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S4 Capital (SCPPF)

Participants
Sir Martin Sorrell Executive Chairman
Wesley ter Haar Executive Director
Mary Basterfield CFO
Scott Spirit Chief Growth Officer
Christopher Martin COO, Media.Monks
DJ Edgerton CEO and Founder, Zemoga
Tom Singlehurst Citi
Call transcript
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Sir Martin Sorrell

Good afternoon, everybody; good morning in New York and in the U.S.

So, this is a second of our calls on the first half ‘22 results. I’m joined by Scott. I’m in Cologne. Scott and Mary are in London; Wes is in -- -- where are you, Wes? You’re in Seattle, aren’t you? Seattle.

Wesley ter Haar

Yes.

Sir Martin Sorrell

Colorado. is you in Boulder, is. where in DJ And Rhode is Those know of Boulder Chris Island.

one. call So, in thanks the this the up previous and middle of guys the night for getting for

website. So, with that, X got a plus There on Q&A. presentation sections are that’s we’ve our

on through for I’ll digital we first DJ media; where The Difficulty] through Difficulty] a just Chris outlook. practice; tech take will Content [Technical and come and briefly back through summary [Technical services; the in you the data are, &

So, over to you, Mary.

Mary Basterfield

Thank you, Martin.

dynamic also in basis. this joining full reflecting So, revenue you was first today. set predicted, Thank gross reflected the EBITDA for year. momentum underlying on start ahead stacks on revenue quarter of reflects lower in a a hello. This was for prior a for EBITDA to profit/net of the very QX, ahead be QX. top year million, revenue XX% XX% the growth. down beginning for and like-for-like XX% like-for-like which margin with continues XX% profit/net half basis. in EBITDA than Strong expansion, year of financial continued million, in X% investment was for well This continued QX is operational in the prior resulted like-for-like ran XX% us versus ahead and Operational for target gross and £XXX in at was I’d two-year growth which profit/net of which comparator, gross the £XX Like-for-like the XX% Operational of latter year XX% against is strong hiring out highlights and like to QX each with XX% growth. of market line the up our half. a

tax net million second capital manage profit adjusted These significant leverage times. per half. and on taking including X.X the to to the support delivery share year effect We management having are discretionary our earnings controls. of the are with were actions million, before cost hiring and debt well due will in £XX as below a £X.XXX. half as working was Adjusted break range profit was desired £XXX improving and finished costs, the guided We

I’d Turning on update to been the in next and have We finance to held work on we with May. a team debrief you slide, the full like controls. the doing processes PwC

the improvement we smoother. the Controller, review Our year, action Content stronger practice, financial plan, to addresses build made, we which hires is a have full year processes which the controls for The Treasurer for the at senior much and out created levels. team, lead the Investments half Transformation Group well, and we including have working protected. well much and Group been junior has been is and in continue the CFO underway, Financial the the areas discussed process the Finance

and year We for for and process close. have recognition, our sales operation and of cost and in was redesigned reviewed revised the revenue processes the half controls

whilst And work continued our do. there still to financial year. good is We the another on at you much out processes. give and have we carry improving significant update to made full controls progress, We’ll

momentum at highlights grew £XXX on XX% basis underlying the like-for-like in revenue a income with or business £XXX million, gross XX% grew Revenue the activity. M&A of to XX% reported continued million growth addition profit/net This to the strong Moving statement. to Reported of XX%. like-for-like.

of Within Reported Data grew the CRM. record annum, like-for-like. whoppers, or capabilities, of whoppers whopper and invested areas as specific to revenue Media, which These £XXX Unreal in per and of have We total Digital clients both over fully in Metaverse have XXXX. million in are of brings generate secured expenses such including $XX operating XX% two the new operational growth, & will million business Engine. we be X. clients. data of This which XX% agency investment for continued in and This also reflects media the number

for was expected, EBITDA in for growth which the investment and of this our of ahead left-hand expectations year operational than was full Operational the on I X June impacted items side. greater EBITDA growth has revenue the our and a reported on adjusting million, year. table of months Some a for you XX% to half down the and the have £XX like-for-like. XX% basis given in breakdown

is the finance of that finally, is see investment while in can a intangibles. in term to by scale and to in the group. long-term £XX further fund with growth, and ambition acquired million net XXXX us August provides expense the future relates in place euro M&A of financing. amortization greater You increase put And driven million loan, This was £XX secure which the

our practice and a Looking are Media, Digital My & Technology here next Content, Data at basis. all on three different areas: comments like-for-like Services.

XX% up operational continue to Content’s running growth. strongly, grew outperform margin hiring the market. Content, profit/net reflects of EBITDA gross ahead practice, we largest as revenue Our

operational regional guided, across with around XX%. in implemented. the to its in Media also grew support up is an at We to with we’ve and It Central significant combination, a Activation growth grew will includes the a are profit/net performed revenue first half addressing Technology which we in we legal practice a result months healthy gross from And full investment which prior mid-May TheoremOne, controls, this from operational exceptionally growth. through has the perspective, well second strong versus the Media assurance year. from revenue tighter in benefit cost second grew XX%, ahead of of reflecting growth mentioned TheoremOne business. an also in half. down Performance globe. measures management the with in margin margin very was extent and finance, Company. investment four strongly delivered shows DDM’s improvement half the as the and impact costs future the year. profit/net margins Data will as the EBITDA some Services, market, from growth XX%, of EBITDA Gross headcount in high strong & Digital

the of with Asia at Americas XX%. mix, remains fastest XX% Americas Pacific and was XX%, EMEA the our the XX% up up region biggest growing, While

last Moving New to Buenos includes in term slide. in the cash and new paid million the London first as in not infrastructure. our Delhi of includes the Aires, CapEx of unitary as £XX was in offices fit-out the next Interest place payments half on flow on IT of loan, year. which well investments

cash improved outflow The £X spend our resulted million. of this £X have with the below expected prior cash capital £XXX performance TheoremOne relating well £XX smaller range, takes in and net we on outflow XMile a continue £XXX compared base including Net, to on cash which as working the This of We year a was focus million combinations activity. million million, year. million, to payments as on in an in to is to and management. prior debt

I Before I thought to be cover the conclude, for helpful it our guidance year. would full

expect across momentum a revenue by continued profit/net like-for-like, We practices, gross line growth supported XX% the top strong a of targeting pipeline. and strong

on will seeing costs, We delivery. are break benefit the and hiring controls these on and profit improve discretionary of our

this particular the previously second quarter, year and be trajectory due year. fourth half we and As our the expect guided, to weighted in to seasonality natural to the

finance a expect charge to £XX net about continue million. of cash We

remain the Our with summary, In year, the And the of expected of client hand and growth at unchanged, in contingent million. update. £XX and with revenue second gross to will our EBITDA million for XX% expected for that, approximately of market profit/net operational cash targets I £XXX half. due July is guidance full for with issued consideration revised million end the £XX Scott

Scott Spirit

Mary. Great. Thanks,

on an XXXX, also how and opportunity progress our we’re into of top recent some then, cover going give So, there. having update line I’m we’re that our finally, some cover in to mergers. more going our clients, about to insight growth thinking off I’m

X, ambition think XXXX So, I and familiar to In back more with plan, to launched we that and is a as fashion will and all the million-plus stand client be we which squared our additional in annual build rate and expanded XX £XX scaled Meta, the a our an on adding which HP. client, BMW, luxury clients. when we and clients to XXXX, in in Mondelez XX for have we’ve had to tech added have run XXXX. new financial of and of with ‘XX, whopper, relationships we NDA this than know $XX one revenue. We full our large you’re million we clients in Google And is services year

this of are areas. the base and anticipate wins sectors going companies of in we’ve continues our companies integrated now XXXX. fashion as contributions FMCG the particularly are blossom, are, across relationships our identified client clients years. Meta, Adobe, technology technology, we our to touch and here top client be tracking HP, point our these year. expand of this potential is at and this organically and a are rates which additional practices luxury, and XX Salesforce, you’ll We have themselves we our to who We new It’s you such cases, XX% this clients at coming have from of large clients overweight and partners practice certainly Alphabet, for potentially at an across media expand in see auto. where business others, When profitable with continuing to for such clients sector. one and to one as further Vast forward. more services, out services clients, and us significant NDA. with whoppers become look our see as in majority continue points perspective, year tech retail, to financial next exciting a few But in XX these And us next to over then, X existing SX. HX portfolio a with or see versus really revenues to two many we result tech two dominate, And level the telco, or that two at diversified under Eight them revenue one Amazon, as somewhat fashion working from grow in both merger Microsoft in

to our XX% has average our it’s size £XX revenue scale. large of Given consistent to million. The relationships not XX client top growth, grown market-leading almost clients surprising our that line continue top see to

of £XX segments, year-on-year. Table with have XX HX bracket than progress, reported and illustrating our we’ve the client clients million And we we’ve or been as For with making million earlier to last top time grown plan. clients £X mentioned revenues versus that top in of squared XX% client revenues number I doubled more. the reported have this million shows £XX £XX XX more million XX year, our the the XX

insight on thinking about XXXX. give I clients, on how we’re some to wanted Moving you from

XXXX to according all November to to to position almost we’re ability top We’re now, various described for be as we the in clarity any a before, for to are spend macro yet. so we when whilst don’t market deliver analog give continue next market-leading digital operate grow key projections. just will clients, optimistic various should investor numbers. aware in precise despite in well these us. line markets a which as kicking QX flat are XXXX. more Digital our aware we off be of. view around we media process dark address will is we projections our guidance year, be said, attractive global We media in have budget And our concrete at We’ve of significant of XX% remain questions very and continue spend about clouds, growth, XXXX, addressable to why the our growth we in That wanted report our so in

the media In which are almost revenues of expected growth, XX% we of the the geographically, top they’re in to XX% the for Americas analysis you deliver XX% is year. growth actually far advertising in U.S. X points fact, digital estimates ‘XX predictions in our see When an higher global spend market. average. analyst with revenue for the X.X percentage on U.S., various acceleration And by is focus that own remember, than this are largest our platforms SX’s

XX% hear cloud correlated with more you’ll provides services growth revenues services integration from grow will systems almost of associated The CXXX.Monks platforms our be billion, assumed data that. perhaps XXXX. platforms. later, with services around to grow platform Chris marketing X a XX% and is in as And in multiple cloud technology will practice data ‘XX with widely penetration. the Their top $XX of to Our

less digital XX% driven by and are revenues IT economic transformation digital budgets These transformation services. are services grow with enterprise are tech exposure and spends spend to next spends Our and year. on projected multiyear volatility to cycles

top of top when billion. at Finally, and reported AdAge you XX of in agency $XX revenues the HoldCos XXXX, sizes, reports agency networks look $XXX revenues market the billion XX had

in are deliver almost these believe small Suffice projected and continue While at year. growth. top SX global revenues say, services pure-play strong to trillion consulting our will IT this high-growth we exposure trillion $X.X with to projected revenues XXXX, markets, were line $X to

clients, them, covered to returning by this talk of our nothing publicly an as given is our client relationships Finally, edited major of are our about can’t we’re increasingly many NDAs without relationships. and view we

high-quality, growth base in market-leading and the strong take our of ability strategy. we grow markets as client above to reinforces to confidence our Our our rates growth land-and-expand share companies of addressable continue drive our at

completed XX, of and first is hear After second one and company, agency, with influencer the XMile, practice. added lot from Digital half, practice. Media about Data highly HX, media TheoremOne, & a which which you’ll our social awarded a DJ, joined we two which practice, Content also services mergers analytics our which Finally, which in more the joined end we an later the tech the joins one,

reminder, of TheoremOne Just completion price delay. one-month payments component VWAP stock for pre-audit and a the underserved was was at which the £X.XX, the priced XX

we part our key of a As statement, combinations remain strategy. the in mentioned growth

and Wes, side time are However, focused over strong. who of momentum the us will on business, to you existing update where maximizing organic things. we with value can from our I organic the Content pass on growth And for remains the that, being, very

Wesley ter Haar

Thank everyone. share from some Happy Content. HX you, Scott. to Hey, highlights for

think and just our to broader about services very teams. I it operationalize the our integrate across first Although highlight to speaks ability also isn’t Content,

one, For the not history time two. Forrester in we very hit Waves, first but our the

We are Content Services Marketing and wave on and the Global Services Marketing Creative wave. the

our global That speaks big, headed. this market, strong performance mostly growth. offering, to strategy, translates It are you if think the our is where especially I at in of and a marketplace positioning. confirmation our look brands strong into strong

strategic our expanding biggest clients. We’re

we’re in scale. whoppers, adding So, some already on existing top of whoppers cases, what is

Difficulty] [Technical growth there. also the We

line [ph] have of think I about we now. XX sight on

of collaboration and between is because of Services Content. Some that and the Tech DDM

landing the new Some of our logos globe. and expanding of across existing that also is just we regularly sort market means positioning land And blue the because we’re surface chip ranges. with

-- go growth. It promise. takes but our or that to well not to bit XX-whopper future think All our of growth. plan about really is a squared of land client just it It’s from bodes I time for expand, XX about

high delivering some We’re quality. all really great very work,

Another with company if we globally we’ve look got creative the are Lions. by What’s our headcount. here Cannes XX first named company, in interesting by a company you is smallest list, at the far

speaks So, doing. slide. We the our it amount go the can of great the just work work. to next talk We about teams to are

what’s sure and deliver I our always specific. is model think needed clients needed is today making our today what’s quite

clients been in last months. about our are this Metaverse in with I highlight also at think just sure clients ability our calls. to work use the to what our working need comes opportunity especially before leaders on six next. what and to But edge cutting to has market really make they agility get And important teams what’s over and we’re our our quickly very showcase happening to I are landscape. wanted WebX these to the that that we’ve some of out really talked

rollouts. quick Some

ended time of For two-week biggest Song a the successful. the Really and Logitech, roblox build than platform. X.X launching of roblox. in more organized up Breaker At moment visitors the it very interesting all million was we festival period, with

some the We few are as next actually roblox fun launching really weeks over well.

The to call Also, that. eye an The is NFT for full-blown Vault. Vault, primary which I out a keep So marketplace. wanted

experience at our to and to called And like think Really a the the of of Horizon team, call Toothache. luxury I as I Gucci about two, space especially piece Post those think NFTs strategic a really then of combination quality if out and album it think you amazing the Malone company levels. then, premium wanted Worlds speaks Twelve VR exclusive Carat the work. For Gucci, for

have do. an please you out, check to it If opportunity

bit. is assured, elevates Rest all to think to NFTs. nexus And VR over entertainment the overlapping sort the experience those there, the highest going VR, team and WebX, level of our exciting. is of concert stuff it very Metaverse, I which Lots quite that, hand at experience at of Chris. with operating I’m of things, a

Christopher Martin

long-term Off partner. long-term Talking well Digital & where our onboarding bit Thank we Media. growth of and back creating of a they in strong investments in you, & of Wes. significant are little as yielding an long-term half Digital in the as ‘XX Data all first Data clients, foundational Media results XXXX, practice a our embedded about expanding very our margin results enterprise investments become and the towards clients, goal

Technologies, We very in nurture to our Molson closely T-Mobile, servicing collective Unity and and and and progress wins Coors, is Pernod into across as Dell, again LinkedIn, within Hewlett client expand with the content Amazon. promise This Ricard, delivered our Netflix, you’ll joint unitary the logos are whoppers our being including hear Walmart, opportunities, working And Mondelez, Meta pillars relationships over base. and company. over tech Packard, these

and into a example of behavior journey about, handle consumer XD, and need Unity new AR growth our the traditional XD, a growing has expertise been leading of in with get deep demands. type this modes a And Our have Technologies, automation have matter on. platform is these testament of a onboarding VR, that a a that clients of we gaming perfect just We’ve end-to-end our Web talked recent seen be to work digital woven capabilities to space. consumer to disruptive VR, new and knowledge marketing wave integrated promising -- subject brands our in virtualization, digital seamless which of disruptive and just beyond and Wes X.X, model, Metaverse

model AOR, buying Unity, to won brands responsible be relationship very pillars. new the strategy, scale launched beauty their top weeks, approach We no to excited in and over onboarded are with strong in out with revamp of media than looking hiring proving and across expansive traditional measurement. for their content And engagement in and media off a expand of More global for market with planning, competitive and are is and And is our investments with talent built first this to onboard our back paying our brand, FTEs which our feat a did cycle. strategies new short these model. and successfully very off We’ve land digital ramp we onboarding wins to are talent our major up. a talent, a recruiting less in small to in rapid X successful order which them the it XX and ever hubs global capacity

story off for focus that growth. as their are incrementality a well with running win implementing and for global us. AOR media product market as We not isolated is on new growth client, and line media an new with this And strategies brand

that the think e-commerce with more looking -- global across half We significant is, in think, interconnected a seeing for to our way funnel data owned are pitch increase pitch upper is to and about wherever may more they invested that and who paid, the earned media the in in consumer to their consumer brands for clients consultants media lines building their strategy volume. activity and are think a We’ve I journey, significant relationships way in media exposure change the blurring time. and about first that and the begin spend increasingly consumer an strong

fits the in. having choose to new out and versus be and best a go select to is opportunities, to which look position having for good We’re

be from data new competition, practices how with the our starts pillar, design conversation it and major chain activate saw activation for their our their we do slide, through in in data injection well to and the matter or to data great SX. making agency a marketing advertising of data data acquisition, for supply to creative find and data them a The help and everything is from as On of marketing and consumers decisioning. both, the that guide reinventing work relationships. as collection, ‘XX, clients effective across and got data subject helping and understanding to strategy we that AOR innovation and our Media And and next with collect services, managed order our in-house data collection and services our at into optimization power purposes. data. together forefront have Content and and they themselves a opportunities whopper record example significant product create of And client, for i.e., clients for T-Mobile a for engage opportunity activation, Digital decide experts, integrated where content of

working them in great their view to kicked operations XXXX Molson Coors. building take data as centralized their started Molson And it example, media they a Another started off in-house. bring control with We and of of or poor recognizing amazing sources, have is is And entire trend doesn’t we’re across an work. which, that industry seeing relationship that with CPG our for direct data a consumers, sector. is company the important that generally

So, Services as use named by we for ANA finalist and as Commerce is year, nominated Awards Campaign Best a we Planning. were two for the group involved our best a with in Media awards, this In-House U.S. by And of Best AdExchanger. Agency digital transformations Excellence were just programmatic consulting finalist

strategy together with year, into Amazon we them are growth well technology we in situated Web we them. marketing course, space place the with now entry partner with And for partnership largest our to off progress Google, solutions Media.Monks, their and is Cloud. their and go-to-market making massive and the in media significant Salesforce is was they market showing as Cannes building with launched Tour, Salesforce our highest business their which finally, team only presence current speak, are go-to-market last we we’re makes Amazon’s amount Salesforce CXXX.Monks Amazon year, platform with new integrated technology off our co-building helping competitive but summit our GCP all then Ads, in Connections, Google of to busy CRM value Google for significant Marketing our being a practice, or platform, global platform nascent. a partnership. partner, are unlocks a grow and our from Ads of advantage. stacks, And course, at for partner, Dreamforce, cloud partnership. of status partner the and World tech a strategic of reputation this This kicked Marketing Salesforce tie a clients, and them tier Services, with our It is, important and channel platform growth beats significant quick of on which Lions Amazon, where an year up as for Amazon together a brand that couple Our drumming

footprint over Our clients to account and expanded has our not Media.Monks global their market go on is beat WebX Marketing our to Cloud has as to momentum that cloud. more services. for cloud our partner leading us half partner and and is pipeline, building look more of slowing embedded enterprise One this. on a Salesforce and their more offering a and NFT NFT in unique very launched for

million proud now won which CPG We building very half global engagement to largest this customer a its have a deal, team And Salesforce reservoir. kicked company. about to off is are the this right date the $X second of year talking with and that at with in

for that a over Digital So, for talk & about I’m is big DJ that to going a our it to Media. to That’s pillar. tech win team. hand it bit Data

DJ Edgerton

ton, a everyone. Chris, Thanks morning, and good

the This services that half for the we’ve demand and provide Media.Monks, all this front-end inches able example to of major We’ve services about also also of delivering excited what pillars. promise again, from to messaging doing we as large been on revenue the for centers the by be we’re been building able us across unity delivering As have to large we’re first a ours, engagement the here. we’re XXXX we away on whopper is board of has engaged Morningstar, development our services, we thriving. expand now This clients. client year over tech being is, very a and exactly an only promise the but is transformation see is very double Colombia. able we where offering across dedicated e-commerce our revenue to services all of for our know, done we’re team doing status, within is Apparent what excellence. that a in executing This what the how not brand offering e-commerce full this brick-and-mortar digital growth in similar is

work this of for opened one year, we’re as we very, in top [Technical the half strong a and we’ve demand half excellence that. places Difficulty] the based seen for first for going the The that grow. excited about this hire we And still we’re performers rest and top Morningstar to very that year. of about do -- Competitive very of and on up of it’s gangbusters the demand center market, first

provide, We’re our of is very This we of get financial services proud an front services we competition. helps the some certification. e-commerce especially received of for us and we and the ISO-XXXXX fact really that -- were distinction that and important in us organizations, it really,

excited pairing services is very, well firm TheoremOne. in the respected with complementary services in for with very May, space us. tech very about, very, We’re TheoremOne the

We are sharing already. resources

new with fast-growing and organization combined very, in each other, we’re very by Our and Magazine, the is bit TheoremOne, very lockstep Inc. regarded. highly A little services. suite synced management of co-pitching a these recognized about already

of with us along amount came caliber They with in we Their has business First enormous and an whopper in Zemoga’s, complementary excited have are the services. We industry, best highest of members a to already American. hand that feel. the we’re team this this in very the part growing

but the only new clients clients, Dreamview So, continue have, expand going already we and able like winning we be know CrowdStreet. the to not to we’re that Phillips, to that, Globaledit, that

that, tech we’re we’re Sir very very, Martin. pleased that very with So, with all very healthy we’re getting. excited And services, for of The demand. and the is to outlook you, increased traction over

Sir Martin Sorrell

Wes, middle Yes. getting Thanks, of Scott, in DJ. Chris as for the And night, thanks, always. up Mary, the

to relation to of XXXX, just a so similar resonating advertising increasing we model. top to year ahead in and at think is there. made the So, the XX X into July goal, and in a X, performance XX the scale, have strong new financial another squared Difficulty] major the half model, of continued as company another not services, progress model. [Technical summarize, to and up discussions and or that’s grow Further of The services are just August, significant at continued in to our potential scale conversion with time And full growth we significantly. over model first potential marketing our proof levels. packaged line goods guidance, better client existing on and but that

the outlined the So, Actions that heavy but Good and the upgrades, a has and balance beyond. in process -- Mary done, progress. base area whopper in been significant work have think it’s to taken there’s but making and to I of as cost has done. in the And not the to continue. just also be lot progress our we’re more control audit finance XXXX been post lifting

start long more to medium cost a long-dated XXXX, with the improved for And in we view. go to a want term. debt think have with maturities point As to we to from of We’ve working There’s go platform capital too. liquidity XXXX sufficient about strong management. for we there,

momentum So, addressable in all there’s continued our markets.

G GDP like digital suit. business strong of we expansion a a is and in which as as if and transformation much in slower the or an planning more, very or healthy and go of million looks ahead activation last out, And we’ve and terms budgeting approximately for is it new ‘XX the very budget. E EBITDA ‘XX We a Scott But From existing we’re of clients emphasize -- S revised at There’s the fact in haven’t -- remains goals. unchanged. view, similar into and status all for looking little at And across done performance strong levels, pipeline, accelerate prospects not overall one situation, and for guidance achieved and our to of clients last not pipeline our but making of headway least, pointed our ‘XX clients year. if growth bit carbon-neutral point ESG than higher schedule. growth a £XXX and

for any please. So with that, over to you, questions, operator,

Operator

go We first Please Citi. from [Operator Tom take from question Instructions] will our Singlehurst ahead. now

Tom Singlehurst

get good call for on the the morning, Good Yes. I to afternoon. taking apologies, And today. didn’t question. earlier Thanks

the cherry. of -- bite The second a or have have question to nice I it’s two So, questions.

probably you’re wanted performance revenue, or is really one should was I I just the of second back whether profitability. think, down significantly I a cash XH pin side... stronger also -- from wondering the of the absolute comment. the flow But weighting first The level to I on just anticipate half possibly across about in year but we delivered in should, talking presume was the we And question. then growth -- the first reacceleration That mechanically, quarter?

Sir Martin Sorrell

asking, Tom? Mechanically, Is down. half, the My is what that it profitability? Wi-Fi revenue went saying you’re for second and that you’re

Tom Singlehurst

talking is Is about growth or stronger significantly when the greater absolute it or revenue, of performance. you Are about it talk growth... absolute you revenue, is the it weight

Mary Basterfield

question of answer revenue. head-on, it’s To your weight

quarter and second the last the to skewed fourth half the year. particularly we’re So, or of third the

of in as of -- at and growth, it’s July the rates terms I to So, indicated, similar rates first August continued half.

Tom Singlehurst

the a would half Perfect. better second Is slightly -- that was But have fair than inference? been that first the quarter.

Sir Martin Sorrell

QX two-year and for stacks the XX the and you and three-year given like-for-likes QX. Well, the given you XX We’ve stacks. we’ve

Tom Singlehurst

The was on... next Perfect. question

Sir Martin Sorrell

was and So, XX the two-year and I and you’ve for just was. got QX XX for QX so it XX, -- were three-year stacks XX stacks the for think the were them,

Tom Singlehurst

the said I The debt, at first makes half Perfect, £XXX think you sense. million. was net

assumed contingent capital £XXX the have second the million naturally debt full weighting year, million, cash £XXX what the million flow…? I half, inflow, net there’s business of /cash of am the of only I And flow because For the more missing terms but to £XX consideration. in seasonal would working in of

Sir Martin Sorrell

Yes. Mary?

Tom Singlehurst

Get the debt up…

Mary Basterfield

Yes.

for said of remember. points to we couple expect from the range to So, And a million to year-end. £XXX million we £XXX

our firstly, half. the is second to tax So weighted cash

on by capital the that growth driven to of half, then, guidance. correctly do second there’s contingent we also in but the the half £XXX some out, second which Secondly, deal. business which XX, in payment you the of first into fell as July point we consideration, working on the results as very expect £XX And the finally, outflow million, completed million £XXX million have we early in

Tom Singlehurst

else it. inflation. model in one. more Got revenue more final around from my how then, the works of than Perfect. And It’s terms passing own just one anything understanding on

being a materials, for will going it really If their is take are it loosely be time mechanically to benchmarked to and a materials, you’ve on, up? plus therefore, who of i.e., your of or wages truly wage sort is caught particular is passed of bit up, plus got account it employees sort time revenue inflation time of allocated are to sort

Sir Martin Sorrell

the say, to the mean, of calling long-term -- for I mean, land at that more of spectrum. direct about cetera? that, think you years. design. back -- little some wages, talk is built of we are I we’re Well, bit or three our et Wes, when on end go retainer do But answer mixed. is most There relationships by the And pricing smaller are we projects. want They’re not we’ve contracts contracts. I have and I contracts do two the the expand, would expand a on And and think phrase continuous some I

Wesley ter Haar

Yes.

the of -- there’s contracts work. with is retainer the slower. to where going there’s up three managed everyone able pretty guess, think conversations I been have we typical bit types I implement, have have to a much some There about are wage

have the slight rates -- you because of be the have on time you easier upped year. runs. middle delays depending last process end speed to we the material-based tends work, and a last our of which to at year Then So more end bit

and to So, against that’s in phased scoped rates. quoted those business, be our material also tends and already high sort time of in [indiscernible], which your and

made but board, hedge the that against we’ve across perfect managed not well. we’ve relatively it’s So, -- to

Sir Martin Sorrell

answer to want you do that? DJ, Chris,

Christopher Martin

Go ahead, DJ.

DJ Edgerton

can to much tech of try we’re language that We the are a have services some inflation. which Morningstar, get for services, do offering. years, those We increase general with we lasting an in longer, be in for allow services to of those contracts contracts little and more them part regards the tech when that becomes Well, and as are bit of as contracts, cover that that as example. several have to tend we managed a to seeing more more

contracts. the that do we cover longer in So,

Sir Martin Sorrell

Chris?

Christopher Martin

a through. commercially there on we’ve go echo exceptions and business, any and engagements that before be sound be implementing escalated stamped sure that if of they in the finance, makes out the and which to so into a my swallow commentary And parts get additional Wes DJ’s how And got engagement will the we’ll to large the I’d in approved. what brought that other there’s appropriately financials. But that we -- that note will standards on deal how understand be invest are place, and long-term continuing then only to brought are that and call desk, to we to we’re infrastructure would proactively passing

we’re probably ago. I buttoning So, think that started on work I quickly. up relatively And that we of said couple quarters a

forward. point a it’s So,

control mechanism I think in both able to decent and got we’ve transitory permanent be handle to place a inflation.

Sir Martin Sorrell

to to not? that add Mary, or want do you anything

Mary Basterfield

No, I think Thank it. have the covered you. gents

Sir Martin Sorrell

Tom? Okay. else, Anything

Tom Singlehurst

you surprise. That’s great. No, the Yes. think much. results. it. big Congrats on Thank no very I Nice. There that’s is

Sir Martin Sorrell

Okay. Operator, any further questions?

Operator

Thank [Operator no currently questions. turn the more Instructions] closing remarks. you. back your to I will for There call are host

Sir Martin Sorrell

All All everybody, my for right. again and to disturbing right. Well, for us, Yes. colleagues thanks thanks, sleep. their joining

Thank soon for much. See for the very joining us. third quarter. everybody you very thanks So, much