0 (Credit)/charge to income (173.7) (15.6) 18.4 0.3 (1.7) (172.3) Credit to other comprehensive income — — — — (0.2) (0.2) Exchange differences and other movements (21.2) (1.1) (10.8) (1.1) (0.8) (35.0) 31 December 2023 192.7 19.8 181.0 22.2 29.3 445.0 Other temporary differences comprise a number of items none of which is individually significant to the Group's consolidated balance sheet. At 31 December 2023 the balance related to temporary differences in relation to unremitted earnings of subsidiaries and other temporary differences. At the balance sheet date, the Group has gross tax losses and other temporary differences of £10,321.0 million (2022: £7,667.4 million) available for offset against future profits. Deferred tax assets have been recognised in respect of the tax benefit of £2,399.4 million (2022: £2,259.7 million) of such tax losses and other temporary differences. No deferred tax asset has been recognised in respect of the remaining £7,921.6 million (2022: £5,407.7 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 £92.0 million (2022: £60.3 million) that will expire within one 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 £1,355.1 million (2022: £1,346.1 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, 2023 | |
Trade and other receivables [abstract] | |
Trade and other receivables | 17. Trade and other receivables The following are included in trade and other receivables 1 : 2023 2022 Amounts to be realised within one year £m £m Trade receivables (net of loss allowance) 7,055.0 7,403.9 Unbilled costs 2 273.6 352.4 VAT and sales taxes recoverable 370.7 448.1 Prepayments 239.0 236.6 Fair value of derivatives 1.6 5.1 Other debtors 3 520.7 585.3 8,460.6 9,031.4 1 Accrued income was previously presented in Trade and other receivables 2 Previously named 'Work in progress' 3 This balance includes campus related enhancement prepayments and other individually not material items The ageing of trade receivables and other financial assets by due date is as follows: Carrying amount at 31 December 2023 Not Days past due 0-30 31-90 91-180 181 Greater 2023 £m £m £m £m £m £m £m Gross trade receivables 7,098.9 6,173.0 612.7 183.0 52.7 30.6 46.9 Expected credit losses (43.9) (1.4) (1.1) (0.9) (2.6) (10.3) (27.6) 7,055.0 6,171.6 611.6 182.1 50.1 20.3 19.3 Expected credit loss rate 0.6 % — % 0.2 % 0.5 % 4.9 % 33.7 % 58.8 % Gross accrued income 3,165.6 2,022.1 548.3 336.7 244.5 14.0 — Expected credit losses (15.0) (0.3) (0.5) (1.3) (12.8) (0.1) — 3,150.6 2,021.8 547.8 335.4 231.7 13.9 — Expected credit loss rate 0.5 % — % 0.1 % 0.4 % 5.2 % 0.7 % n/a Other financial assets 514.1 413.2 33.8 14.4 6.4 17.2 29.1 10,719.7 8,606.6 1,193.2 531.9 288.2 51.4 48.4 Carrying amount at 31 December 2022 Not Days past due 0-30 31-90 91-180 181 Greater 2022 £m £m £m £m £m £m £m Gross trade receivables 7,475.4 6,386.5 706.4 247.1 66.8 23.5 45.1 Expected credit losses (71.5) (1.6) (5.8) (6.6) (6.6) (13.3) (37.6) 7,403.9 6,384.9 700.6 240.5 60.2 10.2 7.5 Expected credit loss rate 1.0 % — % 0.8 % 2.7 % 9.9 % 56.6 % 83.4 % Gross accrued income 3,485.6 2,027.0 603.8 450.5 376.8 27.5 — Expected credit losses (17.3) (0.1) (0.2) (0.1) (16.9) — — 3,468.3 2,026.9 603.6 450.4 359.9 27.5 — Expected credit loss rate 0.5 % — % — % — % 4.5 % — % n/a Other financial assets 612.0 538.8 31.2 6.1 1.0 6.2 28.7 11,484.2 8,950.6 1,335.4 697.0 421.1 43.9 36.2 Other financial assets are included in other debtors. 2023 2022 Amounts to be realised after more than one year £m £m Prepayments 2.0 3.9 Fair value of derivatives 32.3 0.6 Other debtors 174.9 214.1 209.2 218.6 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. Other debtors falling due after more than one year at 31 December 2023 includes £13.7 million in relation to pension plans in surplus (2022: £15.4 million). 2023 2022 £m £m Expected credit losses At beginning of year 71.5 70.5 New acquisitions 0.6 — Charged to the income statement 14.9 29.1 Released to the income statement (22.2) (8.4) Exchange adjustments (5.3) 5.1 Utilisations and other movements (15.6) (24.8) At end of year 43.9 71.5 The expected credit loss is equivalent to 0.6% (2022: 1.0%, 2021: 1.1%) of gross trade accounts receivables. Expected credit losses on unbilled costs and other debtors were immaterial for the years presented. The Group considers that the carrying amount of trade and other receivables approximates their fair value. Expected credit losses Given the short-term nature of the Group’s trade receivables, unbilled costs, and accrued income, which are mainly due from large national or multinational |
Trade and other payables_ amoun
Trade and other payables: amounts falling due within one year | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other current payables [abstract] | |
Trade and other payables: amounts falling due within one year | 18. Trade and other payables: amounts falling due within one year The following are included in trade and other payables falling due within one year 1 : 2023 2022 £m £m Trade payables 10,825.7 11,182.3 Payments due to vendors (earnout agreements) 73.3 62.0 Liabilities in respect of put option agreements with vendors 13.6 18.8 Fair value of derivatives 1.8 58.0 Other creditors and accruals 2 2,408.7 2,914.8 13,323.1 14,235.9 Note 1 Deferred income was previously presented in Trade and other payables. 2 This balance includes staff costs, indirect taxes payable and other individually not material items. The Group considers that the carrying amount of trade and other payables approximates their fair value, except for liabilities in respect of put option agreements with vendors for which the fair value is £12.3 million (th is is level 3 fair value that is derived using a discounted cash flow approach). In all material respects, deferred income at 31 December 2022 was recognised as revenue during the year. Other than business-as-usual movements, and deferred income acquired on the acquisition of subsidiaries, there were no other significant changes in contract liability balances during the year. |
Trade and other payables_ amo_2
Trade and other payables: amounts falling due after more than one year | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other non-current payables [abstract] | |
Trade and other payables: amounts falling due after more than one year | 19. 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: 2023 2022 £m £m Payments due to vendors (earnout agreements) 125.4 98.1 Liabilities in respect of put option agreements with vendors 90.0 323.3 Fair value of derivatives 1.2 — Other creditors and accruals 66.2 69.5 282.8 490.9 The Group considers that the carrying amount of trade and other payables approximates their fair value, except for liabilities in respect of put option agreements with vendors for which the fair value is approximately £82.4 million (this is level 3 fair value that is derived using a discounted cash flow approach). Liabilities in respect of put option agreements with vendors are initially recorded at the present value of the redemption amount in accordance with IAS 32 and subsequently measured at amortised cost in accordance with IFRS 9. The cash flows of put options, which are discounted using the original effective interest rate, are dependent on future earnings and are remeasured each reporting period via the income statement. The Group's approach to payments due to vendors (earnouts) is further described in note 25. The following table sets out payments due to vendors (earnouts), comprising contingent consideration and the Directors’ best estimates of future earnout-related obligations: 2023 2022 £m £m Within one year 73.3 62.0 Between one and two years 54.1 19.5 Between two and three years 70.9 27.6 Between three and four years 0.4 28.6 Between four and five years — 22.4 198.7 160.1 The following table is an analysis of future anticipated cash flows in relation to liabilities in respect of put option agreements with vendors at 31 December: 2023 2022 £m £m Within one year 13.6 18.8 Between one and two years 24.0 5.2 Between two and three years 38.6 76.6 Between three and four years 9.8 99.2 Between four and five years 6.2 74.8 Over five years 11.4 67.5 103.6 342.1 |
Bank overdrafts, bonds and bank
Bank overdrafts, bonds and bank loans | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of bank overdraft bonds and bank loans [abstract] | |
Bank overdrafts, bonds and bank loans | 20. Bank overdrafts and bonds Amounts falling due within one year: 2023 2022 £m £m Bank overdrafts 358.2 505.7 Bonds 588.1 663.3 946.3 1,169.0 The Group considers that the carrying amount of bank overdrafts approximates their fair value. Amounts falling due after more than one year: 2023 2022 £m £m Bonds 3,775.0 3,801.8 The Group estimates that the fair value of corporate bonds is £4,119.5 million at 31 December 2023 (2022: £4,049.1 million). The fair values of the bonds are based on quoted market prices and are within Level 1 of the fair value hierarchy. The bonds and bank overdrafts included within liabilities fall due for repayment as follows: 2023 2022 £m £m Within one year 946.3 1,169.0 Between one and two years 432.9 618.0 Between two and three years 647.2 441.5 Between three and four years 648.0 658.8 Between four and five years 647.5 661.1 Over five years 1,399.4 1,422.4 4,721.3 4,970.8 |
Provisions for liabilities and
Provisions for liabilities and charges | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of other provisions [abstract] | |
Provisions for liabilities and charges | 21. Provisions for liabilities and charges The movements in 2023 and 2022 were as follows: Employee Property Other Total 1 January 2022 140.3 70.6 57.6 268.5 Charged to the income statement 4.3 8.1 2.1 14.5 Acquisitions 1 — — 1.3 1.3 Utilised (32.5) (12.8) (4.7) (50.0) Released to the income statement — (3.2) (22.2) (25.4) Other movements 14.6 (4.8) 3.2 13.0 Exchange adjustments 16.4 4.9 1.4 22.7 31 December 2022 143.1 62.8 38.7 244.6 Charged to the income statement 3.1 64.2 24.9 92.2 Acquisitions 1 — — 0.6 0.6 Utilised (21.8) (18.7) (0.7) (41.2) Released to the income statement (2.3) (4.0) (8.5) (14.8) Other movements 38.1 (2.9) (0.2) 35.0 Exchange adjustments (7.4) (2.7) (1.8) (11.9) 31 December 2023 152.8 98.7 53.0 304.5 Note 1 Acquisitions include £0.6 million (2022: £1.3 million) of provisions arising from fair value adjustments related to the acquisition of subsidiary undertakings as required by IFRS 3 Business Combinations. Employee benefits relate to statutory or contractual employee entitlements where there is uncertainty over the timing or amount of the settlement. The majority of this provision relates to various employee defined contribution and deferred compensation plans in the USA. It is anticipated that these costs will be incurred when employees choose to take their benefits or depart from the Company. The property provision balance relates primarily to onerous property contracts and decommissioning where the Group has the obligation to make-good its leased properties. Where the Group has made a decision to exit a leased property, onerous property contract provisions do not include rent in accordance with IFRS 16 Leases, however, do include unavoidable costs related to the lease such as ongoing service charges. Utilisation of the recognised provisions is expected to be incurred in conjunction with the profile of the leases to which they relate. Other provisions primarily relate to legal provisions as well as various items that do not fall within the Group’s categories of provisions above. 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. Contingent liabilities The Group operates in a large number of markets with complex tax and legislative regimes that are open to subjective interpretation, and for which tax audits can take several years to resolve. The Group has received a number of demands and assessments from different states in India that have been or will be appealed to the courts, none of which are individually material. However, as permitted by IAS 37, the provision of any further information within this disclosure is expected to seriously prejudice the Group’s position in the dispute, given that appeals are ongoing. The Group believes that we will be successful in our appeals, however any appeal process is intrinsically uncertain. |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of share based payments [abstract] | |
Share-based payments | 22. Share-based payments Charges for share-based incentive plans were as follows: 2023 2022 2021 £m £m £m Share-based payments 140.1 122.0 99.6 Share-based payments comprise charges for stock options and restricted stock awards to employees of the Group. As of 31 December 2023, there was £179.9 million (2022: £200.7 million) of total unrecognised compensation cost related to the Group’s restricted stock plans. 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 three five The 2020, 2021, 2022 and 2023 EPSP awards are subject to three equally weighted performance conditions: three-year average Return on Invested Capital (ROIC), cumulative Adjusted Free Cash Flow (AFCF), and relative Total Shareholder Return (TSR). Achieving the threshold performance requirement will result in a vesting opportunity of 20% for that element. The vesting opportunity will increase on a straight-line basis to 100% of the award for maximum performance. The Compensation Committee has an overriding discretion to determine the extent to which the award will vest. Performance Share Awards (PSA) Conditional stock awards made under the 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. Leadership Share Awards WPP Leadership Awards are conditional stock awards made to around 1,900 of our key executives. Awards vest three years after grant, provided the participant is still employed within the Group. 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 below 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 charge 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 1 January 2023 number m Granted Forfeited Vested Non-vested 31 December 2023 number m Executive Performance Share Plan (EPSP) 20.4 7.8 (1.4) (3.9) 22.9 Performance Share Awards (PSA) 4.1 2.3 (0.5) (0.4) 5.5 Leadership Share Awards 11.3 5.9 (1.0) (3.8) 12.4 Weighted average fair value (pence per share) Executive Performance Share Plan (EPSP) 924 p 919 p 947 p 752 p 950 p Performance Share Awards (PSA) 952 p 857 p 939 p 926 p 915 p Leadership Share Awards 899 p 654 p 934 p 673 p 848 p Non-vested 1 January 2022 number m Granted Forfeited Vested Non-vested 31 December 2022 number m Executive Performance Share Plan (EPSP) 16.7 6.1 (2.2) (0.2) 20.4 Performance Share Awards (PSA) 3.1 4.0 (0.2) (2.8) 4.1 Leadership Share Awards 10.4 4.9 (1.2) (2.8) 11.3 Weighted average fair value (pence per share) Executive Performance Share Plan (EPSP) 900 p 1,025 p 1,055 p 613 p 924 p Performance Share Awards (PSA) 604 p 911 p 798 p 519 p 952 p Leadership Share Awards 922 p 787 p 881 p 795 p 899 p The total fair value of shares vested for all the Group’s restricted stock plans during the year ended 31 December 2023 was £81.6 million (2022: £65.4 million, 2021: £64.1 million). Share options 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, the stock option will lapse automatically. The Group grants stock options with a life of ten years, including the vesting period. WPP Worldwide Share Ownership Programme (WWOP) As at 31 December 2023, unexercised options over ordinary shares of 650,825 and unexercised options over ADRs of 72,695 have been granted under the WPP Worldwide Share Ownership Programme as follows: Number of ordinary Exercise price Exercise dates Unexercised options over ordinary shares 647,575 13.145 2017-2024 Unexercised options over ordinary shares 3,250 13.145 2018-2024 Number of ADRs Exercise price Exercise dates Unexercised options over ADR 72,695 102.670 2017-2024 WPP Share Option Plan 2015 (WSOP) As at 31 December 2023, unexercised options over ordinary shares of 15,369,025 and unexercised options over ADRs of 1,772,400 have been granted under the WPP Share Option Plan as follows: Number of ordinary Exercise price Exercise dates Unexercised options over ordinary shares 3,524,700 7.064 2025-2032 Unexercised options over ordinary shares 1,806,625 7.344 2023-2030 Unexercised options over ordinary shares 9,500 7.344 2023-2027 Unexercised options over ordinary shares 849,350 8.372 2021-2028 Unexercised options over ordinary shares 7,000 8.372 2021-2025 Unexercised options over ordinary shares 125,125 8.684 2025-2029 Unexercised options over ordinary shares 2,682,975 8.684 2025-2032 Unexercised options over ordinary shares 1,466,100 9.600 2022-2029 Unexercised options over ordinary shares 8,875 9.600 2022-2026 Unexercised options over ordinary shares 2,237,900 11.065 2023-2030 Unexercised options over ordinary shares 1,040,350 13.085 2020-2027 Unexercised options over ordinary shares 7,625 13.085 2020-2024 Unexercised options over ordinary shares 4,000 15.150 2019-2025 Unexercised options over ordinary shares 739,850 15.150 2018-2025 Unexercised options over ordinary shares 859,050 17.055 2019-2026 Number of ADRs Exercise price Exercise dates Unexercised options over ADR 409,115 44.120 2025-2032 Unexercised options over ADR 198,380 48.950 2023-2030 Unexercised options over ADR 318,125 52.600 2025-2032 Unexercised options over ADR 120,995 53.140 2021-2028 Unexercised options over ADR 169,790 62.590 2022-2029 Unexercised options over ADR 255,510 73.780 2023-2030 Unexercised options over ADR 117,650 88.260 2020-2027 Unexercised options over ADR 100,960 105.490 2020-2026 Unexercised options over ADR 81,875 115.940 2018-2025 The aggregate status of the WPP Share Option Plans during 2023 was as follows: Movements on options granted (represented in ordinary shares) 1 January 2023 Granted Exercised Forfeited Outstanding 31 December 2023 Exercisable 31 December 2023 WPP — — — — — — WWOP 1,639,025 — — (624,725) 1,014,300 — WSOP 21,299,025 5,586,650 (85,900) (2,568,750) 24,231,025 7,386,400 22,938,050 5,586,650 (85,900) (3,193,475) 25,245,325 7,386,400 1 January 2022 Granted Exercised Forfeited Outstanding 31 December 2022 Exercisable 31 December 2022 WPP 6,741 — — (6,741) — — WWOP 2,049,299 — (2,575) (407,699) 1,639,025 — WSOP 19,608,150 5,224,050 (123,125) (3,410,050) 21,299,025 3,188,675 21,664,190 5,224,050 (125,700) (3,824,490) 22,938,050 3,188,675 Weighted average exercise price for options over 1 January 2023 Granted Exercised Forfeited Outstanding 31 December 2023 Exercisable 31 December 2023 Ordinary shares (£) WPP — — — — — — WWOP 13.224 — — 13.432 13.145 — WSOP 10.356 — 8.350 9.959 9.652 — ADRs ($) WWOP 106.379 — — 109.949 102.670 — WSOP 67.910 — 48.950 66.181 62.587 44.120 1 January 2022 Granted Exercised Forfeited Outstanding 31 December 2022 Exercisable 31 December 2022 Ordinary shares (£) WPP 9.355 — — 9.355 — — WWOP 12.923 — 8.458 11.565 13.224 — WSOP 10.854 8.684 8.357 10.530 10.356 7.344 ADRs ($) WWOP 101.693 — — 85.706 106.379 — WSOP 72.228 52.600 53.270 71.674 67.910 48.950 Options over ordinary shares Outstanding Range of Weighted average Weighted average 7.344-17.055 10.455 70 Options over ADRs Outstanding Range of Weighted average Weighted average 44.120-115.940 64.166 80 As at 31 December 2023 there was £10.1 million (2022: £11.1 million) of total unrecognised compensation costs related to share options. The cost is expected to be recognised over a weighted average period of 19 months (2022: 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: 2023 2022 2021 Fair value of UK options (shares) 131.0 p 177.0 p 220.0 p Fair value of US options (ADRs) $8.59 $11.48 $14.89 Weighted average assumptions UK risk-free interest rate 4.00 % 2.92 % 0.63 % US risk-free interest rate 4.53 % 4.09 % 1.16 % Expected life (months) 48 48 48 Expected volatility 33 % 32 % 34 % Dividend yield 5.6 % 3.9 % 3.4 % 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 2023 was £8.41 (2022: £9.13, 2021: £9.64) and the average ADR price for the same period was $52.31 (2022: $56.80, 2021: $66.44). The average share price of the Group for year ended 31 December 2023 approximates the weighted average share price during the periods of exercise throughout the year. Expected volatility is sourced from external market data and represents the historical volatility in the Company’s share price over a period equivalent to the expected option life. Expected life is based on a review of historical exercise behaviour in the context of the contractual terms of the options, as described in more detail on page F-47. |
Employee Benefit Obligations
Employee Benefit Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Pension Costs [abstract] | |
Employee Benefit Obligations | 23. Employee Benefit Obligations 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: 2023 2022 2021 £m £m £m Defined contribution plans 198.1 191.3 162.8 Defined benefit plans charge to operating profit 15.0 13.5 14.9 Pension costs (note 5) 213.1 204.8 177.7 Net interest expense on pension plans (note 6) 4.3 2.2 1.8 217.4 207.0 179.5 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 2023. The majority of plans provide final salary benefits, with plan benefits typically based either on mandatory plans under local legislation, termination indemnity benefits, or on the rules of WPP-sponsored supplementary plans. The implications of IFRIC 14 have been allowed for where relevant, in particular with regard to the asset ceiling/irrecoverable surplus. 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 2023 amounted to £19.8 million (2022: £24.0 million, 2021: £16.7 million). Employer contributions and benefit payments in 2024 are expected to be approximately £17.0 million. (a) 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: 2023 2022 2021 £m % £m % £m % Equities 24.2 9.3 26.7 6.2 31.8 5.8 Bonds 170.2 65.7 208.8 48.5 259.7 47.0 Insured annuities 3.0 1.2 149.2 34.7 222.5 40.3 Property 1.3 0.5 1.4 0.3 1.0 0.2 Cash 18.3 7.1 18.1 4.2 15.3 2.8 Other 42.0 16.2 26.3 6.1 21.8 3.9 Total fair value of assets 259.0 100.0 430.5 100.0 552.1 100.0 Present value of liabilities (381.2) (552.6) (688.5) Deficit in the plans (122.2) (122.1) (136.4) Irrecoverable surplus — — (0.2) Net liability 1 (122.2) (122.1) (136.6) Plans in surplus 2 13.7 15.4 30.1 Plans in deficit (135.9) (137.5) (166.7) Notes 1 The related deferred tax asset is discussed in note 16. 2 The net asset related to plans in surplus of £13.7 million for 31 December 2023 (2022: £15.4 million) is recorded in the consolidated balance sheet within other debtors. The corresponding figures for 31 December 2021 are recorded in provision for post-employment benefits. All plan assets have quoted prices in active markets with the exception of other assets. 2023 2022 2021 Surplus/(deficit) in plans by region £m £m £m UK 0.7 2.3 0.4 North America (29.7) (37.1) (28.1) Western Continental Europe (60.1) (52.6) (74.0) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (33.1) (34.7) (34.7) Deficit in the plans (122.2) (122.1) (136.4) 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. 2023 Surplus/ (deficit) £m 2023 Present value of liabilities £m 2022 Surplus/ (deficit) £m 2022 Present value of liabilities £m 2021 Surplus/ (deficit) £m 2021 Present value of liabilities £m Funded plans by region UK 0.7 (9.2) 2.3 (155.5) 0.4 (231.9) North America 7.4 (182.9) 4.1 (208.5) 20.1 (237.9) Western Continental Europe (34.1) (70.6) (29.1) (67.9) (45.1) (87.6) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (5.4) (27.6) (4.1) (25.4) (6.4) (25.7) Deficit/liabilities in the funded plans (31.4) (290.3) (26.8) (457.3) (31.0) (583.1) Unfunded plans by region North America (37.1) (37.1) (41.2) (41.2) (48.2) (48.2) Western Continental Europe (26.0) (26.0) (23.5) (23.5) (28.9) (28.9) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (27.7) (27.8) (30.6) (30.6) (28.3) (28.3) Deficit/liabilities in the unfunded plans (90.8) (90.9) (95.3) (95.3) (105.4) (105.4) Deficit/liabilities in the plans (122.2) (381.2) (122.1) (552.6) (136.4) (688.5) In accordance with IAS 19, plans that are wholly or partially funded are considered funded plans. (b) 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: 2023 2022 2021 2020 % pa % pa % pa % pa UK Discount rate 1 4.7 5.1 1.8 1.3 Rate of increase in pensions in payment 2.5 4.4 4.5 4.4 Inflation 3.1 3.0 3.2 2.8 North America Discount rate 1 4.9 5.2 2.6 2.0 Rate of increase in salaries 2 n/a n/a n/a 3.0 Western Continental Europe Discount rate 1 3.4 4.1 1.2 0.9 Rate of increase in salaries 2.5 2.5 2.3 2.2 Rate of increase in pensions in payment 2.0 2.0 1.8 1.8 Inflation 2.0 2.0 1.7 1.7 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe Discount rate 1 6.5 6.4 5.3 4.2 Rate of increase in salaries 6.2 5.7 5.6 5.2 Inflation 3.4 3.4 3.7 3.7 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 US as all plans were frozen. 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. The investment strategy of the Group varies by country, albeit there was a general directive by the Group in recent years to de-risk the larger funded plans (mainly in the US and UK) and move towards a liability driven investment strategy. 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 2023, 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 21.8 22.0 23.4 21.1 20.3 Current pensioners 23.6 23.4 24.9 24.2 25.1 Future pensioners 23.5 23.4 25.4 23.4 20.3 Future pensioners 25.2 24.8 27.0 26.0 25.1 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. The life expectancies after age 65 at 31 December 2022 were 22.3 years and 24.0 years for male and female current pensioners (at age 65) respectively, and 24.0 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 ten 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) 8.0 7.4 6.3 10.2 5.9 Expected benefit payments over the next ten years (£m) within 12 months 30.2 18.5 0.7 6.0 5.0 in 2025 28.3 18.1 0.6 6.0 3.6 in 2026 29.2 17.8 0.6 6.2 4.6 in 2027 29.0 18.7 0.5 6.2 3.6 in 2028 27.6 15.7 0.5 7.0 4.4 in the next five years 144.4 83.7 1.6 33.2 25.9 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. (Decrease)/increase 2023 2022 Sensitivity analysis of significant actuarial assumptions £m £m Discount rate Increase by 25 basis points: UK (0.1) (3.6) North America (3.8) (4.4) Western Continental Europe (2.3) (2.0) Other 1 (0.5) (0.5) Decrease by 25 basis points: UK 0.2 3.8 North America 3.9 4.6 Western Continental Europe 2.4 2.1 Other 1 0.5 0.6 Rate of increase in salaries Increase by 25 basis points: Western Continental Europe 0.6 0.5 Other 1 0.4 0.5 Decrease by 25 basis points: Western Continental Europe (0.6) (0.5) Other 1 (0.5) (0.5) Rate of increase in pensions in payment Increase by 25 basis points: UK 0.2 0.7 Western Continental Europe 1.2 1.1 Decrease by 25 basis points: UK — (0.6) Western Continental Europe (1.2) (1.0) Life expectancy Increase in longevity by one UK 0.7 6.8 North America 3.3 4.2 Western Continental Europe 3.0 2.6 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. (c) Pension expense The following tables show the breakdown of the pension expense between amounts charged to operating profit and amounts charged to finance costs: 2023 2022 2021 £m £m £m Service cost 1 12.2 10.4 12.6 Administrative expenses 2.8 3.1 2.3 Charge to operating profit 15.0 13.5 14.9 Net interest expense on pension plans 4.3 2.2 1.8 Charge to profit before taxation for defined benefit plans 19.3 15.7 16.7 Note 1 Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments. The following table shows the breakdown of amounts recognised in other comprehensive income (OCI): 2023 2022 2021 £m £m £m Return on plan assets (excluding interest income) 6.5 (127.6) (29.3) Changes in demographic assumptions underlying the present value of the plan liabilities (0.5) 0.6 (3.6) Changes in financial assumptions underlying the present value of the plan liabilities (13.8) 143.5 31.1 Experience (loss)/gain arising on the plan liabilities (1.3) (0.1) 15.7 Change in irrecoverable surplus — 0.2 0.4 Actuarial (loss)/gain recognised in OCI (9.1) 16.6 14.3 (d) Movement in plan liabilities The following table shows an analysis of the movement in the pension plan liabilities for each accounting period: 2023 2022 2021 £m £m £m Plan liabilities at beginning of year 552.6 688.5 772.7 Service cost 1 12.2 10.4 12.6 Interest cost 20.5 15.5 12.0 Actuarial loss/(gain): Effect of changes in demographic assumptions 0.5 (0.6) 3.6 Effect of changes in financial assumptions 13.8 (143.5) (31.1) Effect of experience adjustments 1.3 0.1 (15.7) Benefits paid (37.5) (52.0) (59.5) (Gain)/loss due to exchange rate movements (16.7) 40.4 (6.1) Settlement payments 2 (163.2) (8.7) (0.3) Other 3 (2.3) 2.5 0.3 Plan liabilities at end of year 381.2 552.6 688.5 Notes 1 Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments. 2 During the year ended 31 December 2023, the Group completed the winding-up of two defined benefit pension plans: The Ogilvy & Mather Group Pension and Life Assurance Plan and the JWT Pension and Life Assurance Scheme, constituting settlements under IAS 19. The settlements led to the full elimination of associated plan assets and plan liabilities of £145.0 million, the fair value of plan assets equaled the underlying liabilities upon settlement such that there is no impact on 2023 net assets or the income statement. 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: 2023 2022 2021 £m £m £m Fair value of plan assets at beginning of year 430.5 552.1 616.6 Interest income on plan assets 16.2 13.3 10.2 Return on plan assets (excluding interest income) 6.5 (127.6) (29.3) Employer contributions 19.8 24.0 16.7 Benefits paid (37.5) (52.0) (59.5) (Loss)/gain due to exchange rate movements (12.4) 31.5 (0.6) Settlement payments 1 (163.2) (8.7) (0.3) Administrative expenses (2.8) (3.1) (1.8) Other 2 1.9 1.0 0.1 Fair value of plan assets at end of year 259.0 430.5 552.1 Actual return/(loss) on plan assets 22.7 (114.3) (19.1) Notes 1 During the year ended 31 December 2023, the Group completed the winding-up of two defined benefit pension plans: The Ogilvy & Mather Group Pension and Life Assurance Plan and the JWT Pension and Life Assurance Scheme, constituting settlements under IAS 19. The settlements led to the full elimination of associated plan assets and plan liabilities of £145.0 million, the fair value of plan assets equaled the underlying liabilities upon settlement such that there is no impact on 2023 net assets or the income statement. 2 |
Risk management policies
Risk management policies | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of risk management strategy related to hedge accounting [abstract] | |
Risk management policies | 24. 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 partially hedge the currency element of its net assets using foreign currency borrowings, cross-currency swaps, forward foreign exchange contracts and non-deliverable 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 (including cross currency swaps) at 31 December 2023 were primarily made up of $1,874 million, £1,094 million and €2,100 million (2022: $1,667 million, £1,094 million and €2,350 million). The Group’s average gross debt during the course of 2023 was $2,511 million, £1,173 million and €2,321 million (2022: $1,667 million, £1,094 million, €2,404 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, 100% of the year-end US dollar debt is at fixed rates averaging 4.62% for an average period of 66 months; 100% of the sterling debt is at a fixed rate of 2.97% for an average period of 130 months; and 100.0% of the euro debt is at fixed rates averaging 2.12% for an average period of 48 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 Company modelled a range of revenue less pass-through costs compared with the year ended 31 December 2023 and a number of mitigating cost actions that are available to the Company. Considering the Group’s liquidity headroom taking into account the suspension of share buybacks, dividends and acquisitions, and cost mitigation actions which could be implemented, show that the Company and the Group would be able to operate with appropriate liquidity and be able to meet its liabilities as they fall due. The Company modelled a range of revenue less pass-through cost declines up to 31% compared with the year ended 31 December 2023. The likelihood of such a decline is considered remote as compared to Company expectations and external benchmarks. The modelling in this extreme scenario includes cost mitigations of 70% of the decline in revenue less pass-through costs and the suspension of the share buyback programme and dividend. Further measures that were not included in the modelling, should the Company face such an extreme scenario, include the reduction of capital expenditure and acquisitions. Based on the outcome of the above assessments, the Directors have concluded that it is reasonable to expect that the Group will be able to operate within its current facilities for the period of assessment and are therefore comfortable that the Company will be a going concern for at least 12 months from the date of signing the Group's consolidated financial statements. As such, it is appropriate to prepare the financial statements of the Group on a going concern basis. At 31 December 2023, the Group has access to £6.4 billion of committed facilities with maturity dates spread over the years 2024 to 2046 as illustrated below: 2024 2025 2026 2027 2028 + £m £m £m £m £m £ bonds £400m (2.875% 2046) 400.0 400.0 US bond $220m (5.625% 2043) 172.7 172.7 US bond $93m (5.125% 2042) 72.9 72.9 £ bonds £250m (3.75% 2032) 250.0 250.0 Eurobonds €600m (1.625% 2030) 520.2 520.2 Eurobonds €750m (4.125% 2028) 650.2 650.2 Eurobonds €750m (2.375% 2027) 650.2 650.2 Eurobonds €750m (2.25% 2026) 650.2 650.2 Bank revolver ($2,500m 2026) 1,963.7 1,963.7 Eurobonds €500m (1.375% 2025) 433.5 433.5 US bond $750m (3.75% 2024) 589.1 589.1 Total committed facilities available 6,352.7 589.1 433.5 2,613.9 650.2 2,066.0 Drawn down facilities at 31 December 2023 4,389.0 589.1 433.5 650.2 650.2 2,066.0 Undrawn committed credit facilities 1,963.7 Given 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 average 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 26 and 27. Credit risk The Group’s principal financial assets are cash and short-term deposits, trade and other receivables and other investments, the carrying values of which represent the Group’s maximum exposure to credit risk in relation to financial assets, as shown in note 25. 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 expected credit losses, 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 6% of total trade receivables as at 31 December 2023 or 31 December 2022. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are high-rated (AAA) funds, banks with high credit ratings assigned by international credit-rating agencies or banks that have been financed by their government. Effects of Hedge Accounting on the Financial Position and Performance The effects of the hedging instruments on the Group's financial position and performance are as follows: 2023 2022 (i) Cash flow hedges of foreign currency risk 1 Carrying amount of derivative hedging instruments 2 £(16.5)m £(6.6)m Notional amount of hedged items €1,250.0m €1,000.0m Notional amount of hedging instruments €1,250.0m €1,000.0m Maturity date 2025-2028 2023-2025 Hedge ratio 1:1 1:1 Change in value of hedged item used to determine hedge effectiveness for outstanding hedging instruments £(32.4)m £38.5m Change in value of hedging instruments used to determine hedge effectiveness for outstanding hedging instruments £29.6m £(41.4)m Hedge ineffectiveness (revaluation and retranslation of financial instruments) £2.7m £2.9m Weighted average hedged rate for outstanding hedging instruments 4.4 % 3.2 % (ii) Net investment hedges of foreign currency risk Carrying amount of derivative hedging instruments 2 £48.2m £(46.9)m Carrying amount of non-derivative hedging instruments (bonds) £(835.0)m £(879.5)m Notional amount of hedging instruments $1,873.9m $1,666.8m Notional amount of hedged net assets $1,873.9m $1,666.8m Hedge ratio 1:1 1:1 Change in value of hedged item used to determine hedge effectiveness £108.2m £(141.5)m Change in value of hedging instrument used to determine hedge effectiveness £(110.1)m £141.5m Hedge ineffectiveness (revaluation and retranslation of financial instruments) £1.9m £0.0 Weighted average hedged rate for the year (USD/GBP) 1.2731 1.2083 Notes 1 Relates to cross currency swaps designated as cash flow hedges 2 This amount is presented in trade and other receivables, and trade and other payables. The use of derivatives may entail a derivative transaction qualifying for more than one hedge type designation under IFRS 9. Therefore, the carrying amounts are grossed up by hedge type, whereas they are presented at an instrument level in the balance sheet. 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 A 10% weakening of sterling against the Group’s major currencies would result in the following impacts on the income statement and equity, which would arise on the retranslation of foreign currency-denominated monetary items. A 10% strengthening of sterling would have an equal and opposite effect. Impact on income statement Impact on equity 2023 2022 2023 2022 £m £m £m £m US dollar (41.0) (179.6) (18.0) 34.6 Euro (185.8) 78.9 — (11.3) 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 2023 would increase profit before tax by approximately £18.6 million (2022: £19.9 million). A one percentage point 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. Note that in practice, the Group has a cyclical cash profile throughout the year. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial instruments | 25. 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 foreign currency-denominated debt as hedging instruments against the exposure to movements in the spot translation rates associated with the translation of its foreign operations. The Group also designates certain cross currency swaps as hedging instruments in cash flow hedges to manage its exposure to foreign exchange risk and interest rate risk on its borrowings. During the year, the Group entered into cross currency swap contracts due in May 2028 with receipts of €750.0 million and payments of $810.9 million. In November 2023, the Group's contracts for receipts of €500.0 million and payments of $604.2 million matured. Contracts due in March 2025 have receipts of €500.0 million and payments of £444.1 million. In March 2023, the Group designated £80.6 million of non-deliverable forward foreign exchange contracts as hedging instruments in cash flow hedges, to manage its exposure to foreign exchange risk on highly probable forecast foreign currency transactions (primarily INR and USD). The contracts have maturity dates between 2024 and 2028. Critical terms of hedging instruments and hedged items are transacted to match on a 1:1 ratio by notional values. Hedge ineffectiveness can nonetheless arise from inherent differences between derivatives and non-derivative instruments and other market factors including credit, correlations, supply and demand, and market volatilities. In addition, hedge ineffectiveness can arise as a result of the currency basis being included in the hedge designation. Hedge accounting is discontinued when a hedging relationship no longer qualifies for hedge accounting. At 31 December 2023, the fair value of the Group’s currency derivatives in designated hedging relationships is estimated to be a net asset of approximately £31.7 million (2022: net liability of £52.7 million). These amounts are based on market values of equivalent instruments at the balance sheet date, comprising £31.7 million (2022: £0.6 million) assets included in trade and other receivables and nil (2022: £53.3 million) liabilities included in trade and other payables. The fair value of currency derivatives is based on the present value of contractual cash flows using foreign currency and interest rate forward market curves at the balance sheet date. The amounts taken to and deferred in equity during the year for currency derivatives that are designated as hedges and considered effective was a credit of £108.2 million (2022: debit of £141.5 million) for net investment hedges. For cash flow hedge arrangements, amounts of a debit of £43.3 million (2022: credit of £38.5 million) representing the effective portion of the gain or loss on the hedging instrument were taken to equity, and £44.2 million was reclassified to profit or loss in the same period when the related foreign exchange impact on the associated hedged item affected profit or loss. During the year the hedges of the €750 million Eurobond were discontinued as the hedging item and hedging instrument matured which resulted in a debit of £11.8 million taken to equity and recycled to profit and loss. Changes in the fair value relating to the ineffective portion of the currency derivatives that are designated hedges amounted to £5.0 million (2022: £2.7 million) which is included within revaluation and retranslation of financial instruments in the income statement. At the balance sheet date, the total nominal amount of outstanding forward foreign exchange contracts not designated as hedges was £955.2 million (2022: £1,004.8 million). The Group estimates the fair value of these contracts to be a net liability of £0.8 million (2022: net asset of £0.4 million). As at 31 December 2023, the Group had designated its $93.0 million bond, $750.0 million bond, $220.0 million bond, and $810.9 million leg of its cross currency swap, as the hedging instruments in a net investment hedge relationship. The Group has designated the €500.0 million leg of its March 2025 cross currency swap and €750.0 million of its May 2028 cross currency swap as hedging instruments in cash flow hedges. £80.6 million of non-deliverable forward foreign exchange contracts has also been designated as the hedging instrument in a cash flow hedge. Possible sources of ineffectiveness include any impairments to the Group's net investment in US dollars. The hedges are documented and are assessed for effectiveness on an ongoing basis. All hedge relationships were effective during the year. These arrangements are designed to address significant foreign exchange exposure and are renewed on a revolving basis as required. An analysis of the Group’s financial assets and liabilities by accounting classification is set out below: Derivatives Held at Held at Amortised Carrying £m £m £m £m £m 2023 Other investments — 257.2 75.5 — 332.7 Cash and short-term deposits — 180.7 — 2,036.8 2,217.5 Bank overdrafts and bonds: amounts falling due within one year — — — (946.3) (946.3) Bonds: amounts falling due after more than one year — — — (3,775.0) (3,775.0) Trade and other receivables: amounts falling due within one year — — — 10,601.4 10,601.4 Trade and other receivables: amounts falling due after more than one year — — — 118.3 118.3 Trade and other payables: amounts falling due within one year — — — (10,917.4) (10,917.4) Trade and other payables: amounts falling due after more than one year — — — (1.5) (1.5) Derivative assets 31.7 2.2 — — 33.9 Derivative liabilities — (3.0) — — (3.0) Payments due to vendors (earnout agreements) — (198.7) — — (198.7) Liabilities in respect of put options — — — (103.6) (103.6) 31.7 238.4 75.5 (2,987.3) (2,641.7) Derivatives Held at Held at Amortised Carrying £m £m £m £m £m 2022 Other investments — 255.7 114.1 — 369.8 Cash and short-term deposits 1 — 219.9 — 2,271.6 2,491.5 Bank overdrafts and bonds: amounts falling due within one year — — — (1,169.0) (1,169.0) Bonds: amounts falling due after more than one year — — — (3,801.8) (3,801.8) Trade and other receivables: amounts falling due within one year — — — 11,338.0 11,338.0 Trade and other receivables: amounts falling due after more than one year — — — 146.2 146.2 Trade and other payables: amounts falling due within one year — — — (11,283.0) (11,283.0) Trade and other payables: amounts falling due after more than one year — — — (0.9) (0.9) Derivative assets 0.6 5.1 — — 5.7 Derivative liabilities (53.3) (4.7) — — (58.0) Payments due to vendors (earnout agreements) — (160.1) — — (160.1) Liabilities in respect of put options 2 — — — (342.1) (342.1) (52.7) 315.9 114.1 (2,841.0) (2,463.7) Notes 1 Certain money market funds included within cash and short-term deposits for the year ended 31 December 2022 have been re-presented given they are measured at held at fair value through profit or loss in accordance with IFRS 9. Prior year balances were presented as amortised cost. 2 Liabilities in respect of put option balances for the year ended 31 December 2022 have been re-presented given they are measured at amortised cost in accordance with IFRS 9. Prior year balances were presented as held at fair value through profit or loss. 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 Total £m £m £m £m 2023 Derivatives in designated hedge relationships Derivative assets — 31.7 — 31.7 Derivative liabilities — — — — Held at fair value through profit or loss Other investments 0.6 — 256.6 257.2 Derivative assets — 2.2 — 2.2 Derivative liabilities — (3.0) — (3.0) Payments due to vendors (earnout agreements) — — (198.7) (198.7) Held at fair value through other comprehensive income Other investments 7.4 — 68.1 75.5 Level 1 Level 2 Level 3 Total £m £m £m £m 2022 Derivatives in designated hedge relationships Derivative assets — 0.6 — 0.6 Derivative liabilities — (53.3) — (53.3) Held at fair value through profit or loss Other investments 0.4 — 255.3 255.7 Derivative assets — 5.1 — 5.1 Derivative liabilities — (4.7) — (4.7) Payments due to vendors (earnout agreements) — — (160.1) (160.1) Held at fair value through other comprehensive income Other investments 10.9 — 103.2 114.1 There have been no transfers between these levels in the years presented. Reconciliation of level 3 fair value measurements: Payments due to vendors (earnout agreements) Other £m £m 1 January 2022 (196.7) 290.0 Gains recognised in the income statement 26.2 23.1 Losses recognised in other comprehensive income — (5.3) Exchange adjustments (14.3) — Additions (46.7) 66.7 Disposals — (16.0) Cancellations — — Settlements 71.4 — 31 December 2022 (160.1) 358.5 Gains/(losses) recognised in the income statement 50.8 (26.7) Gains recognised in other comprehensive income — 0.7 Exchange adjustments 1.8 — Additions (149.7) 2.6 Disposals — (10.4) Settlements 58.5 — 31 December 2023 (198.7) 324.7 The fair values of financial assets and liabilities are based on quoted market prices where available. Where the market value is not available, the Group has estimated relevant fair values on the basis of available information from outside sources. There have been no movements between level 3 and other levels. Payments due to vendors (earnout agreements) 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 amortised cost 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. As of 31 December 2023, 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 ranges from £nil to £326 million (2022: £nil to £226 million) and £nil to £753 million (2022: £nil to £695 million), respectively. The increase in the maximum potential undiscounted amount of future payments for all earnout agreements is due to current year acquisitions, which is partially offset by earnout arrangements that have been completed and paid. At 31 December 2023, the weighted average growth rate in estimating future financial performance was 14.6% (2022: 12.4%). The weighted average of the risk-adjusted discount rate applied to these obligations at 31 December 2023 was 7.0% (2022: 7.6%). 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 £1.4 million (2022: £9.1 million) and £5.5 million (2022: £6.9 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 £2.5 million (2022: £7.3 million) and £2.5 million (2022: £7.4 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 is 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 information from outside sources using the most appropriate valuation technique, including all external funding rounds, revenue and EBITDA multiples, discounted cash flows and the share of fund net asset value. The sensitivity to changes in unobservable inputs is specific to each individual investment. A change to one or more of these unobservable inputs to reflect a reasonably possible alternative assumption would not result in a significant change to the fair value. |
Authorised and issued share cap
Authorised and issued share capital | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of classes of share capital [abstract] | |
Authorised and issued share capital | 26. Authorised and issued share capital Equity ordinary shares Nominal value £m Authorised At 1 January 2021 1,750,000,000 175.0 At 31 December 2021 1,750,000,000 175.0 At 31 December 2022 1,750,000,000 175.0 At 31 December 2023 1,750,000,000 175.0 Issued and fully paid At 1 January 2021 1,296,080,242 129.6 Exercise of share options 534,800 — Share cancellations (72,155,492) (7.2) At 31 December 2021 1,224,459,550 122.4 Exercise of share options 125,700 — Share cancellations (83,157,954) (8.3) At 31 December 2022 1,141,427,296 114.1 Exercise of share options 85,900 — Share cancellations — — At 31 December 2023 1,141,513,196 114.1 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 the Company 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 2023 was 490,646 (2022: 1,211,974, 2021: 5,803,641), and £3.7 million (2022: £9.9 million, 2021: £65.0 million) respectively. The number and market value of ordinary shares held in treasury at 31 December 2023 was 66,675,497 (2022: 70,489,953, 2021: 70,489,953) and £502.1 million (2022: £578.2 million, 2021: £789.1 million) respectively. |
Other reserves
Other reserves | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of reserves within equity [abstract] | |
Other reserves | 27. Other reserves Other reserves comprise the following: Capital Equity Hedging reserve £m Translation Total Balance at 1 January 2021 6.4 (122.3) — 307.1 191.2 Foreign exchange differences on translation of foreign operations — — — (132.7) (132.7) Gain on net investment hedges — — — 45.5 45.5 Cash flow hedges: Fair value loss arising on hedging instruments — — (38.0) — (38.0) Less: gain reclassified to profit or loss — — 38.0 — 38.0 Share of other comprehensive income of associate undertakings — — — 7.3 7.3 Share cancellations 7.2 — — — 7.2 Recognition and remeasurement of financial instruments — (242.7) — — (242.7) Share purchases – close period commitments — (211.7) — — (211.7) Balance at 31 December 2021 13.6 (576.7) — 227.2 (335.9) Foreign exchange differences on translation of foreign operations — — — 409.0 409.0 Loss on net investment hedges — — — (141.5) (141.5) Cash flow hedges: Fair value gain arising on hedging instruments — — 38.5 — 38.5 Less: loss reclassified to profit or loss — — (38.5) — (38.5) Share of other comprehensive income of associate undertakings — — — 31.9 31.9 Share cancellations 8.3 — — — 8.3 Recognition/derecognition of liabilities in respect of put options — 101.7 — — 101.7 Share purchases – close period commitments — 211.7 — — 211.7 Balance at 31 December 2022 21.9 (263.3) — 526.6 285.2 Foreign exchange differences on translation of foreign operations — — — (404.0) (404.0) Gain on net investment hedges — — — 108.2 108.2 Cash flow hedges: Fair value loss arising on hedging instruments — — (43.3) — (43.3) Less: gain reclassified to profit or loss — — 44.2 — 44.2 Share of other comprehensive loss of associate undertakings — — — (0.9) (0.9) Share cancellations — — — — — Recognition/derecognition of liabilities in respect of put options — 197.2 — — 197.2 Share purchases – close period commitments — — — — — Balance at 31 December 2023 21.9 (66.1) 0.9 229.9 186.6 The capital redemption reserve relates entirely to share cancellations. The equity reserve primarily relates to the recognition/derecognition of liabilities in respect of put option agreements entered into by the Group as part of a business combination that allows non-controlling shareholders to sell their shares to the Group in the future. During 2023, the Company sold a portion of its ownership of FGS to KKR. As part of this transaction the previous put option granted to management shareholders was derecognised. During 2021, the Company entered into an agreement with a third party to conduct share buybacks on its behalf in the close period commencing on 16 December 2021 and ending on 18 February 2022, in accordance with UK listing rules. The commitment resulting from this agreement constituted a liability at 31 December 2021 and was also recognised as a movement in the equity reserve in the year ended 31 December 2021. After the close period ended on 18 February 2022, the liability was settled and the amount in other reserves was reclassified to retained earnings. The hedging reserve comprises the effective portion of the cumulative net change in fair value of cash flow hedges less amounts reclassified to profit or loss. The translation reserve contains the accumulated gains/(losses) on currency translation of foreign operations arising on consolidation. The translation reserve comprises: 2023 £m 2022 £m 2021 £m Balance relating to continuing net investment hedges (53.1) (143.8) (2.3) Balance relating to discontinued net investment hedges (67.5) (85.0) (85.0) Balance relating to foreign exchange differences on translation of foreign operations 350.5 755.4 314.5 229.9 526.6 227.2 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about business combination [abstract] | |
Acquisitions | 28. 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. The Group acquired a number of subsidiaries in the year. Details of the purchase consideration, the assets and liabilities recognised as a result of the acquisition and the goodwill recognised has been outlined in the table below. Book Fair value Fair value Intangible assets 2.9 138.5 141.4 Right-of-use assets 2.4 — 2.4 Property, plant and equipment 0.8 — 0.8 Cash and cash equivalents 22.5 — 22.5 Trade receivables due within one year 12.6 — 12.6 Other current assets 4.9 — 4.9 Total assets 46.1 138.5 184.6 Short-term loans (48.9) — (48.9) Other current liabilities (37.1) — (37.1) Trade and other payables due after one year (0.6) (3.0) (3.6) Deferred tax liabilities 1.5 (35.0) (33.5) Long-term lease liabilities (1.9) — (1.9) Provisions (0.4) (0.2) (0.6) Total liabilities (87.4) (38.2) (125.6) Net assets (41.3) 100.3 59.0 Non-controlling interests (1.7) Goodwill 297.8 Consideration 355.1 Consideration satisfied by: Cash 227.4 Payments due to vendors 127.7 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 £61.9 million. Non-controlling interests in acquired companies are measured at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets. There were no newly acquired subsidiaries with non-controlling interests that are individually material to the Group. 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 2023 and the date the financial statements have been authorised for issue. Acquisitions in 2022 The Group acquired a number of subsidiaries in the prior year. Details of the purchase consideration, the assets and liabilities recognised as a result of the acquisition and the goodwill recognised has been outlined in the table below. Book Fair value Fair value Intangible assets 1.2 46.5 47.7 Property, plant and equipment 1.3 — 1.3 Cash and cash equivalents 38.8 — 38.8 Trade receivables due within one year 27.0 — 27.0 Other current assets 13.1 1.1 14.2 Total assets 81.4 47.6 129.0 Current liabilities (49.4) (5.3) (54.7) Trade and other payables due after one year (10.3) (27.3) (37.6) Deferred tax liabilities (0.1) (12.4) (12.5) Long-term lease liabilities (0.1) — (0.1) Provisions (0.1) (1.2) (1.3) Total liabilities (60.0) (46.2) (106.2) Net assets 21.4 1.4 22.8 Non-controlling interests (2.1) Fair value of equity stake in associate undertakings before acquisition of controlling interest (9.0) Goodwill 249.3 Consideration 261.0 Consideration satisfied by: Cash 218.3 Payments due to vendors 42.7 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 £42.7 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 in the year ended 2021. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of transactions between related parties [abstract] | |
Related party transactions | 29. Related party transactions The Group enters into transactions with its associate undertakings. The Group has continuing transactions with Kantar, including sales, purchases, the provision of IT services, subleases and property-related items. In the year ended 31 December 2023, revenue of £233.0 million (2022: £159.7 million 1 ) was reported in relation to Compas, an associate in the USA, and revenue of £20.9 million (2022: £42.7 million) was reported in relation to Kantar. All other transactions in the years presented were immaterial. The following amounts were outstanding at 31 December: 2023 2022 £m £m Amounts owed by related parties Kantar 17.5 26.1 Other 56.0 62.4 73.5 88.5 Amounts owed to related parties Kantar (4.7) (10.5) Other (70.4) (65.2) (75.1) (75.7) There are no material provisions for doubtful debts relating to these balances and no material expense has been recognised in the income statement in relation to bad or doubtful debts for 2023 or 2022. Notes 1 Revenue in relation to Compas for the period ended 31 December 2022 was restated from £88.3 million to £159.7 million. |
Reconciliation of profit before
Reconciliation of profit before taxation to headline operating profit | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of reconciliation of profit before interest and taxation to headline PBIT [abstract] | |
Reconciliation of profit before taxation to headline operating profit | 30. Reconciliation of profit before taxation to headline operating profit Reconciliation of profit before taxation to headline operating profit: 2023 2022 2021 £m £m £m Profit before taxation 346.3 1,159.8 950.8 Finance and investment income (127.3) (145.4) (69.4) Finance costs 389.0 359.4 283.6 Revaluation and retranslation of financial instruments (6.8) (76.0) 87.8 Profit before interest and taxation 601.2 1,297.8 1,252.8 (Earnings)/loss from associates - after interest and tax (70.2) 60.4 (23.8) Operating profit 531.0 1,358.2 1,229.0 Goodwill impairment 63.6 37.9 1.8 Amortisation and impairment of acquired intangible assets 727.9 62.1 97.8 Investment and other impairment charges/(reversals) 17.8 77.0 (42.4) Restructuring and transformation costs 195.5 218.8 175.4 Property related restructuring costs 232.5 18.0 — (Gains)/losses on disposal of investments and subsidiaries (7.1) 36.3 10.6 Gains on remeasurement of equity interests arising from a change in scope of ownership — (66.5) — Litigation settlement (11.0) — 21.3 Headline operating profit 1,750.2 1,741.8 1,493.5 Headline operating profit is one of the metrics that management uses to assess the performance of the business. Reconciling items in the above table are components of operating profit, which are included in Note 3: Costs of services and general and administrative costs. |
Events after the reporting peri
Events after the reporting period | 12 Months Ended |
Dec. 31, 2023 | |
Events After Reporting Period [Abstract] | |
Events after the reporting period | 31. Events after the reporting period On 20 February 2024, the Group refinanced its five-year Revolving Credit Facility of $2.5 billion maturing March 2026. The new $2.5 billion facility runs for five years with two one-year extension options maturing February 2029 (excluding options) and with no financial covenants. On 12 March 2024, the Group refinanced its $750 million of 3.75% bonds due September 2024 and €500 million of 1.375% bonds due March 2025 as planned, issuing two bonds, €600 million of 3.625% bonds due September 2029 and €650 million of 4.0% bonds due September 2033. |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of preparation | Basis of preparation The Group consolidated financial statements have been prepared on a going concern basis, under the historical cost convention, except for the revaluation of certain financial instruments. In performing its going concern assessment, management's forecasts and projections, taking account of (i) reasonably possible declines in revenue less pass-through costs and (ii) remotely possible declines in revenue less pass-through costs for stress-testing purposes compared to 2023, considering the Group’s liquidity headroom taking into account the suspension of share buybacks, dividends and acquisitions, and cost-mitigation actions which could be implemented, show that the Company and the Group would be able to operate with appropriate liquidity and be able to meet its liabilities as they fall due, considering that the Group was in a £2.3 billion net current liability position as at 31 December 2023. The Company modelled a range of revenue less pass-through cost declines up to 31% compared with the year ended 31 December 2023. The Directors therefore have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements. The principal accounting policies are set out below. The financial statements were approved by the Board of Directors and authorized for issue on 21 March 2024. |
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. Subsidiary undertakings are those entities controlled by the Group. Control exists where the Group is exposed to, or has the rights to variable returns from its involvement with, the investee and has the ability to use its power over the investee to affect its returns. 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. Non-controlling interests represent the share of earnings or equity in subsidiaries that is not attributable, directly or indirectly, to shareholders of the Group. |
New IFRS accounting pronouncements | New IFRS accounting pronouncements The Group has applied the following standards and amendments for the first time for their annual reporting period commencing on or after 1 January 2023: – IFRS 17 Insurance Contracts – Definition of Accounting Estimates - Amendments to IAS 8 – Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2 – Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12 – International Tax Reform - Pillar Two Model Rules - Amendments to IAS 12 The standards and amendments listed above did not have any impact on the amounts recognised in prior periods, did not have a significant impact on the amounts recognised in the current period, and are not expected to significantly affect the future periods. At the date of authorisation of these financial statements, there were a number of standards or amendments to standards, which have not been applied in these financial statements, that were in issue but not yet effective. The Group does not consider that any of these standards or amendments to standards in issue but not yet effective will have a significant impact on the financial statements. |
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 over the fair value of the underlying net assets where relevant, 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 recoverable amount, defined as the higher of fair value less costs of disposal and value in use. The net present value of future cash flows, to determine value in use, is 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 goodwill 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 Subsequent adjustments to the fair value are recorded in the consolidated income statement within revaluation and retranslation of financial instruments. The effect of any revisions to fair value adjustments that had been determined provisionally at the immediately preceding balance sheet date are accounted for as revisions to goodwill, as permitted by IFRS 3 Business Combinations. |
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 indicators exist. 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, where the recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. Property, plant and equipment impairment charges also form part of the property-related restructuring costs described in note 3; and are derived applying the method described in the Leases accounting policy. 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 – up to 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 and joint ventures 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 discontinues recognising its share of net assets or its share of net results from an associate if the value of the investment has reduced to nil. Any additional losses are provided for, and a liability is recognised, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. If the associate subsequently reports a positive equity, the Group resumes recognising its share of net assets, net result and other comprehensive income. 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 recoverable amount is defined as the higher of fair value less costs of disposal and value in use. 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 Certain equity investments are designated as either fair value through other comprehensive income or fair value through profit or loss. Movements in fair value through profit or loss are recorded in the consolidated income statement within revaluation and retranslation of financial instruments. The Group generally elects to classify equity investments as fair value through other comprehensive income where the Group forms a strategic partnership with the investee. |
Accrued and deferred income | Accrued and deferred income Accrued income is a receivable within the scope of IFRS 9 Financial Instruments, and is recognised when a performance obligation has been satisfied but has not yet been billed. Accrued income is transferred to trade receivables once the right to consideration is billed per the terms of the contractual agreement. In certain cases, payments are received from customers or amounts are billed with an unconditional right to receive consideration 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 unbilled costs Trade receivables are stated net of expected credit loss. Unbilled costs (previously named 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. |
Expected credit losses | Expected credit losses The Group has applied the simplified approach to measuring expected credit losses, as permitted by IFRS 9 Financial Instruments. This has been applied to trade receivables, contract assets and lease receivables. Under this approach, the Group utilises a provision matrix based on the age of the trade receivables and historical loss rates to determine the expected credit losses. The Group also considers forward-looking information. 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. For all other assets, the general approach has been applied and a loss allowance for 12-month expected credit losses is recognised. Under IFRS 9, the expected credit losses are measured as the difference between the asset’s gross carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. Given the short-term nature of the Group’s trade receivables, unbilled costs and accrued income, which are mainly due from large national or multinational companies, the Group’s assessment of expected credit losses includes provisions for specific clients and receivables where the contractual cash flow is deemed at risk. The Group considers that the credit risk increased significantly since initial recognition when the credit rating changes adversely, the debtor has significant financial difficulty or if there was a breach of contract. Financial assets are written off when there is evidence indicating that the debtor is in severe financial difficulty and the Group has no realistic prospect of recovery. Receivables written off are still subject to enforcement activity and pursued by the Group. Further details on expected credit losses are provided in note 17. |
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 inception of the hedge relationship, the Group documents the relationship between hedging instruments and hedged items, including whether changes in the cash flows of the hedging instruments are expected to offset changes in the fair values or cash flows of hedged items. Furthermore the Group documents its risk management objectives and its strategy for undertaking various hedge transactions. Note 25 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 items that are 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, 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 profit or loss for the period. Derivatives embedded in other financial liabilities 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 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, the financial liability is measured at amortised cost in accordance with IFRS 9 Financial Instruments. On initial recognition, the corresponding amount is recognised against the equity reserve, which is subsequently reversed on derecognition, either through exercise or non-exercise of the option agreement. Changes in the measurement of the financial liability due to the unwinding of the discount or changes in the amount that the Group could be required to pay are recognised in profit or loss within revaluation and retranslation 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 removed from the statement of financial position when the underlying legal obligation is extinguished. |
Debt | Debt Interest-bearing debt is recorded at the proceeds received, net of direct issue costs. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand and short-term highly liquid investments which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value, including bank deposits and money market funds. For Cash Flow Statement presentation purposes, the Group’s overdrafts are included in cash and cash equivalents where they are repayable on demand, are components of the Group’s centralised treasury strategy employed across the Group and form an integral part of the Group’s cash management, in accordance with IAS 7 Statement of Cash Flows. |
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. This includes media costs where the Group is buying digital media for its own account on a transparent opt-in basis and, as a result, the subsequent media pass-through costs are recorded as Group revenue. As the contracts are generally short-term in nature, the Group has applied the practical expedient permitted by IFRS 15 to expense costs to obtain a contract as incurred, where applicable. 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 stand-alone 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 is broad and generally 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 unbilled costs 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 when supplying in-house production services, events 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. Global Integrated Agencies Revenue is typically derived from integrated product offerings including media placements and creative 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 once the related uncertainty is resolved. The Group recognises incentive revenue as the related performance obligation or obligations are satisfied depending on the specific contractual terms. Public Relations and Specialist Agencies 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 able to be estimated, 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 recognised within 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 other 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 Group 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 using either the most likely or expected value, depending on which method best estimates the uncertainty. These include provisions for other property-related liabilities such as onerous contracts and dilapidations. The timing of utilisation or release of such provisions are typically dependent on the term of the underlying lease. The eventual settling of such property-related provisions will be dependent on negotiations with the relevant landlord. Also included are other provisions, primarily long-term employee benefits such as deferred compensation plans, and legal claims, where the likelihood of settlement is considered probable. The timing of release and utilisation of the deferred compensation plans are dependent on applicable plan rules while the timing of settlement of legal claims are dependent on the status of any relevant legal proceedings. While we have factored in all known facts and circumstances, it is likely certain legal settlements will vary from the provisioned amount. Contingent liabilities |
Leases | Leases The Group leases most of its offices in cities where it operates. Other lease contracts include office equipment and motor vehicles. At inception of a contract, the Group assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred, less any lease incentives received. The assets are depreciated over the term of the lease using the straight-line method. The lease term includes periods covered by an option to extend if the Group is reasonably certain to exercise that option. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate for the same term as the underlying lease. Lease payments included in the measurement of lease liabilities comprise fixed payments less any lease incentives receivable and variable lease payments that depend on an index or a rate as at the commencement date. Lease modifications result in remeasurement of the lease liability. Depreciation is recognised in both costs of services and general and administrative costs and interest expense is recognised under finance costs in the consolidated income statement. The Group has elected to use the exemption not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets (under $5,000). The payments associated with these leases are recognised as cost of services and general and administrative costs within the consolidated income statement on a straight-line basis over the lease term. The Group assesses at the reporting date whether there are any indicators of impairment and performs an impairment test when an impairment indicator exists. The Group tests a right-of use asset as a stand-alone asset for impairment when it either meets the definition of investment property which generates independent cash flows or it is vacant with minimal to no continued utility for the Group. When a right-of-use asset is tested as a stand-alone asset, an impairment loss is recognised when the carrying amount of the right-of-use asset exceeds its recoverable amount. The recoverable amount of a right-of-use asset is estimated mainly based on the present value of the estimated sublease income, discounted using the property yield rates. The property held by the Group as right-of-use assets to earn rentals is classified as investment property. The Group measures its investment property applying the cost model. |
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 foreign subsidiary undertakings, with functional currencies other than pounds sterling, 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 and Turkey | Hyperinflation in Argentina and Turkey During 2023, 2022 and 2021, Argentina was designated as a hyperinflationary economy. During 2023 and 2022, Turkey was designated as a hyperinflationary economy. The financial statements of the Group’s subsidiaries in Argentina and Turkey 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. 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 note 22. 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. |
Government support | Government support In reaction to the Covid-19 pandemic, certain governments introduced measures to assist companies. A reduction to operating costs is recorded in relation to government subsidies/schemes where these amounts will never have to be repaid. In other cases, this involves the deferral of certain tax payments in order to stimulate the economy. The deferral of payments does not impact the income statement and these are charged as normal in the period they are incurred. |
Non-controlling interests | Non-controlling interests Non-controlling interests in acquired companies are measured at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets. The acquisition of a non-controlling interest in a subsidiary, and the sale of an interest while retaining control, is accounted for within equity, and the cash cost of such purchases is included within 'Financing activities' in the cash flow statement. |
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 area of estimation uncertainty is: • Goodwill: the discounted cash flow methodology applied by the Group when testing for goodwill impairment requires key estimates regarding operating margins and discount rates. Further details of the methodology and key estimates used in relation to the goodwill impairment assessment, and the approach to sensitivities to these estimates, are set out in note 13. |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
General Information and Statement of IFRS Compliance [Abstract] | |
Contributions by Reportable Segments | Reported contributions were as follows: Revenue 2 Revenue less pass-through costs 3 Headline operating profit 4 £m £m £m 2023 Global Integrated Agencies 12,594.9 9,808.2 1,474.3 Public Relations 1,262.2 1,180.0 191.1 Specialist Agencies 987.7 871.5 84.8 14,844.8 1,750.2 2022 1 Global Integrated Agencies 12,191.9 9,743.6 1,433.4 Public Relations 1,232.4 1,161.2 191.9 Specialist Agencies 1,004.4 894.5 116.5 14,428.7 1,741.8 2021 1 Global Integrated Agencies 10,887.6 8,680.4 1,221.2 Public Relations 963.5 914.2 144.6 Specialist Agencies 950.0 802.6 127.7 12,801.1 1,493.5 Notes 1 Prior year figures have been re-presented to reflect the reallocation of a number of businesses between Global Integrated Agencies, Specialist Agencies and Public Relations. 2 Intersegment sales have not been separately disclosed as they are not material. 3 Revenue less pass-through costs is revenue less media 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 costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. 4 A reconciliation from reported profit before tax to headline operating profit is provided in note 30. Share-based Capital additions 2 Depreciation and amortisation 3 Goodwill Earnings/(loss) from associates Interests in £m £m £m £m £m £m 2023 Global Integrated Agencies 118.9 180.4 362.8 40.3 56.4 93.1 Public Relations 14.3 15.4 40.0 — 0.2 — Specialist Agencies 6.9 21.4 43.9 23.3 13.6 193.4 140.1 217.2 446.7 63.6 70.2 286.5 2022 1 Global Integrated Agencies 100.7 193.8 373.0 — 10.8 80.1 Public Relations 14.4 11.1 36.7 3.7 0.5 0.1 Specialist Agencies 6.9 18.4 41.3 34.2 (71.7) 224.9 122.0 223.3 451.0 37.9 (60.4) 305.1 2021 1 Global Integrated Agencies 92.5 253.1 374.7 — 22.7 115.2 Public Relations 4.8 18.0 28.2 — 1.7 8.0 Specialist Agencies 2.3 22.0 41.1 1.8 (0.6) 289.7 99.6 293.1 444.0 1.8 23.8 412.9 Notes 1 Prior year figures have been re-presented to reflect the reallocation of a number of businesses between Global Integrated Agencies, Specialist Agencies and Public Relations. 2 Capital additions include purchases of property, plant and equipment and other intangible assets (including capitalised computer software). 3 |
Contributions by Geographical Area | Contributions by geographical area were as follows: 2023 2022 2021 £m £m £m Revenue 1 North America 2 5,527.6 5,549.5 4,494.2 United Kingdom 2,155.4 2,003.8 1,866.9 Western Continental Europe 3,037.2 2,876.2 2,786.3 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 4,124.6 3,999.2 3,653.7 14,844.8 14,428.7 12,801.1 Revenue less pass-through costs 3 North America 2 4,556.3 4,688.1 3,849.2 United Kingdom 1,626.3 1,537.2 1,414.3 Western Continental Europe 2,410.5 2,318.5 2,225.4 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 3,266.6 3,255.5 2,908.3 Headline operating profit 4 North America 2 834.3 770.4 655.7 United Kingdom 214.5 187.1 180.9 Western Continental Europe 258.4 301.3 288.6 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 443.0 483.0 368.3 1,750.2 1,741.8 1,493.5 Notes 1 Intersegment sales have not been separately disclosed as they are not material. 2 North America includes the United States with revenue of £5,187.1 million (2022: £5,230.9 million, 2021: £4,220.8 million), revenue less pass-through costs of £4,270.6 million (2022: £4,402.0 million, 2021: £3,597.4 million) and headline operating profit of £785.4 million (2022: £727.6 million, 2021: £615.2 million). 3 Revenue less pass-through costs is revenue less media 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 costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. 4 A reconciliation from reported profit before tax to headline operating profit is provided in note 30. 2023 2022 £m £m Non-current assets 1 North America 2 5,217.6 5,896.4 United Kingdom 1,669.7 1,556.2 Western Continental Europe 2,695.5 2,797.9 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 2,739.3 3,151.0 12,322.1 13,401.5 Notes 1 Non-current assets excluding financial instruments and deferred tax. 2 |
Costs of services and general_2
Costs of services and general and administrative costs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
Costs of Services and General Administrative Costs | 2023 2022 2021 £m £m £m Costs of services 12,325.8 11,890.1 10,597.5 General and administrative costs 1,988.0 1,180.4 974.6 14,313.8 13,070.5 11,572.1 Costs of services and general and administrative costs include: 2023 2022 2021 £m £m £m Staff costs (note 5) 8,137.6 8,165.8 7,166.7 Establishment costs 515.8 536.0 529.0 Media pass-through costs 2,173.6 1,905.7 1,865.3 Other costs of services and general and administrative costs 1 3,486.8 2,463.0 2,011.1 14,313.8 13,070.5 11,572.1 Note 1 Other costs of services and general and administrative costs include £811.5 million (2022: £723.7 million, 2021: £538.6 million) of other pass-through costs. Included within costs of services and general administrative costs are the following: 2023 2022 2021 £m £m £m Goodwill impairment (note 13) 63.6 37.9 1.8 Amortisation and impairment of acquired intangible assets 727.9 62.1 97.8 Investment and other impairment charges/(reversals) 17.8 77.0 (42.4) Restructuring and transformation costs 195.5 218.8 175.4 Property-related restructuring costs 232.5 18.0 — (Gains)/losses on disposal of investments and subsidiaries (7.1) 36.3 10.6 Gains on remeasurement of equity interests arising from a change in scope of ownership — (66.5) — Litigation settlement (11.0) — 21.3 Amortisation of other intangible assets 24.8 21.9 19.9 Depreciation of property, plant and equipment 165.1 166.9 151.2 Depreciation of right-of-use assets 256.8 262.2 272.9 Losses/(gains) on sale of property, plant and equipment 0.4 (6.4) (1.3) Net foreign exchange (gains)/losses (14.5) (8.7) 4.4 Short-term lease expense 22.2 20.2 18.0 Low-value lease expense 2.8 1.9 2.3 |
Auditors' Remuneration | Auditors’ remuneration: 2023 2022 2021 £m £m £m Fees payable to the Company’s auditors for the audit of the Company and Group’s annual accounts 10.0 8.4 7.1 Fees payable for the audit of the Company’s subsidiaries 29.9 28.5 24.8 Fees payable to the auditors pursuant to legislation 1 39.9 36.9 31.9 Audit-related services 2 0.5 0.4 0.4 Other services 3 1.7 0.6 1.4 Tax compliance services — 0.1 — Total other fees 2.2 1.1 1.8 Total fees 42.1 38.0 33.7 Notes 1 Includes fees in respect of the audit of internal control over financial reporting. 2 Audit-related assurance services are in respect of the review of the interim financial information. 3 Other services include audits for earnout purposes, non-statutory audits and other agreed upon procedures. |
Our people (Tables)
Our people (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Number and average number of employees [abstract] | |
Geographical Distribution of Staff | Our staff numbers averaged 114,732 for the year ended 31 December 2023 against 114,129 in 2022 and 104,808 in 2021. Their geographical distribution was as follows: 2023 2022 2021 North America 23,562 23,740 21,764 United Kingdom 12,457 12,490 10,995 Western Continental Europe 23,580 22,717 21,514 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 55,133 55,182 50,535 114,732 114,129 104,808 |
Reportable Segment Distribution of Staff | Their reportable segment distribution was as follows: 2023 2022 2021 Global Integrated Agencies 97,838 97,288 89,701 Public Relations 8,377 8,125 7,121 Specialist Agencies 8,517 8,716 7,986 114,732 114,129 104,808 |
Staff costs | Staff costs include: 2023 2022 2021 £m £m £m Wages and salaries 5,878.8 5,721.0 4,797.2 Cash-based incentive plans 232.9 292.6 455.2 Share-based incentive plans (note 22) 140.1 122.0 99.6 Social security costs 715.1 689.4 630.1 Pension costs (note 23) 213.1 204.8 177.7 Severance 78.2 44.2 41.8 Other staff costs 1 879.4 1,091.8 965.1 8,137.6 8,165.8 7,166.7 Note 1 Freelance and temporary staff costs are included in other staff costs. |
Summary of Compensation for key Management Personnel | Compensation for key management personnel includes: 2023 2022 2021 £m £m £m Short-term employee benefits 28.1 29.7 28.0 Pensions and other post-retirement benefits 1.3 1.1 0.9 Share-based payments 30.1 29.8 14.6 59.5 60.6 43.5 |
Finance and investment income_2
Finance and investment income, finance costs and revaluation and retranslation of financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
Summary of Finance and Investment Income, Finance Costs and Revaluation and retranslation of Financial Instruments | Finance and investment income includes: 2023 2022 2021 £m £m £m Income from equity investments 12.9 24.5 17.9 Interest income 114.4 120.9 51.5 127.3 145.4 69.4 Finance costs include: 2023 2022 2021 £m £m £m Net interest expense on pension plans 4.3 2.2 1.8 Interest on other long-term employee benefits 6.0 3.7 2.4 Interest expense and similar charges 1 272.4 257.8 188.5 Interest expense related to lease liabilities 106.3 95.7 90.9 389.0 359.4 283.6 Note 1 Interest expense and similar charges are payable on bank overdrafts, bonds and bank loans held at amortised cost. Revaluation and retranslation of financial instruments include: 2023 2022 2021 £m £m £m Movements in fair value of treasury instruments (3.1) 0.5 9.1 Premium on the early repayment of bonds — — (13.0) Revaluation of investments and other assets held at fair value through profit or loss (20.9) 23.1 (7.5) Remeasurement of put options over non-controlling interests (1.5) 27.9 (40.6) Revaluation of payments due to vendors (earnout agreements) 50.8 26.2 (58.7) Retranslation of financial instruments (18.5) (1.7) 22.9 6.8 76.0 (87.8) |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Major components of tax expense (income) [abstract] | |
Tax Charge | The tax charge comprises: 2023 2022 2021 £m £m £m Corporation tax Current year 432.8 425.8 404.0 Prior years (85.6) (55.5) (41.4) 347.2 370.3 362.6 Deferred tax Current year (197.1) 9.4 (131.0) Prior years (1.0) 4.7 (1.5) (198.1) 14.1 (132.5) Tax charge 149.1 384.4 230.1 |
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: 2023 2022 2021 £m £m £m Profit before taxation 346.3 1,159.8 950.8 Tax at the corporation tax rate of 23.5% 1 81.4 220.4 180.7 Tax effect of (earnings)/losses from associates (15.0) 17.4 (13.3) Irrecoverable withholding taxes 34.8 25.9 52.3 Tax effect of items that are not deductible in determining taxable profits 39.0 66.7 29.3 Tax effect of non-deductible goodwill impairment 16.2 7.2 0.6 Effect of different tax rates in subsidiaries operating in other jurisdictions 41.8 94.3 81.2 Origination and reversal of unrecognised temporary differences 8.8 (1.1) (36.3) Tax losses not recognised or utilised in the year 44.0 9.8 7.4 Utilisation of tax losses not previously recognised (15.3) (5.4) (5.1) Net release of prior year provisions in relation to acquired businesses (3.9) (2.8) (1.1) Other prior year adjustments (82.7) (48.0) (41.8) Impact of deferred tax rate change — — (23.8) Tax charge 149.1 384.4 230.1 Effective tax rate on profit before tax 43.1 % 33.1 % 24.2 % Note 1 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 23.5% (2022: 19.0%, 2021: 19.0%). |
Ordinary dividends (Tables)
Ordinary dividends (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of Dividends [abstract] | |
Summary of Ordinary Dividends | Amounts recognised as distributions to equity holders in the year: 2023 2022 2021 2023 2022 2021 Per share Pence per share £m £m £m Final dividend in respect of the prior year (2022) 24.40 p 18.70 p 14.00 p 261.8 203.5 167.7 Interim dividend in respect of the current year (2023) 15.00 p 15.00 p 12.50 p 161.0 161.9 147.0 39.40 p 33.70 p 26.50 p 422.8 365.4 314.7 |
Summary of Proposed Final Dividend | Proposed final dividend for the year ended 31 December 2023: 2023 2022 2021 Per share Pence per share Final dividend 24.40 p 24.40 p 18.70 p |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share [abstract] | |
Calculation of Basic and Diluted EPS | Basic EPS The calculation of basic EPS is as follows: 2023 2022 2021 Earnings 1 (£m) 110.4 682.7 637.7 Weighted average shares used in basic EPS calculation (m) 1,072.1 1,097.9 1,194.1 EPS 10.3p 62.2p 53.4p 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: 2023 2022 2021 Earnings 1 (£m) 110.4 682.7 637.7 Weighted average shares used in diluted EPS calculation (m) 1,094.0 1,116.4 1,215.3 Diluted EPS 10.1 p 61.2 p 52.5 p 1 Earnings is equivalent to profit for the year attributable to equity holders of the parent. |
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: 2023 2022 2021 m m m Weighted average shares used in basic EPS calculation 1,072.1 1,097.9 1,194.1 Dilutive share options outstanding 0.6 0.7 1.3 Other potentially issuable shares 21.3 17.8 19.9 Weighted average shares used in diluted EPS calculation 1,094.0 1,116.4 1,215.3 |
Sources of finance (Tables)
Sources of finance (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about financial instruments [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 2023 2022 2021 2023 2022 2021 Analysis of changes in financing £m £m £m £m £m £m Beginning of year 690.0 697.1 699.9 4,465.1 4,441.7 5,032.7 Ordinary shares issued 0.7 1.2 4.4 — — — Share cancellations — (8.3) (7.2) — — — Net decrease in drawings on bank loans and bonds — — — (48.9) (220.6) (397.1) Amortisation of financing costs included in debt — — — 0.2 7.0 8.1 Acquisition of subsidiaries — — — 48.9 — — Changes in fair value due to hedging arrangements — — — — — (2.5) Other movements — — — (3.5) (0.2) (0.4) Exchange adjustments — — — (98.7) 237.2 (199.1) End of year 690.7 690.0 697.1 4,363.1 4,465.1 4,441.7 |
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: 2023 2022 2021 £m £m £m Within one year (711.3) (791.6) (326.8) Between one and two years (534.6) (724.3) (745.4) Between two and three years (746.2) (524.2) (646.5) Between three and four years (726.2) (740.3) (492.8) Between four and five years (704.1) (719.9) (698.0) Over five years (1,858.8) (1,963.7) (2,546.3) Debt financing (including interest) under the Revolving Credit Facility and in relation to unsecured loan notes (5,281.2) (5,464.0) (5,455.8) Short-term overdrafts – within one year (358.2) (505.7) (342.3) Future anticipated cash flows (5,639.4) (5,969.7) (5,798.1) Effect of discounting/financing rates 918.1 998.9 1,014.1 Debt financing (4,721.3) (4,970.8) (4,784.0) The following table is an analysis of future undiscounted anticipated cash flows in relation to the Group’s financial derivatives, which include interest rate swaps, forward contracts and other foreign exchange swaps assuming interest rates and foreign exchange rates as at 31 December: Financial liabilities Financial assets 2023 Payable Receivable Payable Receivable £m £m £m £m Within one year 682.2 681.3 335.3 310.7 Between one and two years 15.9 15.7 487.4 479.6 Between two and three years 15.0 14.6 37.5 32.3 Between three and four years 14.7 14.2 37.1 32.5 Between four and five years 3.7 3.5 646.6 714.8 731.5 729.3 1,543.9 1,569.9 Financial liabilities Financial assets 2022 Payable Receivable Payable Receivable £m £m £m £m Within one year 1,186.3 1,126.2 347.1 345.7 Between one and two years — — 11.6 6.2 Between two and three years — — 449.8 461.8 1,186.3 1,126.2 808.5 813.7 Financial liabilities Financial assets 2021 Payable Receivable Payable Receivable £m £m £m £m Within one year 185.8 173.7 581.1 582.5 Between one and two years 551.4 521.1 30.0 30.4 Between two and three years 11.6 6.0 — — Between three and four years 449.8 445.6 — — 1,198.6 1,146.4 611.1 612.9 |
Analysis of Fixed and Floating Rate Debt by Currency | Analysis of fixed and floating rate debt by currency including the effect of cross-currency swaps: 2023 £m Fixed rate 1 Floating Period (months) 1 Currency $ – fixed 1,471.7 4.62 n/a 66 £ – fixed 1,094.1 2.97 n/a 130 € – fixed 1,820.5 2.12 n/a 48 – floating — n/a EURIBOR 0 Other (23.2) n/a n/a n/a 4,363.1 2022 £m Fixed rate 1 Floating Period (months) 1 Currency $ – fixed 1,379.5 4.18 n/a 60 £ – fixed 1,094.1 2.97 n/a 143 € – fixed 2,080.6 2.21 n/a 55 – floating — n/a EURIBOR 0 Other (89.1) n/a n/a n/a 4,465.1 2021 £m Fixed rate 1 Floating Period (months) 1 Currency $ – fixed 1,231.8 4.18 n/a 72 £ – fixed 1,094.1 2.97 n/a 155 € – fixed 1,976.0 2.04 n/a 69 – floating 210.2 n/a EURIBOR 3 Other (70.4) n/a n/a n/a 4,441.7 Note 1 |
Disclosure of Analysis of Financing Activities | Analysis of change in financing activities (inclusive of leases) The table below details changes arising from financing activities, including both cash and non-cash changes. 2023 Opening balance Cash flow Acquisition of subsidiaries Foreign exchange Interest and other Closing balance £m £m £m £m £m £m Borrowings (excluding lease liabilities) (notes 11, 20 and 25) 1 4,465.1 (48.9) 48.9 (98.7) (3.3) 4,363.1 Derivatives (notes 11, 17, 18 and 19) 52.3 (46.0) — (50.8) 13.6 (30.9) Lease liabilities (note 12) 2 2,210.6 (361.6) 1.9 (75.6) 379.2 2,154.5 Liabilities from financing activities 6,728.0 (456.5) 50.8 (225.1) 389.5 6,486.7 Cash and short-term deposits (notes 11 and 25) (2,491.5) 216.9 (22.5) 79.6 — (2,217.5) Bank overdrafts 505.7 (147.5) — — — 358.2 4,742.2 (387.1) 28.3 (145.5) 389.5 4,627.4 2022 Opening balance Cash flow Acquisition of subsidiaries Foreign exchange Interest and other Closing balance £m £m £m £m £m £m Borrowings (excluding lease liabilities) (note 11, 20 and 25) 1 4,441.7 (220.6) — 237.2 6.8 4,465.1 Derivatives (notes 11, 17, 18 and 19) 50.6 — — 6.4 (4.7) 52.3 Lease liabilities (note 12) 2 2,041.8 (402.0) 0.1 145.8 424.9 2,210.6 Share repurchase commitments 211.7 (211.7) — — — — Liabilities from financing activities 6,745.8 (834.3) 0.1 389.4 427.0 6,728.0 Cash and short-term deposits (notes 11 and 25) (3,882.9) 1,494.4 (38.8) (64.2) — (2,491.5) Bank overdrafts 342.3 163.4 — — — 505.7 3,205.2 823.5 (38.7) 325.2 427.0 4,742.2 Notes 1 Borrowings includes: bonds and bank loans. The interest and other amounts within borrowings comprises amortisation of capitalised borrowing costs. 2 Repayment of lease liabilities includes £102.9 million (2022: £92.4 million) of interest paid on lease liabilities recognised within net cash inflow from operating activities (note 11). Interest and other within lease liabilities comprises interest on leases as well as the lease liability additions and disposals as disclosed in note 12. |
Analysis of cash flows (Tables)
Analysis of cash flows (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash flows from (used in) operating activities [abstract] | |
Summary of Analysis of Cash Flows | The following tables analyse the items included within the main cash flow headings on page F-14. Net cash from operating activities: 2023 2022 2021 £m £m £m Profit for the year 197.2 775.4 720.7 Taxation 149.1 384.4 230.1 Revaluation and retranslation of financial instruments (6.8) (76.0) 87.8 Finance costs 389.0 359.4 283.6 Finance and investment income (127.3) (145.4) (69.4) (Earnings)/loss from associates - after interest and tax (70.2) 60.4 (23.8) Adjustments for: Non-cash share-based incentive plans (including share options) 140.1 122.0 99.6 Depreciation of property, plant and equipment 165.1 166.9 151.2 Depreciation of right-of-use assets 256.8 262.2 272.9 Impairment charges included within restructuring costs 1 184.6 43.3 39.2 Goodwill impairment 63.6 37.9 1.8 Amortisation and impairment of acquired intangible assets 727.9 62.1 97.8 Amortisation of other intangible assets 24.8 21.9 19.9 Investment and other impairment charges/(reversals) 17.8 77.0 (42.4) (Gains)/losses on disposal of investments and subsidiaries (7.1) 36.3 10.6 Gains on remeasurement of equity interests arising from a change in scope of ownership — (66.5) — Losses/(gains) of sale of property, plant and equipment 0.4 (6.4) (1.3) Decrease/(increase) in trade receivables and accrued income 231.8 (498.6) (458.9) (Decrease)/increase in trade payables and deferred income (238.0) 170.6 777.8 Decrease/(increase) in other receivables 125.0 (154.1) (120.0) (Decrease)/increase in other payables - short-term (563.5) (259.6) 547.0 Increase/(decrease) in other payables - long-term 118.8 (67.0) (11.0) Increase/(decrease) in provisions 65.7 (38.0) (32.9) Corporation and overseas tax paid (395.3) (390.9) (391.1) Payment on early settlement of bonds — — (13.0) Interest paid on lease liabilities (102.9) (92.4) (88.4) Other interest and similar charges paid (274.5) (210.2) (173.7) Interest received 115.8 88.9 47.5 Investment income 12.9 24.5 17.8 Dividends from associates 43.4 37.6 53.4 Earnout payments recognised in operating activities 2 (6.0) (24.8) (3.8) Net cash inflow from operating activities 1,238.2 700.9 2,029.0 Notes 1 Impairment charges included within restructuring costs includes impairments for right-of-use assets, property, plant and equipment and other intangible assets. 2 Earnout payments in excess of the amount determined at acquisition are recorded as operating activities. Acquisitions and disposals: 2023 2022 2021 £m £m £m Initial cash consideration (227.0) (218.3) (227.6) Cash and cash equivalents acquired 22.5 38.8 (2.3) Earnout payments recognised in investing activities 1 (52.5) (46.6) (53.2) Purchase of other investments (including associates) (9.8) (10.1) (99.2) Acquisitions (266.8) (236.2) (382.3) Proceeds on disposal of investments and subsidiaries 2 99.5 50.1 51.9 Cash and cash equivalents disposed (0.7) (12.4) (23.6) Disposals of investments and subsidiaries 98.8 37.7 28.3 Cash consideration received from non-controlling interests 46.1 — 39.5 Cash consideration for purchase of non-controlling interests (16.4) (84.2) (135.0) Cash consideration for non-controlling interests 29.7 (84.2) (95.5) Net acquisition payments and disposal proceeds (138.3) (282.7) (449.5) Notes 1 Earnout payments in excess of the amount determined at acquisition are recorded as operating activities. 2 Proceeds on disposal of investments and subsidiaries includes return of capital from investments in associates. Share repurchases and buybacks: 2023 2022 2021 £m £m £m Purchase of own shares by ESOP Trusts (53.9) (55.3) (89.2) Shares purchased into treasury for cancellation — (807.4) (729.3) Net cash outflow (53.9) (862.7) (818.5) Proceeds from issue of bonds: 2023 2022 2021 £m £m £m Proceeds from issue of €750 million bonds 652.6 — — Drawdown from revolving credit facility 400.0 — — Net cash inflow 1,052.6 — — Repayment of borrowings: 2023 2022 2021 £m £m £m Decrease in drawings on bank loans — (11.3) (36.3) Repayment of borrowing-related derivatives (46.0) — — Repayment of revolving credit facility (400.0) — — Net repayment of debt assumed on acquisition (48.9) — — Repayment of €750 million bonds (652.6) — — Repayment of $500 million bonds — — (360.8) Repayment of €250 million bonds — (209.3) — Net cash outflow (1,147.5) (220.6) (397.1) Cash and cash equivalents: 2023 2022 2021 £m £m £m Cash at bank and in hand 2,036.8 2,271.6 2,776.6 Short-term bank deposits 180.7 219.9 1,106.3 Overdrafts 1 (358.2) (505.7) (342.3) 1,859.3 1,985.8 3,540.6 Note 1 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases Disclosure [Abstract] | |
Movement in right-of-use assets and lease liabilities | The movements in 2023 and 2022 were as follows: Right-of-use assets Land and buildings 1 £m Plant and Total 1 January 2022 1,357.0 38.1 1,395.1 Additions 363.8 23.8 387.6 Transfers to net investment in subleases (7.0) — (7.0) Disposals (42.2) (0.8) (43.0) Depreciation of right-of-use assets (245.3) (16.9) (262.2) Impairment charges included within restructuring costs (33.3) (0.2) (33.5) Exchange adjustments 89.2 2.3 91.5 31 December 2022 1,482.2 46.3 1,528.5 Additions 255.0 49.6 304.6 Transfers to net investment in subleases (4.6) — (4.6) Disposals (9.2) (1.1) (10.3) Depreciation of right-of-use assets (235.9) (20.9) (256.8) Impairment charges included within restructuring costs (128.8) — (128.8) Exchange adjustments (49.1) (1.3) (50.4) 31 December 2023 1,309.6 72.6 1,382.2 Note 1 For the year ended 31 December 2023, the Company has £20.8 million (2022: £18.5 million) of right-of-use assets that are classified as investment property. Lease liabilities Land and Plant and Total 1 January 2022 2,002.5 39.3 2,041.8 Additions 353.6 23.7 377.3 Interest expense related to lease liabilities 94.2 1.5 95.7 Disposals (46.1) (1.9) (48.0) Repayment of lease liabilities (including interest) (385.6) (16.4) (402.0) Exchange adjustments 143.6 2.2 145.8 31 December 2022 2,162.2 48.4 2,210.6 Additions 237.7 50.2 287.9 Interest expense related to lease liabilities 103.4 2.9 106.3 Disposals (11.4) (1.7) (13.1) Repayment of lease liabilities (including interest) (340.0) (21.6) (361.6) Exchange adjustments (74.1) (1.5) (75.6) 31 December 2023 2,077.8 76.7 2,154.5 |
Summary of Lease Expense charged to operating profit and amounts charged to finance costs | The following table shows the breakdown of the lease expense between amounts charged to operating profit and amounts charged to finance costs: 2023 2022 2021 £m £m £m Depreciation of right-of-use assets: Land and buildings (235.9) (245.3) (254.7) Plant and machinery (20.9) (16.9) (18.2) Impairment charges (128.8) (33.5) (12.5) Short-term lease expense (22.2) (20.2) (18.0) Low-value lease expense (2.8) (1.9) (2.3) Variable lease expense (45.5) (57.3) (56.2) Sublease income 17.3 18.6 17.3 Charge to operating profit (438.8) (356.5) (344.6) Interest expense related to lease liabilities (106.3) (95.7) (90.9) Charge to profit before taxation for leases (545.1) (452.2) (435.5) |
Disclosure of Maturity of lease liabilities | The maturity of lease liabilities at 31 December 2023 and 2022 were as follows: 2023 2022 £m £m Within one year 405.9 379.1 Between one and two years 326.9 337.7 Between two and three years 282.1 293.0 Between three and four years 261.0 252.3 Between four and five years 231.1 234.8 Over five years 1,265.2 1,328.5 2,772.2 2,825.4 Effect of discounting (617.7) (614.8) Lease liability at end of year 2,154.5 2,210.6 Short-term lease liability 292.3 282.4 Long-term lease liability 1,862.2 1,928.2 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Intangible Assets And Goodwill [Abstract] | |
Movements of Goodwill | The movements in 2023 and 2022 were as follows: £m Cost 1 January 2022 10,991.0 Additions 1 262.6 Disposals — Exchange adjustments 891.0 31 December 2022 12,144.6 Additions 1 319.1 Disposals — Exchange adjustments (484.5) 31 December 2023 11,979.2 Accumulated impairment losses and write-downs 1 January 2022 3,378.7 Impairment losses for the year 37.9 Exchange adjustments 274.6 31 December 2022 3,691.2 Impairment losses for the year 63.6 Exchange adjustments (164.5) 31 December 2023 3,590.3 Net book value 31 December 2023 8,388.9 31 December 2022 8,453.4 1 January 2022 7,612.3 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. |
Movements of Other Intangible Assets | The movements in 2023 and 2022 were as follows: Brands Acquired Other Total £m £m £m £m Cost 1 January 2022 1 1,067.3 921.4 288.1 2,276.8 Additions — — 14.9 14.9 Disposals and derecognition 1 — (33.8) (59.2) (93.0) New acquisitions — 46.5 1.2 47.7 Other movements 2 — 9.3 0.8 10.1 Exchange adjustments 1 98.7 129.8 34.7 263.2 31 December 2022 1 1,166.0 1,073.2 280.5 2,519.7 Additions — — 40.0 40.0 Disposals and derecognition — (15.1) (51.8) (66.9) Reclassifications (665.4) 665.4 — — New acquisitions — 138.5 2.9 141.4 Other movements 2 — — 17.0 17.0 Exchange adjustments (28.4) (47.5) (9.4) (85.3) 31 December 2023 472.2 1,814.5 279.2 2,565.9 Amortisation and impairment 1 January 2022 1 56.8 648.0 212.5 917.3 Charge for the year — 61.9 21.9 83.8 Impairment charges included within restructuring costs 3 — — 29.0 29.0 Disposals and derecognition 1 — (33.6) (59.4) (93.0) Exchange adjustments 1 5.8 108.2 16.7 130.7 31 December 2022 1 62.6 784.5 220.7 1,067.8 Charge for the year — 727.9 24.8 752.7 Other movements 2 — — (0.7) (0.7) Disposals and derecognition — (15.1) (51.5) (66.6) Exchange adjustments (2.8) (27.0) (7.4) (37.2) 31 December 2023 59.8 1,470.3 185.9 1,716.0 Net book value 31 December 2023 412.4 344.2 93.3 849.9 31 December 2022 1,103.4 288.7 59.8 1,451.9 1 January 2022 1,010.5 273.4 75.6 1,359.5 Notes 1 The acquired intangibles balances within these line items have been re-presented to reflect the derecognition of previously fully amortised assets that had no future economic benefit in prior periods. 2 Other movements in acquired intangibles include reclassifications of items previously recorded in trade and other receivables; and 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. 3 Refer to note 3 for further explanation in relation to the impairment charges included within restructuring costs. |
Cash-generating Units with Significant Goodwill | Cash-generating units (CGUs) with significant goodwill and brands with an indefinite useful life as at 31 December are: Goodwill Brands with an indefinite useful life 2023 2022 2023 2022 £m £m £m £m GroupM 3,254.9 3,178.3 — — Wunderman Thompson 1,165.0 1,210.8 — 442.0 VMLY&R 814.6 776.0 — 207.6 Ogilvy 809.3 849.8 213.2 222.8 BCW 618.8 646.0 112.7 140.5 AKQA Group 600.1 628.7 — — FGS Global 452.1 451.8 — — Hill & Knowlton 141.7 145.7 33.2 34.8 Landor Group 115.0 106.5 53.3 55.7 Other 417.4 459.8 — — 8,388.9 8,453.4 412.4 1,103.4 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Summary of Property, Plant and Equipment | The movements in 2023 and 2022 were as follows: Land Freehold Leasehold Fixtures, Computer Total £m £m £m £m £m £m Cost 1 January 2022 43.2 61.4 1,075.0 149.5 391.8 1,720.9 Additions 13.8 0.1 75.8 32.1 86.6 208.4 New acquisitions — — 0.5 0.2 0.6 1.3 Disposals (0.1) (8.3) (62.1) (40.0) (72.1) (182.6) Exchange adjustments (16.9) 39.3 89.7 23.0 39.8 174.9 31 December 2022 40.0 92.5 1,178.9 164.8 446.7 1,922.9 Additions 3.5 3.3 88.3 17.1 65.0 177.2 New acquisitions — — 0.8 — — 0.8 Disposals — — (155.9) (51.0) (95.6) (302.5) Exchange adjustments (31.6) (61.5) (51.0) (11.5) (26.3) (181.9) 31 December 2023 11.9 34.3 1,061.1 119.4 389.8 1,616.5 Depreciation and impairment 1 January 2022 — 2.7 469.6 71.9 280.3 824.5 Charge for the year — 0.7 74.0 26.5 65.7 166.9 Impairment charges included within restructuring costs — — 9.1 0.6 0.1 9.8 Disposals — (1.7) (63.5) (36.7) (71.1) (173.0) Exchange adjustments — 0.3 43.2 17.5 33.0 94.0 31 December 2022 — 2.0 532.4 79.8 308.0 922.2 Charge for the year — 1.0 70.5 24.9 68.7 165.1 Impairment charges included within restructuring costs — — 52.2 2.7 0.9 55.8 Disposals — (0.2) (144.9) (48.4) (94.1) (287.6) Exchange adjustments — (0.2) (29.0) (14.2) (24.1) (67.5) 31 December 2023 — 2.6 481.2 44.8 259.4 788.0 Net book value 31 December 2023 11.9 31.7 579.9 74.6 130.4 828.5 31 December 2022 40.0 90.5 646.5 85.0 138.7 1,000.7 1 January 2022 43.2 58.7 605.4 77.6 111.5 896.4 |
Interests in associates, join_2
Interests in associates, joint ventures and other investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments accounted for using equity method [abstract] | |
Movements in Associates, Joint Ventures and Other Investments | The movements in 2023 and 2022 were as follows: Interests in associates Other £m £m 1 January 2022 412.9 318.3 Additions 4.4 5.1 Loss from associates - after interest and tax (60.4) — Share of other comprehensive income of associate undertakings 51.2 — Dividends (37.6) — Other movements 2.9 — Exchange adjustments 17.1 — Disposals (9.6) (16.0) Reclassification from subsidiaries (5.9) — Reclassification from associates to other investments (22.5) 61.6 Revaluation of other investments through profit or loss — 23.1 Revaluation of other investments through other comprehensive income — (22.3) Amortisation of other intangible assets (0.2) — Impairment charges (47.2) — 31 December 2022 305.1 369.8 Additions 39.4 2.5 Gain from associates - after interest and tax 25.1 — Share of other comprehensive loss of associate undertakings (0.9) — Dividends (30.4) — Other movements (12.5) — Exchange adjustments (19.3) — Disposals (5.4) (10.4) Reclassification to subsidiaries — — Reclassification from associates to other investments — — Revaluation of other investments through profit or loss — (26.2) Revaluation of other investments through other comprehensive income — (3.0) Amortisation of other intangible assets — — Impairment charges (14.6) — 31 December 2023 286.5 332.7 |
Summary of Aggregate Financial Performance of Associates and Joint Ventures | The following table presents a summary of the aggregate financial performance of the Group’s associate undertakings. 2023 2022 2021 £m £m £m Earnings/(loss) from associates - after interest and tax (note 4) 70.2 (60.4) 23.8 Share of other comprehensive (loss)/ earnings of associate undertakings (0.9) 51.2 13.5 Share of total comprehensive earnings/(loss) of associate undertakings 69.3 (9.2) 37.3 |
Deferred tax (Tables)
Deferred tax (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [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 2023 Offset of balances arising from a single transaction 1 2023 Gross balances before offset within countries 2023 Offset within countries 2023 As reported 2023 £m £m £m £m £m Deferred tax assets 684.9 (94.0) 590.9 (266.5) 324.4 Deferred tax liabilities (539.0) 94.0 (445.0) 266.5 (178.5) 145.9 — 145.9 — 145.9 Gross 2022 Offset of balances arising from a single transaction 1 2022 Gross balances before offset within countries 2022 Offset within countries 2022 As reported 2022 £m £m £m £m £m Deferred tax assets 734.2 (145.4) 588.8 (266.7) 322.1 Deferred tax liabilities (762.9) 145.4 (617.5) 266.7 (350.8) (28.7) — (28.7) — (28.7) Note 1 The Group has applied Deferred tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12). Transactions which give rise to the recognition of an asset and a liability on the Group’s balance sheet, including leases for which the Group recognises a right-of-use asset and a lease liability, lead to taxable and deductible temporary differences in certain jurisdictions. The resulting deferred tax assets and deferred tax liabilities arising from these temporary differences have been offset and reported net on the Group’s balance sheet. |
Movements of Major Gross Deferred Tax Assets | The following are the major gross deferred tax assets before offset within countries recognised by the Group and movements thereon in 2023 and 2022: Deferred Accounting Retirement Plant and equipment Property Tax Share- Restructuring Other Total £m £m £m £m £m £m £m £m £m £m 1 January 2022 108.5 106.2 53.4 15.0 53.0 110.5 43.5 61.1 13.8 565.0 Acquisition of subsidiaries — — — — — — — — 1.1 1.1 (Charge)/credit to income (38.7) 3.3 (2.9) (1.0) (9.0) 5.0 1.3 21.2 (14.2) (35.0) Charge to other comprehensive income — — (7.0) — — — — — — (7.0) Charge to equity — — — — — — (15.5) — — (15.5) Exchange differences and other movements 4.5 10.6 4.5 33.9 9.7 7.0 3.0 2.3 4.7 80.2 31 December 2022 74.3 120.1 48.0 47.9 53.7 122.5 32.3 84.6 5.4 588.8 Acquisition of subsidiaries — — — — — — — — — — (Charge)/credit to income (6.0) 13.8 2.8 (11.8) (5.7) (11.5) 3.7 38.7 1.8 25.8 Credit to other comprehensive income — — 1.5 — — — — — — 1.5 Charge to equity — — — — — — (0.3) — — (0.3) Exchange differences and other movements (3.2) (2.2) (2.6) (0.3) 8.4 (6.8) (0.7) (15.7) (1.8) (24.9) 31 December 2023 65.1 131.7 49.7 35.8 56.4 104.2 35.0 107.6 5.4 590.9 |
Movements of Gross Deferred Tax Liabilities | In addition the Group has recognised the following gross deferred tax liabilities before offset within countries and movements thereon in 2023 and 2022: Brands Associate Goodwill Plant and equipment Other Total £m £m £m £m £m £m 1 January 2022 325.1 36.8 133.2 — 40.9 536.0 Acquisition of subsidiaries 15.1 — — — — 15.1 (Credit)/charge to income (12.4) (3.5) 19.7 (14.2) (10.5) (20.9) Charge to other comprehensive income — — — — 0.4 0.4 Exchange differences and other movements 24.8 3.2 20.5 37.2 1.2 86.9 31 December 2022 352.6 36.5 173.4 23.0 32.0 617.5 Acquisition of subsidiaries 35.0 — — — — 35.0 (Credit)/charge to income (173.7) (15.6) 18.4 0.3 (1.7) (172.3) Credit to other comprehensive income — — — — (0.2) (0.2) Exchange differences and other movements (21.2) (1.1) (10.8) (1.1) (0.8) (35.0) 31 December 2023 192.7 19.8 181.0 22.2 29.3 445.0 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other receivables [abstract] | |
Summary of Trade and Other Receivables | The following are included in trade and other receivables 1 : 2023 2022 Amounts to be realised within one year £m £m Trade receivables (net of loss allowance) 7,055.0 7,403.9 Unbilled costs 2 273.6 352.4 VAT and sales taxes recoverable 370.7 448.1 Prepayments 239.0 236.6 Fair value of derivatives 1.6 5.1 Other debtors 3 520.7 585.3 8,460.6 9,031.4 1 Accrued income was previously presented in Trade and other receivables 2 Previously named 'Work in progress' 3 This balance includes campus related enhancement prepayments and other individually not material items 2023 2022 Amounts to be realised after more than one year £m £m Prepayments 2.0 3.9 Fair value of derivatives 32.3 0.6 Other debtors 174.9 214.1 209.2 218.6 |
Ageing of Trade Receivables and Other Financial Assets | The ageing of trade receivables and other financial assets by due date is as follows: Carrying amount at 31 December 2023 Not Days past due 0-30 31-90 91-180 181 Greater 2023 £m £m £m £m £m £m £m Gross trade receivables 7,098.9 6,173.0 612.7 183.0 52.7 30.6 46.9 Expected credit losses (43.9) (1.4) (1.1) (0.9) (2.6) (10.3) (27.6) 7,055.0 6,171.6 611.6 182.1 50.1 20.3 19.3 Expected credit loss rate 0.6 % — % 0.2 % 0.5 % 4.9 % 33.7 % 58.8 % Gross accrued income 3,165.6 2,022.1 548.3 336.7 244.5 14.0 — Expected credit losses (15.0) (0.3) (0.5) (1.3) (12.8) (0.1) — 3,150.6 2,021.8 547.8 335.4 231.7 13.9 — Expected credit loss rate 0.5 % — % 0.1 % 0.4 % 5.2 % 0.7 % n/a Other financial assets 514.1 413.2 33.8 14.4 6.4 17.2 29.1 10,719.7 8,606.6 1,193.2 531.9 288.2 51.4 48.4 Carrying amount at 31 December 2022 Not Days past due 0-30 31-90 91-180 181 Greater 2022 £m £m £m £m £m £m £m Gross trade receivables 7,475.4 6,386.5 706.4 247.1 66.8 23.5 45.1 Expected credit losses (71.5) (1.6) (5.8) (6.6) (6.6) (13.3) (37.6) 7,403.9 6,384.9 700.6 240.5 60.2 10.2 7.5 Expected credit loss rate 1.0 % — % 0.8 % 2.7 % 9.9 % 56.6 % 83.4 % Gross accrued income 3,485.6 2,027.0 603.8 450.5 376.8 27.5 — Expected credit losses (17.3) (0.1) (0.2) (0.1) (16.9) — — 3,468.3 2,026.9 603.6 450.4 359.9 27.5 — Expected credit loss rate 0.5 % — % — % — % 4.5 % — % n/a Other financial assets 612.0 538.8 31.2 6.1 1.0 6.2 28.7 11,484.2 8,950.6 1,335.4 697.0 421.1 43.9 36.2 |
Bad Debt Provisions | 2023 2022 £m £m Expected credit losses At beginning of year 71.5 70.5 New acquisitions 0.6 — Charged to the income statement 14.9 29.1 Released to the income statement (22.2) (8.4) Exchange adjustments (5.3) 5.1 Utilisations and other movements (15.6) (24.8) At end of year 43.9 71.5 |
Trade and other payables_ amo_3
Trade and other payables: amounts falling due within one year (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other current payables [abstract] | |
Summary of Trade and Other Payables | The following are included in trade and other payables falling due within one year 1 : 2023 2022 £m £m Trade payables 10,825.7 11,182.3 Payments due to vendors (earnout agreements) 73.3 62.0 Liabilities in respect of put option agreements with vendors 13.6 18.8 Fair value of derivatives 1.8 58.0 Other creditors and accruals 2 2,408.7 2,914.8 13,323.1 14,235.9 Note 1 Deferred income was previously presented in Trade and other payables. 2 This balance includes staff costs, indirect taxes payable and other individually not material items. The following are included in trade and other payables falling due after more than one year: 2023 2022 £m £m Payments due to vendors (earnout agreements) 125.4 98.1 Liabilities in respect of put option agreements with vendors 90.0 323.3 Fair value of derivatives 1.2 — Other creditors and accruals 66.2 69.5 282.8 490.9 |
Trade and other payables_ amo_4
Trade and other payables: amounts falling due after more than one year (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other non-current payables [abstract] | |
Summary of Trade and Other Payables | The following are included in trade and other payables falling due within one year 1 : 2023 2022 £m £m Trade payables 10,825.7 11,182.3 Payments due to vendors (earnout agreements) 73.3 62.0 Liabilities in respect of put option agreements with vendors 13.6 18.8 Fair value of derivatives 1.8 58.0 Other creditors and accruals 2 2,408.7 2,914.8 13,323.1 14,235.9 Note 1 Deferred income was previously presented in Trade and other payables. 2 This balance includes staff costs, indirect taxes payable and other individually not material items. The following are included in trade and other payables falling due after more than one year: 2023 2022 £m £m Payments due to vendors (earnout agreements) 125.4 98.1 Liabilities in respect of put option agreements with vendors 90.0 323.3 Fair value of derivatives 1.2 — Other creditors and accruals 66.2 69.5 282.8 490.9 |
Maturity Analysis for Non-derivative Financial Liabilities | The following table sets out payments due to vendors (earnouts), comprising contingent consideration and the Directors’ best estimates of future earnout-related obligations: 2023 2022 £m £m Within one year 73.3 62.0 Between one and two years 54.1 19.5 Between two and three years 70.9 27.6 Between three and four years 0.4 28.6 Between four and five years — 22.4 198.7 160.1 |
Summary of Future Anticipated Cash Flows in Relation to Liabilities in Respect of Put Options | The following table is an analysis of future anticipated cash flows in relation to liabilities in respect of put option agreements with vendors at 31 December: 2023 2022 £m £m Within one year 13.6 18.8 Between one and two years 24.0 5.2 Between two and three years 38.6 76.6 Between three and four years 9.8 99.2 Between four and five years 6.2 74.8 Over five years 11.4 67.5 103.6 342.1 |
Bank overdrafts, bonds and ba_2
Bank overdrafts, bonds and bank loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of bank overdraft bonds and bank loans [abstract] | |
Bank Overdrafts, Bonds and Bank Loans Amounts Falling Due Within One Year | Amounts falling due within one year: 2023 2022 £m £m Bank overdrafts 358.2 505.7 Bonds 588.1 663.3 946.3 1,169.0 |
Corporate Bonds and Bank Loans Amounts Falling Due After More Than One Year | Amounts falling due after more than one year: 2023 2022 £m £m Bonds 3,775.0 3,801.8 |
Maturity Analysis for Non-derivative Financial Liabilities | The bonds and bank overdrafts included within liabilities fall due for repayment as follows: 2023 2022 £m £m Within one year 946.3 1,169.0 Between one and two years 432.9 618.0 Between two and three years 647.2 441.5 Between three and four years 648.0 658.8 Between four and five years 647.5 661.1 Over five years 1,399.4 1,422.4 4,721.3 4,970.8 |
Provisions for liabilities an_2
Provisions for liabilities and charges (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of other provisions [abstract] | |
Summary of Provisions for Liabilities and Charges | The movements in 2023 and 2022 were as follows: Employee Property Other Total 1 January 2022 140.3 70.6 57.6 268.5 Charged to the income statement 4.3 8.1 2.1 14.5 Acquisitions 1 — — 1.3 1.3 Utilised (32.5) (12.8) (4.7) (50.0) Released to the income statement — (3.2) (22.2) (25.4) Other movements 14.6 (4.8) 3.2 13.0 Exchange adjustments 16.4 4.9 1.4 22.7 31 December 2022 143.1 62.8 38.7 244.6 Charged to the income statement 3.1 64.2 24.9 92.2 Acquisitions 1 — — 0.6 0.6 Utilised (21.8) (18.7) (0.7) (41.2) Released to the income statement (2.3) (4.0) (8.5) (14.8) Other movements 38.1 (2.9) (0.2) 35.0 Exchange adjustments (7.4) (2.7) (1.8) (11.9) 31 December 2023 152.8 98.7 53.0 304.5 Note 1 Acquisitions include £0.6 million (2022: £1.3 million) of provisions arising from fair value adjustments related to the acquisition of subsidiary undertakings as required by IFRS 3 Business Combinations. |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of share based payments [abstract] | |
Charges for Share-based Incentive Plans | Charges for share-based incentive plans were as follows: 2023 2022 2021 £m £m £m Share-based payments 140.1 122.0 99.6 |
Movement on Ordinary Shares Granted for Significant Restricted Stock Plans | Movement on ordinary shares granted for significant restricted stock plans: Non-vested 1 January 2023 number m Granted Forfeited Vested Non-vested 31 December 2023 number m Executive Performance Share Plan (EPSP) 20.4 7.8 (1.4) (3.9) 22.9 Performance Share Awards (PSA) 4.1 2.3 (0.5) (0.4) 5.5 Leadership Share Awards 11.3 5.9 (1.0) (3.8) 12.4 Weighted average fair value (pence per share) Executive Performance Share Plan (EPSP) 924 p 919 p 947 p 752 p 950 p Performance Share Awards (PSA) 952 p 857 p 939 p 926 p 915 p Leadership Share Awards 899 p 654 p 934 p 673 p 848 p Non-vested 1 January 2022 number m Granted Forfeited Vested Non-vested 31 December 2022 number m Executive Performance Share Plan (EPSP) 16.7 6.1 (2.2) (0.2) 20.4 Performance Share Awards (PSA) 3.1 4.0 (0.2) (2.8) 4.1 Leadership Share Awards 10.4 4.9 (1.2) (2.8) 11.3 Weighted average fair value (pence per share) Executive Performance Share Plan (EPSP) 900 p 1,025 p 1,055 p 613 p 924 p Performance Share Awards (PSA) 604 p 911 p 798 p 519 p 952 p Leadership Share Awards 922 p 787 p 881 p 795 p 899 p |
Options Granted | As at 31 December 2023, unexercised options over ordinary shares of 650,825 and unexercised options over ADRs of 72,695 have been granted under the WPP Worldwide Share Ownership Programme as follows: Number of ordinary Exercise price Exercise dates Unexercised options over ordinary shares 647,575 13.145 2017-2024 Unexercised options over ordinary shares 3,250 13.145 2018-2024 Number of ADRs Exercise price Exercise dates Unexercised options over ADR 72,695 102.670 2017-2024 As at 31 December 2023, unexercised options over ordinary shares of 15,369,025 and unexercised options over ADRs of 1,772,400 have been granted under the WPP Share Option Plan as follows: Number of ordinary Exercise price Exercise dates Unexercised options over ordinary shares 3,524,700 7.064 2025-2032 Unexercised options over ordinary shares 1,806,625 7.344 2023-2030 Unexercised options over ordinary shares 9,500 7.344 2023-2027 Unexercised options over ordinary shares 849,350 8.372 2021-2028 Unexercised options over ordinary shares 7,000 8.372 2021-2025 Unexercised options over ordinary shares 125,125 8.684 2025-2029 Unexercised options over ordinary shares 2,682,975 8.684 2025-2032 Unexercised options over ordinary shares 1,466,100 9.600 2022-2029 Unexercised options over ordinary shares 8,875 9.600 2022-2026 Unexercised options over ordinary shares 2,237,900 11.065 2023-2030 Unexercised options over ordinary shares 1,040,350 13.085 2020-2027 Unexercised options over ordinary shares 7,625 13.085 2020-2024 Unexercised options over ordinary shares 4,000 15.150 2019-2025 Unexercised options over ordinary shares 739,850 15.150 2018-2025 Unexercised options over ordinary shares 859,050 17.055 2019-2026 Number of ADRs Exercise price Exercise dates Unexercised options over ADR 409,115 44.120 2025-2032 Unexercised options over ADR 198,380 48.950 2023-2030 Unexercised options over ADR 318,125 52.600 2025-2032 Unexercised options over ADR 120,995 53.140 2021-2028 Unexercised options over ADR 169,790 62.590 2022-2029 Unexercised options over ADR 255,510 73.780 2023-2030 Unexercised options over ADR 117,650 88.260 2020-2027 Unexercised options over ADR 100,960 105.490 2020-2026 Unexercised options over ADR 81,875 115.940 2018-2025 |
Movements and Weighted-average Exercise Price for Options Granted | The aggregate status of the WPP Share Option Plans during 2023 was as follows: Movements on options granted (represented in ordinary shares) 1 January 2023 Granted Exercised Forfeited Outstanding 31 December 2023 Exercisable 31 December 2023 WPP — — — — — — WWOP 1,639,025 — — (624,725) 1,014,300 — WSOP 21,299,025 5,586,650 (85,900) (2,568,750) 24,231,025 7,386,400 22,938,050 5,586,650 (85,900) (3,193,475) 25,245,325 7,386,400 1 January 2022 Granted Exercised Forfeited Outstanding 31 December 2022 Exercisable 31 December 2022 WPP 6,741 — — (6,741) — — WWOP 2,049,299 — (2,575) (407,699) 1,639,025 — WSOP 19,608,150 5,224,050 (123,125) (3,410,050) 21,299,025 3,188,675 21,664,190 5,224,050 (125,700) (3,824,490) 22,938,050 3,188,675 Weighted average exercise price for options over 1 January 2023 Granted Exercised Forfeited Outstanding 31 December 2023 Exercisable 31 December 2023 Ordinary shares (£) WPP — — — — — — WWOP 13.224 — — 13.432 13.145 — WSOP 10.356 — 8.350 9.959 9.652 — ADRs ($) WWOP 106.379 — — 109.949 102.670 — WSOP 67.910 — 48.950 66.181 62.587 44.120 1 January 2022 Granted Exercised Forfeited Outstanding 31 December 2022 Exercisable 31 December 2022 Ordinary shares (£) WPP 9.355 — — 9.355 — — WWOP 12.923 — 8.458 11.565 13.224 — WSOP 10.854 8.684 8.357 10.530 10.356 7.344 ADRs ($) WWOP 101.693 — — 85.706 106.379 — WSOP 72.228 52.600 53.270 71.674 67.910 48.950 |
Range of Exercise Prices of Options | Options over ordinary shares Outstanding Range of Weighted average Weighted average 7.344-17.055 10.455 70 Options over ADRs Outstanding Range of Weighted average Weighted average 44.120-115.940 64.166 80 |
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: 2023 2022 2021 Fair value of UK options (shares) 131.0 p 177.0 p 220.0 p Fair value of US options (ADRs) $8.59 $11.48 $14.89 Weighted average assumptions UK risk-free interest rate 4.00 % 2.92 % 0.63 % US risk-free interest rate 4.53 % 4.09 % 1.16 % Expected life (months) 48 48 48 Expected volatility 33 % 32 % 34 % Dividend yield 5.6 % 3.9 % 3.4 % |
Employee Benefit Obligations (T
Employee Benefit Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Pension Costs [abstract] | |
Pension Costs | The Group’s pension costs are analysed as follows: 2023 2022 2021 £m £m £m Defined contribution plans 198.1 191.3 162.8 Defined benefit plans charge to operating profit 15.0 13.5 14.9 Pension costs (note 5) 213.1 204.8 177.7 Net interest expense on pension plans (note 6) 4.3 2.2 1.8 217.4 207.0 179.5 |
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: 2023 2022 2021 £m % £m % £m % Equities 24.2 9.3 26.7 6.2 31.8 5.8 Bonds 170.2 65.7 208.8 48.5 259.7 47.0 Insured annuities 3.0 1.2 149.2 34.7 222.5 40.3 Property 1.3 0.5 1.4 0.3 1.0 0.2 Cash 18.3 7.1 18.1 4.2 15.3 2.8 Other 42.0 16.2 26.3 6.1 21.8 3.9 Total fair value of assets 259.0 100.0 430.5 100.0 552.1 100.0 Present value of liabilities (381.2) (552.6) (688.5) Deficit in the plans (122.2) (122.1) (136.4) Irrecoverable surplus — — (0.2) Net liability 1 (122.2) (122.1) (136.6) Plans in surplus 2 13.7 15.4 30.1 Plans in deficit (135.9) (137.5) (166.7) Notes 1 The related deferred tax asset is discussed in note 16. 2 |
Surplus/(Deficit) in Plans by Region | All plan assets have quoted prices in active markets with the exception of other assets. 2023 2022 2021 Surplus/(deficit) in plans by region £m £m £m UK 0.7 2.3 0.4 North America (29.7) (37.1) (28.1) Western Continental Europe (60.1) (52.6) (74.0) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (33.1) (34.7) (34.7) Deficit in the plans (122.2) (122.1) (136.4) |
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. 2023 Surplus/ (deficit) £m 2023 Present value of liabilities £m 2022 Surplus/ (deficit) £m 2022 Present value of liabilities £m 2021 Surplus/ (deficit) £m 2021 Present value of liabilities £m Funded plans by region UK 0.7 (9.2) 2.3 (155.5) 0.4 (231.9) North America 7.4 (182.9) 4.1 (208.5) 20.1 (237.9) Western Continental Europe (34.1) (70.6) (29.1) (67.9) (45.1) (87.6) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (5.4) (27.6) (4.1) (25.4) (6.4) (25.7) Deficit/liabilities in the funded plans (31.4) (290.3) (26.8) (457.3) (31.0) (583.1) Unfunded plans by region North America (37.1) (37.1) (41.2) (41.2) (48.2) (48.2) Western Continental Europe (26.0) (26.0) (23.5) (23.5) (28.9) (28.9) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (27.7) (27.8) (30.6) (30.6) (28.3) (28.3) Deficit/liabilities in the unfunded plans (90.8) (90.9) (95.3) (95.3) (105.4) (105.4) Deficit/liabilities in the plans (122.2) (381.2) (122.1) (552.6) (136.4) (688.5) |
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: 2023 2022 2021 2020 % pa % pa % pa % pa UK Discount rate 1 4.7 5.1 1.8 1.3 Rate of increase in pensions in payment 2.5 4.4 4.5 4.4 Inflation 3.1 3.0 3.2 2.8 North America Discount rate 1 4.9 5.2 2.6 2.0 Rate of increase in salaries 2 n/a n/a n/a 3.0 Western Continental Europe Discount rate 1 3.4 4.1 1.2 0.9 Rate of increase in salaries 2.5 2.5 2.3 2.2 Rate of increase in pensions in payment 2.0 2.0 1.8 1.8 Inflation 2.0 2.0 1.7 1.7 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe Discount rate 1 6.5 6.4 5.3 4.2 Rate of increase in salaries 6.2 5.7 5.6 5.2 Inflation 3.4 3.4 3.7 3.7 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 US as all plans were frozen. Active participants will not accrue additional benefits for future services under these plans. |
Life Expectancies For Defined Benefit Pension Plans | At 31 December 2023, 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 21.8 22.0 23.4 21.1 20.3 Current pensioners 23.6 23.4 24.9 24.2 25.1 Future pensioners 23.5 23.4 25.4 23.4 20.3 Future pensioners 25.2 24.8 27.0 26.0 25.1 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 ten 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) 8.0 7.4 6.3 10.2 5.9 Expected benefit payments over the next ten years (£m) within 12 months 30.2 18.5 0.7 6.0 5.0 in 2025 28.3 18.1 0.6 6.0 3.6 in 2026 29.2 17.8 0.6 6.2 4.6 in 2027 29.0 18.7 0.5 6.2 3.6 in 2028 27.6 15.7 0.5 7.0 4.4 in the next five years 144.4 83.7 1.6 33.2 25.9 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. |
Sensitivity Analysis of Significant Actuarial Assumptions | (Decrease)/increase 2023 2022 Sensitivity analysis of significant actuarial assumptions £m £m Discount rate Increase by 25 basis points: UK (0.1) (3.6) North America (3.8) (4.4) Western Continental Europe (2.3) (2.0) Other 1 (0.5) (0.5) Decrease by 25 basis points: UK 0.2 3.8 North America 3.9 4.6 Western Continental Europe 2.4 2.1 Other 1 0.5 0.6 Rate of increase in salaries Increase by 25 basis points: Western Continental Europe 0.6 0.5 Other 1 0.4 0.5 Decrease by 25 basis points: Western Continental Europe (0.6) (0.5) Other 1 (0.5) (0.5) Rate of increase in pensions in payment Increase by 25 basis points: UK 0.2 0.7 Western Continental Europe 1.2 1.1 Decrease by 25 basis points: UK — (0.6) Western Continental Europe (1.2) (1.0) Life expectancy Increase in longevity by one UK 0.7 6.8 North America 3.3 4.2 Western Continental Europe 3.0 2.6 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. |
Pension Expense Charged to Operating Profit, Amounts Charged to Finance Costs and Amounts Recognised in Consolidated Statement of Comprehensive Income (OCI) | The following tables show the breakdown of the pension expense between amounts charged to operating profit and amounts charged to finance costs: 2023 2022 2021 £m £m £m Service cost 1 12.2 10.4 12.6 Administrative expenses 2.8 3.1 2.3 Charge to operating profit 15.0 13.5 14.9 Net interest expense on pension plans 4.3 2.2 1.8 Charge to profit before taxation for defined benefit plans 19.3 15.7 16.7 Note 1 Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments. The following table shows the breakdown of amounts recognised in other comprehensive income (OCI): 2023 2022 2021 £m £m £m Return on plan assets (excluding interest income) 6.5 (127.6) (29.3) Changes in demographic assumptions underlying the present value of the plan liabilities (0.5) 0.6 (3.6) Changes in financial assumptions underlying the present value of the plan liabilities (13.8) 143.5 31.1 Experience (loss)/gain arising on the plan liabilities (1.3) (0.1) 15.7 Change in irrecoverable surplus — 0.2 0.4 Actuarial (loss)/gain recognised in OCI (9.1) 16.6 14.3 |
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: 2023 2022 2021 £m £m £m Plan liabilities at beginning of year 552.6 688.5 772.7 Service cost 1 12.2 10.4 12.6 Interest cost 20.5 15.5 12.0 Actuarial loss/(gain): Effect of changes in demographic assumptions 0.5 (0.6) 3.6 Effect of changes in financial assumptions 13.8 (143.5) (31.1) Effect of experience adjustments 1.3 0.1 (15.7) Benefits paid (37.5) (52.0) (59.5) (Gain)/loss due to exchange rate movements (16.7) 40.4 (6.1) Settlement payments 2 (163.2) (8.7) (0.3) Other 3 (2.3) 2.5 0.3 Plan liabilities at end of year 381.2 552.6 688.5 Notes 1 Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments. 2 During the year ended 31 December 2023, the Group completed the winding-up of two defined benefit pension plans: The Ogilvy & Mather Group Pension and Life Assurance Plan and the JWT Pension and Life Assurance Scheme, constituting settlements under IAS 19. The settlements led to the full elimination of associated plan assets and plan liabilities of £145.0 million, the fair value of plan assets equaled the underlying liabilities upon settlement such that there is no impact on 2023 net assets or the income statement. 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. The following table shows an analysis of the movement in the pension plan assets for each accounting period: 2023 2022 2021 £m £m £m Fair value of plan assets at beginning of year 430.5 552.1 616.6 Interest income on plan assets 16.2 13.3 10.2 Return on plan assets (excluding interest income) 6.5 (127.6) (29.3) Employer contributions 19.8 24.0 16.7 Benefits paid (37.5) (52.0) (59.5) (Loss)/gain due to exchange rate movements (12.4) 31.5 (0.6) Settlement payments 1 (163.2) (8.7) (0.3) Administrative expenses (2.8) (3.1) (1.8) Other 2 1.9 1.0 0.1 Fair value of plan assets at end of year 259.0 430.5 552.1 Actual return/(loss) on plan assets 22.7 (114.3) (19.1) Notes 1 During the year ended 31 December 2023, the Group completed the winding-up of two defined benefit pension plans: The Ogilvy & Mather Group Pension and Life Assurance Plan and the JWT Pension and Life Assurance Scheme, constituting settlements under IAS 19. The settlements led to the full elimination of associated plan assets and plan liabilities of £145.0 million, the fair value of plan assets equaled the underlying liabilities upon settlement such that there is no impact on 2023 net assets or the income statement. 2 |
Risk management policies (Table
Risk management policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of risk management strategy related to hedge accounting [abstract] | |
Committed Facilities | At 31 December 2023, the Group has access to £6.4 billion of committed facilities with maturity dates spread over the years 2024 to 2046 as illustrated below: 2024 2025 2026 2027 2028 + £m £m £m £m £m £ bonds £400m (2.875% 2046) 400.0 400.0 US bond $220m (5.625% 2043) 172.7 172.7 US bond $93m (5.125% 2042) 72.9 72.9 £ bonds £250m (3.75% 2032) 250.0 250.0 Eurobonds €600m (1.625% 2030) 520.2 520.2 Eurobonds €750m (4.125% 2028) 650.2 650.2 Eurobonds €750m (2.375% 2027) 650.2 650.2 Eurobonds €750m (2.25% 2026) 650.2 650.2 Bank revolver ($2,500m 2026) 1,963.7 1,963.7 Eurobonds €500m (1.375% 2025) 433.5 433.5 US bond $750m (3.75% 2024) 589.1 589.1 Total committed facilities available 6,352.7 589.1 433.5 2,613.9 650.2 2,066.0 Drawn down facilities at 31 December 2023 4,389.0 589.1 433.5 650.2 650.2 2,066.0 Undrawn committed credit facilities 1,963.7 |
Information about hedged items | The effects of the hedging instruments on the Group's financial position and performance are as follows: 2023 2022 (i) Cash flow hedges of foreign currency risk 1 Carrying amount of derivative hedging instruments 2 £(16.5)m £(6.6)m Notional amount of hedged items €1,250.0m €1,000.0m Notional amount of hedging instruments €1,250.0m €1,000.0m Maturity date 2025-2028 2023-2025 Hedge ratio 1:1 1:1 Change in value of hedged item used to determine hedge effectiveness for outstanding hedging instruments £(32.4)m £38.5m Change in value of hedging instruments used to determine hedge effectiveness for outstanding hedging instruments £29.6m £(41.4)m Hedge ineffectiveness (revaluation and retranslation of financial instruments) £2.7m £2.9m Weighted average hedged rate for outstanding hedging instruments 4.4 % 3.2 % (ii) Net investment hedges of foreign currency risk Carrying amount of derivative hedging instruments 2 £48.2m £(46.9)m Carrying amount of non-derivative hedging instruments (bonds) £(835.0)m £(879.5)m Notional amount of hedging instruments $1,873.9m $1,666.8m Notional amount of hedged net assets $1,873.9m $1,666.8m Hedge ratio 1:1 1:1 Change in value of hedged item used to determine hedge effectiveness £108.2m £(141.5)m Change in value of hedging instrument used to determine hedge effectiveness £(110.1)m £141.5m Hedge ineffectiveness (revaluation and retranslation of financial instruments) £1.9m £0.0 Weighted average hedged rate for the year (USD/GBP) 1.2731 1.2083 Notes 1 Relates to cross currency swaps designated as cash flow hedges 2 This amount is presented in trade and other receivables, and trade and other payables. The use of derivatives may entail a derivative transaction qualifying for more than one hedge type designation under IFRS 9. Therefore, the carrying amounts are grossed up by hedge type, whereas they are presented at an instrument level in the balance sheet. |
Summary of currency risk | Impact on income statement Impact on equity 2023 2022 2023 2022 £m £m £m £m US dollar (41.0) (179.6) (18.0) 34.6 Euro (185.8) 78.9 — (11.3) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about financial instruments [abstract] | |
Analysis of Financial Assets and Liabilities | An analysis of the Group’s financial assets and liabilities by accounting classification is set out below: Derivatives Held at Held at Amortised Carrying £m £m £m £m £m 2023 Other investments — 257.2 75.5 — 332.7 Cash and short-term deposits — 180.7 — 2,036.8 2,217.5 Bank overdrafts and bonds: amounts falling due within one year — — — (946.3) (946.3) Bonds: amounts falling due after more than one year — — — (3,775.0) (3,775.0) Trade and other receivables: amounts falling due within one year — — — 10,601.4 10,601.4 Trade and other receivables: amounts falling due after more than one year — — — 118.3 118.3 Trade and other payables: amounts falling due within one year — — — (10,917.4) (10,917.4) Trade and other payables: amounts falling due after more than one year — — — (1.5) (1.5) Derivative assets 31.7 2.2 — — 33.9 Derivative liabilities — (3.0) — — (3.0) Payments due to vendors (earnout agreements) — (198.7) — — (198.7) Liabilities in respect of put options — — — (103.6) (103.6) 31.7 238.4 75.5 (2,987.3) (2,641.7) Derivatives Held at Held at Amortised Carrying £m £m £m £m £m 2022 Other investments — 255.7 114.1 — 369.8 Cash and short-term deposits 1 — 219.9 — 2,271.6 2,491.5 Bank overdrafts and bonds: amounts falling due within one year — — — (1,169.0) (1,169.0) Bonds: amounts falling due after more than one year — — — (3,801.8) (3,801.8) Trade and other receivables: amounts falling due within one year — — — 11,338.0 11,338.0 Trade and other receivables: amounts falling due after more than one year — — — 146.2 146.2 Trade and other payables: amounts falling due within one year — — — (11,283.0) (11,283.0) Trade and other payables: amounts falling due after more than one year — — — (0.9) (0.9) Derivative assets 0.6 5.1 — — 5.7 Derivative liabilities (53.3) (4.7) — — (58.0) Payments due to vendors (earnout agreements) — (160.1) — — (160.1) Liabilities in respect of put options 2 — — — (342.1) (342.1) (52.7) 315.9 114.1 (2,841.0) (2,463.7) Notes 1 Certain money market funds included within cash and short-term deposits for the year ended 31 December 2022 have been re-presented given they are measured at held at fair value through profit or loss in accordance with IFRS 9. Prior year balances were presented as amortised cost. 2 Liabilities in respect of put option balances for the year ended 31 December 2022 have been re-presented given they are measured at amortised cost in accordance with IFRS 9. Prior year balances were presented as held at fair value through profit or loss. |
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 Total £m £m £m £m 2023 Derivatives in designated hedge relationships Derivative assets — 31.7 — 31.7 Derivative liabilities — — — — Held at fair value through profit or loss Other investments 0.6 — 256.6 257.2 Derivative assets — 2.2 — 2.2 Derivative liabilities — (3.0) — (3.0) Payments due to vendors (earnout agreements) — — (198.7) (198.7) Held at fair value through other comprehensive income Other investments 7.4 — 68.1 75.5 Level 1 Level 2 Level 3 Total £m £m £m £m 2022 Derivatives in designated hedge relationships Derivative assets — 0.6 — 0.6 Derivative liabilities — (53.3) — (53.3) Held at fair value through profit or loss Other investments 0.4 — 255.3 255.7 Derivative assets — 5.1 — 5.1 Derivative liabilities — (4.7) — (4.7) Payments due to vendors (earnout agreements) — — (160.1) (160.1) Held at fair value through other comprehensive income Other investments 10.9 — 103.2 114.1 There have been no transfers between these levels in the years presented. Reconciliation of level 3 fair value measurements: Payments due to vendors (earnout agreements) Other £m £m 1 January 2022 (196.7) 290.0 Gains recognised in the income statement 26.2 23.1 Losses recognised in other comprehensive income — (5.3) Exchange adjustments (14.3) — Additions (46.7) 66.7 Disposals — (16.0) Cancellations — — Settlements 71.4 — 31 December 2022 (160.1) 358.5 Gains/(losses) recognised in the income statement 50.8 (26.7) Gains recognised in other comprehensive income — 0.7 Exchange adjustments 1.8 — Additions (149.7) 2.6 Disposals — (10.4) Settlements 58.5 — 31 December 2023 (198.7) 324.7 |
Authorised and issued share c_2
Authorised and issued share capital (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of classes of share capital [abstract] | |
Summary of Authorised and Issued Share Capital | Equity ordinary shares Nominal value £m Authorised At 1 January 2021 1,750,000,000 175.0 At 31 December 2021 1,750,000,000 175.0 At 31 December 2022 1,750,000,000 175.0 At 31 December 2023 1,750,000,000 175.0 Issued and fully paid At 1 January 2021 1,296,080,242 129.6 Exercise of share options 534,800 — Share cancellations (72,155,492) (7.2) At 31 December 2021 1,224,459,550 122.4 Exercise of share options 125,700 — Share cancellations (83,157,954) (8.3) At 31 December 2022 1,141,427,296 114.1 Exercise of share options 85,900 — Share cancellations — — At 31 December 2023 1,141,513,196 114.1 |
Other reserves (Tables)
Other reserves (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of reserves within equity [abstract] | |
Summary of Other Reserves | Other reserves comprise the following: Capital Equity Hedging reserve £m Translation Total Balance at 1 January 2021 6.4 (122.3) — 307.1 191.2 Foreign exchange differences on translation of foreign operations — — — (132.7) (132.7) Gain on net investment hedges — — — 45.5 45.5 Cash flow hedges: Fair value loss arising on hedging instruments — — (38.0) — (38.0) Less: gain reclassified to profit or loss — — 38.0 — 38.0 Share of other comprehensive income of associate undertakings — — — 7.3 7.3 Share cancellations 7.2 — — — 7.2 Recognition and remeasurement of financial instruments — (242.7) — — (242.7) Share purchases – close period commitments — (211.7) — — (211.7) Balance at 31 December 2021 13.6 (576.7) — 227.2 (335.9) Foreign exchange differences on translation of foreign operations — — — 409.0 409.0 Loss on net investment hedges — — — (141.5) (141.5) Cash flow hedges: Fair value gain arising on hedging instruments — — 38.5 — 38.5 Less: loss reclassified to profit or loss — — (38.5) — (38.5) Share of other comprehensive income of associate undertakings — — — 31.9 31.9 Share cancellations 8.3 — — — 8.3 Recognition/derecognition of liabilities in respect of put options — 101.7 — — 101.7 Share purchases – close period commitments — 211.7 — — 211.7 Balance at 31 December 2022 21.9 (263.3) — 526.6 285.2 Foreign exchange differences on translation of foreign operations — — — (404.0) (404.0) Gain on net investment hedges — — — 108.2 108.2 Cash flow hedges: Fair value loss arising on hedging instruments — — (43.3) — (43.3) Less: gain reclassified to profit or loss — — 44.2 — 44.2 Share of other comprehensive loss of associate undertakings — — — (0.9) (0.9) Share cancellations — — — — — Recognition/derecognition of liabilities in respect of put options — 197.2 — — 197.2 Share purchases – close period commitments — — — — — Balance at 31 December 2023 21.9 (66.1) 0.9 229.9 186.6 |
Summary of Translation Reserve Comprises | The translation reserve comprises: 2023 £m 2022 £m 2021 £m Balance relating to continuing net investment hedges (53.1) (143.8) (2.3) Balance relating to discontinued net investment hedges (67.5) (85.0) (85.0) Balance relating to foreign exchange differences on translation of foreign operations 350.5 755.4 314.5 229.9 526.6 227.2 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about business combination [abstract] | |
Book Values of Identifiable Assets and Liabilities Acquired and Their Fair Value | The Group acquired a number of subsidiaries in the year. Details of the purchase consideration, the assets and liabilities recognised as a result of the acquisition and the goodwill recognised has been outlined in the table below. Book Fair value Fair value Intangible assets 2.9 138.5 141.4 Right-of-use assets 2.4 — 2.4 Property, plant and equipment 0.8 — 0.8 Cash and cash equivalents 22.5 — 22.5 Trade receivables due within one year 12.6 — 12.6 Other current assets 4.9 — 4.9 Total assets 46.1 138.5 184.6 Short-term loans (48.9) — (48.9) Other current liabilities (37.1) — (37.1) Trade and other payables due after one year (0.6) (3.0) (3.6) Deferred tax liabilities 1.5 (35.0) (33.5) Long-term lease liabilities (1.9) — (1.9) Provisions (0.4) (0.2) (0.6) Total liabilities (87.4) (38.2) (125.6) Net assets (41.3) 100.3 59.0 Non-controlling interests (1.7) Goodwill 297.8 Consideration 355.1 Consideration satisfied by: Cash 227.4 Payments due to vendors 127.7 The Group acquired a number of subsidiaries in the prior year. Details of the purchase consideration, the assets and liabilities recognised as a result of the acquisition and the goodwill recognised has been outlined in the table below. Book Fair value Fair value Intangible assets 1.2 46.5 47.7 Property, plant and equipment 1.3 — 1.3 Cash and cash equivalents 38.8 — 38.8 Trade receivables due within one year 27.0 — 27.0 Other current assets 13.1 1.1 14.2 Total assets 81.4 47.6 129.0 Current liabilities (49.4) (5.3) (54.7) Trade and other payables due after one year (10.3) (27.3) (37.6) Deferred tax liabilities (0.1) (12.4) (12.5) Long-term lease liabilities (0.1) — (0.1) Provisions (0.1) (1.2) (1.3) Total liabilities (60.0) (46.2) (106.2) Net assets 21.4 1.4 22.8 Non-controlling interests (2.1) Fair value of equity stake in associate undertakings before acquisition of controlling interest (9.0) Goodwill 249.3 Consideration 261.0 Consideration satisfied by: Cash 218.3 Payments due to vendors 42.7 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of transactions between related parties [abstract] | |
Summary of related party transactions outstanding | The following amounts were outstanding at 31 December: 2023 2022 £m £m Amounts owed by related parties Kantar 17.5 26.1 Other 56.0 62.4 73.5 88.5 Amounts owed to related parties Kantar (4.7) (10.5) Other (70.4) (65.2) (75.1) (75.7) |
Reconciliation of profit befo_2
Reconciliation of profit before taxation to headline operating profit (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of reconciliation of profit before interest and taxation to headline PBIT [abstract] | |
Reconciliation of Operating Profit to Headline Operating Profit | Reconciliation of profit before taxation to headline operating profit: 2023 2022 2021 £m £m £m Profit before taxation 346.3 1,159.8 950.8 Finance and investment income (127.3) (145.4) (69.4) Finance costs 389.0 359.4 283.6 Revaluation and retranslation of financial instruments (6.8) (76.0) 87.8 Profit before interest and taxation 601.2 1,297.8 1,252.8 (Earnings)/loss from associates - after interest and tax (70.2) 60.4 (23.8) Operating profit 531.0 1,358.2 1,229.0 Goodwill impairment 63.6 37.9 1.8 Amortisation and impairment of acquired intangible assets 727.9 62.1 97.8 Investment and other impairment charges/(reversals) 17.8 77.0 (42.4) Restructuring and transformation costs 195.5 218.8 175.4 Property related restructuring costs 232.5 18.0 — (Gains)/losses on disposal of investments and subsidiaries (7.1) 36.3 10.6 Gains on remeasurement of equity interests arising from a change in scope of ownership — (66.5) — Litigation settlement (11.0) — 21.3 Headline operating profit 1,750.2 1,741.8 1,493.5 |
Accounting policies - Basis of
Accounting policies - Basis of Preparation (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Net current liabilities | £ (2,307.2) | £ (2,610) |
Revenue less pass-through cost | 31% |
Accounting policies - Summary o
Accounting policies - Summary of Estimated Useful Life of Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2023 | |
Bottom of Range | Brand names | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 10 years |
Bottom of Range | Customer-related intangibles | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 3 years |
Bottom of Range | Other proprietary tools | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 3 years |
Bottom of Range | Other | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 3 years |
Top of Range | Brand names | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 20 years |
Top of Range | Customer-related intangibles | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 10 years |
Top of Range | Other proprietary tools | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 10 years |
Top of Range | Other | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 5 years |
Accounting policies - Contingen
Accounting policies - Contingent Consideration (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Bottom of Range | |
Disclosure of detailed information about business combination [line items] | |
Contingent consideration performance period | 4 years |
Top of Range | |
Disclosure of detailed information about business combination [line items] | |
Contingent consideration performance period | 5 years |
Accounting policies - Summary_2
Accounting policies - Summary of Estimated Useful Life of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2023 | |
Freehold buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 50 years |
Leasehold land and buildings | |
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 | Fixtures, fittings and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 3 years |
Bottom of Range | Computer equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 3 years |
Top of Range | Fixtures, fittings and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 10 years |
Top of Range | Computer equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 5 years |
Segment information - Contribut
Segment information - Contributions by Reportable Segments (Details) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 GBP (£) segment | Dec. 31, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | |
Disclosure of operating segments [line items] | |||
Number of reportable segments | segment | 3 | ||
Revenue | £ 14,844.8 | £ 14,428.7 | £ 12,801.1 |
Headline operating profit | 1,750.2 | 1,741.8 | 1,493.5 |
Share-based payments | 140.1 | 122 | 99.6 |
Capital additions | 217.2 | 223.3 | 293.1 |
Depreciation and amortisation | 446.7 | 451 | 444 |
Goodwill impairment | 63.6 | 37.9 | 1.8 |
Earnings/(loss) from associates | 70.2 | (60.4) | 23.8 |
Interests in associates and joint ventures | 286.5 | 305.1 | 412.9 |
Global Integrated Agencies | |||
Disclosure of operating segments [line items] | |||
Revenue | 12,594.9 | 12,191.9 | 10,887.6 |
Revenue less pass-through costs | 9,808.2 | 9,743.6 | 8,680.4 |
Headline operating profit | 1,474.3 | 1,433.4 | 1,221.2 |
Share-based payments | 118.9 | 100.7 | 92.5 |
Capital additions | 180.4 | 193.8 | 253.1 |
Depreciation and amortisation | 362.8 | 373 | 374.7 |
Goodwill impairment | 40.3 | 0 | 0 |
Earnings/(loss) from associates | 56.4 | 10.8 | 22.7 |
Interests in associates and joint ventures | 93.1 | 80.1 | 115.2 |
Public Relations | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,262.2 | 1,232.4 | 963.5 |
Revenue less pass-through costs | 1,180 | 1,161.2 | 914.2 |
Headline operating profit | 191.1 | 191.9 | 144.6 |
Share-based payments | 14.3 | 14.4 | 4.8 |
Capital additions | 15.4 | 11.1 | 18 |
Depreciation and amortisation | 40 | 36.7 | 28.2 |
Goodwill impairment | 0 | 3.7 | 0 |
Earnings/(loss) from associates | 0.2 | 0.5 | 1.7 |
Interests in associates and joint ventures | 0 | 0.1 | 8 |
Specialist Agencies | |||
Disclosure of operating segments [line items] | |||
Revenue | 987.7 | 1,004.4 | 950 |
Revenue less pass-through costs | 871.5 | 894.5 | 802.6 |
Headline operating profit | 84.8 | 116.5 | 127.7 |
Share-based payments | 6.9 | 6.9 | 2.3 |
Capital additions | 21.4 | 18.4 | 22 |
Depreciation and amortisation | 43.9 | 41.3 | 41.1 |
Goodwill impairment | 23.3 | 34.2 | 1.8 |
Earnings/(loss) from associates | 13.6 | (71.7) | (0.6) |
Interests in associates and joint ventures | £ 193.4 | £ 224.9 | £ 289.7 |
Segment information - Contrib_2
Segment information - Contributions by Geographical Area (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of geographical areas [line items] | |||
Revenue | £ 14,844.8 | £ 14,428.7 | £ 12,801.1 |
Headline operating profit | 1,750.2 | 1,741.8 | 1,493.5 |
Non-current assets | 12,322.1 | 13,401.5 | |
North America | |||
Disclosure of geographical areas [line items] | |||
Revenue | 5,527.6 | 5,549.5 | 4,494.2 |
Revenue less pass-through costs | 4,556.3 | 4,688.1 | 3,849.2 |
Headline operating profit | 834.3 | 770.4 | 655.7 |
Non-current assets | 5,217.6 | 5,896.4 | |
United Kingdom | |||
Disclosure of geographical areas [line items] | |||
Revenue | 2,155.4 | 2,003.8 | 1,866.9 |
Revenue less pass-through costs | 1,626.3 | 1,537.2 | 1,414.3 |
Headline operating profit | 214.5 | 187.1 | 180.9 |
Non-current assets | 1,669.7 | 1,556.2 | |
Western Continental Europe | |||
Disclosure of geographical areas [line items] | |||
Revenue | 3,037.2 | 2,876.2 | 2,786.3 |
Revenue less pass-through costs | 2,410.5 | 2,318.5 | 2,225.4 |
Headline operating profit | 258.4 | 301.3 | 288.6 |
Non-current assets | 2,695.5 | 2,797.9 | |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe | |||
Disclosure of geographical areas [line items] | |||
Revenue | 4,124.6 | 3,999.2 | 3,653.7 |
Revenue less pass-through costs | 3,266.6 | 3,255.5 | 2,908.3 |
Headline operating profit | 443 | 483 | 368.3 |
Non-current assets | 2,739.3 | 3,151 | |
United States | |||
Disclosure of geographical areas [line items] | |||
Revenue | 5,187.1 | 5,230.9 | 4,220.8 |
Revenue less pass-through costs | 4,270.6 | 4,402 | 3,597.4 |
Headline operating profit | 785.4 | 727.6 | £ 615.2 |
Non-current assets | £ 5,113.9 | £ 5,379.5 |
Costs of services and general_3
Costs of services and general and administrative costs - Summary of Operating Costs (Details) - GBP (£) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |||
Costs of services | £ 12,325,800,000 | £ 11,890,100,000 | £ 10,597,500,000 |
General and administrative costs | 1,988,000,000 | 1,180,400,000 | 974,600,000 |
Costs of services and general and administrative costs | 14,313,800,000 | 13,070,500,000 | 11,572,100,000 |
Costs of services and general and administrative costs include: | |||
Staff costs (note 5) | 8,137,600,000 | 8,165,800,000 | 7,166,700,000 |
Establishment costs | 515,800,000 | 536,000,000 | 529,000,000 |
Media pass-through costs | 2,173,600,000 | 1,905,700,000 | 1,865,300,000 |
Other costs of services and general and administrative costs | 3,486,800,000 | 2,463,000,000 | 2,011,100,000 |
Goodwill impairment (note 13) | 63,600,000 | 37,900,000 | 1,800,000 |
Amortisation and impairment of acquired intangible assets | 727,900,000 | 62,100,000 | 97,800,000 |
Investment and other impairment charges/(reversals) | 17,800,000 | 77,000,000 | (42,400,000) |
Restructuring and transformation costs | 195,500,000 | 218,800,000 | 175,400,000 |
Property-related restructuring costs | 232,500,000 | 18,000,000 | 0 |
(Gains)/losses on disposal of investments and subsidiaries | (7,100,000) | 36,300,000 | 10,600,000 |
Gains on remeasurement of equity interests arising from a change in scope of ownership | 0 | (66,500,000) | 0 |
Litigation settlement | (11,000,000) | 0 | 21,300,000 |
Amortisation of other intangible assets | 24,800,000 | 21,900,000 | 19,900,000 |
Depreciation of property, plant and equipment | 165,100,000 | 166,900,000 | 151,200,000 |
Depreciation of right-of-use assets | 256,800,000 | 262,200,000 | 272,900,000 |
Losses/(gains) on sale of property, plant and equipment | 400,000 | (6,400,000) | (1,300,000) |
Foreign exchange | (14,500,000) | (8,700,000) | 4,400,000 |
Short-term lease expense | 22,200,000 | 20,200,000 | 18,000,000 |
Low-value lease expense | 2,800,000 | 1,900,000 | 2,300,000 |
Other pass-through costs | £ 811,500,000 | £ 723,700,000 | £ 538,600,000 |
Costs of services and general_4
Costs of services and general and administrative costs - Additional Information (Details) - GBP (£) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Information About Operating Cost [line items] | |||
Credits relating to the release of excess provisions and other balances | £ 16,900,000 | £ 29,300,000 | £ 19,300,000 |
Goodwill impairment | 63,600,000 | 37,900,000 | 1,800,000 |
Amortisation and impairment of acquired intangible assets | 727,900,000 | 62,100,000 | 97,800,000 |
Investment and other impairment charges/(reversals) | 17,800,000 | 77,000,000 | (42,400,000) |
Impairments related to macro-economic factors | 48,000,000 | ||
Impairments related to capitalized configuration and customization costs | 29,000,000 | ||
Restructuring and transformation costs | 195,500,000 | 218,800,000 | 175,400,000 |
Restructuring and transformation costs, IT Transformation Program | 113,400,000 | 134,500,000 | 94,200,000 |
Restructuring and transformation costs in relation to the continuing restructuring plan | 72,300,000 | 69,200,000 | 51,300,000 |
Property-related restructuring costs | 232,500,000 | 18,000,000 | 0 |
Impairment loss, right of use assets | 128,800,000 | ||
Impairment charges included within restructuring costs | 55,800,000 | ||
Gains (losses) on disposals of investments | (7,100,000) | 36,300,000 | 10,600,000 |
Losses on disposals of investments | 36,300,000 | 10,600,000 | |
(Gains)/losses on disposal of investments and subsidiaries | 7,100,000 | ||
Gains (losses) on remeasurement of equity interests arising from change in scope of ownership | 0 | (66,500,000) | 0 |
Gains on litigation settlements | 11,000,000 | 0 | |
Associates | |||
Disclosure Of Information About Operating Cost [line items] | |||
Amortisation and impairment of acquired intangible assets | 200,000 | ||
Kantar | |||
Disclosure Of Information About Operating Cost [line items] | |||
Gains (losses) on disposals of investments | (18,100,000) | ||
Astus Australia | |||
Disclosure Of Information About Operating Cost [line items] | |||
Gains (losses) on disposals of investments | 11,000,000 | ||
Russian Interest | |||
Disclosure Of Information About Operating Cost [line items] | |||
Losses on disposals of investments | 63,100,000 | ||
Res Publica | |||
Disclosure Of Information About Operating Cost [line items] | |||
(Gains)/losses on disposal of investments and subsidiaries | 17,700,000 | ||
Mutual Mobile | |||
Disclosure Of Information About Operating Cost [line items] | |||
(Gains)/losses on disposal of investments and subsidiaries | 9,400,000 | ||
XMKT | |||
Disclosure Of Information About Operating Cost [line items] | |||
Losses on disposals of investments | 4,900,000 | ||
Imagina Spain | |||
Disclosure Of Information About Operating Cost [line items] | |||
Gains (losses) on remeasurement of equity interests arising from change in scope of ownership | (66,500,000) | 0 | |
Brand Names No Longer In Use | |||
Disclosure Of Information About Operating Cost [line items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 1,400,000 | 47,900,000 | |
Brand Names No Longer In Use | Wunderman Thompson | |||
Disclosure Of Information About Operating Cost [line items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 430,800,000 | ||
Brand Names No Longer In Use | Y&R Brands | |||
Disclosure Of Information About Operating Cost [line items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 202,300,000 | ||
Brand names | |||
Disclosure Of Information About Operating Cost [line items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 650,100,000 | 1,400,000 | 47,900,000 |
ERP System | |||
Disclosure Of Information About Operating Cost [line items] | |||
Restructuring and transformation costs | (52,300,000) | (96,800,000) | (62,200,000) |
Transformation Costs | |||
Disclosure Of Information About Operating Cost [line items] | |||
Restructuring and transformation costs | 38,300,000 | 0 | 0 |
Covid-19 Pandemic | |||
Disclosure Of Information About Operating Cost [line items] | |||
Restructuring Costs Due To Covid Nineteen Pandemic | £ 9,800,000 | £ 15,100,000 | £ 29,900,000 |
Costs of services and general_5
Costs of services and general and administrative costs - Auditor's Remuneration (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Information About Operating Cost [line items] | |||
Audit-related services | £ 0.5 | £ 0.4 | £ 0.4 |
Fees payable to the auditors pursuant to legislation | 39.9 | 36.9 | 31.9 |
Other services | 1.7 | 0.6 | 1.4 |
Total other fees | 2.2 | 1.1 | 1.8 |
Total fees | 42.1 | 38 | 33.7 |
Compliance services | |||
Disclosure Of Information About Operating Cost [line items] | |||
Tax compliance services | 0 | 0.1 | 0 |
WPP plc | |||
Disclosure Of Information About Operating Cost [line items] | |||
Audit-related services | 10 | 8.4 | 7.1 |
Subsidiaries | |||
Disclosure Of Information About Operating Cost [line items] | |||
Audit-related services | £ 29.9 | £ 28.5 | £ 24.8 |
Earnings_(loss) from associat_2
Earnings/(loss) from associates - after interest and tax (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of associates [line items] | |||
Earnings/(loss) from associates - after interest and tax | £ 70.2 | £ (60.4) | £ 23.8 |
Interests in associates and joint ventures | 286.5 | 305.1 | 412.9 |
Restructuring and transformation costs | 195.5 | 218.8 | 175.4 |
Kantar | |||
Disclosure of associates [line items] | |||
Interests in associates and joint ventures | 0 | 0 | 61.2 |
Kantar | |||
Disclosure of associates [line items] | |||
Non-refundable distribution received | £ 45.1 | ||
Amortisation and impairment of acquired intangible assets other than goodwill | 75.8 | 38.8 | |
Restructuring and transformation costs | £ 54.8 | £ 18.8 |
Our people - Additional Informa
Our people - Additional Information (Details) - number_of_employee | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number and average number of employees [abstract] | |||
Average number of staff | 114,732 | 114,129 | 104,808 |
Staff numbers at the end of period | 114,173 | 115,473 | 109,382 |
Our people - Geographical Distr
Our people - Geographical Distribution of staff (Details) - number_of_employee | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of geographical areas [line items] | |||
Average number of staff | 114,732 | 114,129 | 104,808 |
North America | |||
Disclosure of geographical areas [line items] | |||
Average number of staff | 23,562 | 23,740 | 21,764 |
United Kingdom | |||
Disclosure of geographical areas [line items] | |||
Average number of staff | 12,457 | 12,490 | 10,995 |
Western Continental Europe | |||
Disclosure of geographical areas [line items] | |||
Average number of staff | 23,580 | 22,717 | 21,514 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe | |||
Disclosure of geographical areas [line items] | |||
Average number of staff | 55,133 | 55,182 | 50,535 |
Our people - Reportable Segment
Our people - Reportable Segment Distribution of Staff (Details) - number_of_employee | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of operating segments [line items] | |||
Average number of staff | 114,732 | 114,129 | 104,808 |
Global Integrated Agencies | |||
Disclosure of operating segments [line items] | |||
Average number of staff | 97,838 | 97,288 | 89,701 |
Public Relations | |||
Disclosure of operating segments [line items] | |||
Average number of staff | 8,377 | 8,125 | 7,121 |
Specialist Agencies | |||
Disclosure of operating segments [line items] | |||
Average number of staff | 8,517 | 8,716 | 7,986 |
Our people - Staffing Costs (De
Our people - Staffing Costs (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number and average number of employees [abstract] | |||
Wages and salaries | £ 5,878.8 | £ 5,721 | £ 4,797.2 |
Cash-based incentive plans | 232.9 | 292.6 | 455.2 |
Share-based incentive plans (note 22) | 140.1 | 122 | 99.6 |
Social security costs | 715.1 | 689.4 | 630.1 |
Pension costs (note 23) | 213.1 | 204.8 | 177.7 |
Severance | 78.2 | 44.2 | 41.8 |
Other staff costs | 879.4 | 1,091.8 | 965.1 |
Staffing costs | £ 8,137.6 | £ 8,165.8 | £ 7,166.7 |
Our people - Summary of Compens
Our people - Summary of Compensation for Key Management Personnel (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number and average number of employees [abstract] | |||
Short-term employee benefits | £ 28.1 | £ 29.7 | £ 28 |
Pensions and other post-retirement benefits | 1.3 | 1.1 | 0.9 |
Share-based payments | 30.1 | 29.8 | 14.6 |
Key management personnel compensation | £ 59.5 | £ 60.6 | £ 43.5 |
Finance and investment income_3
Finance and investment income, finance costs and revaluation and retranslation of financial instruments - Summary of Finance Income, Finance Costs and Revaluation and Retranslation of Financial Instruments (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |||
Income from equity investments | £ 12.9 | £ 24.5 | £ 17.9 |
Interest income | 114.4 | 120.9 | 51.5 |
Finance and investment income | 127.3 | 145.4 | 69.4 |
Net interest expense on pension plans | 4.3 | 2.2 | 1.8 |
Interest on other long-term employee benefits | 6 | 3.7 | 2.4 |
Interest expense and similar charges | 272.4 | 257.8 | 188.5 |
Interest expense related to lease liabilities | 106.3 | 95.7 | 90.9 |
Finance costs | 389 | 359.4 | 283.6 |
Movements in fair value of treasury instruments | (3.1) | 0.5 | 9.1 |
Premium on the early repayment of bonds | 0 | 0 | (13) |
Revaluation of investments and other assets held at fair value through profit or loss | (20.9) | 23.1 | (7.5) |
Remeasurement of put options over non-controlling interests | (1.5) | 27.9 | (40.6) |
Revaluation of payments due to vendors (earnout agreements) | 50.8 | 26.2 | (58.7) |
Retranslation of financial instruments | (18.5) | (1.7) | 22.9 |
Revaluation and retranslation of financial instruments | £ 6.8 | £ 76 | £ (87.8) |
Finance and investment income_4
Finance and investment income, finance costs and revaluation and retranslation of financial instruments - Additional Information (Details) £ in Millions, $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 GBP (£) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 GBP (£) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 GBP (£) |
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | £ | £ 4,363.1 | £ 4,465.1 | £ 4,441.7 | ||||
US commercial paper | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | € | € 0 | ||||||
Weighted average | US revolving credit facilities | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ | $ 41 | $ 0 | |||||
Average interest rate | 4.54% | 4.54% | 4.54% | ||||
Weighted average | US commercial paper | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ | $ 433 | $ 195 | $ 0 | ||||
Average interest rate | 5.45% | 5.45% | 5.45% | 2.56% | 2.56% | ||
Weighted average | Euro Commercial Paper Programme | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | £ | £ 45 | £ 34 | |||||
Average interest rate | 4.90% | 4.90% | 4.90% | 1.95% | 1.95% | ||
US Dollar bonds | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ | $ 1,063 | ||||||
US Dollar bonds | Weighted average | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Average interest rate | 4.26% | 4.26% | 4.26% | ||||
Eurobonds | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | € | € 3,350,000,000 | ||||||
Eurobonds | Weighted average | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Average interest rate | 2.46% | 2.46% | 2.46% | ||||
Sterling bonds | Weighted average | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | £ | £ 650 | ||||||
Average interest rate | 3.21% | 3.21% | 3.21% |
Taxation - Additional Informati
Taxation - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Major components of tax expense (income) [abstract] | |||
Effective tax rate on (loss)/profit before tax | 43.10% | 33.10% | 24.20% |
Current year | £ (197.1) | £ 9.4 | £ (131) |
Remeasurement of UK deferred tax balances, recognized tax credit | £ 0 | £ 0 | £ 23.8 |
Taxation - Tax Charge (Details)
Taxation - Tax Charge (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Corporation tax | |||
Current year | £ 432.8 | £ 425.8 | £ 404 |
Prior years | (85.6) | (55.5) | (41.4) |
Corporation tax | 347.2 | 370.3 | 362.6 |
Deferred tax | |||
Current year | (197.1) | 9.4 | (131) |
Prior years | (1) | 4.7 | (1.5) |
Deferred tax | (198.1) | 14.1 | (132.5) |
Tax charge | £ 149.1 | £ 384.4 | £ 230.1 |
Taxation - Tax Charge Reconcile
Taxation - Tax Charge Reconciled to Profit Before Taxation (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Major components of tax expense (income) [abstract] | |||
Profit before taxation | £ 346.3 | £ 1,159.8 | £ 950.8 |
Tax at the corporation rate of 19.0% | 81.4 | 220.4 | 180.7 |
Tax effect of (earnings)/losses from associates | (15) | 17.4 | (13.3) |
Irrecoverable withholding taxes | 34.8 | 25.9 | 52.3 |
Tax effect of items that are not deductible in determining taxable profits | 39 | 66.7 | 29.3 |
Tax effect of non-deductible goodwill impairment | 16.2 | 7.2 | 0.6 |
Effect of different tax rates in subsidiaries operating in other jurisdictions | 41.8 | 94.3 | 81.2 |
Origination and reversal of unrecognised temporary differences | 8.8 | (1.1) | (36.3) |
Tax losses not recognised or utilised in the year | 44 | 9.8 | 7.4 |
Utilisation of tax losses not previously recognised | (15.3) | (5.4) | (5.1) |
Net release of prior year provisions in relation to acquired businesses | (3.9) | (2.8) | (1.1) |
Other prior year adjustments | (82.7) | (48) | (41.8) |
Impact of deferred tax rate change | 0 | 0 | (23.8) |
Tax charge | £ 149.1 | £ 384.4 | £ 230.1 |
Effective tax rate on profit before tax | 43.10% | 33.10% | 24.20% |
Ordinary dividends - Summary of
Ordinary dividends - Summary of Ordinary Dividends (Details) - GBP (£) £ / shares in Units, £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Dividends [line items] | |||
Amounts recognised as distributions to equity holders, per share | £ 0.3940 | £ 0.3370 | £ 0.2650 |
Amounts recognised as distributions to equity holders | £ 422.8 | £ 365.4 | £ 314.7 |
Previous period final amount | |||
Disclosure of Dividends [line items] | |||
Amounts recognised as distributions to equity holders, per share | £ 0.2440 | £ 0.1870 | £ 0.1400 |
Amounts recognised as distributions to equity holders | £ 261.8 | £ 203.5 | £ 167.7 |
Interim period amount | |||
Disclosure of Dividends [line items] | |||
Amounts recognised as distributions to equity holders, per share | £ 0.1500 | £ 0.1500 | £ 0.1250 |
Amounts recognised as distributions to equity holders | £ 161 | £ 161.9 | £ 147 |
Ordinary dividends - Summary _2
Ordinary dividends - Summary of Proposed Final Dividend (Details) - £ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Dividends [abstract] | |||
Proposed final dividend (pence per share) | £ 0.2440 | £ 0.2440 | £ 0.1870 |
Earnings per share - Calculatio
Earnings per share - Calculation of Basic and Diluted EPS (Details) - GBP (£) £ / shares in Units, £ in Millions, shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings per share [abstract] | |||
Earnings | £ 110.4 | £ 682.7 | £ 637.7 |
Weighted average shares used in basic EPS calculation (in shares) | 1,072.1 | 1,097.9 | 1,194.1 |
EPS (in dollar per share) | £ 0.103 | £ 0.622 | £ 0.534 |
Diluted earnings | £ 110.4 | £ 682.7 | £ 637.7 |
Weighted average shares used in diluted EPS calculation (in shares) | 1,094 | 1,116.4 | 1,215.3 |
Diluted EPS (in dollar per share) | £ 0.101 | £ 0.612 | £ 0.525 |
Earnings per share - Additional
Earnings per share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings per share [line items] | |||
Shares excluded from the computation of diluted earnings per share | 25,200,000 | 19,700,000 | 7,200,000 |
Treasury shares | |||
Earnings per share [line items] | |||
Ordinary shares in issue | 66,675,497 | 70,489,953 | 70,489,953 |
Ordinary shares | |||
Earnings per share [line items] | |||
Ordinary shares in issue | 1,141,513,196 | 1,141,427,296 | 1,224,459,550 |
Earnings per share - Reconcilia
Earnings per share - Reconciliation Between Shares Used in Calculating Basic and Diluted EPS (Details) - GBP (£) £ / shares in Units, £ in Millions, shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings per share [abstract] | |||
Diluted earnings | £ 110.4 | £ 682.7 | £ 637.7 |
Weighted average shares used in diluted EPS calculation | 1,094 | 1,116.4 | 1,215.3 |
Diluted earnings per ordinary share (sterling per share) | £ 0.101 | £ 0.612 | £ 0.525 |
Weighted average shares used in basic EPS calculation | 1,072.1 | 1,097.9 | 1,194.1 |
Dilutive share options outstanding | 0.6 | 0.7 | 1.3 |
Other potentially issuable shares | 21.3 | 17.8 | 19.9 |
Sources of finance - Summary of
Sources of finance - Summary of Equity and Debt Financing (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Analysis of changes in financing | |||
Beginning balance | £ 4,160.4 | £ 4,069 | £ 5,050.1 |
Ordinary shares issued | 0.7 | 1.2 | 4.4 |
Share cancellations | 807.4 | 729.3 | |
Ending balance | 3,832.7 | 4,160.4 | 4,069 |
Analysis of changes in financing | |||
Borrowings, beginning balance | 4,465.1 | 4,441.7 | |
Acquisition of subsidiaries | 28.3 | (38.7) | |
Borrowings, ending balance | 4,363.1 | 4,465.1 | 4,441.7 |
Issued capital and share premium | |||
Analysis of changes in financing | |||
Beginning balance | 690 | 697.1 | 699.9 |
Ordinary shares issued | 0.7 | 1.2 | 4.4 |
Share cancellations | 0 | (8.3) | (7.2) |
Ending balance | 690.7 | 690 | 697.1 |
Debt financing | |||
Analysis of changes in financing | |||
Borrowings, beginning balance | 4,465.1 | 4,441.7 | 5,032.7 |
Net decrease in drawings on bank loans and bonds | (48.9) | (220.6) | (397.1) |
Amortisation of financing costs included in debt | 0.2 | 7 | 8.1 |
Acquisition of subsidiaries | 48.9 | 0 | 0 |
Changes in fair value due to hedging arrangements | 0 | 0 | (2.5) |
Other movements | (3.5) | (0.2) | (0.4) |
Exchange adjustments | (98.7) | 237.2 | (199.1) |
Borrowings, ending balance | £ 4,363.1 | £ 4,465.1 | £ 4,441.7 |
Sources of finance - Additional
Sources of finance - Additional Information (Details) £ in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||||||||||
Dec. 31, 2023 GBP (£) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 AUD ($) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 AUD ($) | May 31, 2021 AUD ($) | Dec. 31, 2020 GBP (£) | |
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total equity | £ | £ 3,832.7 | £ 4,160.4 | £ 4,069 | £ 5,050.1 | |||||||||
Undrawn committed credit facility | £ | 1,963.7 | 2,069 | 1,847.5 | ||||||||||
Borrowings | £ | 4,363.1 | 4,465.1 | 4,441.7 | ||||||||||
Issued capital and share premium | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total equity | £ | £ 690.7 | £ 690 | £ 697.1 | £ 699.9 | |||||||||
US bond $750m (3.75% 2024) | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | $ 750 | ||||||||||||
Bonds interest rate | 3.75% | 3.75% | 3.75% | ||||||||||
US bond $93m (5.125% 2042) | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | $ 93 | ||||||||||||
Bonds interest rate | 5.125% | 5.125% | 5.125% | ||||||||||
US bond $220m (5.625% 2043) | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | $ 220 | ||||||||||||
Bonds interest rate | 5.625% | 5.625% | 5.625% | ||||||||||
Eurobonds Due May 2028 | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | € | € 750,000,000 | ||||||||||||
Bonds interest rate | 4.125% | 4.125% | 4.125% | ||||||||||
Eurobonds Due March 2025 | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | € | € 500,000,000 | ||||||||||||
Bonds interest rate | 1.375% | 1.375% | 1.375% | ||||||||||
Eurobonds €750m (2.25% 2026) | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | € | € 750,000,000 | ||||||||||||
Bonds interest rate | 2.25% | 2.25% | 2.25% | ||||||||||
Euro bonds Due May 2027 | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | € | € 750,000,000 | ||||||||||||
Bonds interest rate | 2.375% | 2.375% | 2.375% | ||||||||||
Eurobonds €600m (1.625% 2030) | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | € | € 600,000,000 | ||||||||||||
Bonds interest rate | 1.625% | 1.625% | 1.625% | ||||||||||
Eurobonds Due November 2023 | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | € | € 750,000,000 | ||||||||||||
Adjustment to floating basis | 3% | 3% | 3% | ||||||||||
Sterling bonds due May 2032 | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | £ | £ 250 | ||||||||||||
Bonds interest rate | 3.75% | 3.75% | 3.75% | ||||||||||
Sterling bonds due September 2046 | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | £ 400 | $ 400 | |||||||||||
Bonds interest rate | 2.875% | 2.875% | 2.875% | ||||||||||
US Revolving Credit Facilities March 2026 | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | $ 2,500 | ||||||||||||
Borrowings term | 5 years | ||||||||||||
US revolving credit facilities | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Borrowings averaged equivalent | $ 41 | $ 0 | $ 0 | ||||||||||
US revolving credit facilities | Weighted average | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bonds interest rate | 4.54% | 4.54% | 4.54% | ||||||||||
Borrowings | $ 41 | $ 0 | |||||||||||
Australian revolving credit facilities due 2021 | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | $ 150 | ||||||||||||
Amended Australian revolving credit facilities due 2023 | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | $ 270 | ||||||||||||
Australian New Zealand revolving credit facilities | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Borrowings averaged equivalent | $ 0 | $ 52 | |||||||||||
US commercial paper | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Borrowings | € | € 0 | ||||||||||||
US commercial paper | Weighted average | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bonds interest rate | 5.45% | 5.45% | 5.45% | 2.56% | 2.56% | 2.56% | 2.56% | ||||||
Borrowings | $ 433 | $ 195 | $ 0 | ||||||||||
Euro commercial paper | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Borrowings | € | € 0 | ||||||||||||
Euro commercial paper | Weighted average | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Borrowings | € | € 45,000,000 | € 34,000,000 | € 0 |
Sources of finance - Analysis o
Sources of finance - Analysis of Future Anticipated Cash Flows Related to Debt (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | £ (5,639.4) | £ (5,969.7) | £ (5,798.1) |
Effect of discounting/financing rates | 918.1 | 998.9 | 1,014.1 |
Debt financing | (4,721.3) | (4,970.8) | (4,784) |
Borrowings | Within one year | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | (711.3) | (791.6) | (326.8) |
Borrowings | Between one and two years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | (534.6) | (724.3) | (745.4) |
Borrowings | Between two and three years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | (746.2) | (524.2) | (646.5) |
Borrowings | Between three and four years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | (726.2) | (740.3) | (492.8) |
Borrowings | Between four and five years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | (704.1) | (719.9) | (698) |
Borrowings | Over five years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | (1,858.8) | (1,963.7) | (2,546.3) |
Borrowings | Debt financing (including interest) under the Revolving Credit Facility and in relation to unsecured loan notes | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | (5,281.2) | (5,464) | (5,455.8) |
Bank overdrafts | Within one year | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | £ (358.2) | £ (505.7) | £ (342.3) |
Sources of finance - Analysis_2
Sources of finance - Analysis of Fixed and Floating Rate Debt by Currency (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings and cross currency swaps | £ 4,363.1 | £ 4,465.1 | £ 4,441.7 |
US Dollar bonds | Fixed interest rate | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings and cross currency swaps | £ 1,471.7 | £ 1,379.5 | £ 1,231.8 |
Average interest rate | 4.62% | 4.18% | 4.18% |
Period (months) | 66 months | 60 months | 72 months |
Sterling bonds | Fixed interest rate | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings and cross currency swaps | £ 1,094.1 | £ 1,094.1 | £ 1,094.1 |
Average interest rate | 2.97% | 2.97% | 2.97% |
Period (months) | 130 months | 143 months | 155 months |
Eurobonds | Fixed interest rate | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings and cross currency swaps | £ 1,820.5 | £ 2,080.6 | £ 1,976 |
Average interest rate | 2.12% | 2.21% | 2.04% |
Period (months) | 48 months | 55 months | 69 months |
Eurobonds | Floating interest rate | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings and cross currency swaps | £ 0 | £ 0 | £ 210.2 |
Floating basis | EURIBOR | EURIBOR | EURIBOR |
Period (months) | 0 months | 0 months | 3 months |
Other | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings and cross currency swaps | £ (23.2) | £ 89.1 | £ (70.4) |
Sources of finance - Analysis_3
Sources of finance - Analysis of Future Anticipated Cash Flows Related of Financial Derivatives (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Financial liabilities, Payable | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Future anticipated cash flows, Financial liabilities | £ 731.5 | £ 1,186.3 | £ 1,198.6 |
Future anticipated cash flows, Financial assets | 1,543.9 | 808.5 | 611.1 |
Financial liabilities, Payable | Within one year | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Future anticipated cash flows, Financial liabilities | 682.2 | 1,186.3 | 185.8 |
Future anticipated cash flows, Financial assets | 335.3 | 347.1 | 581.1 |
Financial liabilities, Payable | Between one and two years | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Future anticipated cash flows, Financial liabilities | 15.9 | 0 | 551.4 |
Future anticipated cash flows, Financial assets | 487.4 | 11.6 | 30 |
Financial liabilities, Payable | Between two and three years | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Future anticipated cash flows, Financial liabilities | 15 | 0 | 11.6 |
Future anticipated cash flows, Financial assets | 37.5 | 449.8 | 0 |
Financial liabilities, Payable | Between three and four years | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Future anticipated cash flows, Financial liabilities | 14.7 | 449.8 | |
Future anticipated cash flows, Financial assets | 37.1 | 0 | |
Financial liabilities, Payable | Between four and five years | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Future anticipated cash flows, Financial liabilities | 3.7 | ||
Future anticipated cash flows, Financial assets | 646.6 | ||
Financial assets, Receivable | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Future anticipated cash flows, Financial liabilities | 729.3 | 1,126.2 | 1,146.4 |
Future anticipated cash flows, Financial assets | 1,569.9 | 813.7 | 612.9 |
Financial assets, Receivable | Within one year | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Future anticipated cash flows, Financial liabilities | 681.3 | 1,126.2 | 173.7 |
Future anticipated cash flows, Financial assets | 310.7 | 345.7 | 582.5 |
Financial assets, Receivable | Between one and two years | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Future anticipated cash flows, Financial liabilities | 15.7 | 0 | 521.1 |
Future anticipated cash flows, Financial assets | 479.6 | 6.2 | 30.4 |
Financial assets, Receivable | Between two and three years | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Future anticipated cash flows, Financial liabilities | 14.6 | 0 | 6 |
Future anticipated cash flows, Financial assets | 32.3 | £ 461.8 | 0 |
Financial assets, Receivable | Between three and four years | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Future anticipated cash flows, Financial liabilities | 14.2 | 445.6 | |
Future anticipated cash flows, Financial assets | 32.5 | £ 0 | |
Financial assets, Receivable | Between four and five years | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Future anticipated cash flows, Financial liabilities | 3.5 | ||
Future anticipated cash flows, Financial assets | £ 714.8 |
Sources of finance - Analysis_4
Sources of finance - Analysis of Changes in Financing Activities (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in Financial Instruments [Abstract] | |||
Borrowings, beginning balance | £ 4,465.1 | £ 4,441.7 | |
Derivatives, beginning balance | 52.3 | 50.6 | |
Lease liabilities, beginning balance | 2,210.6 | 2,041.8 | |
Share repurchase commitments, beginning balance | 0 | 211.7 | |
Liabilities from financing activities, beginning balance | 6,728 | 6,745.8 | |
Cash and short-term deposits, beginning balance | (2,491.5) | (3,882.9) | |
Bank overdrafts, beginning balance | 505.7 | 342.3 | |
Opening balance | 4,742.2 | 3,205.2 | |
Cash flow | (387.1) | 823.5 | |
Acquisition of subsidiaries | 28.3 | (38.7) | |
Foreign exchange | (145.5) | 325.2 | |
Interest and other | 389.5 | 427 | |
Borrowings, ending balance | 4,363.1 | 4,465.1 | £ 4,441.7 |
Derivatives, ending balance | (30.9) | 52.3 | 50.6 |
Lease liabilities, ending balance | 2,154.5 | 2,210.6 | 2,041.8 |
Share repurchase commitments, ending balance | 0 | 211.7 | |
Liabilities from financing activities, ending balance | 6,486.7 | 6,728 | 6,745.8 |
Cash and short-term deposits, ending balance | (2,217.5) | (2,491.5) | (3,882.9) |
Bank overdrafts, ending balance | 358.2 | 505.7 | 342.3 |
Closing balance | 4,627.4 | 4,742.2 | 3,205.2 |
Interest expense related to lease liabilities | 102.9 | 92.4 | £ 88.4 |
Liabilities From Financing Activities | |||
Changes in Financial Instruments [Abstract] | |||
Cash flow | (456.5) | (834.3) | |
Acquisition of subsidiaries | 50.8 | 0.1 | |
Foreign exchange | (225.1) | 389.4 | |
Interest and other | 389.5 | 427 | |
Borrowings | |||
Changes in Financial Instruments [Abstract] | |||
Cash flow | (48.9) | (220.6) | |
Acquisition of subsidiaries | 48.9 | 0 | |
Foreign exchange | (98.7) | 237.2 | |
Interest and other | (3.3) | 6.8 | |
Derivatives | |||
Changes in Financial Instruments [Abstract] | |||
Cash flow | (46) | 0 | |
Acquisition of subsidiaries | 0 | 0 | |
Foreign exchange | (50.8) | 6.4 | |
Interest and other | 13.6 | (4.7) | |
Lease liabilities | |||
Changes in Financial Instruments [Abstract] | |||
Cash flow | (361.6) | (402) | |
Acquisition of subsidiaries | 1.9 | 0.1 | |
Foreign exchange | (75.6) | 145.8 | |
Interest and other | 379.2 | 424.9 | |
Share repurchase commitments | |||
Changes in Financial Instruments [Abstract] | |||
Cash flow | (211.7) | ||
Acquisition of subsidiaries | 0 | ||
Foreign exchange | 0 | ||
Interest and other | 0 | ||
Cash and short-term debt | |||
Changes in Financial Instruments [Abstract] | |||
Cash flow | 216.9 | 1,494.4 | |
Acquisition of subsidiaries | (22.5) | (38.8) | |
Foreign exchange | 79.6 | (64.2) | |
Interest and other | 0 | 0 | |
Bank overdrafts | |||
Changes in Financial Instruments [Abstract] | |||
Cash flow | (147.5) | 163.4 | |
Acquisition of subsidiaries | 0 | 0 | |
Foreign exchange | 0 | 0 | |
Interest and other | £ 0 | £ 0 |
Analysis of cash flows - Summar
Analysis of cash flows - Summary of Analysis of Cash Flows (Details) £ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 GBP (£) | Dec. 31, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | Dec. 31, 2023 USD ($) | ||
Disclosure Of Cash Flow Statement [line items] | |||||
Profit for the year | £ 197.2 | £ 775.4 | £ 720.7 | ||
Taxation | 149.1 | 384.4 | 230.1 | ||
Revaluation and retranslation of financial instruments | (6.8) | (76) | 87.8 | ||
Finance costs | 389 | 359.4 | 283.6 | ||
Finance and investment income | (127.3) | (145.4) | (69.4) | ||
Earnings/(loss) from associates - after interest and tax | (70.2) | 60.4 | (23.8) | ||
Non-cash share-based incentive plans (including share options) | 140.1 | 122 | 99.6 | ||
Depreciation of property, plant and equipment | 165.1 | 166.9 | 151.2 | ||
Depreciation of right-of-use assets | 256.8 | 262.2 | 272.9 | ||
Impairment charges included within restructuring costs | 184.6 | 43.3 | 39.2 | ||
Goodwill impairment | 63.6 | 37.9 | 1.8 | ||
Amortisation and impairment of acquired intangible assets | 727.9 | 62.1 | 97.8 | ||
Amortisation of other intangible assets | 24.8 | 21.9 | 19.9 | ||
Investment and other impairment charges/(reversals) | 17.8 | 77 | (42.4) | ||
(Gains)/losses on disposal of investments and subsidiaries | (7.1) | 36.3 | 10.6 | ||
Gains on remeasurement of equity interests arising from a change in scope of ownership | 0 | (66.5) | 0 | ||
Losses/(gains) of sale of property, plant and equipment | 0.4 | (6.4) | (1.3) | ||
Decrease/(increase) in trade receivables and accrued income | 231.8 | (498.6) | (458.9) | ||
(Decrease)/increase in trade payables and deferred income | (238) | 170.6 | 777.8 | ||
Decrease/(increase) in other receivables | 125 | (154.1) | (120) | ||
(Decrease)/increase in other payables - short-term | (563.5) | (259.6) | 547 | ||
Increase/(decrease) in other payables - long-term | 118.8 | (67) | (11) | ||
Increase/(decrease) in provisions | 65.7 | (38) | (32.9) | ||
Corporation and overseas tax paid | (395.3) | (390.9) | (391.1) | ||
Payment on early settlement of bonds | 0 | 0 | (13) | ||
Interest expense related to lease liabilities | (102.9) | (92.4) | (88.4) | ||
Other interest and similar charges paid | (274.5) | (210.2) | (173.7) | ||
Interest received | 115.8 | 88.9 | 47.5 | ||
Investment income | 12.9 | 24.5 | 17.8 | ||
Dividends from associates | 43.4 | 37.6 | 53.4 | ||
Earnout payments recognised in operating activities | (6) | (24.8) | (3.8) | ||
Net cash inflow from operating activities | [1] | 1,238.2 | 700.9 | 2,029 | |
Acquisitions and disposals: | |||||
Net cash inflow from operating activities | (227) | (218.3) | (227.6) | ||
Cash and cash equivalents acquired | 22.5 | 38.8 | (2.3) | ||
Earnout payments recognised in investing activities | (52.5) | (46.6) | (53.2) | ||
Purchase of other investments (including associates) | (9.8) | (10.1) | (99.2) | ||
Acquisitions | [1] | (266.8) | (236.2) | (382.3) | |
Proceeds on disposal of investments and subsidiaries | 99.5 | 50.1 | 51.9 | ||
Cash and cash equivalents disposed | (0.7) | (12.4) | (23.6) | ||
Disposals of investments and subsidiaries | 98.8 | 37.7 | 28.3 | ||
Cash consideration received from non-controlling interests | 46.1 | 0 | 39.5 | ||
Cash consideration for purchase of non-controlling interests | (16.4) | (84.2) | (135) | ||
Cash consideration for purchase of non-controlling interests | 29.7 | (84.2) | (95.5) | ||
Net acquisition payments and disposal proceeds | (138.3) | (282.7) | (449.5) | ||
Share repurchases and buybacks: | |||||
Purchase of own shares by ESOP Trusts | (53.9) | (55.3) | (89.2) | ||
Shares purchased into treasury for cancellation | 0 | (807.4) | (729.3) | ||
Share repurchases and buybacks | (53.9) | (862.7) | (818.5) | ||
Proceeds from issue of bonds: | |||||
Proceeds from issue of bonds | 1,052.6 | 0 | 0 | ||
Drawdown from revolving credit facility | 400 | 0 | 0 | ||
Repayment of borrowings: | |||||
Decrease in drawings on bank loans | 0 | (11.3) | (36.3) | ||
Repayment of borrowing-related derivatives | (46) | 0 | 0 | ||
Repayment of revolving credit facility | (400) | 0 | 0 | ||
Net repayment of debt assumed on acquisition | (48.9) | 0 | 0 | ||
Net cash outflow | 1,147.5 | 220.6 | 397.1 | ||
Cash and cash equivalents: | |||||
Cash at bank and in hand | 2,036.8 | 2,271.6 | 2,776.6 | ||
Short-term bank deposits | 180.7 | 219.9 | 1,106.3 | ||
Overdrafts | (358.2) | (505.7) | (342.3) | ||
Cash and cash equivalents excluding disposal group | 1,859.3 | 1,985.8 | 3,540.6 | ||
Proceeds from issue of €750 million bonds | |||||
Proceeds from issue of bonds: | |||||
Bond amount | 750 | ||||
Proceeds from issue of bonds | 652.6 | 0 | 0 | ||
Repayment of borrowings: | |||||
Bond amount | 750 | ||||
Repayment of €750 million bonds | |||||
Proceeds from issue of bonds: | |||||
Bond amount | 750 | ||||
Repayment of borrowings: | |||||
Bond amount | 750 | ||||
Repayment of bonds | (652.6) | 0 | 0 | ||
Repayment of $500000000 million bonds | |||||
Proceeds from issue of bonds: | |||||
Bond amount | $ | $ 500 | ||||
Repayment of borrowings: | |||||
Bond amount | $ | $ 500 | ||||
Repayment of bonds | 0 | 0 | (360.8) | ||
Repayment of €250 million bonds | |||||
Proceeds from issue of bonds: | |||||
Bond amount | 250 | ||||
Repayment of borrowings: | |||||
Bond amount | 250 | ||||
Repayment of bonds | £ 0 | £ (209.3) | £ 0 | ||
[1] Earnout payments in excess of the amount determined at acquisition are recorded as operating activities. |
Leases - Summary of Movement in
Leases - Summary of Movement in Right of use Assets and Lease Liabilities (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Leases [Line Items] | |||
Beginning balance, right-of-use assets | £ 1,528.5 | £ 1,395.1 | |
Additions | 304.6 | 387.6 | |
Transfers to net investment in subleases | (4.6) | (7) | |
Disposals | (10.3) | (43) | |
Depreciation of right-of-use assets | (256.8) | (262.2) | £ (272.9) |
Impairment charges included within restructuring costs | (128.8) | (33.5) | (12.5) |
Exchange adjustments | (50.4) | 91.5 | |
Ending balance, right-of-use assets | 1,382.2 | 1,528.5 | 1,395.1 |
Right of use assets that meet the definition of an investment property | 20.8 | 18.5 | |
Lease liabilities, beginning balance | 2,210.6 | 2,041.8 | |
Additions | 287.9 | 377.3 | |
Interest expense related to lease liabilities | 106.3 | 95.7 | 90.9 |
Disposals | (13.1) | (48) | |
Repayment of lease liabilities (including interest) | (361.6) | (402) | |
Exchange adjustments | (75.6) | 145.8 | |
Lease liabilities, ending balance | 2,154.5 | 2,210.6 | 2,041.8 |
Land and buildings | |||
Disclosure Of Leases [Line Items] | |||
Beginning balance, right-of-use assets | 1,482.2 | 1,357 | |
Additions | 255 | 363.8 | |
Transfers to net investment in subleases | (4.6) | (7) | |
Disposals | (9.2) | (42.2) | |
Depreciation of right-of-use assets | (235.9) | (245.3) | (254.7) |
Impairment charges included within restructuring costs | (128.8) | (33.3) | |
Exchange adjustments | (49.1) | 89.2 | |
Ending balance, right-of-use assets | 1,309.6 | 1,482.2 | 1,357 |
Lease liabilities, beginning balance | 2,162.2 | 2,002.5 | |
Additions | 237.7 | 353.6 | |
Interest expense related to lease liabilities | 103.4 | 94.2 | |
Disposals | (11.4) | (46.1) | |
Repayment of lease liabilities (including interest) | (340) | (385.6) | |
Exchange adjustments | (74.1) | 143.6 | |
Lease liabilities, ending balance | 2,077.8 | 2,162.2 | 2,002.5 |
Plant and machinery | |||
Disclosure Of Leases [Line Items] | |||
Beginning balance, right-of-use assets | 46.3 | 38.1 | |
Additions | 49.6 | 23.8 | |
Transfers to net investment in subleases | 0 | 0 | |
Disposals | (1.1) | (0.8) | |
Depreciation of right-of-use assets | (20.9) | (16.9) | (18.2) |
Impairment charges included within restructuring costs | 0 | (0.2) | |
Exchange adjustments | (1.3) | 2.3 | |
Ending balance, right-of-use assets | 72.6 | 46.3 | 38.1 |
Lease liabilities, beginning balance | 48.4 | 39.3 | |
Additions | 50.2 | 23.7 | |
Interest expense related to lease liabilities | 2.9 | 1.5 | |
Disposals | (1.7) | (1.9) | |
Repayment of lease liabilities (including interest) | (21.6) | (16.4) | |
Exchange adjustments | (1.5) | 2.2 | |
Lease liabilities, ending balance | £ 76.7 | £ 48.4 | £ 39.3 |
Leases - Summary of breakdown o
Leases - Summary of breakdown of Lease Expense (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Leases [Line Items] | |||
Depreciation of right-of-use assets | £ (256.8) | £ (262.2) | £ (272.9) |
Impairment charges | (128.8) | (33.5) | (12.5) |
Short-term lease expense | (22.2) | (20.2) | (18) |
Low-value lease expense | (2.8) | (1.9) | (2.3) |
Variable lease expense | (45.5) | (57.3) | (56.2) |
Sublease income | 17.3 | 18.6 | 17.3 |
Charge to operating profit | (438.8) | (356.5) | (344.6) |
Interest expense related to lease liabilities | (106.3) | (95.7) | (90.9) |
Charge to profit before taxation for leases | (545.1) | (452.2) | (435.5) |
Land and buildings | |||
Disclosure Of Leases [Line Items] | |||
Depreciation of right-of-use assets | (235.9) | (245.3) | (254.7) |
Impairment charges | (128.8) | (33.3) | |
Interest expense related to lease liabilities | (103.4) | (94.2) | |
Plant and machinery | |||
Disclosure Of Leases [Line Items] | |||
Depreciation of right-of-use assets | (20.9) | (16.9) | £ (18.2) |
Impairment charges | 0 | (0.2) | |
Interest expense related to lease liabilities | £ (2.9) | £ (1.5) |
Leases - Summary of Maturity of
Leases - Summary of Maturity of Lease Liabilities (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Leases [Line Items] | |||
Gross lease liabilities | £ 2,772.2 | £ 2,825.4 | |
Effect of discounting | (617.7) | (614.8) | |
Lease liability at end of year | 2,154.5 | 2,210.6 | £ 2,041.8 |
Short-term lease liability | 292.3 | 282.4 | |
Long-term lease liability | 1,862.2 | 1,928.2 | |
Within one year | |||
Disclosure Of Leases [Line Items] | |||
Gross lease liabilities | 405.9 | 379.1 | |
Between one and two years | |||
Disclosure Of Leases [Line Items] | |||
Gross lease liabilities | 326.9 | 337.7 | |
Between two and three years | |||
Disclosure Of Leases [Line Items] | |||
Gross lease liabilities | 282.1 | 293 | |
Between three and four years | |||
Disclosure Of Leases [Line Items] | |||
Gross lease liabilities | 261 | 252.3 | |
Between four and five years | |||
Disclosure Of Leases [Line Items] | |||
Gross lease liabilities | 231.1 | 234.8 | |
Over five years | |||
Disclosure Of Leases [Line Items] | |||
Gross lease liabilities | £ 1,265.2 | £ 1,328.5 |
Leases - Additional Information
Leases - Additional Information (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases Disclosure [Abstract] | ||
Future cash flows for leases not yet commenced to which lessee is committed | £ 280 | £ 440 |
Intangible Assets - Movement of
Intangible Assets - Movement of Goodwill (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in goodwill [abstract] | |||
Beginning balance | £ 8,453.4 | £ 7,612.3 | |
Goodwill impairment | 63.6 | 37.9 | £ 1.8 |
Ending balance | 8,388.9 | 8,453.4 | 7,612.3 |
Cost | |||
Reconciliation of changes in goodwill [abstract] | |||
Beginning balance | 12,144.6 | 10,991 | |
Additions | 319.1 | 262.6 | |
Disposals | 0 | 0 | |
Exchange adjustments | (484.5) | 891 | |
Ending balance | 11,979.2 | 12,144.6 | 10,991 |
Accumulated impairment losses and write-downs | |||
Reconciliation of changes in goodwill [abstract] | |||
Beginning balance | (3,691.2) | (3,378.7) | |
Goodwill impairment | 63.6 | 37.9 | 1.8 |
Exchange adjustments | (164.5) | 274.6 | |
Ending balance | £ (3,590.3) | £ (3,691.2) | £ (3,378.7) |
Intangible Assets - Movements o
Intangible Assets - Movements of Other Intangible Assets (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | £ 1,451.9 | £ 1,359.5 |
Ending balance | 849.9 | 1,451.9 |
Cost | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | 2,519.7 | 2,276.8 |
Additions | 40 | 14.9 |
Disposals and retirements, intangible assets other than goodwill | 66.9 | 93 |
Reclassifications | 0 | |
New acquisitions | 141.4 | 47.7 |
Other movements | 17 | 10.1 |
Exchange adjustments | (85.3) | 263.2 |
Ending balance | 2,565.9 | 2,519.7 |
Amortisation and impairment | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | (1,067.8) | (917.3) |
Disposals and retirements, intangible assets other than goodwill | (66.6) | (93) |
Other movements | (0.7) | |
Exchange adjustments | (37.2) | 130.7 |
Charge for the year | 752.7 | 83.8 |
Impairment charges included within restructuring costs | 29 | |
Ending balance | (1,716) | (1,067.8) |
Brands with an indefinite useful life | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | 1,103.4 | 1,010.5 |
Ending balance | 412.4 | 1,103.4 |
Brands with an indefinite useful life | Cost | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | 1,166 | 1,067.3 |
Additions | 0 | 0 |
Disposals and retirements, intangible assets other than goodwill | 0 | 0 |
Reclassifications | (665.4) | |
New acquisitions | 0 | 0 |
Other movements | 0 | 0 |
Exchange adjustments | (28.4) | 98.7 |
Ending balance | 472.2 | 1,166 |
Brands with an indefinite useful life | Amortisation and impairment | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | (62.6) | (56.8) |
Disposals and retirements, intangible assets other than goodwill | 0 | 0 |
Other movements | 0 | |
Exchange adjustments | (2.8) | 5.8 |
Charge for the year | 0 | 0 |
Impairment charges included within restructuring costs | 0 | |
Ending balance | (59.8) | (62.6) |
Acquired intangibles | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | 288.7 | 273.4 |
Ending balance | 344.2 | 288.7 |
Acquired intangibles | Cost | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | 1,073.2 | 921.4 |
Additions | 0 | 0 |
Disposals and retirements, intangible assets other than goodwill | 15.1 | 33.8 |
Reclassifications | 665.4 | |
New acquisitions | 138.5 | 46.5 |
Other movements | 0 | 9.3 |
Exchange adjustments | (47.5) | 129.8 |
Ending balance | 1,814.5 | 1,073.2 |
Acquired intangibles | Amortisation and impairment | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | (784.5) | (648) |
Disposals and retirements, intangible assets other than goodwill | (15.1) | (33.6) |
Other movements | 0 | |
Exchange adjustments | (27) | 108.2 |
Charge for the year | 727.9 | 61.9 |
Impairment charges included within restructuring costs | 0 | |
Ending balance | (1,470.3) | (784.5) |
Other | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | 59.8 | 75.6 |
Ending balance | 93.3 | 59.8 |
Other | Cost | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | 280.5 | 288.1 |
Additions | 40 | 14.9 |
Disposals and retirements, intangible assets other than goodwill | 51.8 | 59.2 |
Reclassifications | 0 | |
New acquisitions | 2.9 | 1.2 |
Other movements | 17 | 0.8 |
Exchange adjustments | (9.4) | 34.7 |
Ending balance | 279.2 | 280.5 |
Other | Amortisation and impairment | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | (220.7) | (212.5) |
Disposals and retirements, intangible assets other than goodwill | (51.5) | (59.4) |
Other movements | (0.7) | |
Exchange adjustments | (7.4) | 16.7 |
Charge for the year | 24.8 | 21.9 |
Impairment charges included within restructuring costs | 29 | |
Ending balance | £ (185.9) | £ (220.7) |
Intangible Assets - Cash-genera
Intangible Assets - Cash-generating Units with Significant Goodwill (Detail) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of information for cash-generating units [line items] | |||
Goodwill | £ 8,388.9 | £ 8,453.4 | £ 7,612.3 |
Brands with an indefinite useful life | 412.4 | 1,103.4 | |
GroupM | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 3,254.9 | 3,178.3 | |
Brands with an indefinite useful life | 0 | 0 | |
Wunderman Thompson | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 1,165 | 1,210.8 | |
Brands with an indefinite useful life | 0 | 442 | |
VMLY&R | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 814.6 | 776 | |
Brands with an indefinite useful life | 0 | 207.6 | |
Ogilvy | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 809.3 | 849.8 | |
Brands with an indefinite useful life | 213.2 | 222.8 | |
BCW | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 618.8 | 646 | |
Brands with an indefinite useful life | 112.7 | 140.5 | |
AKQA Group | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 600.1 | 628.7 | |
Brands with an indefinite useful life | 0 | 0 | |
FGS Global | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 452.1 | 451.8 | |
Brands with an indefinite useful life | 0 | 0 | |
Hill & Knowlton | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 141.7 | 145.7 | |
Brands with an indefinite useful life | 33.2 | 34.8 | |
Landor Group | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 115 | 106.5 | |
Brands with an indefinite useful life | 53.3 | 55.7 | |
Other | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 417.4 | 459.8 | |
Brands with an indefinite useful life | £ 0 | £ 0 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - GBP (£) £ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about intangible assets [line items] | ||||
Other intangible assets | £ 849.9 | £ 849.9 | £ 1,451.9 | £ 1,359.5 |
Amortisation and impairment of acquired intangible assets | 727.9 | 61.9 | 97.8 | |
Goodwill impairment | 63.6 | £ 37.9 | 1.8 | |
Global Integrated Agencies | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 40.3 | |||
Specialist Agencies | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | £ 23.3 | |||
First Step | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Assumed annual long-term growth rate | 0% | 0% | 0% | |
Discount rate applied to cash flow projections | 14.70% | 14.70% | 15.50% | |
Range of Pre-tax Discount Rates for Global Cash Generating Units | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Discount rate applied to cash flow projections | 13.70% | 13.70% | 14.50% | |
Range of Pre-tax Discount Rates for Geographic Regions | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Discount rate applied to cash flow projections | 10,000,000,000% | 10,000,000,000% | ||
Second Step | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Assumed annual long-term growth rate | 2% | 2% | 2% | |
Management forecasts for a projection period | five years | |||
Bottom of Range | Range of Pre-tax Discount Rates for Geographic Regions | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Discount rate applied to cash flow projections | 12.60% | 12.60% | 14% | |
Top of Range | Range of Pre-tax Discount Rates for Geographic Regions | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Discount rate applied to cash flow projections | 28.40% | 28.40% | 22.60% | |
Brand names | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Other intangible assets | £ 134.6 | £ 134.6 | £ 142.3 | |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 650.1 | 1.4 | £ 47.9 | |
Customer-related intangibles | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Other intangible assets | 108.2 | 108.2 | 120.3 | |
Other acquired intangible assets | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Other intangible assets | 101.4 | £ 101.4 | £ 26.1 | |
Wunderman Thompson | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Amortisation and impairment of acquired intangible assets | 430.8 | |||
VMLY&R | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Amortisation and impairment of acquired intangible assets | £ 202.3 |
Property, plant and equipment -
Property, plant and equipment - Summary of Property, Plant and Equipment (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | £ 1,000.7 | £ 896.4 | |
Charge for the year | 165.1 | 166.9 | £ 151.2 |
Impairment charges included within restructuring costs | 55.8 | ||
Ending balance | 828.5 | 1,000.7 | 896.4 |
Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 1,922.9 | 1,720.9 | |
Additions | 177.2 | 208.4 | |
New acquisitions | 0.8 | 1.3 | |
Disposals | (302.5) | (182.6) | |
Exchange adjustments | 181.9 | (174.9) | |
Ending balance | 1,616.5 | 1,922.9 | 1,720.9 |
Depreciation and impairment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (922.2) | (824.5) | |
Charge for the year | 165.1 | 166.9 | |
Impairment charges included within restructuring costs | 55.8 | 9.8 | |
Disposals | 287.6 | 173 | |
Exchange adjustments | (67.5) | 94 | |
Ending balance | (788) | (922.2) | (824.5) |
Land | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 40 | 43.2 | |
Ending balance | 11.9 | 40 | 43.2 |
Land | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 40 | 43.2 | |
Additions | 3.5 | 13.8 | |
New acquisitions | 0 | 0 | |
Disposals | 0 | (0.1) | |
Exchange adjustments | 31.6 | 16.9 | |
Ending balance | 11.9 | 40 | 43.2 |
Land | Depreciation and impairment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 0 | 0 | |
Charge for the year | 0 | 0 | |
Impairment charges included within restructuring costs | 0 | 0 | |
Disposals | 0 | 0 | |
Exchange adjustments | 0 | 0 | |
Ending balance | 0 | 0 | 0 |
Freehold buildings | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 90.5 | 58.7 | |
Ending balance | 31.7 | 90.5 | 58.7 |
Freehold buildings | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 92.5 | 61.4 | |
Additions | 3.3 | 0.1 | |
New acquisitions | 0 | 0 | |
Disposals | 0 | (8.3) | |
Exchange adjustments | 61.5 | (39.3) | |
Ending balance | 34.3 | 92.5 | 61.4 |
Freehold buildings | Depreciation and impairment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (2) | (2.7) | |
Charge for the year | 1 | 0.7 | |
Impairment charges included within restructuring costs | 0 | 0 | |
Disposals | 0.2 | 1.7 | |
Exchange adjustments | (0.2) | 0.3 | |
Ending balance | (2.6) | (2) | (2.7) |
Leasehold buildings | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 646.5 | 605.4 | |
Ending balance | 579.9 | 646.5 | 605.4 |
Leasehold buildings | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 1,178.9 | 1,075 | |
Additions | 88.3 | 75.8 | |
New acquisitions | 0.8 | 0.5 | |
Disposals | (155.9) | (62.1) | |
Exchange adjustments | 51 | (89.7) | |
Ending balance | 1,061.1 | 1,178.9 | 1,075 |
Leasehold buildings | Depreciation and impairment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (532.4) | (469.6) | |
Charge for the year | 70.5 | 74 | |
Impairment charges included within restructuring costs | 52.2 | 9.1 | |
Disposals | 144.9 | 63.5 | |
Exchange adjustments | (29) | 43.2 | |
Ending balance | (481.2) | (532.4) | (469.6) |
Fixtures, fittings and equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 85 | 77.6 | |
Ending balance | 74.6 | 85 | 77.6 |
Fixtures, fittings and equipment | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 164.8 | 149.5 | |
Additions | 17.1 | 32.1 | |
New acquisitions | 0 | 0.2 | |
Disposals | (51) | (40) | |
Exchange adjustments | 11.5 | (23) | |
Ending balance | 119.4 | 164.8 | 149.5 |
Fixtures, fittings and equipment | Depreciation and impairment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (79.8) | (71.9) | |
Charge for the year | 24.9 | 26.5 | |
Impairment charges included within restructuring costs | 2.7 | 0.6 | |
Disposals | 48.4 | 36.7 | |
Exchange adjustments | (14.2) | 17.5 | |
Ending balance | (44.8) | (79.8) | (71.9) |
Computer equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 138.7 | 111.5 | |
Ending balance | 130.4 | 138.7 | 111.5 |
Computer equipment | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 446.7 | 391.8 | |
Additions | 65 | 86.6 | |
New acquisitions | 0 | 0.6 | |
Disposals | (95.6) | (72.1) | |
Exchange adjustments | 26.3 | (39.8) | |
Ending balance | 389.8 | 446.7 | 391.8 |
Computer equipment | Depreciation and impairment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (308) | (280.3) | |
Charge for the year | 68.7 | 65.7 | |
Impairment charges included within restructuring costs | 0.9 | 0.1 | |
Disposals | 94.1 | 71.1 | |
Exchange adjustments | (24.1) | 33 | |
Ending balance | £ (259.4) | £ (308) | £ (280.3) |
Property, plant and equipment_2
Property, plant and equipment - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capital commitments contracted | £ 38.4 | £ 128.2 |
Interests in associates, join_3
Interests in associates, joint ventures and other investments - Movements in Associates, Joint Ventures and Other Investments (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movements in interests in associates and joint ventures | |||
Beginning balance | £ 305.1 | £ 412.9 | |
Additions | 39.4 | 4.4 | |
Loss from associates - after interest and tax | 25.1 | (60.4) | |
Share of other comprehensive income of associate undertakings | (0.9) | 51.2 | £ 13.5 |
Dividends | (30.4) | (37.6) | |
Other movements | (12.5) | 2.9 | |
Exchange adjustments | (19.3) | 17.1 | |
Disposals | (5.4) | (9.6) | |
Reclassification from subsidiaries | (5.9) | ||
Reclassification from associates to other investments | (22.5) | ||
Amortisation of other intangible assets | (0.2) | ||
Impairment charges | (14.6) | (47.2) | |
Ending balance | 286.5 | 305.1 | 412.9 |
Movements in interests in other investments | |||
Beginning balance | 369.8 | 318.3 | |
Additions | 2.5 | 5.1 | |
Disposals | (10.4) | (16) | |
Reclassification from associates to other investments | 61.6 | ||
Revaluation of other investments through profit or loss | (26.2) | 23.1 | |
Revaluation of other investments through other comprehensive income | (3) | (22.3) | |
Ending balance | £ 332.7 | £ 369.8 | £ 318.3 |
Interests in associates, join_4
Interests in associates, joint ventures and other investments - Summary of Aggregate Financial Performance of Associates and Joint Ventures (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of principal associates and joint ventures [line items] | |||
Share of other comprehensive (loss)/ earnings of associate undertakings | £ (0.9) | £ 51.2 | £ 13.5 |
Associates and Joint Ventures | |||
Disclosure of principal associates and joint ventures [line items] | |||
Share of results of associate undertakings | 70.2 | (60.4) | 23.8 |
Share of other comprehensive (loss)/ earnings of associate undertakings | (0.9) | 51.2 | 13.5 |
Share of total comprehensive earnings/(loss) of associate undertakings | £ 69.3 | £ (9.2) | £ 37.3 |
Interests in associates, join_5
Interests in associates, joint ventures and other investments - Additional Information (Details) - GBP (£) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of principal associates and joint ventures [line items] | |||
Interests in associates and joint ventures | £ 286,500,000 | £ 305,100,000 | £ 412,900,000 |
Kantar US | |||
Disclosure of principal associates and joint ventures [line items] | |||
Cumulative share of unrecognised losses | 137,900,000 | 29,500,000 | |
ROW Chain | |||
Disclosure of principal associates and joint ventures [line items] | |||
Cumulative share of unrecognised losses | 30,100,000 | 33,800,000 | |
Kantar | |||
Disclosure of principal associates and joint ventures [line items] | |||
Interests in associates and joint ventures | 0 | 0 | 61,200,000 |
Imagina Spain | |||
Disclosure of principal associates and joint ventures [line items] | |||
Cumulative share of unrecognised losses | 23,000,000 | ||
Market value of equity interests | £ 0 | ||
Associates and Other Investments | |||
Disclosure of principal associates and joint ventures [line items] | |||
Capital commitments contracted | £ 2,200,000 | £ 3,200,000 |
Deferred tax - Analysis of Defe
Deferred tax - Analysis of Deferred Tax Balances for Financial Reporting Purposes (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | ||
Deferred tax assets gross | £ 684.9 | £ 734.2 |
Deferred tax liabilities gross | (539) | (762.9) |
Net deferred tax assets | 145.9 | |
Net deferred tax liabilities | (28.7) | |
Gross of balances arising from a single transaction | (94) | (145.4) |
Gross of balances arising from a single transaction | 94 | 145.4 |
Gross of balances arising from a single transaction | 0 | 0 |
Gross balances before offset within countries | 590.9 | 588.8 |
Gross balances before offset within countries | (445) | (617.5) |
Gross balances before offset within countries | 145.9 | (28.7) |
Deferred tax assets, offset | (266.5) | (266.7) |
Deferred tax liabilities, offset | 266.5 | 266.7 |
Offset, net | 0 | 0 |
Deferred tax assets | 324.4 | 322.1 |
Deferred tax liabilities | £ (178.5) | £ (350.8) |
Deferred tax - Movements of Maj
Deferred tax - Movements of Major Gross Deferred Tax Assets (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | £ 322.1 | |
Ending balance | 324.4 | £ 322.1 |
Gross deferred tax assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 588.8 | 565 |
Acquisition of subsidiaries | 0 | 1.1 |
(Charge)/credit to income | 25.8 | (35) |
Charge to other comprehensive income | 1.5 | (7) |
Charge to equity | (0.3) | (15.5) |
Exchange differences and other movements | (24.9) | 80.2 |
Ending balance | 590.9 | 588.8 |
Gross deferred tax assets | Deferred compensation | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 74.3 | 108.5 |
Acquisition of subsidiaries | 0 | 0 |
(Charge)/credit to income | (6) | (38.7) |
Charge to other comprehensive income | 0 | 0 |
Charge to equity | 0 | 0 |
Exchange differences and other movements | (3.2) | 4.5 |
Ending balance | 65.1 | 74.3 |
Gross deferred tax assets | Accounting provisions and accruals | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 120.1 | 106.2 |
Acquisition of subsidiaries | 0 | 0 |
(Charge)/credit to income | 13.8 | 3.3 |
Charge to other comprehensive income | 0 | 0 |
Charge to equity | 0 | 0 |
Exchange differences and other movements | (2.2) | 10.6 |
Ending balance | 131.7 | 120.1 |
Gross deferred tax assets | Retirement benefit obligations | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 48 | 53.4 |
Acquisition of subsidiaries | 0 | 0 |
(Charge)/credit to income | 2.8 | (2.9) |
Charge to other comprehensive income | 1.5 | (7) |
Charge to equity | 0 | 0 |
Exchange differences and other movements | (2.6) | 4.5 |
Ending balance | 49.7 | 48 |
Gross deferred tax assets | Plant and equipment | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 47.9 | 15 |
Acquisition of subsidiaries | 0 | 0 |
(Charge)/credit to income | (11.8) | (1) |
Charge to other comprehensive income | 0 | 0 |
Charge to equity | 0 | 0 |
Exchange differences and other movements | (0.3) | 33.9 |
Ending balance | 35.8 | 47.9 |
Gross deferred tax assets | Property | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 53.7 | 53 |
Acquisition of subsidiaries | 0 | 0 |
(Charge)/credit to income | (5.7) | (9) |
Charge to other comprehensive income | 0 | 0 |
Charge to equity | 0 | 0 |
Exchange differences and other movements | 8.4 | 9.7 |
Ending balance | 56.4 | 53.7 |
Gross deferred tax assets | Tax losses and credits | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 122.5 | 110.5 |
Acquisition of subsidiaries | 0 | 0 |
(Charge)/credit to income | (11.5) | 5 |
Charge to other comprehensive income | 0 | 0 |
Charge to equity | 0 | 0 |
Exchange differences and other movements | (6.8) | 7 |
Ending balance | 104.2 | 122.5 |
Gross deferred tax assets | Share- based payments | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 32.3 | 43.5 |
Acquisition of subsidiaries | 0 | 0 |
(Charge)/credit to income | 3.7 | 1.3 |
Charge to other comprehensive income | 0 | 0 |
Charge to equity | (0.3) | (15.5) |
Exchange differences and other movements | (0.7) | 3 |
Ending balance | 35 | 32.3 |
Gross deferred tax assets | Restructuring provisions | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 84.6 | 61.1 |
Acquisition of subsidiaries | 0 | 0 |
(Charge)/credit to income | 38.7 | 21.2 |
Charge to other comprehensive income | 0 | 0 |
Charge to equity | 0 | 0 |
Exchange differences and other movements | (15.7) | 2.3 |
Ending balance | 107.6 | 84.6 |
Gross deferred tax assets | Other temporary differences | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 5.4 | 13.8 |
Acquisition of subsidiaries | 0 | 1.1 |
(Charge)/credit to income | 1.8 | (14.2) |
Charge to other comprehensive income | 0 | 0 |
Charge to equity | 0 | 0 |
Exchange differences and other movements | (1.8) | 4.7 |
Ending balance | £ 5.4 | £ 5.4 |
Deferred tax - Movements of Gro
Deferred tax - Movements of Gross Deferred Tax Liabilities (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | £ 350.8 | |
Ending balance | 178.5 | £ 350.8 |
Gross deferred tax liabilities | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 617.5 | 536 |
Acquisition of subsidiaries | 35 | 15.1 |
(Credit)/charge to income | (172.3) | (20.9) |
Charge to other comprehensive income | (0.2) | 0.4 |
Exchange differences and other movements | (35) | 86.9 |
Ending balance | 445 | 617.5 |
Gross deferred tax liabilities | Brands and other intangibles | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 352.6 | 325.1 |
Acquisition of subsidiaries | 35 | 15.1 |
(Credit)/charge to income | (173.7) | (12.4) |
Charge to other comprehensive income | 0 | 0 |
Exchange differences and other movements | (21.2) | 24.8 |
Ending balance | 192.7 | 352.6 |
Gross deferred tax liabilities | Associate earnings | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 36.5 | 36.8 |
Acquisition of subsidiaries | 0 | 0 |
(Credit)/charge to income | (15.6) | (3.5) |
Charge to other comprehensive income | 0 | 0 |
Exchange differences and other movements | (1.1) | 3.2 |
Ending balance | 19.8 | 36.5 |
Gross deferred tax liabilities | Goodwill | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 173.4 | 133.2 |
Acquisition of subsidiaries | 0 | 0 |
(Credit)/charge to income | 18.4 | 19.7 |
Charge to other comprehensive income | 0 | 0 |
Exchange differences and other movements | (10.8) | 20.5 |
Ending balance | 181 | 173.4 |
Gross deferred tax liabilities | Plant and equipment | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 23 | 0 |
Acquisition of subsidiaries | 0 | 0 |
(Credit)/charge to income | 0.3 | (14.2) |
Charge to other comprehensive income | 0 | 0 |
Exchange differences and other movements | (1.1) | 37.2 |
Ending balance | 22.2 | 23 |
Gross deferred tax liabilities | Other temporary differences | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 32 | 40.9 |
Acquisition of subsidiaries | 0 | 0 |
(Credit)/charge to income | (1.7) | (10.5) |
Charge to other comprehensive income | (0.2) | 0.4 |
Exchange differences and other movements | (0.8) | 1.2 |
Ending balance | £ 29.3 | £ 32 |
Deferred tax - Additional Infor
Deferred tax - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
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 | £ 10,321 | £ 7,667.4 |
Gross tax losses and other temporary differences, deferred tax assets that have been recognised | 2,399.4 | 2,259.7 |
Unrecognised temporary differences | 7,921.6 | 5,407.7 |
Losses carried forward | 7,712.8 | 5,138.1 |
Temporary differences, deferred tax liabilities that have not been recognised | 1,355.1 | 1,346.1 |
Expires Within One To Ten Years | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Losses carried forward | £ 92 | £ 60.3 |
Bottom of Range | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognised temporary differences, period | 1 year | |
Top of Range | ||
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 (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Trade and other receivables [abstract] | ||
Trade receivables (net of loss allowance) | £ 7,055 | £ 7,403.9 |
Unbilled costs | 273.6 | 352.4 |
VAT and sales taxes recoverable | 370.7 | 448.1 |
Prepayments | 239 | 236.6 |
Fair value of derivatives | 1.6 | 5.1 |
Other debtors | 520.7 | 585.3 |
Trade and other receivables | £ 8,460.6 | £ 9,031.4 |
Trade and other receivables - A
Trade and other receivables - Ageing of Trade Receivables and Other Financial Assets (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of financial assets [Line items] | ||
Financial assets | £ 10,719.7 | £ 11,484.2 |
Trade receivables | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 7,055 | £ 7,403.9 |
Expected credit loss rate | 0.60% | 1% |
Trade receivables | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 7,098.9 | £ 7,475.4 |
Trade receivables | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (43.9) | (71.5) |
Accrued income | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 3,150.6 | £ 3,468.3 |
Expected credit loss rate | 0.50% | 0.50% |
Accrued income | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 3,165.6 | £ 3,485.6 |
Accrued income | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (15) | (17.3) |
Other financial assets | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 514.1 | 612 |
0-30 days | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 1,193.2 | 1,335.4 |
0-30 days | Trade receivables | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 611.6 | £ 700.6 |
Expected credit loss rate | 0.20% | 0.80% |
0-30 days | Trade receivables | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 612.7 | £ 706.4 |
0-30 days | Trade receivables | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (1.1) | (5.8) |
0-30 days | Accrued income | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 547.8 | £ 603.6 |
Expected credit loss rate | 0.10% | 0% |
0-30 days | Accrued income | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 548.3 | £ 603.8 |
0-30 days | Accrued income | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (0.5) | (0.2) |
0-30 days | Other financial assets | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 33.8 | 31.2 |
31-90 days | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 531.9 | 697 |
31-90 days | Trade receivables | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 182.1 | £ 240.5 |
Expected credit loss rate | 0.50% | 2.70% |
31-90 days | Trade receivables | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 183 | £ 247.1 |
31-90 days | Trade receivables | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (0.9) | (6.6) |
31-90 days | Accrued income | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 335.4 | £ 450.4 |
Expected credit loss rate | 0.40% | 0% |
31-90 days | Accrued income | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 336.7 | £ 450.5 |
31-90 days | Accrued income | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (1.3) | (0.1) |
31-90 days | Other financial assets | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 14.4 | 6.1 |
91-180 days | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 288.2 | 421.1 |
91-180 days | Trade receivables | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 50.1 | £ 60.2 |
Expected credit loss rate | 4.90% | 9.90% |
91-180 days | Trade receivables | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 52.7 | £ 66.8 |
91-180 days | Trade receivables | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (2.6) | (6.6) |
91-180 days | Accrued income | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 231.7 | £ 359.9 |
Expected credit loss rate | 5.20% | 4.50% |
91-180 days | Accrued income | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 244.5 | £ 376.8 |
91-180 days | Accrued income | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (12.8) | (16.9) |
91-180 days | Other financial assets | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 6.4 | 1 |
181 days- 1 year | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 51.4 | 43.9 |
181 days- 1 year | Trade receivables | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 20.3 | £ 10.2 |
Expected credit loss rate | 33.70% | 56.60% |
181 days- 1 year | Trade receivables | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 30.6 | £ 23.5 |
181 days- 1 year | Trade receivables | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (10.3) | (13.3) |
181 days- 1 year | Accrued income | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 13.9 | £ 27.5 |
Expected credit loss rate | 0.70% | 0% |
181 days- 1 year | Accrued income | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 14 | £ 27.5 |
181 days- 1 year | Accrued income | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (0.1) | 0 |
181 days- 1 year | Other financial assets | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 17.2 | 6.2 |
Greater than 1 year | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 48.4 | 36.2 |
Greater than 1 year | Trade receivables | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 19.3 | £ 7.5 |
Expected credit loss rate | 58.80% | 83.40% |
Greater than 1 year | Trade receivables | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 46.9 | £ 45.1 |
Greater than 1 year | Trade receivables | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (27.6) | (37.6) |
Greater than 1 year | Accrued income | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 0 | 0 |
Greater than 1 year | Accrued income | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 0 | 0 |
Greater than 1 year | Accrued income | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 0 | 0 |
Greater than 1 year | Other financial assets | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 29.1 | 28.7 |
Not past due | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 8,606.6 | 8,950.6 |
Not past due | Trade receivables | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 6,171.6 | £ 6,384.9 |
Expected credit loss rate | 0% | 0% |
Not past due | Trade receivables | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 6,173 | £ 6,386.5 |
Not past due | Trade receivables | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (1.4) | (1.6) |
Not past due | Accrued income | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 2,021.8 | £ 2,026.9 |
Expected credit loss rate | 0% | 0% |
Not past due | Accrued income | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 2,022.1 | £ 2,027 |
Not past due | Accrued income | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (0.3) | (0.1) |
Not past due | Other financial assets | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 413.2 | £ 538.8 |
Trade and other receivables -_2
Trade and other receivables - Summary of Trade and Other Receivables, Amounts Falling Due After More Than One Year (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Trade and other receivables [abstract] | ||
Prepayments | £ 2 | £ 3.9 |
Fair value of derivatives | 32.3 | 0.6 |
Other debtors | 174.9 | 214.1 |
Trade and other receivables | £ 209.2 | £ 218.6 |
Trade and other receivables -_3
Trade and other receivables - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Trade and other receivables [abstract] | |||
Plans in surplus | £ 13.7 | £ 15.4 | £ 30.1 |
Allowance for bad and doubtful debts as a percentage of gross trade accounts receivables | 0.60% | 1% | 1.10% |
Trade and other receivables - B
Trade and other receivables - Bad Debt Provisions (Details) - Trade receivables - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
At beginning of year | £ 71.5 | £ 70.5 |
New acquisitions | 0.6 | 0 |
Charged to the income statement | 14.9 | 29.1 |
Released to the income statement | (22.2) | (8.4) |
Exchange adjustments | (5.3) | 5.1 |
Utilisations and other movements | (15.6) | (24.8) |
At end of year | £ 43.9 | £ 71.5 |
Trade and other payables - Summ
Trade and other payables - Summary of Trade and Other Payables, Amounts Falling Due within One Year (Details) - GBP (£) | Dec. 31, 2023 | Dec. 31, 2022 |
Trade and other current payables [abstract] | ||
Trade payables | £ 10,825,700,000 | £ 11,182,300,000 |
Payments due to vendors (earnout agreements) | 73,300,000 | 62,000,000 |
Liabilities in respect of put option agreements with vendors | 13,600,000 | 18,800,000 |
Fair value of derivatives | 1,800,000 | 58,000,000 |
Other creditors and accruals | 2,408,700,000 | 2,914,800,000 |
Total | £ 13,323,100,000 | £ 14,235,900,000 |
Trade and other payables_ amo_5
Trade and other payables: amounts falling due within one year - Narrative (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Liabilities in respect of put option agreements with vendors | £ 13.6 | £ 18.8 |
Level 3 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Liabilities in respect of put option agreements with vendors | £ 12.3 |
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, 2023 | Dec. 31, 2022 |
Trade and other non-current payables [abstract] | ||
Payments due to vendors (earnout agreements) | £ 125.4 | £ 98.1 |
Liabilities in respect of put option agreements with vendors | 90 | 323.3 |
Fair value of derivatives | 1.2 | 0 |
Other creditors and accruals | 66.2 | 69.5 |
Trade and other payables | £ 282.8 | £ 490.9 |
Trade and Other Payables - Addi
Trade and Other Payables - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Liabilities in respect of put option agreements with vendors | £ 90 | £ 323.3 |
Level 3 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Liabilities in respect of put option agreements with vendors | £ 82.4 |
Trade and other payables - Paym
Trade and other payables - Payments Due to Vendors (Detail) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Payments due to vendors, Current | £ 73.3 | £ 62 |
Payments due to vendors, Non-current | 125.4 | 98.1 |
Payments due to vendors | 198.7 | 160.1 |
Within one year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Payments due to vendors, Current | 73.3 | 62 |
Between one and two years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Payments due to vendors, Non-current | 54.1 | 19.5 |
Between two and three years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Payments due to vendors, Non-current | 70.9 | 27.6 |
Between three and four years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Payments due to vendors, Non-current | 0.4 | 28.6 |
Between four and five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Payments due to vendors, Non-current | £ 0 | £ 22.4 |
Trade and other payables_ amo_6
Trade and other payables: amounts falling due after more than one year - Payment Due to Put Options (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Liabilities of put option agreements with vendors | £ 103.6 | £ 342.1 |
Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Liabilities of put option agreements with vendors | 13.6 | 18.8 |
Between one and two years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Liabilities of put option agreements with vendors | 24 | 5.2 |
Between two and three years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Liabilities of put option agreements with vendors | 38.6 | 76.6 |
Between three and four years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Liabilities of put option agreements with vendors | 9.8 | 99.2 |
Between four and five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Liabilities of put option agreements with vendors | 6.2 | 74.8 |
Over five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Liabilities of put option agreements with vendors | £ 11.4 | £ 67.5 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of bank overdraft bonds and bank loans [abstract] | |||
Bank overdrafts | £ 358.2 | £ 505.7 | £ 342.3 |
Bonds | 588.1 | 663.3 | |
Current borrowings | £ 946.3 | £ 1,169 |
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, 2023 | Dec. 31, 2022 |
Disclosure of bank overdraft bonds and bank loans [abstract] | ||
Bonds | £ 3,775 | £ 3,801.8 |
Bank overdrafts, bonds and ba_5
Bank overdrafts, bonds and bank loans - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Corporate bond | ||
Disclosure of bank overdraft bonds and bank loans [line items] | ||
Fair value of corporate bonds | £ 4,119.5 | £ 4,049.1 |
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, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Current borrowings | £ 946.3 | £ 1,169 |
Corporate bonds, bank loans and overdrafts | 4,721.3 | 4,970.8 |
Within one year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Current borrowings | 946.3 | 1,169 |
Between one and two years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | 432.9 | 618 |
Between two and three years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | 647.2 | 441.5 |
Between three and four years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | 648 | 658.8 |
Between four and five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | 647.5 | 661.1 |
Over five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | £ 1,399.4 | £ 1,422.4 |
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, 2023 | Dec. 31, 2022 | |
Disclosure of Noncurrent Provisions [line items] | ||
Beginning balance | £ 244.6 | £ 268.5 |
Charged to the income statement | 92.2 | 14.5 |
Acquisitions | 0.6 | 1.3 |
Utilised | (41.2) | (50) |
Released to the income statement | (14.8) | (25.4) |
Other movements | 35 | 13 |
Exchange adjustments | (11.9) | 22.7 |
Ending balance | 304.5 | 244.6 |
Acquisitions provisions from revisions to fair value adjustments | 0.6 | 1.3 |
Employee benefits | ||
Disclosure of Noncurrent Provisions [line items] | ||
Beginning balance | 143.1 | 140.3 |
Charged to the income statement | 3.1 | 4.3 |
Acquisitions | 0 | 0 |
Utilised | (21.8) | (32.5) |
Released to the income statement | (2.3) | 0 |
Other movements | 38.1 | 14.6 |
Exchange adjustments | (7.4) | 16.4 |
Ending balance | 152.8 | 143.1 |
Property | ||
Disclosure of Noncurrent Provisions [line items] | ||
Beginning balance | 62.8 | 70.6 |
Charged to the income statement | 64.2 | 8.1 |
Acquisitions | 0 | 0 |
Utilised | (18.7) | (12.8) |
Released to the income statement | (4) | (3.2) |
Other movements | (2.9) | (4.8) |
Exchange adjustments | (2.7) | 4.9 |
Ending balance | 98.7 | 62.8 |
Other | ||
Disclosure of Noncurrent Provisions [line items] | ||
Beginning balance | 38.7 | 57.6 |
Charged to the income statement | 24.9 | 2.1 |
Acquisitions | 0.6 | 1.3 |
Utilised | (0.7) | (4.7) |
Released to the income statement | (8.5) | (22.2) |
Other movements | (0.2) | 3.2 |
Exchange adjustments | (1.8) | 1.4 |
Ending balance | £ 53 | £ 38.7 |
Share-based payments - Charges
Share-based payments - Charges for Share-based Incentive Plans (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of share based payments [abstract] | |||
Share-based payments | £ 140.1 | £ 122 | £ 99.6 |
Share-based payments - Addition
Share-based payments - Additional Information (Details) £ / shares in Units, £ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 GBP (£) shares ADRs performance_criteria number_of_employee £ / shares | Dec. 31, 2023 GBP (£) shares ADRs number_of_employee $ / shares | Dec. 31, 2022 GBP (£) £ / shares | Dec. 31, 2022 GBP (£) $ / shares | Dec. 31, 2021 GBP (£) £ / shares | Dec. 31, 2021 GBP (£) $ / shares | |
Ordinary shares | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Weighted average share price (pound per share) | £ / shares | £ 8.41 | £ 9.13 | £ 9.64 | |||
American depository receipts | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Weighted average share price (pound per share) | $ / shares | $ 52.31 | $ 56.80 | $ 66.44 | |||
Share purchase options | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Unrecognised compensation cost | £ 10.1 | £ 11.1 | ||||
Unrecognised compensation cost related to share options, weighted average period | 19 months | 20 months | ||||
Restricted stock plans | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Unrecognised compensation cost | £ 179.9 | £ 200.7 | ||||
Fair value of shares vested | £ 81.6 | $ 81.6 | £ 65.4 | $ 65.4 | £ 64.1 | $ 64.1 |
Executive Performance Share Plan (EPSP) | Bottom of Range | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Vesting period | 3 years | |||||
Executive Performance Share Plan (EPSP) | Top of Range | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Vesting period | 5 years | |||||
ESPP | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Vesting period | 3 years | |||||
Number of performance conditions | performance_criteria | 3 | |||||
Percentage of total Shareholder Return on vesting period | 20% | |||||
Threshold performance vesting percentage | 100% | |||||
Performance Share Awards (PSA) | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Vesting period | 2 years | |||||
Leadership Share Awards | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Vesting period | 3 years | |||||
Number of key executives participating in restricted stock plans | number_of_employee | 1,900 | 1,900 | ||||
WSOP | Ordinary shares | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Number of ordinary shares under option (in shares) | shares | 15,369,025 | 15,369,025 | ||||
WSOP | American depository receipts | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Number of ADRs under option (in shares) | ADRs | 1,772,400 | 1,772,400 | ||||
WSOP | Bottom of Range | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Threshold period for employment participation in employee stock ownership plan | 2 years | |||||
WWOP | Bottom of Range | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Threshold period for employment participation in employee stock ownership plan | 2 years | |||||
WPP Worldwide Share Ownership Program | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Vesting period | 3 years | |||||
WPP Worldwide Share Ownership Program | Ordinary shares | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Number of ordinary shares under option (in shares) | shares | 650,825 | 650,825 | ||||
WPP Worldwide Share Ownership Program | American depository receipts | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Number of ADRs under option (in shares) | ADRs | 72,695 | 72,695 | ||||
Executive Stock Option Plan | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Vesting period | 3 years | |||||
Employee Stock Option | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Vesting period | 10 years |
Share-based payments - Movement
Share-based payments - Movement on Ordinary Shares Granted for Significant Restricted Stock Plans (Details) shares in Millions | 12 Months Ended | |
Dec. 31, 2023 shares £ / shares | Dec. 31, 2022 shares £ / shares | |
Executive Performance Share Plan (EPSP) | ||
Disclosure of movement on ordinary shares granted for significant restricted stock plans [line items] | ||
Number of shares, Non-vested beginning balance | shares | 20.4 | 16.7 |
Number of shares, Granted | shares | 7.8 | 6.1 |
Number of shares, Forfeited | shares | (1.4) | (2.2) |
Number of shares, Vested | shares | (3.9) | (0.2) |
Number of shares, Non-vested ending balance | shares | 22.9 | 20.4 |
Weighted average fair value, Non-vested beginning balance (pound per share) | £ / shares | £ 9.24 | £ 9 |
Weighted average fair value, Granted (pound per share) | £ / shares | 9.19 | 10.25 |
Weighted average fair value, Forfeited (pound per share) | £ / shares | 9.47 | 10.55 |
Weighted average fair value, Vested (pound per share) | £ / shares | 7.52 | 6.13 |
Weighted average fair value, Non-vested ending balance (pound per share) | £ / shares | £ 9.50 | £ 9.24 |
Performance Share Awards (PSA) | ||
Disclosure of movement on ordinary shares granted for significant restricted stock plans [line items] | ||
Number of shares, Non-vested beginning balance | shares | 4.1 | 3.1 |
Number of shares, Granted | shares | 2.3 | 4 |
Number of shares, Forfeited | shares | (0.5) | (0.2) |
Number of shares, Vested | shares | (0.4) | (2.8) |
Number of shares, Non-vested ending balance | shares | 5.5 | 4.1 |
Weighted average fair value, Non-vested beginning balance (pound per share) | £ / shares | £ 9.52 | £ 6.04 |
Weighted average fair value, Granted (pound per share) | £ / shares | 8.57 | 9.11 |
Weighted average fair value, Forfeited (pound per share) | £ / shares | 9.39 | 7.98 |
Weighted average fair value, Vested (pound per share) | £ / shares | 9.26 | 5.19 |
Weighted average fair value, Non-vested ending balance (pound per share) | £ / shares | £ 9.15 | £ 9.52 |
Leadership Share Awards | ||
Disclosure of movement on ordinary shares granted for significant restricted stock plans [line items] | ||
Number of shares, Non-vested beginning balance | shares | 11.3 | 10.4 |
Number of shares, Granted | shares | 5.9 | 4.9 |
Number of shares, Forfeited | shares | (1) | (1.2) |
Number of shares, Vested | shares | (3.8) | (2.8) |
Number of shares, Non-vested ending balance | shares | 12.4 | 11.3 |
Weighted average fair value, Non-vested beginning balance (pound per share) | £ / shares | £ 8.99 | £ 9.22 |
Weighted average fair value, Granted (pound per share) | £ / shares | 6.54 | 7.87 |
Weighted average fair value, Forfeited (pound per share) | £ / shares | 9.34 | 8.81 |
Weighted average fair value, Vested (pound per share) | £ / shares | 6.73 | 7.95 |
Weighted average fair value, Non-vested ending balance (pound per share) | £ / shares | £ 8.48 | £ 8.99 |
Share-based payments - Options
Share-based payments - Options Granted, WPP Worldwide Share Ownership Program (Details) | 12 Months Ended | |||
Dec. 31, 2023 shares ADRs £ / shares | Dec. 31, 2023 shares ADRs $ / shares | Dec. 31, 2022 shares | Dec. 31, 2021 shares | |
Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 25,245,325 | 25,245,325 | 22,938,050 | 21,664,190 |
WWOP | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 1,014,300 | 1,014,300 | 1,639,025 | 2,049,299 |
WWOP | Exercise price group 1 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 647,575 | 647,575 | ||
Exercise price per share (in pound per share) | £ / shares | £ 13.145 | |||
Exercise dates | 2017-2024 | |||
WWOP | Exercise price group 1 | American depository receipts | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ADRs under option (in shares) | ADRs | 72,695 | 72,695 | ||
Exercise price per (in ADR per share) | $ / shares | $ 102.670 | |||
Exercise dates | 2017-2024 | |||
WWOP | Exercise price group 2 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 3,250 | 3,250 | ||
Exercise price per share (in pound per share) | £ / shares | £ 13.145 | |||
Exercise dates | 2018-2024 |
Share-based payments - Option_2
Share-based payments - Options Granted, WPP Share Option Plan 2015 (Details) | 12 Months Ended | |||
Dec. 31, 2023 ADRs shares £ / shares | Dec. 31, 2023 ADRs shares $ / shares | Dec. 31, 2022 shares | Dec. 31, 2021 shares | |
Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 25,245,325 | 25,245,325 | 22,938,050 | 21,664,190 |
WSOP | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 24,231,025 | 24,231,025 | 21,299,025 | 19,608,150 |
WSOP | American depository receipts | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ADRs under option (in shares) | ADRs | 1,772,400 | 1,772,400 | ||
WSOP | Exercise price group 1 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 3,524,700 | 3,524,700 | ||
Exercise price per share (in pound per share) | £ / shares | £ 7.064 | |||
Exercise dates | 2025-2032 | |||
WSOP | Exercise price group 1 | American depository receipts | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ADRs under option (in shares) | ADRs | 409,115 | 409,115 | ||
Exercise price per (in ADR per share) | $ / shares | $ 44.120 | |||
Exercise dates | 2025-2032 | |||
WSOP | Exercise price group 2 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 1,806,625 | 1,806,625 | ||
Exercise price per share (in pound per share) | £ / shares | £ 7.344 | |||
Exercise dates | 2023-2030 | |||
WSOP | Exercise price group 2 | American depository receipts | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ADRs under option (in shares) | ADRs | 198,380 | 198,380 | ||
Exercise price per (in ADR per share) | $ / shares | $ 48.950 | |||
Exercise dates | 2023-2030 | |||
WSOP | Exercise price group 3 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 9,500 | 9,500 | ||
Exercise price per share (in pound per share) | £ / shares | £ 7.344 | |||
Exercise dates | 2023-2027 | |||
WSOP | Exercise price group 3 | American depository receipts | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ADRs under option (in shares) | ADRs | 318,125 | 318,125 | ||
Exercise price per (in ADR per share) | $ / shares | $ 52.600 | |||
Exercise dates | 2025-2032 | |||
WSOP | Exercise price group 4 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 849,350 | 849,350 | ||
Exercise price per share (in pound per share) | £ / shares | £ 8.372 | |||
Exercise dates | 2021-2028 | |||
WSOP | Exercise price group 4 | American depository receipts | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ADRs under option (in shares) | ADRs | 120,995 | 120,995 | ||
Exercise price per (in ADR per share) | $ / shares | $ 53.140 | |||
Exercise dates | 2021-2028 | |||
WSOP | Exercise price group 5 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 7,000 | 7,000 | ||
Exercise price per share (in pound per share) | £ / shares | £ 8.372 | |||
Exercise dates | 2021-2025 | |||
WSOP | Exercise price group 5 | American depository receipts | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ADRs under option (in shares) | ADRs | 169,790 | 169,790 | ||
Exercise price per (in ADR per share) | $ / shares | $ 62.590 | |||
Exercise dates | 2022-2029 | |||
WSOP | Exercise price group 6 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 125,125 | 125,125 | ||
Exercise price per share (in pound per share) | £ / shares | £ 8.684 | |||
Exercise dates | 2025-2029 | |||
WSOP | Exercise price group 6 | American depository receipts | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ADRs under option (in shares) | ADRs | 255,510 | 255,510 | ||
Exercise price per (in ADR per share) | $ / shares | $ 73.780 | |||
Exercise dates | 2023-2030 | |||
WSOP | Exercise price group 7 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 2,682,975 | 2,682,975 | ||
Exercise price per share (in pound per share) | £ / shares | £ 8.684 | |||
Exercise dates | 2025-2032 | |||
WSOP | Exercise price group 7 | American depository receipts | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ADRs under option (in shares) | ADRs | 117,650 | 117,650 | ||
Exercise price per (in ADR per share) | $ / shares | $ 88.260 | |||
Exercise dates | 2020-2027 | |||
WSOP | Exercise price group 8 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 1,466,100 | 1,466,100 | ||
Exercise price per share (in pound per share) | £ / shares | £ 9.600 | |||
Exercise dates | 2022-2029 | |||
WSOP | Exercise price group 8 | American depository receipts | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ADRs under option (in shares) | ADRs | 100,960 | 100,960 | ||
Exercise price per (in ADR per share) | $ / shares | $ 105.490 | |||
Exercise dates | 2020-2026 | |||
WSOP | Exercise price group 9 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 8,875 | 8,875 | ||
Exercise price per share (in pound per share) | £ / shares | £ 9.600 | |||
Exercise dates | 2022-2026 | |||
WSOP | Exercise price group 9 | American depository receipts | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ADRs under option (in shares) | ADRs | 81,875 | 81,875 | ||
Exercise price per (in ADR per share) | $ / shares | $ 115.940 | |||
Exercise dates | 2018-2025 | |||
WSOP | Exercise price group 10 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 2,237,900 | 2,237,900 | ||
Exercise price per share (in pound per share) | £ / shares | £ 11.065 | |||
Exercise dates | 2023-2030 | |||
WSOP | Exercise price group 11 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 1,040,350 | 1,040,350 | ||
Exercise price per share (in pound per share) | £ / shares | £ 13.085 | |||
Exercise dates | 2020-2027 | |||
WSOP | Exercise price group 12 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 7,625 | 7,625 | ||
Exercise price per share (in pound per share) | £ / shares | £ 13.085 | |||
Exercise dates | 2020-2024 | |||
WSOP | Exercise price group 13 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 4,000 | 4,000 | ||
Exercise price per share (in pound per share) | £ / shares | £ 15.150 | |||
Exercise dates | 2019-2025 | |||
WSOP | Exercise price group 14 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 739,850 | 739,850 | ||
Exercise price per share (in pound per share) | £ / shares | £ 15.150 | |||
Exercise dates | 2018-2025 | |||
WSOP | Exercise price group 15 | Ordinary shares | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Number of ordinary shares under option (in shares) | 859,050 | 859,050 | ||
Exercise price per share (in pound per share) | £ / shares | £ 17.055 | |||
Exercise dates | 2019-2026 |
Share-based payments - Moveme_2
Share-based payments - Movements and Weighted-average Exercise Price for Options Granted (Details) | 12 Months Ended | |||||||
Dec. 31, 2023 shares £ / shares | Dec. 31, 2023 shares $ / shares £ / shares | Dec. 31, 2022 shares £ / shares | Dec. 31, 2022 shares $ / shares £ / shares | Dec. 31, 2021 shares £ / shares | Dec. 31, 2021 shares $ / shares | Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | |
Ordinary shares | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||||
Options granted, Beginning balance (in shares) | 22,938,050 | 22,938,050 | 21,664,190 | 21,664,190 | ||||
Options granted, Granted (in shares) | 5,586,650 | 5,586,650 | 5,224,050 | 5,224,050 | ||||
Exercise of share options (in shares) | (85,900) | (85,900) | (125,700) | (125,700) | (534,800) | (534,800) | ||
Options granted, Forfeited (in shares) | (3,193,475) | (3,193,475) | (3,824,490) | (3,824,490) | ||||
Options granted, Ending balance (in shares) | 25,245,325 | 25,245,325 | 22,938,050 | 22,938,050 | 21,664,190 | 21,664,190 | ||
Options granted, Exercisable (in shares) | 7,386,400 | 7,386,400 | 3,188,675 | 3,188,675 | 7,386,400 | 3,188,675 | ||
Ordinary shares | WPP | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||||
Options granted, Beginning balance (in shares) | 0 | 0 | 6,741 | 6,741 | ||||
Options granted, Granted (in shares) | 0 | 0 | 0 | 0 | ||||
Exercise of share options (in shares) | 0 | 0 | 0 | 0 | ||||
Options granted, Forfeited (in shares) | 0 | 0 | (6,741) | (6,741) | ||||
Options granted, Ending balance (in shares) | 0 | 0 | 0 | 0 | 6,741 | 6,741 | ||
Options granted, Exercisable (in shares) | 0 | 0 | 0 | 0 | 0 | 0 | ||
Weighted-average exercise price for options, 1 January (in pound per share) | £ / shares | £ 0 | £ 9.355 | ||||||
Weighted-average exercise price for options, Granted (in pound per share) | £ / shares | 0 | 0 | ||||||
Weighted-average exercise price for options, Exercised (in pound per share) | £ / shares | 0 | 0 | ||||||
Weighted-average exercise price for options, Forfeited (in pound per share) | £ / shares | 0 | 9.355 | ||||||
Weighted-average exercise price for options, Outstanding 31 December (in pound per share) | £ / shares | 0 | 0 | £ 9.355 | |||||
Weighted-average exercise price for options, Exercisable (in pound per share) | £ / shares | £ 0 | £ 0 | £ 0 | £ 0 | ||||
Ordinary shares | WWOP | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||||
Options granted, Beginning balance (in shares) | 1,639,025 | 1,639,025 | 2,049,299 | 2,049,299 | ||||
Options granted, Granted (in shares) | 0 | 0 | 0 | 0 | ||||
Exercise of share options (in shares) | 0 | 0 | (2,575) | (2,575) | ||||
Options granted, Forfeited (in shares) | (624,725) | (624,725) | (407,699) | (407,699) | ||||
Options granted, Ending balance (in shares) | 1,014,300 | 1,014,300 | 1,639,025 | 1,639,025 | 2,049,299 | 2,049,299 | ||
Options granted, Exercisable (in shares) | 0 | 0 | 0 | 0 | 0 | 0 | ||
Weighted-average exercise price for options, 1 January (in pound per share) | £ / shares | £ 13.224 | £ 12.923 | ||||||
Weighted-average exercise price for options, Granted (in pound per share) | £ / shares | 0 | 0 | ||||||
Weighted-average exercise price for options, Exercised (in pound per share) | £ / shares | 0 | 8.458 | ||||||
Weighted-average exercise price for options, Forfeited (in pound per share) | £ / shares | 13.432 | 11.565 | ||||||
Weighted-average exercise price for options, Outstanding 31 December (in pound per share) | £ / shares | 13.145 | 13.224 | £ 12.923 | |||||
Weighted-average exercise price for options, Exercisable (in pound per share) | £ / shares | £ 0 | £ 0 | £ 0 | £ 0 | ||||
Ordinary shares | WSOP | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||||
Options granted, Beginning balance (in shares) | 21,299,025 | 21,299,025 | 19,608,150 | 19,608,150 | ||||
Options granted, Granted (in shares) | 5,586,650 | 5,586,650 | 5,224,050 | 5,224,050 | ||||
Exercise of share options (in shares) | (85,900) | (85,900) | (123,125) | (123,125) | ||||
Options granted, Forfeited (in shares) | (2,568,750) | (2,568,750) | (3,410,050) | (3,410,050) | ||||
Options granted, Ending balance (in shares) | 24,231,025 | 24,231,025 | 21,299,025 | 21,299,025 | 19,608,150 | 19,608,150 | ||
Options granted, Exercisable (in shares) | 7,386,400 | 7,386,400 | 3,188,675 | 3,188,675 | 7,386,400 | 3,188,675 | ||
Weighted-average exercise price for options, 1 January (in pound per share) | £ / shares | £ 10.356 | £ 10.854 | ||||||
Weighted-average exercise price for options, Granted (in pound per share) | £ / shares | 0 | 8.684 | ||||||
Weighted-average exercise price for options, Exercised (in pound per share) | £ / shares | 8.350 | 8.357 | ||||||
Weighted-average exercise price for options, Forfeited (in pound per share) | £ / shares | 9.959 | 10.530 | ||||||
Weighted-average exercise price for options, Outstanding 31 December (in pound per share) | £ / shares | 9.652 | 10.356 | £ 10.854 | |||||
Weighted-average exercise price for options, Exercisable (in pound per share) | £ / shares | £ 0 | £ 0 | £ 7.344 | £ 7.344 | ||||
American depository receipts | WWOP | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||||
Weighted-average exercise price for options, 1 January (in dollars per share) | $ / shares | £ 106.379 | £ 101.693 | ||||||
Weighted-average exercise price for options, Granted (in dollars per share) | $ / shares | 0 | 0 | ||||||
Weighted-average exercise price for options, Granted (in dollars per share) | $ / shares | 0 | 0 | ||||||
Weighted-average exercise price for options, Forfeited (in dollars per share) | $ / shares | 109.949 | 85.706 | ||||||
Weighted-average exercise price for options, Outstanding 31 December (in dollars per share) | $ / shares | 102.670 | 106.379 | $ 101.693 | |||||
Weighted-average exercise price for options, Exercisable (in dollars per share) | $ / shares | $ 0 | $ 0 | ||||||
American depository receipts | WSOP | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||||
Weighted-average exercise price for options, 1 January (in dollars per share) | $ / shares | 67.910 | 72.228 | ||||||
Weighted-average exercise price for options, Granted (in dollars per share) | $ / shares | 0 | 52.600 | ||||||
Weighted-average exercise price for options, Granted (in dollars per share) | $ / shares | 48.950 | 53.270 | ||||||
Weighted-average exercise price for options, Forfeited (in dollars per share) | $ / shares | 66.181 | 71.674 | ||||||
Weighted-average exercise price for options, Outstanding 31 December (in dollars per share) | $ / shares | £ 62.587 | £ 67.910 | $ 72.228 | |||||
Weighted-average exercise price for options, Exercisable (in dollars per share) | $ / shares | $ 44.120 | $ 48.950 |
Share-based payments - Range of
Share-based payments - Range of Exercise Prices of Options (Details) - 12 months ended Dec. 31, 2023 | £ / shares | $ / shares |
Ordinary shares | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Weighted average contractual life (Months) | 70 months | |
American depository receipts | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Weighted average contractual life (Months) | 80 months | |
Bottom of Range | Ordinary shares | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price (in pound per share) | £ / shares | £ 7.344 | |
Bottom of Range | American depository receipts | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price (in dollars per share) | $ / shares | $ 44.120 | |
Top of Range | Ordinary shares | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price (in pound per share) | £ / shares | 17.055 | |
Top of Range | American depository receipts | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price (in dollars per share) | $ / shares | 115.940 | |
Weighted average | Ordinary shares | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price (in pound per share) | £ / shares | £ 10.455 | |
Weighted average | American depository receipts | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price (in dollars per share) | $ / shares | $ 64.166 |
Share-based payments - Weighted
Share-based payments - Weighted Average Fair Value of Options Granted and Weighted Average Assumptions (Details) | 12 Months Ended | |||||
Dec. 31, 2023 £ / shares | Dec. 31, 2023 $ / shares | Dec. 31, 2022 £ / shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 £ / shares | Dec. 31, 2021 $ / shares | |
Weighted Average Assumptions [abstract] | ||||||
Fair Value Assumptions Expected Life | 48 months | 48 months | 48 months | 48 months | 48 months | 48 months |
Expected volatility, share options granted | 33% | 33% | 32% | 32% | 34% | 34% |
Expected dividend as percentage, share options granted | 5.60% | 5.60% | 3.90% | 3.90% | 3.40% | 3.40% |
United Kingdom | ||||||
Weighted Average Assumptions [abstract] | ||||||
Risk-free interest rate | 4% | 4% | 2.92% | 2.92% | 0.63% | 0.63% |
United Kingdom | American depository receipts | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Fair value of options | £ / shares | £ 1.310 | £ 1.770 | £ 2.200 | |||
United States | ||||||
Weighted Average Assumptions [abstract] | ||||||
Risk-free interest rate | 4.53% | 4.53% | 4.09% | 4.09% | 1.16% | 1.16% |
United States | American depository receipts | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Fair value of options | $ / shares | $ 8.59 | $ 11.48 | $ 14.89 |
Employee Benefit Obligations -
Employee Benefit Obligations - Pension Costs (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Pension Costs [abstract] | |||
Defined contribution plans | £ 198.1 | £ 191.3 | £ 162.8 |
Defined benefit plans charge to operating profit | 15 | 13.5 | 14.9 |
Pension costs | 213.1 | 204.8 | 177.7 |
Net interest expense on pension plans | 4.3 | 2.2 | 1.8 |
Pension costs, Net | £ 217.4 | £ 207 | £ 179.5 |
Employee Benefit Obligations _2
Employee Benefit Obligations - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of defined benefit plans [line items] | |||
Employer contributions (for funded plans) and benefit payments (for unfunded plans) | £ 19.8 | £ 24 | £ 16.7 |
Employer contributions (for funded plans) and benefit payments (for unfunded plans), expected in 2022 | £ 17 | ||
Current pensioners (at age 65) – male | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assumption of life expectancy | 21 years 9 months 18 days | 22 years 3 months 18 days | |
Current pensioners (at age 65) – female | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assumption of life expectancy | 23 years 7 months 6 days | 24 years | |
Future pensioners (current age 45) – male | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assumption of life expectancy | 23 years 6 months | 24 years | |
Future pensioners (current age 45) – female | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assumption of life expectancy | 25 years 2 months 12 days | 25 years 8 months 12 days |
Employee Benefit Obligations _3
Employee Benefit Obligations - Fair Value of Assets and Assessed Present Value of Liabilities in Pension Plans (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Pension Costs [abstract] | |||
Fair value of assets, Equities | £ 24.2 | £ 26.7 | £ 31.8 |
Fair value of assets, Bonds | 170.2 | 208.8 | 259.7 |
Fair value of assets, Insured annuities | 3 | 149.2 | 222.5 |
Fair value of assets, Property | 1.3 | 1.4 | 1 |
Fair value of assets, Cash | 18.3 | 18.1 | 15.3 |
Fair value of assets, Other | 42 | 26.3 | 21.8 |
Total fair value of assets | 259 | 430.5 | 552.1 |
Defined benefit obligation, at present value | (381.2) | (552.6) | (688.5) |
Surplus (deficit) in plan | (122.2) | (122.1) | (136.4) |
Irrecoverable Surplus | 0 | 0 | (0.2) |
Net liability | (122.2) | (122.1) | (136.6) |
Plans in surplus | 13.7 | 15.4 | 30.1 |
Plans in deficit | £ (135.9) | £ (137.5) | £ (166.7) |
Fair value of assets allocation, Equities | 9.30% | 6.20% | 5.80% |
Fair value of assets allocation, Bonds | 65.70% | 48.50% | 47% |
Fair value of assets allocation, Insured annuities | 1.20% | 34.70% | 40.30% |
Fair value of assets allocation, Property | 0.50% | 0.30% | 0.20% |
Fair value of assets allocation, Cash | 7.10% | 4.20% | 2.80% |
Fair value of assets allocation, Other | 16.20% | 6.10% | 3.90% |
Total fair value of assets allocation | 100% | 100% | 100% |
Employee Benefit Obligations _4
Employee Benefit Obligations - Surplus/(Deficit) in Plans by Region (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) in plan | £ (122.2) | £ (122.1) | £ (136.4) |
United Kingdom | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) in plan | 0.7 | 2.3 | 0.4 |
North America | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) in plan | (29.7) | (37.1) | (28.1) |
Western Continental Europe | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) in plan | (60.1) | (52.6) | (74) |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) in plan | £ (33.1) | £ (34.7) | £ (34.7) |
Employee Benefit Obligations _5
Employee Benefit Obligations - Funded and Unfunded Pension Plans By Region (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) | £ (122.2) | £ (122.1) | £ (136.4) |
Defined benefit obligation, at present value | (381.2) | (552.6) | (688.5) |
United Kingdom | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) | 0.7 | 2.3 | 0.4 |
North America | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) | (29.7) | (37.1) | (28.1) |
Western Continental Europe | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) | (60.1) | (52.6) | (74) |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) | (33.1) | (34.7) | (34.7) |
Funded plans by region | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) | (31.4) | (26.8) | (31) |
Defined benefit obligation, at present value | (290.3) | (457.3) | (583.1) |
Funded plans by region | United Kingdom | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) | 0.7 | 2.3 | 0.4 |
Defined benefit obligation, at present value | (9.2) | (155.5) | (231.9) |
Funded plans by region | North America | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) | 7.4 | 4.1 | 20.1 |
Defined benefit obligation, at present value | (182.9) | (208.5) | (237.9) |
Funded plans by region | Western Continental Europe | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) | (34.1) | (29.1) | (45.1) |
Defined benefit obligation, at present value | (70.6) | (67.9) | (87.6) |
Funded plans by region | Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) | (5.4) | (4.1) | (6.4) |
Defined benefit obligation, at present value | (27.6) | (25.4) | (25.7) |
Unfunded plans by region | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) | (90.8) | (95.3) | (105.4) |
Defined benefit obligation, at present value | (90.9) | (95.3) | (105.4) |
Unfunded plans by region | North America | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) | (37.1) | (41.2) | (48.2) |
Defined benefit obligation, at present value | (37.1) | (41.2) | (48.2) |
Unfunded plans by region | Western Continental Europe | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) | (26) | (23.5) | (28.9) |
Defined benefit obligation, at present value | (26) | (23.5) | (28.9) |
Unfunded plans by region | Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) | (27.7) | (30.6) | (28.3) |
Defined benefit obligation, at present value | £ (27.8) | £ (30.6) | £ (28.3) |
Employee Benefit Obligations _6
Employee Benefit Obligations - Weighted Average Assumptions Used For Actuarial Valuations (Details) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
United Kingdom | ||||
Disclosure of defined benefit plans [line items] | ||||
Discount rate | 4.70% | 5.10% | 1.80% | 1.30% |
Rate of increase in pensions in payment | 2.50% | 4.40% | 4.50% | 4.40% |
Inflation | 3.10% | 3% | 3.20% | 2.80% |
North America | ||||
Disclosure of defined benefit plans [line items] | ||||
Discount rate | 4.90% | 5.20% | 2.60% | 2% |
Rate of increase in salaries | 3% | |||
Western Continental Europe | ||||
Disclosure of defined benefit plans [line items] | ||||
Discount rate | 3.40% | 4.10% | 1.20% | 0.90% |
Rate of increase in pensions in payment | 2% | 2% | 1.80% | 1.80% |
Rate of increase in salaries | 2.50% | 2.50% | 2.30% | 2.20% |
Inflation | 2% | 2% | 1.70% | 1.70% |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe | ||||
Disclosure of defined benefit plans [line items] | ||||
Discount rate | 6.50% | 6.40% | 5.30% | 4.20% |
Rate of increase in salaries | 6.20% | 5.70% | 5.60% | 5.20% |
Inflation | 3.40% | 3.40% | 3.70% | 3.70% |
Employee Benefit Obligations _7
Employee Benefit Obligations - Life Expectancies for Defined Benefit Pension Plans (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current pensioners (at age 65) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 21 years 9 months 18 days | 22 years 3 months 18 days |
Current pensioners (at age 65) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 7 months 6 days | 24 years |
Future pensioners (current age 45) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 6 months | 24 years |
Future pensioners (current age 45) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 25 years 2 months 12 days | 25 years 8 months 12 days |
North America | Current pensioners (at age 65) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 22 years | |
North America | Current pensioners (at age 65) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 4 months 24 days | |
North America | Future pensioners (current age 45) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 4 months 24 days | |
North America | Future pensioners (current age 45) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 24 years 9 months 18 days | |
United Kingdom | Current pensioners (at age 65) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 4 months 24 days | |
United Kingdom | Current pensioners (at age 65) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 24 years 10 months 24 days | |
United Kingdom | Future pensioners (current age 45) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 25 years 4 months 24 days | |
United Kingdom | Future pensioners (current age 45) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 27 years | |
Western Continental Europe | Current pensioners (at age 65) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 21 years 1 month 6 days | |
Western Continental Europe | Current pensioners (at age 65) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 24 years 2 months 12 days | |
Western Continental Europe | Future pensioners (current age 45) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 4 months 24 days | |
Western Continental Europe | Future pensioners (current age 45) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 26 years | |
Other | Current pensioners (at age 65) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 20 years 3 months 18 days | |
Other | Current pensioners (at age 65) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 25 years 1 month 6 days | |
Other | Future pensioners (current age 45) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 20 years 3 months 18 days | |
Other | Future pensioners (current age 45) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 25 years 1 month 6 days |
Employee Benefit Obligations _8
Employee Benefit Obligations - Weighted Average Duration of Defined Benefit Pension Obligations and Distribution of Timing of Benefit Payments (Details) £ in Millions | 12 Months Ended |
Dec. 31, 2023 GBP (£) | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of the defined benefit obligation (years) | 8 years |
within 12 months | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 30.2 |
in 2025 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 28.3 |
in 2026 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 29.2 |
in 2027 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 29 |
in 2028 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 27.6 |
in the next five years | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 144.4 |
North America | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of the defined benefit obligation (years) | 7 years 4 months 24 days |
North America | within 12 months | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 18.5 |
North America | in 2025 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 18.1 |
North America | in 2026 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 17.8 |
North America | in 2027 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 18.7 |
North America | in 2028 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 15.7 |
North America | in the next five years | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 83.7 |
United Kingdom | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of the defined benefit obligation (years) | 6 years 3 months 18 days |
United Kingdom | within 12 months | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 0.7 |
United Kingdom | in 2025 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 0.6 |
United Kingdom | in 2026 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 0.6 |
United Kingdom | in 2027 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 0.5 |
United Kingdom | in 2028 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 0.5 |
United Kingdom | in the next five years | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 1.6 |
Western Continental Europe | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of the defined benefit obligation (years) | 10 years 2 months 12 days |
Western Continental Europe | within 12 months | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 6 |
Western Continental Europe | in 2025 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 6 |
Western Continental Europe | in 2026 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 6.2 |
Western Continental Europe | in 2027 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 6.2 |
Western Continental Europe | in 2028 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 7 |
Western Continental Europe | in the next five years | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 33.2 |
Other | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of the defined benefit obligation (years) | 5 years 10 months 24 days |
Other | within 12 months | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 5 |
Other | in 2025 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 3.6 |
Other | in 2026 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 4.6 |
Other | in 2027 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 3.6 |
Other | in 2028 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 4.4 |
Other | in the next five years | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 25.9 |
Employee Benefit Obligations _9
Employee Benefit Obligations - Sensitivity Analysis of Significant Actuarial Assumptions (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumption, increase in longevity | 1 year | 1 year |
Discount rate | ||
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 | United Kingdom | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ (0.1) | £ (3.6) |
Increase/(decrease) in benefit obligation, due to decrease in assumption | 0.2 | 3.8 |
Discount rate | North America | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | (3.8) | (4.4) |
Increase/(decrease) in benefit obligation, due to decrease in assumption | 3.9 | 4.6 |
Discount rate | Western Continental Europe | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | (2.3) | (2) |
Increase/(decrease) in benefit obligation, due to decrease in assumption | 2.4 | 2.1 |
Discount rate | Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | (0.5) | (0.5) |
Increase/(decrease) in benefit obligation, due to decrease in assumption | £ 0.5 | £ 0.6 |
Rate of increase in salaries | ||
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 | Western Continental Europe | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ 0.6 | £ 0.5 |
Increase/(decrease) in benefit obligation, due to decrease in assumption | (0.6) | (0.5) |
Rate of increase in salaries | Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | 0.4 | 0.5 |
Increase/(decrease) in benefit obligation, due to decrease in assumption | £ (0.5) | £ (0.5) |
Rate of increase in pensions in payment | ||
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 | United Kingdom | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ 0.2 | £ 0.7 |
Increase/(decrease) in benefit obligation, due to decrease in assumption | 0 | (0.6) |
Rate of increase in pensions in payment | Western Continental Europe | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | 1.2 | 1.1 |
Increase/(decrease) in benefit obligation, due to decrease in assumption | (1.2) | (1) |
Life expectancy | United Kingdom | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | 0.7 | 6.8 |
Life expectancy | North America | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | 3.3 | 4.2 |
Life expectancy | Western Continental Europe | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ 3 | £ 2.6 |
Employee Benefit Obligations_10
Employee Benefit Obligations - Pension Expense Charged to Operating Profit, Amounts Charged to Finance Costs and Amounts Recognised in Consolidated Statement of Comprehensive Income (OCI) (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of net defined benefit (liability) asset | |||
Service cost | £ 12.2 | £ 10.4 | £ 12.6 |
Administrative expenses | 2.8 | 3.1 | 2.3 |
Charge to operating profit | 15 | 13.5 | 14.9 |
Net interest expense on pension plans | 4.3 | 2.2 | 1.8 |
Charge to profit before taxation for defined benefit plans | 19.3 | 15.7 | 16.7 |
Actuarial (loss)/gain recognised in OCI | (9.1) | 16.6 | 14.3 |
Post employment pension other comprehensive income | |||
Disclosure of net defined benefit (liability) asset | |||
Return on plan assets (excluding interest income) | 6.5 | (127.6) | (29.3) |
Changes in demographic assumptions underlying the present value of the plan liabilities | (0.5) | 0.6 | (3.6) |
Changes in financial assumptions underlying the present value of the plan liabilities | (13.8) | 143.5 | 31.1 |
Experience (loss)/gain arising on the plan liabilities | (1.3) | (0.1) | 15.7 |
Change in irrecoverable surplus | 0 | 0.2 | 0.4 |
Actuarial (loss)/gain recognised in OCI | £ (9.1) | £ 16.6 | £ 14.3 |
Employee Benefit Obligations_11
Employee Benefit Obligations - Movement in Pension Plan Liabilities (Details) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 GBP (£) defined_benefit_plan | Dec. 31, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | |
Disclosure of net defined benefit (liability) asset | |||
Plan liabilities at beginning of year | £ 122.1 | £ 136.6 | |
Plan liabilities at end of year | £ 122.2 | 122.1 | £ 136.6 |
Number of defined benefit pension plans winded up | defined_benefit_plan | 2 | ||
Full elimination of associated plan assets and plan liabilities | £ 145 | ||
Retirement benefit obligations | |||
Disclosure of net defined benefit (liability) asset | |||
Plan liabilities at beginning of year | 552.6 | 688.5 | 772.7 |
Service cost | 12.2 | 10.4 | 12.6 |
Interest cost | 20.5 | 15.5 | 12 |
Effect of changes in demographic assumptions | 0.5 | (0.6) | 3.6 |
Effect of changes in financial assumptions | 13.8 | (143.5) | (31.1) |
Effect of experience adjustments | 1.3 | 0.1 | (15.7) |
Benefits paid | (37.5) | (52) | (59.5) |
(Gain)/loss due to exchange rate movements | (16.7) | 40.4 | (6.1) |
Settlement payments | (163.2) | (8.7) | (0.3) |
Other | (2.3) | 2.5 | 0.3 |
Plan liabilities at end of year | £ 381.2 | £ 552.6 | £ 688.5 |
Employee Benefit Obligations_12
Employee Benefit Obligations - Movement in Pension Plan Assets (Details) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 GBP (£) defined_benefit_plan | Dec. 31, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | |
Disclosure of net defined benefit (liability) asset | |||
Fair value of plan assets at beginning of year | £ (122.1) | £ (136.6) | |
Employer contributions | 19.8 | 24 | £ 16.7 |
Administrative expenses | (2.8) | (3.1) | (2.3) |
Fair value of plan assets at end of year | £ (122.2) | (122.1) | (136.6) |
Number of defined benefit pension plans winded up | defined_benefit_plan | 2 | ||
Full elimination of associated plan assets and plan liabilities | £ 145 | ||
Plan assets | |||
Disclosure of net defined benefit (liability) asset | |||
Fair value of plan assets at beginning of year | 430.5 | 552.1 | 616.6 |
Interest income on plan assets | 16.2 | 13.3 | 10.2 |
Return on plan assets (excluding interest income) | 6.5 | (127.6) | (29.3) |
Employer contributions | 19.8 | 24 | 16.7 |
Benefits paid | (37.5) | (52) | (59.5) |
(Loss)/gain due to exchange rate movements | (12.4) | 31.5 | (0.6) |
Settlement payments | (163.2) | (8.7) | (0.3) |
Administrative expenses | (2.8) | (3.1) | (1.8) |
Other | 1.9 | 1 | 0.1 |
Fair value of plan assets at end of year | 259 | 430.5 | 552.1 |
Actual return/(loss) on plan assets | £ 22.7 | £ (114.3) | £ (19.1) |
Risk management policies - Addi
Risk management policies - Additional Information (Details) € in Millions, £ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 GBP (£) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | |
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | £ 4,363.1 | £ 4,465.1 | £ 4,441.7 | ||||
Revenue less pass-through cost | 31% | 31% | 31% | ||||
Percentage weakening in net sales | 70% | ||||||
Total committed facilities available | £ 6,352.7 | ||||||
Percentage of trade receivables | 6% | 6% | |||||
Interest rate risk | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Percentage increase in market interest rate | 1% | ||||||
Potential amount of change due to an increase or decrease in risk | £ 18.6 | 19.9 | |||||
Percentage decrease in market interest rate | 1% | ||||||
US dollar borrowings | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | $ | $ 1,874 | $ 1,667 | |||||
US dollar borrowings | Weighted average | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | $ | $ 2,511 | $ 1,667 | |||||
US dollar borrowings | Fixed interest rate | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Percentage of debt | 100% | ||||||
Average interest rate | 4.62% | 4.62% | 4.62% | ||||
Average period of debt | 66 months | ||||||
Sterling Borrowings | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | £ 1,094 | 1,094 | |||||
Sterling Borrowings | Weighted average | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | £ 1,173 | £ 1,094 | |||||
Sterling Borrowings | Fixed interest rate | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Percentage of debt | 100% | ||||||
Average interest rate | 2.97% | 2.97% | 2.97% | ||||
Average period of debt | 130 months | ||||||
Sterling Borrowings | Currency risk | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Percentage weakening of sterling against major currencies | 10% | 10% | 10% | ||||
Percentage increase of sterling against major currencies | 10% | 10% | 10% | ||||
Euro Borrowings | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | € | € 2,100 | € 2,350 | |||||
Euro Borrowings | Weighted average | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | € | € 2,321 | € 2,404 | |||||
Euro Borrowings | Fixed interest rate | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Percentage of debt | 100% | ||||||
Average interest rate | 2.12% | 2.12% | 2.12% | ||||
Average period of debt | 48 months |
Risk management policies - Comm
Risk management policies - Committed Facilities (Details) € in Millions, £ in Millions, $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 GBP (£) | Dec. 31, 2022 GBP (£) | Dec. 31, 2021 GBP (£) |
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 6,352.7 | ||||
Drawn down facilities | 4,389 | ||||
Undrawn committed credit facilities | 1,963.7 | £ 2,069 | £ 1,847.5 | ||
£ bonds £400m (2.875% 2046) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | $ 400 | £ 400 | |||
Average interest rate | 2.875% | 2.875% | 2.875% | ||
Total committed facilities available | £ 400 | ||||
US bond $220m (5.625% 2043) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | $ | $ 220 | ||||
Average interest rate | 5.625% | 5.625% | 5.625% | ||
Total committed facilities available | £ 172.7 | ||||
US bond $93m (5.125% 2042) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | $ | $ 93 | ||||
Average interest rate | 5.125% | 5.125% | 5.125% | ||
Total committed facilities available | £ 72.9 | ||||
£ bonds £250m (3.75% 2032) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | £ 250 | ||||
Average interest rate | 3.75% | 3.75% | 3.75% | ||
Total committed facilities available | £ 250 | ||||
Eurobonds €600m (1.625% 2030) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | € | € 600 | ||||
Average interest rate | 1.625% | 1.625% | 1.625% | ||
Total committed facilities available | £ 520.2 | ||||
Eurobonds €750m (4.125% 2028) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | € | € 750 | ||||
Average interest rate | 4.125% | 4.125% | 4.125% | ||
Total committed facilities available | £ 650.2 | ||||
Eurobonds €750m (2.375% 2027) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | £ 750 | ||||
Average interest rate | 2.375% | 2.375% | 2.375% | ||
Total committed facilities available | £ 650.2 | ||||
Eurobonds €750m (2.25% 2026) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | € | € 750 | ||||
Average interest rate | 2.25% | 2.25% | 2.25% | ||
Total committed facilities available | £ 650.2 | ||||
Bank revolver ($2,500m 2026) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | $ | $ 2,500 | ||||
Total committed facilities available | £ 1,963.7 | ||||
Eurobonds €500m (1.375% 2025) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | € | € 500 | ||||
Average interest rate | 1.375% | 1.375% | 1.375% | ||
Total committed facilities available | £ 433.5 | ||||
US bond $750m (3.75% 2024) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | $ | $ 750 | ||||
Average interest rate | 3.75% | 3.75% | 3.75% | ||
Total committed facilities available | £ 589.1 | ||||
2024 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 589.1 | ||||
Drawn down facilities | 589.1 | ||||
2024 | US bond $750m (3.75% 2024) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 589.1 | ||||
2025 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 433.5 | ||||
Drawn down facilities | 433.5 | ||||
2025 | Eurobonds €500m (1.375% 2025) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 433.5 | ||||
2026 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 2,613.9 | ||||
Drawn down facilities | 650.2 | ||||
2026 | Eurobonds €750m (2.25% 2026) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 650.2 | ||||
2026 | Bank revolver ($2,500m 2026) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 1,963.7 | ||||
2027 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 650.2 | ||||
Drawn down facilities | 650.2 | ||||
2027 | Eurobonds €750m (2.375% 2027) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 650.2 | ||||
2028 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 2,066 | ||||
Drawn down facilities | 2,066 | ||||
2028 | £ bonds £400m (2.875% 2046) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 400 | ||||
2028 | US bond $220m (5.625% 2043) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 172.7 | ||||
2028 | US bond $93m (5.125% 2042) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 72.9 | ||||
2028 | £ bonds £250m (3.75% 2032) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 250 | ||||
2028 | Eurobonds €600m (1.625% 2030) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 520.2 | ||||
2028 | Eurobonds €750m (4.125% 2028) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 650.2 |
Risk management policies - Risk
Risk management policies - Risk Exposure (Details) - Currency risk £ in Millions | 12 Months Ended | |
Dec. 31, 2023 GBP (£) | Dec. 31, 2022 GBP (£) | |
Cash Flow Hedges | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Hedging instrument, liabilities | £ (16.5) | £ (6.6) |
Hedge Ratio | 1 | 1 |
Hedge ineffectiveness (revaluation and retranslation of financial instruments) | £ 2.7 | £ 2.9 |
Weighted average hedged rate for outstanding hedging instruments | 4.40% | 3.20% |
Net Investment Hedges | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Hedge Ratio | 1 | 1 |
Hedge ineffectiveness (revaluation and retranslation of financial instruments) | £ 1.9 | £ 0 |
Weighted average hedged rate for the year (USD/GBP) | 1.2731 | 1.2083 |
Hedging Instruments | Cash Flow Hedges | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Nominal amount of hedging instrument | 1,250 | 1,000 |
Hedge ineffectiveness (revaluation and retranslation of financial instruments) | £ 29.6 | £ (41.4) |
Hedging Instruments | Net Investment Hedges | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Hedging instrument, liabilities | (46.9) | |
Hedging instrument, assets | 48.2 | |
Bond amount | 1,873.9 | 1,666.8 |
Hedge ineffectiveness (revaluation and retranslation of financial instruments) | (110.1) | 141.5 |
Non-Derivative Hedging Instrument | Net Investment Hedges | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Hedging instrument, liabilities | (835) | (879.5) |
Hedged Items | Cash Flow Hedges | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Bond amount | 1,250 | 1,000 |
Change in value of hedged item used to determine hedge effectiveness for outstanding hedging instruments | £ (32.4) | £ 38.5 |
Hedged Items | Net Investment Hedges | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Nominal amount of hedging instrument | 1,873.9 | 1,666.8 |
Change in value of hedged item used to determine hedge effectiveness for outstanding hedging instruments | £ 108.2 | £ (141.5) |
Risk management policies - Summ
Risk management policies - Summary of Currency Risk (Details) - Currency risk - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
US dollar | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Impact on income statement | £ (41) | £ (179.6) |
Impact on equity | (18) | 34.6 |
Euro | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Impact on income statement | (185.8) | 78.9 |
Impact on equity | £ 0 | £ (11.3) |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) € in Millions, £ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 GBP (£) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 GBP (£) | Dec. 31, 2023 EUR (€) | Mar. 31, 2023 GBP (£) | |
Disclosure of detailed information about financial instruments [line items] | ||||||
Cash flow hedges derivative instruments at fair value, net | £ (43.3) | £ 38.5 | ||||
Gains (losses) on financial assets reclassified out of financial assets at fair value through profit or loss recognised in profit or loss | 44.2 | |||||
Retained earnings | (3,488.4) | (3,759.7) | ||||
Gains on ineffectiveness of cash flow hedges recognised in profit or loss | £ 5 | £ 2.7 | ||||
Weighted average growth rate | 14.60% | 12.40% | 14.60% | |||
Risk adjusted discount rate | 7% | 7.60% | 7% | |||
Increase (decrease) in growth rate in estimated future financial performance | 1% | 1% | 1% | |||
Increase (decrease) in risk-adjusted discount rate | 0.50% | 0.50% | 0.50% | |||
Contracts Due In May 2028 | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Receipts | € | € 750 | |||||
Payments | $ | $ 810.9 | |||||
Contracts Due In November 2023 | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Receipts | € | 500 | |||||
Payments | $ | $ 604.2 | |||||
Contracts Due In March 2025 | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Receipts | € | € 500 | |||||
Payments | £ 444.1 | |||||
750 Euro Bond | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount | € | € 750 | |||||
Eurobonds Due November 2023 | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount | € | € 750 | |||||
Retained earnings | 11.8 | |||||
Earnout agreements for acquisitions completed in the current year | Bottom of Range | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Potential undiscounted amount of future payments | 0 | £ 0 | ||||
Earnout agreements for acquisitions completed in the current year | Top of Range | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Potential undiscounted amount of future payments | 326 | 226 | ||||
All earn-out agreements | Bottom of Range | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Potential undiscounted amount of future payments | 0 | 0 | ||||
All earn-out agreements | Top of Range | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Potential undiscounted amount of future payments | 753 | 695 | ||||
One percentage point increase or decrease | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Increase in combined liabilities due to earn out and put option arrangement | 1.4 | 9.1 | ||||
Decrease in combined liabilities due to earn out and put option arrangement | 5.5 | 6.9 | ||||
0.5 percentage point increase or decrease | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Increase in combined liabilities due to earn out and put option arrangement | 2.5 | 7.4 | ||||
Decrease in combined liabilities due to earn out and put option arrangement | 2.5 | 7.3 | ||||
Derivatives not designated as hedges | Foreign Exchange Contracts | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount | 955.2 | 1,004.8 | ||||
Fair value estimated to be a net asset (liability) | (0.8) | 0.4 | ||||
Derivatives not designated as hedges | Foreign Exchange Contracts | Trade and other payable | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Derivative assets | 141.5 | |||||
Derivatives not designated as hedges | Trade and other payable | Foreign Exchange Contracts | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Derivative liabilities | 108.2 | |||||
Derivatives in designated hedge relationships | Foreign Exchange Contracts | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount | £ 80.6 | |||||
Fair value estimated to be a net asset (liability) | 31.7 | (52.7) | ||||
Derivatives in designated hedge relationships | Trade and other receivable | Foreign Exchange Contracts | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Derivative assets | 31.7 | 0.6 | ||||
Derivatives in designated hedge relationships | Trade and other payable | Foreign Exchange Contracts | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Derivative liabilities | £ 0 | £ 53.3 | ||||
Hedges of net investment in foreign operations | 93 USD Million Bond | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount of hedging instrument | 93,000,000 | 93,000,000 | ||||
Hedges of net investment in foreign operations | 750 USD Million Bond | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount of hedging instrument | 750,000,000 | 750,000,000 | ||||
Hedges of net investment in foreign operations | 220 USD Million Bond | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount of hedging instrument | 220,000,000 | 220,000,000 | ||||
Hedges of net investment in foreign operations | 604 USD Million Bond | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount of hedging instrument | 810,900,000 | 810,900,000 | ||||
Hedges of net investment in foreign operations | 500 Euro Bond | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount of hedging instrument | 500,000,000 | 500,000,000 | ||||
Hedges of net investment in foreign operations | 750 Euro Bond | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount of hedging instrument | 750,000,000 | 750,000,000 |
Financial Instruments - Analysi
Financial Instruments - Analysis of Financial Assets and Liabilities (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | |||
Other investments | £ 332.7 | £ 369.8 | £ 318.3 |
Bank overdrafts and bonds: amounts falling due within one year | (946.3) | (1,169) | |
Bonds | (3,775) | (3,801.8) | |
Payments due to vendors (earnout agreements) | (198.7) | (160.1) | |
Liabilities in respect of put options | (103.6) | (342.1) | |
Derivatives in designated hedge relationships | Classification under IFRS 9 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative assets | 31.7 | 0.6 | |
Derivative liabilities | (53.3) | ||
Financial instruments | 31.7 | (52.7) | |
Held at fair value through profit or loss | Classification under IFRS 9 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other investments | 257.2 | 255.7 | |
Cash and short-term deposits | 180.7 | 219.9 | |
Derivative assets | 2.2 | 5.1 | |
Derivative liabilities | (3) | (4.7) | |
Payments due to vendors (earnout agreements) | (198.7) | (160.1) | |
Liabilities in respect of put options | (103.6) | (342.1) | |
Financial instruments | 238.4 | 315.9 | |
Held at fair value through other comprehensive income | Classification under IFRS 9 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other investments | 75.5 | 114.1 | |
Financial instruments | 75.5 | 114.1 | |
Amortised cost | Classification under IFRS 9 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and short-term deposits | 2,036.8 | 2,271.6 | |
Bank overdrafts and bonds: amounts falling due within one year | (946.3) | (1,169) | |
Bonds | (3,775) | (3,801.8) | |
Trade and other receivables: amounts falling due within one year | 10,601.4 | 11,338 | |
Trade and other receivables: amounts falling due after more than one year | 118.3 | 146.2 | |
Trade and other payables: amounts falling due within one year | (10,917.4) | (11,283) | |
Trade and other payables: amounts falling due after more than one year | (1.5) | (0.9) | |
Financial instruments | (2,987.3) | (2,841) | |
Carrying value | Classification under IFRS 9 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other investments | 332.7 | 369.8 | |
Cash and short-term deposits | 2,217.5 | 2,491.5 | |
Bank overdrafts and bonds: amounts falling due within one year | (946.3) | (1,169) | |
Bonds | (3,775) | (3,801.8) | |
Trade and other receivables: amounts falling due within one year | 10,601.4 | 11,338 | |
Trade and other receivables: amounts falling due after more than one year | 118.3 | 146.2 | |
Trade and other payables: amounts falling due within one year | (10,917.4) | (11,283) | |
Trade and other payables: amounts falling due after more than one year | (1.5) | (0.9) | |
Derivative assets | 33.9 | 5.7 | |
Derivative liabilities | (3) | (58) | |
Payments due to vendors (earnout agreements) | (198.7) | (160.1) | |
Liabilities in respect of put options | (103.6) | (342.1) | |
Financial instruments | £ (2,641.7) | £ (2,463.7) |
Financial Instruments - Analy_2
Financial Instruments - Analysis of Financial Instruments Measured at Fair Value (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [line items] | |||
Other investments | £ 332.7 | £ 369.8 | £ 318.3 |
Payments due to vendors (earnout agreements) | (198.7) | (160.1) | |
Payments due to vendors (earnout agreements) | Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
(Losses) gains recognised in other comprehensive income | 0 | ||
Disposals | 0 | 0 | |
At Fair Value | Derivatives in designated hedge relationships | Derivative liabilities | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative liabilities | 0 | (53.3) | |
At Fair Value | Derivatives in designated hedge relationships | Derivative liabilities | Level 1 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative liabilities | 0 | 0 | |
At Fair Value | Derivatives in designated hedge relationships | Derivative liabilities | Level 2 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative liabilities | 0 | (53.3) | |
At Fair Value | Derivatives in designated hedge relationships | Derivative liabilities | Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative liabilities | 0 | 0 | |
At Fair Value | Derivatives in designated hedge relationships | Derivative assets | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative assets | 31.7 | 0.6 | |
At Fair Value | Derivatives in designated hedge relationships | Derivative assets | Level 1 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative assets | 0 | 0 | |
At Fair Value | Derivatives in designated hedge relationships | Derivative assets | Level 2 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative assets | 31.7 | 0.6 | |
At Fair Value | Derivatives in designated hedge relationships | Derivative assets | Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative assets | 0 | 0 | |
At Fair Value | Held at fair value through profit or loss | Derivative liabilities | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative liabilities | (3) | (4.7) | |
At Fair Value | Held at fair value through profit or loss | Derivative liabilities | Level 1 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative liabilities | 0 | 0 | |
At Fair Value | Held at fair value through profit or loss | Derivative liabilities | Level 2 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative liabilities | (3) | (4.7) | |
At Fair Value | Held at fair value through profit or loss | Derivative liabilities | Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative liabilities | 0 | 0 | |
At Fair Value | Held at fair value through profit or loss | Payments due to vendors (earnout agreements) | |||
Disclosure of detailed information about financial instruments [line items] | |||
Payments due to vendors (earnout agreements) | (198.7) | (160.1) | |
At Fair Value | Held at fair value through profit or loss | Payments due to vendors (earnout agreements) | Level 1 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Payments due to vendors (earnout agreements) | 0 | 0 | |
At Fair Value | Held at fair value through profit or loss | Payments due to vendors (earnout agreements) | Level 2 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Payments due to vendors (earnout agreements) | 0 | 0 | |
At Fair Value | Held at fair value through profit or loss | Payments due to vendors (earnout agreements) | Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Payments due to vendors (earnout agreements) | (198.7) | (160.1) | |
At Fair Value | Held at fair value through profit or loss | Derivative assets | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative assets | 2.2 | 5.1 | |
At Fair Value | Held at fair value through profit or loss | Derivative assets | Level 1 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative assets | 0 | 0 | |
At Fair Value | Held at fair value through profit or loss | Derivative assets | Level 2 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative assets | 2.2 | 5.1 | |
At Fair Value | Held at fair value through profit or loss | Derivative assets | Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative assets | 0 | 0 | |
At Fair Value | Held at fair value through profit or loss | Other investments | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other investments | 257.2 | 255.7 | |
At Fair Value | Held at fair value through profit or loss | Other investments | Level 1 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other investments | 0.6 | 0.4 | |
At Fair Value | Held at fair value through profit or loss | Other investments | Level 2 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other investments | 0 | 0 | |
At Fair Value | Held at fair value through profit or loss | Other investments | Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other investments | 256.6 | 255.3 | |
At Fair Value | Held at fair value through other comprehensive income | Other investments | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other investments | 75.5 | 114.1 | |
At Fair Value | Held at fair value through other comprehensive income | Other investments | Level 1 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other investments | 7.4 | 10.9 | |
At Fair Value | Held at fair value through other comprehensive income | Other investments | Level 2 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other investments | 0 | 0 | |
At Fair Value | Held at fair value through other comprehensive income | Other investments | Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other investments | 68.1 | 103.2 | |
At Fair Value | Payments due to vendors (earnout agreements) | Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Beginning balance | (160.1) | (196.7) | |
Gains/(losses) recognised in the income statement | 50.8 | 26.2 | |
(Losses) gains recognised in other comprehensive income | 0 | ||
Exchange adjustments | 1.8 | (14.3) | |
Additions | 149.7 | 46.7 | |
Cancellations | 0 | ||
Settlements | 58.5 | 71.4 | |
Ending balance | (198.7) | (160.1) | |
At Fair Value | Other investments | Other investments | Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other investments | 324.7 | 358.5 | £ 290 |
Gains/(losses) recognised in the income statement | (26.7) | 23.1 | |
(Losses) gains recognised in other comprehensive income | 0.7 | (5.3) | |
Exchange adjustments | 0 | 0 | |
Additions | 2.6 | 66.7 | |
Disposals | (10.4) | (16) | |
Cancellations | 0 | ||
Settlements | £ 0 | £ 0 |
Authorised and issued share c_3
Authorised and issued share capital - Summary of Authorized and Issued Share Capital (Details) £ in Millions | 12 Months Ended | |||
Dec. 31, 2023 GBP (£) shares | Dec. 31, 2022 GBP (£) shares | Dec. 31, 2021 GBP (£) shares | Dec. 31, 2020 GBP (£) shares | |
Disclosure of classes of share capital [line items] | ||||
Issued and fully paid capital, Beginning balance | £ 114.1 | |||
Share cancellations | £ (807.4) | £ (729.3) | ||
Issued and fully paid capital, Ending balance | £ 114.1 | £ 114.1 | ||
Ordinary shares | ||||
Disclosure of classes of share capital [line items] | ||||
Equity ordinary shares, authorised (in shares) | 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 (in shares) | shares | 1,141,427,296 | 1,224,459,550 | 1,296,080,242 | |
Exercise of share options (in shares) | shares | 85,900 | 125,700 | 534,800 | |
Share cancellations (in shares) | shares | 0 | (83,157,954) | (72,155,492) | |
Number of shares issued and fully paid, Ending balance (in shares) | shares | 1,141,513,196 | 1,141,427,296 | 1,224,459,550 | |
Issued and fully paid capital, Beginning balance | £ 114.1 | £ 122.4 | £ 129.6 | |
Exercise of share options | 0 | 0 | 0 | |
Share cancellations | 0 | (8.3) | (7.2) | |
Issued and fully paid capital, Ending balance | £ 114.1 | £ 114.1 | £ 122.4 |
Authorised and issued share c_4
Authorised and issued share capital - Additional Information (Details) - Ordinary shares - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of classes of share capital [line items] | |||
Number of the ordinary shares of the Company held by the ESOP (in shares) | 490,646 | 1,211,974 | 5,803,641 |
Market value of the ordinary shares of the Company held by the ESOP | £ 3.7 | £ 9.9 | £ 65 |
Number of ordinary shares held in treasury (in shares) | 66,675,497 | 70,489,953 | 70,489,953 |
Ordinary shares held in treasury at market value | £ 502.1 | £ 578.2 | £ 789.1 |
Other reserves - Summary of Oth
Other reserves - Summary of Other Reserves (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of reserves within equity [line items] | |||
Beginning balance | £ 4,160.4 | £ 4,069 | £ 5,050.1 |
Foreign exchange differences on translation of foreign operations | (427.1) | 424.2 | (143) |
Gain/(loss) on net investment hedges | 108.2 | (141.5) | 45.5 |
Fair value loss arising on hedging instruments | (43.3) | 38.5 | (38) |
Less: gain/(loss) reclassified to profit or loss | 44.2 | (38.5) | 38 |
Share of other comprehensive (loss)/ earnings of associate undertakings | (0.9) | 51.2 | 13.5 |
Share cancellations | (807.4) | (729.3) | |
Recognition and remeasurement of financial instruments | 227.7 | 61.4 | (241.6) |
Ending balance | 3,832.7 | 4,160.4 | 4,069 |
Other reserves | |||
Disclosure of reserves within equity [line items] | |||
Beginning balance | 285.2 | (335.9) | 191.2 |
Foreign exchange differences on translation of foreign operations | (404) | 409 | (132.7) |
Gain/(loss) on net investment hedges | 108.2 | (141.5) | 45.5 |
Fair value loss arising on hedging instruments | (43.3) | 38.5 | (38) |
Less: gain/(loss) reclassified to profit or loss | 44.2 | (38.5) | 38 |
Share of other comprehensive (loss)/ earnings of associate undertakings | (0.9) | 31.9 | 7.3 |
Share cancellations | 8.3 | 7.2 | |
Recognition and remeasurement of financial instruments | 197.2 | 101.7 | (242.7) |
Shares purchased into treasury for cancellation | 211.7 | (211.7) | |
Ending balance | 186.6 | 285.2 | (335.9) |
Capital redemption reserve | |||
Disclosure of reserves within equity [line items] | |||
Beginning balance | 21.9 | 13.6 | 6.4 |
Share cancellations | 8.3 | 7.2 | |
Ending balance | 21.9 | 21.9 | 13.6 |
Equity reserve | |||
Disclosure of reserves within equity [line items] | |||
Beginning balance | (263.3) | (576.7) | (122.3) |
Recognition and remeasurement of financial instruments | 197.2 | 101.7 | (242.7) |
Shares purchased into treasury for cancellation | 211.7 | (211.7) | |
Ending balance | (66.1) | (263.3) | (576.7) |
Hedging reserve | |||
Disclosure of reserves within equity [line items] | |||
Beginning balance | 0 | 0 | |
Fair value loss arising on hedging instruments | (43.3) | 38.5 | (38) |
Less: gain/(loss) reclassified to profit or loss | 44.2 | (38.5) | 38 |
Ending balance | 0.9 | 0 | |
Translation reserve | |||
Disclosure of reserves within equity [line items] | |||
Beginning balance | 526.6 | 227.2 | 307.1 |
Foreign exchange differences on translation of foreign operations | (404) | 409 | (132.7) |
Gain/(loss) on net investment hedges | (141.5) | 45.5 | |
Share of other comprehensive (loss)/ earnings of associate undertakings | (0.9) | 31.9 | 7.3 |
Ending balance | £ 229.9 | £ 526.6 | £ 227.2 |
Other reserves - Translation Re
Other reserves - Translation Reserve Comprises (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of reserves within equity [line items] | ||||
Total equity | £ 3,832.7 | £ 4,160.4 | £ 4,069 | £ 5,050.1 |
Translation reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Total equity | 229.9 | 526.6 | 227.2 | £ 307.1 |
Balance relating to continuing net investment hedges | ||||
Disclosure of reserves within equity [line items] | ||||
Total equity | (53.1) | (143.8) | (2.3) | |
Balance relating to discontinued net investment hedges | ||||
Disclosure of reserves within equity [line items] | ||||
Total equity | (67.5) | (85) | (85) | |
Balance related to foreign exchange differences on translation of foreign operations | ||||
Disclosure of reserves within equity [line items] | ||||
Total equity | £ 350.5 | £ 755.4 | £ 314.5 |
Acquisitions - Book Values of I
Acquisitions - Book Values of Identifiable Assets and Liabilities Acquired and Their Fair Value (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Book value at acquisition | ||
Disclosure of detailed information about business combination [line items] | ||
Intangible assets | £ 2.9 | £ 1.2 |
Right-of-use assets | 2.4 | |
Property, plant and equipment | 0.8 | 1.3 |
Cash and cash equivalents | 22.5 | 38.8 |
Trade receivables due within one year | 12.6 | 27 |
Other current assets | 4.9 | 13.1 |
Total assets | 46.1 | 81.4 |
Short-term loans | (48.9) | |
Other current liabilities | (37.1) | (49.4) |
Trade and other payables due after one year | (0.6) | (10.3) |
Deferred tax liabilities | 1.5 | |
Deferred tax liabilities | (0.1) | |
Long-term lease liabilities | (1.9) | (0.1) |
Provisions | (0.4) | (0.1) |
Total liabilities | (87.4) | (60) |
Net assets | (41.3) | 21.4 |
Fair value adjustments | ||
Disclosure of detailed information about business combination [line items] | ||
Intangible assets | 138.5 | 46.5 |
Right-of-use assets | 0 | |
Property, plant and equipment | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Trade receivables due within one year | 0 | 0 |
Other current assets | 0 | 1.1 |
Total assets | 138.5 | 47.6 |
Short-term loans | 0 | |
Other current liabilities | 0 | (5.3) |
Trade and other payables due after one year | (3) | (27.3) |
Deferred tax liabilities | (35) | (12.4) |
Long-term lease liabilities | 0 | 0 |
Provisions | (0.2) | (1.2) |
Total liabilities | (38.2) | (46.2) |
Net assets | 100.3 | 1.4 |
Fair value to Group | ||
Disclosure of detailed information about business combination [line items] | ||
Intangible assets | 141.4 | 47.7 |
Right-of-use assets | 2.4 | |
Property, plant and equipment | 0.8 | 1.3 |
Cash and cash equivalents | 22.5 | 38.8 |
Trade receivables due within one year | 12.6 | 27 |
Other current assets | 4.9 | 14.2 |
Total assets | 184.6 | 129 |
Short-term loans | (48.9) | |
Other current liabilities | (37.1) | (54.7) |
Trade and other payables due after one year | (3.6) | (37.6) |
Deferred tax liabilities | (33.5) | (12.5) |
Long-term lease liabilities | (1.9) | (0.1) |
Provisions | (0.6) | (1.3) |
Total liabilities | (125.6) | (106.2) |
Net assets | 59 | 22.8 |
Non-controlling interests | (1.7) | (2.1) |
Fair value of equity stake in associate undertakings before acquisition of controlling interest | (9) | |
Goodwill | 297.8 | 249.3 |
Consideration | 355.1 | 261 |
Consideration satisfied by: | ||
Cash | 227.4 | 218.3 |
Payments due to vendors | £ 127.7 | £ 42.7 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about business combination [abstract] | ||
Goodwill that is expected to be deductible for tax purposes | £ 61.9 | £ 42.7 |
Related party transactions - Ad
Related party transactions - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Associates | Kantar | ||
Disclosure of transactions between related parties [line items] | ||
Revenue from sale of goods, related party transactions | £ 20.9 | £ 42.7 |
United States | Compas | ||
Disclosure of transactions between related parties [line items] | ||
Revenue from sale of goods, related party transactions | £ 233 | 159.7 |
United States | Compas | Previously Reported | ||
Disclosure of transactions between related parties [line items] | ||
Revenue from sale of goods, related party transactions | £ 88.3 |
Related party transactions - Su
Related party transactions - Summary of Related Party Transaction Outstanding (Details) - GBP (£) £ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Amounts owed by related parties | ||
Amounts receivable, related party transactions | £ 73.5 | £ 88.5 |
Amounts owed to related parties | ||
Amounts payable, related party transactions | (75.1) | (75.7) |
Kantar | ||
Amounts owed by related parties | ||
Amounts receivable, related party transactions | 17.5 | 26.1 |
Amounts owed to related parties | ||
Amounts payable, related party transactions | (4.7) | (10.5) |
Other | ||
Amounts owed by related parties | ||
Amounts receivable, related party transactions | 56 | 62.4 |
Amounts owed to related parties | ||
Amounts payable, related party transactions | £ (70.4) | £ (65.2) |
Reconciliation of profit befo_3
Reconciliation of profit before taxation to headline operating profit - Summary of Reconciliation of Operating Profit to Headline Operating Profit (Details) - GBP (£) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of reconciliation of profit before interest and taxation to headline PBIT [abstract] | |||
Profit before taxation | £ 346,300,000 | £ 1,159,800,000 | £ 950,800,000 |
Finance and investment income | (127,300,000) | (145,400,000) | (69,400,000) |
Finance costs | 389,000,000 | 359,400,000 | 283,600,000 |
Revaluation and retranslation of financial instruments | (6,800,000) | (76,000,000) | 87,800,000 |
Profit before interest and taxation | 601,200,000 | 1,297,800,000 | 1,252,800,000 |
(Earnings)/loss from associates - after interest and tax | (70,200,000) | 60,400,000 | (23,800,000) |
Operating profit | 531,000,000 | 1,358,200,000 | 1,229,000,000 |
Goodwill impairment | 63,600,000 | 37,900,000 | 1,800,000 |
Amortisation and impairment of acquired intangible assets | 727,900,000 | 62,100,000 | 97,800,000 |
Investment and other impairment charges/(reversals) | 17,800,000 | 77,000,000 | (42,400,000) |
Restructuring and transformation costs | 195,500,000 | 218,800,000 | 175,400,000 |
Property-related restructuring costs | 232,500,000 | 18,000,000 | 0 |
(Gains)/losses on disposal of investments and subsidiaries | 7,100,000 | ||
(Gains)/losses on disposal of investments and subsidiaries | 36,300,000 | 10,600,000 | |
Gains on remeasurement of equity interests arising from a change in scope of ownership | 0 | (66,500,000) | 0 |
Litigation settlement | 11,000,000 | 0 | (21,300,000) |
Headline operating profit | £ 1,750,200,000 | £ 1,741,800,000 | £ 1,493,500,000 |
Events after the reporting pe_2
Events after the reporting period (Details) € in Millions, $ in Billions | 12 Months Ended | |||
Feb. 20, 2024 USD ($) extension | Dec. 31, 2023 USD ($) | Mar. 05, 2024 bond | Dec. 31, 2023 EUR (€) | |
New Bonds Issued | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Number of bonds issued | bond | 2 | |||
€600 million of 3.75% bonds due September 2029 | New Bonds Issued | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Bond amount | € | € 600 | |||
Bonds interest rate | 3.625% | 3.625% | ||
€650 million of 4.0% bonds due September 2034 | New Bonds Issued | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Bond amount | € | € 650 | |||
Bonds interest rate | 4% | 4% | ||
US Revolving Credit Facilities March 2026 | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Borrowings term | 5 years | |||
Bond amount | $ | $ 2.5 | |||
US Revolving Credit Facilities March 2026 | Refinanced Debt | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Borrowings term | 5 years | |||
Bond amount | $ | $ 2.5 | |||
Number of extensions | extension | 2 | |||
Extension option term | 1 year |