Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Entity Information [Line Items] | |
Document Type | 20-F/A |
Amendment Flag | true |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | WPP plc |
Entity Central Index Key | 0000806968 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 1,328,167,813 |
Entity Address, Country | GB |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Accounting Standard | International Financial Reporting Standards as issued by the International Accounting Standards Board |
Amendment Description | Explanatory Note This Amendment on Form 20-F/A is being filed by WPP plc (“the Company”) as Amendment No. 1 (this “Amendment”) to its annual report on Form 20-F for the fiscal year ended 31 December 2019 (the “Original Filing”) originally filed with the Securities and Exchange Commission (the “SEC”) on 30 April 2020 (the “Original Filing Date”). As indicated on our Form 6-K furnished to the SEC on 14 December 2020, it was determined that the Company’s previously issued financial statements for the years ended 31 December 2019, 2018 and 2017 contained errors with respect to certain aspects of the application of IAS 32 Financial Instruments: Presentation and IAS 39 Financial Instruments: Recognition and Measurement, resulting in the incorrect presentation of the Company’s notional cash pooling arrangements on the balance sheet and the inappropriate deferral of foreign exchange movements in the Company’s translation reserve due to the inappropriate application of hedge accounting in respect of non-derivative financial instruments, respectively. We have also determined that the discount rate used in the calculation of the present value of the expected cash outflows in respect of put option agreements and payments due to vendors (earnout agreements) did not fully reflect the risk in the associated cash flows.To correct these errors, in this Amendment we are restating our consolidated balance sheets as at 31 December 2019, 2018 and 2017, and our consolidated statements of income, comprehensive income, and changes in equity for the years ended 31 December 2019, 2018 and 2017. The consolidated balance sheet as at 31 December 2017 has been included and restated in this Amendment to comply with the requirements of IFRS as a result of the restatement. The consolidated financial statements as at and for the years ended 31 December 2019, 2018 and 2017 are collectively referred to as the “Restated Financial Statements”. The adjustments to correct the notional cash pooling matters were limited to balance sheet adjustments in both cash and short-term deposits and bank overdrafts, bonds and bank loans that result in an aggregate increase in both of £8.337 billion, £8.423 billion and £9.460 billion in the Company’s consolidated balance sheets as at 31 December 2019, 2018 and 2017, respectively. The adjustments to correct the net investment hedging matters have resulted in reclassifying exchange adjustments on foreign currency net investments within the Company’s consolidated statement of comprehensive income to be reported together with revaluation of financial instruments on the face of the Company’s consolidated income statement as revaluation and retranslation of financial instruments and separately disclosed in the notes to the consolidated financial statements, amounting to a £245.7 million gain, £205.1 million loss and £194.6 million gain for the years ended 31 December 2019, 2018 and 2017, respectively. Corresponding adjustments to other reserves and retained earnings on the Company’s consolidated balance sheets and statements of changes in equity were made. This change also reduced the opening retained earnings balance as at 1 January 2017 by £506.9 million with a corresponding increase in other reserves. The adjustments to correct the put option and payments due to vendors (earnout) discount rate have resulted in adjustments to the Company’s consolidated balance sheet, decreasing trade and other payables (current and non-current liabilities) by £32.4 million, £47.9 million and £82.6 million as at 31 December 2019, 2018 and 2017, respectively; increasing other reserves by £59.6 million, £51.5 million and £45.1 million as at 31 December 2019, 2018 and 2017, respectively; and decreasing intangible assets: goodwill by £60.1 million, £70.2 million and £78.3 million as at 31 December 2019, 2018 and 2017, respectively. The Company’s consolidated income statement has also been adjusted to reflect charges to revaluation and retranslation of financial instruments of £13.5 million, £40.6 million and £47.5 million for the years ended 31 December 2019, 2018 and 2017, respectively and a £7.4 million reduction in the goodwill impairment charge for the year ended 31 December 2018. Corresponding adjustments to retained earnings on the Company’s consolidated balance sheets and statements of changes in equity were made. These changes also increased the opening retained earnings balance as at 1 January 2017 by £6.8 million. These adjustments are described more fully in the accounting policies discussion and notes 3, 6, 14 and 27 of the accompanying consolidated financial statements. In addition to the Restated Financial Statements, this amendment is being filed to amend Items 3A “Key information – Selected Financial Data”, 3D “Key Information – Risk Factors – Internal control over financial reporting”, 5 “Operating and Financial Review and Prospects”, 6 “Directors, Senior Management and Employees – C. Board Practices – Audit Committee – Financial reporting and significant financial judgements – Goodwill impairments”, 6 “Directors, Senior Management and Employees – C. Board Practices – Audit Committee – Internal financial control”, 15 “Controls and Procedures”, 18 “Financial Statements”, and 19 “Exhibits”, in each case, solely to make appropriate changes to reflect the corrections made in the Restated Financial Statements, the effects of those corrections and other related matters. As described more fully in Item 15, as a result of the filing of the Restated Financial Statements, our management has updated its assessments as of 31 December 2019 of our disclosure controls and procedures and our internal control over financial reporting and the bases for why neither was effective as at 31 December 2019. This Amendment also includes currently dated certifications from our Principal Executive Officer and Principal Financial Officer, as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, and amended reports of our independent registered public accounting firm relating to the audit of the Restated Financial Statements and of the effectiveness of our internal control over financial reporting. We have made no other changes to our Original Filing, and the other Items and disclosures included in this Amendment are included for the convenience of the reader only and have not been updated to reflect events occurring after the Original Filing Date. Accordingly, except as expressly modified to reflect the impact of the corrections made in the Restated Financial Statements, this Amendment continues to speak only as of the Original Filing Date. Since this Amendment restates the financial information for the 2018 and 2017 fiscal years, we do not intend to amend our previously filed Annual Reports on Form 20-F for periods ended prior to 31 December 2019. As a result, you should rely upon the Restated Financial Statements contained in this Amendment with respect to such prior fiscal years. In addition, we are furnishing a Form 6-K/A to similarly restate our condensed consolidated balance sheets as at 30 June 2020 and 2019 and 31 December 2019, and our condensed consolidated statements of income, comprehensive income, changes in equity for the six months ended 30 June 2020 and 2019 and the year ended 31 December 2019. Please refer to that report for further detail and review the Original Filing and this Amendment together with that report. |
ICFR Auditor Attestation Flag | true |
Ordinary shares [member] | |
Entity Information [Line Items] | |
Trading Symbol | WPP |
Title of 12(b) Security | Ordinary Shares of 10p each |
Security Exchange Name | NONE |
American depositary shares [member] | |
Entity Information [Line Items] | |
Trading Symbol | WPP |
Title of 12(b) Security | American Depositary Shares, each representing five Ordinary Shares (ADSs) |
Security Exchange Name | NYSE |
Consolidated Income Statement
Consolidated Income Statement - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Profit or loss [abstract] | ||||||
Revenue | [1] | £ 13,234.1 | £ 13,046.7 | [2],[3] | £ 13,146.4 | [2],[3] |
Costs of services | [2] | (10,825.1) | (10,559.1) | [3] | (10,481.6) | [3] |
Gross profit | [2] | 2,409 | 2,487.6 | [3] | 2,664.8 | [3] |
General and administrative costs | [2] | (1,113.1) | (1,242.3) | [3] | (1,086.9) | [3] |
Operating profit | [2] | 1,295.9 | 1,245.3 | [3] | 1,577.9 | [3] |
Share of results of associates | [2] | 14.7 | 30.5 | [3] | 98 | [3] |
Profit before interest and taxation | [2] | 1,310.6 | 1,275.8 | [3] | 1,675.9 | [3] |
Finance and investment income | [2] | 99 | 98.9 | [3] | 89 | [3] |
Finance costs | [2] | (359.1) | (279.1) | [3] | (261.9) | [3] |
Revaluation and retranslation of financial instruments | [2] | 163.8 | (76.3) | [3] | 391 | [3] |
Profit before taxation | [4] | 1,214.3 | 1,019.3 | [5] | 1,894 | [5] |
Taxation | [2] | (275) | (256) | [3],[4] | (83) | [3],[4] |
Profit for the year from continuing operations | [2] | 939.3 | 763.3 | [3] | 1,811 | [3] |
Profit for the year from discontinued operations | [2] | 10.8 | 137.8 | [3] | 248.4 | [3] |
Profit for the year | [2] | 950.1 | 901.1 | [3] | 2,059.4 | [3] |
Attributable to: | ||||||
Continuing operations | [2] | 860.1 | 698.2 | [3] | 1,726.6 | [3] |
Discontinued operations | [2] | (3.8) | 126.4 | [3] | 237.1 | [3] |
Total Equity holders of the parent | [2] | 856.3 | 824.6 | [3] | 1,963.7 | [3] |
Continuing operations | [2] | 79.2 | 65.1 | [3] | 84.4 | [3] |
Discontinued operations | [2] | 14.6 | 11.4 | [3] | 11.3 | [3] |
Non-controlling interests | [2] | 93.8 | 76.5 | [3] | 95.7 | [3] |
Profit for the year | [2] | £ 950.1 | £ 901.1 | [3] | £ 2,059.4 | [3] |
Earnings per share | ||||||
Basic earnings per ordinary share | [2] | £ 0.685 | £ 0.661 | [3] | £ 1.557 | [3] |
Diluted earnings per ordinary share | [2] | 0.679 | 0.654 | [3] | 1.539 | [3] |
Basic earnings (loss) per share from discontinued operations | [2] | 0.685 | 0.661 | [3] | 1.557 | [3] |
Diluted earnings (loss) per share from discontinued operations | [2] | 0.679 | 0.654 | [3] | 1.539 | [3] |
Basic earnings (loss) per share from continuing operations | [2] | 0.688 | 0.560 | [3] | 1.369 | [3] |
Diluted earnings (loss) per share from continuing operations | [2] | £ 0.682 | £ 0.554 | [3] | £ 1.353 | [3] |
[1] | Intersegment sales have not been separately disclosed as they are not material. | |||||
[2] | Figures have been restated, as described in the accounting policies. | |||||
[3] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[4] | Profit before taxation has been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. | |||||
[5] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. As a result Data Investment Management is now excluded from the segment analysis. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Statement of comprehensive income [abstract] | ||||||
Profit for the year | [1] | £ 950.1 | £ 901.1 | [2] | £ 2,059.4 | [2] |
Items that may be reclassified subsequently to profit or loss: | ||||||
Exchange adjustments on foreign currency net investments | [1] | (625.1) | 284 | (659.8) | ||
Exchange adjustments recycled to the income statement on disposal of discontinued operations | [1] | (284) | ||||
Gain on revaluation of available for sale investments | [1] | 32.1 | ||||
Items that may be reclassified subsequently to profit or loss | (909.1) | 284 | (627.7) | |||
Items that will not be reclassified subsequently to profit or loss: | ||||||
Actuarial (loss)/gain on defined benefit pension plans | [1] | (36.6) | 8.9 | 17 | ||
Deferred tax on defined benefit pension plans | [1] | 6.4 | (0.7) | (24.6) | ||
Movements on equity investments held at fair value through other comprehensive income | [1] | (141.4) | (247.9) | |||
Items that will not be reclassified subsequently to profit or loss | (171.6) | (239.7) | (7.6) | |||
Other comprehensive (loss)/income for the year | [1] | (1,080.7) | 44.3 | (635.3) | ||
Total comprehensive (loss)/income for the year | [1] | (130.6) | 945.4 | 1,424.1 | ||
Equity holders of the parent: | ||||||
Continuing operations | 180 | 697.7 | 1,205.4 | |||
Discontinued operations | (386.4) | 162.2 | 142.7 | |||
Total Equity holders of the parent | (206.4) | 859.9 | 1,348.1 | |||
Continuing operations | 61.9 | 73.8 | 65.2 | |||
Discontinued operations | 13.9 | 11.7 | 10.8 | |||
Total Non-controlling interests | 75.8 | 85.5 | 76 | |||
Total comprehensive (loss)/income for the year | [1] | £ (130.6) | £ 945.4 | £ 1,424.1 | ||
[1] | Figures have been restated, as described in the accounting policies. | |||||
[2] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statement - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of cash flows [abstract] | ||||
Net cash inflow from operating activities | [1] | £ 1,850.5 | £ 1,693.8 | £ 1,408.1 |
Investing activities | ||||
Acquisitions | (161.3) | (283.7) | (477.5) | |
Disposal of investments and subsidiaries | 2,141 | 833.9 | 296 | |
Purchases of property, plant and equipment | (339.3) | (314.8) | (288.9) | |
Purchases of other intangible assets (including capitalised computer software) | (54.8) | (60.4) | (37.3) | |
Proceeds on disposal of property, plant and equipment | 174 | 9.5 | 8 | |
Net cash inflow/(outflow) from investing activities | 1,759.6 | 184.5 | (499.7) | |
Financing activities | ||||
Repayment of lease liabilities | (249.8) | |||
Share option proceeds | 0.6 | 1.2 | 6.4 | |
Cash consideration for non-controlling interests | (62.7) | (109.9) | (47.3) | |
Share repurchases and buybacks | (43.8) | (207.1) | (504.2) | |
Net (decrease)/increase in borrowings | (1,713.2) | (440.6) | 599.6 | |
Financing and share issue costs | (6.4) | (3.8) | (0.8) | |
Equity dividends paid | (750.5) | (747.4) | (751.5) | |
Dividends paid to non-controlling interests in subsidiary undertakings | (96.2) | (106.2) | (87.8) | |
Net cash outflow from financing activities | (2,922) | (1,613.8) | (785.6) | |
Net increase in cash and cash equivalents | 688.1 | 264.5 | 122.8 | |
Translation of cash and cash equivalents | (89.7) | (61.5) | (27.2) | |
Cash and cash equivalents at beginning of year | 2,201.2 | 1,998.2 | 1,902.6 | |
Cash and cash equivalents including cash held in disposal group at end of year | 2,799.6 | 2,201.2 | 1,998.2 | |
Cash and cash equivalents held in disposal group presented as held for sale | (66.3) | |||
Cash and cash equivalents at end of year | £ 2,733.3 | £ 2,201.2 | £ 1,998.2 | |
[1] | Figures have been restated, as described in the accounting policies. |
Consolidated Balance Sheet
Consolidated Balance Sheet - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Non-current assets | ||||||
Goodwill | [1] | £ 10,110.6 | £ 13,132.6 | £ 12,874.6 | ||
Other | [1] | 1,468.8 | 1,842 | 2,018.4 | ||
Property, plant and equipment | [1] | 876 | 1,083 | 979.5 | ||
Right-of-use assets | [1] | 1,734.5 | ||||
Interests in associates and joint ventures | [1] | 813 | 796.8 | 1,065.2 | ||
Other investments | [1] | 498.3 | 666.7 | 1,153.5 | ||
Deferred tax assets | [1] | 187.9 | 153 | 160.3 | ||
Trade and other receivables | [1] | 137.6 | 180 | 176.2 | ||
Non-current assets | [1] | 15,826.7 | 17,854.1 | 18,427.7 | ||
Current assets | ||||||
Corporate income tax recoverable | [1] | 165.4 | 198.7 | 234.7 | ||
Trade and other receivables | [1] | 11,822.3 | 13,101.5 | 12,530.7 | ||
Cash and short-term deposits | [1] | 11,305.7 | 11,065.8 | 11,851 | ||
Subtotal of current assets before including assets classified as held for sale | [1] | 23,293.4 | 24,366 | 24,616.4 | ||
Assets classified as held for sale | [1] | 485.3 | ||||
Total of current assets after including assets classified as held for sale | [1] | 23,778.7 | 24,366 | 24,616.4 | ||
Current liabilities | ||||||
Trade and other payables | [1] | (14,188.1) | (15,021.9) | (14,239.5) | ||
Corporate income tax payable | [1] | (499.9) | (545.9) | (649.3) | ||
Short-term lease liabilities | [1] | (302.2) | ||||
Bank overdrafts, bonds and bank loans | [1] | (8,798) | [2] | (9,447.7) | [2] | (10,083.7) |
Current liabilities other than liabilities included in disposal groups classified as held for sale | [1] | (23,788.2) | (25,015.5) | (24,972.5) | ||
Liabilities associated with assets classified as held for sale | [1] | (170.4) | ||||
Total of current liabilities after including liabilitites associated with assets as held for sale | [1] | (23,958.6) | (25,015.5) | (24,972.5) | ||
Net current liabilities | [1] | (179.9) | (649.5) | (356.1) | ||
Total assets less current liabilities | [1] | 15,646.8 | 17,204.6 | 18,071.6 | ||
Non-current liabilities | ||||||
Bonds and bank loans | [1] | (4,047.3) | (5,634.8) | (6,250.4) | ||
Trade and other payables | [1] | (449.6) | [3] | (810) | [3] | (911.7) |
Deferred tax liabilities | [1] | (379.8) | (479.5) | (513.7) | ||
Provision for post-employment benefits | [1] | (159) | (184.3) | (206.3) | ||
Provisions for liabilities and charges | [1] | (247.8) | (311.7) | (229) | ||
Long-term lease liabilities | [1] | (1,947.5) | ||||
Non-current liabilities | [1] | (7,231) | (7,420.3) | (8,111.1) | ||
Net assets | [1] | 8,415.8 | 9,784.3 | 9,960.5 | ||
Equity | ||||||
Called-up share capital | [1] | 132.8 | 133.3 | 133.3 | ||
Share premium account | [1] | 570.3 | 569.7 | 568.5 | ||
Other reserves | [1] | (169.9) | 962.4 | 1,119.1 | ||
Own shares | [1] | (1,178.7) | (1,255.7) | (1,171.1) | ||
Retained earnings | [1] | 8,689.9 | 8,950.2 | 8,841.9 | ||
Equity shareholders' funds | [1] | 8,044.4 | 9,359.9 | 9,491.7 | ||
Non-controlling interests | [1] | 371.4 | 424.4 | 468.8 | ||
Total equity | [1] | £ 8,415.8 | £ 9,784.3 | £ 9,960.5 | ||
[1] | Figures have been restated, as described in the accounting policies. | |||||
[2] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies of the consolidated financial statements. | |||||
[3] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - GBP (£) £ in Millions | Total | Called-up share capital [member] | Share premium account [member] | Other reserves [member] | Own shares [member] | Retained earnings [member] | Total equity shareholder's funds [member] | Non-controlling interests [member] | |||||
Beginning balance at Dec. 31, 2016 | £ 9,812.2 | [1] | £ 133.2 | £ 562.2 | £ 1,735.8 | [1] | £ (962) | £ 7,899.9 | [1] | £ 9,369.1 | [1] | £ 443.1 | |
Ordinary shares issued | 6.4 | [1] | 0.1 | 6.3 | 6.4 | [1] | |||||||
Treasury share additions | (289.6) | [1] | (289.6) | (289.6) | [1] | ||||||||
Treasury share allocations | 112.2 | (112.2) | [1] | ||||||||||
Profit for the year | 2,059.4 | [1],[2] | 1,963.7 | [1] | 1,963.7 | [1] | 95.7 | ||||||
Exchange adjustments on foreign currency net investments | (659.8) | [1] | (640.1) | [1] | (640.1) | [1] | (19.7) | ||||||
Gain on revaluation of available for sale investments | [1] | 32.1 | 32.1 | 32.1 | |||||||||
Actuarial gain(loss) on defined benefit pension plans | [1] | 17 | 17 | 17 | |||||||||
Deferred tax on defined benefit pension plans | [1] | (24.6) | (24.6) | (24.6) | |||||||||
Other comprehensive income/(loss) | (635.3) | [1] | (608) | [1] | (7.6) | [1] | (615.6) | [1] | (19.7) | ||||
Total comprehensive (loss)/income | 1,424.1 | [1] | (608) | [1] | 1,956.1 | [1] | 1,348.1 | [1] | 76 | ||||
Dividends paid | (839.3) | [1] | (751.5) | [1] | (751.5) | [1] | (87.8) | ||||||
Non-cash share-based incentive plans (including share options) | [1] | 105 | 105 | 105 | |||||||||
Tax adjustment on share-based payments | [1] | 3 | 3 | 3 | |||||||||
Net movement in own shares held by ESOP Trusts | (214.6) | [1] | (31.7) | (182.9) | [1] | (214.6) | [1] | ||||||
Recognition/remeasurement of financial instruments | [1] | (20.4) | (8.7) | (11.7) | (20.4) | ||||||||
Acquisition of subsidiaries | [3] | (26.3) | [1] | (63.8) | [1] | (63.8) | [1] | 37.5 | |||||
End of year, restated at Dec. 31, 2017 | 9,960.5 | [1] | 133.3 | 568.5 | 1,119.1 | [1] | (1,171.1) | 8,841.9 | [1] | 9,491.7 | [1] | 468.8 | |
Accounting policy change (IFRS 9) | [1] | (407.4) | 407.4 | ||||||||||
Beginning balance, restated at Dec. 31, 2017 | 9,960.5 | [1] | 133.3 | 568.5 | 711.7 | [1] | (1,171.1) | 9,249.3 | [1] | 9,491.7 | [1] | 468.8 | |
Ordinary shares issued | 1.2 | [1] | 1.2 | 1.2 | [1] | ||||||||
Treasury share additions | (104.3) | [1] | (104.3) | (104.3) | [1] | ||||||||
Treasury share allocations | 1.5 | (1.5) | [1] | ||||||||||
Profit for the year | 901.1 | [1],[2] | 824.6 | [1] | 824.6 | [1] | 76.5 | ||||||
Exchange adjustments on foreign currency net investments | 284 | [1] | 275 | [1] | 275 | [1] | 9 | ||||||
Movements on equity investments held at fair value through other comprehensive income | [1] | (247.9) | (247.9) | (247.9) | |||||||||
Actuarial gain(loss) on defined benefit pension plans | [1] | 8.9 | 8.9 | 8.9 | |||||||||
Deferred tax on defined benefit pension plans | [1] | (0.7) | (0.7) | (0.7) | |||||||||
Other comprehensive income/(loss) | 44.3 | [1] | 275 | [1] | (239.7) | [1] | 35.3 | [1] | 9 | ||||
Total comprehensive (loss)/income | 945.4 | [1] | 275 | [1] | 584.9 | [1] | 859.9 | [1] | 85.5 | ||||
Dividends paid | (853.6) | [1] | (747.4) | [1] | (747.4) | [1] | (106.2) | ||||||
Non-cash share-based incentive plans (including share options) | [1] | 84.8 | 84.8 | 84.8 | |||||||||
Tax adjustment on share-based payments | [1] | (1.2) | (1.2) | (1.2) | |||||||||
Net movement in own shares held by ESOP Trusts | [1] | (102.8) | 18.2 | (121) | (102.8) | ||||||||
Recognition/remeasurement of financial instruments | [1] | (13.9) | (24.3) | 10.4 | (13.9) | ||||||||
Acquisition of subsidiaries | [4] | (131.8) | [1] | (108.1) | [1] | (108.1) | [1] | (23.7) | |||||
End of year, restated at Dec. 31, 2018 | 9,784.3 | [1] | 133.3 | 569.7 | 962.4 | [1] | (1,255.7) | 8,950.2 | [1] | 9,359.9 | [1] | 424.4 | |
Accounting policy change (IFRS 16) | [1],[5] | (128.9) | (128.9) | (128.9) | |||||||||
Deferred tax on accounting policy change (IFRS 16) | [1],[5] | 27.8 | 27.8 | 27.8 | |||||||||
Beginning balance, restated at Dec. 31, 2018 | 9,683.2 | 133.3 | 569.7 | 962.4 | [1] | (1,255.7) | 8,849.1 | [1] | 9,258.8 | [1] | 424.4 | ||
Ordinary shares issued | 0.6 | [1] | 0.6 | 0.6 | [1] | ||||||||
Treasury share additions | (43.8) | ||||||||||||
Share cancellations | (47.7) | [1] | (0.5) | 0.5 | [1] | (47.7) | [1] | (47.7) | [1] | ||||
Treasury share allocations | 0 | [1] | 1 | (1) | [1] | ||||||||
Profit for the year | 950.1 | [1] | 856.3 | [1] | 856.3 | [1] | 93.8 | ||||||
Exchange adjustments recycled to the income statement on disposal of discontinued operations | [1] | (284) | (284) | (284) | |||||||||
Exchange adjustments on foreign currency net investments | (625.1) | [1] | (607.1) | [1] | (607.1) | [1] | (18) | ||||||
Movements on equity investments held at fair value through other comprehensive income | [1] | (141.4) | (141.4) | (141.4) | |||||||||
Actuarial gain(loss) on defined benefit pension plans | [1] | (36.6) | (36.6) | (36.6) | |||||||||
Deferred tax on defined benefit pension plans | [1] | 6.4 | 6.4 | 6.4 | |||||||||
Other comprehensive income/(loss) | (1,080.7) | [1] | (891.1) | [1] | (171.6) | [1] | (1,062.7) | [1] | (18) | ||||
Total comprehensive (loss)/income | (130.6) | [1] | (891.1) | [1] | 684.7 | [1] | (206.4) | [1] | 75.8 | ||||
Dividends paid | (846.7) | [1] | (750.5) | [1] | (750.5) | [1] | (96.2) | ||||||
Non-cash share-based incentive plans (including share options) | [1] | 71.4 | 71.4 | 71.4 | |||||||||
Tax adjustment on share-based payments | [1] | 3.1 | 3.1 | 3.1 | |||||||||
Net movement in own shares held by ESOP Trusts | [1] | 76 | (76) | ||||||||||
Recognition/remeasurement of financial instruments | [1] | 23.7 | 10.6 | 13.1 | 23.7 | ||||||||
Share purchases – close period commitments | [1],[6] | (252.3) | (252.3) | (252.3) | |||||||||
Acquisition of subsidiaries | [4] | (88.9) | [1] | (56.3) | [1] | (56.3) | [1] | (32.6) | |||||
End of year, restated at Dec. 31, 2019 | £ 8,415.8 | [1] | £ 132.8 | £ 570.3 | £ (169.9) | [1] | £ (1,178.7) | £ 8,689.9 | [1] | £ 8,044.4 | [1] | £ 371.4 | |
[1] | Figures have been restated, as described in the accounting policies. | ||||||||||||
[2] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | ||||||||||||
[3] | Other reserves are analysed in note 29. | ||||||||||||
[4] | Acquisition of subsidiaries represents movements in retained earnings and non-controlling interests arising from changes in ownership of existing subsidiaries and recognition of non-controlling interests on new acquisitions. | ||||||||||||
[5] | The impact of the adoption of IFRS 16 Leases from 1 January 2019 is described in the accounting policies. | ||||||||||||
[6] | During 2019, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 2 January 2020 and ending on 27 February 2020, in accordance with UK listing rules. The commitment resulting from this agreement constitutes a liability at 31 December 2019, which is included in Trade and other payables: amounts falling due within one year and has been recognised as a movement in equity. |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Accounting policies | Accounting policies The consolidated financial statements of WPP plc and its subsidiaries (the Group) for the year ended 31 December 2019 have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board as they apply to the financial statements of the Group for the year ended 31 December 2019. Basis of preparation The consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of certain financial instruments and held for sale assets. The financial statements have been prepared using the going concern basis of accounting. The principal accounting policies are set out below. The financial statements were originally approved by the Board of Directors and authorized for issue on 30 April 2020, and have been amended as of 12 February 2021 solely to correct the matters described below under the Restatement subheading. Basis of consolidation The consolidated financial statements include the results of the Company and all its subsidiary undertakings made up to the same accounting date. All intra-Group balances, transactions, income and expenses are eliminated in full on consolidation. The results of subsidiary undertakings acquired or disposed of during the period are included or excluded from the consolidated income statement from the effective date of acquisition or disposal. Restatement After the consolidated financial statements for the year ended 31 December 2019 were issued it was determined that they did not comply with certain elements of the application of IAS 32 Financial Instruments: Presentation and IAS 39 Financial Instruments: Recognition and Measurement, resulting in the incorrect presentation of the Company’s notional cash pooling arrangements on the balance sheet and the inappropriate deferral of foreign exchange movements in the Company’s translation reserve due to the inappropriate application of hedge accounting in respect of non-derivative financial instruments and the inappropriate discount rate being applied in the calculation of the fair value of liabilities in respect of put option agreements and payments due to vendors (earnout agreements). Therefore, there has been a restatement of the years ended 31 December 2019, 31 December 2018, and 31 December 2017. The impact of this change is to increase cash and short-term deposits and bank overdrafts, bonds and bank loans by £8,336.7 million for the year ended 31 December 2019 (2018: £8,422.6 million, 2017: £9,459.6 million), while having no impact on the Company’s debt less cash position. This adjustment does not impact the consolidated income statement or consolidated cash flow statement. Net investment hedging was inappropriately applied against certain foreign exchange exposures and net investment in foreign operations, where the relationship was either an ineligible hedging relationship under IFRS or insufficiently documented, such that the criteria to apply hedge accounting under IAS 39 Financial Instruments: Recognition and Measurement were not met. Therefore, there has been a restatement of the years ended 31 December 2019, 2018 and 2017, resulting in the reclassification of gains/losses recognised in exchange adjustments on foreign currency net investments within the consolidated statement of comprehensive income to be reported in the consolidated income statement as revaluation and retranslation of financial instruments (note 6). The impact of this change is a £245.7 million gain for the year ended 31 December 2019 (2018: £205.1 million loss, 2017: £194.6 million gain) being recognised in revaluation and retranslation of financial instruments. This change also reduces the opening retained earnings balance as at 1 January 2017 by £506.9 million with a corresponding increase in the foreign currency translation reserve. The fair value of liabilities in respect of put option agreements and payments due to vendors (earnout agreements) are recorded at the present value of the expected cash outflows of the obligation. The discount rate historically used in this calculation represented the Company’s cost of debt. To fully reflect the risk in the cash flows, the Company has changed the discount rate used in this calculation, and restated the periods ending 31 December 2019, 2018 and 2017 to reflect the change, which resulted in the following adjustments: • Liabilities in respect of put options (notes 19 and 20) have decreased by £22.3 million at 31 December 2019 (2018: £34.0 million, 2017: £36.4 million) and a charge of £10.8 million in 2019 (2018: £8.5 million, 2017: £11.8 million) recognised in the consolidated income statement within the revaluation and retranslation of financial instruments (note 6). Other reserves on the consolidated balance sheet increased by £59.6 million at 31 December 2019 (2018: £51.5 million, 2017: £45.1 million); • Payments due to vendors (earnout agreements) (notes 19 and 20) have decreased by £10.1 million at 31 December 2019 (2018: £13.9 million, 2017: £46.2 million) and a charge of £2.7 million in 2019 (2018: £32.1 million, 2017: £35.7 million) recognised in the consolidated income statement within the revaluation and retranslation of financial instruments (note 6). Goodwill on the consolidated balance sheet decreased by £60.1 million at 31 December 2019 (2018: £70.2 million, 2017: £78.3 million); and • The goodwill impairment charge (note 3) decreased by £7.4 million in 2018, as a result of the above adjustments that decreased goodwill and payments due to vendors (earnout agreements) on the consolidated balance sheet. • These changes also increases the opening retained earnings balance as at 1 January 2017 by £6.8 million. The restatements described in this note resulted in an increase in the basic and diluted earnings per share from continuing and discontinued operations of 18.6p and 18.4p, respectively, for the year ended 31 December 2019 (2018: decrease of 19.1p and 18.9p, respectively; 2017: increase of 11.7p and 11.5p, respectively). New IFRS accounting pronouncements In the current year, the following Standards and Interpretations became effective: • IFRS 16 Leases; and • IFRIC 23 Uncertainty over Income Tax Treatments. Impact of the Adoption of IFRS 16 leases IFRS 16 is effective from 1 January 2019. The standard eliminates the classification of leases as either operating or finance leases and introduces a single accounting model. Lessees are required to recognise a right-of-use The Group adopted IFRS 16 effective 1 January 2019 on a modified retrospective basis and applied the standard retrospectively with the cumulative effect of initially applying the standard recognised at the date of initial application as an adjustment to retained earnings. Accordingly, prior year financial information has not been restated and will continue to be reported under IAS 17 Leases. The right-of-use right-of-use right-of-use right-of-use When applying IFRS 16, the Group has applied the following practical expedients, on transition date: • Reliance on the previous identification of a lease (as provided by IAS 17) for all contracts that existed on the date of initial application; • Reliance on previous assessments on whether leases are onerous instead of performing an impairment review; • Exclusion of initial direct costs from the measurement of the right-of-use • The accounting for operating leases with a remaining lease term of less than 12 months as at 1 January 2019 as short-term leases; and • The use of hindsight, such as in determining the lease term if the contract contains options to extend or terminate the lease. The right-of-use right-of-use For the year ended 31 December 2019, depreciation of the right-of-use The following table reconciles the opening balance for the lease liabilities as at 1 January 2019 based upon the operating lease obligations as at 31 December 2018: £ million Operating lease commitments at 31 December 2018 3,628.2 Short-term and low value leases not included in lease liabilities (73.8 ) Extension options reasonably certain to be exercised 115.1 Signed leases not yet commenced (598.1 ) Gross lease liabilities at 1 January 2019 3,071.4 Effect of discounting (745.2 ) Lease liabilities at 1 January 2019 2,326.2 The weighted average discount rate was 5.4% at 1 January 2019. Impact of the Adoption of IFRIC 23 Uncertainty over Income Tax Treatments IFRIC 23 clarifies the accounting for uncertainties in income tax and is effective from 1 January 2019. There has been no impact to our financial statements as a result of the adoption of IFRIC 23. At the date of authorisation of these financial statements, the following amendments to standards, which have not been applied in these financial statements, were in issue but not yet effective: — Impact of Interest Rate Benchmark Reform, (Amendments to IFRS 9, IAS 39 and IFRS 7) Impact of Interest Rate Benchmark Reform The amendments issued by the IASB, Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7), are mandatory and are effective from 1 January 2020. They provide relief on specific aspects of pre-replacement issues that impact hedge accounting, whereby entities applying hedge accounting requirements will be able to assume that the interest rate benchmark on which the hedged cash flows and cash flows of the hedging instrument are based are not altered as a result of Interest Rate Benchmark Reform. The Group does not consider that these amendments will have a significant impact on the financial statements as they provide relief for the possible effects of the uncertainty arising from interest rate benchmark reform. Goodwill and other intangible assets Intangible assets comprise goodwill, certain acquired separable corporate brand names, acquired customer relationships, acquired proprietary tools and capitalised computer software not integral to a related item of hardware. Goodwill represents the excess of fair value attributed to investments in businesses or subsidiary undertakings over the fair value of the underlying net assets, including intangible assets, at the date of their acquisition. Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, defined as the higher of fair value less costs to sell and value in use. The net present value of future cash flows 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 impairment is recognised immediately as an expense and is not subsequently reversed. Corporate brand names, customer relationships and proprietary tools acquired as part of acquisitions of businesses are capitalised separately from goodwill as intangible assets if their value can be measured reliably on initial recognition and it is probable that the expected future economic benefits that are attributable to the asset will flow to the Group. Certain corporate brands of the Group are considered to have an indefinite economic life because of the institutional nature of the corporate brand names, their proven ability to maintain market leadership and profitable operations over long periods of time and the Group’s commitment to develop and enhance their value. The carrying value of these intangible assets is reviewed at least annually for impairment and adjusted to the recoverable amount if required. Amortisation is provided at rates calculated to write off the cost less estimated residual value of each asset on a straight-line basis over its estimated useful life as follows: • Brand names (with finite lives) – 10-20 years. • Customer-related intangibles – 3-10 years. • Other proprietary tools – 3-10 years. • Other (including capitalised computer software) – 3-5 years. Contingent consideration Contingent consideration is accounted for in accordance with IFRS 3 Business Combinations. Contingent consideration only applies to situations where contingent payments are not dependent on future employment of vendors and any such payments are expensed when they relate to future employment. Future anticipated payments to vendors in respect of contingent consideration (earnout agreements) are initially recorded at fair value which is the present value of the expected cash outflows of the obligations. The obligations are dependent on the future financial performance of the interests acquired (typically over a four- to five-year period following the year of acquisition) and assume the operating companies improve profits in line with Directors’ estimates. The Directors derive their estimates from internal business plans together with financial due diligence performed in connection with the acquisition. Subsequent adjustments to the fair value are recorded in the consolidated income statement within revaluation and retranslation of financial instruments. Property, plant and equipment Property, plant and equipment are shown at cost less accumulated depreciation and any provision for impairment with the exception of freehold land which is not depreciated. The Group assesses the carrying value of its property, plant and equipment to determine if any impairment has occurred. Where this indicates that an asset may be impaired, the Group applies the requirements of IAS 36 Impairment of Assets in assessing the carrying amount of the asset. This process includes comparing its recoverable amount with its carrying value. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset on a straight-line basis over its estimated useful life, as follows: • Freehold buildings – 50 years. • Leasehold land and buildings – over the term of the lease or life of the asset, if shorter. • Fixtures, fittings and equipment – 3-10 • Computer equipment – 3-5 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 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 to sell 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. Non-current Assets Held for Sale and Discontinued Operations Under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations where certain conditions are met, an asset or disposal group that is for sale should be recognised as “held for sale”. An entity should classify a disposal group as held for sale if the carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the disposal group must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets and its sale must be highly probable. Such assets are measured at the lower of carrying amount and fair value less costs to sell, and are not depreciated or amortised, excluding certain assets that are carried at fair value under IFRS 5. Furthermore, when an associate is classified as held for sale, equity accounting ceases. A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, or is a subsidiary acquired exclusively with a view to resale. The profit or loss from a discontinued operation is shown as a single amount on the face of the income statement and the comparatives and related notes restated accordingly. This represents total post-tax profit of the disposal group for the whole of the financial year including any post-tax gain or loss on the measurement of fair value less costs to sell, as well as the post-tax loss on sale of the disposal group. Assets and liabilities classified as held for sale are shown as a separate line on the balance sheet. Accrued and Deferred Income Accrued income is a contract asset and is recognised when a performance obligation has been satisfied but has not yet been billed. Contract assets are transferred to receivables when the right to consideration is unconditional and billed per the terms of the contractual agreement. In certain cases, payments are received from customers 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 are stated net of provisions for bad and doubtful debts. 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. 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. Under IFRS 9 Financial Instruments, 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, work in progress and accrued income, which are mainly due from large national or multinational companies, the Group assessment of expected credit losses includes provisions for specific clients and receivables where the contractual cash flow is deemed at risk. Additional provisions are made based on the assessment of recoverability of aged receivables, where the following criteria are met: • 100% of the asset aged over 1 year; • 50% of the asset aged between 180 days and 1 year; and • sufficient evidence of recoverability is not evident. Estimated future cash flows represent expectations as at 31 December 2019 and does not consider the impact of the emergence and spread of the C ovid Further details on provisions for bad and doubtful debts are provided in note 18. Foreign currency and interest rate hedging The Group’s policy on interest rate and foreign exchange rate management sets out the instruments and methods available to hedge interest and currency risk exposures and the control procedures in place to ensure effectiveness. The Group uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The Group does not hold or issue derivative financial instruments for speculative purposes. Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each balance sheet date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. At the inception of the hedge relationship the entity documents the relationship between the hedging instrument and hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument that is used in a hedging relationship is highly effective in offsetting changes in fair values or cash flows of the hedged item. Note 27 contains details of the fair values of the derivative instruments used for hedging purposes. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in profit or loss immediately, together with any changes in the fair value of the hedged item that is attributable to the hedged risk. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow or net investment hedges is recognised in other comprehensive income and deferred in equity. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. Amounts deferred in equity are recycled in profit or loss in the periods when the hedged item is recognised in profit or loss. However, when the forecast transaction that is hedged results in the recognition of a non-financial non-financial Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained in equity until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in equity is transferred to net profit or loss for the period. Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of host contracts and the host contracts are not carried at fair value with unrealised gains or losses reported in the consolidated income statement. Liabilities in respect of option agreements Option agreements that allow the Group’s equity partners to require the Group to purchase a non-controlling Derecognition of financial liabilities In accordance with IFRS 9 Financial Instruments, a financial liability of the Group is only released to the consolidated income statement when the underlying legal obligation is extinguished. Debt Interest-bearing debt is recorded at the proceeds received, net of direct issue costs. Borrowing costs Finance costs of borrowing are recognised in the consolidated income statement over the term of those borrowings. Revenue recognition The Group is a leading worldwide creative transformation organisation offering national and multinational clients a comprehensive range of communications, experience, commerce and technology services. Contracts often involve multiple agencies offering different services in different countries. As such, the terms of local, regional and global contracts can vary to meet client needs and regulatory requirements. Consistent with the industry, contracts are typically short-term in nature and tend to be cancellable by either party with 90 days notice. The Group is generally entitled to payment for work performed to date. The Group is generally paid in arrears for its services. Invoices are typically payable within 30 to 60 days. Revenue comprises commissions and fees earned in respect of amounts billed and is stated exclusive of VAT, sales taxes and trade discounts. Pass-through costs comprise fees paid to external suppliers when they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media and data collection costs. Costs to obtain a contract are typically expensed as incurred as the contracts are generally short-term in nature. In most instances, promised services in a contract are not considered distinct or represent a series of services that are substantially the same with the same pattern of transfer to the customer and, as such, are accounted for as a single performance obligation. However, where there are contracts with services that are capable of being distinct, are distinct within the context of the contract, and are accounted for as separate performance obligations, revenue is allocated to each of the performance obligations based on relative standalone selling prices. Revenue is recognised when a performance obligation is satisfied, in accordance with the terms of the contractual arrangement. Typically, performance obligations are satisfied over time as services are rendered. Revenue recognised over time is based on the proportion of the level of service performed. Either an input method or an output method, depending on the particular arrangement, is used to measure progress for each performance obligation. For most fee arrangements, costs incurred are used as an objective input measure of performance. The primary input of substantially all work performed under these arrangements is labour. There is normally a direct relationship between costs incurred and the proportion of the contract performed to date. In other circumstances relevant output measures, such as the achievement of any project milestones stipulated in the contract, are used to assess proportional performance. For our retainer arrangements, we have a stand ready obligation to perform services on an ongoing basis over the life of the contract. The scope of these arrangements are broad and generally are not reconcilable to another input or output criteria. In these instances, revenue is recognised using a time-based method resulting in straight-line revenue recognition. The amount of revenue recognised depends on whether we act as an agent or as a principal. Certain arrangements with our clients are such that our responsibility is to arrange for a third party to provide a specified good or service to the client. In these cases we are acting as an agent as we do not control the relevant good or service before it is transferred to the client. When we act as an agent, the revenue recorded is the net amount retained. Costs incurred with external suppliers (such as production costs and media suppliers) are excluded from revenue and recorded as work in progress until billed. The Group acts as principal when we control the specified good or service prior to transfer. When the Group acts as a principal (such as when supplying in-house out-of-pocket 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. The Group recognises incentive revenue as the related performance obligation is satisfied. 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. Discontinued operations ( Data Investment Management) Revenue for market research services is typically recognised over time based on input measures. For certain performance obligations, output measures such as the percentage of interviews completed, percentage of reports delivered to a client and the achievement of any project milestones stipulated in the contract are used to measure progress. While most of the studies provided in connection with the Group’s market research contracts are undertaken in response to an individual client’s or group of clients’ specifications, in certain instances a study may be developed as an off-the-shelf product offering sold to a broad client base. For these transactions, revenue is recognised when the product is delivered. When the terms of the transaction provide for licensing the right to access a product on a subscription basis, revenue is recognised over the subscription period, typically on a straight-line basis. Taxation Corporate taxes are payable on taxable profits at current rates. The tax expense represents the sum of the tax currently payable and deferred tax. The Group is subject to corporate taxes in a number of different jurisdictions and judgement is required in determining the appropriate provision for transactions where the ultimate tax determination is uncertain. In such circumstances, the Group recognises liabilities for anticipated taxes based on the best information available and where the anticipated liability is both probable and estimable, liabilities are classified as current. Any interest and penalties accrued are included in corporate income taxes both in the consolidated income statement and balance sheet. Where the final outcome of such matters differs from the amount recorded, any differences may impact the income tax and deferred tax provisions in the period in which the final determination is made. The tax laws that apply to the Group’s subsidiaries may be amended by the relevant tax authorities. Such potential amendments are regularly monitored and adjustments are made to the Group’s tax liabilities and deferred tax assets and liabilities where necessary. The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the consolidated income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are recognised for all taxable temporary differences unless specifically excepted by IAS 12 Income Taxes. Deferred tax is charged or credited in the consolidated income statement, except when it relates to items charged or credited to other comprehensive income or directly to equity, in which case the deferred tax is also dealt with in other comprehensive income or equity. Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised, which can require the use of accounting estimation and the exercise of judgement. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or other assets and liabilities (other than in a business combination) in a transaction that affects neither the taxable profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no |
General information
General information | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
General information | 1. General information WPP plc is a company incorporated in Jersey. The address of the registered office is Queensway House, Hilgrove Street, St Helier, Jersey, JE1 1ES and the address of the principal executive office is Sea Containers, 18 Upper Ground, London, United Kingdom, SE1 9GL. The nature of the Group’s operations and its principal activities are set out in note 2. These consolidated financial statements are presented in pounds sterling. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2019 | |
Text block [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. Recent restructuring actions, including the mergers of VMLY&R and Wunderman Thompson, the One Ogilvy strategy and the reorganisation of our specialist healthcare agencies, mean that certain units have been reclassified between the previously reported sectors. In order to take account of these changes, the internal reporting of the Group used by the Chief Executive Officer (the Chief Operating Decision Maker) to review performance and allocate resources has also changed. The Group has therefore reassessed its segment information under IFRS 8 Operating Segments. In assessing the Group’s reportable segments, the Directors have considered the similar economic characteristics of certain operating segments, their shared client base and the similar nature of their products or services, amongst other factors. As a result, the Group is now organised into three reportable segments – Global Integrated Agencies; Public Relations; and Specialist Agencies. The Data Investment Management segment is now excluded from the segment analysis as it is classified as discontinued operations. Comparatives have been restated. Reportable segments Reported contributions were as follows: Continuing operations – Income statement Revenue 1 Revenue pass-through 2 Headline 3 Headline 4 £m £m £m 2019 Global Integrated Agencies 5 10,205.2 8,108.1 1,219.5 15.0% Public Relations 6 956.5 898.0 140.6 15.7% Specialist Agencies 7 2,072.4 1,840.4 200.5 10.9% 13,234.1 1,560.6 2018 8 Global Integrated Agencies 5 9,930.7 8,070.8 1,228.2 15.2% Public Relations 6 931.7 879.9 139.2 15.8% Specialist Agencies 7 2,184.3 1,925.0 283.8 14.7% 13,046.7 1,651.2 2017 8 Global Integrated Agencies 5 10,028.6 8,315.5 1,321.3 15.9% Public Relations 6 915.0 864.3 123.5 14.3% Specialist Agencies 7 2,202.8 1,964.3 348.3 17.7% 13,146.4 1,793.1 Notes 1 Intersegment sales have not been separately disclosed as they are not material. 2 Revenue less pass-through costs is revenue less media, data collection and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are changed directly to clients, predominantly media and data collection costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. 3 A reconciliation from operating profit to headline operating profit is provided in note 32. 4 Headline operating profit margin is calculated as headline operating profit (defined above) as a percentage of revenue less pass-through costs. 5 Global Integrated Agencies includes all of Grey, GroupM, Hogarth, Ogilvy, VMLY&R and Wunderman Thompson. 6 Public Relations represents the Group’s specialists in this area and remains as previously reported but excludes Ogilvy PR which now sits within Global Integrated Agencies as part of Ogilvy. 7 Specialist Agencies represent the Group’s other agencies that specialise in certain areas, whether by region or range of services. 8 Prior year figures have been re-presented Continuing operations – Other information Share-based Capital 1 Depreciation 2 Goodwill 3 Share of Interests in £m £m £m £m £m £m 2019 Global Integrated Agencies 54.3 265.6 392.8 4.8 17.0 164.2 Public Relations 4.6 17.5 31.5 – (0.3 ) 5.5 Specialist Agencies 4 7.1 46.7 84.0 42.9 (2.0 ) 643.3 66.0 329.8 508.3 47.7 14.7 813.0 2018 5 Global Integrated Agencies 59.5 255.6 159.1 142.8 25.4 175.1 Public Relations 7.1 12.5 10.8 – 1.3 6.2 Specialist Agencies 4 11.7 45.9 39.4 33.7 3.8 615.5 78.3 314.0 209.3 176.5 30.5 796.8 2017 5 Global Integrated Agencies 77.8 214.3 157.1 – 16.2 179.9 Public Relations 7.2 9.5 9.8 7.5 0.9 5.6 Specialist Agencies 4 13.3 47.2 42.2 19.6 80.9 879.7 98.3 271.0 209.1 27.1 98.0 1,065.2 Notes 1 Capital additions include purchases of property, plant and equipment and other intangible assets (including capitalised computer software). 2 Depreciation of property, plant and equipment, depreciation of right-of-use assets and amortisation of other intangible assets. 3 Goodwill impairment figures in 2018 have been restated, as described in the accounting policies. 4 Specialist Agencies includes the Kantar associate and amounts previously reported under the Data Investment Management segment. 5 Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. Contributions by geographical area were as follows: Continuing operations 2019 2018 1 2017 1 Revenue 2 North America 3 4,854.7 4,851.7 5,083.5 United Kingdom 1,797.1 1,785.6 1,737.4 Western Continental Europe 2,628.8 2,589.6 2,455.7 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 3,953.5 3,819.8 3,869.8 13,234.1 13,046.7 13,146.4 Revenue less pass-through costs 4 North America 3 4,034.3 4,059.7 4,335.2 United Kingdom 1,390.1 1,393.8 1,390.0 Western Continental Europe 2,176.4 2,182.9 2,063.7 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 3,245.7 3,239.3 3,355.0 Headline operating profit 5 North America 3 662.0 710.6 816.3 United Kingdom 188.5 179.6 218.1 Western Continental Europe 261.5 289.4 249.8 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 448.6 471.6 508.9 1,560.6 1,651.2 1,793.1 Headline operating profit margin 6 Margin Margin 1 Margin 1 North America 16.4% 17.5% 18.8% United Kingdom 13.6% 12.9% 15.7% Western Continental Europe 12.0% 13.3% 12.1% Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 13.8% 14.6% 15.2% Notes 1 Prior year figures have been re-presented 2 Intersegment sales have not been separately disclosed as they are not material. 3 North America includes the US with revenue of £4,576.5 million (2018: £4,576.1 million, 2017: £4,782.0 million), revenue less pass-through costs of £3,806.3 million (2018: £3,836.0 million, 2017: £4,089.9 million) and headline operating profit of £620.6 million (2018: £674.4 million, 2017: £773.5 million). 4 Revenue less pass-through costs is revenue less media, data collection and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are changed directly to clients, predominantly media and data collection costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. 5 A reconciliation from operating profit to headline operating profit is provided in note 32. 6 Headline operating profit margin is calculated as headline operating profit (defined above) as a percentage of revenue less pass-through costs. Continuing operations 2019 £m 2018 £m Non-current 1 North America 2 6,812.6 7,247.0 United Kingdom 1,743.3 2,067.9 Western Continental Europe 3,417.2 4,371.9 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 3,665.7 4,005.9 15,638.8 17,692.7 Notes 1 Non-current 2 North America includes the United States with non-current |
Costs of services and general a
Costs of services and general and administrative costs | 12 Months Ended |
Dec. 31, 2019 | |
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Costs of services and general and administrative costs | 3. Costs of services and general and administrative costs Continuing operations 2019 2018 1 2017 1 Costs of services 10,825.1 10,559.1 10,481.6 General and administrative costs 1,113.1 1, 242 3 1,086.9 11,938.2 11,80 1 4 11,568.5 Costs of services and general and administrative costs include: Continuing operations 2019 2018 1 2017 1 Staff costs (note 5) 7,090.6 6,950.6 7,065.1 Establishment costs 672.9 756.6 769.5 Media pass-through costs 1,656.2 1,458.0 1,429.4 Other costs of services and general and administrative costs 2 2,518.5 2,6 36 2 2,304.5 11,938.2 11,80 1 4 11,568.5 Other costs of services and general and administrative costs include: Continuing operations 2019 2018 1 2017 1 Goodwill impairment (note 14) 3 47.7 176.5 27.1 Investment write-downs 7.5 2.0 91.7 Restructuring and transformation costs 153.5 265.5 56.8 Litigation settlement (16.8 ) – – Gain on sale of freehold property in New York (7.9 ) – – Amortisation and impairment of acquired intangible assets 121.5 201.8 138.0 Amortisation of other intangible assets 21.2 20.7 20.1 Depreciation of property, plant and equipment 185.5 188.6 189.0 Depreciation of right-of-use 301.6 – – Losses on sale of property, plant and equipment 3.2 0.6 1.2 Gains on disposal of investments and subsidiaries (40.4 ) (237.9 ) (98.7 ) (Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership (0.4 ) (2.0 ) 0.3 Net foreign exchange losses/(gains) 6.1 (13.0 ) 8.0 Short-term lease expense 83.8 – – Low-value 2.9 – – Notes 1 Prior year figures have been re-presented Non-current 2 Other costs of services and general and administrative costs include £731.4 million (2018: £713.0 million, 2017: £573.1 million) of other pass-through costs. 3 Figures in 2018 have been restated, as described in the accounting policies. In 2019, operating profit includes credits totalling £26.9 million (2018: £25.6 million, 2017: £40.9 million) relating to the release of excess provisions and other balances established in respect of acquisitions completed prior to 2018. Further details of the Group’s approach to acquisition reserves, as required by IFRS 3 Business Combinations, are given in note 30. Amortisation and impairment of acquired intangibles in 2019 includes an impairment charge in the year of £26.5 million (2018: £89.1 million, 2017: £6.0 million) in regard to certain brand names that are no longer in use and customer relationships where the underlying clients have been lost. In 2019, the goodwill impairment charge of £47.7 million (2018: £176.5 million, 2017: £27.1 million) relates to a number of under-performing businesses in the Group. In certain markets, the impact of current, local economic conditions and trading circumstances on these businesses is sufficiently severe to indicate impairment to the carrying value of goodwill. In 2018, the goodwill impairment charge primarily relates to a charge of £142.8 million on VMLY&R. Investment write-downs of £91.7 million in 2017 include £53.1 million in relation to comScore Inc., which had not released any financial statements in relation to its 2015, 2016 or 2017 results due to an internal investigation by their Audit Committee. In 2017, the market value of comScore Inc. fell below the Group’s carrying value. Other investment write-downs relate to certain non-core Gains on disposal of investments and subsidiaries of £40.4 million in 2019 include a gain of £28.6 million on the disposal of the Group’s interest in Chime. Gains on disposal of investments and subsidiaries of £237.9 million in 2018 include a gain of £185.3 million on the disposal of the Group’s interest in Globant S.A. Gains in 2017 of £98.7 million include £92.3 million on the sale of the Group’s interest in Asatsu-DK Inc. following its acquisition by Bain Capital. In 2019, restructuring and transformation costs of £153.5 million comprise £116.3 million of restructuring costs and £37.2 million transformation costs with respect to strategic initiatives including co-locations right-size In 2018, restructuring and transformation costs of £265.5 million comprise £179.7 million of restructuring costs and £85.8 million transformation costs with respect to strategic initiatives including co-locations In 2017, restructuring and transformation costs of £56.8 million predominantly comprise £33.7 million of severance costs arising from a structural assessment of certain of the Group’s operations, primarily in the mature markets; and £12.8 million of costs resulting from the project to transform and rationalise the Group’s IT services and infrastructure including costs relating to the cyber attack in June 2017. In 2019, the Group received £16.8 million in settlement of a class action lawsuit against Comscore Inc. for providing materially false and misleading information regarding their company and its financial performance. In March 2019, the Group entered into a sale and leaseback agreement for its office space at 3 Columbus Circle in New York. The Group sold the freehold for proceeds of £159.0 million and simultaneously entered into a 15-year lease. The net gain recognised from the sale and leaseback is £7.9 million. Auditors’ remuneration: 2019 2018 2017 Fees payable to the Company’s auditors for the audit of the Company’s annual accounts 1.5 1.4 1.4 The audit of the Company’s subsidiaries pursuant to legislation 28.0 25.2 1 20.7 Other services pursuant to legislation 5.0 4.2 4.0 Fees payable to the auditors pursuant to legislation 34.5 30.8 26.1 Tax advisory services – – 0.1 Tax compliance services – 0.1 0.1 Other services 1 8.2 4.7 4.6 Total non-audit 8.2 4.8 4.8 Total fees 42.7 35.6 30.9 Note 1 Includes a true-up of £3.5 million. 2 Other services include audits for earnout purposes. |
Share of results of associates
Share of results of associates | 12 Months Ended |
Dec. 31, 2019 | |
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Share of results of associates | 4. Share of results of associates Share of results of associates include: Continuing operations 2019 1 £m 2018 2 2017 2 Share of profit before interest and taxation 99.2 110.8 129.7 Share of exceptional (losses)/gains (47.8 ) (41.5 ) 0.6 Share of interest and non-controlling (19.4 ) (15.1 ) (12.6 ) Share of taxation (17.3 ) (23.7 ) (19.7 ) 14.7 30.5 98.0 Notes 1 From 5 December 2019 approximately 90% of the Kantar business is treated as a 40% associate following the completion of the transaction outlined in note 12. 2 Prior year figures have been re-presented Non- c |
Our people
Our people | 12 Months Ended |
Dec. 31, 2019 | |
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Our people | 5. Our people Our staff numbers, including the Kantar disposal group, averaged 132,823 for the year ended 31 December 2019 against 133,903 in 2018 and 134,428 in 2017. Their geographical distribution was as follows: 2019 2018 2017 North America 25,008 25,990 27,399 United Kingdom 14,192 14,331 14,197 Western Continental Europe 26,973 26,825 25,700 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 66,650 66,757 67,132 132,823 133,903 134,428 Their reportable segment distribution was as follows: 2019 2018 2017 Global Integrated Agencies 82,295 83,015 81,537 Data Investment Management 26,325 27,813 28,014 Public Relations 6,890 6,891 6,899 Specialist Agencies 17,313 16,184 17,978 132,823 133,903 134,428 At the end of 2019, staff numbers were 106,786 (2018: 134,281, 2017: 134,413). Staff costs include: Continuing operations 2019 2018 1 2017 1 Wages and salaries 4,946.2 4,828.0 4,937.5 Cash-based incentive plans 227.6 233.0 196.5 Share-based incentive plans 66.0 78.3 98.3 Social security costs 591.7 579.0 580.8 Pension costs 169.7 160.9 161.3 Severance 42.6 30.0 36.8 Other staff costs 2 1,046.8 1,041.4 1,053.9 7,090.6 6,950.6 7,065.1 Notes 1 Prior year figures have been re-presented Non- c 2 Freelance and temporary staff costs are included in other staff costs. Included above are charges of £2.0 million, excluding revision to prior year awards, (2018: £2.0 million, 2017: £12.3 million) for share-based incentive plans in respect of key management personnel (who comprise the Directors of the Group). Total compensation received by key management personnel in respect of 2019 was £4. 7 |
Finance and investment income,
Finance and investment income, finance costs and revaluation and retranslation of financial instruments | 12 Months Ended |
Dec. 31, 2019 | |
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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: Continuing operations 2019 2018 1 2017 1 Income from equity investments 18.3 15.2 16.7 Interest income 80.7 83.7 72.3 99.0 98.9 89.0 Finance costs include: Continuing operations 2019 2018 1 2017 1 Net interest expense on pension plans 3.5 3.6 5.4 Interest on other long-term employee benefits 3.9 3.5 3.3 Interest expense and similar charges 2 252.0 272.0 253.2 Interest expense related to lease liabilities 99.7 – – 359.1 279.1 261.9 Revaluation and retranslation of financial instruments include: Continuing operations 2019 3 2018 1,3 2017 1,3 Movements in fair value of treasury instruments 0.4 (11.0 ) 0.4 Premium on the early repayment of bonds (63.4 ) – – Revaluation of investments held at fair value through profit or loss 9.1 67.8 – Revaluation of put options over non-controlling (24.3) 25.9 39.5 Revaluation of payments due to vendors (earnout agreements) (3.7) 46.1 156.5 Retranslation of financial instruments 245.7 (205.1 ) 194.6 163.8 (76.3 ) 391.0 Notes 1 Prior year figures have been re-presented 2 Interest expense and similar charges are payable on bank overdrafts, bonds and bank loans held at amortised cost. 3 Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. The retranslation of financial instruments includes foreign exchange gains/losses on bonds, cross currency swaps, intercompany loans and bank balances that form part of the Group’s central financing structures. Any foreign exchange gains/losses on operations are recognised in general and administrative costs as set out in note 3. The majority of the Group’s long-term debt is represented by $1,563 million of US dollar bonds at an average interest rate of 4.06%, € 3,100 million of Eurobonds at an average interest rate of 1.82% and £400 million of Sterling bonds at an average interest rate of 2.88%. Average borrowings under the US Dollar Revolving Credit Facilities (note 10) amounted to the equivalent of $72 million at an average interest rate of 1.11% (2018: $125 million at an average interest rate of 0.96%). Average borrowings under the Australian Dollar Revolving Credit Facilities, amounted to A$310 million at an average rate of 2.95% (2018: A$439 million at an average rate of 3.27%). Average borrowings under the US Commercial Paper Programme for 2019 amounted to $41 million at an average interest rate of 2.46% inclusive of margin (2018: $540 million at an average interest rate of 2.28% inclusive of margin). Average borrowings under the Euro Commercial Paper Programme for 2019 amounted to £255 million at an average interest rate of 1.16% inclusive of currency swaps (2018: £nil). |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2019 | |
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Taxation | 7. Taxation In 2019, the effective tax rate on profit before taxation was 22.6% (2018: 25.1%, 2017: 4.4%). The tax charge comprises: Continuing operations 2019 2018 1 2017 1 Corporation tax Current year 423.0 404.2 383.0 Prior years (63.4 ) (108.1 ) (97.2 ) 359.6 296.1 285.8 Deferred tax Current year (78.3 ) (41.5 ) (207.4 ) Prior years (6.3 ) 1.4 4.6 (84.6 ) (40.1 ) (202.8 ) Tax charge 275.0 256.0 83.0 The corporation tax credit for prior years in 2019, 2018 and 2017, mainly comprises the release of a number of provisions following the resolution of tax matters in various countries. The tax charge for the year can be reconciled to profit before taxation in the consolidated income statement as follows: Continuing operations 2019 2 2018 1,2 2017 1,2 Profit before taxation 1,214.3 1,019.3 1,894.0 Tax at the corporation tax rate of 19.0% 3 230.7 193.7 364.6 Tax effect of share of results of associates (2.7 ) (5.8 ) (18.8 ) Irrecoverable withholding taxes 44.7 48.9 31.6 Items that are not deductible/(taxable) in determining taxable profit 51.9 67.2 (39.0 ) Effect of different tax rates in subsidiaries operating in other jurisdictions 77.1 71.2 95.2 US Transition Tax related to unremitted foreign earnings – (4.6 ) 20.1 Effect of change in US tax rate on deferred tax balances – – (211.6 ) Origination and reversal on unrecognised temporary differences (3.4 ) 5.1 (18.9 ) Tax losses not recognised or utilised in the year 13.2 19.9 32.5 Utilisation of tax losses not previously recognised (42.7 ) (25.5 ) (10.4 ) Recognition of temporary differences not previously recognised (24.1 ) (7.4 ) (69.7 ) Release of prior year provisions in relation to acquired businesses (19.9 ) (20.4 ) (15.0 ) Other prior year adjustments (49.8 ) (86.3 ) (77.6 ) Tax charge 275.0 256.0 83.0 Effective tax rate on profit before tax 22.6% 25.1% 4.4% Notes 1 Prior year figures have been re-presented in accordance with IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. 2 Profit before taxation has been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. 3 As the Group is subject to the tax rates of more than one country, it has chosen to present its reconciliation of the tax charge using the UK corporation tax rate of 19.0% (2018: 19.0%, 2017: 19.25%). Factors affecting the tax charge in future years Given the Group’s geographic mix of profits and the changing international tax environment, the tax rate is expected to increase slightly over the next few years. The tax charge may also 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, for example, as a consequence of the financial support programmes being implemented by governments during the Covid-19 crisis, changes arising from the application of existing rules, or challenges by tax or competition authorities, for example, the European Commission’s State Aid decision into the Group Financing Exemption in the UK CFC rules, may expose us to significant additional tax liabilities or impact the carrying value of our deferred tax assets, which would affect the future tax charge. The Group does not currently expect any material additional charges, or credits, to arise in respect of these matters, beyond the amounts already provided. Liabilities relating to these open and judgemental matters are based upon estimates of whether additional taxes will be due after taking into account external advice where appropriate. Where the final tax outcome of these matters is different from the amounts which were initially recorded then such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made. Tax risk management We maintain constructive engagement with the tax authorities and relevant government representatives, as well as active engagement with a wide range of international companies and business organisations with similar issues. We engage advisors and legal counsel to obtain opinions on tax legislation and principles. We have a Tax Risk Management Strategy in place which sets out the controls established and our assessment procedures for decision-making and how we monitor tax risk. We monitor proposed changes in taxation legislation and ensure these are taken into account when we consider our future business plans. Our directors are informed by management of any tax law changes, the nature and status of any significant ongoing tax audits, and other developments that could materially affect the Group’s tax position. |
Ordinary dividends
Ordinary dividends | 12 Months Ended |
Dec. 31, 2019 | |
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Ordinary dividends | 8. Ordinary dividends Amounts recognised as distributions to equity holders in the year: 2019 2018 2017 2019 2018 2017 Per share Pence per share £m £m £m 2018 Final dividend 37.30p 37.30p 37.05p 466.4 464.6 467.2 2019 Interim dividend 22.70p 22.70p 22.70p 284.1 282.8 284.3 60.00p 60.00p 59.75p 750.5 747.4 751.5 Given the significant uncertainty over the coming months, we are taking prudent action now to maintain our liquidity and ensure that we emerge from this global crisis strong, secure, and ready to meet the continuing needs of our clients, shareholders and other stakeholders. Therefore, the Board is suspending the 2019 final dividend of 37.3 pence per share, which was due to be proposed at the 2020 AGM. The payment of dividends will not have any tax consequences for the Group. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2019 | |
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Earnings per share | 9. Earnings per share Basic EPS The calculation of basic EPS is as follows: Continuing operations 2019 1 2018 1 2017 1 Earnings 2 860.1 698.2 1,726.6 Weighted average shares used in basic EPS calculation (million) 1,250.0 1,247.8 1,261.1 EPS 68.8p 56.0p 136.9p Discontinued operations 2019 2018 2017 Earnings 2 (3.8 ) 126.4 237.1 Weighted average shares used in basic EPS calculation (million) 1,250.0 1,247.8 1,261.1 EPS (0.3p ) 10.1p 18.8p Continued and discontinued operations 2019 1 2018 1 2017 1 Earnings 2 856.3 824.6 1,963.7 Weighted average shares used in basic EPS calculation (million) 1,250.0 1,247.8 1,261.1 EPS 68.5p 66.1p 155.7p Note s 1 Earnings figures have been restated as described in the accounting policies. 2 Earnings is equivalent to profit for the year attributable to equity holders of the parent. Diluted EPS The calculation of diluted reported and diluted EPS is as follows: Continuing operations 2019 1 2018 1 2017 1 Diluted earnings 860.1 698.2 1,726.6 Weighted average shares used in diluted EPS calculation (million) 1,260.6 1,261.2 1,275.8 Diluted EPS 68.2p 55.4p 135.3p Discontinued operations 2019 2018 2017 Diluted earnings (3.8 ) 126.4 237.1 Weighted average shares used in diluted EPS calculation (million) 1,260.6 1,261.2 1,275.8 Diluted EPS (0.3p ) 10.0p 18.6p Continued and discontinued operations 2019 1 2018 1 2017 1 Diluted earnings 856.3 824.6 1,963.7 Weighted average shares used in diluted EPS calculation (million) 1,260.6 1,261.2 1,275.8 Diluted EPS 67.9p 65.4p 153.9p Note 1 Earnings figures have been restated as described in the accounting policies. Diluted EPS has been calculated based on the diluted earnings amounts above. At 31 December 2019, options to purchase 19.3 million ordinary shares (2018: 16.9 million, 2017: 8.2 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: 2019 2018 2017 Average shares used in basic EPS calculation 1,250.0 1,247.8 1,261.1 Dilutive share options outstanding 0.3 1.6 1.8 Other potentially issuable shares 10.3 11.8 12.9 Shares used in diluted EPS calculation 1,260.6 1,261.2 1,275.8 At 31 December 2019 there were 1,328,167,813 (2018: 1,332,678,227, 2017: 1,332,511,552) ordinary shares in issue, including treasury shares of 70,787,730 (2018: 70,854,553, 2017: 62,578,938). |
Sources of finance
Sources of finance | 12 Months Ended |
Dec. 31, 2019 | |
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Sources of finance | 10. Sources of finance The following table summarises the equity and debt financing of the Group, and changes during the year: Shares Debt Analysis of changes in financing 2019 2018 2019 2018 £m Beginning of year 703.0 701.8 6,217.9 6,481.3 Ordinary shares issued 0.6 1.2 – – Share cancellations (0.5 ) – – – Net decrease in drawings on bank loans and corporate bonds – – (1,713.2 ) (440.6 ) Amortisation of financing costs included in debt – – 10.3 7.7 Changes in fair value due to hedging arrangements – – 14.3 (9.9 ) Other movements – – 1.5 (0.2 ) Exchange adjustments – – (257.9 ) 179.6 End of year 703.1 703.0 4,272.9 6,217.9 Note The table above excludes bank overdrafts which fall within cash and cash equivalents for the purposes of the consolidated cash flow statement. Shares At 31 December 2019, the Company’s share base was entirely composed of ordinary equity share capital and share premium of £703.1 million (2018: £703.0 million), further details of which are disclosed in note 28. Debt US$ bonds Eurobonds € 750 million of 3.00% bonds due November 2023, € 500 million of 1.375% bonds due March 2025, € 750 million of 2.25% bonds due September 2026, € 600 million of 1.625% bonds due March 2030, € 250 million of Floating Rate Notes carrying a coupon of 3m EURIBOR + 0.32% due May 2020 and € 250 million of Floating Rate Notes carrying a coupon of 3m EURIBOR +0.45% due March 2022. Sterling bonds Revolving Credit Facility . May Borrowings under the $2.5 billion Revolving Credit Facility are governed by certain financial covenants based on the results and financial position of the Group. Borrowings under the A$150 million Revolving Credit Facility and the A$270 million Revolving Credit Facility are governed by certain financial covenants based on the results and financial position of WPP AUNZ. The $2.5 billion Revolving Credit Facility, due March 2024, includes terms which require the consent of US Commercial Paper Programmes The Group operates a commercial paper programmes using its Revolving Credit Facility as a backstop. The average US commercial paper outstanding in 2019 was $41 million (2018: $540 million). The average Euro commercial paper outstanding in 2019 was £255 million (2018: £nil) inclusive of the effect of currency swaps. There was no US or Euro Commercial Paper outstanding at 31 December 2019. 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: 2019 2018 £m Within one year (324.8 ) (748.4 ) Between one and two years (204.0 ) (596.8 ) Between two and three years (692.1 ) (937.1 ) Between three and four years (726.3 ) (742.5 ) Between four and five years (634.2 ) (786.8 ) Over five years (2,761.9 ) (4,199.7 ) Debt financing (including interest) under the Revolving Credit Facility and in relation to unsecured loan notes (5,343.3 ) (8,011.3 ) Short-term overdrafts – within one year 1 (8, 572 ) (8, 864 ) Future anticipated cash flows (13,9 15 ) (16, 875 ) Effect of discounting/financing rates 1,070.4 1,793.4 Debt financing (12, 845 ) (15, 082 ) Note 1 Figures have been restated to be in accordance with IAS 32 Financial Instruments: Presentation, as described in the accounting policies. Analysis of fixed and floating rate debt by currency including the effect of interest rate and cross-currency swaps: 2019 Currency £m Fixed 1 Floating Period 1 $ – fixed 1,178.2 4.06 n/a 95 £ – fixed 844.1 2.73 n/a 188 € – fixed 1,777.7 2.34 n/a 82 – floating 423.3 n/a EURIBOR 16 Other 49.6 n/a n/a n/a 4,272.9 2018 Currency £m Fixed 1 Floating Period 1 $ – fixed 1,154.8 4.58 n/a 181 – floating 1,029.6 n/a LIBOR n/a £ – fixed 1,044.1 3.43 n/a 232 € – fixed 2,425.9 1.99 n/a 75 – floating 449.2 n/a EURIBOR n/a Other 114.3 n/a n/a n/a 6,217.9 Note 1 Weighted average. These rates do not include the effect of gains on interest rate swap terminations that are written to income over the life of the original instrument. The following table is an analysis of future 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 2019 Payable Receivable Payable Receivable Within one year 113.6 107.8 44.0 45.0 Between one and two years 17.5 10.9 – – Between two and three years 11.8 6.2 – – Between three and four years 11.6 6.1 – – Between four and five years 11.6 6.1 – – Over five years 449.8 456.3 – – 615.9 593.4 44.0 45.0 Financial liabilities Financial assets 2018 Payable Receivable Payable Receivable Within one year 229.3 221.9 124.6 120.6 Between one and two years 50.0 45.3 11.8 6.5 Between two and three years 688.4 685.3 11.5 6.4 Between three and four years 408.5 406.6 11.6 6.5 Between four and five years – – 11.6 6.6 Over five years – – 461.4 498.2 1,376.2 1,359.1 632.5 644.8 |
Analysis of cash flows
Analysis of cash flows | 12 Months Ended |
Dec. 31, 2019 | |
Text block [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-17. Net cash from operating activities: 2019 1 2018 1 2017 1 Profit for the year 950.1 901.1 2,059.4 Taxation 353.8 323.9 197.0 Revaluation and retranslation of financial instruments (154.4 ) 72. 8 (409.3 ) Finance costs 376.4 289.3 269.8 Finance and investment income (102.6 ) (104.8 ) (95.2 ) Share of results of associates (21.2 ) (43.5 ) (113.5 ) Goodwill impairment on classification as held for sale 94.5 – – Gain on sale of discontinued operations (73.8 ) – – Attributable tax expense on sale of discontinued operations 157.4 – – Adjustments for: Non-cash 71.4 84.8 105.0 Depreciation of property, plant and equipment 203.2 225.1 230.7 Depreciation of right-of-use 317.9 – – Impairment of goodwill 47.7 176.5 27.1 Amortisation and impairment of acquired intangible assets 135.6 280.0 195.1 Amortisation of other intangible assets 29.6 38.7 36.3 Investment write-downs 7.5 2.0 95.9 Gains on disposal of investments and subsidiaries (45.1 ) (235.5 ) (129.0 ) (Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership (0.4 ) (2.0 ) 0.3 Gain on sale of freehold property in New York (7.9 ) – – Losses on sale of property, plant and equipment 3.2 0.6 1.1 Decrease/(increase) in trade receivables and accrued income 159.0 (298. 9 ) (90.4 ) Increase/(decrease) in trade payables and deferred income 394.7 500.9 (170.8 ) Increase in other receivables (263.8 ) (52.9 ) (110.6 ) Decrease in other payables – short-term (16.4 ) (31.8 ) (122.8 ) Increase in other payables – long-term 53.7 0.4 20.1 Increase/(decrease) in provisions 23.1 48.0 (57.3 ) Corporation and overseas tax paid (536.0 ) (383.6 ) (424.7 ) Payment on early settlement of bonds (63.4 ) – – Interest and similar charges paid (270.6 ) (252.8 ) (246.6 ) Interest paid on lease liabilities (105.1 ) – – Interest received 80.8 90.4 76.9 Investment income 18.3 15.4 16.8 Dividends from associates 33.3 49.7 46.8 Net cash inflow from operating activities 1,850.5 1,693.8 1,408.1 Note 1 Figures have been restated , Acquisitions and disposals: 2019 2018 2017 Initial cash consideration (3.9 ) (126.7 ) (214.8 ) Cash and cash equivalents acquired – 11.3 28.9 Earnout payments (130.2 ) (120.2 ) (199.1 ) Purchase of other investments (including associates) (27.2 ) (48.1 ) (92.5 ) Acquisitions (161.3 ) (283.7 ) (477.5 ) Proceeds on disposal of investments and subsidiaries 1 2,468.5 849.0 296.0 Cash and cash equivalents disposed (327.5 ) (15.1 ) – Disposals of investments and subsidiaries 2,141.0 833.9 296.0 Cash consideration for non-controlling (62.7 ) (109.9 ) (47.3 ) Net acquisition payments and disposal proceeds 1,917.0 440.3 (228.8 ) Note 1 Proceeds on disposal of investments and subsidiaries includes return of capital from investments in associates. Share repurchases and buybacks: 2019 2018 2017 Purchase of own shares by ESOP Trusts – (102.8 ) (214.6 ) Shares purchased into treasury (43.8 ) (104.3 ) (289.6 ) Net cash outflow (43.8 ) (207.1 ) (504.2 ) Net (decrease)/increase in borrowings: 2019 2018 2017 (Decrease)/increase in drawings on bank loans (70.6) (819.3) 785.6 Repayment of € 600 million bonds (512.7) – – Repayment of $812 million bonds (618.8) – – Partial repayment of $272 million bonds (135.4) (20.8) – Partial repayment of $450 million bonds (176.2) (37.3) – Repayment of £200 million bonds (199.5) – – Proceeds from issue of € 250 million bonds – 218.8 214.0 Proceeds from issue of € 500 million bonds – 438.0 – Repayment of € 252 million bonds – (220.0 ) – Repayment of £400 million bonds – – (400.0 ) Net cash (outflow)/inflow (1,713.2 ) (440.6 ) 599.6 Cash and cash equivalents: 2019 1 2018 1 2017 1 Cash at bank and in hand 10,442.1 10,433.4 11,509.2 Short-term bank deposits 863.6 632.4 341.8 Overdrafts 2 (8,5 7 ) (8,864.6 ) (9,852.8 ) 2,733.3 2,201.2 1,998.2 Notes 1 Figures have been restated to be in accordance with IAS 32 Financial Instruments: Presentation, as described in the accounting policies. 2 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. |
Assets held for sale and discon
Assets held for sale and discontinued operations | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Assets held for sale and discontinued operations | 12. Assets held for sale and discontinued operations In July 2019, the Group announced the proposed sale of its Kantar business to Bain Capital. On 5 December 2019 the first stage of the transaction completed, consisting of approximately 90% of the Kantar group, with consideration of £2,140.2 million after tax and disposal costs. The sale involved the Group disposing of the Kantar business and holding a 40% equity stakes post-transaction which are treated as an associate. This generated a pre-tax gain of £73.8 million, tax charge of £157.4 million and goodwill impairment of £94.5 million for the Group. The remaining stages of the transaction are expected to complete in 2020 with further consideration expected to be approximately £200 million after tax and disposal costs. As outlined in the accounting policies, the criterion of a highly probable sale was met on 9 July 2019, following Board approval of the disposal of Kantar to Bain Capital, representing the date at which the appropriate level of management was committed to a plan to sell the disposal group. The Kantar disposal group therefore became held for sale on this date. The Kantar group (both the portion that has been disposed of by year end and the portion that is expected to be disposed of in 2020) is classified as a discontinued operation in 2019 under IFRS 5 as it forms a separate major line of business and there was a single co-ordinated plan to dispose of it. Kantar represents materially all of the Data Investment Management segment of the Group. As at 31 December 2019 the remaining portion of the company not yet sold is disclosed as held for sale. Results of the discontinued operations, which have been included in profit for the year, were as follows: 2019 2018 2017 Revenue 2,387.5 2,555.7 2,657.8 Costs of services (1,951.5 ) (2,104.4 ) (2,147.4 ) Gross profit 436.0 451.3 510.4 General and administrative costs (151.7 ) (257.8 ) (180.1 ) Operating profit 284.3 193.5 330.3 Share of results of associates 6.5 13.0 15.5 Profit before interest and taxation 290.8 206.5 345.8 Finance income 3.6 5.4 6.2 Finance costs (17.3 ) (9.7 ) (7.9 ) Revaluation and retranslation of financial instruments (9.4 ) 3.5 18.3 Profit before taxation 267.7 205.7 362.4 Attributable tax expense (78.8 ) (67.9 ) (114.0 ) Profit after taxation 188.9 137.8 248.4 Goodwill impairment on classification as held for sale 1 (94.5 ) – – Gain on sale of discontinued operations 73.8 – – Attributable tax expense on sale of discontinued operations (157.4 ) – – Net gain attributable to discontinued operations 10.8 137.8 248.4 Attributable to Equity holders of the parent (3.8 ) 126.4 237.1 Non-controlling 14.6 11.4 11.3 10.8 137.8 248.4 Note 1 Goodwill impairment of £94.5 million arose from the assessment of fair value less costs to sell under IFRS 5. For the year ended 31 December 2019, the Kantar group contributed £322.9 million (2018: £292.5 million, 2017: £378.4 million) to the Group’s net operating cash flows, paid £53.2 million (2018: £59.5 million, 2017: £67.8 million) in respect of investing activities and paid £27.2 million (2018: £7.9 million, 2017: £9.1 million) in respect of financing activities. The gain on sale of discontinued operations disposed by 31 December 2019 is calculated as follows: 2019 Intangible assets (including goodwill) 2,410.0 Property, plant and equipment 115.7 Right-of-use 103.5 Interests in associates and joint ventures 92.3 Other investments 11.5 Deferred tax assets 44.1 Corporate income tax recoverable 49.8 Trade and other receivables 748.8 Cash and cash equivalents 324.9 Trade and other payables (839.8 ) Corporate income tax payable (48.2 ) Lease liabilities (106.3 ) Deferred tax liabilities (98.6 ) Provisions for post-employment benefits (26.7 ) Provisions for liabilities and charges (22.4 ) Net assets 2,758.6 Non-controlling (19.1 ) Net assets excluding non-controlling 2,739.5 Consideration received in cash and cash equivalents 2,352.1 Re-investment in equity stake 1 231.7 Transaction costs (56.1 ) Deferred consideration 2 1.6 Total consideration received 2,529.3 Loss on sale before exchange adjustments (210.2 ) Exchange adjustments recycled to the income statement 284.0 Gain on sale of discontinued operation 73.8 Notes 1 Re-investment in equity stake represents the value of the Group’s 40% stake in the new Kantar group as part of the disposal. 2 Deferred consideration is made up of £79.6 million expected to be received in future periods on the satisfaction of certain conditions and the deferral of £78.0 million consideration against services the Group will supply to Kantar on favourable terms in the future. The conditions expected to be met in the future include the settlement of ongoing legal cases, realisation of the value of certain investments and the utilisation of certain tax losses and allowances. There was uncertainty at the date of disposal in regard to the ultimate resolution of these items and estimates of amounts due to be received were required to be made; there were no individually material estimates. Future services provided by the Group to Kantar arose through the negotiation of Transition Service Arrangements, as is customary for a disposal of this magnitude. The Group will support Kantar for a period of up to 4 years, primarily in the area of IT, on terms which are favourable to the disposal group. As such, an element of consideration has been deferred and will be recognised as the services are provided. The major classes of assets and liabilities comprising the operations classified as held for sale at 31 December 2019 are as follows: 2019 Non-current Intangible assets: Goodwill 155.4 Other 5.9 Property, plant and equipment 12.8 Right-of-use 25.7 Interests in associates and joint ventures 4.6 Other investments 0.6 Deferred tax assets 5.9 Trade and other receivables 2.6 213.5 Current assets Corporate income tax recoverable 15.9 Trade and other receivables 189.4 Cash and short-term deposits 66.5 271.8 Total assets classified as held for sale 485.3 Current liabilities Trade and other payables (130.4 ) Corporate income tax payable (3.8 ) Bank overdrafts (0.2 ) Short-term lease liabilities (3.9 ) (138.3 ) Non-current Trade and other payables (1.3 ) Deferred tax liabilities (1.2 ) Provisions for post-employment benefits (8.5 ) Provisions for liabilities and charges (0.6 ) Long-term lease liabilities (20.5 ) (32.1 ) Total liabilities associated with assets classified as held for sale (170.4 ) Net assets of disposal group 314.9 On 27 February 2020, the second stage of the Kantar transaction completed, consisting of approximately 4% of the Kantar g |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Leases | 13. Leases The movements in the year ended 31 December 2019 were as follows: Right-of-use Land and Plant and Total 1 January 2019 1,862.5 32.6 1,895.1 Additions 348.1 16.5 364.6 Transfers to net investment in subleases 1 (37.6 ) – (37.6 ) Disposals (31.0 ) (0.6 ) (31.6 ) Depreciation of right-of-use (301.5 ) (16.4 ) (317.9 ) Transfer to disposal group classified as held for sale (134.4 ) (3.7 ) (138.1 ) 31 December 2019 1,706.1 28.4 1,734.5 Note 1 The sublease of certain office space is classified as a finance lease and relates primarily to Kantar business units that were sold. The Company de-recognised the right-of-use asset (to the extent that it is subject to the sublease) and recognised the net investment in subleases, which is included within trade and other receivables. No other disclosures are deemed necessary as it is not material. Lease liabilities Land and Plant and Total 1 January 2019 2,294.4 31.8 2,326.2 Additions 325.9 12.3 338.2 Interest expense related to lease liabilities 101.5 1.2 102.7 Disposals (27.5 ) (0.2 ) (27.7 ) Repayment of lease liabilities (including interest) (326.2 ) (14.9 ) (341.1 ) Transfer to disposal group classified as held for sale (144.7 ) (3.9 ) (148.6 ) 31 December 2019 2,223.4 26.3 2,249.7 The following table shows the breakdown of the lease expense between amounts charged to operating profit and amounts charged to finance costs: Continuing operations 2019 £m Depreciation of right-of-use Land and buildings (286.5 ) Plant and machinery (15.1 ) Short-term lease expense (83.8 ) Low-value (2.9 ) Variable lease expense (74.2 ) Sublease income 17.5 Charge to operating profit (445.0 ) Interest expense related to lease liabilities (99.7 ) Charge to profit before taxation for leases (544.7 ) Variable lease payments primarily include real estate taxes and insurance costs. The maturity of lease liabilities at 31 December 2019 were as follows: 2019 Period ending 31 December 2020 385.9 2021 384.0 2022 335.4 2023 283.0 2024 220.5 Later years 1,393.7 3,002.5 Effect of discounting (752.8 ) Lease liability at 31 December 2019 2,249.7 Short-term lease liability 302.2 Long-term lease liability 1,947.5 The total committed future cash flows for leases not yet commenced at 31 December 2019 is £558.0 million. The Group does not face a significant liquidity risk with regard to its lease liabilities. Refer to note 26 for management of liquidity risk. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Intangible assets | 14. Intangible assets Goodwill The movements in 2019 and 2018 were as follows: £m 1 Cost 1 January 2018 13,597. 0 Additions 2 154.4 Revision of earnout estimates (67.6 ) Exchange adjustments 368. 1 31 December 2018 14,051.9 Additions 2 8.5 Revision of earnout estimates (14.1 ) Disposals (18.6 ) Transfer to disposal group classified as held for sale (2,7 2 1 ) Exchange adjustments (41 0.0 ) 31 December 2019 10,888.6 Accumulated impairment losses and write-downs 1 January 2018 722.4 Impairment losses for the year 176.5 Exchange adjustments 20.4 31 December 2018 919.3 Impairment on classification as held for sale 3 70.9 Impairment losses for the year 47.7 Transfer to disposal group classified as held for sale (230.6 ) Exchange adjustments (29.3 ) 31 December 2019 778.0 Net book value 31 December 2019 10,110.6 31 December 2018 13,132.6 1 January 201 8 12,874.6 Notes 1 Figures have been restated, as described in the accounting policies. 2 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. 3 Goodwill impairment of £70.9 million arose from the assessment of fair value less costs to sell of the Kantar group on classification as held for sale under IFRS 5. Other intangible assets The movements in 2019 and 2018 were as follows: Brands Acquired Other Total Cost 1 January 2018 1,081.3 2,547.8 411.5 4,040.6 Additions – – 60.4 60.4 Disposals – (0.9 ) (37.3 ) (38.2 ) New acquisitions – 40.3 – 40.3 Other movements 1 – 2.9 (7.4 ) (4.5 ) Exchange adjustments 51.5 19.9 10.1 81.5 31 December 2018 1,132.8 2,610.0 437.3 4,180.1 Additions – – 43.2 43.2 Disposals – (3.4 ) (41.0 ) (44.4 ) New acquisitions – 3.5 – 3.5 Other movements – (1.4 ) (1.4 ) Exchange adjustments (41.4 ) (28.2 ) (9.9 ) (79.5 ) Transfer to disposal group classified as held for sale – (979.0 ) (115.9 ) (1,094.9 ) 31 December 2019 1,091.4 1,602.9 312.3 3,006.6 Amortisation and impairment 1 January 2018 – 1,718.7 303.5 2,022.2 Charge for the year – 275.8 38.7 314.5 Disposals – (0.7 ) (27.3 ) (28.0 ) Other movements – – (1.9 ) (1.9 ) Exchange adjustments – 21.4 9.9 31.3 31 December 2018 – 2,015.2 322.9 2,338.1 Charge for the year 13.2 116.8 29.6 159.6 Disposals – (1.6 ) (37.7 ) (39.3 ) Other movements – – 2.6 2.6 Exchange adjustments – (15.2 ) (9.1 ) (24.3 ) Transfer to disposal group classified as held for sale – (835.9 ) (63.0 ) (898.9 ) 31 December 2019 13.2 1,279.3 245.3 1,537.8 Net book value 31 December 2019 1,078.2 323.6 67.0 1,468.8 31 December 2018 1,132.8 594.8 114.4 1,842.0 1 January 2018 1,081.3 829.1 108.0 2,018.4 Note 1 Other movements in acquired intangibles include revisions to fair value adjustments arising on the acquisition of subsidiary undertakings that had been determined provisionally at the immediately preceding balance sheet date, as permitted by IFRS 3 Business Combinations. Cash-generating units with significant goodwill and brands with an indefinite useful life as at 31 December are: Goodwill Brands with an 2019 1 2018 1 2019 2018 GroupM 2,921.7 2,928.6 – – Kantar – 2,513.0 – – Wunderman Thompson 2,121.9 2,101.8 409.7 424.8 VMLY&R 901.0 930.4 199.1 206.6 Ogilvy 758.6 614.4 211.1 219.1 Burson Cohn & Wolfe 739.3 711.9 130.2 135.4 Other 2,668.1 3,332.5 128.1 146.9 Total goodwill 10,110.6 13,132.6 1,078.2 1,132.8 Note 1 Figures have been restated, as described in the accounting policies. Other goodwill represents goodwill on a large number of cash-generating units, none of which is individually significant in comparison to the total carrying value of goodwill. Separately identifiable brands with an indefinite life are carried at historical cost in accordance with the Group’s accounting policy for intangible assets. The carrying values of the 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 2019 include brand names of £218.6 million (2018: £361.2 million), customer-related intangibles of £100.6 million (2018: £220.6 million), and other assets (including proprietary tools) of £4.4 million (2018: £13.0 million). The total amortisation and impairment of acquired intangible assets of £121.5 million (2018: £201.8 million) includes an impairment charge of £26.5 million (2018: £89.1 million) comprising £21.4 million in regard to certain brand names that are no longer in use, including £13.2 million for brands with an indefinite life and £5.1 million in regard to customer relationships where the underlying clients have been lost. £13.2 million of the impairment charge relates to the Public Relations segment, £13.0 million of the impairment charge relates to the Global Integrated Agencies segment, and £0.3 million relates to the Specialist Agencies segment. In addition, the total amortisation and impairment of acquired intangible assets includes £5.6 million (2018: £3.7 million) in relation to associates. In accordance with the Group’s accounting policy, the carrying values of goodwill and intangible assets with indefinite useful lives are reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment review is undertaken annually on 30 September. The goodwill impairment charge of £47.7 million (2018: £176.5 million) relates to a number of under-performing businesses in the Group. In certain markets, the impact of local economic conditions and trading circumstances on these businesses was sufficiently severe to indicate impairment to the carrying value of goodwill. In 2018, the goodwill impairment charge primarily relates to a charge of £142.8 million on VMLY&R with the remaining £33.7 million relating to a number of under-performing businesses in the Group. Under IFRS, an impairment charge is required for both goodwill and other indefinite-lived assets when the carrying amount exceeds the ‘recoverable amount’, defined as the higher of fair value less costs to sell and value in use. 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. Due to a significant number of cash-generating units, the impairment test was performed in two steps. In the first step, the recoverable amount was calculated for each cash generating unit using a conservative pre-tax discount rate of 8.5% (2018: 9.0%), and assumed a long term growth rate of 3.0% (2018: 3.0%). The pre-tax discount rate of 8.5% was above the range of rates calculated for each of the global networks and for smaller cash-generating units that operate primarily in a particular region where we calculated a discount rate to be higher than 8.5%, that higher discount rate was used in the impairment test. Management have made the judgement that the long-term growth rate does not exceed the long-term average growth rate for the industry. The recoverable amount was then compared to the carrying amount. Cash-generating units where the recoverable amount exceeded the carrying amount by a considerable margin were not considered to be impaired. Those cash-generating units where the recoverable amount did not exceed the carrying amount or where the recoverable amount exceeded the carrying amount by less than 25% were then further reviewed in the second step. In the second step, the cash-generating units were retested for impairment using more specific assumptions. This included using a cash-generating unit 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 3.0% (2018: 3.0%). If the recoverable amount using the more specific assumptions did not exceed the carrying value of a cash-generating unit, an impairment charge was recorded. Pre-tax discount rates were calculated for the geographic regions in which the cash-generating units operate based on market assessments of the weighted average cost of capital. These assessments considered the time-value of money and risks specific to the asset for which the future cash flow estimates had not been adjusted, giving a range of pre-tax discount rates from 4.1% to 13.6% (2018: 6.2% to 16.3%). Discount rates for each of the cash-generating units that operate globally were based on a weighting of the regional rates by its geographic distribution of cash flows, ranging from 6.3% to 7.4% (2018: 8.0% to 8.7%). The cash-generating units were initially tested for impairment in the first step using a conservative discount rate of 8.5% (2018: 9.0%). Our approach in determining the recoverable amount utilises a discounted cash flow methodology, which necessarily involves making numerous estimates and assumptions regarding revenue growth, operating margins, appropriate discount rates and working capital requirements. The key assumptions used for estimating cash flow projections in the Group’s impairment testing are those relating to revenue growth and operating margin. The key assumptions take account of the businesses’ expectations for the projection period. These expectations consider the macroeconomic environment, industry and market conditions, the unit’s historical performance and any other circumstances particular to the unit, such as business strategy and client mix. These estimates will likely differ from future actual results of operations and cash flows, and it is possible that these differences could be material. In addition, judgements are applied in determining the level of cash-generating unit identified for impairment testing and the criteria used to determine which assets should be aggregated. A difference in testing levels could affect whether an impairment is recorded and the extent of impairment loss. 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. The recoverable amount of goodwill represents valuations as at 31 December 2019 and does not consider the impact of the emergence and spread of the Covid-19 virus. Given the adverse impact of the Covid-19 pandemic on the global economy and the likely revenue declines that are expected as a result, there is an increased likelihood of impairments to goodwill and other indefinite lived intangible assets in future reporting periods. At the current time, given the level of uncertainty, such impact has not been quantified and any resulting impairment loss could have a material impact on the Group’s financial condition and results of operations. Historically our impairment losses have resulted from a specific event, condition or circumstance in one of our companies, such as the loss of a significant client. As a result, changes in the assumptions used in our impairment model have not had a significant effect on the impairment charges recognised and a reasonably possible change in assumptions would not lead to a significant impairment. 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, 2019 | |
Text block [abstract] | |
Property, plant and equipment | 15. Property, plant and equipment The movements in 2019 and 2018 were as follows: Land Freehold Leasehold Fixtures, Computer equipment Total Cost 1 January 2018 37.1 118.8 1,081.8 377.2 703.0 2,317.9 Additions – 17.7 161.4 49.9 85.8 314.8 New acquisitions – 0.1 0.9 1.2 0.9 3.1 Disposals – – (83.5 ) (62.9 ) (109.3 ) (255.7 ) Exchange adjustments – (1.1 ) 41.8 9.9 10.0 60.6 31 December 2018 37.1 135.5 1,202.4 375.3 690.4 2,440.7 Additions – 33.7 158.5 35.0 67.7 294.9 New acquisitions – – – 0.1 – 0.1 Disposals – (109.0 ) (167.3 ) (68.3 ) (76.3 ) (420.9 ) Transfer to disposal group classified as held for sale (2.8 ) (17.1 ) (98.1 ) (115.2 ) (231.5 ) (464.7 ) Exchange adjustments – (16.9 ) (46.7 ) (14.5 ) (26.4 ) (104.5 ) 31 December 2019 34.3 26.2 1,048.8 212.4 423.9 1,745.6 Depreciation 1 January 2018 – 28.5 526.1 236.9 546.9 1,338.4 Charge for the year – 3.1 91.5 44.4 86.1 225.1 Disposals – – (74.6 ) (58.0 ) (107.9 ) (240.5 ) Exchange adjustments – (4.5 ) 24.3 6.4 8.5 34.7 31 December 2018 – 27.1 567.3 229.7 533.6 1,357.7 Charge for the year – 1.5 79.9 36.3 67.8 185.5 Disposals – (7.2 ) (129.9 ) (59.9 ) (74.5 ) (271.5 ) Transfer to disposal group classified as held for sale – (15.6 ) (56.1 ) (81.7 ) (192.6 ) (346.0 ) Exchange adjustments – (1.6 ) (17.9 ) (13.2 ) (23.4 ) (56.1 ) 31 December 2019 – 4.2 443.3 111.2 310.9 869.6 Net book value 31 December 2019 34.3 22.0 605.5 101.2 113.0 876.0 31 December 2018 37.1 108.4 635.1 145.6 156.8 1,083.0 1 January 2018 37.1 90.3 555.7 140.3 156.1 979.5 At 31 December 2019, capital commitments contracted, but not provided for in respect of property, plant and equipment , million |
Interests in associates, joint
Interests in associates, joint ventures and other investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments accounted for using equity method [abstract] | |
Interests in associates, joint ventures and other investments | 16. Interests in associates, joint ventures and other investments The movements in 2019 and 2018 were as follows: Interests in Other 1 January 2018 1,065.2 1,153.5 Additions 16.7 35.0 Share of results of associate undertakings 43.5 – Dividends (49.7 ) – Other movements 1.2 – Reclassification from other investments to associates 0.3 (0.3 ) Exchange adjustments 12.9 – Disposals (304.0 ) (341.7 ) Reclassification to subsidiaries 16.9 – Revaluation of other investments through profit or loss – 68.1 Revaluation of other investments through other comprehensive income – (247.9 ) Amortisation of other intangible assets (4.2 ) – Write-downs (2.0 ) – 31 December 2018 796.8 666.7 Additions 236.6 18. 3 Share of results of associate undertakings 21.2 – Dividends (33.3 ) – Other movements 1.2 – Exchange adjustments (35.5 ) – Disposals (51.5 ) (42.3 ) Reclassification to subsidiaries (0.3 ) – Revaluation of other investments through profit or loss – 9.1 Revaluation of other investments through other comprehensive income – (141.4 ) Amortisation of other intangible assets (5.6 ) – Transfer to disposal group classified as held for sale (109.1 ) (12.1 ) Write-downs (7.5 ) – 31 December 2019 813.0 498.3 The investments included above as “other investments” represent investments in equity securities that present the Group with opportunity for return through dividend income and trading gains. They have no fixed maturity or coupon rate. The fair values of the listed securities are based on quoted market prices. For unlisted securities, where market value is not available, the Group has estimated relevant fair values on the basis of publicly available information from outside sources. The carrying values of the Group’s associates and joint ventures are reviewed for impairment in accordance with the Group’s accounting policies. The fair value of other investments represents valuations as at 31 December 2019 and does not consider the impact of the emergence and spread of the Covid-19 virus. The Group’s principal associates and joint ventures at 31 December 2019 included: % Country of Barrows Design and Manufacturing (Pty) Limited 35.0 South Africa Dat Viet VAC Media Corporation 30.0 Vietnam GIIR Inc. 30.0 Korea Haworth Marketing & Media Company 49.0 USA High Co SA 34.1 France Joye Media SL 1 22.5 Spain Nanjing Yindu Ogilvy Advertising Co. Ltd 49.0 China Smollan Holdings (Pty) Ltd 24.8 South Africa Summer (BC) JVCo S.à r.l. 2 40.0 Luxembourg Summer (BC) US JVCo SCSp 2 40.0 Luxembourg Notes 1 Representing the Group’s interest in Imagina. 2 Representing the Group’s interest in Kantar split between the United States and rest of world. The market value of the Group’s shares in its principal listed associate undertakings at 31 December 2019 was as follows: GIIR Inc: £21.2 million, and High Co SA: £39.4 million (2018: GIIR Inc: £26.3 million and High Co SA: £30.3 million). The carrying value (including goodwill and other intangibles) of these equity interests in the Group’s consolidated balance sheet at 31 December 2019 was as follows: GIIR Inc: £37.7 million and High Co SA: £35.4 million (2018: GIIR Inc: £46.8 million and High Co SA: £37.1 million). Where the market value of the Group’s listed associates is less than the carrying value, an impairment review is performed utilising the discounted cash flow methodology discussed in note 14, which represents the value in use. The Group’s investments in its principal associate undertakings are represented by ordinary shares. Summarised financial information The following tables present a summary of the aggregate financial performance and net asset position of the Group’s associate undertakings and joint ventures. These have been estimated and converted, where appropriate, to an IFRS presentation based on information provided by the relevant companies at 31 December 2019. 2019 2018 2017 Income statement Revenue 3,619.1 3,685.8 3,800.8 Operating profit 365.6 378.4 440.4 Profit before taxation (385.9 ) 194.7 381.9 Profit for the year (429.6 ) 118.1 312.5 Balance sheet Assets 8,8 5 1 2,940.9 3,192.9 Liabilities (6,765.7 ) (1,570.6 ) (1,633.7 ) Net assets 2,0 89 4 1,370.3 1,559.2 The application of equity accounting is ordinarily discontinued when the investment is reduced to zero and additional losses are not provided for unless the Group has guaranteed obligations of the investee or is otherwise committed to provide further financial support for the investee. At 31 December 2019, capital commitments contracted, but not provided for , |
Deferred tax
Deferred tax | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Deferred tax | 17. Deferred tax The Group’s deferred tax assets and liabilities are measured at the end of each period in accordance with IAS 12 Income taxes. The recognition of deferred tax assets is determined by reference to the Group’s estimate of recoverability, using models where appropriate to forecast future taxable profits. Deferred tax assets have only been recognised for territories where the Group considers that it is probable that all or a portion of the deferred tax assets will be realised. The main factors that we consider include: – the future earnings potential determined through the use of internal forecasts; – the cumulative losses in recent years; – the various jurisdictions in which the potential deferred tax assets arise; – the history of losses carried forward and other tax assets expiring; – the timing of future reversal of taxable temporary differences; – the expiry period associated with the deferred tax assets; and – the nature of the income that can be used to realise the deferred tax asset. If it is probable that some portion of these assets will not be realised, then no asset is recognised in relation to that portion. If market conditions improve and future results of operations exceed our current expectations, our existing recognised deferred tax assets may be adjusted, resulting in future tax benefits. Alternatively, if market conditions deteriorate further or future results of operations are less than expected, future assessments may result in a determination that some or all of the deferred tax assets are not realisable. As a result, all or a portion of the deferred tax assets may need to be reversed. Certain deferred tax assets and liabilities have been offset as they relate to the same tax group. The following is the analysis of the deferred tax balances for financial reporting purposes: Gross £m Offset £m As £m Gross £m Offset £m As £m Deferred tax assets 430.9 (243.0 ) 187.9 412.0 (259.0 ) 153.0 Deferred tax liabilities (622.8 ) 243.0 (379.8 ) (738.5 ) 259.0 (479.5 ) (191.9 ) (191.9 ) (326.5 ) – (326.5 ) The following are the major gross deferred tax assets recognised by the Group and movements thereon in 2019 and 2018: Deferred Accounting Retirement Property, Tax Share- Restructuring Other Total 1 January 2018 53.5 84.9 75.6 68.4 72.7 33.0 5.8 17.9 411.8 Acquisition of subsidiaries – – – – – – – 2.0 2.0 Credit/(charge) to income 4.7 13.0 (11.2 ) (20.6 ) (8.9 ) (15.3 ) 10.7 11.0 (16.6 ) Charge to other comprehensive income – – (0.2 ) – – – – – (0.2 ) Charge to equity – – – – – (1.6 ) – – (1.6 ) Exchange differences 3.4 3.5 4.3 0.1 3.3 0.7 0.8 0.5 16.6 31 December 2018 61.6 101.4 68.5 47.9 67.1 16.8 17.3 31.4 412.0 (Charge)/credit to income (1.7 ) 10.2 6.7 19.4 24.2 2.9 12.5 (16.6 ) 57.6 Charge to other comprehensive income – – (3.2 ) – – – – – (3.2 ) Credit to equity – – – 27.8 – 3.1 – – 30.9 Transfer to disposal group classified as held for sale (4.2 ) (19.2 ) (12.3 ) (13.6 ) (3.0 ) (0.7 ) (3.4 ) 0.1 (56.3 ) Exchange differences (2.2 ) (5.0 ) (2.2 ) 3.2 (2.0 ) (0.6 ) (0.6 ) (0.7 ) (10.1 ) 31 December 2019 53.5 87.4 57.5 84.7 86.3 21.5 25.8 14.2 430.9 Other temporary differences comprise a number of items including tax deductible goodwill, none of which is individually significant to the Group’s consolidated balance sheet. At 31 December 2019 the balance related to temporary differences in relation to revenue adjustments, tax deductible goodwill, fair value adjustments, and other temporary differences. In addition the Group has recognised the following gross deferred tax liabilities and movements thereon in 2019 and 2018: Brands and other intangibles £m Associate earnings £m Goodwill £m Property, plant and equipment £m Financial instruments £m Other temporary differences £m Total £m 1 January 2018 489.2 21.6 140.4 21.2 36.2 56.6 765.2 Acquisition of subsidiaries 10.7 – – – – – 10.7 (Credit)/charge to income (68.8 ) (3.9 ) 31.8 (0.3 ) (0.9 ) (20.7 ) (62.8 ) Charge to other comprehensive income – – – – – 0.5 0.5 Exchange differences 7.5 (0.1 ) 10.1 1.3 4.6 1.5 24.9 31 December 2018 438.6 17.6 182.3 22.2 39.9 37.9 738.5 Acquisition of subsidiaries 0.8 – – – – – 0.8 (Credit)/charge to income (31.2 ) 68.6 10.3 (22.2 ) (0.7 ) (6.7 ) 18.1 Credit to other comprehensive income – – – – – (9.6 ) (9.6 ) Transfer to disposal group classified as held for sale (46.6 ) (7.9 ) (51.7 ) – – 0.6 (105.6 ) Exchange differences (9.3 ) (1.8 ) (5.5 ) – (2.3 ) (0.5 ) (19.4 ) 31 December 2019 352.3 76.5 135.4 – 36.9 21.7 622.8 At the balance sheet, the Group has gross tax losses and other temporary differences of £6,475.6 million (2018: £6,638.6 million) available for offset against future profits. Deferred tax assets have been recognised in respect of the tax benefit of £1,856.6 million (2018: £1,763.4 million) of such tax losses and other temporary differences. No deferred tax asset has been recognised in respect of the remaining £4,619.0 million (2018: £4,875.2 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 £60.7 million (2018: £46.4 million) that will expire within 1–10 years, and £4,437.6 million (2018: £4,572.6 million) of losses that may be carried forward indefinitely. At the balance sheet date, the aggregate amount of the temporary differences in relation to the investment in subsidiaries for which deferred tax liabilities have not been recognised was £2,165.3 million (2018: £1,768.5 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, 2019 | |
Text block [abstract] | |
Trade and other receivables | 18. Trade and other receivables The following are included in trade and other receivables: Amounts falling due within one year 2019 £m 2018 £m Trade receivables (net of bad debt provision) 7,007.6 8,062.2 Work in progress 349.5 366.5 VAT and sales taxes recoverable 212.7 264.2 Prepayments 287.1 287.3 Accrued income 3,292.7 3,541.2 Fair value of derivatives 1.4 1.3 Other debtors 671.3 578.8 11,822.3 13,101.5 The ageing of trade receivables and other financial assets by due date is as follows: Carrying amount at 2019 £m Not past due Days past due 2019 0-30 days £m 31-90 days £m 91-180 days £m 181 days- 1 year £m Greater than 1 year £m Trade receivables 7,007.6 5,553.3 934.9 341.0 92.1 22.4 63.9 Other financial assets 582.5 357.6 129.9 48.3 16.2 5.2 25.3 7,590.1 5,910.9 1,064.8 389.3 108.3 27.6 89.2 Carrying amount at 2018 £m Not past due Days past due 2018 0-30 days £m 31-90 days £m 91-180 days £m 181 days- 1 year £m Greater than 1 year £m Trade receivables 8,062.2 5,873.7 1,370.7 549.1 128.3 75.6 64.8 Other financial assets 551.7 424.9 61.3 14.2 8.6 7.7 35.0 8,613.9 6,298.6 1,432.0 563.3 136.9 83.3 99.8 Other financial assets are included in other debtors. Past due amounts are not impaired where collection is considered likely. Amounts falling due after more than one year 2019 £m 2018 £m Prepayments 2.2 3.0 Accrued income – 16.5 Fair value of derivatives – 8.4 Other debtors 135.4 152.1 137.6 180.0 The Group has applied the practical expedient permitted by IFRS 15 to not disclose the transaction price allocated to performance obligations unsatisfied (or partially unsatisfied) as of the end of the reporting period as contracts typically have an original expected duration of a year or less. Bad debt provisions: 2019 2018 2017 At beginning of year 116.6 91.3 93.8 New acquisitions 5.0 1.5 1.2 Charged to the income statement 45.4 66.7 27.4 Released to the income statement (19.0 ) (11.6 ) (8.4 ) Exchange adjustments (4.1 ) 2.1 (4.1 ) Transfer to disposal group classified as held for sale (8.9 ) – – Utilisations and other movements (23.3 ) (33.4 ) (18.6 ) At end of year 111.7 116.6 91.3 The allowance for bad and doubtful debts is equivalent to 1.6% (2018: 1.4%, 2017: 1.1%) of gross trade accounts receivables. Impairment losses on work in progress and accrued income were immaterial for the years presented. The Group considers that the carrying amount of trade and other receivables approximates their fair value. |
Trade and other payables_ amoun
Trade and other payables: amounts falling due within one year | 12 Months Ended |
Dec. 31, 2019 | |
Within one year [member] | |
Statement [LineItems] | |
Trade and other payables: amounts falling due within one year | 19. Trade and other payables: amounts falling due within one year The following are included in trade and other payables falling due within one year: 2019 1 2018 1 Trade payables 10,112.1 10,524.3 Deferred income 1,024.6 1,253.6 Payments due to vendors (earnout agreements) 143.4 149.1 Liabilities in respect of put option agreements with vendors 75.7 19.4 Fair value of derivatives 1.5 2.6 Share repurchases - close period commitments 2 252.3 – Other creditors and accruals 2,578.5 3,072.9 14,188.1 15,021.9 Notes 1 Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies 2 During 2019, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 2 January 2020 and ending on 27 February 2020, in accordance with UK listing rules. The commitment resulting from this agreement constitutes a liability at 31 December 2019, which is included in Trade and other payables: amounts falling due within one year and has been recognised as a movement in equity. The Group considers that the carrying amount of trade and other payables approximates their fair value. |
Trade and other payables_ amo_2
Trade and other payables: amounts falling due after more than one year | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Trade and other payables: amounts falling due after more than one year | 20. 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: 2019 1 2018 1 Payments due to vendors (earnout agreements) 100.3 251.7 Liabilities in respect of put option agreements with vendors 128.8 188.6 Fair value of derivatives 21.2 14.2 Other creditors and accruals 199.3 355.5 449.6 810.0 Note 1 Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies The Group considers that the carrying amount of trade and other payables approximates their fair value. The following tables set out payments due to vendors, comprising contingent consideration and the Directors’ best estimates of future earnout-related obligations: 2019 1 2018 1 Within one year 143.4 149.1 Between one and two years 36.3 140.0 Between two and three years 34.6 36.6 Between three and four years 12.3 44.0 Between four and five years 7.7 17.1 Over five years 9.4 14.0 243.7 400.8 2019 2018 At beginning of year 400.8 584.5 Earnouts paid (130.0 ) (120.2 ) New acquisitions 9.6 48.6 Revision of estimates taken to goodwill (note 14) (14. 1 ) ( 67.6 ) Revaluation of payments due to vendors 3.8 (50.5 ) Transfer to disposal group classified as held for sale (11.5 ) – Exchange adjustments (14. 9 ) 6.0 At end of year 243.7 400.8 Note 1 Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies As of 31 December 2019, 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 £14 million (2018: £nil to £179 million) and £nil to £1,110 million (2018: £nil to £1,960 million), respectively. The decrease in the maximum potential undiscounted amount of future payments for all earnout agreements is due to earnout arrangements that have completed and payments made on active arrangements during the year, disposal related to the Kantar sale and exchange adjustments, partially offset by earnout arrangements related to new acquisitions. |
Bank overdrafts, bonds and bank
Bank overdrafts, bonds and bank loans | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Bank overdrafts, bonds and bank loans | 21. Bank overdrafts, bonds and bank loans Amounts falling due within one year: 2019 1 2018 1 Bank overdrafts 8,572.4 8,864.6 Corporate bonds and bank loans 225.6 583.1 8,798.0 9,447.7 The Group considers that the carrying amount of bank overdrafts approximates their fair value. Amounts falling due after more than one year: 2019 2018 Corporate bonds and bank loans 4,047.3 5,634.8 The Group estimates that the fair value of corporate bonds is £4,439.8 million at 31 December 2019 (2018: £5,965.7 million). The fair values of the corporate bonds are based on quoted market prices. The Group considers that the carrying amount of bank loans of £110.4 million (2018: £186.8 million) approximates their fair value. The corporate bonds, bank loans and overdrafts included within liabilities fall due for repayment as follows: 2019 1 2018 1 Within one year 8,798.0 9,447.7 Between one and two years 96.4 423.8 Between two and three years 590.4 761.0 Between three and four years 632.1 609.8 Between four and five years 554.3 670.1 Over five years 2,174.1 3,170.1 12,845.3 15,082.5 Note 1 Figures have been restated to be in accordance with IAS 32 Financial Instruments: Presentation, as described in the accounting policies. |
Provisions for liabilities and
Provisions for liabilities and charges | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Provisions for liabilities and charges | 22. Provisions for liabilities and charges The movements in 2019 and 2018 were as follows: Property Other Total 1 January 2018 52.6 176.4 229.0 Charged to the income statement 1 72.1 13.9 86.0 Acquisitions 2 0.5 8.3 8.8 Utilised (5.7 ) (20.1 ) (25.8 ) Released to the income statement (5.7 ) (4.6 ) (10.3 ) Other movements 2.0 10.9 12.9 Exchange adjustments 2.9 8.2 11.1 31 December 2018 118.7 193.0 311.7 Charged to the income statement 39.5 7.6 47.1 Acquisitions 2 – 0.7 0.7 Utilised (1.2 ) (12.2 ) (13.4 ) Released to the income statement (10.3 ) (6.9 ) (17.2 ) Other movements 3 (58.4 ) 9.2 (49.2 ) Transfer to disposal group classified as held for sale (6.2 ) (18.4 ) (24.6 ) Exchange adjustments (0.6 ) (6.7 ) (7.3 ) 31 December 2019 81.5 166.3 247.8 Notes 1 Amounts charged to the income statement in 2018 include £50.6 million in regard to transformation costs with respect to the strategic initiative of co-locations 2 Acquisitions include £0.7 million (2018: £8.4 million) of provisions arising from revisions to fair value adjustments related to the acquisition of subsidiary undertakings that had been determined provisionally at the immediately preceding balance sheet date, as permitted by IFRS 3 Business Combinations. 3 Other movements include transfers of property provisions related to property leases which are now recognised in the right-of-use assets, increases of certain property-related liabilities and certain long-term employee benefits. The Company and various of its subsidiaries are, from time to time, parties to legal proceedings and claims which arise in the ordinary course of business. The Directors do not anticipate that the outcome of these proceedings and claims will have a material adverse effect on the Group’s financial position or on the results of its operations. |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Share-based payments | 23. Share-based payments Charges for share-based incentive plans were as follows: Continuing operations 2019 2018 1 2017 1 Share-based payments 66.0 78.3 98.3 Note 1 Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. Share-based payments comprise charges for stock options and restricted stock awards to employees of the Group. As of 31 December 2019, there was £140.7 million (2018: £146.0 million) of total unrecognised compensation cost related to the Group’s restricted stock plans. That cost is expected to be recognised over an average period of one to two years. Further information on stock options is provided in note 28. Restricted stock plans The Group operates a number of equity-settled share incentive schemes, in most cases satisfied by the delivery of stock from one of the Group’s ESOP Trusts. The most significant current schemes are as follows: Executive Performance Share Plan (EPSP) This scheme is intended to reward and incentivise the most senior executives of the Group. The performance period is five complete financial years, commencing with the financial year in which the award is granted. The vest date will usually be in the March following the end of the five-year performance period. Vesting is conditional on continued employment throughout the vesting period. The 2019 EPSP awards are subject to a relative Total Shareholder Return (“TSR”) performance condition, with a Return on Invested Capital (“ROIC”) underpin. TSR performance will be compared to companies representing the most relevant, listed global competitors, with performance below median resulting in zero vesting. Performance between median and upper decile provides for a vesting opportunity of between 15% and 100%. The awards will vest subject to a ROIC underpin of an average of 7.5% over the performance period. The Compensation Committee has an overriding discretion to determine the extent to which the award will vest. For EPSP awards granted between 2013 and 2018 there are three performance criteria, each constituting one-third (i) TSR against a comparator group of companies. Threshold performance (equating to ranking in the 50th percentile of the comparator group) will result in 20% vesting of the part of the award dependent on TSR. The maximum vest of 100% will arise if performance ranks in the 90th percentile, with a sliding scale of vesting for performance between threshold and maximum. (ii) Headline diluted earnings per share. Threshold performance (7% compound annual growth) will again result in a 20% vest. Maximum performance of 14% compound annual growth will give rise to a 100% vest, with a sliding vesting scale for performance between threshold and maximum. (iii) Return on equity (ROE). Average annual ROE defined as headline diluted EPS divided by the balance sheet value per share of shareholders’ equity. Threshold performance ranges between 10–14% average annual ROE and maximum performance ranges between 14–18%, with a sliding scale in between. Threshold again gives rise to a 20% vest, 100% for maximum, with a sliding scale in between. Performance Share Awards (PSA) 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. Leaders, Partners and High Potential Group This scheme makes annual conditional stock awards to approximately 1,500 key executives of the Group. Vesting is conditional on continued employment over the three-year vesting period. Valuation methodology For all of these schemes, the valuation methodology is based upon fair value on grant date, which is determined by the market price on that date or the application of a Black-Scholes model, depending upon the characteristics of the scheme concerned. The assumptions underlying the Black-Scholes model are detailed in note 28, including details of assumed dividend yields. Market price on any given day is obtained from external, publicly available sources. Market/non-market Most share-based plans are subject to non-market For schemes without market-based performance conditions, the valuation methodology above is applied and, at each year-end, 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 m Movement on ordinary shares granted for significant restricted stock plans: Non-vested m Granted Lapsed Vested Non-vested number m Executive Performance Share Plan (EPSP) 6.7 4.2 (1.3 ) (0.8 ) 8.8 Performance Share Awards (PSA) 2.3 1.7 (0.4 ) (1.0 ) 2.6 Leaders, Partners and High Potential Group 9.1 4.1 (1.9 ) (2.0 ) 9.3 Weighted average fair value (pence per share): Executive Performance Share Plan (EPSP) 1,363p 989p 1,334p 1,265p 1,198p Performance Share Awards (PSA) 1,437p 926p 1,210p 1,572p 1,081p Leaders, Partners and High Potential Group 1,154p 909p 1,076p 1,551p 974p The total fair value of shares vested for all the Group’s restricted stock plans during the year ended 31 December 2019 was £90.8 million (2018: £107.2 million, 2017: £114.8 million). |
Provision for post-employment b
Provision for post-employment benefits | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Provision for post-employment benefits | 24. Provision for post-employment benefits Companies within the Group operate a large number of pension plans, the forms and benefits of which vary with conditions and practices in the countries concerned. The Group’s pension costs are analysed as follows: Continuing operations 2019 2018 1 2017 1 Defined contribution plans 154.9 146.7 149.5 Defined benefit plans charge to operating profit 14.8 14.2 11.8 Pension costs (note 5) 169.7 160.9 161.3 Net interest expense on pension plans (note 6) 3.5 3.6 5.4 173.2 164.5 166.7 Note 1 Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. 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 2019. Valuations are as at 31 December 2019 and do not consider the impact of the emergence and spread of the Covid-19 virus. 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 2019 amounted to £37.1 million (2018: £44.9 million, 2017: £68.2 million). Employer contributions and benefit payments in 2020 are expected to be approximately £25 million. (a) Assumptions There are a number of areas in pension accounting that involve estimates made by management based on advice of qualified advisors. These include establishing the discount rates, rates of increase in salaries and pensions in payment, inflation, and mortality assumptions. The main weighted average assumptions used for the actuarial valuations at 31 December are shown in the following table: 2019 2018 2017 2016 UK Discount rate 1 2.0 2.8 2.4 2.5 Rate of increase in salaries 2 n/a n/a n/a 3.5 Rate of increase in pensions in payment 4.4 4.3 4.1 4.1 Inflation 2.6 2.8 2.7 2.8 North America Discount rate 1 3.0 4.1 3.5 3.8 Rate of increase in salaries 3.0 3.0 3.1 3.1 Inflation n/a n/a 4.0 4.0 Western Continental Europe Discount rate 1 1.2 2.0 1.9 1.7 Rate of increase in salaries 2.2 2.3 1.9 2.0 Rate of increase in pensions in payment 1.8 1.2 1.2 1.3 Inflation 1.7 1.7 1.7 1.7 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe Discount rate 1 4.6 5.0 4.2 4.2 Rate of increase in salaries 6.1 5.8 5.5 5.9 Inflation 3.7 3.6 4.0 4.0 Notes 1 Discount rates are based on high-quality corporate bond yields. In countries where there is no deep market in corporate bonds, the discount rate assumption has been set with regard to the yield on long-term government bonds. 2 The salary assumptions are no longer applicable to the UK as the plans were either frozen or bought out since 2017. Active participants will not accrue additional benefits for future services under these plans. For the Group’s pension plans, the plans’ assets are invested with the objective of being able to meet current and future benefit payment needs, while controlling balance sheet volatility and future contributions. Pension plan assets are invested with a number of investment managers, and assets are diversified among equities, bonds, insured annuities, property and cash or other liquid investments. The primary use of bonds as an investment class is to match the anticipated cash flows from the plans to pay pensions. The Group is invested in high-quality corporate and government bonds which share similar risk characteristics and are of equivalent currency and term to the plan liabilities. Various insurance policies have also been bought historically to provide a more exact match for the cash flows, including a match for the actual mortality of specific plan members. These insurance policies effectively provide protection against both investment fluctuations and longevity risks. The strategic target allocation varies among the individual plans. Management considers the types of investment classes in which the pension plan assets are invested. The types of investment classes are determined by economic and market conditions and in consideration of specific asset class risk. Management periodically commissions detailed asset and liability studies performed by third-party professional investment advisors and actuaries that generate probability-adjusted expected future returns on those assets. These studies also project the estimated future pension payments and evaluate the efficiency of the allocation of the pension plan assets into various investment categories. At 31 December 2019, the life expectancies underlying the value of the accrued liabilities for the main defined benefit pension plans operated by the Group were as follows: Years life expectancy after All North UK Western Other 1 Current pensioners 22.2 21.9 23.1 20.8 14.0 Current pensioners 23.7 23.3 24.1 23.9 17.4 Future pensioners 23.8 23.4 24.7 23.2 14.0 Future pensioners 25.4 24.9 25.9 26.0 17.4 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. The life expectancies after age 65 at 31 December 2018 were 22.2 years and 23.9 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 The following table provides information on the weighted average duration of the defined benefit pension obligations and the distribution of the timing of benefit payments for the next 10 years. The duration corresponds to the weighted average length of the underlying cash flows. All plans North America UK Western Continental Europe Other 1 Weighted average duration 11.2 9.1 13.8 12.7 8.5 Expected benefit payments Benefits expected to be paid 51.4 25.1 15.8 5.8 4.7 Benefits expected to be paid 45.4 24.5 12.6 5.5 2.8 Benefits expected to be paid 46.9 26.0 12.7 5.8 2.4 Benefits expected to be paid 44.4 22.3 12.9 5.7 3.5 Benefits expected to be paid 42.3 20.9 13.0 5.6 2.8 Benefits expected to be paid 216.1 94.7 67.1 32.6 21.7 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. The following table presents a sensitivity analysis for each significant actuarial assumption showing how the defined benefit obligation would have been affected by changes in the relevant actuarial assumption that were reasonably possible at the balance sheet date. This sensitivity analysis applies to the defined benefit obligation only and not to the net defined benefit pension liability in its entirety, the measurement of which is driven by a number of factors including, in addition to the assumptions below, the fair value of plan assets. The sensitivity analyses are based on a change in one assumption while holding all other assumptions constant so that interdependencies between the assumptions are excluded. The methodology applied is consistent with that used to determine the recognised defined benefit obligation. The sensitivity analysis for inflation is not shown as it is an underlying assumption to build the pension and salary increase assumptions. Changing the inflation assumption on its own without changing the salary or pension assumptions will not result in a significant change in pension liabilities. Increase/(decrease) Sensitivity analysis of significant actuarial assumptions 2019 2018 £m Discount rate Increase by 25 basis points: UK (8.2 ) (9.8 ) North America (7.5 ) (8.8 ) Western Continental Europe (3.8 ) (8.7 ) Other 1 (0.7 ) (0.7 ) Decrease by 25 basis points: UK 8.5 10.3 North America 7.7 9.1 Western Continental Europe 3.9 9.3 Other 1 0.7 0.7 Rate of increase in salaries Increase by 25 basis points: Western Continental Europe 0.8 1.3 Other 1 0.6 0.7 Decrease by 25 basis points: Western Continental Europe (0.8 ) (1.2 ) Other 1 (0.6 ) (0.6 ) Rate of increase in pensions in payment Increase by 25 basis points: UK 0.7 1.3 Western Continental Europe 1.9 5.3 Decrease by 25 basis points: UK (0.6 ) (0.8 ) Western Continental Europe (1.9 ) (5.0 ) Life expectancy Increase in longevity by one additional year: UK 11.7 13.6 North America 5.9 5.7 Western Continental Europe 4.3 6.9 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. (b) Assets and liabilities At 31 December, the fair value of the assets in the pension plans, and the assessed present value of the liabilities in the pension plans are shown in the following table: 2019 % 2018 % 2017 % Equities 55.5 9.1 76.5 9.1 124.6 13.4 Bonds 272.5 44.8 544.9 64.8 520.0 55.9 Insured annuities 1 239.1 39.3 90.9 10.8 178.5 19.2 Property 0.7 0.1 0.9 0.1 1.3 0.1 Cash 17.7 2.9 31.1 3.7 9.9 1.1 Other 23.0 3.8 96.3 11.5 95.7 10.3 Total fair value of assets 608.5 100.0 840.6 100.0 930.0 100.0 Present value of liabilities (767.5 ) (1,024.0 ) (1,135.4 ) Deficit in the plans (159.0 ) (183.4 ) (205.4 ) Irrecoverable surplus – (0.9 ) (0.9 ) Net liability 2 (159.0 ) (184.3 ) (206.3 ) Plans in surplus 20.6 42.8 43.9 Plans in deficit (179.6 ) (227.1 ) (250.2 ) Notes 1 The increase in 2019 from 2018 in the amount of assets held in insured annuities is attributable to the completion of buy-in transactions during 2019 for certain UK plans. The invested assets for these plans, as at 31 December 2018 consisted of a mixture of equities, bonds, cash and other assets, were transferred to an insurance company and, in accordance with IAS 19, all assets for these plans are now classified as insured annuities. 2 The related deferred tax asset is discussed in note 17. All plan assets have quoted prices in active markets with the exception of insured annuities and other assets. Surplus/(deficit) in plans by region 2019 2018 2017 UK 0.3 33.7 31.5 North America (45.2 ) (68.7 ) (89.2 ) Western Continental Europe (79.4 ) (104.6 ) (107.7 ) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (34.7 ) (43.8 ) (40.0 ) Deficit in the plans (159.0 ) (183.4 ) (205.4 ) 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 The following table shows the split of the deficit at 31 December between funded and unfunded pension plans. 2019 2019 2018 2018 2017 2017 Funded plans by region UK 0.3 (247.6 ) 33.7 (290.5 ) 31.5 (387.5 ) North America 12.8 (286.2 ) (4.6 ) (375.3 ) (21.4 ) (385.4 ) Western Continental Europe (33.3 ) (77.6 ) (35.8 ) (168.4 ) (37.9 ) (173.3 ) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (3.6 ) (20.9 ) (6.6 ) (19.7 ) (4.2 ) (15.8 ) Deficit/liabilities in the funded plans (23.8 ) (632.3 ) (13.3 ) (853.9 ) (32.0 ) (962.0 ) Unfunded plans by region North America (58.0 ) (58.0 ) (64.1 ) (64.1 ) (67.8 ) (67.8 ) Western Continental Europe (46.1 ) (46.1 ) (68.8 ) (68.8 ) (69.8 ) (69.8 ) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (31.1 ) (31.1 ) (37.2 ) (37.2 ) (35.8 ) (35.8 ) Deficit/liabilities in the unfunded plans (135.2 ) (135.2 ) (170.1 ) (170.1 ) (173.4 ) (173.4 ) Deficit/liabilities in the plans (159.0 ) (767.5 ) (183.4 ) (1,024.0 ) (205.4 ) (1,135.4 ) In accordance with IAS 19, plans that are wholly or partially funded are considered funded plans. (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: Continuing operations 2019 2018 1 2017 1 Service cost 2 12.9 12.0 9.4 Administrative expenses 1.9 2.2 2.4 Charge to operating profit 14.8 14.2 11.8 Net interest expense on pension plans 3.5 3.6 5.4 Charge to profit before taxation for defined benefit plans 18.3 17.8 17.2 Not es 1 Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. 2 Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments. The following tables show the breakdown of amounts recognised in the consolidated statement of comprehensive income (OCI): 2019 2018 2017 Return on plan assets (excluding interest income) 16.7 (43.9 ) 13.4 Changes in demographic assumptions underlying the present value of the plan liabilities 5.9 3.8 12.7 Changes in financial assumptions underlying the present value of the plan liabilities (64.3 ) 45.2 (17.0 ) Experience gain arising on the plan liabilities 5.1 3.8 7.9 Actuarial (loss)/gain recognised in OCI (36.6 ) 8.9 17.0 (d) Movement in plan liabilities The following table shows an analysis of the movement in the pension plan liabilities for each accounting period: 2019 2018 2017 Plan liabilities at beginning of year 1,024.0 1,135.4 1,209.8 Service cost 1 14.9 15.5 13.0 Interest cost 26.2 30.7 32.9 Actuarial (gain)/loss: Effect of changes in demographic assumptions (5.9 ) (3.8 ) (12.7 ) Effect of changes in financial assumptions 64.3 (45.2 ) 17.0 Effect of experience adjustments (5.1 ) (3.8 ) (7.9 ) Benefits paid 2 (140.8 ) (75.6 ) (79.7 ) (Gain)/loss due to exchange rate movements (22.7 ) 30.0 (36.4 ) Settlement payments 3 (47.4 ) (70.4 ) (1.2 ) Transfer to disposal group classified as held for sale (148.0 ) – – Other 4 8.0 11.2 0.6 Plan liabilities at end of year 767.5 1,024.0 1,135.4 Notes 1 Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments. 2 In 2019, there was an amendment to a US defined benefit plan that allowed certain participants to receive immediate lump sum pay-outs, which totalled £69.7 million. 3 In 2019 and 2018, the Group completed the transfer of the defined benefit obligations for certain UK plans to an insurer resulting in £47.1 million and £70.4 million, respectively, in settlement payments. 4 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: 2019 2018 2017 Fair value of plan assets at beginning of year 840.6 930.0 934.2 Interest income on plan assets 22.4 26.3 26.6 Return on plan assets (excluding interest income) 16.7 (43.9 ) 13.4 Employer contributions 37.1 44.9 68.2 Benefits paid 1 (140.8 ) (75.6 ) (79.7 ) (Loss)/gain due to exchange rate movements (15.7 ) 23.0 (28.7 ) Settlement payments 2 (47.4 ) (70.4 ) (1.2 ) Administrative expenses (2.1 ) (3.4 ) (3.1 ) Transfer to disposal group classified as held for sale (111.1 ) – – Other 3 8.8 9.7 0.3 Fair value of plan assets at end of year 608.5 840.6 930.0 Actual return on plan assets 39.1 (17.6 ) 40.0 Notes 1 In 2019, there was an amendment to a US defined benefit plan that allowed certain participants to receive immediate lump sum pay-outs, which totalled £69.7 million. 2 In 2019 and 2018, the Group completed the transfer of the defined benefit obligations for certain UK plans to an insurer resulting in £47.1 million and £70.4 million, respectively, in settlement payments. 3 Other includes acquisitions, disposals, plan participants’ contributions and reclassifications. The reclassifications represent certain of the Group’s defined benefit plans which are included in this note for the first time in the periods presented. |
Event after the reporting perio
Event after the reporting period | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Event after the reporting period | 25. Event after the reporting period In the period since 31 December 2019, the emergence and spread of Covid-19 has impacted the Group and its clients. The coronavirus pandemic is adversely affecting and is expected to continue to adversely affect our business, revenues, results of operations, financial condition and prospects. The Group has approximately £2.0 billion of undrawn credit facilities at 31 December 2019 and has supported this by further action to maintain liquidity, including the suspension of share buybacks and the 2019 final dividend. On working capital, we are constantly reviewing cash outflows and receipts to monitor our position. We are continuing to work closely with our clients to ensure timely payment for the services we have provided in line with contractual commitments. Cost reduction and cash conservation measures have also been taken, including the freezing of new hires, 20% salary and fee sacrifice for the CEO, Board members, Executive committee members and employees earning above certain thresholds. Additionally, savings have been identified on property and IT capital expenditure. Close to 95% of our people are remote working and maintaining services to our clients and using creativity to support clients to adjust their communications, and support governments and NGOs in mitigating the impact of Covid-19. |
Risk management policies
Risk management policies | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Risk management policies | 26. Risk management policies Foreign currency risk The Group’s results in pounds sterling are subject to fluctuation as a result of exchange rate movements. The Group does not hedge this translation exposure to its earnings but does hedge the currency element of its net assets using foreign currency borrowings, cross-currency swaps and forward foreign exchange contracts. The Group effects these currency net asset hedges by borrowing in the same currencies as the operating (or “functional”) currencies of its main operating units. The majority of the Group’s debt is therefore denominated in US dollars, pounds sterling and euros. The Group’s borrowings at 31 December 2019 were primarily made up of $1,563 million, £844 million and € 2,600 million (2018: $2,784 million, £1,044 million and € 3,200 million). The Group’s average gross debt during the course of 2019 was $2,509 million, £947 million and € 3,128 million (2018: $3,377 million, £1,039 million and € 3,202 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 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’s forecasts and projections, taking account of (i) reasonably possible declines in revenue less pass-through costs; and (ii) remote declines in revenue less pass-through At 31 December 2019, the Group has access to £6.3 billion of committed facilities with maturity dates spread over the years 2020 to 2046 as illustrated below: 2020 2021 2022 2023 2024+ £m £ bonds £400m (2.875% 2046) 400.0 400.0 US bond $220m (5.625% 2043) 165.8 165.8 US bond $93m (5.125% 2042) 70.0 70.0 Eurobonds € 600m (1.625% 2030) 507.9 507.9 Eurobonds € 750m (2.25% 2026) 634.9 634.9 Eurobonds € 500m (1.375% 2025) 423.3 423.3 US bond $750m (3.75% 2024) 565.5 565.5 Bank revolver ($2,500m 2024) 1,884.9 1,884.9 Eurobonds € 750m (3.0% 2023) 634.9 634.9 US bond $500m (3.625% 2022) 377.0 377.0 Eurobonds € 250m (3m EURIBOR + 0.45% 2022) 211.6 211.6 Bank revolver (A$150m 2020, A$270m 2021) 222.4 79.4 143.0 Eurobonds € 250m (3m EURIBOR + 0.32% 2020) 211.6 211.6 Total committed facilities available 6,309.8 291.0 143.0 588.6 634.9 4,652.3 Drawn down facilities at 31 December 2019 4,304.2 216.9 96.4 588.6 634.9 2,767.4 Undrawn committed credit facilities 2,005.6 Given the strong cash generation of the business, its debt maturity profile and available facilities, the Directors believe the Group has sufficient liquidity to match its requirements for the foreseeable future. Treasury activities Treasury activity is managed centrally from London, New York and Hong Kong, and is principally concerned with the monitoring of working capital, managing external and internal funding requirements and the monitoring and management of financial market risks, in particular interest rate and foreign exchange exposures. The treasury operation is not a profit centre and its activities are carried out in accordance with policies approved by the Board of Directors and subject to regular review and audit. The Group manages liquidity risk by ensuring continuity and flexibility of funding even in difficult market conditions. Undrawn committed borrowing facilities are maintained in excess of peak net-borrowing 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 28 and 29. Given the significant uncertainty over the coming months generated by the emergence and spread of Covid-19, the Group continues to monitor its capital structure. Our bond portfolio at the 31 December 2019 had an average maturity of 8.2 years, with only a May 2020 € 250 million Eurobond due in the next two years. Credit risk The Group’s principal financial assets are cash and short-term deposits, trade and other receivables and investments, the carrying values of which represent the Group’s maximum exposure to credit risk in relation to financial assets, as shown in note 27. The Group’s credit risk is primarily attributable to its trade receivables. The majority of the Group’s trade receivables are due from large national or multinational companies where the risk of default is considered low. The amounts presented in the consolidated balance sheet are net of allowances for doubtful receivables, estimated by the Group’s management based on expected losses, prior experience and their assessment of the current economic environment. A relatively small number of clients make up a significant percentage of the Group’s debtors, but no single client represents more than 5% of total trade receivables as at 31 December 2019. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies or banks that have been financed by their government. A relatively small number of clients contribute a significant percentage of the Group’s consolidated revenues. The Group’s clients generally are able to reduce advertising and marketing spending or cancel projects at any time for any reason. There can be no assurance that any of the Group’s clients will continue to utilise the Group’s services to the same extent, or at all, in the future. Clients can reduce their marketing spend, terminate contracts, or cancel projects on short notice. The loss of one or more of our largest clients, if not replaced by new accounts or an increase in business from existing clients, would adversely affect our financial condition. Following the emergence and spread of Covid-19 in 2020, the Group continues to work closely with our clients to ensure timely payment for the services we have provided in line with contractual commitments. The Group constantly reviewing cash outflows and receipts to monitor our position. 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 losses, which would arise on the retranslation of foreign currency denominated borrowings and derivatives. These losses would be partially offset in equity by a corresponding gain arising on the retranslation of the Group’s foreign currency net assets. A 10% strengthening of sterling would have an equal and opposite effect. 2019 1 2018 1 US dollar 240.5 278.1 Euro 153.0 211.4 Notes 1 Figures have been restated, as described in the accounting policies. 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 2019 would increase profit before tax by approximately £22.6 million (2018: £7.2 million). A one percentage decrease in market interest rates would have an equal and opposite effect. This has been calculated by applying the interest rate change to the Group’s variable rate cash and borrowings. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Financial instruments | 27. Financial instruments Currency derivatives The Group utilises currency derivatives over significant future transactions and cash flows. 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. At the balance sheet date, cross currency swaps held at fair value through profit or loss have receipts of € 500.0 million and payments of £444.1 million due in March 2025. The Group estimates the fair value of these contracts to be a net liability of £21.2 million (2018: net asset of £8.4 million). These amounts are based on market values of equivalent instruments at the balance sheet date, comprising £nil (2018: £8.4 million) assets included in trade and other receivables and £21.2 million (2018: £nil) liabilities included in trade and other payables. At the balance sheet date, the total nominal amount of outstanding forward foreign exchange contracts not designated as hedges was £151.7 million (2018: £296.1 million). The Group estimates the fair value of these contracts to be a net liability of £0.1 million (2018: £1.3 million). These arrangements are designed to address significant exchange exposure and are renewed on a revolving basis as required. Interest rate swaps The Group uses interest rate swaps as hedging instruments in fair value hedges to manage its exposure to interest rate movements on its borrowing. During 2019 the Group terminated contracts that had a nominal value of $812 million which had fixed rate receipts of 4.75% and floating interest payments averaging LIBOR plus 2.34% until November 2021. The Group also terminated contracts in 2019 that had a nominal value of $500 million which had fixed rate receipts of 3.63% and floating interest payments averaging LIBOR plus 1.52% until September 2022. The fair value of interest rate swaps entered into at 31 December 2019 is estimated to be a net liability of £nil (2018: £14.2 million). These amounts are based on market values of equivalent instruments at the balance sheet date, comprising £nil (2018: £14.2 million) liabilities included in trade and other payables. Changes in the fair value relating to the ineffective portion of interest rate swaps amounted to a gain of £1.0 million (2018: £0.9 million) which is included in the revaluation and retranslation of financial instruments for the year. This gain resulted from a £13.3 million loss on hedging instruments and a £14.3 million gain on hedged items. An analysis of the Group’s financial assets and liabilities by accounting classification is set out below: Held at Held at Amortised Carrying £m £m £m 2019 Other investments 255.7 242.6 – 498.3 Cash and short-term deposits 1 – – 11,305.7 11,305.7 Bank overdrafts, bonds and bank loans 1 – – (8,798.0 ) (8,798.0 ) Bonds and bank loans – – (4,047.3 ) (4,047.3 ) Trade and other receivables: amounts falling due within one year – – 7,530.8 7,530.8 Trade and other receivables: amounts falling due after more than one year – – 59.3 59.3 Trade and other payables: amounts falling due within one year – – (10,191.6 ) (10,191.6 ) Trade and other payables: amounts falling due after more than one year – – (2.6 ) (2.6 ) Derivative assets 1.4 – – 1.4 Derivative liabilities 2 (22.7 ) – – (22.7 ) Payments due to vendors (earnout agreements) (note 20) 2 (243.7 ) – – (243.7 ) Liabilities in respect of put options 2 (204.5 ) – – (204.5 ) (213.8 ) 242.6 (4,143.7 ) (4,114.9 ) Derivatives Held at Held at Amortised Carrying £m £m £m £m £m 2018 Other investments – 319.6 347.1 – 666.7 Cash and short-term deposits 1 – – – 11,065.8 11,065.8 Bank overdrafts, bonds and bank loans 1 – – – (9,447.7 ) (9,447.7 ) Bonds and bank loans – – – (5,634.8 ) (5,634.8 ) Trade and other receivables: amounts falling due within one year – – – 8,545.6 8,545.6 Trade and other receivables: amounts falling due after more than one year – – – 68.3 68.3 Trade and other payables: amounts falling due within one year – – – (10,637.3 ) (10,637.3 ) Trade and other payables: amounts falling due after more than one year – – – (8.4 ) (8.4 ) Derivative assets – 9.7 – – 9.7 Derivative liabilities (14.2) (2.6 ) – – (16.8 ) Payments due to vendors (earnout agreements) (note 20) 2 – (400.8 ) – – (400.8 ) Liabilities in respect of put options 2 – (208.0 ) – – (208.0 ) (14.2) (282.1 ) 347.1 (6,048.5 ) (5,997. 7 ) Notes 1 Figures have been restated to be in accordance with IAS 32 Financial Instruments: Presentation, as described in the accounting policies. 2 Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. 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 1 Level 3 1 2019 Held at fair value through profit or loss Other investments – – 255.7 Derivative assets – 1.4 – Derivative liabilities – (22.7 ) – Payments due to vendors (earnout agreements) (note 20) – – (243.7 ) Liabilities in respect of put options – – (204.5 ) Held at fair value through other comprehensive income Other investments 42.2 – 200.4 Level 1 Level 2 Level 3 2018 Derivatives in designated hedge relationships Derivative liabilities – (14.2 ) – Held at fair value through profit or loss Other investments 0.4 – 319.2 Derivative assets – 1.3 – Derivative liabilities – (2.6 ) – Payments due to vendors (earnout agreements) (note 20) – – (400.8 ) Liabilities in respect of put options – – (208. 0 ) Held at fair value through other comprehensive income Other investments 128.1 – 219.0 Note 1 Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies There have been no transfers between these levels in the years presented. Reconciliation of level 3 fair value measurements 1 Liabilities 2 Other 1 January 2018 (221.7 ) 820.3 Gains recognised in the income statement 26.0 61.1 Losses recognised in other comprehensive income – (140.6 ) Exchange adjustments 1.1 – Additions (37.4 ) 35.0 Disposals – (237.3 ) Cancellations 2.2 – Reclassifications from other investments to interests in associates – (0.3 ) Settlements 21.8 – 31 December 2018 (208.0 ) 538.2 (Losses)/gains recognised in the income statement (30.1 ) 9.1 Losses recognised in other comprehensive income – (55.4 ) Exchange adjustments 6.9 – Additions (34.8 ) 18.2 Disposals – (53.4 ) Cancellations 9.7 – Transfer to disposal group classified as held for sale 31.0 (0.6 ) Settlements 20.8 – 31 December 2019 (204.5 ) 456.1 Note s 1 The reconciliation of payments due to vendors (earnout agreements) is presented in note 20. 2 Figures have been restated, as described in the accounting policies. The fair values of financial assets and liabilities are based on quoted market prices where available. Where the market value is not available, the Group has estimated relevant fair values on the basis of publicly available information from outside sources. There have been no movements between level 3 and other levels. Payments due to vendors and liabilities in respect of put options Future anticipated payments due to vendors in respect of contingent consideration (earnout agreements) are recorded at fair value, which is the present value of the expected cash outflows of the obligations. Liabilities in respect of put option agreements are initially recorded at the present value of the redemption amount in accordance with IAS 32. After recognition, the liability is remeasured in accordance with IFRS 9 and is subject to the estimation of future performance of the business acquired. Changes in the estimation result in re-measurement of the liability through the income statement. Both types of obligations are dependent on the future financial performance of the entity and it is assumed that future profits are in line with Directors’ estimates. The Directors derive their estimates from internal business plans together with financial due diligence performed in connection with the acquisition. At 31 December 2019, the weighted average growth rate in estimating future financial performance was 19.5% (2018: 22.7%), which reflects the prevalence of recent acquisitions in the faster-growing markets and new media sectors. The weighted average risk adjusted discount rate applied to these obligations at 31 December 2019 was 4.1% (2018: 3.2%). 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 £3.8 million (2018: £5.8 million) and £6.6 million (2018: £8.7 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 £3.9 million (2018: £6.3 million) and £4.0 million (2018: £6.4 million), respectively. An increase in the liability would result in a loss in the revaluation and retranslation of financial instruments, while a decrease would result in a gain. Other investments The fair value of other investments included in level 1 are based on quoted market prices. Other investments included in level 3 are unlisted securities, where market value is not readily available. The Group has estimated relevant fair values on the basis of publicly available information from outside sources using the most appropriate valuation technique, including all external funding rounds, revenue and EBITDA multiples, the share of fund net asset value and discounted cash flows. Certain investments are valued using revenue multiples. An increase or decrease in this multiple of one times revenue would result in an increase or decrease in the value of investments of £53.6 million, which would result in a credit or charge to the income statement of £3.3 million and equity of £50.3 million. The sensitivity to changes in unobservable inputs is specific to each individual investment. |
Authorised and issued share cap
Authorised and issued share capital | 12 Months Ended |
Dec. 31, 2019 | |
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Authorised and issued share capital | 28. Authorised and issued share capital Equity Nominal Authorised At 1 January 2017 1,750,000,000 175.0 At 31 December 2017 1,750,000,000 175.0 At 31 December 2018 1,750,000,000 175.0 At 31 December 2019 1,750,000,000 175.0 Issued and fully paid At 1 January 2017 1,331,880,730 133.2 Exercise of share options 630,822 0.1 At 31 December 2017 1,332,511,552 133.3 Exercise of share options 166,675 - At 31 December 2018 1,332,678,227 133.3 Exercise of share options 75,625 - Share cancellations (4,586,039 ) (0.5 ) At 31 December 2019 1,328,167,813 132.8 Company’s own shares The Company’s holdings of own shares are stated at cost and represent shares held in treasury and purchases by the Employee Share Ownership Plan (‘ESOP’) trusts of shares in WPP plc for the purpose of funding certain of the Group’s share-based incentive plans. The trustees of the ESOP purchase the Company’s ordinary shares in the open market using funds provided by the Company. The Company also has an obligation to make regular contributions to the ESOP to enable it to meet its administrative costs. The number and market value of the ordinary shares of the Company held by the ESOP at 31 December 2019 was 9,219,837 (2018: 14,820,994), and £98.3 million (2018: £125.5 million) respectively. The number and market value of ordinary shares held in treasury at 31 December 2019 was 70,787,730 (2018: 70,854,553) and £755.0 million (2018: £599.9 million) respectively. Share options WPP Executive Share Option Scheme (WPP) As at 31 December 2019, unexercised options over ordinary shares of 6,741 have been granted under the WPP Executive Share Option Scheme as follows: Number of ordinary shares under option Exercise price Exercise dates 3,696 8.333 2015 - 2022 3,045 10.595 2016 - 2023 WPP Worldwide Share Ownership Programme (WWOP) As at 31 December 2019, unexercised options over ordinary shares of 2,757,654 and unexercised options over ADRs of 388,854 have been granted under the WPP Worldwide Share Ownership Programme as follows: Number of ordinary shares under option Exercise price Exercise dates 82,650 6.268 2014 - 2021 36,500 6.268 2015 - 2021 53,150 7.113 2013 - 2020 25,750 7.113 2014 - 2020 194,079 8.458 2015 - 2022 43,000 13.145 2017 - 2021 1,739,050 13.145 2017 - 2024 4,375 13.145 2018 - 2024 564,975 13.505 2016 - 2023 14,125 13.505 2017 - 2023 Number of ADRs under option Exercise price Exercise dates 24,550 49.230 2014 - 2021 16,530 56.560 2013 - 2020 39,184 67.490 2015 - 2022 166,655 102.670 2017 - 2024 141,935 110.760 2016 - 2023 WPP Share Option Plan 2015 (WSOP) As at 31 December 2019, unexercised options over ordinary shares of 13,413,425 and unexercised options over ADRs of 1,396,745 have been granted under the WPP Worldwide Share Ownership Programme as follows: Number of ordinary shares under option Exercise price Exercise 18,250 8.372 2021 - 2025 3,406,900 8.372 2021 - 2028 15,500 9.600 2022 - 2026 2,863,975 9.600 2022 - 2029 19,250 13.085 2020 - 2024 2,785,100 13.085 2020 - 2027 55,500 15.150 2018 - 2022 1,952,200 15.150 2018 - 2025 5,375 15.150 2019 - 2025 12,375 17.055 2019 - 2023 2,279,000 17.055 2019 - 2026 Number of ADRs under option Exercise price Exercise 347,660 53.140 2021 - 2028 347,105 62.590 2022 - 2029 276,790 88.260 2020 - 2027 236,265 105.490 2020 - 2026 188,925 115.940 2018 - 2025 The aggregate status of the WPP Share Option Plans during 2019 was as follows: Movements on options granted (represented in ordinary shares) 1 January Granted Exercised Lapsed Outstanding Exercisable WPP 6,741 – – – 6,741 6,741 WWOP 5,520,774 – (71,475 ) (747,375 ) 4,701,924 4,701,924 WSOP 18,691,100 4,615,000 (4,150 ) (2,904,800 ) 20,397,150 5,249,075 24,218,615 4,615,000 (75,625 ) (3,652,175 ) 25,105,815 9,957,740 Weighted-average exercise price for options over 1 January Granted Exercised Lapsed Outstanding Exercisable Ordinary shares (£) WPP 9.355 – – – 9.355 9.355 WWOP 12.290 – 6.888 12.027 12.421 12.421 WSOP 12.753 9.600 8.372 12.405 12.121 16.164 ADRs ($) WWOP 95.453 – 47.388 91.622 96.744 96.744 WSOP 84.893 62.590 53.140 82.290 79.798 115.940 Options over ordinary shares Outstanding Range of Weighted average Weighted average 6.268 – 17.055 12.171 90 Options over ADRs Outstanding Range of Weighted average Weighted average 49.230 – 115.940 83.488 89 As at 31 December 2019 there was £7.3 million (2018: £8.5 million) of total unrecognised compensation costs related to share options. That cost is expected to be recognised over a weighted average period of 19 months (2018: 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: 2019 2018 2017 Fair value of UK options (shares) 117.0p 107.0p 112.0p Fair value of US options (ADRs) $8.49 $8.09 $9.40 Weighted average assumptions: UK Risk-free interest rate 0.57% 0.78% 0.57% US Risk-free interest rate 1.61% 2.74% 2.05% Expected life (months) 48 48 48 Expected volatility 24% 24% 17% Dividend yield 3.8% 3.5% 2.9% 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 2019 was £9.39 (2018: £11.56, 2017: £15.86) and the average ADR price for the same period was $59.93 (2018: $77.31, 2017: $101.86). Expected volatility is sourced from external market data and represents the historic volatility in the Group’s share price over a period equivalent to the expected option life. Expected life is based on a review of historic exercise behaviour in the context of the contractual terms of the options, as described in more detail below. Terms of share option plans In 2015, the Group introduced the Share Option Plan 2015 to replace both the “all-employee” The Worldwide Share Ownership Programme was open for participation to employees with at least two years’ employment in the Group. It was not available to those participating in other share-based incentive programmes or to Executive Directors. The vesting period for each grant is three years and there are no performance conditions other than continued employment with the Group. The Executive Stock Option Plan has historically been open for participation to WPP Group Leaders, Partners and High Potential Group. It is not currently offered to Parent Company Executive Directors. The vesting period is three years and performance conditions include achievement of various TSR (Total Shareholder Return) and EPS (Earnings Per Share) objectives, as well as continued employment. The terms of these stock options are such that if, after nine years and eight months, the performance conditions have not been met, then the stock option will vest automatically. The Group grants stock options with a life of 10 years, including the vesting period. |
Other reserves
Other reserves | 12 Months Ended |
Dec. 31, 2019 | |
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Other reserves | 29. Other reserves Other reserves comprise the following: Capital Equity 1 Revaluation Translation 1 Total 1 January 2017 2.7 (203.4 ) 271.3 1,665.2 1,735.8 Exchange adjustments on foreign currency net investments – – – (640.1 ) (640.1 ) Gain on revaluation of available for sale investments – – 32.1 – 32.1 Recognition and remeasurement of financial instruments – (8.7 ) – – (8.7 ) 31 December 2017 2.7 (212.1 ) 303.4 1,025.1 1,119.1 Exchange adjustments on foreign currency net investments – – – 275.0 275.0 Accounting policy change (IFRS 9) 1 – – (303.4 ) (104.0 ) (407.4 ) Recognition and remeasurement of financial instruments – (24.3 ) – – (24.3 ) 31 December 2018 2.7 (236.4 ) – 1,196.1 962.4 Exchange adjustments on foreign currency net investments – – – (607.1 ) (607.1 ) Exchange adjustments recycled to the income statement on disposal of discontinued operations – – – (284.0 ) (284.0 ) Share cancellations 0.5 – – – 0.5 Recognition and remeasurement of financial instruments – 10.6 – – 10.6 Share purchases – close period commitments – (252.3 ) – – (252.3 ) 31 December 2019 3.2 (478.1 ) – 305.0 (169.9 ) Notes 1 Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. 2 Due to the adoption of IFRS 9, cumulative gains and losses on revaluation of available for sale investments have been transferred to retained earnings. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
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Acquisitions | 30. 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 Goodwill arising from acquisitions represents the value of synergies with our existing portfolio of businesses and skilled staff to deliver services to our clients. Non-controlling non-controlling 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 31 December 2019 or between 31 December 2019 and the date the financial statements have been authorised for issue. Acquisitions in 2018 The Group acquired a number of subsidiaries in the year. The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the Group. The fair value adjustments for certain acquisitions have been determined provisionally at the balance sheet date. Book Fair value Fair Intangible assets – 40.3 40.3 Property, plant and equipment 3.1 – 3.1 Cash 5.0 – 5.0 Trade receivables due within one year 43.7 – 43.7 Other current assets 20.3 – 20.3 Total assets 72.1 40.3 112.4 Current liabilities (42.8 ) – (42.8 ) Trade and other payables due after one year (2.4 ) (13.5 ) (15.9 ) Deferred tax liabilities – (9.9 ) (9.9 ) Provisions – (0.4 ) (0.4 ) Total liabilities (45.2 ) (23.8 ) (69.0 ) Net assets 26.9 16.5 43.4 Non-controlling (6.3 ) Fair value of equity stake in associate undertakings before acquisition of controlling interest (3.1 ) Goodwill 141.6 Consideration 175.6 Consideration satisfied by: Cash 127.4 Payments due to vendors 48.2 Goodwill arising from acquisitions represents the value of synergies with our existing portfolio of businesses and skilled staff to deliver services to our clients. Goodwill that is expected to be deductible for tax purposes is £65.3 million. Non-controlling The contribution to revenue and operating profit of acquisitions completed in the year was not material. Acquisitions in 2017 The Group acquired a number of subsidiaries in the year. The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the Group. The fair value adjustments for certain acquisitions have been determined provisionally at the balance sheet date. Book Fair value Fair Intangible assets 0.8 79.0 79.8 Property, plant and equipment 5.5 – 5.5 Cash 28.9 – 28.9 Trade receivables due within one year 74.4 – 74.4 Other current assets 20.1 – 20.1 Total assets 129.7 79.0 208.7 Current liabilities (76.0 ) – (76.0 ) Trade and other payables due after one year (10.2 ) (20.5 ) (30.7 ) Deferred tax liabilities – (16.8 ) (16.8 ) Provisions (0.1 ) (4.8 ) (4.9 ) Total liabilities (86.3 ) (42.1 ) (128.4 ) Net assets 43.4 36.9 80.3 Non-controlling (13.9 ) Fair value of equity stake in associate undertakings before acquisition of controlling interest (5.7 ) Goodwill 314.3 Consideration 375.0 Consideration satisfied by: Cash 213.7 Payments due to vendors 161.3 Goodwill arising from acquisitions represents the value of synergies with our existing portfolio of businesses and skilled staff to deliver services to our clients. Goodwill that is expected to be deductible for tax purposes is £63.9 million. Non-controlling The contribution to revenue and operating profit of acquisitions completed in the year was not material. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2019 | |
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Related party transactions | 31. Related party transactions From time to time the Group enters into transactions with its associate undertakings. These transactions were not material for either year presented. The Group has continuing transactions with Kantar, including sales, purchases, the provision of IT services, subleases and property related items. None of these were material in the period since 5 December 2019 when Kantar became a related party as an associate. The following amounts were outstanding at 31 December 2019: 2019 Amounts owed by related parties Kantar 87.5 Other 87.5 175.0 Amounts owed to related parties Kantar (36.5 ) Other (49.6 ) (86.1 ) |
Reconciliation of operating pro
Reconciliation of operating profit to a headline operating profit | 12 Months Ended |
Dec. 31, 2019 | |
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Reconciliation of operating profit to a headline operating profit | 32. Reconciliation of operating profit to a Reconciliation of operating profit to a headline operating profit: Continuing operations: 2019 2 0 1,2 2017 1 Operating profit 1,295.9 1,245.3 1,577.9 Amortisation and impairment of acquired intangible assets 121.5 201.8 138.0 Goodwill impairment 47.7 176.5 27.1 Gains on disposal of investments and subsidiaries (40.4 ) (237.9 ) (98.7 ) (Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership (0.4 ) (2.0 ) 0.3 Investment write-downs 7.5 2.0 91.7 Litigation settlement (16.8 ) – – Gain on sale of freehold property in New York (7.9 ) – – Restructuring and transformation costs 153.5 265.5 56.8 Headline operating profit 1,560.6 1,651.2 1,793.1 Notes 1 Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. 2 Figures have been restated as described in the accounting policies. Headline operating profit is one of the metrics that management uses to assess the performance of the business. |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting policies [Line Items] | |
Basis of preparation | Basis of preparation The consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of certain financial instruments and held for sale assets. The financial statements have been prepared using the going concern basis of accounting. The principal accounting policies are set out below. The financial statements were originally approved by the Board of Directors and authorized for issue on 30 April 2020, and have been amended as of 12 February 2021 solely to correct the matters described below under the Restatement subheading. |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the results of the Company and all its subsidiary undertakings made up to the same accounting date. All intra-Group balances, transactions, income and expenses are eliminated in full on consolidation. The results of subsidiary undertakings acquired or disposed of during the period are included or excluded from the consolidated income statement from the effective date of acquisition or disposal. |
Restatement | Restatement After the consolidated financial statements for the year ended 31 December 2019 were issued it was determined that they did not comply with certain elements of the application of IAS 32 Financial Instruments: Presentation and IAS 39 Financial Instruments: Recognition and Measurement, resulting in the incorrect presentation of the Company’s notional cash pooling arrangements on the balance sheet and the inappropriate deferral of foreign exchange movements in the Company’s translation reserve due to the inappropriate application of hedge accounting in respect of non-derivative financial instruments and the inappropriate discount rate being applied in the calculation of the fair value of liabilities in respect of put option agreements and payments due to vendors (earnout agreements). Therefore, there has been a restatement of the years ended 31 December 2019, 31 December 2018, and 31 December 2017. The impact of this change is to increase cash and short-term deposits and bank overdrafts, bonds and bank loans by £8,336.7 million for the year ended 31 December 2019 (2018: £8,422.6 million, 2017: £9,459.6 million), while having no impact on the Company’s debt less cash position. This adjustment does not impact the consolidated income statement or consolidated cash flow statement. Net investment hedging was inappropriately applied against certain foreign exchange exposures and net investment in foreign operations, where the relationship was either an ineligible hedging relationship under IFRS or insufficiently documented, such that the criteria to apply hedge accounting under IAS 39 Financial Instruments: Recognition and Measurement were not met. Therefore, there has been a restatement of the years ended 31 December 2019, 2018 and 2017, resulting in the reclassification of gains/losses recognised in exchange adjustments on foreign currency net investments within the consolidated statement of comprehensive income to be reported in the consolidated income statement as revaluation and retranslation of financial instruments (note 6). The impact of this change is a £245.7 million gain for the year ended 31 December 2019 (2018: £205.1 million loss, 2017: £194.6 million gain) being recognised in revaluation and retranslation of financial instruments. This change also reduces the opening retained earnings balance as at 1 January 2017 by £506.9 million with a corresponding increase in the foreign currency translation reserve. The fair value of liabilities in respect of put option agreements and payments due to vendors (earnout agreements) are recorded at the present value of the expected cash outflows of the obligation. The discount rate historically used in this calculation represented the Company’s cost of debt. To fully reflect the risk in the cash flows, the Company has changed the discount rate used in this calculation, and restated the periods ending 31 December 2019, 2018 and 2017 to reflect the change, which resulted in the following adjustments: • Liabilities in respect of put options (notes 19 and 20) have decreased by £22.3 million at 31 December 2019 (2018: £34.0 million, 2017: £36.4 million) and a charge of £10.8 million in 2019 (2018: £8.5 million, 2017: £11.8 million) recognised in the consolidated income statement within the revaluation and retranslation of financial instruments (note 6). Other reserves on the consolidated balance sheet increased by £59.6 million at 31 December 2019 (2018: £51.5 million, 2017: £45.1 million); • Payments due to vendors (earnout agreements) (notes 19 and 20) have decreased by £10.1 million at 31 December 2019 (2018: £13.9 million, 2017: £46.2 million) and a charge of £2.7 million in 2019 (2018: £32.1 million, 2017: £35.7 million) recognised in the consolidated income statement within the revaluation and retranslation of financial instruments (note 6). Goodwill on the consolidated balance sheet decreased by £60.1 million at 31 December 2019 (2018: £70.2 million, 2017: £78.3 million); and • The goodwill impairment charge (note 3) decreased by £7.4 million in 2018, as a result of the above adjustments that decreased goodwill and payments due to vendors (earnout agreements) on the consolidated balance sheet. • These changes also increases the opening retained earnings balance as at 1 January 2017 by £6.8 million. The restatements described in this note resulted in an increase in the basic and diluted earnings per share from continuing and discontinued operations of 18.6p and 18.4p, respectively, for the year ended 31 December 2019 (2018: decrease of 19.1p and 18.9p, respectively; 2017: increase of 11.7p and 11.5p, respectively). |
New IFRS accounting pronouncements | New IFRS accounting pronouncements In the current year, the following Standards and Interpretations became effective: • IFRS 16 Leases; and • IFRIC 23 Uncertainty over Income Tax Treatments. Impact of the Adoption of IFRS 16 leases IFRS 16 is effective from 1 January 2019. The standard eliminates the classification of leases as either operating or finance leases and introduces a single accounting model. Lessees are required to recognise a right-of-use The Group adopted IFRS 16 effective 1 January 2019 on a modified retrospective basis and applied the standard retrospectively with the cumulative effect of initially applying the standard recognised at the date of initial application as an adjustment to retained earnings. Accordingly, prior year financial information has not been restated and will continue to be reported under IAS 17 Leases. The right-of-use right-of-use right-of-use right-of-use When applying IFRS 16, the Group has applied the following practical expedients, on transition date: • Reliance on the previous identification of a lease (as provided by IAS 17) for all contracts that existed on the date of initial application; • Reliance on previous assessments on whether leases are onerous instead of performing an impairment review; • Exclusion of initial direct costs from the measurement of the right-of-use • The accounting for operating leases with a remaining lease term of less than 12 months as at 1 January 2019 as short-term leases; and • The use of hindsight, such as in determining the lease term if the contract contains options to extend or terminate the lease. The right-of-use right-of-use For the year ended 31 December 2019, depreciation of the right-of-use The following table reconciles the opening balance for the lease liabilities as at 1 January 2019 based upon the operating lease obligations as at 31 December 2018: £ million Operating lease commitments at 31 December 2018 3,628.2 Short-term and low value leases not included in lease liabilities (73.8 ) Extension options reasonably certain to be exercised 115.1 Signed leases not yet commenced (598.1 ) Gross lease liabilities at 1 January 2019 3,071.4 Effect of discounting (745.2 ) Lease liabilities at 1 January 2019 2,326.2 The weighted average discount rate was 5.4% at 1 January 2019. |
Goodwill and other intangible assets | Goodwill and other intangible assets Intangible assets comprise goodwill, certain acquired separable corporate brand names, acquired customer relationships, acquired proprietary tools and capitalised computer software not integral to a related item of hardware. Goodwill represents the excess of fair value attributed to investments in businesses or subsidiary undertakings over the fair value of the underlying net assets, including intangible assets, at the date of their acquisition. Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, defined as the higher of fair value less costs to sell and value in use. The net present value of future cash flows 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 impairment is recognised immediately as an expense and is not subsequently reversed. Corporate brand names, customer relationships and proprietary tools acquired as part of acquisitions of businesses are capitalised separately from goodwill as intangible assets if their value can be measured reliably on initial recognition and it is probable that the expected future economic benefits that are attributable to the asset will flow to the Group. Certain corporate brands of the Group are considered to have an indefinite economic life because of the institutional nature of the corporate brand names, their proven ability to maintain market leadership and profitable operations over long periods of time and the Group’s commitment to develop and enhance their value. The carrying value of these intangible assets is reviewed at least annually for impairment and adjusted to the recoverable amount if required. Amortisation is provided at rates calculated to write off the cost less estimated residual value of each asset on a straight-line basis over its estimated useful life as follows: • Brand names (with finite lives) – 10-20 years. • Customer-related intangibles – 3-10 years. • Other proprietary tools – 3-10 years. • Other (including capitalised computer software) – 3-5 years. |
Contingent consideration | Contingent consideration Contingent consideration is accounted for in accordance with IFRS 3 Business Combinations. Contingent consideration only applies to situations where contingent payments are not dependent on future employment of vendors and any such payments are expensed when they relate to future employment. Future anticipated payments to vendors in respect of contingent consideration (earnout agreements) are initially recorded at fair value which is the present value of the expected cash outflows of the obligations. The obligations are dependent on the future financial performance of the interests acquired (typically over a four- to five-year period following the year of acquisition) and assume the operating companies improve profits in line with Directors’ estimates. The Directors derive their estimates from internal business plans together with financial due diligence performed in connection with the acquisition. Subsequent adjustments to the fair value are recorded in the consolidated income statement within revaluation and retranslation of financial instruments. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are shown at cost less accumulated depreciation and any provision for impairment with the exception of freehold land which is not depreciated. The Group assesses the carrying value of its property, plant and equipment to determine if any impairment has occurred. Where this indicates that an asset may be impaired, the Group applies the requirements of IAS 36 Impairment of Assets in assessing the carrying amount of the asset. This process includes comparing its recoverable amount with its carrying value. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset on a straight-line basis over its estimated useful life, as follows: • Freehold buildings – 50 years. • Leasehold land and buildings – over the term of the lease or life of the asset, if shorter. • Fixtures, fittings and equipment – 3-10 • Computer equipment – 3-5 |
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 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 to sell 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. |
Non-current Assets Held for Sale and Discontinued Operations | Non-current Assets Held for Sale and Discontinued Operations Under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations where certain conditions are met, an asset or disposal group that is for sale should be recognised as “held for sale”. An entity should classify a disposal group as held for sale if the carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the disposal group must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets and its sale must be highly probable. Such assets are measured at the lower of carrying amount and fair value less costs to sell, and are not depreciated or amortised, excluding certain assets that are carried at fair value under IFRS 5. Furthermore, when an associate is classified as held for sale, equity accounting ceases. A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, or is a subsidiary acquired exclusively with a view to resale. The profit or loss from a discontinued operation is shown as a single amount on the face of the income statement and the comparatives and related notes restated accordingly. This represents total post-tax profit of the disposal group for the whole of the financial year including any post-tax gain or loss on the measurement of fair value less costs to sell, as well as the post-tax loss on sale of the disposal group. Assets and liabilities classified as held for sale are shown as a separate line on the balance sheet. |
Accrued and deferred income | Accrued and Deferred Income Accrued income is a contract asset and is recognised when a performance obligation has been satisfied but has not yet been billed. Contract assets are transferred to receivables when the right to consideration is unconditional and billed per the terms of the contractual agreement. In certain cases, payments are received from customers 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 work in progress Trade receivables are stated net of provisions for bad and doubtful debts. 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. 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. Under IFRS 9 Financial Instruments, 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, work in progress and accrued income, which are mainly due from large national or multinational companies, the Group assessment of expected credit losses includes provisions for specific clients and receivables where the contractual cash flow is deemed at risk. Additional provisions are made based on the assessment of recoverability of aged receivables, where the following criteria are met: • 100% of the asset aged over 1 year; • 50% of the asset aged between 180 days and 1 year; and • sufficient evidence of recoverability is not evident. Estimated future cash flows represent expectations as at 31 December 2019 and does not consider the impact of the emergence and spread of the C ovid Further details on provisions for bad and doubtful debts are provided in note 18. |
Foreign currency and interest rate hedging | Foreign currency and interest rate hedging The Group’s policy on interest rate and foreign exchange rate management sets out the instruments and methods available to hedge interest and currency risk exposures and the control procedures in place to ensure effectiveness. The Group uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The Group does not hold or issue derivative financial instruments for speculative purposes. Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each balance sheet date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. At the inception of the hedge relationship the entity documents the relationship between the hedging instrument and hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument that is used in a hedging relationship is highly effective in offsetting changes in fair values or cash flows of the hedged item. Note 27 contains details of the fair values of the derivative instruments used for hedging purposes. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in profit or loss immediately, together with any changes in the fair value of the hedged item that is attributable to the hedged risk. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow or net investment hedges is recognised in other comprehensive income and deferred in equity. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. Amounts deferred in equity are recycled in profit or loss in the periods when the hedged item is recognised in profit or loss. However, when the forecast transaction that is hedged results in the recognition of a non-financial non-financial Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained in equity until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in equity is transferred to net profit or loss for the period. Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of host contracts and the host contracts are not carried at fair value with unrealised gains or losses reported in the consolidated income statement. |
Liabilities in respect of option agreements | Liabilities in respect of option agreements Option agreements that allow the Group’s equity partners to require the Group to purchase a non-controlling |
Derecognition of financial liabilities | Derecognition of financial liabilities In accordance with IFRS 9 Financial Instruments, a financial liability of the Group is only released to the consolidated income statement when the underlying legal obligation is extinguished. |
Debt | Debt Interest-bearing debt is recorded at the proceeds received, net of direct issue costs. |
Borrowing costs | Borrowing costs Finance costs of borrowing are recognised in the consolidated income statement over the term of those borrowings. |
Revenue recognition | Revenue recognition The Group is a leading worldwide creative transformation organisation offering national and multinational clients a comprehensive range of communications, experience, commerce and technology services. Contracts often involve multiple agencies offering different services in different countries. As such, the terms of local, regional and global contracts can vary to meet client needs and regulatory requirements. Consistent with the industry, contracts are typically short-term in nature and tend to be cancellable by either party with 90 days notice. The Group is generally entitled to payment for work performed to date. The Group is generally paid in arrears for its services. Invoices are typically payable within 30 to 60 days. Revenue comprises commissions and fees earned in respect of amounts billed and is stated exclusive of VAT, sales taxes and trade discounts. Pass-through costs comprise fees paid to external suppliers when they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media and data collection costs. Costs to obtain a contract are typically expensed as incurred as the contracts are generally short-term in nature. In most instances, promised services in a contract are not considered distinct or represent a series of services that are substantially the same with the same pattern of transfer to the customer and, as such, are accounted for as a single performance obligation. However, where there are contracts with services that are capable of being distinct, are distinct within the context of the contract, and are accounted for as separate performance obligations, revenue is allocated to each of the performance obligations based on relative standalone selling prices. Revenue is recognised when a performance obligation is satisfied, in accordance with the terms of the contractual arrangement. Typically, performance obligations are satisfied over time as services are rendered. Revenue recognised over time is based on the proportion of the level of service performed. Either an input method or an output method, depending on the particular arrangement, is used to measure progress for each performance obligation. For most fee arrangements, costs incurred are used as an objective input measure of performance. The primary input of substantially all work performed under these arrangements is labour. There is normally a direct relationship between costs incurred and the proportion of the contract performed to date. In other circumstances relevant output measures, such as the achievement of any project milestones stipulated in the contract, are used to assess proportional performance. For our retainer arrangements, we have a stand ready obligation to perform services on an ongoing basis over the life of the contract. The scope of these arrangements are broad and generally are not reconcilable to another input or output criteria. In these instances, revenue is recognised using a time-based method resulting in straight-line revenue recognition. The amount of revenue recognised depends on whether we act as an agent or as a principal. Certain arrangements with our clients are such that our responsibility is to arrange for a third party to provide a specified good or service to the client. In these cases we are acting as an agent as we do not control the relevant good or service before it is transferred to the client. When we act as an agent, the revenue recorded is the net amount retained. Costs incurred with external suppliers (such as production costs and media suppliers) are excluded from revenue and recorded as work in progress until billed. The Group acts as principal when we control the specified good or service prior to transfer. When the Group acts as a principal (such as when supplying in-house out-of-pocket 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. The Group recognises incentive revenue as the related performance obligation is satisfied. 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. Discontinued operations ( Data Investment Management) Revenue for market research services is typically recognised over time based on input measures. For certain performance obligations, output measures such as the percentage of interviews completed, percentage of reports delivered to a client and the achievement of any project milestones stipulated in the contract are used to measure progress. While most of the studies provided in connection with the Group’s market research contracts are undertaken in response to an individual client’s or group of clients’ specifications, in certain instances a study may be developed as an off-the-shelf product offering sold to a broad client base. For these transactions, revenue is recognised when the product is delivered. When the terms of the transaction provide for licensing the right to access a product on a subscription basis, revenue is recognised over the subscription period, typically on a straight-line basis. |
Taxation | Taxation Corporate taxes are payable on taxable profits at current rates. The tax expense represents the sum of the tax currently payable and deferred tax. The Group is subject to corporate taxes in a number of different jurisdictions and judgement is required in determining the appropriate provision for transactions where the ultimate tax determination is uncertain. In such circumstances, the Group recognises liabilities for anticipated taxes based on the best information available and where the anticipated liability is both probable and estimable, liabilities are classified as current. Any interest and penalties accrued are included in corporate income taxes both in the consolidated income statement and balance sheet. Where the final outcome of such matters differs from the amount recorded, any differences may impact the income tax and deferred tax provisions in the period in which the final determination is made. The tax laws that apply to the Group’s subsidiaries may be amended by the relevant tax authorities. Such potential amendments are regularly monitored and adjustments are made to the Group’s tax liabilities and deferred tax assets and liabilities where necessary. The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the consolidated income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are recognised for all taxable temporary differences unless specifically excepted by IAS 12 Income Taxes. Deferred tax is charged or credited in the consolidated income statement, except when it relates to items charged or credited to other comprehensive income or directly to equity, in which case the deferred tax is also dealt with in other comprehensive income or equity. Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised, which can require the use of accounting estimation and the exercise of judgement. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or other assets and liabilities (other than in a business combination) in a transaction that affects neither the taxable profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on enacted or substantively enacted legislation. |
Retirement benefit costs | Retirement benefit costs The Group accounts for retirement benefit costs in accordance with IAS 19 Employee Benefits. For defined contribution plans, contributions are charged to the consolidated income statement as payable in respect of the accounting period. For defined benefit plans the amounts charged to operating profit are the current service costs, past service costs, administrative expenses and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the consolidated income statement when the related plan amendment occurs. Net interest expense is calculated by applying the discount rate to the recognised overall surplus or deficit in the plan. Actuarial gains and losses are recognised immediately in the consolidated statement of comprehensive income. Where defined benefit plans are funded, the assets of the plan are held separately from those of the Group, in separate independently managed funds. Pension plan assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent currency and term to the plan liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. Recognition of a surplus in a defined benefit plan is limited based on the economic gain the Company is expected to benefit from in the future by means of a refund or reduction in future contributions to the plan, in accordance with IAS 19. |
Provisions for liabilities and charges | Provisions for liabilities and charges Provisions comprise liabilities where there is uncertainty about the timing of settlement, but where a reliable estimate can be made of the amount. These include provisions for other property-related liabilities. Also included are other provisions, such as certain long-term employee benefits and legal claims, where the likelihood of settlement is considered probable. |
Leases | Leases The Group has adopted IFRS 16 Leases from 1 January 2019. 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 right-of-use Right-of-use 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 low-value In 2018 and 2017 leases were accounted for per IAS 17 Leases. The following policies were applicable: Finance Leases Assets held under finance leases are recogni s Operating Leases Operating lease rentals are charged to the consolidated income statement on a straight-line basis over the lease term. Any premium or discount on the acquisition of a lease is spread over the life of the lease on a straight-line basis. |
Translation of foreign currencies | Translation of foreign currencies Foreign currency transactions arising from normal trading activities are recorded at the rates in effect at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the year-end year-end The income statements of foreign subsidiary undertakings are translated into pounds sterling at average exchange rates and the year-end year-end 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 | Hyperinflation in Argentina During 2019 and 2018, Argentina was designated as a hyperinflationary economy and the financial statements of the Group’s subsidiaries in Argentina have been adjusted for the effects of inflation in accordance with IAS 29 Financial Reporting in Hyperinflationary Economies. IAS 29 requires that the income statement is adjusted for inflation in the period and translated at the year-end non-monetary non-monetary |
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 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 |
Critical judgements and estimation uncertainty in applying accounting policies | Critical judgements and estimation uncertainty in applying accounting policies Management is required to make key decisions and judgements whilst acknowledging there is estimation uncertainty in the process of applying the Group’s accounting policies. These estimates and judgements are reviewed on an ongoing basis. Where judgement has been applied or estimation uncertainty exists, the key factors taken into consideration are disclosed in the accounting policies and the appropriate note in these financial statements. The most significant areas of estimation uncertainty include: • Goodwill: The discounted cash flow methodology employed by the Group when testing for goodwill impairment requires estimates regarding revenue growth, operating margins, discount rates and working capital requirements. Further details of the methodology, discount rates, long-term growth rates and estimates used in relation to the goodwill impairment are set out in note 14. • Payments due to vendors (earnout agreements) and liabilities in respect of put options: Estimates are required regarding growth rates in deriving future financial performance and discount rates to be applied when measuring the liabilities for earnouts and put options. Further details on growth rates and discount rates and the sensitivity to these estimates are set out in note 27. • Provision for post-employment benefits: Estimates are required in the accounting for defined benefit pension plans, including establishing discount rates, rates of increase in salaries and pensions in payment, inflation and mortality assumptions. These estimates are made by management based on the advice of qualified advisors. Details of the assumptions used and the sensitivity of the benefit obligation to these assumptions are set out in note 24. • Deferred consideration on the Kantar disposal: as per the terms of the Kantar disposal, deferred consideration consisted of amounts expected to be received in future periods on satisfaction of certain conditions and the deferral of consideration against services to be provided to Kantar in the future, as detailed in note 12. Estimates are required in determining amounts to be received and the value of services to be provided, taking into account uncertainty in the ultimate timing and resolution of each of these. The sensitivity to these estimates is specific to each individual circumstance and no individual estimate is expected to result in a material change to the amount. • Taxation: Estimates are required in determining whether a provision is required and, the amount of taxes that will be due, particularly given the many countries in which the Group operates. Where the final tax outcome is different from the amounts recorded then such differences may expose the Group to additional tax liabilities or impact the carrying value of deferred tax assets, which would affect the future tax charge. Further details on the tax charge, corporate income tax payable and deferred tax balances are set out in the income statement, balance sheet and notes 7 and 17. The most significant areas of judgements include: • Revenue recognition: Judgement is required regarding the timing of recognition, particularly in relation to media volume income with regards to whether it is required to be passed back to the client and in assessing progress on performance obligations where revenue is recognised over time. Further details are set out in the accounting policy. • Non-current assets held for sale and discontinued operations: Judgement is required in determining the timing of classification of the Group’s Kantar business as held for sale, particularly with the timing of the held for sale classification. Further details are set out in note 12. |
IFRICI23 Uncertainty Over Income Tax Treatments [Member] | |
Accounting policies [Line Items] | |
Impact of the Adoption | Impact of the Adoption of IFRIC 23 Uncertainty over Income Tax Treatments IFRIC 23 clarifies the accounting for uncertainties in income tax and is effective from 1 January 2019. There has been no impact to our financial statements as a result of the adoption of IFRIC 23. At the date of authorisation of these financial statements, the following amendments to standards, which have not been applied in these financial statements, were in issue but not yet effective: — Impact of Interest Rate Benchmark Reform, (Amendments to IFRS 9, IAS 39 and IFRS 7) Impact of Interest Rate Benchmark Reform The amendments issued by the IASB, Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7), are mandatory and are effective from 1 January 2020. They provide relief on specific aspects of pre-replacement issues that impact hedge accounting, whereby entities applying hedge accounting requirements will be able to assume that the interest rate benchmark on which the hedged cash flows and cash flows of the hedging instrument are based are not altered as a result of Interest Rate Benchmark Reform. The Group does not consider that these amendments will have a significant impact on the financial statements as they provide relief for the possible effects of the uncertainty arising from interest rate benchmark reform. |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Schedule of Reconciliation about operating lease obligations | The following table reconciles the opening balance for the lease liabilities as at 1 January 2019 based upon the operating lease obligations as at 31 December 2018: £ million Operating lease commitments at 31 December 2018 3,628.2 Short-term and low value leases not included in lease liabilities (73.8 ) Extension options reasonably certain to be exercised 115.1 Signed leases not yet commenced (598.1 ) Gross lease liabilities at 1 January 2019 3,071.4 Effect of discounting (745.2 ) Lease liabilities at 1 January 2019 2,326.2 |
Summary of Estimated Useful Life of Intangible Assets | Amortisation is provided at rates calculated to write off the cost less estimated residual value of each asset on a straight-line basis over its estimated useful life as follows: • Brand names (with finite lives) – 10-20 years. • Customer-related intangibles – 3-10 years. • Other proprietary tools – 3-10 years. • Other (including capitalised computer software) – 3-5 years. |
Summary of Estimated Useful Life of Property, Plant and Equipment | Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset on a straight-line basis over its estimated useful life, as follows: • Freehold buildings – 50 years. • Leasehold land and buildings – over the term of the lease or life of the asset, if shorter. • Fixtures, fittings and equipment – 3-10 • Computer equipment – 3-5 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Contributions by Reportable Segments | Reportable segments Reported contributions were as follows: Continuing operations – Income statement Revenue 1 Revenue pass-through 2 Headline 3 Headline 4 £m £m £m 2019 Global Integrated Agencies 5 10,205.2 8,108.1 1,219.5 15.0% Public Relations 6 956.5 898.0 140.6 15.7% Specialist Agencies 7 2,072.4 1,840.4 200.5 10.9% 13,234.1 1,560.6 2018 8 Global Integrated Agencies 5 9,930.7 8,070.8 1,228.2 15.2% Public Relations 6 931.7 879.9 139.2 15.8% Specialist Agencies 7 2,184.3 1,925.0 283.8 14.7% 13,046.7 1,651.2 2017 8 Global Integrated Agencies 5 10,028.6 8,315.5 1,321.3 15.9% Public Relations 6 915.0 864.3 123.5 14.3% Specialist Agencies 7 2,202.8 1,964.3 348.3 17.7% 13,146.4 1,793.1 Notes 1 Intersegment sales have not been separately disclosed as they are not material. 2 Revenue less pass-through costs is revenue less media, data collection and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are changed directly to clients, predominantly media and data collection costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. 3 A reconciliation from operating profit to headline operating profit is provided in note 32. 4 Headline operating profit margin is calculated as headline operating profit (defined above) as a percentage of revenue less pass-through costs. 5 Global Integrated Agencies includes all of Grey, GroupM, Hogarth, Ogilvy, VMLY&R and Wunderman Thompson. 6 Public Relations represents the Group’s specialists in this area and remains as previously reported but excludes Ogilvy PR which now sits within Global Integrated Agencies as part of Ogilvy. 7 Specialist Agencies represent the Group’s other agencies that specialise in certain areas, whether by region or range of services. 8 Prior year figures have been re-presented Continuing operations – Other information Share-based Capital 1 Depreciation 2 Goodwill 3 Share of Interests in £m £m £m £m £m £m 2019 Global Integrated Agencies 54.3 265.6 392.8 4.8 17.0 164.2 Public Relations 4.6 17.5 31.5 – (0.3 ) 5.5 Specialist Agencies 4 7.1 46.7 84.0 42.9 (2.0 ) 643.3 66.0 329.8 508.3 47.7 14.7 813.0 2018 5 Global Integrated Agencies 59.5 255.6 159.1 142.8 25.4 175.1 Public Relations 7.1 12.5 10.8 – 1.3 6.2 Specialist Agencies 4 11.7 45.9 39.4 33.7 3.8 615.5 78.3 314.0 209.3 176.5 30.5 796.8 2017 5 Global Integrated Agencies 77.8 214.3 157.1 – 16.2 179.9 Public Relations 7.2 9.5 9.8 7.5 0.9 5.6 Specialist Agencies 4 13.3 47.2 42.2 19.6 80.9 879.7 98.3 271.0 209.1 27.1 98.0 1,065.2 Notes 1 Capital additions include purchases of property, plant and equipment and other intangible assets (including capitalised computer software). 2 Depreciation of property, plant and equipment, depreciation of right-of-use assets and amortisation of other intangible assets. 3 Goodwill impairment figures in 2018 have been restated, as described in the accounting policies. 4 Specialist Agencies includes the Kantar associate and amounts previously reported under the Data Investment Management segment. 5 Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. |
Contributions by Geographical Area | Contributions by geographical area were as follows: Continuing operations 2019 2018 1 2017 1 Revenue 2 North America 3 4,854.7 4,851.7 5,083.5 United Kingdom 1,797.1 1,785.6 1,737.4 Western Continental Europe 2,628.8 2,589.6 2,455.7 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 3,953.5 3,819.8 3,869.8 13,234.1 13,046.7 13,146.4 Revenue less pass-through costs 4 North America 3 4,034.3 4,059.7 4,335.2 United Kingdom 1,390.1 1,393.8 1,390.0 Western Continental Europe 2,176.4 2,182.9 2,063.7 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 3,245.7 3,239.3 3,355.0 Headline operating profit 5 North America 3 662.0 710.6 816.3 United Kingdom 188.5 179.6 218.1 Western Continental Europe 261.5 289.4 249.8 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 448.6 471.6 508.9 1,560.6 1,651.2 1,793.1 Headline operating profit margin 6 Margin Margin 1 Margin 1 North America 16.4% 17.5% 18.8% United Kingdom 13.6% 12.9% 15.7% Western Continental Europe 12.0% 13.3% 12.1% Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 13.8% 14.6% 15.2% Notes 1 Prior year figures have been re-presented 2 Intersegment sales have not been separately disclosed as they are not material. 3 North America includes the US with revenue of £4,576.5 million (2018: £4,576.1 million, 2017: £4,782.0 million), revenue less pass-through costs of £3,806.3 million (2018: £3,836.0 million, 2017: £4,089.9 million) and headline operating profit of £620.6 million (2018: £674.4 million, 2017: £773.5 million). 4 Revenue less pass-through costs is revenue less media, data collection and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are changed directly to clients, predominantly media and data collection costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. 5 A reconciliation from operating profit to headline operating profit is provided in note 32. 6 Headline operating profit margin is calculated as headline operating profit (defined above) as a percentage of revenue less pass-through costs. Continuing operations 2019 £m 2018 £m Non-current 1 North America 2 6,812.6 7,247.0 United Kingdom 1,743.3 2,067.9 Western Continental Europe 3,417.2 4,371.9 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 3,665.7 4,005.9 15,638.8 17,692.7 Notes 1 Non-current 2 North America includes the United States with non-current |
Costs of services and general_2
Costs of services and general and administrative costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Costs of Services and General Administrative Costs | Continuing operations 2019 2018 1 2017 1 Costs of services 10,825.1 10,559.1 10,481.6 General and administrative costs 1,113.1 1, 242 3 1,086.9 11,938.2 11,80 1 4 11,568.5 Costs of services and general and administrative costs include: Continuing operations 2019 2018 1 2017 1 Staff costs (note 5) 7,090.6 6,950.6 7,065.1 Establishment costs 672.9 756.6 769.5 Media pass-through costs 1,656.2 1,458.0 1,429.4 Other costs of services and general and administrative costs 2 2,518.5 2,6 36 2 2,304.5 11,938.2 11,80 1 4 11,568.5 Other costs of services and general and administrative costs include: Continuing operations 2019 2018 1 2017 1 Goodwill impairment (note 14) 3 47.7 176.5 27.1 Investment write-downs 7.5 2.0 91.7 Restructuring and transformation costs 153.5 265.5 56.8 Litigation settlement (16.8 ) – – Gain on sale of freehold property in New York (7.9 ) – – Amortisation and impairment of acquired intangible assets 121.5 201.8 138.0 Amortisation of other intangible assets 21.2 20.7 20.1 Depreciation of property, plant and equipment 185.5 188.6 189.0 Depreciation of right-of-use 301.6 – – Losses on sale of property, plant and equipment 3.2 0.6 1.2 Gains on disposal of investments and subsidiaries (40.4 ) (237.9 ) (98.7 ) (Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership (0.4 ) (2.0 ) 0.3 Net foreign exchange losses/(gains) 6.1 (13.0 ) 8.0 Short-term lease expense 83.8 – – Low-value 2.9 – – Notes 1 Prior year figures have been re-presented Non-current 2 Other costs of services and general and administrative costs include £731.4 million (2018: £713.0 million, 2017: £573.1 million) of other pass-through costs. 3 Figures in 2018 have been restated, as described in the accounting policies. |
Auditors' Remuneration | Auditors’ remuneration: 2019 2018 2017 Fees payable to the Company’s auditors for the audit of the Company’s annual accounts 1.5 1.4 1.4 The audit of the Company’s subsidiaries pursuant to legislation 28.0 25.2 1 20.7 Other services pursuant to legislation 5.0 4.2 4.0 Fees payable to the auditors pursuant to legislation 34.5 30.8 26.1 Tax advisory services – – 0.1 Tax compliance services – 0.1 0.1 Other services 1 8.2 4.7 4.6 Total non-audit 8.2 4.8 4.8 Total fees 42.7 35.6 30.9 Note 1 Includes a true-up of £3.5 million. 2 Other services include audits for earnout purposes. |
Share of results of associates
Share of results of associates (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Summary of Share of Results of Associates | Share of results of associates include: Continuing operations 2019 1 £m 2018 2 2017 2 Share of profit before interest and taxation 99.2 110.8 129.7 Share of exceptional (losses)/gains (47.8 ) (41.5 ) 0.6 Share of interest and non-controlling (19.4 ) (15.1 ) (12.6 ) Share of taxation (17.3 ) (23.7 ) (19.7 ) 14.7 30.5 98.0 Notes 1 From 5 December 2019 approximately 90% of the Kantar business is treated as a 40% associate following the completion of the transaction outlined in note 12. 2 Prior year figures have been re-presented Non- c |
Our people (Tables)
Our people (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Geographical Distribution of Staff | Our staff numbers, including the Kantar disposal group, averaged 132,823 for the year ended 31 December 2019 against 133,903 in 2018 and 134,428 in 2017. Their geographical distribution was as follows: 2019 2018 2017 North America 25,008 25,990 27,399 United Kingdom 14,192 14,331 14,197 Western Continental Europe 26,973 26,825 25,700 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 66,650 66,757 67,132 132,823 133,903 134,428 |
Reportable Segment Distribution of Staff | Their reportable segment distribution was as follows: 2019 2018 2017 Global Integrated Agencies 82,295 83,015 81,537 Data Investment Management 26,325 27,813 28,014 Public Relations 6,890 6,891 6,899 Specialist Agencies 17,313 16,184 17,978 132,823 133,903 134,428 |
Staff costs | At the end of 2019, staff numbers were 106,786 (2018: 134,281, 2017: 134,413). Staff costs include: Continuing operations 2019 2018 1 2017 1 Wages and salaries 4,946.2 4,828.0 4,937.5 Cash-based incentive plans 227.6 233.0 196.5 Share-based incentive plans 66.0 78.3 98.3 Social security costs 591.7 579.0 580.8 Pension costs 169.7 160.9 161.3 Severance 42.6 30.0 36.8 Other staff costs 2 1,046.8 1,041.4 1,053.9 7,090.6 6,950.6 7,065.1 Notes 1 Prior year figures have been re-presented Non- c 2 Freelance and temporary staff costs are included in other staff costs. |
Finance and investment income_2
Finance and investment income, finance costs and revaluation and retranslation of financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Summary of Finance and Investment Income, Finance Costs and Revaluation and retranslation of Financial Instruments | Finance and investment income includes: Continuing operations 2019 2018 1 2017 1 Income from equity investments 18.3 15.2 16.7 Interest income 80.7 83.7 72.3 99.0 98.9 89.0 Finance costs include: Continuing operations 2019 2018 1 2017 1 Net interest expense on pension plans 3.5 3.6 5.4 Interest on other long-term employee benefits 3.9 3.5 3.3 Interest expense and similar charges 2 252.0 272.0 253.2 Interest expense related to lease liabilities 99.7 – – 359.1 279.1 261.9 Revaluation and retranslation of financial instruments include: Continuing operations 2019 3 2018 1,3 2017 1,3 Movements in fair value of treasury instruments 0.4 (11.0 ) 0.4 Premium on the early repayment of bonds (63.4 ) – – Revaluation of investments held at fair value through profit or loss 9.1 67.8 – Revaluation of put options over non-controlling (24.3) 25.9 39.5 Revaluation of payments due to vendors (earnout agreements) (3.7) 46.1 156.5 Retranslation of financial instruments 245.7 (205.1 ) 194.6 163.8 (76.3 ) 391.0 Notes 1 Prior year figures have been re-presented 2 Interest expense and similar charges are payable on bank overdrafts, bonds and bank loans held at amortised cost. 3 Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Tax Charge | The tax charge comprises: Continuing operations 2019 2018 1 2017 1 Corporation tax Current year 423.0 404.2 383.0 Prior years (63.4 ) (108.1 ) (97.2 ) 359.6 296.1 285.8 Deferred tax Current year (78.3 ) (41.5 ) (207.4 ) Prior years (6.3 ) 1.4 4.6 (84.6 ) (40.1 ) (202.8 ) Tax charge 275.0 256.0 83.0 |
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: Continuing operations 2019 2 2018 1,2 2017 1,2 Profit before taxation 1,214.3 1,019.3 1,894.0 Tax at the corporation tax rate of 19.0% 3 230.7 193.7 364.6 Tax effect of share of results of associates (2.7 ) (5.8 ) (18.8 ) Irrecoverable withholding taxes 44.7 48.9 31.6 Items that are not deductible/(taxable) in determining taxable profit 51.9 67.2 (39.0 ) Effect of different tax rates in subsidiaries operating in other jurisdictions 77.1 71.2 95.2 US Transition Tax related to unremitted foreign earnings – (4.6 ) 20.1 Effect of change in US tax rate on deferred tax balances – – (211.6 ) Origination and reversal on unrecognised temporary differences (3.4 ) 5.1 (18.9 ) Tax losses not recognised or utilised in the year 13.2 19.9 32.5 Utilisation of tax losses not previously recognised (42.7 ) (25.5 ) (10.4 ) Recognition of temporary differences not previously recognised (24.1 ) (7.4 ) (69.7 ) Release of prior year provisions in relation to acquired businesses (19.9 ) (20.4 ) (15.0 ) Other prior year adjustments (49.8 ) (86.3 ) (77.6 ) Tax charge 275.0 256.0 83.0 Effective tax rate on profit before tax 22.6% 25.1% 4.4% Notes 1 Prior year figures have been re-presented in accordance with IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. 2 Profit before taxation has been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. 3 As the Group is subject to the tax rates of more than one country, it has chosen to present its reconciliation of the tax charge using the UK corporation tax rate of 19.0% (2018: 19.0%, 2017: 19.25%). |
Ordinary dividends (Tables)
Ordinary dividends (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Ordinary Dividends | Amounts recognised as distributions to equity holders in the year: 2019 2018 2017 2019 2018 2017 Per share Pence per share £m £m £m 2018 Final dividend 37.30p 37.30p 37.05p 466.4 464.6 467.2 2019 Interim dividend 22.70p 22.70p 22.70p 284.1 282.8 284.3 60.00p 60.00p 59.75p 750.5 747.4 751.5 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Calculation of Basic and Diluted EPS | Basic EPS The calculation of basic EPS is as follows: Continuing operations 2019 1 2018 1 2017 1 Earnings 2 860.1 698.2 1,726.6 Weighted average shares used in basic EPS calculation (million) 1,250.0 1,247.8 1,261.1 EPS 68.8p 56.0p 136.9p Discontinued operations 2019 2018 2017 Earnings 2 (3.8 ) 126.4 237.1 Weighted average shares used in basic EPS calculation (million) 1,250.0 1,247.8 1,261.1 EPS (0.3p ) 10.1p 18.8p Continued and discontinued operations 2019 1 2018 1 2017 1 Earnings 2 856.3 824.6 1,963.7 Weighted average shares used in basic EPS calculation (million) 1,250.0 1,247.8 1,261.1 EPS 68.5p 66.1p 155.7p Note s 1 Earnings figures have been restated as described in the accounting policies. 2 Earnings is equivalent to profit for the year attributable to equity holders of the parent. Diluted EPS The calculation of diluted reported and diluted EPS is as follows: Continuing operations 2019 1 2018 1 2017 1 Diluted earnings 860.1 698.2 1,726.6 Weighted average shares used in diluted EPS calculation (million) 1,260.6 1,261.2 1,275.8 Diluted EPS 68.2p 55.4p 135.3p Discontinued operations 2019 2018 2017 Diluted earnings (3.8 ) 126.4 237.1 Weighted average shares used in diluted EPS calculation (million) 1,260.6 1,261.2 1,275.8 Diluted EPS (0.3p ) 10.0p 18.6p Continued and discontinued operations 2019 1 2018 1 2017 1 Diluted earnings 856.3 824.6 1,963.7 Weighted average shares used in diluted EPS calculation (million) 1,260.6 1,261.2 1,275.8 Diluted EPS 67.9p 65.4p 153.9p Note 1 Earnings figures have been restated as described in the accounting policies. |
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: 2019 2018 2017 Average shares used in basic EPS calculation 1,250.0 1,247.8 1,261.1 Dilutive share options outstanding 0.3 1.6 1.8 Other potentially issuable shares 10.3 11.8 12.9 Shares used in diluted EPS calculation 1,260.6 1,261.2 1,275.8 |
Sources of finance (Tables)
Sources of finance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Equity and Debt Financing | The following table summarises the equity and debt financing of the Group, and changes during the year: Shares Debt Analysis of changes in financing 2019 2018 2019 2018 £m Beginning of year 703.0 701.8 6,217.9 6,481.3 Ordinary shares issued 0.6 1.2 – – Share cancellations (0.5 ) – – – Net decrease in drawings on bank loans and corporate bonds – – (1,713.2 ) (440.6 ) Amortisation of financing costs included in debt – – 10.3 7.7 Changes in fair value due to hedging arrangements – – 14.3 (9.9 ) Other movements – – 1.5 (0.2 ) Exchange adjustments – – (257.9 ) 179.6 End of year 703.1 703.0 4,272.9 6,217.9 Note The table above excludes bank overdrafts which fall within cash and cash equivalents for the purposes of the consolidated cash flow statement. |
Analysis of Future Anticipated Cash Flows in Relation to Group's Financial Derivatives and Debt | The following table is an analysis of future anticipated cash flows in relation to the Group’s debt, on an undiscounted basis which, therefore, differs from the fair value and carrying value: 2019 2018 £m Within one year (324.8 ) (748.4 ) Between one and two years (204.0 ) (596.8 ) Between two and three years (692.1 ) (937.1 ) Between three and four years (726.3 ) (742.5 ) Between four and five years (634.2 ) (786.8 ) Over five years (2,761.9 ) (4,199.7 ) Debt financing (including interest) under the Revolving Credit Facility and in relation to unsecured loan notes (5,343.3 ) (8,011.3 ) Short-term overdrafts – within one year 1 (8, 572 ) (8, 864 ) Future anticipated cash flows (13,9 15 ) (16, 875 ) Effect of discounting/financing rates 1,070.4 1,793.4 Debt financing (12, 845 ) (15, 082 ) Note 1 Figures have been restated to be in accordance with IAS 32 Financial Instruments: Presentation, as described in the accounting policies. 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 2019 Payable Receivable Payable Receivable Within one year 113.6 107.8 44.0 45.0 Between one and two years 17.5 10.9 – – Between two and three years 11.8 6.2 – – Between three and four years 11.6 6.1 – – Between four and five years 11.6 6.1 – – Over five years 449.8 456.3 – – 615.9 593.4 44.0 45.0 Financial liabilities Financial assets 2018 Payable Receivable Payable Receivable Within one year 229.3 221.9 124.6 120.6 Between one and two years 50.0 45.3 11.8 6.5 Between two and three years 688.4 685.3 11.5 6.4 Between three and four years 408.5 406.6 11.6 6.5 Between four and five years – – 11.6 6.6 Over five years – – 461.4 498.2 1,376.2 1,359.1 632.5 644.8 |
Analysis of Fixed and Floating Rate Debt by Currency | Analysis of fixed and floating rate debt by currency including the effect of interest rate and cross-currency swaps: 2019 Currency £m Fixed 1 Floating Period 1 $ – fixed 1,178.2 4.06 n/a 95 £ – fixed 844.1 2.73 n/a 188 € – fixed 1,777.7 2.34 n/a 82 – floating 423.3 n/a EURIBOR 16 Other 49.6 n/a n/a n/a 4,272.9 2018 Currency £m Fixed 1 Floating Period 1 $ – fixed 1,154.8 4.58 n/a 181 – floating 1,029.6 n/a LIBOR n/a £ – fixed 1,044.1 3.43 n/a 232 € – fixed 2,425.9 1.99 n/a 75 – floating 449.2 n/a EURIBOR n/a Other 114.3 n/a n/a n/a 6,217.9 Note 1 Weighted average. These rates do not include the effect of gains on interest rate swap terminations that are written to income over the life of the original instrument. |
Analysis of cash flows (Tables)
Analysis of cash flows (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Analysis of Cash Flows | The following tables analyse the items included within the main cash flow headings on page F-17. Net cash from operating activities: 2019 1 2018 1 2017 1 Profit for the year 950.1 901.1 2,059.4 Taxation 353.8 323.9 197.0 Revaluation and retranslation of financial instruments (154.4 ) 72. 8 (409.3 ) Finance costs 376.4 289.3 269.8 Finance and investment income (102.6 ) (104.8 ) (95.2 ) Share of results of associates (21.2 ) (43.5 ) (113.5 ) Goodwill impairment on classification as held for sale 94.5 – – Gain on sale of discontinued operations (73.8 ) – – Attributable tax expense on sale of discontinued operations 157.4 – – Adjustments for: Non-cash 71.4 84.8 105.0 Depreciation of property, plant and equipment 203.2 225.1 230.7 Depreciation of right-of-use 317.9 – – Impairment of goodwill 47.7 176.5 27.1 Amortisation and impairment of acquired intangible assets 135.6 280.0 195.1 Amortisation of other intangible assets 29.6 38.7 36.3 Investment write-downs 7.5 2.0 95.9 Gains on disposal of investments and subsidiaries (45.1 ) (235.5 ) (129.0 ) (Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership (0.4 ) (2.0 ) 0.3 Gain on sale of freehold property in New York (7.9 ) – – Losses on sale of property, plant and equipment 3.2 0.6 1.1 Decrease/(increase) in trade receivables and accrued income 159.0 (298. 9 ) (90.4 ) Increase/(decrease) in trade payables and deferred income 394.7 500.9 (170.8 ) Increase in other receivables (263.8 ) (52.9 ) (110.6 ) Decrease in other payables – short-term (16.4 ) (31.8 ) (122.8 ) Increase in other payables – long-term 53.7 0.4 20.1 Increase/(decrease) in provisions 23.1 48.0 (57.3 ) Corporation and overseas tax paid (536.0 ) (383.6 ) (424.7 ) Payment on early settlement of bonds (63.4 ) – – Interest and similar charges paid (270.6 ) (252.8 ) (246.6 ) Interest paid on lease liabilities (105.1 ) – – Interest received 80.8 90.4 76.9 Investment income 18.3 15.4 16.8 Dividends from associates 33.3 49.7 46.8 Net cash inflow from operating activities 1,850.5 1,693.8 1,408.1 Note 1 Figures have been restated , Acquisitions and disposals: 2019 2018 2017 Initial cash consideration (3.9 ) (126.7 ) (214.8 ) Cash and cash equivalents acquired – 11.3 28.9 Earnout payments (130.2 ) (120.2 ) (199.1 ) Purchase of other investments (including associates) (27.2 ) (48.1 ) (92.5 ) Acquisitions (161.3 ) (283.7 ) (477.5 ) Proceeds on disposal of investments and subsidiaries 1 2,468.5 849.0 296.0 Cash and cash equivalents disposed (327.5 ) (15.1 ) – Disposals of investments and subsidiaries 2,141.0 833.9 296.0 Cash consideration for non-controlling (62.7 ) (109.9 ) (47.3 ) Net acquisition payments and disposal proceeds 1,917.0 440.3 (228.8 ) Note 1 Proceeds on disposal of investments and subsidiaries includes return of capital from investments in associates. Share repurchases and buybacks: 2019 2018 2017 Purchase of own shares by ESOP Trusts – (102.8 ) (214.6 ) Shares purchased into treasury (43.8 ) (104.3 ) (289.6 ) Net cash outflow (43.8 ) (207.1 ) (504.2 ) Net (decrease)/increase in borrowings: 2019 2018 2017 (Decrease)/increase in drawings on bank loans (70.6) (819.3) 785.6 Repayment of € 600 million bonds (512.7) – – Repayment of $812 million bonds (618.8) – – Partial repayment of $272 million bonds (135.4) (20.8) – Partial repayment of $450 million bonds (176.2) (37.3) – Repayment of £200 million bonds (199.5) – – Proceeds from issue of € 250 million bonds – 218.8 214.0 Proceeds from issue of € 500 million bonds – 438.0 – Repayment of € 252 million bonds – (220.0 ) – Repayment of £400 million bonds – – (400.0 ) Net cash (outflow)/inflow (1,713.2 ) (440.6 ) 599.6 Cash and cash equivalents: 2019 1 2018 1 2017 1 Cash at bank and in hand 10,442.1 10,433.4 11,509.2 Short-term bank deposits 863.6 632.4 341.8 Overdrafts 2 (8,5 7 ) (8,864.6 ) (9,852.8 ) 2,733.3 2,201.2 1,998.2 Notes 1 Figures have been restated to be in accordance with IAS 32 Financial Instruments: Presentation, as described in the accounting policies. 2 Bank overdrafts are included in cash and cash equivalents because they form an integral part of the Group’s cash management. |
Assets held for sale and disc_2
Assets held for sale and discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Disclosure of detailed information about amounts of discontinued operations included in profit explanatory | Results of the discontinued operations, which have been included in profit for the year, were as follows: 2019 2018 2017 Revenue 2,387.5 2,555.7 2,657.8 Costs of services (1,951.5 ) (2,104.4 ) (2,147.4 ) Gross profit 436.0 451.3 510.4 General and administrative costs (151.7 ) (257.8 ) (180.1 ) Operating profit 284.3 193.5 330.3 Share of results of associates 6.5 13.0 15.5 Profit before interest and taxation 290.8 206.5 345.8 Finance income 3.6 5.4 6.2 Finance costs (17.3 ) (9.7 ) (7.9 ) Revaluation and retranslation of financial instruments (9.4 ) 3.5 18.3 Profit before taxation 267.7 205.7 362.4 Attributable tax expense (78.8 ) (67.9 ) (114.0 ) Profit after taxation 188.9 137.8 248.4 Goodwill impairment on classification as held for sale 1 (94.5 ) – – Gain on sale of discontinued operations 73.8 – – Attributable tax expense on sale of discontinued operations (157.4 ) – – Net gain attributable to discontinued operations 10.8 137.8 248.4 Attributable to Equity holders of the parent (3.8 ) 126.4 237.1 Non-controlling 14.6 11.4 11.3 10.8 137.8 248.4 Note 1 Goodwill impairment of £94.5 million arose from the assessment of fair value less costs to sell under IFRS 5. |
Disclosure of detailed information about gain on sale of discontinued operations explanatory | The gain on sale of discontinued operations disposed by 31 December 2019 is calculated as follows: 2019 Intangible assets (including goodwill) 2,410.0 Property, plant and equipment 115.7 Right-of-use 103.5 Interests in associates and joint ventures 92.3 Other investments 11.5 Deferred tax assets 44.1 Corporate income tax recoverable 49.8 Trade and other receivables 748.8 Cash and cash equivalents 324.9 Trade and other payables (839.8 ) Corporate income tax payable (48.2 ) Lease liabilities (106.3 ) Deferred tax liabilities (98.6 ) Provisions for post-employment benefits (26.7 ) Provisions for liabilities and charges (22.4 ) Net assets 2,758.6 Non-controlling (19.1 ) Net assets excluding non-controlling 2,739.5 Consideration received in cash and cash equivalents 2,352.1 Re-investment in equity stake 1 231.7 Transaction costs (56.1 ) Deferred consideration 2 1.6 Total consideration received 2,529.3 Loss on sale before exchange adjustments (210.2 ) Exchange adjustments recycled to the income statement 284.0 Gain on sale of discontinued operation 73.8 Notes 1 Re-investment in equity stake represents the value of the Group’s 40% stake in the new Kantar group as part of the disposal. 2 Deferred consideration is made up of £79.6 million expected to be received in future periods on the satisfaction of certain conditions and the deferral of £78.0 million consideration against services the Group will supply to Kantar on favourable terms in the future. The conditions expected to be met in the future include the settlement of ongoing legal cases, realisation of the value of certain investments and the utilisation of certain tax losses and allowances. There was uncertainty at the date of disposal in regard to the ultimate resolution of these items and estimates of amounts due to be received were required to be made; there were no individually material estimates. Future services provided by the Group to Kantar arose through the negotiation of Transition Service Arrangements, as is customary for a disposal of this magnitude. The Group will support Kantar for a period of up to 4 years, primarily in the area of IT, on terms which are favourable to the disposal group. As such, an element of consideration has been deferred and will be recognised as the services are provided. |
Disclosure of detailed information about major classes of assets and liabilities held for sale | The major classes of assets and liabilities comprising the operations classified as held for sale at 31 December 2019 are as follows: 2019 Non-current Intangible assets: Goodwill 155.4 Other 5.9 Property, plant and equipment 12.8 Right-of-use 25.7 Interests in associates and joint ventures 4.6 Other investments 0.6 Deferred tax assets 5.9 Trade and other receivables 2.6 213.5 Current assets Corporate income tax recoverable 15.9 Trade and other receivables 189.4 Cash and short-term deposits 66.5 271.8 Total assets classified as held for sale 485.3 Current liabilities Trade and other payables (130.4 ) Corporate income tax payable (3.8 ) Bank overdrafts (0.2 ) Short-term lease liabilities (3.9 ) (138.3 ) Non-current Trade and other payables (1.3 ) Deferred tax liabilities (1.2 ) Provisions for post-employment benefits (8.5 ) Provisions for liabilities and charges (0.6 ) Long-term lease liabilities (20.5 ) (32.1 ) Total liabilities associated with assets classified as held for sale (170.4 ) Net assets of disposal group 314.9 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Movement in right of use of lease assets and liabilities | The movements in the year ended 31 December 2019 were as follows: Right-of-use Land and Plant and Total 1 January 2019 1,862.5 32.6 1,895.1 Additions 348.1 16.5 364.6 Transfers to net investment in subleases 1 (37.6 ) – (37.6 ) Disposals (31.0 ) (0.6 ) (31.6 ) Depreciation of right-of-use (301.5 ) (16.4 ) (317.9 ) Transfer to disposal group classified as held for sale (134.4 ) (3.7 ) (138.1 ) 31 December 2019 1,706.1 28.4 1,734.5 Lease liabilities Land and Plant and Total 1 January 2019 2,294.4 31.8 2,326.2 Additions 325.9 12.3 338.2 Interest expense related to lease liabilities 101.5 1.2 102.7 Disposals (27.5 ) (0.2 ) (27.7 ) Repayment of lease liabilities (including interest) (326.2 ) (14.9 ) (341.1 ) Transfer to disposal group classified as held for sale (144.7 ) (3.9 ) (148.6 ) 31 December 2019 2,223.4 26.3 2,249.7 |
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: Continuing operations 2019 £m Depreciation of right-of-use Land and buildings (286.5 ) Plant and machinery (15.1 ) Short-term lease expense (83.8 ) Low-value (2.9 ) Variable lease expense (74.2 ) Sublease income 17.5 Charge to operating profit (445.0 ) Interest expense related to lease liabilities (99.7 ) Charge to profit before taxation for leases (544.7 ) |
Disclosure of Maturity of lease liabilities | The maturity of lease liabilities at 31 December 2019 were as follows: 2019 Period ending 31 December 2020 385.9 2021 384.0 2022 335.4 2023 283.0 2024 220.5 Later years 1,393.7 3,002.5 Effect of discounting (752.8 ) Lease liability at 31 December 2019 2,249.7 Short-term lease liability 302.2 Long-term lease liability 1,947.5 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Movements of Goodwill | The movements in 2019 and 2018 were as follows: £m 1 Cost 1 January 2018 13,597. 0 Additions 2 154.4 Revision of earnout estimates (67.6 ) Exchange adjustments 368. 1 31 December 2018 14,051.9 Additions 2 8.5 Revision of earnout estimates (14.1 ) Disposals (18.6 ) Transfer to disposal group classified as held for sale (2,7 2 1 ) Exchange adjustments (41 0.0 ) 31 December 2019 10,888.6 Accumulated impairment losses and write-downs 1 January 2018 722.4 Impairment losses for the year 176.5 Exchange adjustments 20.4 31 December 2018 919.3 Impairment on classification as held for sale 3 70.9 Impairment losses for the year 47.7 Transfer to disposal group classified as held for sale (230.6 ) Exchange adjustments (29.3 ) 31 December 2019 778.0 Net book value 31 December 2019 10,110.6 31 December 2018 13,132.6 1 January 201 8 12,874.6 Notes 1 Figures have been restated, as described in the accounting policies. 2 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. 3 Goodwill impairment of £70.9 million arose from the assessment of fair value less costs to sell of the Kantar group on classification as held for sale under IFRS 5. |
Movements of Other Intangible Assets | Other intangible assets The movements in 2019 and 2018 were as follows: Brands Acquired Other Total Cost 1 January 2018 1,081.3 2,547.8 411.5 4,040.6 Additions – – 60.4 60.4 Disposals – (0.9 ) (37.3 ) (38.2 ) New acquisitions – 40.3 – 40.3 Other movements 1 – 2.9 (7.4 ) (4.5 ) Exchange adjustments 51.5 19.9 10.1 81.5 31 December 2018 1,132.8 2,610.0 437.3 4,180.1 Additions – – 43.2 43.2 Disposals – (3.4 ) (41.0 ) (44.4 ) New acquisitions – 3.5 – 3.5 Other movements – (1.4 ) (1.4 ) Exchange adjustments (41.4 ) (28.2 ) (9.9 ) (79.5 ) Transfer to disposal group classified as held for sale – (979.0 ) (115.9 ) (1,094.9 ) 31 December 2019 1,091.4 1,602.9 312.3 3,006.6 Amortisation and impairment 1 January 2018 – 1,718.7 303.5 2,022.2 Charge for the year – 275.8 38.7 314.5 Disposals – (0.7 ) (27.3 ) (28.0 ) Other movements – – (1.9 ) (1.9 ) Exchange adjustments – 21.4 9.9 31.3 31 December 2018 – 2,015.2 322.9 2,338.1 Charge for the year 13.2 116.8 29.6 159.6 Disposals – (1.6 ) (37.7 ) (39.3 ) Other movements – – 2.6 2.6 Exchange adjustments – (15.2 ) (9.1 ) (24.3 ) Transfer to disposal group classified as held for sale – (835.9 ) (63.0 ) (898.9 ) 31 December 2019 13.2 1,279.3 245.3 1,537.8 Net book value 31 December 2019 1,078.2 323.6 67.0 1,468.8 31 December 2018 1,132.8 594.8 114.4 1,842.0 1 January 2018 1,081.3 829.1 108.0 2,018.4 Note 1 Other movements in acquired intangibles include revisions to fair value adjustments arising on the acquisition of subsidiary undertakings that had been determined provisionally at the immediately preceding balance sheet date, as permitted by IFRS 3 Business Combinations. |
Cash-generating Units with Significant Goodwill | Cash-generating units with significant goodwill and brands with an indefinite useful life as at 31 December are: Goodwill Brands with an 2019 1 2018 1 2019 2018 GroupM 2,921.7 2,928.6 – – Kantar – 2,513.0 – – Wunderman Thompson 2,121.9 2,101.8 409.7 424.8 VMLY&R 901.0 930.4 199.1 206.6 Ogilvy 758.6 614.4 211.1 219.1 Burson Cohn & Wolfe 739.3 711.9 130.2 135.4 Other 2,668.1 3,332.5 128.1 146.9 Total goodwill 10,110.6 13,132.6 1,078.2 1,132.8 Note 1 Figures have been restated, as described in the accounting policies. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Property, Plant and Equipment | The movements in 2019 and 2018 were as follows: Land Freehold Leasehold Fixtures, Computer equipment Total Cost 1 January 2018 37.1 118.8 1,081.8 377.2 703.0 2,317.9 Additions – 17.7 161.4 49.9 85.8 314.8 New acquisitions – 0.1 0.9 1.2 0.9 3.1 Disposals – – (83.5 ) (62.9 ) (109.3 ) (255.7 ) Exchange adjustments – (1.1 ) 41.8 9.9 10.0 60.6 31 December 2018 37.1 135.5 1,202.4 375.3 690.4 2,440.7 Additions – 33.7 158.5 35.0 67.7 294.9 New acquisitions – – – 0.1 – 0.1 Disposals – (109.0 ) (167.3 ) (68.3 ) (76.3 ) (420.9 ) Transfer to disposal group classified as held for sale (2.8 ) (17.1 ) (98.1 ) (115.2 ) (231.5 ) (464.7 ) Exchange adjustments – (16.9 ) (46.7 ) (14.5 ) (26.4 ) (104.5 ) 31 December 2019 34.3 26.2 1,048.8 212.4 423.9 1,745.6 Depreciation 1 January 2018 – 28.5 526.1 236.9 546.9 1,338.4 Charge for the year – 3.1 91.5 44.4 86.1 225.1 Disposals – – (74.6 ) (58.0 ) (107.9 ) (240.5 ) Exchange adjustments – (4.5 ) 24.3 6.4 8.5 34.7 31 December 2018 – 27.1 567.3 229.7 533.6 1,357.7 Charge for the year – 1.5 79.9 36.3 67.8 185.5 Disposals – (7.2 ) (129.9 ) (59.9 ) (74.5 ) (271.5 ) Transfer to disposal group classified as held for sale – (15.6 ) (56.1 ) (81.7 ) (192.6 ) (346.0 ) Exchange adjustments – (1.6 ) (17.9 ) (13.2 ) (23.4 ) (56.1 ) 31 December 2019 – 4.2 443.3 111.2 310.9 869.6 Net book value 31 December 2019 34.3 22.0 605.5 101.2 113.0 876.0 31 December 2018 37.1 108.4 635.1 145.6 156.8 1,083.0 1 January 2018 37.1 90.3 555.7 140.3 156.1 979.5 |
Interests in associates, join_2
Interests in associates, joint ventures and other investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments accounted for using equity method [abstract] | |
Movements in Associates, Joint Ventures and Other Investments | The movements in 2019 and 2018 were as follows: Interests in Other 1 January 2018 1,065.2 1,153.5 Additions 16.7 35.0 Share of results of associate undertakings 43.5 – Dividends (49.7 ) – Other movements 1.2 – Reclassification from other investments to associates 0.3 (0.3 ) Exchange adjustments 12.9 – Disposals (304.0 ) (341.7 ) Reclassification to subsidiaries 16.9 – Revaluation of other investments through profit or loss – 68.1 Revaluation of other investments through other comprehensive income – (247.9 ) Amortisation of other intangible assets (4.2 ) – Write-downs (2.0 ) – 31 December 2018 796.8 666.7 Additions 236.6 18. 3 Share of results of associate undertakings 21.2 – Dividends (33.3 ) – Other movements 1.2 – Exchange adjustments (35.5 ) – Disposals (51.5 ) (42.3 ) Reclassification to subsidiaries (0.3 ) – Revaluation of other investments through profit or loss – 9.1 Revaluation of other investments through other comprehensive income – (141.4 ) Amortisation of other intangible assets (5.6 ) – Transfer to disposal group classified as held for sale (109.1 ) (12.1 ) Write-downs (7.5 ) – 31 December 2019 813.0 498.3 |
Principal Associates and Joint Ventures | The Group’s principal associates and joint ventures at 31 December 2019 included: % Country of Barrows Design and Manufacturing (Pty) Limited 35.0 South Africa Dat Viet VAC Media Corporation 30.0 Vietnam GIIR Inc. 30.0 Korea Haworth Marketing & Media Company 49.0 USA High Co SA 34.1 France Joye Media SL 1 22.5 Spain Nanjing Yindu Ogilvy Advertising Co. Ltd 49.0 China Smollan Holdings (Pty) Ltd 24.8 South Africa Summer (BC) JVCo S.à r.l. 2 40.0 Luxembourg Summer (BC) US JVCo SCSp 2 40.0 Luxembourg Notes 1 Representing the Group’s interest in Imagina. 2 Representing the Group’s interest in Kantar split between the United States and rest of world. |
Summary of Aggregate Financial Performance and Net Asset Position of Associates and Joint Ventures | The following tables present a summary of the aggregate financial performance and net asset position of the Group’s associate undertakings and joint ventures. These have been estimated and converted, where appropriate, to an IFRS presentation based on information provided by the relevant companies at 31 December 2019. 2019 2018 2017 Income statement Revenue 3,619.1 3,685.8 3,800.8 Operating profit 365.6 378.4 440.4 Profit before taxation (385.9 ) 194.7 381.9 Profit for the year (429.6 ) 118.1 312.5 Balance sheet Assets 8,8 5 1 2,940.9 3,192.9 Liabilities (6,765.7 ) (1,570.6 ) (1,633.7 ) Net assets 2,0 89 4 1,370.3 1,559.2 |
Deferred tax (Tables)
Deferred tax (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Analysis of Deferred Tax Balances for Financial Reporting Purposes | The following is the analysis of the deferred tax balances for financial reporting purposes: Gross £m Offset £m As £m Gross £m Offset £m As £m Deferred tax assets 430.9 (243.0 ) 187.9 412.0 (259.0 ) 153.0 Deferred tax liabilities (622.8 ) 243.0 (379.8 ) (738.5 ) 259.0 (479.5 ) (191.9 ) (191.9 ) (326.5 ) – (326.5 ) |
Movements of Major Gross Deferred Tax Assets | The following are the major gross deferred tax assets recognised by the Group and movements thereon in 2019 and 2018: Deferred Accounting Retirement Property, Tax Share- Restructuring Other Total 1 January 2018 53.5 84.9 75.6 68.4 72.7 33.0 5.8 17.9 411.8 Acquisition of subsidiaries – – – – – – – 2.0 2.0 Credit/(charge) to income 4.7 13.0 (11.2 ) (20.6 ) (8.9 ) (15.3 ) 10.7 11.0 (16.6 ) Charge to other comprehensive income – – (0.2 ) – – – – – (0.2 ) Charge to equity – – – – – (1.6 ) – – (1.6 ) Exchange differences 3.4 3.5 4.3 0.1 3.3 0.7 0.8 0.5 16.6 31 December 2018 61.6 101.4 68.5 47.9 67.1 16.8 17.3 31.4 412.0 (Charge)/credit to income (1.7 ) 10.2 6.7 19.4 24.2 2.9 12.5 (16.6 ) 57.6 Charge to other comprehensive income – – (3.2 ) – – – – – (3.2 ) Credit to equity – – – 27.8 – 3.1 – – 30.9 Transfer to disposal group classified as held for sale (4.2 ) (19.2 ) (12.3 ) (13.6 ) (3.0 ) (0.7 ) (3.4 ) 0.1 (56.3 ) Exchange differences (2.2 ) (5.0 ) (2.2 ) 3.2 (2.0 ) (0.6 ) (0.6 ) (0.7 ) (10.1 ) 31 December 2019 53.5 87.4 57.5 84.7 86.3 21.5 25.8 14.2 430.9 |
Movements of Gross Deferred Tax Liabilities | In addition the Group has recognised the following gross deferred tax liabilities and movements thereon in 2019 and 2018: Brands and other intangibles £m Associate earnings £m Goodwill £m Property, plant and equipment £m Financial instruments £m Other temporary differences £m Total £m 1 January 2018 489.2 21.6 140.4 21.2 36.2 56.6 765.2 Acquisition of subsidiaries 10.7 – – – – – 10.7 (Credit)/charge to income (68.8 ) (3.9 ) 31.8 (0.3 ) (0.9 ) (20.7 ) (62.8 ) Charge to other comprehensive income – – – – – 0.5 0.5 Exchange differences 7.5 (0.1 ) 10.1 1.3 4.6 1.5 24.9 31 December 2018 438.6 17.6 182.3 22.2 39.9 37.9 738.5 Acquisition of subsidiaries 0.8 – – – – – 0.8 (Credit)/charge to income (31.2 ) 68.6 10.3 (22.2 ) (0.7 ) (6.7 ) 18.1 Credit to other comprehensive income – – – – – (9.6 ) (9.6 ) Transfer to disposal group classified as held for sale (46.6 ) (7.9 ) (51.7 ) – – 0.6 (105.6 ) Exchange differences (9.3 ) (1.8 ) (5.5 ) – (2.3 ) (0.5 ) (19.4 ) 31 December 2019 352.3 76.5 135.4 – 36.9 21.7 622.8 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
Bad Debt Provisions | Bad debt provisions: 2019 2018 2017 At beginning of year 116.6 91.3 93.8 New acquisitions 5.0 1.5 1.2 Charged to the income statement 45.4 66.7 27.4 Released to the income statement (19.0 ) (11.6 ) (8.4 ) Exchange adjustments (4.1 ) 2.1 (4.1 ) Transfer to disposal group classified as held for sale (8.9 ) – – Utilisations and other movements (23.3 ) (33.4 ) (18.6 ) At end of year 111.7 116.6 91.3 |
Within one year [member] | |
Statement [LineItems] | |
Summary of Trade and Other Receivables | Amounts falling due within one year 2019 £m 2018 £m Trade receivables (net of bad debt provision) 7,007.6 8,062.2 Work in progress 349.5 366.5 VAT and sales taxes recoverable 212.7 264.2 Prepayments 287.1 287.3 Accrued income 3,292.7 3,541.2 Fair value of derivatives 1.4 1.3 Other debtors 671.3 578.8 11,822.3 13,101.5 |
Over 1 year [member] | |
Statement [LineItems] | |
Summary of Trade and Other Receivables | Amounts falling due after more than one year 2019 £m 2018 £m Prepayments 2.2 3.0 Accrued income – 16.5 Fair value of derivatives – 8.4 Other debtors 135.4 152.1 137.6 180.0 |
Trade and other receivable [member] | |
Statement [LineItems] | |
Ageing of Trade Receivables and Other Financial Assets | The ageing of trade receivables and other financial assets by due date is as follows: Carrying amount at 2019 £m Not past due Days past due 2019 0-30 days £m 31-90 days £m 91-180 days £m 181 days- 1 year £m Greater than 1 year £m Trade receivables 7,007.6 5,553.3 934.9 341.0 92.1 22.4 63.9 Other financial assets 582.5 357.6 129.9 48.3 16.2 5.2 25.3 7,590.1 5,910.9 1,064.8 389.3 108.3 27.6 89.2 Carrying amount at 2018 £m Not past due Days past due 2018 0-30 days £m 31-90 days £m 91-180 days £m 181 days- 1 year £m Greater than 1 year £m Trade receivables 8,062.2 5,873.7 1,370.7 549.1 128.3 75.6 64.8 Other financial assets 551.7 424.9 61.3 14.2 8.6 7.7 35.0 8,613.9 6,298.6 1,432.0 563.3 136.9 83.3 99.8 |
Trade and other payables_ amo_3
Trade and other payables: amounts falling due within one year (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Within one year [member] | |
Statement [LineItems] | |
Summary of Trade and Other Payables | The following are included in trade and other payables falling due within one year: 2019 1 2018 1 Trade payables 10,112.1 10,524.3 Deferred income 1,024.6 1,253.6 Payments due to vendors (earnout agreements) 143.4 149.1 Liabilities in respect of put option agreements with vendors 75.7 19.4 Fair value of derivatives 1.5 2.6 Share repurchases - close period commitments 2 252.3 – Other creditors and accruals 2,578.5 3,072.9 14,188.1 15,021.9 Notes 1 Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies 2 During 2019, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 2 January 2020 and ending on 27 February 2020, in accordance with UK listing rules. The commitment resulting from this agreement constitutes a liability at 31 December 2019, which is included in Trade and other payables: amounts falling due within one year and has been recognised as a movement in equity. |
Trade and other payables_ amo_4
Trade and other payables: amounts falling due after more than one year (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Over 1 year [member] | |
Statement [LineItems] | |
Summary of Trade and Other Payables | The following are included in trade and other payables falling due after more than one year: 2019 1 2018 1 Payments due to vendors (earnout agreements) 100.3 251.7 Liabilities in respect of put option agreements with vendors 128.8 188.6 Fair value of derivatives 21.2 14.2 Other creditors and accruals 199.3 355.5 449.6 810.0 Note 1 Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies |
Trade and Other Payable [member] | |
Statement [LineItems] | |
Maturity Analysis for Non-derivative Financial Liabilities | The following tables set out payments due to vendors, comprising contingent consideration and the Directors’ best estimates of future earnout-related obligations: 2019 1 2018 1 Within one year 143.4 149.1 Between one and two years 36.3 140.0 Between two and three years 34.6 36.6 Between three and four years 12.3 44.0 Between four and five years 7.7 17.1 Over five years 9.4 14.0 243.7 400.8 2019 2018 At beginning of year 400.8 584.5 Earnouts paid (130.0 ) (120.2 ) New acquisitions 9.6 48.6 Revision of estimates taken to goodwill (note 14) (14. 1 ) ( 67.6 ) Revaluation of payments due to vendors 3.8 (50.5 ) Transfer to disposal group classified as held for sale (11.5 ) – Exchange adjustments (14. 9 ) 6.0 At end of year 243.7 400.8 Note 1 Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies |
Bank overdrafts, bonds and ba_2
Bank overdrafts, bonds and bank loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Bank Overdrafts, Bonds and Bank Loans Amounts Falling Due Within One Year | Amounts falling due within one year: 2019 1 2018 1 Bank overdrafts 8,572.4 8,864.6 Corporate bonds and bank loans 225.6 583.1 8,798.0 9,447.7 |
Corporate Bonds and Bank Loans Amounts Falling Due After More Than One Year | Amounts falling due after more than one year: 2019 2018 Corporate bonds and bank loans 4,047.3 5,634.8 |
Maturity Analysis for Non-derivative Financial Liabilities | The corporate bonds, bank loans and overdrafts included within liabilities fall due for repayment as follows: 2019 1 2018 1 Within one year 8,798.0 9,447.7 Between one and two years 96.4 423.8 Between two and three years 590.4 761.0 Between three and four years 632.1 609.8 Between four and five years 554.3 670.1 Over five years 2,174.1 3,170.1 12,845.3 15,082.5 Note 1 Figures have been restated to be in accordance with IAS 32 Financial Instruments: Presentation, as described in the accounting policies. |
Provisions for liabilities an_2
Provisions for liabilities and charges (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Provisions for Liabilities and Charges | The movements in 2019 and 2018 were as follows: Property Other Total 1 January 2018 52.6 176.4 229.0 Charged to the income statement 1 72.1 13.9 86.0 Acquisitions 2 0.5 8.3 8.8 Utilised (5.7 ) (20.1 ) (25.8 ) Released to the income statement (5.7 ) (4.6 ) (10.3 ) Other movements 2.0 10.9 12.9 Exchange adjustments 2.9 8.2 11.1 31 December 2018 118.7 193.0 311.7 Charged to the income statement 39.5 7.6 47.1 Acquisitions 2 – 0.7 0.7 Utilised (1.2 ) (12.2 ) (13.4 ) Released to the income statement (10.3 ) (6.9 ) (17.2 ) Other movements 3 (58.4 ) 9.2 (49.2 ) Transfer to disposal group classified as held for sale (6.2 ) (18.4 ) (24.6 ) Exchange adjustments (0.6 ) (6.7 ) (7.3 ) 31 December 2019 81.5 166.3 247.8 Notes 1 Amounts charged to the income statement in 2018 include £50.6 million in regard to transformation costs with respect to the strategic initiative of co-locations 2 Acquisitions include £0.7 million (2018: £8.4 million) of provisions arising from revisions to fair value adjustments related to the acquisition of subsidiary undertakings that had been determined provisionally at the immediately preceding balance sheet date, as permitted by IFRS 3 Business Combinations. 3 Other movements include transfers of property provisions related to property leases which are now recognised in the right-of-use assets, increases of certain property-related liabilities and certain long-term employee benefits. |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Charges for Share-based Incentive Plans | Charges for share-based incentive plans were as follows: Continuing operations 2019 2018 1 2017 1 Share-based payments 66.0 78.3 98.3 Note 1 Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. |
Movement on Ordinary Shares Granted for Significant Restricted Stock Plans | Movement on ordinary shares granted for significant restricted stock plans: Non-vested m Granted Lapsed Vested Non-vested number m Executive Performance Share Plan (EPSP) 6.7 4.2 (1.3 ) (0.8 ) 8.8 Performance Share Awards (PSA) 2.3 1.7 (0.4 ) (1.0 ) 2.6 Leaders, Partners and High Potential Group 9.1 4.1 (1.9 ) (2.0 ) 9.3 Weighted average fair value (pence per share): Executive Performance Share Plan (EPSP) 1,363p 989p 1,334p 1,265p 1,198p Performance Share Awards (PSA) 1,437p 926p 1,210p 1,572p 1,081p Leaders, Partners and High Potential Group 1,154p 909p 1,076p 1,551p 974p |
Provision for post-employment_2
Provision for post-employment benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
Pension Costs | The Group’s pension costs are analysed as follows: Continuing operations 2019 2018 1 2017 1 Defined contribution plans 154.9 146.7 149.5 Defined benefit plans charge to operating profit 14.8 14.2 11.8 Pension costs (note 5) 169.7 160.9 161.3 Net interest expense on pension plans (note 6) 3.5 3.6 5.4 173.2 164.5 166.7 Note 1 Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. |
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: 2019 2018 2017 2016 UK Discount rate 1 2.0 2.8 2.4 2.5 Rate of increase in salaries 2 n/a n/a n/a 3.5 Rate of increase in pensions in payment 4.4 4.3 4.1 4.1 Inflation 2.6 2.8 2.7 2.8 North America Discount rate 1 3.0 4.1 3.5 3.8 Rate of increase in salaries 3.0 3.0 3.1 3.1 Inflation n/a n/a 4.0 4.0 Western Continental Europe Discount rate 1 1.2 2.0 1.9 1.7 Rate of increase in salaries 2.2 2.3 1.9 2.0 Rate of increase in pensions in payment 1.8 1.2 1.2 1.3 Inflation 1.7 1.7 1.7 1.7 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe Discount rate 1 4.6 5.0 4.2 4.2 Rate of increase in salaries 6.1 5.8 5.5 5.9 Inflation 3.7 3.6 4.0 4.0 Notes 1 Discount rates are based on high-quality corporate bond yields. In countries where there is no deep market in corporate bonds, the discount rate assumption has been set with regard to the yield on long-term government bonds. 2 The salary assumptions are no longer applicable to the UK as the plans were either frozen or bought out since 2017. Active participants will not accrue additional benefits for future services under these plans. |
Life Expectancies For Defined Benefit Pension Plans | At 31 December 2019, the life expectancies underlying the value of the accrued liabilities for the main defined benefit pension plans operated by the Group were as follows: Years life expectancy after All North UK Western Other 1 Current pensioners 22.2 21.9 23.1 20.8 14.0 Current pensioners 23.7 23.3 24.1 23.9 17.4 Future pensioners 23.8 23.4 24.7 23.2 14.0 Future pensioners 25.4 24.9 25.9 26.0 17.4 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. |
Weighted Average Duration of Defined Benefit Pension Obligations and Distribution of Timing of Benefit Payments | The following table provides information on the weighted average duration of the defined benefit pension obligations and the distribution of the timing of benefit payments for the next 10 years. The duration corresponds to the weighted average length of the underlying cash flows. All plans North America UK Western Continental Europe Other 1 Weighted average duration 11.2 9.1 13.8 12.7 8.5 Expected benefit payments Benefits expected to be paid 51.4 25.1 15.8 5.8 4.7 Benefits expected to be paid 45.4 24.5 12.6 5.5 2.8 Benefits expected to be paid 46.9 26.0 12.7 5.8 2.4 Benefits expected to be paid 44.4 22.3 12.9 5.7 3.5 Benefits expected to be paid 42.3 20.9 13.0 5.6 2.8 Benefits expected to be paid 216.1 94.7 67.1 32.6 21.7 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. |
Sensitivity Analysis of Significant Actuarial Assumptions | Increase/(decrease) Sensitivity analysis of significant actuarial assumptions 2019 2018 £m Discount rate Increase by 25 basis points: UK (8.2 ) (9.8 ) North America (7.5 ) (8.8 ) Western Continental Europe (3.8 ) (8.7 ) Other 1 (0.7 ) (0.7 ) Decrease by 25 basis points: UK 8.5 10.3 North America 7.7 9.1 Western Continental Europe 3.9 9.3 Other 1 0.7 0.7 Rate of increase in salaries Increase by 25 basis points: Western Continental Europe 0.8 1.3 Other 1 0.6 0.7 Decrease by 25 basis points: Western Continental Europe (0.8 ) (1.2 ) Other 1 (0.6 ) (0.6 ) Rate of increase in pensions in payment Increase by 25 basis points: UK 0.7 1.3 Western Continental Europe 1.9 5.3 Decrease by 25 basis points: UK (0.6 ) (0.8 ) Western Continental Europe (1.9 ) (5.0 ) Life expectancy Increase in longevity by one additional year: UK 11.7 13.6 North America 5.9 5.7 Western Continental Europe 4.3 6.9 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. |
Fair Value of Assets and Assessed Present Value of Liabilities in Pension Plans | At 31 December, the fair value of the assets in the pension plans, and the assessed present value of the liabilities in the pension plans are shown in the following table: 2019 % 2018 % 2017 % Equities 55.5 9.1 76.5 9.1 124.6 13.4 Bonds 272.5 44.8 544.9 64.8 520.0 55.9 Insured annuities 1 239.1 39.3 90.9 10.8 178.5 19.2 Property 0.7 0.1 0.9 0.1 1.3 0.1 Cash 17.7 2.9 31.1 3.7 9.9 1.1 Other 23.0 3.8 96.3 11.5 95.7 10.3 Total fair value of assets 608.5 100.0 840.6 100.0 930.0 100.0 Present value of liabilities (767.5 ) (1,024.0 ) (1,135.4 ) Deficit in the plans (159.0 ) (183.4 ) (205.4 ) Irrecoverable surplus – (0.9 ) (0.9 ) Net liability 2 (159.0 ) (184.3 ) (206.3 ) Plans in surplus 20.6 42.8 43.9 Plans in deficit (179.6 ) (227.1 ) (250.2 ) Notes 1 The increase in 2019 from 2018 in the amount of assets held in insured annuities is attributable to the completion of buy-in transactions during 2019 for certain UK plans. The invested assets for these plans, as at 31 December 2018 consisted of a mixture of equities, bonds, cash and other assets, were transferred to an insurance company and, in accordance with IAS 19, all assets for these plans are now classified as insured annuities. 2 The related deferred tax asset is discussed in note 17. |
Surplus/(Deficit) in Plans by Region | All plan assets have quoted prices in active markets with the exception of insured annuities and other assets. Surplus/(deficit) in plans by region 2019 2018 2017 UK 0.3 33.7 31.5 North America (45.2 ) (68.7 ) (89.2 ) Western Continental Europe (79.4 ) (104.6 ) (107.7 ) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (34.7 ) (43.8 ) (40.0 ) Deficit in the plans (159.0 ) (183.4 ) (205.4 ) |
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. 2019 2019 2018 2018 2017 2017 Funded plans by region UK 0.3 (247.6 ) 33.7 (290.5 ) 31.5 (387.5 ) North America 12.8 (286.2 ) (4.6 ) (375.3 ) (21.4 ) (385.4 ) Western Continental Europe (33.3 ) (77.6 ) (35.8 ) (168.4 ) (37.9 ) (173.3 ) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (3.6 ) (20.9 ) (6.6 ) (19.7 ) (4.2 ) (15.8 ) Deficit/liabilities in the funded plans (23.8 ) (632.3 ) (13.3 ) (853.9 ) (32.0 ) (962.0 ) Unfunded plans by region North America (58.0 ) (58.0 ) (64.1 ) (64.1 ) (67.8 ) (67.8 ) Western Continental Europe (46.1 ) (46.1 ) (68.8 ) (68.8 ) (69.8 ) (69.8 ) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (31.1 ) (31.1 ) (37.2 ) (37.2 ) (35.8 ) (35.8 ) Deficit/liabilities in the unfunded plans (135.2 ) (135.2 ) (170.1 ) (170.1 ) (173.4 ) (173.4 ) Deficit/liabilities in the plans (159.0 ) (767.5 ) (183.4 ) (1,024.0 ) (205.4 ) (1,135.4 ) |
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: Continuing operations 2019 2018 1 2017 1 Service cost 2 12.9 12.0 9.4 Administrative expenses 1.9 2.2 2.4 Charge to operating profit 14.8 14.2 11.8 Net interest expense on pension plans 3.5 3.6 5.4 Charge to profit before taxation for defined benefit plans 18.3 17.8 17.2 Not es 1 Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. 2 Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments. The following tables show the breakdown of amounts recognised in the consolidated statement of comprehensive income (OCI): 2019 2018 2017 Return on plan assets (excluding interest income) 16.7 (43.9 ) 13.4 Changes in demographic assumptions underlying the present value of the plan liabilities 5.9 3.8 12.7 Changes in financial assumptions underlying the present value of the plan liabilities (64.3 ) 45.2 (17.0 ) Experience gain arising on the plan liabilities 5.1 3.8 7.9 Actuarial (loss)/gain recognised in OCI (36.6 ) 8.9 17.0 |
Retirement benefit obligation [member] | |
Statement [LineItems] | |
Movement in Pension Plan Assets and Liabilities | The following table shows an analysis of the movement in the pension plan liabilities for each accounting period: 2019 2018 2017 Plan liabilities at beginning of year 1,024.0 1,135.4 1,209.8 Service cost 1 14.9 15.5 13.0 Interest cost 26.2 30.7 32.9 Actuarial (gain)/loss: Effect of changes in demographic assumptions (5.9 ) (3.8 ) (12.7 ) Effect of changes in financial assumptions 64.3 (45.2 ) 17.0 Effect of experience adjustments (5.1 ) (3.8 ) (7.9 ) Benefits paid 2 (140.8 ) (75.6 ) (79.7 ) (Gain)/loss due to exchange rate movements (22.7 ) 30.0 (36.4 ) Settlement payments 3 (47.4 ) (70.4 ) (1.2 ) Transfer to disposal group classified as held for sale (148.0 ) – – Other 4 8.0 11.2 0.6 Plan liabilities at end of year 767.5 1,024.0 1,135.4 Notes 1 Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments. 2 In 2019, there was an amendment to a US defined benefit plan that allowed certain participants to receive immediate lump sum pay-outs, which totalled £69.7 million. 3 In 2019 and 2018, the Group completed the transfer of the defined benefit obligations for certain UK plans to an insurer resulting in £47.1 million and £70.4 million, respectively, in settlement payments. 4 Other includes acquisitions, disposals, plan participants’ contributions and reclassifications. The reclassifications represent certain of the Group’s defined benefit plans which are included in this note for the first time in the periods presented. |
Plan assets [member] | |
Statement [LineItems] | |
Movement in Pension Plan Assets and Liabilities | (e) Movement in plan assets The following table shows an analysis of the movement in the pension plan assets for each accounting period: 2019 2018 2017 Fair value of plan assets at beginning of year 840.6 930.0 934.2 Interest income on plan assets 22.4 26.3 26.6 Return on plan assets (excluding interest income) 16.7 (43.9 ) 13.4 Employer contributions 37.1 44.9 68.2 Benefits paid 1 (140.8 ) (75.6 ) (79.7 ) (Loss)/gain due to exchange rate movements (15.7 ) 23.0 (28.7 ) Settlement payments 2 (47.4 ) (70.4 ) (1.2 ) Administrative expenses (2.1 ) (3.4 ) (3.1 ) Transfer to disposal group classified as held for sale (111.1 ) – – Other 3 8.8 9.7 0.3 Fair value of plan assets at end of year 608.5 840.6 930.0 Actual return on plan assets 39.1 (17.6 ) 40.0 Notes 1 In 2019, there was an amendment to a US defined benefit plan that allowed certain participants to receive immediate lump sum pay-outs, which totalled £69.7 million. 2 In 2019 and 2018, the Group completed the transfer of the defined benefit obligations for certain UK plans to an insurer resulting in £47.1 million and £70.4 million, respectively, in settlement payments. 3 Other includes acquisitions, disposals, plan participants’ contributions and reclassifications. The reclassifications represent certain of the Group’s defined benefit plans which are included in this note for the first time in the periods presented. |
Risk management policies (Table
Risk management policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Committed Facilities | At 31 December 2019, the Group has access to £6.3 billion of committed facilities with maturity dates spread over the years 2020 to 2046 as illustrated below: 2020 2021 2022 2023 2024+ £m £ bonds £400m (2.875% 2046) 400.0 400.0 US bond $220m (5.625% 2043) 165.8 165.8 US bond $93m (5.125% 2042) 70.0 70.0 Eurobonds € 600m (1.625% 2030) 507.9 507.9 Eurobonds € 750m (2.25% 2026) 634.9 634.9 Eurobonds € 500m (1.375% 2025) 423.3 423.3 US bond $750m (3.75% 2024) 565.5 565.5 Bank revolver ($2,500m 2024) 1,884.9 1,884.9 Eurobonds € 750m (3.0% 2023) 634.9 634.9 US bond $500m (3.625% 2022) 377.0 377.0 Eurobonds € 250m (3m EURIBOR + 0.45% 2022) 211.6 211.6 Bank revolver (A$150m 2020, A$270m 2021) 222.4 79.4 143.0 Eurobonds € 250m (3m EURIBOR + 0.32% 2020) 211.6 211.6 Total committed facilities available 6,309.8 291.0 143.0 588.6 634.9 4,652.3 Drawn down facilities at 31 December 2019 4,304.2 216.9 96.4 588.6 634.9 2,767.4 Undrawn committed credit facilities 2,005.6 |
Summary of currency risk | 2019 1 2018 1 US dollar 240.5 278.1 Euro 153.0 211.4 Notes 1 Figures have been restated, as described in the accounting policies. |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Analysis of Financial Assets and Liabilities | An analysis of the Group’s financial assets and liabilities by accounting classification is set out below: Held at Held at Amortised Carrying £m £m £m 2019 Other investments 255.7 242.6 – 498.3 Cash and short-term deposits 1 – – 11,305.7 11,305.7 Bank overdrafts, bonds and bank loans 1 – – (8,798.0 ) (8,798.0 ) Bonds and bank loans – – (4,047.3 ) (4,047.3 ) Trade and other receivables: amounts falling due within one year – – 7,530.8 7,530.8 Trade and other receivables: amounts falling due after more than one year – – 59.3 59.3 Trade and other payables: amounts falling due within one year – – (10,191.6 ) (10,191.6 ) Trade and other payables: amounts falling due after more than one year – – (2.6 ) (2.6 ) Derivative assets 1.4 – – 1.4 Derivative liabilities 2 (22.7 ) – – (22.7 ) Payments due to vendors (earnout agreements) (note 20) 2 (243.7 ) – – (243.7 ) Liabilities in respect of put options 2 (204.5 ) – – (204.5 ) (213.8 ) 242.6 (4,143.7 ) (4,114.9 ) Derivatives Held at Held at Amortised Carrying £m £m £m £m £m 2018 Other investments – 319.6 347.1 – 666.7 Cash and short-term deposits 1 – – – 11,065.8 11,065.8 Bank overdrafts, bonds and bank loans 1 – – – (9,447.7 ) (9,447.7 ) Bonds and bank loans – – – (5,634.8 ) (5,634.8 ) Trade and other receivables: amounts falling due within one year – – – 8,545.6 8,545.6 Trade and other receivables: amounts falling due after more than one year – – – 68.3 68.3 Trade and other payables: amounts falling due within one year – – – (10,637.3 ) (10,637.3 ) Trade and other payables: amounts falling due after more than one year – – – (8.4 ) (8.4 ) Derivative assets – 9.7 – – 9.7 Derivative liabilities (14.2) (2.6 ) – – (16.8 ) Payments due to vendors (earnout agreements) (note 20) 2 – (400.8 ) – – (400.8 ) Liabilities in respect of put options 2 – (208.0 ) – – (208.0 ) (14.2) (282.1 ) 347.1 (6,048.5 ) (5,997. 7 ) Notes 1 Figures have been restated to be in accordance with IAS 32 Financial Instruments: Presentation, as described in the accounting policies. 2 Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. |
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 1 Level 3 1 2019 Held at fair value through profit or loss Other investments – – 255.7 Derivative assets – 1.4 – Derivative liabilities – (22.7 ) – Payments due to vendors (earnout agreements) (note 20) – – (243.7 ) Liabilities in respect of put options – – (204.5 ) Held at fair value through other comprehensive income Other investments 42.2 – 200.4 Level 1 Level 2 Level 3 2018 Derivatives in designated hedge relationships Derivative liabilities – (14.2 ) – Held at fair value through profit or loss Other investments 0.4 – 319.2 Derivative assets – 1.3 – Derivative liabilities – (2.6 ) – Payments due to vendors (earnout agreements) (note 20) – – (400.8 ) Liabilities in respect of put options – – (208. 0 ) Held at fair value through other comprehensive income Other investments 128.1 – 219.0 Note 1 Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies There have been no transfers between these levels in the years presented. Reconciliation of level 3 fair value measurements 1 Liabilities 2 Other 1 January 2018 (221.7 ) 820.3 Gains recognised in the income statement 26.0 61.1 Losses recognised in other comprehensive income – (140.6 ) Exchange adjustments 1.1 – Additions (37.4 ) 35.0 Disposals – (237.3 ) Cancellations 2.2 – Reclassifications from other investments to interests in associates – (0.3 ) Settlements 21.8 – 31 December 2018 (208.0 ) 538.2 (Losses)/gains recognised in the income statement (30.1 ) 9.1 Losses recognised in other comprehensive income – (55.4 ) Exchange adjustments 6.9 – Additions (34.8 ) 18.2 Disposals – (53.4 ) Cancellations 9.7 – Transfer to disposal group classified as held for sale 31.0 (0.6 ) Settlements 20.8 – 31 December 2019 (204.5 ) 456.1 Note s 1 The reconciliation of payments due to vendors (earnout agreements) is presented in note 20. 2 Figures have been restated, as described in the accounting policies. |
Authorised and issued share c_2
Authorised and issued share capital (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
Summary of Authorised and Issued Share Capital | Equity Nominal Authorised At 1 January 2017 1,750,000,000 175.0 At 31 December 2017 1,750,000,000 175.0 At 31 December 2018 1,750,000,000 175.0 At 31 December 2019 1,750,000,000 175.0 Issued and fully paid At 1 January 2017 1,331,880,730 133.2 Exercise of share options 630,822 0.1 At 31 December 2017 1,332,511,552 133.3 Exercise of share options 166,675 - At 31 December 2018 1,332,678,227 133.3 Exercise of share options 75,625 - Share cancellations (4,586,039 ) (0.5 ) At 31 December 2019 1,328,167,813 132.8 |
Movements and Weighted-average Exercise Price for Options Granted | Movements on options granted (represented in ordinary shares) 1 January Granted Exercised Lapsed Outstanding Exercisable WPP 6,741 – – – 6,741 6,741 WWOP 5,520,774 – (71,475 ) (747,375 ) 4,701,924 4,701,924 WSOP 18,691,100 4,615,000 (4,150 ) (2,904,800 ) 20,397,150 5,249,075 24,218,615 4,615,000 (75,625 ) (3,652,175 ) 25,105,815 9,957,740 Weighted-average exercise price for options over 1 January Granted Exercised Lapsed Outstanding Exercisable Ordinary shares (£) WPP 9.355 – – – 9.355 9.355 WWOP 12.290 – 6.888 12.027 12.421 12.421 WSOP 12.753 9.600 8.372 12.405 12.121 16.164 ADRs ($) WWOP 95.453 – 47.388 91.622 96.744 96.744 WSOP 84.893 62.590 53.140 82.290 79.798 115.940 |
Range of Exercise Prices of Options | Options over ordinary shares Outstanding Range of Weighted average Weighted average 6.268 – 17.055 12.171 90 Options over ADRs Outstanding Range of Weighted average Weighted average 49.230 – 115.940 83.488 89 |
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: 2019 2018 2017 Fair value of UK options (shares) 117.0p 107.0p 112.0p Fair value of US options (ADRs) $8.49 $8.09 $9.40 Weighted average assumptions: UK Risk-free interest rate 0.57% 0.78% 0.57% US Risk-free interest rate 1.61% 2.74% 2.05% Expected life (months) 48 48 48 Expected volatility 24% 24% 17% Dividend yield 3.8% 3.5% 2.9% |
WPP Executive Share Option Scheme [member] | |
Statement [LineItems] | |
Options Granted | As at 31 December 2019, unexercised options over ordinary shares of 6,741 have been granted under the WPP Executive Share Option Scheme as follows: Number of ordinary shares under option Exercise price Exercise dates 3,696 8.333 2015 - 2022 3,045 10.595 2016 - 2023 |
WPP Worldwide Share Ownership Program [member] | |
Statement [LineItems] | |
Options Granted | As at 31 December 2019, unexercised options over ordinary shares of 2,757,654 and unexercised options over ADRs of 388,854 have been granted under the WPP Worldwide Share Ownership Programme as follows: Number of ordinary shares under option Exercise price Exercise dates 82,650 6.268 2014 - 2021 36,500 6.268 2015 - 2021 53,150 7.113 2013 - 2020 25,750 7.113 2014 - 2020 194,079 8.458 2015 - 2022 43,000 13.145 2017 - 2021 1,739,050 13.145 2017 - 2024 4,375 13.145 2018 - 2024 564,975 13.505 2016 - 2023 14,125 13.505 2017 - 2023 Number of ADRs under option Exercise price Exercise dates 24,550 49.230 2014 - 2021 16,530 56.560 2013 - 2020 39,184 67.490 2015 - 2022 166,655 102.670 2017 - 2024 141,935 110.760 2016 - 2023 |
WPP Share Option Plan 2015 [member] | |
Statement [LineItems] | |
Options Granted | As at 31 December 2019, unexercised options over ordinary shares of 13,413,425 and unexercised options over ADRs of 1,396,745 have been granted under the WPP Worldwide Share Ownership Programme as follows: Number of ordinary shares under option Exercise price Exercise 18,250 8.372 2021 - 2025 3,406,900 8.372 2021 - 2028 15,500 9.600 2022 - 2026 2,863,975 9.600 2022 - 2029 19,250 13.085 2020 - 2024 2,785,100 13.085 2020 - 2027 55,500 15.150 2018 - 2022 1,952,200 15.150 2018 - 2025 5,375 15.150 2019 - 2025 12,375 17.055 2019 - 2023 2,279,000 17.055 2019 - 2026 Number of ADRs under option Exercise price Exercise 347,660 53.140 2021 - 2028 347,105 62.590 2022 - 2029 276,790 88.260 2020 - 2027 236,265 105.490 2020 - 2026 188,925 115.940 2018 - 2025 |
Other reserves (Tables)
Other reserves (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Reserves | Other reserves comprise the following: Capital Equity 1 Revaluation Translation 1 Total 1 January 2017 2.7 (203.4 ) 271.3 1,665.2 1,735.8 Exchange adjustments on foreign currency net investments – – – (640.1 ) (640.1 ) Gain on revaluation of available for sale investments – – 32.1 – 32.1 Recognition and remeasurement of financial instruments – (8.7 ) – – (8.7 ) 31 December 2017 2.7 (212.1 ) 303.4 1,025.1 1,119.1 Exchange adjustments on foreign currency net investments – – – 275.0 275.0 Accounting policy change (IFRS 9) 1 – – (303.4 ) (104.0 ) (407.4 ) Recognition and remeasurement of financial instruments – (24.3 ) – – (24.3 ) 31 December 2018 2.7 (236.4 ) – 1,196.1 962.4 Exchange adjustments on foreign currency net investments – – – (607.1 ) (607.1 ) Exchange adjustments recycled to the income statement on disposal of discontinued operations – – – (284.0 ) (284.0 ) Share cancellations 0.5 – – – 0.5 Recognition and remeasurement of financial instruments – 10.6 – – 10.6 Share purchases – close period commitments – (252.3 ) – – (252.3 ) 31 December 2019 3.2 (478.1 ) – 305.0 (169.9 ) Notes 1 Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. 2 Due to the adoption of IFRS 9, cumulative gains and losses on revaluation of available for sale investments have been transferred to retained earnings. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Book Values of Identifiable Assets and Liabilities Acquired and Their Fair Value | Acquisitions in 2018 The Group acquired a number of subsidiaries in the year. The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the Group. The fair value adjustments for certain acquisitions have been determined provisionally at the balance sheet date. Book Fair value Fair Intangible assets – 40.3 40.3 Property, plant and equipment 3.1 – 3.1 Cash 5.0 – 5.0 Trade receivables due within one year 43.7 – 43.7 Other current assets 20.3 – 20.3 Total assets 72.1 40.3 112.4 Current liabilities (42.8 ) – (42.8 ) Trade and other payables due after one year (2.4 ) (13.5 ) (15.9 ) Deferred tax liabilities – (9.9 ) (9.9 ) Provisions – (0.4 ) (0.4 ) Total liabilities (45.2 ) (23.8 ) (69.0 ) Net assets 26.9 16.5 43.4 Non-controlling (6.3 ) Fair value of equity stake in associate undertakings before acquisition of controlling interest (3.1 ) Goodwill 141.6 Consideration 175.6 Consideration satisfied by: Cash 127.4 Payments due to vendors 48.2 Acquisitions in 2017 The Group acquired a number of subsidiaries in the year. The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the Group. The fair value adjustments for certain acquisitions have been determined provisionally at the balance sheet date. Book Fair value Fair Intangible assets 0.8 79.0 79.8 Property, plant and equipment 5.5 – 5.5 Cash 28.9 – 28.9 Trade receivables due within one year 74.4 – 74.4 Other current assets 20.1 – 20.1 Total assets 129.7 79.0 208.7 Current liabilities (76.0 ) – (76.0 ) Trade and other payables due after one year (10.2 ) (20.5 ) (30.7 ) Deferred tax liabilities – (16.8 ) (16.8 ) Provisions (0.1 ) (4.8 ) (4.9 ) Total liabilities (86.3 ) (42.1 ) (128.4 ) Net assets 43.4 36.9 80.3 Non-controlling (13.9 ) Fair value of equity stake in associate undertakings before acquisition of controlling interest (5.7 ) Goodwill 314.3 Consideration 375.0 Consideration satisfied by: Cash 213.7 Payments due to vendors 161.3 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |
Summary of related party transactions outstanding | The following amounts were outstanding at 31 December 2019: 2019 Amounts owed by related parties Kantar 87.5 Other 87.5 175.0 Amounts owed to related parties Kantar (36.5 ) Other (49.6 ) (86.1 ) |
Reconciliation of operating p_2
Reconciliation of operating profit to a headline operating profit (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Reconciliation of Operating Profit to a Headline Operating Profit | Reconciliation of operating profit to a headline operating profit: Continuing operations: 2019 2 0 1,2 2017 1 Operating profit 1,295.9 1,245.3 1,577.9 Amortisation and impairment of acquired intangible assets 121.5 201.8 138.0 Goodwill impairment 47.7 176.5 27.1 Gains on disposal of investments and subsidiaries (40.4 ) (237.9 ) (98.7 ) (Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership (0.4 ) (2.0 ) 0.3 Investment write-downs 7.5 2.0 91.7 Litigation settlement (16.8 ) – – Gain on sale of freehold property in New York (7.9 ) – – Restructuring and transformation costs 153.5 265.5 56.8 Headline operating profit 1,560.6 1,651.2 1,793.1 Notes 1 Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. 2 Figures have been restated as described in the accounting policies. |
Accounting policies - Schedule
Accounting policies - Schedule of Reconciliation about operating lease obligations (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of initial application of standards or interpretations [line items] | |||
Operating lease commitments | £ 3,628.2 | ||
Short-term and low value leases not included in lease liabilities | (73.8) | ||
Extension options reasonably certain to be exercised | 115.1 | ||
Signed leases not yet commenced | (598.1) | ||
Gross lease liabilities | £ 3,002.5 | ||
Effect of discounting | (752.8) | ||
Lease liabilities | £ 2,249.7 | ||
Impact on Initial Application of IFRS16 [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Gross lease liabilities | 3,071.4 | ||
Effect of discounting | (745.2) | ||
Lease liabilities | £ 2,326.2 | £ 2,326.2 |
Accounting policies - Restateme
Accounting policies - Restatement - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure of IAS 32 and IAS 39 Restatements [line items] | ||||||
Increase in cash and short term deposits and bank overdrafts, bonds and bank loans | £ 8,336.7 | £ 8,422.6 | £ 9,459.6 | |||
Revaluation and retranslation of financial instruments | [1] | 163.8 | (76.3) | [2] | 391 | [2] |
Stockholders equity period increase decrease | 506.9 | |||||
Increase decrease in fair value of liabilities of put option agreements with vendors current | 0 | 0 | 0 | |||
Increase decrease in other reserves liability | 0 | 0 | 0 | |||
Increase decrease in payments due to vendors (earnout agreements) | 0 | 0 | 0 | |||
Increase decrease in goodwill | 0 | 0 | 0 | |||
Increase decrease in goodwill impairment charges | 0 | 0 | 0 | |||
Exchange adjustments on foreign currency net investments [member] | ||||||
Disclosure of IAS 32 and IAS 39 Restatements [line items] | ||||||
Increase decrease in exchange adjustments on foreign currency net investment due to changes in other reserves | 0 | 0 | 0 | |||
Increase decrease in exchange adjustments on foreign currency net investment due to changes in goodwill | 0 | 0 | 0 | |||
Revaluation and retranslation of financial instruments [member] | ||||||
Disclosure of IAS 32 and IAS 39 Restatements [line items] | ||||||
Increase decrease in fair value of liabilities of put option agreements with vendors current | 0 | 0 | 0 | |||
Increase decrease in payments due to vendors (earnout agreements) | 0 | 0 | 0 | |||
Reclassification of exchange adjustments on foreign currency net investments [member] | ||||||
Disclosure of IAS 32 and IAS 39 Restatements [line items] | ||||||
Revaluation and retranslation of financial instruments | £ 245.7 | £ 205.1 | £ 194.6 | |||
[1] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. | |||||
[2] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. |
Accounting policies - IFRS 16 I
Accounting policies - IFRS 16 Implementation - Additional Information (Detail) - GBP (£) £ / shares in Units, £ in Millions | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [2] | ||
Disclosure of initial application of standards or interpretations [line items] | |||||||
Right-of-use assets | [1] | £ 1,734.5 | |||||
Lease liabilities | 2,249.7 | ||||||
Change in operating profit | £ 61 | ||||||
Weighted average discount rate | 5.40% | ||||||
Retained earnings | £ 128.9 | ||||||
Deferred tax assets | 27.8 | ||||||
Diluted earnings per share | [1] | £ 0.679 | £ 0.654 | [2] | £ 1.539 | ||
Impact on Initial Application of IFRS16 [member] | |||||||
Disclosure of initial application of standards or interpretations [line items] | |||||||
Right-of-use assets | 1,895.1 | £ 1,895.1 | |||||
Lease liabilities | 2,326.2 | £ 2,326.2 | |||||
Reduction in other creditors | 233.5 | ||||||
Reduction in property provisions | £ 68.7 | ||||||
Diluted earnings per share | £ (0.018) | ||||||
[1] | Figures have been restated, as described in the accounting policies. | ||||||
[2] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. |
Accounting Policies - Trade rec
Accounting Policies - Trade receivables and work in progress - Additional Information (Detail) | Dec. 31, 2019 |
181 days - 1 year [member] | |
Disclosure of initial application of standards or interpretations [line items] | |
Percentage of trade receivables for which loss allowance required | 50.00% |
Over 1 year [member] | |
Disclosure of initial application of standards or interpretations [line items] | |
Percentage of trade receivables for which loss allowance required | 100.00% |
Accounting policies - Summary o
Accounting policies - Summary of Estimated Useful Life of Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Bottom of range [member] | Brand names [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 10 years |
Bottom of range [member] | Customer-related intangibles [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 3 years |
Bottom of range [member] | Other proprietary tools [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 3 years |
Bottom of range [member] | Other [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 3 years |
Top of range [member] | Brand names [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 20 years |
Top of range [member] | Customer-related intangibles [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 10 years |
Top of range [member] | Other proprietary tools [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 10 years |
Top of range [member] | Other [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 5 years |
Accounting policies - Summary_2
Accounting policies - Summary of Estimated Useful Life of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Freehold buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 50 years |
Leasehold land and buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | over the term of the lease or life of the asset, if shorter. |
Bottom of range [member] | Fixtures, fittings and equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 3 years |
Bottom of range [member] | Computer equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 3 years |
Top of range [member] | Fixtures, fittings and equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 10 years |
Top of range [member] | Computer equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 5 years |
Accounting policies - Hyperinfl
Accounting policies - Hyperinflation in Argentina - Additional Information (Detail) - Argentina [Member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Hyperinflationary Reporting [line items] | ||
Increase in goodwill due to hyperinflation | £ 41 | £ 105.8 |
Increase in other intangibles due to hyperinflation | £ 7.1 | £ 19.5 |
Segment information - Contribut
Segment information - Contributions by Reportable Segments (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure of operating segments [line items] | ||||||
Revenue | [1] | £ 13,234.1 | £ 13,046.7 | [2],[3] | £ 13,146.4 | [2],[3] |
Headline PBIT (as above) | [4] | 1,560.6 | 1,651.2 | [3] | 1,793.1 | [3] |
Share-based payments | 66 | 78.3 | [3] | 98.3 | [3] | |
Capital additions | [5] | 329.8 | 314 | [3] | 271 | |
Depreciation and amortisation | [6] | 508.3 | 209.3 | [3] | 209.1 | |
Goodwill impairment | [7] | 47.7 | 176.5 | [3] | 27.1 | [3] |
Share of results of associates | [2] | 14.7 | 30.5 | [3] | 98 | [3] |
Interests in associates and joint ventures | [2] | 813 | 796.8 | 1,065.2 | ||
Global integrated agencies [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Revenue | [1],[8] | 10,205.2 | 9,930.7 | [9] | 10,028.6 | [9] |
Revenue less pass-through costs | [8],[10] | 8,108.1 | 8,070.8 | [9] | 8,315.5 | [9] |
Headline PBIT (as above) | [4],[8] | £ 1,219.5 | £ 1,228.2 | [9] | £ 1,321.3 | [9] |
Headline PBIT margin | [8],[11] | 15.00% | 15.20% | [9] | 15.90% | [9] |
Share-based payments | £ 54.3 | £ 59.5 | [3] | £ 77.8 | [3] | |
Capital additions | [5] | 265.6 | 255.6 | [3] | 214.3 | [3] |
Depreciation and amortisation | [6] | 392.8 | 159.1 | [3] | 157.1 | [3] |
Goodwill impairment | [12] | 4.8 | 142.8 | 0 | ||
Share of results of associates | 17 | 25.4 | [3] | 16.2 | [3] | |
Interests in associates and joint ventures | 164.2 | 175.1 | [3] | 179.9 | [3] | |
Public relations [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Revenue | [1],[13] | 956.5 | 931.7 | [9] | 915 | [9] |
Revenue less pass-through costs | [10],[13] | 898 | 879.9 | [9] | 864.3 | [9] |
Headline PBIT (as above) | [4],[13] | £ 140.6 | £ 139.2 | [9] | £ 123.5 | [9] |
Headline PBIT margin | [11],[13] | 15.70% | 15.80% | [9] | 14.30% | [9] |
Share-based payments | £ 4.6 | £ 7.1 | [3] | £ 7.2 | [3] | |
Capital additions | [5] | 17.5 | 12.5 | [3] | 9.5 | [3] |
Depreciation and amortisation | [6] | 31.5 | 10.8 | [3] | 9.8 | [3] |
Goodwill impairment | [12] | 0 | 0 | 7.5 | ||
Share of results of associates | (0.3) | 1.3 | [3] | 0.9 | [3] | |
Interests in associates and joint ventures | 5.5 | 6.2 | [3] | 5.6 | [3] | |
Specialist agencies [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Revenue | [1],[14] | 2,072.4 | 2,184.3 | [9] | 2,202.8 | [9] |
Revenue less pass-through costs | [10],[14] | 1,840.4 | 1,925 | [9] | 1,964.3 | [9] |
Headline PBIT (as above) | [4],[14] | £ 200.5 | £ 283.8 | [9] | £ 348.3 | [9] |
Headline PBIT margin | [11],[14] | 10.90% | 14.70% | [9] | 17.70% | [9] |
Share-based payments | [15] | £ 7.1 | £ 11.7 | [3] | £ 13.3 | [3] |
Capital additions | [5],[15] | 46.7 | 45.9 | [3] | 47.2 | [3] |
Depreciation and amortisation | [6],[15] | 84 | 39.4 | [3] | 42.2 | [3] |
Goodwill impairment | [12] | 42.9 | 33.7 | 19.6 | ||
Share of results of associates | [15] | (2) | 3.8 | [3] | 80.9 | [3] |
Interests in associates and joint ventures | [15] | £ 643.3 | £ 615.5 | [3] | £ 879.7 | [3] |
[1] | Intersegment sales have not been separately disclosed as they are not material. | |||||
[2] | Figures have been restated, as described in the accounting policies. | |||||
[3] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[4] | A reconciliation from operating profit to headline operating profit is provided in note 32. | |||||
[5] | Capital additions include purchases of property, plant and equipment and other intangible assets (including capitalised computer software). | |||||
[6] | Depreciation of property, plant and equipment, depreciation of right-of-use assets and amortisation of other intangible assets. | |||||
[7] | Figures in 2018 have been restated, as described in the accounting policies. | |||||
[8] | Global Integrated Agencies includes all of Grey, GroupM, Hogarth, Ogilvy, VMLY&R and Wunderman Thompson. | |||||
[9] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. As a result Data Investment Management is now excluded from the segment analysis. | |||||
[10] | Revenue less pass-through costs is revenue less media, data collection and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are changed directly to clients, predominantly media and data collection costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. | |||||
[11] | Headline operating profit margin is calculated as headline operating profit (defined above) as a percentage of revenue less pass-through costs. | |||||
[12] | Goodwill impairment figures in 2018 have been restated, as described in the accounting policies. | |||||
[13] | Public Relations represents the Group’s specialists in this area and remains as previously reported but excludes Ogilvy PR which now sits within Global Integrated Agencies as part of Ogilvy. | |||||
[14] | Specialist Agencies represent the Group’s other agencies that specialise in certain areas, whether by region or range of services. | |||||
[15] | Specialist Agencies includes the Kantar associate and amounts previously reported under the Data Investment Management segment. |
Segment information - Contrib_2
Segment information - Contributions by Geographical Area (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [3] | |||
Disclosure of geographical areas [line items] | ||||||
Revenue | [1] | £ 13,234.1 | £ 13,046.7 | [2],[3] | £ 13,146.4 | [2] |
Headline PBIT | [4] | 1,560.6 | 1,651.2 | [3] | 1,793.1 | |
Non-current assets | [5] | 15,638.8 | 17,692.7 | |||
North America [member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenue | [1],[6] | 4,854.7 | 4,851.7 | [3] | 5,083.5 | |
Revenue less pass-through costs | [6],[7] | 4,034.3 | 4,059.7 | [3] | 4,335.2 | |
Headline PBIT | [4],[6] | £ 662 | £ 710.6 | [3] | £ 816.3 | |
Headline PBIT margin | [8] | 16.40% | 17.50% | [3] | 18.80% | |
Non-current assets | [5],[9] | £ 6,812.6 | £ 7,247 | |||
United Kingdom [member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenue | [1] | 1,797.1 | 1,785.6 | [3] | £ 1,737.4 | |
Revenue less pass-through costs | [7] | 1,390.1 | 1,393.8 | [3] | 1,390 | |
Headline PBIT | [4] | £ 188.5 | £ 179.6 | [3] | £ 218.1 | |
Headline PBIT margin | [8] | 13.60% | 12.90% | [3] | 15.70% | |
Non-current assets | [5] | £ 1,743.3 | £ 2,067.9 | |||
Western Continental Europe [member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenue | [1] | 2,628.8 | 2,589.6 | [3] | £ 2,455.7 | |
Revenue less pass-through costs | [7] | 2,176.4 | 2,182.9 | [3] | 2,063.7 | |
Headline PBIT | [4] | £ 261.5 | £ 289.4 | [3] | £ 249.8 | |
Headline PBIT margin | [8] | 12.00% | 13.30% | [3] | 12.10% | |
Non-current assets | [5] | £ 3,417.2 | £ 4,371.9 | |||
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenue | [1] | 3,953.5 | 3,819.8 | [3] | £ 3,869.8 | |
Revenue less pass-through costs | [7] | 3,245.7 | 3,239.3 | [3] | 3,355 | |
Headline PBIT | [4] | £ 448.6 | £ 471.6 | [3] | £ 508.9 | |
Headline PBIT margin | [8] | 13.80% | 14.60% | [3] | 15.20% | |
Non-current assets | [5] | £ 3,665.7 | £ 4,005.9 | |||
[1] | Intersegment sales have not been separately disclosed as they are not material. | |||||
[2] | Figures have been restated, as described in the accounting policies. | |||||
[3] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[4] | A reconciliation from operating profit to headline operating profit is provided in note 32. | |||||
[5] | Non-current assets excluding financial instruments and deferred tax. | |||||
[6] | North America includes the US with revenue of £4,576.5 million (2018: £4,576.1 million, 2017: £4,782.0 million), revenue less pass-through costs of £3,806.3 million (2018: £3,836.0 million, 2017: £4,089.9 million) and headline operating profit of £620.6 million (2018: £674.4 million, 2017: £773.5 million). | |||||
[7] | Revenue less pass-through costs is revenue less media, data collection and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are changed directly to clients, predominantly media and data collection costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. | |||||
[8] | Headline operating profit margin is calculated as headline operating profit (defined above) as a percentage of revenue less pass-through costs. | |||||
[9] | North America includes the United States with non-current assets of £6,373.9 million (2018: £6,791.9 million). |
Segment information - Contrib_3
Segment information - Contributions by Geographical Area (Parenthetical) (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure of geographical areas [line items] | ||||||
Revenue | [1] | £ 13,234.1 | £ 13,046.7 | [2],[3] | £ 13,146.4 | [2],[3] |
Headline PBIT | [4] | 1,560.6 | 1,651.2 | [3] | 1,793.1 | [3] |
Non-current assets | [5] | 15,638.8 | 17,692.7 | |||
United States [member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenue | 4,576.5 | 4,576.1 | 4,782 | |||
Revenue less pass-through costs | 3,806.3 | 3,836 | 4,089.9 | |||
Headline PBIT | 620.6 | 674.4 | £ 773.5 | |||
Non-current assets | £ 6,354.7 | £ 6,770.6 | ||||
[1] | Intersegment sales have not been separately disclosed as they are not material. | |||||
[2] | Figures have been restated, as described in the accounting policies. | |||||
[3] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[4] | A reconciliation from operating profit to headline operating profit is provided in note 32. | |||||
[5] | Non-current assets excluding financial instruments and deferred tax. |
Costs of services and general_3
Costs of services and general and administrative costs - Summary of Operating Costs (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Analysis of income and expense [abstract] | ||||||
Costs of services | [1] | £ 10,825.1 | £ 10,559.1 | [2] | £ 10,481.6 | [2] |
General and administrative costs | [1] | 1,113.1 | 1,242.3 | [2] | 1,086.9 | [2] |
Costs of services and general and administrative costs | 11,938.2 | 11,801.4 | 11,568.5 | |||
Costs of services and general and administrative costs include: | ||||||
Staff costs (note 5) | 7,090.6 | 6,950.6 | [2] | 7,065.1 | [2] | |
Establishment costs | 672.9 | 756.6 | 769.5 | |||
Media pass-through costs | 1,656.2 | 1,458 | 1,429.4 | |||
Other costs of services and general and administrative costs | [3] | 2,518.5 | 2,636.2 | 2,304.5 | ||
Goodwill impairment (note 14) | [4] | 47.7 | 176.5 | [2] | 27.1 | [2] |
Investment write-downs | 7.5 | 2 | 91.7 | |||
Restructuring and transformation costs | 153.5 | 265.5 | 56.8 | |||
Litigation settlement | (16.8) | |||||
Gain on sale of freehold property in New York | [1] | (7.9) | ||||
Amortisation and impairment of acquired intangible assets | 121.5 | 201.8 | 138 | |||
Amortisation of other intangible assets | 21.2 | 20.7 | 20.1 | |||
Depreciation of property, plant and equipment | 185.5 | 188.6 | 189 | |||
Depreciation of right-of-use assets | 301.6 | |||||
Losses on sale of property, plant and equipment | 3.2 | 0.6 | 1.2 | |||
Gains on disposal of investments and subsidiaries | (40.4) | (237.9) | (98.7) | |||
(Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership | (0.4) | (2) | 0.3 | |||
Net foreign exchange losses/(gains) | 6.1 | £ (13) | £ 8 | |||
Short-term lease expense | 83.8 | |||||
Low-value lease expense | £ 2.9 | |||||
[1] | Figures have been restated, as described in the accounting policies. | |||||
[2] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[3] | Other costs of services and general and administrative costs include £731.4 million (2018: £713.0 million, 2017: £573.1 million) of other pass-through costs. | |||||
[4] | Figures in 2018 have been restated, as described in the accounting policies. |
Costs of services and general_4
Costs of services and general and administrative costs - Summary of Operating Costs (Parenthetical) (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |||
Other pass-through costs | £ 731.4 | £ 713 | £ 573.1 |
Costs of services and general_5
Costs of services and general and administrative costs - Additional Information (Detail) - GBP (£) £ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure Of Information About Operating Cost [line items] | ||||||||
Credits relating to the release of excess provisions and other balances | £ 26.9 | £ 25.6 | £ 40.9 | |||||
Goodwill impairment | [1] | 47.7 | 176.5 | [2] | 27.1 | [2] | ||
Investment write-downs | 7.5 | 2 | 91.7 | |||||
Restructuring and transformation costs | 153.5 | 265.5 | 56.8 | |||||
Gains on disposal of investments and subsidiaries | 40.4 | 237.9 | 98.7 | |||||
Litigation settlement | £ 16.8 | |||||||
Lease Term | 15 years | |||||||
Gain on sale of freehold property in New York | [3] | £ 7.9 | ||||||
Proceeds from sale of freehold property | 159 | |||||||
Impairment charge on intangible assets | 26.5 | 89.1 | 6 | |||||
Investor day in december two thousand and eighteen restructuring and transformation plan [member] | ||||||||
Disclosure Of Information About Operating Cost [line items] | ||||||||
Restructuring and transformation costs | £ 212.3 | |||||||
Restructuring and transformation costs in relation to the continuing restructuring plan | 121.1 | |||||||
Transformation costs | 32.4 | |||||||
Costs arising from a structural assessment of operations [member] | ||||||||
Disclosure Of Information About Operating Cost [line items] | ||||||||
Restructuring and transformation costs | £ 53.2 | 116.3 | 179.7 | 33.7 | ||||
Transformation cost [member] | ||||||||
Disclosure Of Information About Operating Cost [line items] | ||||||||
Restructuring and transformation costs | 37.2 | 85.8 | ||||||
IT services and infrastructure cost [member] | ||||||||
Disclosure Of Information About Operating Cost [line items] | ||||||||
Restructuring and transformation costs | 12.8 | |||||||
comScore Inc. [member] | ||||||||
Disclosure Of Information About Operating Cost [line items] | ||||||||
Investment write-downs | 53.1 | |||||||
Litigation settlement | 16.8 | |||||||
Globant S.A. [member] | ||||||||
Disclosure Of Information About Operating Cost [line items] | ||||||||
Gains on disposal of investments and subsidiaries | 28.6 | 185.3 | ||||||
Asatsu-DK Inc. [member] | ||||||||
Disclosure Of Information About Operating Cost [line items] | ||||||||
Gains on disposal of investments and subsidiaries | 92.3 | |||||||
VMLY&R [member] | ||||||||
Disclosure Of Information About Operating Cost [line items] | ||||||||
Goodwill impairment | 142.8 | |||||||
Other business [member] | ||||||||
Disclosure Of Information About Operating Cost [line items] | ||||||||
Goodwill impairment | £ 47.7 | £ 176.5 | £ 27.1 | |||||
[1] | Figures in 2018 have been restated, as described in the accounting policies. | |||||||
[2] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||||
[3] | Figures have been restated, as described in the accounting policies. |
Costs of services and general_6
Costs of services and general and administrative costs - Auditor's Remuneration (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure Of Information About Operating Cost [line items] | |||||
Other services | £ 5 | £ 4.2 | £ 4 | ||
Fees payable to the auditors pursuant to legislation | 34.5 | 30.8 | 26.1 | ||
Total non-audit fees | 8.2 | 4.8 | 4.8 | ||
Total fees | 42.7 | 35.6 | 30.9 | ||
Advisory services [member] | |||||
Disclosure Of Information About Operating Cost [line items] | |||||
Auditors' remuneration for tax services | 0 | 0.1 | |||
Compliance services [member] | |||||
Disclosure Of Information About Operating Cost [line items] | |||||
Auditors' remuneration for tax services | 0 | 0.1 | 0.1 | ||
Other services [member] | |||||
Disclosure Of Information About Operating Cost [line items] | |||||
Other services | [1] | 8.2 | 4.7 | 4.6 | |
WPP plc [member] | |||||
Disclosure Of Information About Operating Cost [line items] | |||||
Auditors' remuneration for audit services | 1.5 | 1.4 | 1.4 | ||
Subsidiaries [member] | |||||
Disclosure Of Information About Operating Cost [line items] | |||||
Auditors' remuneration for audit services | £ 28 | £ 25.2 | [1] | £ 20.7 | |
[1] | Includes a true-up of £3.5 million. |
Costs of services and general_7
Costs of services and general and administrative costs - Auditor's Remuneration (Detail) (Parenthetical) £ in Millions | 12 Months Ended |
Dec. 31, 2019GBP (£) | |
Other Services [member] | |
Disclosure Of Information About Operating Cost [line items] | |
Auditors remuneration includes true up | £ 3.5 |
Share of results of associate_2
Share of results of associates - Summary of Share of Results of Associates (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | [2] | Dec. 31, 2017 | [2] | |||
Disclosure of associates [line items] | |||||||
Share of profit loss of associates accounted for using equity method | [1] | £ 14.7 | £ 30.5 | £ 98 | |||
Continuing Operation one [Member] | |||||||
Disclosure of associates [line items] | |||||||
Share of profit before interest and taxation | 99.2 | [3] | 110.8 | 129.7 | |||
Share of exceptional (losses)/gains | (47.8) | [3] | (41.5) | 0.6 | |||
Share of interest and non-controlling interests | (19.4) | [3] | (15.1) | (12.6) | |||
Share of taxation | (17.3) | [3] | (23.7) | (19.7) | |||
Share of profit loss of associates accounted for using equity method | £ 14.7 | [3] | £ 30.5 | £ 98 | |||
[1] | Figures have been restated, as described in the accounting policies. | ||||||
[2] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | ||||||
[3] | From 5 December 2019 approximately 90% of the Kantar business is treated as a 40% associate following the completion of the transaction outlined in note 12. |
Share of results of associate_3
Share of results of associates - Summary of Share of Results of Associates (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of associates [line items] | |
Percentage of Ownership After Sale | 40.00% |
Kantar [member] | |
Disclosure of associates [line items] | |
Percentage of Kantar business treated as an associate after sale | 90.00% |
Our people - Additional Informa
Our people - Additional Information (Detail) £ in Millions | 12 Months Ended | ||
Dec. 31, 2019GBP (£)Employees | Dec. 31, 2018GBP (£)Employees | Dec. 31, 2017GBP (£)Employees | |
Disclosure of our people [line items] | |||
Average number of staff | Employees | 132,823 | 133,903 | 134,428 |
Staff numbers at the end of period | Employees | 106,786 | 134,281 | 134,413 |
Share-based incentive plans in respect of key management personnel | £ 2 | £ 2 | £ 12.3 |
Total compensation received by key management personnel | £ 4.7 | 6.2 | 17.8 |
Compensation received by key management personnel in the form of pension contributions | £ 0.4 | £ 0.7 | |
Leadership Equity Acquisition Plan III [member] | |||
Disclosure of our people [line items] | |||
LEAP awards vesting performance period | 5 years | 5 years | 5 years |
Our people - Geographical Distr
Our people - Geographical Distribution of staff (Detail) - Employees | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of geographical areas [line items] | |||
Average number of staff | 132,823 | 133,903 | 134,428 |
North America [member] | |||
Disclosure of geographical areas [line items] | |||
Average number of staff | 25,008 | 25,990 | 27,399 |
United Kingdom [member] | |||
Disclosure of geographical areas [line items] | |||
Average number of staff | 14,192 | 14,331 | 14,197 |
Western Continental Europe [member] | |||
Disclosure of geographical areas [line items] | |||
Average number of staff | 26,973 | 26,825 | 25,700 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | |||
Disclosure of geographical areas [line items] | |||
Average number of staff | 66,650 | 66,757 | 67,132 |
Our people - Reportable Segment
Our people - Reportable Segment Distribution of Staff (Detail) - Employees | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | |||
Average number of staff | 132,823 | 133,903 | 134,428 |
Global Integrated Agencies [member] | |||
Disclosure of operating segments [line items] | |||
Average number of staff | 82,295 | 83,015 | 81,537 |
Data investment management [member] | |||
Disclosure of operating segments [line items] | |||
Average number of staff | 26,325 | 27,813 | 28,014 |
Public relations [member] | |||
Disclosure of operating segments [line items] | |||
Average number of staff | 6,890 | 6,891 | 6,899 |
Specialist agencies [member] | |||
Disclosure of operating segments [line items] | |||
Average number of staff | 17,313 | 16,184 | 17,978 |
Our people - Staffing Costs (De
Our people - Staffing Costs (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | [1] | ||
Disclosure of staff costs [Line Items] | ||||||
Wages and salaries | £ 4,946.2 | £ 4,828 | £ 4,937.5 | |||
Cash-based incentive plans | 227.6 | 233 | 196.5 | |||
Share-based incentive plans | 66 | 78.3 | 98.3 | |||
Social security costs | 591.7 | 579 | 580.8 | |||
Pension costs | 169.7 | 160.9 | 161.3 | |||
Severance | 42.6 | 30 | 36.8 | |||
Other staff costs | [2] | 1,046.8 | 1,041.4 | 1,053.9 | ||
Staffing costs | £ 7,090.6 | £ 6,950.6 | £ 7,065.1 | |||
[1] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[2] | Freelance and temporary staff costs are included in other staff costs. |
Finance and investment income,
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 (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Statement [Line Items] | ||||||
Income from equity investments | [1] | £ 18.3 | £ 15.4 | £ 16.8 | ||
Net interest expense on pension plans | 3.5 | 3.6 | [2] | 5.4 | [2] | |
Interest expense related to lease liabilities | [1] | 105.1 | ||||
Finance costs | [1] | 359.1 | 279.1 | [2] | 261.9 | [2] |
Revaluation and retranslation of financial instruments | [3] | 163.8 | (76.3) | [2] | 391 | [2] |
Continuing Operations [member] | ||||||
Statement [Line Items] | ||||||
Income from equity investments | 18.3 | 15.2 | [2] | 16.7 | [2] | |
Interest income | 80.7 | 83.7 | [2] | 72.3 | [2] | |
Finance income | 99 | 98.9 | [2] | 89 | [2] | |
Net interest expense on pension plans | 3.5 | 3.6 | [2] | 5.4 | [2] | |
Interest on other long-term employee benefits | 3.9 | 3.5 | [2] | 3.3 | [2] | |
Interest expense and similar charges | [4] | 252 | 272 | [2] | 253.2 | [2] |
Interest expense related to lease liabilities | [4] | 99.7 | ||||
Finance costs | 359.1 | 279.1 | [2] | 261.9 | [2] | |
Movements in fair value of treasury instruments | [3] | 0.4 | (11) | [2] | 0.4 | [2] |
Premium on the early repayment of bonds | [3] | (63.4) | ||||
Revaluation of investments held at fair value through profit or loss | [3] | 9.1 | 67.8 | [2] | ||
Revaluation of put options over non-controlling interests | [3] | (24.3) | 25.9 | [2] | 39.5 | [2] |
Revaluation of payments due to vendors (earnout agreements) | [3] | (3.7) | 46.1 | [2] | 156.5 | [2] |
Revaluation and retranslation of financial instruments | [3] | £ 245.7 | £ (205.1) | [2] | £ 194.6 | [2] |
[1] | Figures have been restated, as described in the accounting policies. | |||||
[2] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[3] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. | |||||
[4] | Interest expense and similar charges are payable on bank overdrafts, bonds and bank loans held at amortised cost. |
Finance and investment income_3
Finance and investment income, finance costs and revaluation and retranslation of financial instruments - Additional Information (Detail) € in Millions, £ in Millions, $ in Millions, $ in Millions | Dec. 31, 2019GBP (£) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019AUD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2018AUD ($) |
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | £ | £ 4,272.9 | £ 6,217.9 | |||||
US revolving credit facilities [member] | Weighted average [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ 72 | $ 125 | |||||
Average interest rate | 1.11% | 1.11% | 1.11% | 1.11% | 0.96% | 0.96% | 0.96% |
US commercial paper [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ 0 | ||||||
US commercial paper [member] | Weighted average [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ 41 | $ 540 | |||||
Average interest rate | 2.46% | 2.46% | 2.46% | 2.46% | 2.28% | 2.28% | 2.28% |
Australian New Zealand revolving credit facilities [member] | Weighted average [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ 310 | $ 439 | |||||
Average interest rate | 2.95% | 2.95% | 2.95% | 2.95% | 3.27% | 3.27% | 3.27% |
Euro Commercial Paper Programme [Member] | Weighted average [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | £ | £ 255 | ||||||
Average interest rate | 1.16% | 1.16% | 1.16% | 1.16% | 0.00% | 0.00% | 0.00% |
US Dollar bonds [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ 1,563 | ||||||
Average interest rate | 4.06% | 4.06% | 4.06% | 4.06% | |||
Eurobonds [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | € | € 3,100 | ||||||
Average interest rate | 1.82% | 1.82% | 1.82% | 1.82% | |||
Sterling bonds [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | £ | £ 400 | ||||||
Average interest rate | 2.88% | 2.88% | 2.88% | 2.88% |
Taxation - Additional Informati
Taxation - Additional Information (Detail) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure Of Income Taxes [line items] | ||||||
Effective tax rate on profit before taxation | [1] | 22.60% | 25.10% | [2] | 4.40% | [2] |
[1] | Profit before taxation has been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. | |||||
[2] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. As a result Data Investment Management is now excluded from the segment analysis. |
Taxation - Tax Charge (Detail)
Taxation - Tax Charge (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | [1] | ||
Corporation tax | ||||||
Current year | £ 423 | £ 404.2 | £ 383 | |||
Prior years | (63.4) | (108.1) | (97.2) | |||
Corporation tax | 359.6 | 296.1 | 285.8 | |||
Deferred tax | ||||||
Current year | (78.3) | (41.5) | (207.4) | |||
Prior years | (6.3) | 1.4 | 4.6 | |||
Deferred tax | (84.6) | (40.1) | (202.8) | |||
Tax charge | [2] | £ 275 | £ 256 | [3] | £ 83 | [3] |
[1] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[2] | Figures have been restated, as described in the accounting policies. | |||||
[3] | Profit before taxation has been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. |
Taxation - Tax Charge Reconcile
Taxation - Tax Charge Reconciled to Profit Before Taxation (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | ||||||
Profit before taxation | [1] | £ 1,214.3 | £ 1,019.3 | [2] | £ 1,894 | [2] |
Tax at the corporation tax rate of 19.0% | [1] | 230.7 | 193.7 | [3],[4] | 364.6 | [3],[4] |
Tax effect of share of results of associates | [1] | (2.7) | (5.8) | [2] | (18.8) | [2] |
Irrecoverable withholding taxes | [1] | 44.7 | 48.9 | [2] | 31.6 | [2] |
Items that are not deductible/(taxable) in determining taxable profit | [1] | 51.9 | 67.2 | [2] | (39) | [2] |
Effect of different tax rates in subsidiaries operating in other jurisdictions | [1] | 77.1 | 71.2 | [2] | 95.2 | [2] |
US Transition Tax related to unremitted foreign earnings | [1],[2] | (4.6) | 20.1 | |||
Effect of change in US tax rate on deferred tax balances | [1],[2] | (211.6) | ||||
Origination and reversal on unrecognised temporary differences | [1] | (3.4) | 5.1 | [2] | (18.9) | [2] |
Tax losses not recognised or utilised in the year | [1] | 13.2 | 19.9 | [2] | 32.5 | [2] |
Utilisation of tax losses not previously recognised | [1] | (42.7) | (25.5) | [2] | (10.4) | [2] |
Recognition of temporary differences not previously recognised | [1] | (24.1) | (7.4) | [2] | (69.7) | [2] |
Release of prior year provisions in relation to acquired businesses | [1] | (19.9) | (20.4) | [2] | (15) | [2] |
Other prior year adjustments | [1] | (49.8) | (86.3) | [2] | (77.6) | [2] |
Tax charge | [5] | £ 275 | £ 256 | [1],[4] | £ 83 | [1],[4] |
Effective tax rate on profit before tax | [1] | 22.60% | 25.10% | [2] | 4.40% | [2] |
[1] | Profit before taxation has been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. | |||||
[2] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. As a result Data Investment Management is now excluded from the segment analysis. | |||||
[3] | As the Group is subject to the tax rates of more than one country, it has chosen to present its reconciliation of the tax charge using the UK corporation tax rate of 19.0% (2018: 19.0%, 2017: 19.25%). | |||||
[4] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[5] | Figures have been restated, as described in the accounting policies. |
Taxation - Tax Charge Reconci_2
Taxation - Tax Charge Reconciled to Profit Before Taxation (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
UK corporation tax rate | 19.00% | 19.00% | 19.25% |
Ordinary dividends - Summary of
Ordinary dividends - Summary of Ordinary Dividends (Detail) - GBP (£) £ / shares in Units, £ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Dividends [line items] | |||
Amounts recognised as distributions to equity holders, per share | £ 0.6000 | £ 0.6000 | £ 0.5975 |
Amounts recognised as distributions to equity holders | £ 750.5 | £ 747.4 | £ 751.5 |
Proposed final dividend, per share | £ 0.3730 | ||
Previous period final amount [member] | |||
Disclosure of Dividends [line items] | |||
Amounts recognised as distributions to equity holders, per share | £ 0.3730 | £ 0.3730 | £ 0.3705 |
Amounts recognised as distributions to equity holders | £ 466.4 | £ 464.6 | £ 467.2 |
Interim period amount [member] | |||
Disclosure of Dividends [line items] | |||
Amounts recognised as distributions to equity holders, per share | £ 0.2270 | £ 0.2270 | £ 0.2270 |
Amounts recognised as distributions to equity holders | £ 284.1 | £ 282.8 | £ 284.3 |
Earnings per share - Calculatio
Earnings per share - Calculation of Basic and Diluted EPS (Detail) - GBP (£) £ / shares in Units, £ in Millions, shares in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Earnings per share [abstract] | ||||||
Weighted average shares used in basic EPS calculation | 1,250 | 1,247.8 | 1,261.1 | |||
EPS | [1] | £ 0.685 | £ 0.661 | [2] | £ 1.557 | [2] |
Weighted average shares used in diluted EPS calculation | 1,260.6 | 1,261.2 | 1,275.8 | |||
Diluted EPS | [1] | £ 0.679 | £ 0.654 | [2] | £ 1.539 | [2] |
Continuing Operation [member] | ||||||
Earnings per share [abstract] | ||||||
Earnings | [3],[4] | £ 860.1 | £ 698.2 | £ 1,726.6 | ||
Weighted average shares used in basic EPS calculation | [3] | 1,250 | 1,247.8 | 1,261.1 | ||
EPS | [3] | £ 0.688 | £ 0.560 | £ 1.369 | ||
Diluted earnings | [3] | £ 860.1 | £ 698.2 | £ 1,726.6 | ||
Weighted average shares used in diluted EPS calculation | [3] | 1,260.6 | 1,261.2 | 1,275.8 | ||
Diluted EPS | [3] | £ 0.682 | £ 0.554 | £ 1.353 | ||
Discontinued operations [member] | ||||||
Earnings per share [abstract] | ||||||
Earnings | [4] | £ (3.8) | £ 126.4 | £ 237.1 | ||
Weighted average shares used in basic EPS calculation | 1,250 | 1,247.8 | 1,261.1 | |||
EPS | [3] | £ (0.003) | £ 0.101 | £ 0.188 | ||
Diluted earnings | £ (3.8) | £ 126.4 | £ 237.1 | |||
Weighted average shares used in diluted EPS calculation | 1,260.6 | 1,261.2 | 1,275.8 | |||
Diluted EPS | [3] | £ (0.003) | £ 0.1 | £ 0.186 | ||
Continued and discontinued operations [member] | ||||||
Earnings per share [abstract] | ||||||
Earnings | [3],[4] | £ 856.3 | £ 824.6 | £ 1,963.7 | ||
Weighted average shares used in basic EPS calculation | [3] | 1,250 | 1,247.8 | 1,261.1 | ||
EPS | [3] | £ 0.685 | £ 0.661 | £ 1.557 | ||
Diluted earnings | [3] | £ 856.3 | £ 824.6 | £ 1,963.7 | ||
Weighted average shares used in diluted EPS calculation | [3] | 1,260.6 | 1,261.2 | 1,275.8 | ||
Diluted EPS | [3] | £ 0.679 | £ 0.654 | £ 1.539 | ||
[1] | Figures have been restated, as described in the accounting policies. | |||||
[2] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[3] | Earnings figures have been restated as described in the accounting policies. | |||||
[4] | Earnings is equivalent to profit for the year attributable to equity holders of the parent. |
Earnings per share - Additional
Earnings per share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [line items] | |||
Shares excluded from the computation of diluted earnings per share | 19,300,000 | 16,900,000 | 8,200,000 |
Treasury shares [member] | |||
Earnings per share [line items] | |||
Ordinary shares in issue | 70,787,730 | 70,854,553 | 62,578,938 |
Ordinary shares [member] | |||
Earnings per share [line items] | |||
Ordinary shares in issue | 1,328,167,813 | 1,332,678,227 | 1,332,511,552 |
Earnings per share - Reconcilia
Earnings per share - Reconciliation Between Shares Used in Calculating Basic and Diluted EPS (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [abstract] | |||
Average shares used in basic EPS calculation | 1,250 | 1,247.8 | 1,261.1 |
Dilutive share options outstanding | 0.3 | 1.6 | 1.8 |
Other potentially issuable shares | 10.3 | 11.8 | 12.9 |
Shares used in diluted EPS calculation | 1,260.6 | 1,261.2 | 1,275.8 |
Sources of finance - Summary of
Sources of finance - Summary of Equity and Debt Financing (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Analysis of changes in financing | ||||
Beginning balance | [1] | £ 9,784.3 | £ 9,960.5 | £ 9,812.2 |
Ordinary shares issued | [1] | 0.6 | 1.2 | 6.4 |
Share cancellations | [1] | (47.7) | ||
End of year, restated | [1] | 8,415.8 | 9,784.3 | 9,960.5 |
Analysis of changes in financing | ||||
Beginning of year | 6,217.9 | |||
Net decrease in drawings on bank loans and corporate bonds | (1,713.2) | (440.6) | 599.6 | |
End of year | 4,272.9 | 6,217.9 | ||
Issued capital and share premium [member] | ||||
Analysis of changes in financing | ||||
Beginning balance | 703 | 701.8 | ||
Ordinary shares issued | 0.6 | 1.2 | ||
Share cancellations | (0.5) | |||
End of year, restated | 703.1 | 703 | 701.8 | |
Debt financing [member] | ||||
Analysis of changes in financing | ||||
Beginning of year | 6,217.9 | 6,481.3 | ||
Net decrease in drawings on bank loans and corporate bonds | (1,713.2) | (440.6) | ||
Amortisation of financing costs included in debt | 10.3 | 7.7 | ||
Changes in fair value due to hedging arrangements | 14.3 | (9.9) | ||
Other movements | 1.5 | (0.2) | ||
Exchange adjustments | (257.9) | 179.6 | ||
End of year | £ 4,272.9 | £ 6,217.9 | £ 6,481.3 | |
[1] | Figures have been restated, as described in the accounting policies. |
Sources of finance - Additional
Sources of finance - Additional Information (Detail) € in Millions, £ in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2019GBP (£) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019AUD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | ||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total equity | £ | [1] | £ 8,415.8 | £ 9,784.3 | £ 9,960.5 | £ 9,812.2 | ||||
Total committed facilities available | £ | 6,309.8 | ||||||||
Undrawn committed credit facility | £ | 2,005.6 | 2,074.7 | |||||||
Borrowings | £ | 4,272.9 | 6,217.9 | |||||||
Issued capital and share premium [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total equity | £ | 703.1 | £ 703 | £ 701.8 | ||||||
US$ bonds due September 2022 [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | £ 377 | $ 500 | |||||||
Bonds interest rate | 3.625% | 3.625% | 3.625% | 3.625% | |||||
US$ bonds due September 2024 [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | £ 565.5 | $ 750 | |||||||
Bonds interest rate | 3.75% | 3.75% | 3.75% | 3.75% | |||||
US$ bonds due September 2042 [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | £ 70 | $ 93 | |||||||
Bonds interest rate | 5.125% | 5.125% | 5.125% | 5.125% | |||||
US$ bonds due November 2043 [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | £ 165.8 | $ 220 | |||||||
Bonds interest rate | 5.625% | 5.625% | 5.625% | 5.625% | |||||
Eurobonds (3m EURIBOR + 0.32%) due May 2020 [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | £ 211.6 | € 250 | |||||||
Floating basis | 3m EURIBOR | ||||||||
Adjustment to floating basis | 0.32% | 0.32% | 0.32% | 0.32% | |||||
Euro bonds due November 2023 [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | £ 634.9 | € 750 | |||||||
Bonds interest rate | 3.00% | 3.00% | 3.00% | 3.00% | |||||
Euro bonds due September 2026 [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | £ 634.9 | € 750 | |||||||
Bonds interest rate | 2.25% | 2.25% | 2.25% | 2.25% | |||||
Euro bonds due March 2030 [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | £ 507.9 | € 600 | |||||||
Bonds interest rate | 1.625% | 1.625% | 1.625% | 1.625% | |||||
Eurobonds Due March 2025 [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | £ 423.3 | € 500 | |||||||
Bonds interest rate | 1.375% | 1.375% | 1.375% | 1.375% | |||||
Eurobonds Due March 2022 [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | £ 211.6 | € 250 | |||||||
Floating basis | 3m EURIBOR | ||||||||
Adjustment to floating basis | 0.45% | 0.45% | 0.45% | 0.45% | |||||
Sterling bonds due September 2046 [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | £ | £ 400 | ||||||||
Bonds interest rate | 2.875% | 2.875% | 2.875% | 2.875% | |||||
US revolving credit facilities [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | $ 2,500 | ||||||||
US revolving credit facilities [member] | Weighted average [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Bonds interest rate | 1.11% | 1.11% | 1.11% | 1.11% | 0.96% | 0.96% | |||
Borrowings | $ 72 | $ 125 | |||||||
US revolving credit facilities [member] | Weighted average [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Borrowings averaged equivalent | $ 72 | ||||||||
Australian revolving credit facilities due 2019 (prior to extension) [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | $ 150 | ||||||||
Australian revolving credit facilities due 2020 (after extension) [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | 150 | ||||||||
Australian revolving credit facilities due 2021 (after reduction in December 2019) [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | 270 | ||||||||
Australian revolving credit facilities due 2021 (before reduction in December 2019) [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | 370 | ||||||||
Australian New Zealand revolving credit facilities [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | 270 | ||||||||
Borrowings averaged equivalent | $ 310 | ||||||||
US revolving credit facilities march 2024 (prior to extension) [member] | Borrowings and financing [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Total committed facilities available | 2,500 | ||||||||
US commercial paper [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Borrowings | $ 0 | ||||||||
US commercial paper [member] | Weighted average [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Bonds interest rate | 2.46% | 2.46% | 2.46% | 2.46% | 2.28% | 2.28% | |||
Borrowings | $ 41 | $ 540 | |||||||
Euro commercial paper [Member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Borrowings | € | € 0 | ||||||||
Euro commercial paper [Member] | Weighted average [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Borrowings | £ | £ 255 | £ 0 | |||||||
[1] | Figures have been restated, as described in the accounting policies. |
Sources of finance - Analysis o
Sources of finance - Analysis of Future Anticipated Cash Flows Related to Debt (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | £ (13,915.7) | £ (16,875.9) | |
Effect of discounting/financing rates | 1,070.4 | 1,793.4 | |
Debt financing | (12,845.3) | (15,082.5) | |
Borrowings [member] | Within one year [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | (324.8) | (748.4) | |
Borrowings [member] | Between one and two years [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | (204) | (596.8) | |
Borrowings [member] | Between two and three years [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | (692.1) | (937.1) | |
Borrowings [member] | Between three and four years [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | (726.3) | (742.5) | |
Borrowings [member] | Between four and five years [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | (634.2) | (786.8) | |
Borrowings [member] | Over five years [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | (2,761.9) | (4,199.7) | |
Borrowings [member] | Debt financing (including interest) under the Revolving Credit Facility and in relation to unsecured loan notes [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | (5,343.3) | (8,011.3) | |
Bank overdrafts [member] | Within one year [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||
Future anticipated cash flows | [1] | £ (8,572.4) | £ (8,864.6) |
[1] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies of the consolidated financial statements. |
Sources of finance - Analysis_2
Sources of finance - Analysis of Fixed and Floating Rate Debt by Currency (Detail) € in Millions, £ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019GBP (£) | Dec. 31, 2018GBP (£) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | ||
Disclosure of detailed information about financial instruments [line items] | |||||
Borrowings | £ 4,272.9 | £ 6,217.9 | |||
US Dollar bonds [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Borrowings | $ | $ 1,563 | ||||
US Dollar bonds [member] | Fixed interest rate [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Borrowings | £ 1,178.2 | £ 1,154.8 | |||
Fixed rate | [1] | 4.06% | 4.58% | 4.06% | 4.06% |
Period (months) | [1] | 95 months | 181 months | ||
US Dollar bonds [member] | Floating interest rate [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Borrowings | £ 1,029.6 | ||||
Floating basis | LIBOR | ||||
Sterling bonds [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Borrowings | £ 400 | ||||
Sterling bonds [member] | Fixed interest rate [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Borrowings | £ 844.1 | £ 1,044.1 | |||
Fixed rate | [1] | 2.73% | 3.43% | 2.73% | 2.73% |
Period (months) | [1] | 188 months | 232 months | ||
Eurobonds [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Borrowings | € | € 3,100 | ||||
Eurobonds [member] | Fixed interest rate [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Borrowings | £ 1,777.7 | £ 2,425.9 | |||
Fixed rate | [1] | 2.34% | 1.99% | 2.34% | 2.34% |
Period (months) | [1] | 82 months | 75 months | ||
Eurobonds [member] | Floating interest rate [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Borrowings | £ 423.3 | £ 449.2 | |||
Floating basis | EURIBOR | EURIBOR | |||
Period (months) | [1] | 16 months | |||
Other bonds [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Borrowings | £ 49.6 | £ 114.3 | |||
[1] | Weighted average. These rates do not include the effect of gains on interest rate swap terminations that are written to income over the life of the original instrument. |
Sources of finance - Analysis_3
Sources of finance - Analysis of Future Anticipated Cash Flows Related of Financial Derivatives (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and Other Payable [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | £ 615.9 | £ 1,376.2 |
Future anticipated cash flows, Financial assets | 44 | 632.5 |
Trade and Other Payable [member] | Within one year [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 113.6 | 229.3 |
Future anticipated cash flows, Financial assets | 44 | 124.6 |
Trade and Other Payable [member] | Between one and two years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 17.5 | 50 |
Future anticipated cash flows, Financial assets | 11.8 | |
Trade and Other Payable [member] | Between two and three years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 11.8 | 688.4 |
Future anticipated cash flows, Financial assets | 11.5 | |
Trade and Other Payable [member] | Between three and four years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 11.6 | 408.5 |
Future anticipated cash flows, Financial assets | 11.6 | |
Trade and Other Payable [member] | Between four and five years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 11.6 | |
Future anticipated cash flows, Financial assets | 11.6 | |
Trade and Other Payable [member] | Over five years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 449.8 | |
Future anticipated cash flows, Financial assets | 461.4 | |
Trade and other receivable [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 593.4 | 1,359.1 |
Future anticipated cash flows, Financial assets | 45 | 644.8 |
Trade and other receivable [member] | Within one year [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 107.8 | 221.9 |
Future anticipated cash flows, Financial assets | 45 | 120.6 |
Trade and other receivable [member] | Between one and two years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 10.9 | 45.3 |
Future anticipated cash flows, Financial assets | 6.5 | |
Trade and other receivable [member] | Between two and three years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 6.2 | 685.3 |
Future anticipated cash flows, Financial assets | 6.4 | |
Trade and other receivable [member] | Between three and four years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 6.1 | 406.6 |
Future anticipated cash flows, Financial assets | 6.5 | |
Trade and other receivable [member] | Between four and five years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 6.1 | |
Future anticipated cash flows, Financial assets | 6.6 | |
Trade and other receivable [member] | Over five years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | £ 456.3 | |
Future anticipated cash flows, Financial assets | £ 498.2 |
Analysis of cash flows - Summar
Analysis of cash flows - Summary of Analysis of Cash Flows (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure Of Cash Flow Statement [line items] | ||||||
Profit for the year | [1] | £ 950.1 | £ 901.1 | [2] | £ 2,059.4 | [2] |
Taxation | [1] | 353.8 | 323.9 | 197 | ||
Revaluation and retranslation of financial instruments | [1] | (154.4) | 72.8 | (409.3) | ||
Finance costs | [1] | 376.4 | 289.3 | 269.8 | ||
Finance and investment income | [1] | (102.6) | (104.8) | (95.2) | ||
Share of results of associates | [1] | (21.2) | (43.5) | (113.5) | ||
Goodwill impairment on classification as held for sale | [1] | 94.5 | ||||
Gain on sale of discontinued operations | [1] | (73.8) | ||||
Attributable tax expense on sale of discontinued operations | [1] | 157.4 | ||||
Non-cash share-based incentive plans (including share options) | [1] | 71.4 | 84.8 | 105 | ||
Depreciation of property, plant and equipment | [1] | 203.2 | 225.1 | 230.7 | ||
Depreciation of right-of-use assets | [1] | 317.9 | ||||
Impairment of goodwill | [1] | 47.7 | 176.5 | 27.1 | ||
Amortisation and impairment of acquired intangible assets | [1] | 135.6 | 280 | 195.1 | ||
Amortisation of other intangible assets | [1] | 29.6 | 38.7 | 36.3 | ||
Investment write-downs | [1] | 7.5 | 2 | 95.9 | ||
Gains on disposal of investments and subsidiaries | [1] | (45.1) | (235.5) | (129) | ||
(Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership | [1] | (0.4) | (2) | 0.3 | ||
Gain on sale of freehold property in New York | [1] | (7.9) | ||||
Losses on sale of property, plant and equipment | [1] | 3.2 | 0.6 | 1.1 | ||
Decrease/(increase) in trade receivables and accrued income | [1] | 159 | (298.9) | (90.4) | ||
Increase/(decrease) in trade payables and deferred income | [1] | 394.7 | 500.9 | (170.8) | ||
Increase in other receivables | [1] | (263.8) | (52.9) | (110.6) | ||
Decrease in other payables – short-term | [1] | (16.4) | (31.8) | (122.8) | ||
Increase in other payables – long-term | [1] | 53.7 | 0.4 | 20.1 | ||
Increase/(decrease) in provisions | [1] | 23.1 | 48 | (57.3) | ||
Corporation and overseas tax paid | [1] | (536) | (383.6) | (424.7) | ||
Payment on early settlement of bonds | [1] | (63.4) | ||||
Interest and similar charges paid | [1] | (270.6) | (252.8) | (246.6) | ||
Interest paid on lease liabilities | [1] | (105.1) | ||||
Interest received | [1] | 80.8 | 90.4 | 76.9 | ||
Investment income | [1] | 18.3 | 15.4 | 16.8 | ||
Dividends from associates | [1] | 33.3 | 49.7 | 46.8 | ||
Net cash inflow from operating activities | [1] | 1,850.5 | 1,693.8 | 1,408.1 | ||
Acquisitions and disposals: | ||||||
Initial cash consideration | (3.9) | (126.7) | (214.8) | |||
Cash and cash equivalents acquired | 0 | 11.3 | 28.9 | |||
Earnout payments | (130.2) | (120.2) | (199.1) | |||
Purchase of other investments (including associates) | (27.2) | (48.1) | (92.5) | |||
Acquisitions | (161.3) | (283.7) | (477.5) | |||
Proceeds on disposal of investments and subsidiaries | [3] | 2,468.5 | 849 | 296 | ||
Cash and cash equivalents disposed | (327.5) | (15.1) | ||||
Disposals of investments and subsidiaries | 2,141 | 833.9 | 296 | |||
Cash consideration for non-controlling interests | (62.7) | (109.9) | (47.3) | |||
Net acquisition payments and disposal proceeds | 1,917 | 440.3 | (228.8) | |||
Share repurchases and buy-backs: | ||||||
Purchase of own shares by ESOP Trusts | (102.8) | (214.6) | ||||
Shares purchased into treasury | (43.8) | (104.3) | [1] | (289.6) | [1] | |
Net cash outflow | (43.8) | (207.1) | (504.2) | |||
Net increase/(decrease) in borrowings: | ||||||
(Decrease)/increase in drawings on bank loans | (70.6) | (819.3) | 785.6 | |||
Net cash (outflow)/inflow | (1,713.2) | (440.6) | 599.6 | |||
Cash and cash equivalents: | ||||||
Cash at bank and in hand | [4],[5] | 10,442.1 | 10,433.4 | 11,509.2 | ||
Short-term bank deposits | [4],[5] | 863.6 | 632.4 | 341.8 | ||
Overdrafts | [4],[5] | (8,572.4) | (8,864.6) | (9,852.8) | ||
Cash and cash equivalents at end of year | [4],[5] | 2,733.3 | 2,201.2 | 1,998.2 | ||
Repayment of EURO 600 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Repayment of bonds | (512.7) | |||||
Repayment of USD 812 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Repayment of bonds | (618.8) | |||||
Partial repayment of USD 272 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Repayment of bonds | (135.4) | (20.8) | ||||
Partial repayment of USD 450 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Repayment of bonds | (176.2) | (37.3) | ||||
Repayment of GBP 200 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Repayment of bonds | £ (199.5) | |||||
Proceeds from issue of EURO 250 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Proceeds from issues of bonds | 218.8 | 214 | ||||
Proceeds from issue of EURO 500 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Proceeds from issues of bonds | 438 | |||||
Repayment of EURO 252 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Repayment of bonds | £ (220) | |||||
Repayment of GBP 400 million bonds [member] | ||||||
Net increase/(decrease) in borrowings: | ||||||
Repayment of bonds | £ (400) | |||||
[1] | Figures have been restated, as described in the accounting policies. | |||||
[2] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[3] | Proceeds on disposal of investments and subsidiaries includes return of capital from investments in associates. | |||||
[4] | Bank overdrafts are included in cash and cash equivalents because they form an integral part of the Group’s cash management. | |||||
[5] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies of the consolidated financial statements. |
Analysis of cash flows - Summ_2
Analysis of cash flows - Summary of Analysis of Cash Flows (Parenthetical) (Detail) - Dec. 31, 2019 | GBP (£) | USD ($) | EUR (€) |
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | £ | £ 6,309,800,000 | ||
Repayment of EURO 600 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | € 600,000,000 | ||
Repayment of USD 812 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | $ | $ 812,000,000 | ||
Partial repayment of USD 272 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | $ | 272,000,000 | ||
Partial repayment of USD 450 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | $ | $ 450,000,000 | ||
Repayment of GBP 200 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | £ | 200,000,000 | ||
Proceeds from issue of EURO 250 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | 250,000,000 | ||
Proceeds from issue of EURO 500 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | 500,000,000 | ||
Repayment of EURO 252 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | € 252,000,000 | ||
Repayment of GBP 400 million bonds [member] | |||
Disclosure Of Cash Flow Statement [line items] | |||
Bond amount | £ | £ 400,000,000 |
Assets held for sale and disc_3
Assets held for sale and discontinued operations - Additional information (Detail) - GBP (£) £ in Millions | Feb. 27, 2020 | Dec. 05, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement [LineItems] | ||||||
Goodwill impairment on classification as held for sale | [1] | £ (94.5) | ||||
Disposal of discontinued operations consideration expected to be received for remaining stages | £ 200 | |||||
Net cash inflow from operating activities | [2] | 1,850.5 | £ 1,693.8 | £ 1,408.1 | ||
Net cash inflow/(outflow) from investing activities | 1,759.6 | 184.5 | (499.7) | |||
Net cash (outflow)/inflow from financing activities | (2,922) | (1,613.8) | (785.6) | |||
Kantar [member] | ||||||
Statement [LineItems] | ||||||
Net cash inflow from operating activities | 322.9 | 292.5 | 378.4 | |||
Net cash inflow/(outflow) from investing activities | (53.2) | (59.5) | (67.8) | |||
Net cash (outflow)/inflow from financing activities | (27.2) | £ (7.9) | £ (9.1) | |||
Kantar second stage [member] | ||||||
Statement [LineItems] | ||||||
Proportion of the Kantar group included in the second stage of the transaction completed | 4.00% | |||||
Disposal of major subsidiary [member] | Kantar second stage [member] | ||||||
Statement [LineItems] | ||||||
Disposal group discontinued operation cash consideration received | £ 136.7 | |||||
Kantar Business [Member] | ||||||
Statement [LineItems] | ||||||
Percentage of interest in associates | 40.00% | |||||
Proportion of the Kantar group included in the first stage of the transaction completed | 90.00% | |||||
Goodwill impairment on classification as held for sale | (94.5) | |||||
Attributable tax expense | 157.4 | |||||
Gain on disposal of discontinued operations Before Tax | £ 73.8 | |||||
Disposal of discontinued operations consideration | £ 2,140.2 | |||||
[1] | Goodwill impairment of £94.5 million arose from the assessment of fair value less costs to sell under IFRS 5. | |||||
[2] | Figures have been restated, as described in the accounting policies. |
Assets held for sale and disc_4
Assets held for sale and discontinued operations - Detailed Information About Amounts Of Discontinued Operations Included In Profit (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Statement [LineItems] | ||||||
Revenue | [1] | £ 13,234.1 | £ 13,046.7 | [2],[3] | £ 13,146.4 | [2],[3] |
Costs of services | [2] | (10,825.1) | (10,559.1) | [3] | (10,481.6) | [3] |
Gross profit | [2] | 2,409 | 2,487.6 | [3] | 2,664.8 | [3] |
General and administrative costs | [2] | (1,113.1) | (1,242.3) | [3] | (1,086.9) | [3] |
Operating profit | [2] | 1,295.9 | 1,245.3 | [3] | 1,577.9 | [3] |
Share of results of associates | [2] | 14.7 | 30.5 | [3] | 98 | [3] |
Profit before interest and taxation | [2] | 1,310.6 | 1,275.8 | [3] | 1,675.9 | [3] |
Finance income | [2] | 99 | 98.9 | [3] | 89 | [3] |
Finance costs | [2] | (359.1) | (279.1) | [3] | (261.9) | [3] |
Profit before taxation | [4] | 1,214.3 | 1,019.3 | [5] | 1,894 | [5] |
Attributable tax expense | [2] | (275) | (256) | [3],[4] | (83) | [3],[4] |
Profit after taxation | [2] | 950.1 | 901.1 | [3] | 2,059.4 | [3] |
Goodwill impairment on classification as held for sale | [6] | (94.5) | ||||
Attributable to: | ||||||
Equity holders of the parent | [2] | 856.3 | 824.6 | [3] | 1,963.7 | [3] |
Non-controlling interests | [2] | 93.8 | 76.5 | [3] | 95.7 | [3] |
Profit for the year from discontinued operations | [2] | 10.8 | 137.8 | [3] | 248.4 | [3] |
Discontinued operations [member] | ||||||
Statement [LineItems] | ||||||
Revenue | 2,387.5 | 2,555.7 | 2,657.8 | |||
Costs of services | (1,951.5) | (2,104.4) | (2,147.4) | |||
Gross profit | 436 | 451.3 | 510.4 | |||
General and administrative costs | (151.7) | (257.8) | (180.1) | |||
Operating profit | 284.3 | 193.5 | 330.3 | |||
Share of results of associates | 6.5 | 13 | 15.5 | |||
Profit before interest and taxation | 290.8 | 206.5 | 345.8 | |||
Finance income | 3.6 | 5.4 | 6.2 | |||
Finance costs | (17.3) | (9.7) | (7.9) | |||
Revaluation and retranslation of financial instruments | (9.4) | 3.5 | 18.3 | |||
Profit before taxation | 267.7 | 205.7 | 362.4 | |||
Attributable tax expense | (78.8) | (67.9) | (114) | |||
Profit after taxation | 188.9 | 137.8 | 248.4 | |||
Gain on sale of discontinued operations | 73.8 | |||||
Attributable tax expense on sale of discontinued operations | (157.4) | |||||
Net gain attributable to discounted operations | 10.8 | 137.8 | 248.4 | |||
Attributable to: | ||||||
Equity holders of the parent | (3.8) | 126.4 | 237.1 | |||
Non-controlling interests | 14.6 | 11.4 | 11.3 | |||
Profit for the year from discontinued operations | £ 10.8 | £ 137.8 | £ 248.4 | |||
[1] | Intersegment sales have not been separately disclosed as they are not material. | |||||
[2] | Figures have been restated, as described in the accounting policies. | |||||
[3] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[4] | Profit before taxation has been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. | |||||
[5] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. As a result Data Investment Management is now excluded from the segment analysis. | |||||
[6] | Goodwill impairment of £94.5 million arose from the assessment of fair value less costs to sell under IFRS 5. |
Assets held for sale and disc_5
Assets held for sale and discontinued operations - Detailed Information About Amounts Of Discontinued Operations Included In Profit (Parenthetical) (Detail) £ in Millions | 12 Months Ended | |
Dec. 31, 2019GBP (£) | ||
Schedule Of Detailed Information About Amounts Of Discontinued Operations Included In Profit [Abstract] | ||
Impairment on Classification As Held for Sale for Kantar Group | £ (94.5) | [1] |
[1] | Goodwill impairment of £94.5 million arose from the assessment of fair value less costs to sell under IFRS 5. |
Assets held for sale and disc_6
Assets held for sale and discontinued operations - Detailed Information About Gain On Sale Of Discontinued Operations (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement [Line Items] | |||||
Property, plant and equipment | [1] | £ 876 | £ 1,083 | £ 979.5 | |
Right-of-use assets | [1] | 1,734.5 | |||
Interests in associates and joint ventures | [1] | 813 | 796.8 | 1,065.2 | |
Other investments | [1] | 498.3 | 666.7 | 1,153.5 | |
Deferred tax assets | [1] | 187.9 | 153 | 160.3 | |
Corporate income tax recoverable | [1] | 165.4 | 198.7 | 234.7 | |
Cash and cash equivalents | 2,733.3 | 2,201.2 | 1,998.2 | £ 1,902.6 | |
Corporate income tax payable | [1] | (499.9) | (545.9) | (649.3) | |
Lease liabilities | (2,249.7) | ||||
Deferred tax liabilities | [1] | (379.8) | (479.5) | (513.7) | |
Provisions for post-employment benefits | [1] | (159) | (184.3) | (206.3) | |
Provisions for liabilities and charges | [1] | (247.8) | (311.7) | (229) | |
Net assets | [1] | 8,415.8 | 9,784.3 | 9,960.5 | |
Non-controlling interests | [1] | (371.4) | £ (424.4) | £ (468.8) | |
Exchange adjustments recycled to the income statement | [1] | 284 | |||
Discontinued operations [member] | |||||
Statement [Line Items] | |||||
Intangible assets (including goodwill) | 2,410 | ||||
Property, plant and equipment | 115.7 | ||||
Right-of-use assets | 103.5 | ||||
Interests in associates and joint ventures | 92.3 | ||||
Other investments | 11.5 | ||||
Deferred tax assets | 44.1 | ||||
Corporate income tax recoverable | 49.8 | ||||
Trade and other receivables | 748.8 | ||||
Cash and cash equivalents | 324.9 | ||||
Trade and other payables | (839.8) | ||||
Corporate income tax payable | (48.2) | ||||
Lease liabilities | (106.3) | ||||
Deferred tax liabilities | (98.6) | ||||
Provisions for post-employment benefits | (26.7) | ||||
Provisions for liabilities and charges | (22.4) | ||||
Net assets | 2,758.6 | ||||
Non-controlling interests | (19.1) | ||||
Net assets liabilities excluding non controlling interest | 2,739.5 | ||||
Consideration received in cash and cash equivalents | 2,352.1 | ||||
Re-investment in equity stake | [2] | 231.7 | |||
Transaction costs | (56.1) | ||||
Deferred consideration | [3] | 1.6 | |||
Total consideration received | 2,529.3 | ||||
Loss on sale before exchange adjustments | (210.2) | ||||
Exchange adjustments recycled to the income statement | 284 | ||||
Gain on sale of discontinued operation | £ 73.8 | ||||
[1] | Figures have been restated, as described in the accounting policies. | ||||
[2] | Re-investment in equity stake represents the value of the Group’s 40% stake in the new Kantar group as part of the disposal. | ||||
[3] | Deferred consideration is made up of £79.6 million expected to be received in future periods on the satisfaction of certain conditions and the deferral of £78.0 million consideration against services the Group will supply to Kantar on favourable terms in the future. The conditions expected to be met in the future include the settlement of ongoing legal cases, realisation of the value of certain investments and the utilisation of certain tax losses and allowances. There was uncertainty at the date of disposal in regard to the ultimate resolution of these items and estimates of amounts due to be received were required to be made; there were no individually material estimates. Future services provided by the Group to Kantar arose through the negotiation of Transition Service Arrangements, as is customary for a disposal of this magnitude. The Group will support Kantar for a period of up to 4 years, primarily in the area of IT, on terms which are favourable to the disposal group. As such, an element of consideration has been deferred and will be recognised as the services are provided. |
Assets held for sale and disc_7
Assets held for sale and discontinued operations - Detailed Information About Gain On Sale Of Discontinued Operations (Parenthetical) (Detail) - Discontinued operations [member] £ in Millions | 12 Months Ended |
Dec. 31, 2019GBP (£) | |
Statement [Line Items] | |
Percentage of interest in associates | 40.00% |
Deferred consideration upon satisfaction of certain conditions | £ 79.6 |
Deferred consideration upon satisfaction of certain conditions | £ 78 |
Support period for disposal group | 4 years |
Assets held for sale and disc_8
Assets held for sale and discontinued operations - Detailed Information About Major Classes Of Assets And Liabilities Held For Sale (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Non-current assets | ||||||
Goodwill | [1] | £ 10,110.6 | £ 13,132.6 | £ 12,874.6 | ||
Other | [1] | 1,468.8 | 1,842 | 2,018.4 | ||
Property, plant and equipment | [1] | 876 | 1,083 | 979.5 | ||
Right-of-use assets | [1] | 1,734.5 | ||||
Interests in associates and joint ventures | [1] | 813 | 796.8 | 1,065.2 | ||
Other investments | [1] | 498.3 | 666.7 | 1,153.5 | ||
Deferred tax assets | [1] | 187.9 | 153 | 160.3 | ||
Trade and other receivables | [1] | 137.6 | 180 | 176.2 | ||
Non-current assets | [1] | 15,826.7 | 17,854.1 | 18,427.7 | ||
Current assets | ||||||
Corporate income tax recoverable | [1] | 165.4 | 198.7 | 234.7 | ||
Trade and other receivables | [1] | 11,822.3 | 13,101.5 | 12,530.7 | ||
Cash and short-term deposits | [1] | 11,305.7 | 11,065.8 | 11,851 | ||
Current assets | [1] | 23,778.7 | 24,366 | 24,616.4 | ||
Current liabilities | ||||||
Trade and other payables | [1] | (14,188.1) | (15,021.9) | (14,239.5) | ||
Corporate income tax payable | [1] | (499.9) | (545.9) | (649.3) | ||
Bank overdrafts | [1] | (8,798) | [2] | (9,447.7) | [2] | (10,083.7) |
Short-term lease liabilities | [1] | (302.2) | ||||
Current liabilities | [1] | (23,958.6) | (25,015.5) | (24,972.5) | ||
Non-current liabilities | ||||||
Trade and other payables | [1] | (449.6) | [3] | (810) | [3] | (911.7) |
Deferred tax liabilities | [1] | (379.8) | (479.5) | (513.7) | ||
Provisions for post-employment benefits | [1] | (159) | (184.3) | (206.3) | ||
Provisions for liabilities and charges | [1] | (247.8) | (311.7) | (229) | ||
Long-term lease liabilities | [1] | (1,947.5) | ||||
Non-current liabilities | [1] | (7,231) | £ (7,420.3) | £ (8,111.1) | ||
Discontinued operations [member] | ||||||
Non-current assets | ||||||
Property, plant and equipment | 115.7 | |||||
Right-of-use assets | 103.5 | |||||
Interests in associates and joint ventures | 92.3 | |||||
Other investments | 11.5 | |||||
Deferred tax assets | 44.1 | |||||
Current assets | ||||||
Corporate income tax recoverable | 49.8 | |||||
Current liabilities | ||||||
Corporate income tax payable | (48.2) | |||||
Non-current liabilities | ||||||
Deferred tax liabilities | (98.6) | |||||
Provisions for post-employment benefits | (26.7) | |||||
Provisions for liabilities and charges | (22.4) | |||||
Discontinued operations [member] | Assets and liabilities classified as held for sale [member] | ||||||
Non-current assets | ||||||
Goodwill | 155.4 | |||||
Other | 5.9 | |||||
Property, plant and equipment | 12.8 | |||||
Right-of-use assets | 25.7 | |||||
Interests in associates and joint ventures | 4.6 | |||||
Other investments | 0.6 | |||||
Deferred tax assets | 5.9 | |||||
Trade and other receivables | 2.6 | |||||
Non-current assets | 213.5 | |||||
Current assets | ||||||
Corporate income tax recoverable | 15.9 | |||||
Trade and other receivables | 189.4 | |||||
Cash and short-term deposits | 66.5 | |||||
Current assets | 271.8 | |||||
Total assets classified as held for sale | 485.3 | |||||
Current liabilities | ||||||
Trade and other payables | (130.4) | |||||
Corporate income tax payable | (3.8) | |||||
Bank overdrafts | (0.2) | |||||
Short-term lease liabilities | (3.9) | |||||
Current liabilities | (138.3) | |||||
Non-current liabilities | ||||||
Trade and other payables | (1.3) | |||||
Deferred tax liabilities | (1.2) | |||||
Provisions for post-employment benefits | (8.5) | |||||
Provisions for liabilities and charges | (0.6) | |||||
Long-term lease liabilities | (20.5) | |||||
Non-current liabilities | (32.1) | |||||
Total liabilities associated with assets classified as held for sale | (170.4) | |||||
Net assets of disposal group | £ 314.9 | |||||
[1] | Figures have been restated, as described in the accounting policies. | |||||
[2] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies of the consolidated financial statements. | |||||
[3] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. |
Leases - Summary of Movement in
Leases - Summary of Movement in Right of use Assets and Lease Liabilities (Detail) £ in Millions | 12 Months Ended | |
Dec. 31, 2019GBP (£) | ||
Disclosure Of Leases [Line Items] | ||
Additions | £ 364.6 | |
Transfers To Net Investment In Subleases | (37.6) | [1] |
Disposals | (31.6) | |
Depreciation of right-of-use assets | (317.9) | [2] |
Transfer to disposal group classified as held for sale | (138.1) | |
Ending balance, right-of-use assets | 1,734.5 | [2] |
Additions | 338.2 | |
Interest expense related to lease liabilities | 102.7 | |
Disposals | (27.7) | |
Repayment of lease liabilities (including interest) | (341.1) | |
Transfer to disposal group classified as held for sale | (148.6) | |
Ending balance, lease liabilities | 2,249.7 | |
Impact on Initial Application of IFRS16 [member] | ||
Disclosure Of Leases [Line Items] | ||
Beginning balance, right-of-use assets | 1,895.1 | |
Beginning balance, lease liabilities | 2,326.2 | |
Land and buildings [member] | ||
Disclosure Of Leases [Line Items] | ||
Additions | 348.1 | |
Transfers To Net Investment In Subleases | (37.6) | [1] |
Disposals | (31) | |
Depreciation of right-of-use assets | (301.5) | |
Transfer to disposal group classified as held for sale | (134.4) | |
Ending balance, right-of-use assets | 1,706.1 | |
Additions | 325.9 | |
Interest expense related to lease liabilities | 101.5 | |
Disposals | (27.5) | |
Repayment of lease liabilities (including interest) | (326.2) | |
Transfer to disposal group classified as held for sale | (144.7) | |
Ending balance, lease liabilities | 2,223.4 | |
Land and buildings [member] | Impact on Initial Application of IFRS16 [member] | ||
Disclosure Of Leases [Line Items] | ||
Beginning balance, right-of-use assets | 1,862.5 | |
Beginning balance, lease liabilities | 2,294.4 | |
Plant and machinery [member] | ||
Disclosure Of Leases [Line Items] | ||
Additions | 16.5 | |
Transfers To Net Investment In Subleases | 0 | |
Disposals | (0.6) | |
Depreciation of right-of-use assets | (16.4) | |
Transfer to disposal group classified as held for sale | (3.7) | |
Ending balance, right-of-use assets | 28.4 | |
Additions | 12.3 | |
Interest expense related to lease liabilities | 1.2 | |
Disposals | (0.2) | |
Repayment of lease liabilities (including interest) | (14.9) | |
Transfer to disposal group classified as held for sale | (3.9) | |
Ending balance, lease liabilities | 26.3 | |
Plant and machinery [member] | Impact on Initial Application of IFRS16 [member] | ||
Disclosure Of Leases [Line Items] | ||
Beginning balance, right-of-use assets | 32.6 | |
Beginning balance, lease liabilities | £ 31.8 | |
[1] | The sublease of certain office space is classified as a finance lease and relates primarily to Kantar business units that were sold. The Company de-recognised the right-of-use asset (to the extent that it is subject to the sublease) and recognised the net investment in subleases, which is included within trade and other receivables. No other disclosures are deemed necessary as it is not material. | |
[2] | Figures have been restated, as described in the accounting policies. |
Leases - Summary of breakdown o
Leases - Summary of breakdown of Lease Expense (Detail) £ in Millions | 12 Months Ended |
Dec. 31, 2019GBP (£) | |
Disclosure Of Leases [Line Items] | |
Short-term lease expense | £ (83.8) |
Low-value lease expense | (2.9) |
Continuing operations lease [member] | |
Disclosure Of Leases [Line Items] | |
Short-term lease expense | (83.8) |
Low-value lease expense | (2.9) |
Variable lease expense | (74.2) |
Sublease income | 17.5 |
Charge to operating profit | (445) |
Interest expense on lease liabilities | (99.7) |
Charge to profit before taxation for leases | (544.7) |
Land and buildings [member] | Continuing operations lease [member] | |
Disclosure Of Leases [Line Items] | |
Depreciation of right-of-use assets | (286.5) |
Plant and machinery [member] | Continuing operations lease [member] | |
Disclosure Of Leases [Line Items] | |
Depreciation of right-of-use assets | £ (15.1) |
Leases - Summary of Maturity of
Leases - Summary of Maturity of Lease Liabilities (Detail) £ in Millions | Dec. 31, 2019GBP (£) | |
Disclosure Of Leases [Line Items] | ||
Lease liability | £ 3,002.5 | |
Effect of discounting | (752.8) | |
Lease liability at 31 Dec 2019 | 2,249.7 | |
Short-term lease liabilities at 31 December 2019 | 302.2 | [1] |
Long-term lease liabilities at 31 December 2019 | 1,947.5 | [1] |
Maturities in calendar year 2020 [member] | ||
Disclosure Of Leases [Line Items] | ||
Lease liability | 385.9 | |
Maturities in calendar year 2021 [member] | ||
Disclosure Of Leases [Line Items] | ||
Lease liability | 384 | |
Maturities in calendar year 2022 [member] | ||
Disclosure Of Leases [Line Items] | ||
Lease liability | 335.4 | |
Maturities in calendar year 2023 [member] | ||
Disclosure Of Leases [Line Items] | ||
Lease liability | 283 | |
Maturities in calendar year 2024 [member] | ||
Disclosure Of Leases [Line Items] | ||
Lease liability | 220.5 | |
Maturity in later than calendar year 2025 [member] | ||
Disclosure Of Leases [Line Items] | ||
Lease liability | £ 1,393.7 | |
[1] | Figures have been restated, as described in the accounting policies. |
Leases - Additional Information
Leases - Additional Information (Detail) £ in Millions | Dec. 31, 2019GBP (£) |
Text block [abstract] | |
Future cash flows for leases not yet commenced to which lessee is committed | £ 558 |
Intangible assets - Movement of
Intangible assets - Movement of Goodwill (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure of reconciliation of changes in goodwill [line items] | ||||||
Beginning balance | [1] | £ 13,132.6 | £ 12,874.6 | |||
Impairment on classification as held for sale | [2] | 94.5 | ||||
Impairment losses for the year | [3] | 47.7 | 176.5 | [4] | £ 27.1 | [4] |
Ending balance | [1] | 10,110.6 | 13,132.6 | 12,874.6 | ||
Cost [member] | ||||||
Disclosure of reconciliation of changes in goodwill [line items] | ||||||
Beginning balance | [1] | 14,051.9 | 13,597 | |||
Additions | [1],[5] | 8.5 | 154.4 | |||
Revision of earnout estimates | [1] | (14.1) | (67.6) | |||
Disposals | [1] | (18.6) | ||||
Transfer to disposal group classified as held for sale | [1] | (2,729.1) | ||||
Exchange adjustments | [1] | (410) | 368.1 | |||
Ending balance | [1] | 10,888.6 | 14,051.9 | 13,597 | ||
Accumulated impairment losses and write-downs [member] | ||||||
Disclosure of reconciliation of changes in goodwill [line items] | ||||||
Beginning balance | [1] | 919.3 | 722.4 | |||
Impairment on classification as held for sale | [1],[6] | 70.9 | ||||
Impairment losses for the year | [1] | 47.7 | 176.5 | |||
Transfer to disposal group classified as held for sale | [1] | (230.6) | ||||
Exchange adjustments | [1] | (29.3) | 20.4 | |||
Ending balance | [1] | £ 778 | £ 919.3 | £ 722.4 | ||
[1] | Figures have been restated, as described in the accounting policies. | |||||
[2] | Goodwill impairment of £94.5 million arose from the assessment of fair value less costs to sell under IFRS 5. | |||||
[3] | Figures in 2018 have been restated, as described in the accounting policies. | |||||
[4] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[5] | 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. | |||||
[6] | Goodwill impairment of £70.9 million arose from the assessment of fair value less costs to sell of the Kantar group on classification as held for sale under IFRS 5. |
Intangible assets - Movement _2
Intangible assets - Movement of Goodwill (Parenthetical) (Detail) £ in Millions | 12 Months Ended | |
Dec. 31, 2019GBP (£) | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Impairment on Classification As Held for Sale for Kantar Group | £ 94.5 | [1] |
Accumulated impairment [member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Impairment on Classification As Held for Sale for Kantar Group | £ 70.9 | [2],[3] |
[1] | Goodwill impairment of £94.5 million arose from the assessment of fair value less costs to sell under IFRS 5. | |
[2] | Figures have been restated, as described in the accounting policies. | |
[3] | Goodwill impairment of £70.9 million arose from the assessment of fair value less costs to sell of the Kantar group on classification as held for sale under IFRS 5. |
Intangible assets - Movements o
Intangible assets - Movements of Other Intangible Assets (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of detailed information about intangible assets [line items] | |||||
Beginning balance | [1] | £ 1,842 | £ 2,018.4 | ||
Charge for the year | 26.5 | 89.1 | £ 6 | ||
Ending balance | [1] | 1,468.8 | 1,842 | 2,018.4 | |
Cost [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Beginning balance | 4,180.1 | 4,040.6 | |||
Additions | 43.2 | 60.4 | |||
Disposals | (44.4) | (38.2) | |||
New acquisitions | 3.5 | 40.3 | |||
Other movements | (1.4) | (4.5) | [2] | ||
Exchange adjustments | (79.5) | 81.5 | |||
Transfer to disposal group classified as held for sale | (1,094.9) | ||||
Ending balance | 3,006.6 | 4,180.1 | 4,040.6 | ||
Amortisation and impairment [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Beginning balance | 2,338.1 | 2,022.2 | |||
Charge for the year | 159.6 | 314.5 | |||
Disposals | (39.3) | (28) | |||
Other movements | 2.6 | (1.9) | |||
Exchange adjustments | (24.3) | 31.3 | |||
Transfer to disposal group classified as held for sale | (898.9) | ||||
Ending balance | 1,537.8 | 2,338.1 | 2,022.2 | ||
Brands with an indefinite useful life [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Beginning balance | 1,132.8 | 1,081.3 | |||
Ending balance | 1,078.2 | 1,132.8 | 1,081.3 | ||
Brands with an indefinite useful life [member] | Cost [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Beginning balance | 1,132.8 | 1,081.3 | |||
Exchange adjustments | (41.4) | 51.5 | |||
Ending balance | 1,091.4 | 1,132.8 | 1,081.3 | ||
Brands with an indefinite useful life [member] | Amortisation and impairment [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Charge for the year | 13.2 | ||||
Ending balance | 13.2 | ||||
Acquired intangibles [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Beginning balance | 594.8 | 829.1 | |||
Ending balance | 323.6 | 594.8 | 829.1 | ||
Acquired intangibles [member] | Cost [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Beginning balance | 2,610 | 2,547.8 | |||
Disposals | (3.4) | (0.9) | |||
New acquisitions | 3.5 | 40.3 | |||
Other movements | [2] | 2.9 | |||
Exchange adjustments | (28.2) | 19.9 | |||
Transfer to disposal group classified as held for sale | (979) | ||||
Ending balance | 1,602.9 | 2,610 | 2,547.8 | ||
Acquired intangibles [member] | Amortisation and impairment [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Beginning balance | 2,015.2 | 1,718.7 | |||
Charge for the year | 116.8 | 275.8 | |||
Disposals | (1.6) | (0.7) | |||
Exchange adjustments | (15.2) | 21.4 | |||
Transfer to disposal group classified as held for sale | (835.9) | ||||
Ending balance | 1,279.3 | 2,015.2 | 1,718.7 | ||
Other [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Beginning balance | 114.4 | 108 | |||
Ending balance | 67 | 114.4 | 108 | ||
Other [member] | Cost [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Beginning balance | 437.3 | 411.5 | |||
Additions | 43.2 | 60.4 | |||
Disposals | (41) | (37.3) | |||
Other movements | (1.4) | (7.4) | [2] | ||
Exchange adjustments | (9.9) | 10.1 | |||
Transfer to disposal group classified as held for sale | (115.9) | ||||
Ending balance | 312.3 | 437.3 | 411.5 | ||
Other [member] | Amortisation and impairment [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Beginning balance | 322.9 | 303.5 | |||
Charge for the year | 29.6 | 38.7 | |||
Disposals | (37.7) | (27.3) | |||
Other movements | 2.6 | (1.9) | |||
Exchange adjustments | (9.1) | 9.9 | |||
Transfer to disposal group classified as held for sale | (63) | ||||
Ending balance | £ 245.3 | £ 322.9 | £ 303.5 | ||
[1] | Figures have been restated, as described in the accounting policies. | ||||
[2] | Other movements in acquired intangibles include revisions to fair value adjustments arising on the acquisition of subsidiary undertakings that had been determined provisionally at the immediately preceding balance sheet date, as permitted by IFRS 3 Business Combinations. |
Intangible assets - Cash-genera
Intangible assets - Cash-generating Units with Significant Goodwill (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | [1] | £ 10,110.6 | £ 13,132.6 | £ 12,874.6 |
Brands with an indefinite useful life | 1,078.2 | 1,132.8 | ||
GroupM [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | [1] | 2,921.7 | 2,928.6 | |
Kantar [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | [1] | 2,513 | ||
Wunderman Thompson [Member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | [1] | 2,121.9 | 2,101.8 | |
Brands with an indefinite useful life | 409.7 | 424.8 | ||
VMLYAndR [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | [1] | 901 | 930.4 | |
Brands with an indefinite useful life | 199.1 | 206.6 | ||
Ogilvy [Member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | [1] | 758.6 | 614.4 | |
Brands with an indefinite useful life | 211.1 | 219.1 | ||
Burson Cohn Wolfe [Member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | [1] | 739.3 | 711.9 | |
Brands with an indefinite useful life | 130.2 | 135.4 | ||
Other [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | [1] | 2,668.1 | 3,332.5 | |
Brands with an indefinite useful life | £ 128.1 | £ 146.9 | ||
[1] | Figures have been restated, as described in the accounting policies. |
Intangible assets - Additional
Intangible assets - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Other Intangible Assets | [1] | £ 1,468.8 | £ 1,842 | £ 2,018.4 | ||
Amortisation and impairment of acquired intangible assets | 121.5 | 201.8 | ||||
Impairment charge on intangible assets | 26.5 | 89.1 | 6 | |||
Goodwill impairment charge | [2] | £ 47.7 | £ 176.5 | [3] | £ 27.1 | [3] |
Pre-tax discount rate | 8.50% | |||||
Percentage of recoverable amount on long term growth of asset | 25.00% | |||||
First Step [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Assumed annual long-term growth rate | 3.00% | 3.00% | ||||
Pre-tax discount rate | 8.50% | 9.00% | ||||
Second Step [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Management forecasts for a projection period | five years | |||||
Assumed annual long-term growth rate | 3.00% | 3.00% | ||||
Weighting Of The Regional Rates By Its Geographic Distribution Of Cash Flows [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Pre-tax discount rate | 8.50% | 9.00% | ||||
VMLY&R [member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Goodwill impairment charge | £ 142.8 | |||||
Other business [member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Goodwill impairment charge | £ 33.7 | |||||
Top of range [member] | Range of Pre-tax discount rates for geographic regions [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Pre-tax discount rate | 13.60% | 16.30% | ||||
Top of range [member] | Range of pre-tax discount rates for global cash generating units [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Pre-tax discount rate | 7.40% | 8.70% | ||||
Bottom of range [member] | Range of Pre-tax discount rates for geographic regions [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Pre-tax discount rate | 4.10% | 6.20% | ||||
Bottom of range [member] | Range of pre-tax discount rates for global cash generating units [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Pre-tax discount rate | 6.30% | 8.00% | ||||
Associates [member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Amortisation and impairment of acquired intangible assets | £ 5.6 | £ 3.7 | ||||
Brand names [member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Other Intangible Assets | 218.6 | 361.2 | ||||
Impairment charge on intangible assets | 21.4 | |||||
Customer-related intangibles [member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Other Intangible Assets | 100.6 | 220.6 | ||||
Other acquired intangible assets [member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Other Intangible Assets | 4.4 | £ 13 | ||||
Customer relationships [member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Impairment charge on intangible assets | 5.1 | |||||
Brands With An Indefinite Life [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Impairment charge on intangible assets | 13.2 | |||||
Public relations [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Impairment charge on intangible assets | 13.2 | |||||
Global Integrated Agencies [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Impairment charge on intangible assets | 13 | |||||
Specialist Agencies [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Impairment charge on intangible assets | £ 0.3 | |||||
[1] | Figures have been restated, as described in the accounting policies. | |||||
[2] | Figures in 2018 have been restated, as described in the accounting policies. | |||||
[3] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. |
Property, plant and equipment -
Property, plant and equipment - Summary of Property, Plant and Equipment (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | [1] | £ 1,083 | £ 979.5 | |
Depreciation of property, plant and equipment | 185.5 | 188.6 | £ 189 | |
Ending balance | [1] | 876 | 1,083 | 979.5 |
Cost [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 2,440.7 | 2,317.9 | ||
Additions | 294.9 | 314.8 | ||
New acquisitions | 0.1 | 3.1 | ||
Disposals | (420.9) | (255.7) | ||
Transfer to disposal group classified as held for sale | (464.7) | |||
Exchange adjustments | (104.5) | 60.6 | ||
Ending balance | 1,745.6 | 2,440.7 | 2,317.9 | |
Depreciation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | (1,357.7) | (1,338.4) | ||
Depreciation of property, plant and equipment | 185.5 | 225.1 | ||
Disposals | 271.5 | 240.5 | ||
Transfer to disposal group classified as held for sale | 346 | |||
Exchange adjustments | 56.1 | (34.7) | ||
Ending balance | (869.6) | (1,357.7) | (1,338.4) | |
Land [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 37.1 | 37.1 | ||
Ending balance | 34.3 | 37.1 | 37.1 | |
Land [member] | Cost [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 37.1 | 37.1 | ||
Transfer to disposal group classified as held for sale | (2.8) | |||
Ending balance | 34.3 | 37.1 | 37.1 | |
Freehold buildings [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 108.4 | 90.3 | ||
Ending balance | 22 | 108.4 | 90.3 | |
Freehold buildings [member] | Cost [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 135.5 | 118.8 | ||
Additions | 33.7 | 17.7 | ||
New acquisitions | 0.1 | |||
Disposals | (109) | |||
Transfer to disposal group classified as held for sale | (17.1) | |||
Exchange adjustments | (16.9) | (1.1) | ||
Ending balance | 26.2 | 135.5 | 118.8 | |
Freehold buildings [member] | Depreciation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | (27.1) | (28.5) | ||
Depreciation of property, plant and equipment | 1.5 | 3.1 | ||
Disposals | 7.2 | |||
Transfer to disposal group classified as held for sale | 15.6 | |||
Exchange adjustments | 1.6 | 4.5 | ||
Ending balance | (4.2) | (27.1) | (28.5) | |
Leasehold buildings [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 635.1 | 555.7 | ||
Ending balance | 605.5 | 635.1 | 555.7 | |
Leasehold buildings [member] | Cost [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 1,202.4 | 1,081.8 | ||
Additions | 158.5 | 161.4 | ||
New acquisitions | 0.9 | |||
Disposals | (167.3) | (83.5) | ||
Transfer to disposal group classified as held for sale | (98.1) | |||
Exchange adjustments | (46.7) | 41.8 | ||
Ending balance | 1,048.8 | 1,202.4 | 1,081.8 | |
Leasehold buildings [member] | Depreciation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | (567.3) | (526.1) | ||
Depreciation of property, plant and equipment | 79.9 | 91.5 | ||
Disposals | 129.9 | 74.6 | ||
Transfer to disposal group classified as held for sale | 56.1 | |||
Exchange adjustments | 17.9 | (24.3) | ||
Ending balance | (443.3) | (567.3) | (526.1) | |
Fixtures, fittings and equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 145.6 | 140.3 | ||
Ending balance | 101.2 | 145.6 | 140.3 | |
Fixtures, fittings and equipment [member] | Cost [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 375.3 | 377.2 | ||
Additions | 35 | 49.9 | ||
New acquisitions | 0.1 | 1.2 | ||
Disposals | (68.3) | (62.9) | ||
Transfer to disposal group classified as held for sale | (115.2) | |||
Exchange adjustments | (14.5) | 9.9 | ||
Ending balance | 212.4 | 375.3 | 377.2 | |
Fixtures, fittings and equipment [member] | Depreciation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | (229.7) | (236.9) | ||
Depreciation of property, plant and equipment | 36.3 | 44.4 | ||
Disposals | 59.9 | 58 | ||
Transfer to disposal group classified as held for sale | 81.7 | |||
Exchange adjustments | 13.2 | (6.4) | ||
Ending balance | (111.2) | (229.7) | (236.9) | |
Computer equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 156.8 | 156.1 | ||
Ending balance | 113 | 156.8 | 156.1 | |
Computer equipment [member] | Cost [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 690.4 | 703 | ||
Additions | 67.7 | 85.8 | ||
New acquisitions | 0.9 | |||
Disposals | (76.3) | (109.3) | ||
Transfer to disposal group classified as held for sale | (231.5) | |||
Exchange adjustments | (26.4) | 10 | ||
Ending balance | 423.9 | 690.4 | 703 | |
Computer equipment [member] | Depreciation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | (533.6) | (546.9) | ||
Depreciation of property, plant and equipment | 67.8 | 86.1 | ||
Disposals | 74.5 | 107.9 | ||
Transfer to disposal group classified as held for sale | 192.6 | |||
Exchange adjustments | 23.4 | (8.5) | ||
Ending balance | £ (310.9) | £ (533.6) | £ (546.9) | |
[1] | Figures have been restated, as described in the accounting policies. |
Property, plant and equipment_2
Property, plant and equipment - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property, plant and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capital commitments contracted | £ 165 | £ 28.4 |
Interests in associates, join_3
Interests in associates, joint ventures and other investments - Movements in Associates, Joint Ventures and Other Investments (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Movements in interests in associates and joint ventures | |||
Beginning balance | [1] | £ 796.8 | £ 1,065.2 |
Additions | 236.6 | 16.7 | |
Share of results of associates undertakings | 21.2 | 43.5 | |
Dividends | (33.3) | (49.7) | |
Other movements | 1.2 | 1.2 | |
Reclassification from other investments to associates | 0.3 | ||
Exchange adjustments | (35.5) | 12.9 | |
Disposals | (51.5) | (304) | |
Reclassification to subsidiaries | (0.3) | 16.9 | |
Amortisation of other intangible assets | (5.6) | (4.2) | |
Transfer to disposal group classified as held for sale | (109.1) | ||
Write-downs | (7.5) | (2) | |
Ending balance | [1] | 813 | 796.8 |
Movements in interests in other investments | |||
Beginning balance | [1] | 666.7 | 1,153.5 |
Additions | 18.3 | 35 | |
Reclassification from other investments to associates | (0.3) | ||
Disposals | (42.3) | (341.7) | |
Revaluation of other investments through profit or loss | 9.1 | 68.1 | |
Revaluation of other investments through other comprehensive income | (141.4) | (247.9) | |
Transfer to disposal group classified as held for sale | (12.1) | ||
Ending balance | [1] | £ 498.3 | £ 666.7 |
[1] | Figures have been restated, as described in the accounting policies. |
Interests in associates, join_4
Interests in associates, joint ventures and other investments - Principal Associates and Joint Ventures (Detail) | 12 Months Ended | |
Dec. 31, 2019 | ||
Barrows Design and Manufacturing (Pty) Limited [member] | ||
Disclosure of principal associates and joint ventures [line items] | ||
Associate, Country of incorporation | South Africa | |
Associate, % owned | 35.00% | |
Dat Viet VAC Media Corporation [member] | ||
Disclosure of principal associates and joint ventures [line items] | ||
Associate, Country of incorporation | Vietnam | |
Associate, % owned | 30.00% | |
GIIR Inc [member] | ||
Disclosure of principal associates and joint ventures [line items] | ||
Associate, Country of incorporation | Korea | |
Associate, % owned | 30.00% | |
Haworth Marketing & Media Company [member] | ||
Disclosure of principal associates and joint ventures [line items] | ||
Associate, Country of incorporation | USA | |
Associate, % owned | 49.00% | |
High Co SA [member] | ||
Disclosure of principal associates and joint ventures [line items] | ||
Associate, Country of incorporation | France | |
Associate, % owned | 34.10% | |
Joye Media SL [member] | ||
Disclosure of principal associates and joint ventures [line items] | ||
Associate, Country of incorporation | Spain | [1] |
Associate, % owned | 22.50% | [1] |
Nanjing Yindu Ogilvy Advertising Co. Ltd [member] | ||
Disclosure of principal associates and joint ventures [line items] | ||
Associate, Country of incorporation | China | |
Associate, % owned | 49.00% | |
Smollan Holdings (Pty) Ltd. [member] | ||
Disclosure of principal associates and joint ventures [line items] | ||
Associate, Country of incorporation | South Africa | |
Associate, % owned | 24.80% | |
Summer (BC) JVCo S.a r.l. [member] | ||
Disclosure of principal associates and joint ventures [line items] | ||
Associate, Country of incorporation | Luxembourg | [2] |
Associate, % owned | 40.00% | [2] |
Summer (BC) US JVCo SCSp [member] | ||
Disclosure of principal associates and joint ventures [line items] | ||
Associate, Country of incorporation | Luxembourg | [2] |
Associate, % owned | 40.00% | [2] |
[1] | Representing the Group’s interest in Imagina. | |
[2] | Representing the Group’s interest in Kantar split between the United States and rest of world. |
Interests in associates, join_5
Interests in associates, joint ventures and other investments - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of principal associates and joint ventures [line items] | ||||
Interests in associates and joint ventures | [1] | £ 813 | £ 796.8 | £ 1,065.2 |
GIIR Inc [member] | ||||
Disclosure of principal associates and joint ventures [line items] | ||||
Market value of equity interests | 21.2 | 26.3 | ||
Interests in associates and joint ventures | 37.7 | 46.8 | ||
High Co SA [member] | ||||
Disclosure of principal associates and joint ventures [line items] | ||||
Market value of equity interests | 39.4 | 30.3 | ||
Interests in associates and joint ventures | 35.4 | 37.1 | ||
Associates and Other Investments [member] | ||||
Disclosure of principal associates and joint ventures [line items] | ||||
Capital commitments contracted | £ 21.8 | £ 31.4 | ||
[1] | Figures have been restated, as described in the accounting policies. |
Interests in associates, join_6
Interests in associates, joint ventures and other investments - Summary of Aggregate Financial Performance and Net Asset Position of Associates and Joint Ventures (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Income statement | ||||||
Revenue | [1] | £ 13,234.1 | £ 13,046.7 | [2],[3] | £ 13,146.4 | [2],[3] |
Operating profit | [2] | 1,295.9 | 1,245.3 | [3] | 1,577.9 | [3] |
Profit before taxation | [4] | 1,214.3 | 1,019.3 | [5] | 1,894 | [5] |
Profit for the year | [2] | 950.1 | 901.1 | [3] | 2,059.4 | [3] |
Balance sheet | ||||||
Net assets | [2] | 8,415.8 | 9,784.3 | 9,960.5 | ||
Associates and Joint Ventures [member] | ||||||
Income statement | ||||||
Revenue | 3,619.1 | 3,685.8 | 3,800.8 | |||
Operating profit | 365.6 | 378.4 | 440.4 | |||
Profit before taxation | (385.9) | 194.7 | 381.9 | |||
Profit for the year | (429.6) | 118.1 | 312.5 | |||
Balance sheet | ||||||
Assets | 8,855.1 | 2,940.9 | 3,192.9 | |||
Liabilities | (6,765.7) | (1,570.6) | (1,633.7) | |||
Net assets | £ 2,089.4 | £ 1,370.3 | £ 1,559.2 | |||
[1] | Intersegment sales have not been separately disclosed as they are not material. | |||||
[2] | Figures have been restated, as described in the accounting policies. | |||||
[3] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[4] | Profit before taxation has been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. | |||||
[5] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. As a result Data Investment Management is now excluded from the segment analysis. |
Deferred tax - Analysis of Defe
Deferred tax - Analysis of Deferred Tax Balances for Financial Reporting Purposes (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax assets gross | £ 430.9 | £ 412 | ||
Deferred tax assets, offset | (243) | (259) | ||
Deferred tax assets | [1] | 187.9 | 153 | £ 160.3 |
Deferred tax liabilities gross | (622.8) | (738.5) | ||
Deferred tax liabilities, offset | 243 | 259 | ||
Deferred tax liabilities | [1] | (379.8) | (479.5) | £ (513.7) |
Deferred tax assets (liabilities) | £ (191.9) | £ (326.5) | ||
[1] | Figures have been restated, as described in the accounting policies. |
Deferred tax - Movements of Maj
Deferred tax - Movements of Major Gross Deferred Tax Assets (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | [1] | £ 153 | £ 160.3 |
Ending balance | [1] | 187.9 | 153 |
Gross deferred tax assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 412 | 411.8 | |
Acquisition of subsidiaries | 2 | ||
Credit/(charge) to income | 57.6 | (16.6) | |
Charge to other comprehensive income | (3.2) | (0.2) | |
Credit/(charge) to equity | 30.9 | (1.6) | |
Transfer to disposal group classified as held for sale | (56.3) | ||
Exchange differences | (10.1) | 16.6 | |
Ending balance | 430.9 | 412 | |
Gross deferred tax assets [member] | Deferred compensation [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 61.6 | 53.5 | |
Credit/(charge) to income | (1.7) | 4.7 | |
Transfer to disposal group classified as held for sale | (4.2) | ||
Exchange differences | (2.2) | 3.4 | |
Ending balance | 53.5 | 61.6 | |
Gross deferred tax assets [member] | Accounting provisions and accruals [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 101.4 | 84.9 | |
Credit/(charge) to income | 10.2 | 13 | |
Transfer to disposal group classified as held for sale | (19.2) | ||
Exchange differences | (5) | 3.5 | |
Ending balance | 87.4 | 101.4 | |
Gross deferred tax assets [member] | Retirement benefit obligation [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 68.5 | 75.6 | |
Credit/(charge) to income | 6.7 | (11.2) | |
Charge to other comprehensive income | (3.2) | (0.2) | |
Transfer to disposal group classified as held for sale | (12.3) | ||
Exchange differences | (2.2) | 4.3 | |
Ending balance | 57.5 | 68.5 | |
Gross deferred tax assets [member] | Property, plant and equipment [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 47.9 | 68.4 | |
Credit/(charge) to income | 19.4 | (20.6) | |
Credit/(charge) to equity | 27.8 | ||
Transfer to disposal group classified as held for sale | (13.6) | ||
Exchange differences | 3.2 | 0.1 | |
Ending balance | 84.7 | 47.9 | |
Gross deferred tax assets [member] | Tax losses and credits [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 67.1 | 72.7 | |
Credit/(charge) to income | 24.2 | (8.9) | |
Transfer to disposal group classified as held for sale | (3) | ||
Exchange differences | (2) | 3.3 | |
Ending balance | 86.3 | 67.1 | |
Gross deferred tax assets [member] | Share-based payments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 16.8 | 33 | |
Credit/(charge) to income | 2.9 | (15.3) | |
Credit/(charge) to equity | 3.1 | (1.6) | |
Transfer to disposal group classified as held for sale | (0.7) | ||
Exchange differences | (0.6) | 0.7 | |
Ending balance | 21.5 | 16.8 | |
Gross deferred tax assets [member] | Restructuring provisions [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 17.3 | 5.8 | |
Credit/(charge) to income | 12.5 | 10.7 | |
Transfer to disposal group classified as held for sale | (3.4) | ||
Exchange differences | (0.6) | 0.8 | |
Ending balance | 25.8 | 17.3 | |
Gross deferred tax assets [member] | Other temporary differences [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 31.4 | 17.9 | |
Acquisition of subsidiaries | 2 | ||
Credit/(charge) to income | (16.6) | 11 | |
Transfer to disposal group classified as held for sale | 0.1 | ||
Exchange differences | (0.7) | 0.5 | |
Ending balance | £ 14.2 | £ 31.4 | |
[1] | Figures have been restated, as described in the accounting policies. |
Deferred tax - Movements of Gro
Deferred tax - Movements of Gross Deferred Tax Liabilities (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | [1] | £ 479.5 | £ 513.7 |
Ending balance | [1] | 379.8 | 479.5 |
Gross deferred tax liabilities [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 738.5 | 765.2 | |
Acquisition of subsidiaries | 0.8 | 10.7 | |
(Credit)/charge to income | 18.1 | (62.8) | |
(Credit)/charge to other comprehensive income | (9.6) | 0.5 | |
Transfer to disposal group classified as held for sale | (105.6) | ||
Exchange differences | (19.4) | 24.9 | |
Ending balance | 622.8 | 738.5 | |
Gross deferred tax liabilities [member] | Brands and other intangibles [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 438.6 | 489.2 | |
Acquisition of subsidiaries | 0.8 | 10.7 | |
(Credit)/charge to income | (31.2) | (68.8) | |
Transfer to disposal group classified as held for sale | (46.6) | ||
Exchange differences | (9.3) | 7.5 | |
Ending balance | 352.3 | 438.6 | |
Gross deferred tax liabilities [member] | Associate earnings [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 17.6 | 21.6 | |
(Credit)/charge to income | 68.6 | (3.9) | |
Transfer to disposal group classified as held for sale | (7.9) | ||
Exchange differences | (1.8) | (0.1) | |
Ending balance | 76.5 | 17.6 | |
Gross deferred tax liabilities [member] | Goodwill [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 182.3 | 140.4 | |
(Credit)/charge to income | 10.3 | 31.8 | |
Transfer to disposal group classified as held for sale | (51.7) | ||
Exchange differences | (5.5) | 10.1 | |
Ending balance | 135.4 | 182.3 | |
Gross deferred tax liabilities [member] | Property, plant and equipment [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 22.2 | 21.2 | |
(Credit)/charge to income | (22.2) | (0.3) | |
Exchange differences | 1.3 | ||
Ending balance | 22.2 | ||
Gross deferred tax liabilities [member] | Financial instruments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 39.9 | 36.2 | |
(Credit)/charge to income | (0.7) | (0.9) | |
Exchange differences | (2.3) | 4.6 | |
Ending balance | 36.9 | 39.9 | |
Gross deferred tax liabilities [member] | Other temporary differences [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 37.9 | 56.6 | |
(Credit)/charge to income | (6.7) | (20.7) | |
(Credit)/charge to other comprehensive income | (9.6) | 0.5 | |
Transfer to disposal group classified as held for sale | (0.6) | ||
Exchange differences | (0.5) | 1.5 | |
Ending balance | £ 21.7 | £ 37.9 | |
[1] | Figures have been restated, as described in the accounting policies. |
Deferred tax - Additional Infor
Deferred tax - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross tax losses and other temporary differences available for offset against future profits | £ 6,475.6 | £ 6,638.6 |
Gross tax losses and other temporary differences, deferred tax assets that have been recognised | 1,856.6 | 1,763.4 |
Gross tax losses and other temporary differences, deferred tax assets that have not been recognised | 4,619 | 4,875.2 |
Unrecognised temporary differences | 60.7 | 46.4 |
Losses carried forward | 4,437.6 | 4,572.6 |
Temporary differences, deferred tax liabilities that have not been recognised | £ 2,165.3 | £ 1,768.5 |
Bottom of range [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognised temporary differences, period | 1 year | |
Top of range [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognised temporary differences, period | 10 years |
Trade and other receivables - S
Trade and other receivables - Summary of Trade and Other Receivables, Amounts Falling Due Within One Year (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Trade and other receivables [abstract] | ||||
Trade receivables (net of bad debt provision) | £ 7,007.6 | £ 8,062.2 | ||
Work in progress | 349.5 | 366.5 | ||
VAT and sales taxes recoverable | 212.7 | 264.2 | ||
Prepayments | 287.1 | 287.3 | ||
Accrued income | 3,292.7 | 3,541.2 | ||
Fair value of derivatives | 1.4 | 1.3 | ||
Other debtors | 671.3 | 578.8 | ||
Trade and other receivables | [1] | £ 11,822.3 | £ 13,101.5 | £ 12,530.7 |
[1] | Figures have been restated, as described in the accounting policies. |
Trade and other receivables - A
Trade and other receivables - Ageing of Trade Receivables and Other Financial Assets (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [Line items] | ||
Financial assets | £ 7,590.1 | £ 8,613.9 |
Trade receivables [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 7,007.6 | 8,062.2 |
Other financial assets [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 582.5 | 551.7 |
0-30 days [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 1,064.8 | 1,432 |
0-30 days [member] | Trade receivables [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 934.9 | 1,370.7 |
0-30 days [member] | Other financial assets [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 129.9 | 61.3 |
31-90 days [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 389.3 | 563.3 |
31-90 days [member] | Trade receivables [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 341 | 549.1 |
31-90 days [member] | Other financial assets [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 48.3 | 14.2 |
91-180 days [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 108.3 | 136.9 |
91-180 days [member] | Trade receivables [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 92.1 | 128.3 |
91-180 days [member] | Other financial assets [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 16.2 | 8.6 |
181 days - 1 year [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 27.6 | 83.3 |
181 days - 1 year [member] | Trade receivables [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 22.4 | 75.6 |
181 days - 1 year [member] | Other financial assets [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 5.2 | 7.7 |
Over 1 year [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 89.2 | 99.8 |
Over 1 year [member] | Trade receivables [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 63.9 | 64.8 |
Over 1 year [member] | Other financial assets [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 25.3 | 35 |
Not past due [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 5,910.9 | 6,298.6 |
Not past due [member] | Trade receivables [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 5,553.3 | 5,873.7 |
Not past due [member] | Other financial assets [member] | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 357.6 | £ 424.9 |
Trade and other receivables -_2
Trade and other receivables - Summary of Trade and Other Receivables, Amounts Falling Due After More Than One Year (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Trade and other non-current receivables [abstract] | ||||
Prepayments | £ 2.2 | £ 3 | ||
Accrued income | 16.5 | |||
Fair value of derivatives | 8.4 | |||
Other debtors | 135.4 | 152.1 | ||
Trade and other receivables | [1] | £ 137.6 | £ 180 | £ 176.2 |
[1] | Figures have been restated, as described in the accounting policies. |
Trade and other receivables - B
Trade and other receivables - Bad Debt Provisions (Detail) - Trade receivables [member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of financial assets [Line items] | |||
At beginning of year | £ 116.6 | £ 91.3 | £ 93.8 |
New acquisitions | 5 | 1.5 | 1.2 |
Charged to the income statement | 45.4 | 66.7 | 27.4 |
Released to the income statement | (19) | (11.6) | (8.4) |
Exchange adjustments | (4.1) | 2.1 | (4.1) |
Transfer to disposal group classified as held for sale | (8.9) | 0 | |
Utilisations and other movements | (23.3) | (33.4) | (18.6) |
At end of year | £ 111.7 | £ 116.6 | £ 91.3 |
Trade and other receivables -_3
Trade and other receivables - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Trade and other receivables [abstract] | |||
Allowance for bad and doubtful debts as a percentage of gross trade accounts receivables | 1.60% | 1.40% | 1.10% |
Trade and other payables - Summ
Trade and other payables - Summary of Trade and Other Payables, Amounts Falling Due within One Year (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Trade and other current payables [abstract] | ||||
Trade payables | [1] | £ 10,112.1 | £ 10,524.3 | |
Deferred income | [1] | 1,024.6 | 1,253.6 | |
Payments due to vendors (earnout agreements) | [1] | 143.4 | 149.1 | |
Liabilities in respect of put option agreements with vendors | [1] | 75.7 | 19.4 | |
Fair value of derivatives | [1] | 1.5 | 2.6 | |
Share repurchases - close period commitments | [1],[2] | 252.3 | ||
Other creditors and accruals | [1] | 2,578.5 | 3,072.9 | |
Total | [3] | £ 14,188.1 | £ 15,021.9 | £ 14,239.5 |
[1] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies of the consolidated financial statements. | |||
[2] | During 2019, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 2 January 2020 and ending on 27 February 2020, in accordance with UK listing rules. The commitment resulting from this agreement constitutes a liability at 31 December 2019, which is included in Trade and other payables: amounts falling due within one year and has been recognised as a movement in equity. | |||
[3] | Figures have been restated, as described in the accounting policies. |
Trade and other payables - Su_2
Trade and other payables - Summary of Trade and Other Payables, Amounts Falling Due After More Than One Year (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Trade and other non-current payables [abstract] | ||||||
Payments due to vendors (earnout agreements) | [1] | £ 100.3 | £ 251.7 | |||
Liabilities in respect of put option agreements with vendors | [1] | 128.8 | 188.6 | |||
Fair value of derivatives | [1] | 21.2 | 14.2 | |||
Other creditors and accruals | [1] | 199.3 | 355.5 | |||
Trade and other payables | [2] | £ 449.6 | [1] | £ 810 | [1] | £ 911.7 |
[1] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. | |||||
[2] | Figures have been restated, as described in the accounting policies. |
Trade and other payables - Paym
Trade and other payables - Payments Due to Vendors (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||||||
Payments due to vendors, Current | [1] | £ 143.4 | £ 149.1 | |||
Payments due to vendors, Non-current | [2] | 100.3 | 251.7 | |||
Payments due to vendors | 243.7 | [2] | 400.8 | [2] | £ 584.5 | |
Within one year [member] | ||||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||||||
Payments due to vendors, Current | [2] | 143.4 | 149.1 | |||
Between one and two years [member] | ||||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||||||
Payments due to vendors, Non-current | [2] | 36.3 | 140 | |||
Between two and three years [member] | ||||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||||||
Payments due to vendors, Non-current | [2] | 34.6 | 36.6 | |||
Between three and four years [member] | ||||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||||||
Payments due to vendors, Non-current | [2] | 12.3 | 44 | |||
Between four and five years [member] | ||||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||||||
Payments due to vendors, Non-current | [2] | 7.7 | 17.1 | |||
Over five years [member] | ||||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||||||
Payments due to vendors, Non-current | [2] | £ 9.4 | £ 14 | |||
[1] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies of the consolidated financial statements. | |||||
[2] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. |
Trade and Other Payables Amount
Trade and Other Payables Amounts Falling Due After More than One Year - Summary of Contingent Consideration (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Disclosure Of Fair Value Of Contingent Consideration [abstract] | ||||
At the beginning of the year | £ 400.8 | [1] | £ 584.5 | |
Earnouts paid | (130) | (120.2) | ||
New acquisitions | 9.6 | 48.6 | ||
Revision of estimates taken to goodwill (note 14) | (14.1) | (67.6) | ||
Revaluation of payments due to vendors | 3.8 | (50.5) | ||
Transfer to disposal group classified as held for sale | (11.5) | 0 | ||
Exchange adjustments | (14.9) | 6 | ||
At end of year | [1] | £ 243.7 | £ 400.8 | |
[1] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. |
Trade and Other Payables - Addi
Trade and Other Payables - Additional Information (Detail) - GBP (£) | Dec. 31, 2019 | Dec. 31, 2018 |
Bottom of range [member] | Earnout agreements for acquisitions completed in the current year [member] | ||
Disclosure of trade and other payables [line items] | ||
Potential undiscounted amount of future payments | £ 0 | £ 0 |
Bottom of range [member] | All earn-out agreements [member] | ||
Disclosure of trade and other payables [line items] | ||
Potential undiscounted amount of future payments | 0 | 0 |
Top of range [member] | Earnout agreements for acquisitions completed in the current year [member] | ||
Disclosure of trade and other payables [line items] | ||
Potential undiscounted amount of future payments | 14,000,000 | 179,000,000 |
Top of range [member] | All earn-out agreements [member] | ||
Disclosure of trade and other payables [line items] | ||
Potential undiscounted amount of future payments | £ 1,110,000,000 | £ 1,960,000,000 |
Bank overdrafts, bonds and ba_3
Bank overdrafts, bonds and bank loans - Bank Overdrafts, Bonds and Bank Loans Amounts Falling Due Within One Year (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of bank overdraft bonds and bank loans [abstract] | ||||||
Bank overdrafts | [1],[2] | £ 8,572.4 | £ 8,864.6 | £ 9,852.8 | ||
Corporate bonds and bank loans | [2] | 225.6 | 583.1 | |||
Bank overdrafts, bonds and bank loans | [3] | £ 8,798 | [2] | £ 9,447.7 | [2] | £ 10,083.7 |
[1] | Bank overdrafts are included in cash and cash equivalents because they form an integral part of the Group’s cash management. | |||||
[2] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies of the consolidated financial statements. | |||||
[3] | Figures have been restated, as described in the accounting policies. |
Bank overdrafts, bonds and ba_4
Bank overdrafts, bonds and bank loans - Corporate Bonds and Bank Loans Amounts Falling Due After More Than One Year (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of bank overdraft bonds and bank loans [abstract] | ||||
Non-current portion of non-current borrowings | [1] | £ 4,047.3 | £ 5,634.8 | £ 6,250.4 |
[1] | Figures have been restated, as described in the accounting policies. |
Bank overdrafts, bonds and ba_5
Bank overdrafts, bonds and bank loans - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of bank overdraft bonds and bank loans [line items] | ||
Carrying amount of bank loans | £ 110.4 | £ 186.8 |
Corporate bond [member] | ||
Disclosure of bank overdraft bonds and bank loans [line items] | ||
Fair value of corporate bonds | £ 4,439.8 | £ 5,965.7 |
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, 2019 | Dec. 31, 2018 |
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | £ 12,845.3 | £ 15,082.5 |
Within one year [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | 8,798 | 9,447.7 |
Between one and two years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | 96.4 | 423.8 |
Between two and three years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | 590.4 | 761 |
Between three and four years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | 632.1 | 609.8 |
Between four and five years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | 554.3 | 670.1 |
Over five years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Corporate bonds, bank loans and overdrafts | £ 2,174.1 | £ 3,170.1 |
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, 2019 | Dec. 31, 2018 | |
Disclosure Of Noncurrent Provisions [line items] | ||
Beginning balance | £ 311.7 | £ 229 |
Charged to the income statement | 47.1 | 86 |
Acquisitions | 0.7 | 8.8 |
Utilised | (13.4) | (25.8) |
Released to the income statement | (17.2) | (10.3) |
Other movements | (49.2) | 12.9 |
Transfer to disposal group classified as held for sale | (24.6) | |
Exchange adjustments | (7.3) | 11.1 |
Ending balance | 247.8 | 311.7 |
Property [Member] | ||
Disclosure Of Noncurrent Provisions [line items] | ||
Beginning balance | 118.7 | 52.6 |
Charged to the income statement | 39.5 | 72.1 |
Acquisitions | 0.5 | |
Utilised | (1.2) | (5.7) |
Released to the income statement | (10.3) | (5.7) |
Other movements | (58.4) | 2 |
Transfer to disposal group classified as held for sale | (6.2) | |
Exchange adjustments | (0.6) | 2.9 |
Ending balance | 81.5 | 118.7 |
Other [member] | ||
Disclosure Of Noncurrent Provisions [line items] | ||
Beginning balance | 193 | 176.4 |
Charged to the income statement | 7.6 | 13.9 |
Acquisitions | 0.7 | 8.3 |
Utilised | (12.2) | (20.1) |
Released to the income statement | (6.9) | (4.6) |
Other movements | 9.2 | 10.9 |
Transfer to disposal group classified as held for sale | (18.4) | |
Exchange adjustments | (6.7) | 8.2 |
Ending balance | £ 166.3 | £ 193 |
Provisions for liabilities an_4
Provisions for liabilities and charges - Summary of Provisions for Liabilities and Charges (Parenthetical) (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of other provisions [abstract] | ||
Acquisitions provisions from revisions to fair value adjustments | £ 0.7 | £ 8.4 |
Transformation costs with respect to the strategic initiative of co-locations | £ 50.6 |
Share-based payments - Charges
Share-based payments - Charges for Share-based Incentive Plans (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of share based payments [abstract] | |||||
Share-based payments | £ 66 | £ 78.3 | [1] | £ 98.3 | [1] |
[1] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. |
Share-based payments - Addition
Share-based payments - Additional Information (Detail) £ in Millions | 12 Months Ended | ||
Dec. 31, 2019GBP (£)Employees | Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) | |
Restricted stock plans [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Unrecognised compensation cost | £ 140.7 | £ 146 | |
Fair value of shares vested | £ 90.8 | £ 107.2 | £ 114.8 |
Restricted stock plans [member] | Bottom of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Unrecognised compensation cost, recognised period | 1 year | ||
Restricted stock plans [member] | Top of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Unrecognised compensation cost, recognised period | 2 years | ||
Executive Performance Share Plan [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Performance period | 5 years | ||
Executive Performance Share Plan [member] | Bottom of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Threshold performance vesting percentage | 20.00% | ||
Compound annual growth percentage | 7.00% | ||
Average return on equity percentage | 10.00% | ||
Compound annual growth percentage | 14.00% | ||
Percentage of total Shareholder Return on vesting period | 15.00% | ||
Executive Performance Share Plan [member] | Top of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Threshold performance vesting percentage | 100.00% | ||
Compound annual growth percentage | 14.00% | ||
Average return on equity percentage | 14.00% | ||
Compound annual growth percentage | 18.00% | ||
Percentage of total Shareholder Return on vesting period | 100.00% | ||
Executive Performance Share Plan [member] | Weighted average [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Average return on equity percentage | 7.50% | ||
Performance Share Awards [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Vesting period | 2 years | ||
Leaders, Partners and High Potential Group [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Vesting period | 3 years | ||
Number of key executives participating in restricted stock plans | Employees | 1,500 |
Share-based payments - Movement
Share-based payments - Movement on Ordinary Shares Granted for Significant Restricted Stock Plans (Detail) Unit_pure in Millions | 12 Months Ended |
Dec. 31, 2019£ / shares | |
Executive Performance Share Plan [member] | |
Disclosure of movement on ordinary shares granted for significant restricted stock plans [line items] | |
Weighted average fair value, Non-vested beginning balance | £ 13.63 |
Weighted average fair value, Granted | 9.89 |
Weighted average fair value, Lapsed | 13.34 |
Weighted average fair value, Vested | 12.65 |
Weighted average fair value, Non-vested ending balance | £ 11.98 |
Number of shares, Non-vested beginning balance | 6.7 |
Number of shares, Granted | 4.2 |
Number of shares, Lapsed | (1.3) |
Number of shares, Vested | (0.8) |
Number of shares, Non-vested ending balance | 8.8 |
Performance Share Awards [member] | |
Disclosure of movement on ordinary shares granted for significant restricted stock plans [line items] | |
Weighted average fair value, Non-vested beginning balance | £ 14.37 |
Weighted average fair value, Granted | 9.26 |
Weighted average fair value, Lapsed | 12.10 |
Weighted average fair value, Vested | 15.72 |
Weighted average fair value, Non-vested ending balance | £ 10.81 |
Number of shares, Non-vested beginning balance | 2.3 |
Number of shares, Granted | 1.7 |
Number of shares, Lapsed | (0.4) |
Number of shares, Vested | (1) |
Number of shares, Non-vested ending balance | 2.6 |
Leaders, Partners and High Potential Group [member] | |
Disclosure of movement on ordinary shares granted for significant restricted stock plans [line items] | |
Weighted average fair value, Non-vested beginning balance | £ 11.54 |
Weighted average fair value, Granted | 9.09 |
Weighted average fair value, Lapsed | 10.76 |
Weighted average fair value, Vested | 15.51 |
Weighted average fair value, Non-vested ending balance | £ 9.74 |
Number of shares, Non-vested beginning balance | 9.1 |
Number of shares, Granted | 4.1 |
Number of shares, Lapsed | (1.9) |
Number of shares, Vested | (2) |
Number of shares, Non-vested ending balance | 9.3 |
Provision for post-employment_3
Provision for post-employment benefits - Pension Costs (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | [1] | |
Disclosure Of Pension Costs [abstract] | |||||
Defined contribution plans | £ 154.9 | £ 146.7 | £ 149.5 | ||
Defined benefit plans charge to operating profit | 14.8 | 14.2 | 11.8 | ||
Pension costs (note 5) | 169.7 | 160.9 | 161.3 | ||
Net interest expense on pension plans (note 6) | 3.5 | 3.6 | 5.4 | ||
Pension costs, Net | £ 173.2 | £ 164.5 | £ 166.7 | ||
[1] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. |
Provision for post-employment_4
Provision for post-employment benefits - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | |||
Employer contributions (for funded plans) and benefit payments (for unfunded plans) | £ 37.1 | £ 44.9 | £ 68.2 |
Employer contributions (for funded plans) and benefit payments (for unfunded plans), expected in 2020. | £ 25 | ||
Years life expectancy after age 65 - Current pensioners (at age 65) - male [member] | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assumption of life expectancy | 22 years 2 months 12 days | 22 years 2 months 12 days | |
Years life expectancy after age 65 - Current pensioners (at age 65) - female [member] | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assumption of life expectancy | 23 years 8 months 12 days | 23 years 10 months 24 days | |
Years life expectancy after age 65 - Future pensioners (current age 45) - male [member] | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assumption of life expectancy | 23 years 9 months 18 days | 24 years | |
Years life expectancy after age 65 - Future pensioners (current age 45) - female [member] | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assumption of life expectancy | 25 years 4 months 24 days | 25 years 8 months 12 days |
Provision for post-employment_5
Provision for post-employment benefits - Weighted Average Assumptions Used For Actuarial Valuations (Detail) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
United Kingdom [member] | |||||
Disclosure of defined benefit plans [line items] | |||||
Discount rate | [1] | 2.00% | 2.80% | 2.40% | 2.50% |
Rate of increase in salaries | [2] | 3.50% | |||
Rate of increase in pensions in payment | 4.40% | 4.30% | 4.10% | 4.10% | |
Inflation | 2.60% | 2.80% | 2.70% | 2.80% | |
North America [member] | |||||
Disclosure of defined benefit plans [line items] | |||||
Discount rate | [1] | 3.00% | 4.10% | 3.50% | 3.80% |
Rate of increase in salaries | 3.00% | 3.00% | 3.10% | 3.10% | |
Inflation | 4.00% | 4.00% | |||
Western Continental Europe [member] | |||||
Disclosure of defined benefit plans [line items] | |||||
Discount rate | [1] | 1.20% | 2.00% | 1.90% | 1.70% |
Rate of increase in salaries | 2.20% | 2.30% | 1.90% | 2.00% | |
Rate of increase in pensions in payment | 1.80% | 1.20% | 1.20% | 1.30% | |
Inflation | 1.70% | 1.70% | 1.70% | 1.70% | |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | |||||
Disclosure of defined benefit plans [line items] | |||||
Discount rate | [1] | 4.60% | 5.00% | 4.20% | 4.20% |
Rate of increase in salaries | 6.10% | 5.80% | 5.50% | 5.90% | |
Inflation | 3.70% | 3.60% | 4.00% | 4.00% | |
[1] | Discount rates are based on high-quality corporate bond yields. In countries where there is no deep market in corporate bonds, the discount rate assumption has been set with regard to the yield on long-term government bonds. | ||||
[2] | The salary assumptions are no longer applicable to the UK as the plans were either frozen or bought out since 2017. Active participants will not accrue additional benefits for future services under these plans. |
Provision for post-employment_6
Provision for post-employment benefits - Life Expectancies For Defined Benefit Pension Plans (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Years life expectancy after age 65 - Current pensioners (at age 65) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 22 years 2 months 12 days | 22 years 2 months 12 days |
Years life expectancy after age 65 - Current pensioners (at age 65) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 8 months 12 days | 23 years 10 months 24 days |
Years life expectancy after age 65 - Future pensioners (current age 45) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 9 months 18 days | 24 years |
Years life expectancy after age 65 - Future pensioners (current age 45) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 25 years 4 months 24 days | 25 years 8 months 12 days |
North America [member] | Years life expectancy after age 65 - Current pensioners (at age 65) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 21 years 10 months 24 days | |
North America [member] | Years life expectancy after age 65 - Current pensioners (at age 65) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 3 months 18 days | |
North America [member] | Years life expectancy after age 65 - Future pensioners (current age 45) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 4 months 24 days | |
North America [member] | Years life expectancy after age 65 - Future pensioners (current age 45) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 24 years 10 months 24 days | |
United Kingdom [member] | Years life expectancy after age 65 - Current pensioners (at age 65) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 1 month 6 days | |
United Kingdom [member] | Years life expectancy after age 65 - Current pensioners (at age 65) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 24 years 1 month 6 days | |
United Kingdom [member] | Years life expectancy after age 65 - Future pensioners (current age 45) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 24 years 8 months 12 days | |
United Kingdom [member] | Years life expectancy after age 65 - Future pensioners (current age 45) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 25 years 10 months 24 days | |
Western Continental Europe [member] | Years life expectancy after age 65 - Current pensioners (at age 65) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 20 years 9 months 18 days | |
Western Continental Europe [member] | Years life expectancy after age 65 - Current pensioners (at age 65) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 10 months 24 days | |
Western Continental Europe [member] | Years life expectancy after age 65 - Future pensioners (current age 45) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 2 months 12 days | |
Western Continental Europe [member] | Years life expectancy after age 65 - Future pensioners (current age 45) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 26 years | |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Years life expectancy after age 65 - Current pensioners (at age 65) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 14 years | |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Years life expectancy after age 65 - Current pensioners (at age 65) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 17 years 4 months 24 days | |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Years life expectancy after age 65 - Future pensioners (current age 45) - male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 14 years | |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Years life expectancy after age 65 - Future pensioners (current age 45) - female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 17 years 4 months 24 days |
Provision for post-employment_7
Provision for post-employment benefits - Weighted Average Duration of Defined Benefit Pension Obligations and Distribution of Timing of Benefit Payments (Detail) £ in Millions | 12 Months Ended |
Dec. 31, 2019GBP (£) | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of defined benefit obligation | 11 years 2 months 12 days |
Within one year [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 51.4 |
Between one and two years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 45.4 |
Between two and three years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 46.9 |
Between three and four years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 44.4 |
Between four and five years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 42.3 |
Later than five years and not later than ten years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 216.1 |
North America [member] | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of defined benefit obligation | 9 years 1 month 6 days |
North America [member] | Within one year [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 25.1 |
North America [member] | Between one and two years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 24.5 |
North America [member] | Between two and three years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 26 |
North America [member] | Between three and four years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 22.3 |
North America [member] | Between four and five years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 20.9 |
North America [member] | Later than five years and not later than ten years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 94.7 |
United Kingdom [member] | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of defined benefit obligation | 13 years 9 months 18 days |
United Kingdom [member] | Within one year [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 15.8 |
United Kingdom [member] | Between one and two years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 12.6 |
United Kingdom [member] | Between two and three years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 12.7 |
United Kingdom [member] | Between three and four years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 12.9 |
United Kingdom [member] | Between four and five years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 13 |
United Kingdom [member] | Later than five years and not later than ten years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 67.1 |
Western Continental Europe [member] | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of defined benefit obligation | 12 years 8 months 12 days |
Western Continental Europe [member] | Within one year [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 5.8 |
Western Continental Europe [member] | Between one and two years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 5.5 |
Western Continental Europe [member] | Between two and three years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 5.8 |
Western Continental Europe [member] | Between three and four years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 5.7 |
Western Continental Europe [member] | Between four and five years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 5.6 |
Western Continental Europe [member] | Later than five years and not later than ten years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 32.6 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of defined benefit obligation | 8 years 6 months |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Within one year [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 4.7 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Between one and two years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 2.8 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Between two and three years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 2.4 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Between three and four years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 3.5 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Between four and five years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 2.8 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | Later than five years and not later than ten years [member] | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 21.7 |
Provision for post-employment_8
Provision for post-employment benefits - Sensitivity Analysis of Significant Actuarial Assumptions (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Discount rate [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumption, basis point increase | 0.25% | 0.25% |
Assumption, basis point decrease | 0.25% | 0.25% |
Discount rate [member] | United Kingdom [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ (8.2) | £ (9.8) |
Increase/(decrease) in benefit obligation, due to decrease in assumption | 8.5 | 10.3 |
Discount rate [member] | North America [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | (7.5) | (8.8) |
Increase/(decrease) in benefit obligation, due to decrease in assumption | 7.7 | 9.1 |
Discount rate [member] | Western Continental Europe [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | (3.8) | (8.7) |
Increase/(decrease) in benefit obligation, due to decrease in assumption | 3.9 | 9.3 |
Discount rate [member] | Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | (0.7) | (0.7) |
Increase/(decrease) in benefit obligation, due to decrease in assumption | £ 0.7 | £ 0.7 |
Rate of increase in salaries [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumption, basis point increase | 0.25% | 0.25% |
Assumption, basis point decrease | 0.25% | 0.25% |
Rate of increase in salaries [member] | Western Continental Europe [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ 0.8 | £ 1.3 |
Increase/(decrease) in benefit obligation, due to decrease in assumption | (0.8) | (1.2) |
Rate of increase in salaries [member] | Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | 0.6 | 0.7 |
Increase/(decrease) in benefit obligation, due to decrease in assumption | £ (0.6) | £ (0.6) |
Rate of increase in pensions in payment [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumption, basis point increase | 0.25% | 0.25% |
Assumption, basis point decrease | 0.25% | 0.25% |
Rate of increase in pensions in payment [member] | United Kingdom [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ 0.7 | £ 1.3 |
Increase/(decrease) in benefit obligation, due to decrease in assumption | (0.6) | (0.8) |
Rate of increase in pensions in payment [member] | Western Continental Europe [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | 1.9 | 5.3 |
Increase/(decrease) in benefit obligation, due to decrease in assumption | £ (1.9) | £ (5) |
Life expectancy [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumption, increase in longevity | 1 year | 1 year |
Life expectancy [member] | United Kingdom [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ 11.7 | £ 13.6 |
Life expectancy [member] | North America [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | 5.9 | 5.7 |
Life expectancy [member] | Western Continental Europe [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ 4.3 | £ 6.9 |
Provision for post-employment_9
Provision for post-employment benefits - Fair Value of Assets and Assessed Present Value of Liabilities in Pension Plans (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of defined benefit plans [abstract] | |||
Fair value of assets allocation, Equities | 9.10% | 9.10% | 13.40% |
Fair value of assets allocation, Bonds | 44.80% | 64.80% | 55.90% |
Fair value of assets allocation, Insured annuities | 39.30% | 10.80% | 19.20% |
Fair value of assets allocation, Property | 0.10% | 0.10% | 0.10% |
Fair value of assets allocation, Cash | 2.90% | 3.70% | 1.10% |
Fair value of assets allocation, Other | 3.80% | 11.50% | 10.30% |
Total fair value of assets allocation | 100.00% | 100.00% | 100.00% |
Fair value of assets, Equities | £ 55.5 | £ 76.5 | £ 124.6 |
Fair value of assets, Bonds | 272.5 | 544.9 | 520 |
Fair value of assets, Insured annuities | 239.1 | 90.9 | 178.5 |
Fair value of assets, Property | 0.7 | 0.9 | 1.3 |
Fair value of assets, Cash | 17.7 | 31.1 | 9.9 |
Fair value of assets, Other | 23 | 96.3 | 95.7 |
Total fair value of assets | 608.5 | 840.6 | 930 |
Present value of liabilities | (767.5) | (1,024) | (1,135.4) |
Deficit in the plans | (159) | (183.4) | (205.4) |
Irrecoverable surplus | 0 | (0.9) | (0.9) |
Net liability | (159) | (184.3) | (206.3) |
Plans in surplus | 20.6 | 42.8 | 43.9 |
Plans in deficit | £ (179.6) | £ (227.1) | £ (250.2) |
Provision for post-employmen_10
Provision for post-employment benefits - Surplus/(Deficit) in Plans by Region (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of defined benefit plans [line items] | |||
Surplus/(deficit) in plans | £ (159) | £ (183.4) | £ (205.4) |
United Kingdom [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/(deficit) in plans | 0.3 | 33.7 | 31.5 |
North America [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/(deficit) in plans | (45.2) | (68.7) | (89.2) |
Western Continental Europe [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/(deficit) in plans | (79.4) | (104.6) | (107.7) |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/(deficit) in plans | £ (34.7) | £ (43.8) | £ (40) |
Provision for post-employmen_11
Provision for post-employment benefits - Funded and Unfunded Pension Plans By Region (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | £ (159) | £ (183.4) | £ (205.4) |
Present value of liabilities | (767.5) | (1,024) | (1,135.4) |
United Kingdom [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | 0.3 | 33.7 | 31.5 |
North America [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (45.2) | (68.7) | (89.2) |
Western Continental Europe [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (79.4) | (104.6) | (107.7) |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (34.7) | (43.8) | (40) |
Funded defined benefit plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (23.8) | (13.3) | (32) |
Present value of liabilities | (632.3) | (853.9) | (962) |
Funded defined benefit plans [member] | United Kingdom [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | 0.3 | 33.7 | 31.5 |
Present value of liabilities | (247.6) | (290.5) | (387.5) |
Funded defined benefit plans [member] | North America [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | 12.8 | (4.6) | (21.4) |
Present value of liabilities | (286.2) | (375.3) | (385.4) |
Funded defined benefit plans [member] | Western Continental Europe [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (33.3) | (35.8) | (37.9) |
Present value of liabilities | (77.6) | (168.4) | (173.3) |
Funded defined benefit plans [member] | Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (3.6) | (6.6) | (4.2) |
Present value of liabilities | (20.9) | (19.7) | (15.8) |
Unfunded defined benefit plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (135.2) | (170.1) | (173.4) |
Present value of liabilities | (135.2) | (170.1) | (173.4) |
Unfunded defined benefit plans [member] | North America [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (58) | (64.1) | (67.8) |
Present value of liabilities | (58) | (64.1) | (67.8) |
Unfunded defined benefit plans [member] | Western Continental Europe [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (46.1) | (68.8) | (69.8) |
Present value of liabilities | (46.1) | (68.8) | (69.8) |
Unfunded defined benefit plans [member] | Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (31.1) | (37.2) | (35.8) |
Present value of liabilities | £ (31.1) | £ (37.2) | £ (35.8) |
Provision for post-employmen_12
Provision for post-employment benefits - Pension Expense Charged to Operating Profit, Amounts Charged to Finance Costs and Amounts Recognised in Consolidated Statement of Comprehensive Income (OCI) (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure of net defined benefit (liability) asset | ||||||
Service cost | [1] | £ 12.9 | £ 12 | [2] | £ 9.4 | [2] |
Administrative expenses | 1.9 | 2.2 | [2] | 2.4 | [2] | |
Charge to operating profit | 14.8 | 14.2 | [2] | 11.8 | [2] | |
Net interest expense on pension plans | 3.5 | 3.6 | [2] | 5.4 | [2] | |
Charge to profit before taxation for defined benefit plans | 18.3 | 17.8 | [2] | 17.2 | [2] | |
Actuarial (loss)/gain recognised in OCI | [3] | (36.6) | 8.9 | 17 | ||
Post employment pension other comprehensive income [member] | ||||||
Disclosure of net defined benefit (liability) asset | ||||||
Return on plan assets (excluding interest income) | 16.7 | (43.9) | 13.4 | |||
Changes in demographic assumptions underlying the present value of the plan liabilities | 5.9 | 3.8 | 12.7 | |||
Changes in financial assumptions underlying the present value of the plan liabilities | (64.3) | 45.2 | (17) | |||
Experience gain arising on the plan liabilities | 5.1 | 3.8 | 7.9 | |||
Actuarial (loss)/gain recognised in OCI | £ (36.6) | £ 8.9 | £ 17 | |||
[1] | Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments. | |||||
[2] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[3] | Figures have been restated, as described in the accounting policies. |
Provision for post-employmen_13
Provision for post-employment benefits - Movement in Pension Plan Liabilities (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of net defined benefit (liability) asset | ||||
Plan liabilities at beginning of year | £ 184.3 | £ 206.3 | ||
Plan liabilities at end of year | 159 | 184.3 | £ 206.3 | |
Retirement benefit obligation [member] | ||||
Disclosure of net defined benefit (liability) asset | ||||
Plan liabilities at beginning of year | 1,024 | 1,135.4 | 1,209.8 | |
Service cost | [1] | 14.9 | 15.5 | 13 |
Interest cost | 26.2 | 30.7 | 32.9 | |
Effect of changes in demographic assumptions | (5.9) | (3.8) | (12.7) | |
Effect of changes in financial assumptions | 64.3 | (45.2) | 17 | |
Effect of experience adjustments | (5.1) | (3.8) | (7.9) | |
Benefits paid | [2] | (140.8) | (75.6) | (79.7) |
(Gain)/loss due to exchange rate movements | (22.7) | 30 | (36.4) | |
Settlement payments | [3] | (47.4) | (70.4) | (1.2) |
Transfer to disposal group classified as held for sale | (148) | |||
Other | [4] | 8 | 11.2 | 0.6 |
Plan liabilities at end of year | £ 767.5 | £ 1,024 | £ 1,135.4 | |
[1] | Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments. | |||
[2] | In 2019, there was an amendment to a US defined benefit plan that allowed certain participants to receive immediate lump sum pay-outs, which totalled £69.7 million. | |||
[3] | In 2019 and 2018, the Group completed the transfer of the defined benefit obligations for certain UK plans to an insurer resulting in £47.1 million and £70.4 million, respectively, in settlement payments. | |||
[4] | 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. |
Provision for post-employmen_14
Provision for post-employment benefits - Movement in Pension Plan Liabilities (Parenthetical) (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Plan assets [member] | ||||
Disclosure of net defined benefit (liability) asset | ||||
Settlement payments | [1] | £ (47.4) | £ (70.4) | £ (1.2) |
United Kingdom [member] | ||||
Disclosure of net defined benefit (liability) asset | ||||
Settlement payments | 47.1 | £ 70.4 | ||
United States [member] | Plan assets [member] | ||||
Disclosure of net defined benefit (liability) asset | ||||
Defined Benefit Plan, Lump Sum Payouts | £ 69.7 | |||
[1] | In 2019 and 2018, the Group completed the transfer of the defined benefit obligations for certain UK plans to an insurer resulting in £47.1 million and £70.4 million, respectively, in settlement payments. |
Provision for post-employmen_15
Provision for post-employment benefits - Movement in Pension Plan Assets (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure of net defined benefit (liability) asset | ||||||
Fair value of plan assets at beginning of year | £ (184.3) | £ (206.3) | ||||
Employer contributions | (37.1) | (44.9) | £ (68.2) | |||
Administrative expenses | (1.9) | (2.2) | [1] | (2.4) | [1] | |
Fair value of plan assets at end of year | (159) | (184.3) | (206.3) | |||
Plan assets [member] | ||||||
Disclosure of net defined benefit (liability) asset | ||||||
Fair value of plan assets at beginning of year | 840.6 | 930 | 934.2 | |||
Interest income on plan assets | 22.4 | 26.3 | 26.6 | |||
Return on plan assets (excluding interest income) | 16.7 | (43.9) | 13.4 | |||
Employer contributions | 37.1 | 44.9 | 68.2 | |||
Benefits paid | [2] | (140.8) | (75.6) | (79.7) | ||
(Loss)/gain due to exchange rate movements | (15.7) | 23 | (28.7) | |||
Settlement payments | [3] | (47.4) | (70.4) | (1.2) | ||
Administrative expenses | (2.1) | (3.4) | (3.1) | |||
Transfer to disposal group classified as held for sale | (111.1) | |||||
Other | [4] | 8.8 | 9.7 | 0.3 | ||
Fair value of plan assets at end of year | 608.5 | 840.6 | 930 | |||
Actual return on plan assets | £ 39.1 | £ (17.6) | £ 40 | |||
[1] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[2] | In 2019, there was an amendment to a US defined benefit plan that allowed certain participants to receive immediate lump sum pay-outs, which totalled £69.7 million. | |||||
[3] | In 2019 and 2018, the Group completed the transfer of the defined benefit obligations for certain UK plans to an insurer resulting in £47.1 million and £70.4 million, respectively, in settlement payments. | |||||
[4] | 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. |
Provision for post-employmen_16
Provision for post-employment benefits - Movement in Pension Plan Assets (Parenthetical) (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Plan assets [member] | ||||
Disclosure of net defined benefit (liability) asset | ||||
Settlement payments | [1] | £ (47.4) | £ (70.4) | £ (1.2) |
United Kingdom [member] | ||||
Disclosure of net defined benefit (liability) asset | ||||
Settlement payments | 47.1 | £ 70.4 | ||
United States [member] | Plan assets [member] | ||||
Disclosure of net defined benefit (liability) asset | ||||
Defined Benefit Plan, Lump Sum Payouts | £ 69.7 | |||
[1] | In 2019 and 2018, the Group completed the transfer of the defined benefit obligations for certain UK plans to an insurer resulting in £47.1 million and £70.4 million, respectively, in settlement payments. |
Event after the reporting per_2
Event after the reporting period - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Text block [abstract] | ||
Undrawn borrowing facilities | £ 2,005.6 | £ 2,074.7 |
Risk management policies - Addi
Risk management policies - Additional Information (Detail) € in Millions, £ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019GBP (£) | Dec. 31, 2018GBP (£) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | |
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | £ 4,272.9 | £ 6,217.9 | ||||
Total committed facilities available | £ 6,309.8 | |||||
Borrowings average maturity term | 8 years 2 months 12 days | |||||
Eurobonds (3m EURIBOR + 0.32%) due May 2020 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Total committed facilities available | £ 211.6 | € 250 | ||||
Borrowings Maturity Term | 2 years | |||||
Interest rate risk [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage increase in market interest rate | 1.00% | 1.00% | ||||
Potential amount of change due to an increase or decrease in risk | £ 22.6 | £ 7.2 | ||||
Percentage decrease in market interest rate | 1.00% | 1.00% | ||||
US dollar borrowings [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | $ | $ 1,563 | $ 2,784 | ||||
US dollar borrowings [member] | Weighted average [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | $ | $ 2,509 | $ 3,377 | ||||
US dollar borrowings [member] | Fixed interest rate [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage of debt | 100.00% | |||||
Borrowings interest rate | 4.06% | 4.06% | 4.06% | |||
Average period of debt | 95 months | |||||
Sterling Borrowings [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | £ 844 | £ 1,044 | ||||
Sterling Borrowings [member] | Weighted average [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | £ 947 | £ 1,039 | ||||
Sterling Borrowings [member] | Fixed interest rate [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage of debt | 100.00% | |||||
Borrowings interest rate | 2.73% | 2.73% | 2.73% | |||
Average period of debt | 188 months | |||||
Sterling Borrowings [member] | Currency risk [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage weakening of sterling against major currencies | 10.00% | 10.00% | 10.00% | |||
Percentage increase of sterling against major currencies | 10.00% | 10.00% | 10.00% | |||
Euro Borrowings [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | € | € 2,600 | € 3,200 | ||||
Euro Borrowings [member] | Weighted average [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | € | € 3,128 | € 3,202 | ||||
Euro Borrowings [member] | Fixed interest rate [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage of debt | 80.80% | |||||
Borrowings interest rate | 2.34% | 2.34% | 2.34% | |||
Average period of debt | 82 months | |||||
Euro Borrowings [member] | Floating interest rate [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage of debt | 19.20% | |||||
Borrowings interest rate | 0.06% | 0.06% | 0.06% | |||
Average period of debt | 16 months |
Risk management policies - Comm
Risk management policies - Committed Facilities (Detail) € in Millions, £ in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019GBP (£) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019AUD ($) | Dec. 31, 2018GBP (£) | |
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 6,309.8 | ||||
Drawn down facilities | 4,304.2 | ||||
Undrawn committed credit facilities | 2,005.6 | £ 2,074.7 | |||
Sterling bonds due September 2046 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 400 | ||||
Interest rate | 2.875% | 2.875% | 2.875% | 2.875% | |
US$ bonds due November 2043 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 165.8 | $ 220 | |||
Interest rate | 5.625% | 5.625% | 5.625% | 5.625% | |
US$ bonds due September 2042 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 70 | $ 93 | |||
Interest rate | 5.125% | 5.125% | 5.125% | 5.125% | |
Euro bonds due March 2030 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 507.9 | € 600 | |||
Interest rate | 1.625% | 1.625% | 1.625% | 1.625% | |
Euro bonds due September 2026 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 634.9 | € 750 | |||
Interest rate | 2.25% | 2.25% | 2.25% | 2.25% | |
US$ bonds due September 2024 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 565.5 | $ 750 | |||
Interest rate | 3.75% | 3.75% | 3.75% | 3.75% | |
Bank revolver due 2024 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 1,884.9 | $ 2,500 | |||
Euro bonds due November 2023 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 634.9 | € 750 | |||
Interest rate | 3.00% | 3.00% | 3.00% | 3.00% | |
US$ bonds due September 2022 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 377 | $ 500 | |||
Interest rate | 3.625% | 3.625% | 3.625% | 3.625% | |
Eurobonds (3m EURIBOR + 0.32%) due May 2020 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Adjustment to floating basis | 0.32% | 0.32% | 0.32% | 0.32% | |
Floating basis | 3m EURIBOR | ||||
Total committed facilities available | £ 211.6 | € 250 | |||
Australian New Zealand revolving credit facilities [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 222.4 | ||||
Euro bonds due 2025 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 423.3 | € 500 | |||
Interest rate | 1.375% | 1.375% | 1.375% | 1.375% | |
Eurobonds (3m EURIBOR + 0.45%) due March 2022 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Adjustment to floating basis | 0.45% | 0.45% | 0.45% | 0.45% | |
Floating basis | 3m EURIBOR | ||||
Total committed facilities available | £ 211.6 | € 250 | |||
Australian revolving credit facilities due 2020 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | $ | $ 150 | ||||
Australian revolving credit facilities due 2021 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | $ | $ 270 | ||||
Within one year [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 291 | ||||
Drawn down facilities | 216.9 | ||||
Within one year [member] | Eurobonds (3m EURIBOR + 0.32%) due May 2020 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 211.6 | ||||
Within one year [member] | Australian New Zealand revolving credit facilities [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 79.4 | ||||
Between one and two years [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 143 | ||||
Drawn down facilities | 96.4 | ||||
Between one and two years [member] | Australian New Zealand revolving credit facilities [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 143 | ||||
Between two and three years [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 588.6 | ||||
Drawn down facilities | 588.6 | ||||
Between two and three years [member] | US$ bonds due September 2022 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 377 | ||||
Between two and three years [member] | Eurobonds (3m EURIBOR 0.45%) due March 2022 [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 211.6 | € 250 | |||
Between three and four years [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 634.9 | ||||
Drawn down facilities | 634.9 | ||||
Between three and four years [member] | Euro bonds due November 2023 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 634.9 | ||||
Later than four years [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 4,652.3 | ||||
Drawn down facilities | 2,767.4 | ||||
Later than four years [member] | Sterling bonds due September 2046 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 400 | ||||
Later than four years [member] | US$ bonds due November 2043 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 165.8 | ||||
Later than four years [member] | US$ bonds due September 2042 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 70 | ||||
Later than four years [member] | Euro bonds due March 2030 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 507.9 | ||||
Later than four years [member] | Euro bonds due September 2026 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 634.9 | ||||
Later than four years [member] | US$ bonds due September 2024 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 565.5 | ||||
Later than four years [member] | Bank revolver due 2024 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | 1,884.9 | ||||
Later than four years [member] | Euro bonds due 2025 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total committed facilities available | £ 423.3 |
Risk management policies - Summ
Risk management policies - Summary of currency risk (Detail) - Currency risk [member] - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Euro [member] | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Accumulated fair value hedge adjustment on hedged item included in carrying amount, assets | [1] | £ 153 | £ 211.4 |
US dollar [member] | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Accumulated fair value hedge adjustment on hedged item included in carrying amount, assets | [1] | £ 240.5 | £ 278.1 |
[1] | Figures have been restated, as described in the accounting policies. |
Financial instruments - Additio
Financial instruments - Additional Information (Detail) € in Millions | 12 Months Ended | |||
Dec. 31, 2019GBP (£) | Dec. 31, 2019EUR (€) | Dec. 31, 2018GBP (£) | Dec. 31, 2018USD ($) | |
Disclosure of detailed information about financial instruments [line items] | ||||
Nominal amount | £ 6,309,800,000 | |||
Weighted average growth rate | 19.50% | 22.70% | 22.70% | |
Risk adjusted discount rate | 4.10% | 3.20% | 3.20% | |
An increase or decrease in the multiple of one times revenue [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Increase or decrease in fair value of other investments | £ 53,600,000 | |||
Increase decrease on Income statement due to change in fair value of other investment | 3,300,000 | |||
Increase decrease on equity due to change in fair value of other investment | 50,300,000 | |||
One percentage point increase or decrease [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Increase in combined liabilities due to earn out and put option arrangement | 3,800,000 | £ 5,800,000 | ||
Decrease in combined liabilities due to earn out and put option arrangement | 6,600,000 | 8,700,000 | ||
0.5 percentage point increase or decrease [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Increase in combined liabilities due to earn out and put option arrangement | 4,000,000 | 6,400,000 | ||
Decrease in combined liabilities due to earn out and put option arrangement | 3,900,000 | 6,300,000 | ||
Interest Rate Swap Contract [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Fair value estimated to be a net asset (liability) | 0 | 14,200,000 | ||
Gain (loss) on changes in the fair value relating to the ineffective portion | 1,000,000 | 900,000 | ||
Gain (loss) on changes in the fair value relating to the ineffective portion, loss on hedging instruments | (13,300,000) | |||
Gain (loss) on changes in the fair value relating to the ineffective portion, gain on hedged items | 14,300,000 | |||
Interest Rate Swap Contract [member] | Trade and other receivable [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative assets | 0 | |||
Interest Rate Swap Contract [member] | Trade and Other Payable [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative liabilities | £ 0 | 14,200,000 | ||
Interest Rate Swap Contract [member] | Until September 2022 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Nominal amount | $ | $ 500,000,000 | |||
Interest Rate Swap Contract [member] | Fixed interest rate [member] | Until September 2022 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative interest rates | 3.63% | 3.63% | ||
Interest Rate Swap Contract [member] | Fixed interest rate [member] | Until November 2021 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative interest rates | 4.75% | 4.75% | ||
Interest Rate Swap Contract [member] | Floating interest rate [member] | Until September 2022 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative interest rates, LIBOR adjustment | 1.52% | 1.52% | ||
Interest Rate Swap Contract [member] | Floating interest rate [member] | Until November 2021 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative interest rates, LIBOR adjustment | 2.34% | 2.34% | ||
Contracts due in March 2025 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Receipts | € | € 500 | |||
Payments | £ 444,100,000 | |||
Derivatives in designated hedge relationships [member] | Foreign Exchange Contracts [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Fair value estimated to be a net asset (liability) | (21,200,000) | 8,400,000 | ||
Derivatives in designated hedge relationships [member] | Foreign Exchange Contracts [member] | Trade and other receivable [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative assets | 0 | 8,400,000 | ||
Derivatives in designated hedge relationships [member] | Foreign Exchange Contracts [member] | Trade and Other Payable [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative liabilities | 21,200,000 | 0 | ||
Derivatives not designated as hedges [member] | Foreign Exchange Contracts [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Fair value estimated to be a net asset (liability) | (100,000) | (1,300,000) | ||
Nominal amount | £ 151,700,000 | £ 296,100,000 |
Financial instruments - Analysi
Financial instruments - Analysis of Financial Assets and Liabilities (Detail) - GBP (£) £ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of detailed information about financial instruments [line items] | ||||||
Other investments | [1] | £ 498.3 | £ 666.7 | £ 1,153.5 | ||
Cash and short-term deposits | [1] | 11,305.7 | 11,065.8 | 11,851 | ||
Bank overdrafts, bonds and bank loans | [1] | (8,798) | [2] | (9,447.7) | [2] | (10,083.7) |
Bonds and bank loans | [1] | (4,047.3) | (5,634.8) | (6,250.4) | ||
Payments due to vendors (earnout agreements) (note 20) | (243.7) | [3] | (400.8) | [3] | £ (584.5) | |
Derivatives in designated hedge relationships [member] | Classification under IFRS 9 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Derivative liabilities | (14.2) | |||||
Financial instruments | (14.2) | |||||
Held at fair value through profit or loss [member] | Classification under IFRS 9 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Other investments | 255.7 | 319.6 | ||||
Derivative assets | 1.4 | 9.7 | ||||
Derivative liabilities | (22.7) | [1] | (2.6) | |||
Payments due to vendors (earnout agreements) (note 20) | [3] | (243.7) | (400.8) | |||
Liabilities in respect of put options | [3] | (204.5) | (208) | |||
Financial instruments | (213.8) | (282.1) | ||||
Held at fair value through other comprehensive income [member] | Classification under IFRS 9 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Other investments | 242.6 | 347.1 | ||||
Financial instruments | 242.6 | 347.1 | ||||
Amortised cost [member] | Classification under IFRS 9 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Cash and short-term deposits | [2] | 11,305.7 | 11,065.8 | |||
Bank overdrafts, bonds and bank loans | [2] | (8,798) | (9,447.7) | |||
Bonds and bank loans | (4,047.3) | (5,634.8) | ||||
Trade and other receivables: amounts falling due within one year | 7,530.8 | 8,545.6 | ||||
Trade and other receivables: amounts falling due after more than one year | 59.3 | 68.3 | ||||
Trade and other payables: amounts falling due within one year | (10,191.6) | (10,637.3) | ||||
Trade and other payables: amounts falling due after more than one year | (2.6) | (8.4) | ||||
Financial instruments | (4,143.7) | (6,048.5) | ||||
Carrying value [member] | Classification under IFRS 9 [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Other investments | 498.3 | 666.7 | ||||
Cash and short-term deposits | [2] | 11,305.7 | 11,065.8 | |||
Bank overdrafts, bonds and bank loans | [2] | (8,798) | (9,447.7) | |||
Bonds and bank loans | (4,047.3) | (5,634.8) | ||||
Trade and other receivables: amounts falling due within one year | 7,530.8 | 8,545.6 | ||||
Trade and other receivables: amounts falling due after more than one year | 59.3 | 68.3 | ||||
Trade and other payables: amounts falling due within one year | (10,191.6) | (10,637.3) | ||||
Trade and other payables: amounts falling due after more than one year | (2.6) | (8.4) | ||||
Derivative assets | 1.4 | 9.7 | ||||
Derivative liabilities | (22.7) | [1] | (16.8) | |||
Payments due to vendors (earnout agreements) (note 20) | [3] | (243.7) | (400.8) | |||
Liabilities in respect of put options | [3] | (204.5) | (208) | |||
Financial instruments | £ (4,114.9) | £ (5,997.7) | ||||
[1] | Figures have been restated, as described in the accounting policies. | |||||
[2] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies of the consolidated financial statements. | |||||
[3] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. |
Financial instruments - Analy_2
Financial instruments - Analysis of Financial Instruments Measured at Fair Value (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Beginning balance | [1] | £ 666.7 | £ 1,153.5 | |||
Payments due to vendors (earnout agreements) (note 20) | (243.7) | [2] | (400.8) | [2] | £ (584.5) | |
Ending balance | [1] | 498.3 | 666.7 | |||
At Fair Value [member] | Level 1 [member] | Held at fair value through profit or loss [member] | Other investments [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Beginning balance | 0.4 | |||||
Ending balance | 0.4 | |||||
At Fair Value [member] | Level 1 [member] | Held at fair value through other comprehensive income [member] | Other investments [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Beginning balance | 128.1 | |||||
Ending balance | 42.2 | 128.1 | ||||
At Fair Value [member] | Level 2 [member] | Derivatives in designated hedge relationships [member] | Derivatives Liabilities [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Derivative liabilities | (14.2) | |||||
At Fair Value [member] | Level 2 [member] | Held at fair value through profit or loss [member] | Derivatives Liabilities [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Derivative liabilities | (22.7) | [1] | (2.6) | |||
At Fair Value [member] | Level 2 [member] | Held at fair value through profit or loss [member] | Derivatives Assets [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Derivative assets | 1.4 | [1] | 1.3 | |||
At Fair Value [member] | Level 3 [member] | Liabilities in Respect of Put Options [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Beginning balance | [1] | (221.7) | ||||
At Fair Value [member] | Level 3 [member] | Held for trading [member] | Liabilities in Respect of Put Options [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Beginning balance | [1] | (208) | ||||
Losses recognised in other comprehensive income | [1] | (30.1) | 26 | |||
Exchange adjustments | [1] | 6.9 | 1.1 | |||
Additions | [1] | (34.8) | (37.4) | |||
Cancellations | [1] | 9.7 | 2.2 | |||
Transfer to disposal group classified as held for sale | [1] | 31 | ||||
Settlements | [1] | 20.8 | 21.8 | |||
Ending balance | [1] | (204.5) | (208) | |||
At Fair Value [member] | Level 3 [member] | Equity investments [member] | Other investments [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Beginning balance | 538.2 | 820.3 | ||||
Gains recognised in the income statement | 9.1 | 61.1 | ||||
Losses recognised in other comprehensive income | (55.4) | (140.6) | ||||
Additions | 18.2 | 35 | ||||
Disposals | (53.4) | (237.3) | ||||
Reclassifications from other investments to interests in associates | (0.3) | |||||
Transfer To Disposal Group Classified As Held For Sale | (0.6) | |||||
Ending balance | 456.1 | 538.2 | ||||
At Fair Value [member] | Level 3 [member] | Held at fair value through profit or loss [member] | Trade And Other Payables To Trade Suppliers [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Payments due to vendors (earnout agreements) (note 20) | (243.7) | [2] | (400.8) | |||
At Fair Value [member] | Level 3 [member] | Held at fair value through profit or loss [member] | Liabilities in Respect of Put Options [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Liabilities in respect of put options | (204.5) | [2] | (208) | |||
At Fair Value [member] | Level 3 [member] | Held at fair value through profit or loss [member] | Other investments [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Beginning balance | 255.7 | [2] | 319.2 | |||
Ending balance | [2] | 255.7 | ||||
At Fair Value [member] | Level 3 [member] | Held at fair value through other comprehensive income [member] | Other investments [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Beginning balance | 219 | |||||
Ending balance | £ 200.4 | [2] | £ 219 | |||
[1] | Figures have been restated, as described in the accounting policies. | |||||
[2] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. |
Authorised and issued share c_3
Authorised and issued share capital - Summary of Authorised and Issued Share Capital (Detail) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2019GBP (£)shares | Dec. 31, 2018GBP (£)shares | Dec. 31, 2017GBP (£)shares | Dec. 31, 2016GBP (£)shares | ||
Disclosure of classes of share capital [line items] | |||||
Issued and fully paid capital, Beginning balance | [1] | £ 133.3 | £ 133.3 | ||
Share cancellations | [1] | (47.7) | |||
Issued and fully paid capital, Ending balance | [1] | £ 132.8 | £ 133.3 | £ 133.3 | |
Ordinary shares [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Equity ordinary shares, authorised | shares | 1,750,000,000 | 1,750,000,000 | 1,750,000,000 | 1,750,000,000 | |
Nominal value of Authorised shares | £ 175 | £ 175 | £ 175 | £ 175 | |
Number of shares issued and fully paid, Beginning balance | shares | 1,332,678,227 | 1,332,511,552 | 1,331,880,730 | ||
Exercise of share options | shares | 75,625 | 166,675 | 630,822 | ||
Share cancellations | shares | (4,586,039) | ||||
Number of shares issued and fully paid, Ending balance | shares | 1,328,167,813 | 1,332,678,227 | 1,332,511,552 | ||
Issued and fully paid capital, Beginning balance | £ 133.3 | £ 133.3 | £ 133.2 | ||
Exercise of share options | 0.1 | ||||
Share cancellations | (0.5) | ||||
Issued and fully paid capital, Ending balance | £ 132.8 | £ 133.3 | £ 133.3 | ||
[1] | Figures have been restated, as described in the accounting policies. |
Authorised and issued share c_4
Authorised and issued share capital - Additional Information (Detail) £ / shares in Units, £ in Millions | 12 Months Ended | ||
Dec. 31, 2019GBP (£)sharesADRsyr£ / shares$ / ADRs | Dec. 31, 2018GBP (£)£ / shares$ / ADRsshares | Dec. 31, 2017£ / shares$ / ADRs | |
Disclosure of classes of share capital [line items] | |||
Share option granted in Life | yr | 10 | ||
WPP Share Option Plan 2015 [member] | Bottom of range [member] | |||
Disclosure of classes of share capital [line items] | |||
Threshold period for employment participation in employee stock ownership plan | 2 years | ||
WPP Worldwide Share Ownership Program [member] | |||
Disclosure of classes of share capital [line items] | |||
Vesting period | 3 years | ||
WPP Worldwide Share Ownership Program [member] | Bottom of range [member] | |||
Disclosure of classes of share capital [line items] | |||
Threshold period for employment participation in employee stock ownership plan | 2 years | ||
Executive Stock Option Plan [member] | |||
Disclosure of classes of share capital [line items] | |||
Vesting period | 3 years | ||
Share option performance effect | Nine years and eight months | ||
Ordinary shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of the ordinary shares of the Company held by the ESOP | 9,219,837 | 14,820,994 | |
Market value of the ordinary shares of the Company held by the ESOP | £ | £ 98.3 | £ 125.5 | |
Number of ordinary shares held in treasury | 70,787,730 | 70,854,553 | |
Ordinary shares held in Treasury at market value | £ | £ 755 | £ 599.9 | |
Average share price | £ / shares | £ 9.39 | £ 11.56 | £ 15.86 |
Ordinary shares [member] | WPP Share Option Plan 2015 [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of ordinary shares under option | 13,413,425 | ||
Ordinary shares [member] | WPP Executive Share Option Scheme [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of ordinary shares under option | 6,741 | ||
Ordinary shares [member] | WPP Worldwide Share Ownership Program [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of ordinary shares under option | 2,757,654 | ||
American depository receipts [member] | |||
Disclosure of classes of share capital [line items] | |||
Average ADR Price | $ / ADRs | 59.93 | 77.31 | 101.86 |
American depository receipts [member] | WPP Share Option Plan 2015 [member] | |||
Disclosure of classes of share capital [line items] | |||
Unexercised options | ADRs | 1,396,745 | ||
American depository receipts [member] | WPP Worldwide Share Ownership Program [member] | |||
Disclosure of classes of share capital [line items] | |||
Unexercised options | ADRs | 388,854 | ||
Share purchase options [member] | |||
Disclosure of classes of share capital [line items] | |||
Unrecognised compensation costs related to share options | £ | £ 7.3 | £ 8.5 | |
Unrecognised compensation cost related to share options, weighted average period | 19 months | 20 months |
Authorised and issued share c_5
Authorised and issued share capital - Options Granted, WPP Executive Share Option Scheme (Detail) - Ordinary shares [member] | 12 Months Ended | |
Dec. 31, 2019shares£ / shares | Dec. 31, 2018shares | |
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 25,105,815 | 24,218,615 |
WPP Executive Share Option Scheme [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 6,741 | 6,741 |
WPP Executive Share Option Scheme [member] | Exercise price group 1 [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 3,696 | |
Exercise price per share | £ / shares | £ 8.333 | |
Exercise dates | 2015 - 2022 | |
WPP Executive Share Option Scheme [member] | Exercise price group 2 [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 3,045 | |
Exercise price per share | £ / shares | £ 10.595 | |
Exercise dates | 2016 - 2023 |
Authorised and issued share c_6
Authorised and issued share capital - Options Granted, WPP Worldwide Share Ownership Program (Detail) | 12 Months Ended | |
Dec. 31, 2019sharesADRs£ / shares$ / ADRs | Dec. 31, 2018shares | |
Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 25,105,815 | 24,218,615 |
WPP Worldwide Share Ownership Program [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 4,701,924 | 5,520,774 |
WPP Worldwide Share Ownership Program [member] | Exercise price group 1 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 82,650 | |
Exercise price per share | £ / shares | £ 6.268 | |
Exercise dates | 2014 - 2021 | |
WPP Worldwide Share Ownership Program [member] | Exercise price group 1 [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ADRs under option | ADRs | 24,550 | |
Exercise dates | 2014 - 2021 | |
Exercise price per ADR | $ / ADRs | 49.230 | |
WPP Worldwide Share Ownership Program [member] | Exercise price group 2 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 36,500 | |
Exercise price per share | £ / shares | £ 6.268 | |
Exercise dates | 2015 - 2021 | |
WPP Worldwide Share Ownership Program [member] | Exercise price group 2 [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ADRs under option | ADRs | 16,530 | |
Exercise dates | 2013 - 2020 | |
Exercise price per ADR | $ / ADRs | 56.560 | |
WPP Worldwide Share Ownership Program [member] | Exercise price group 3 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 53,150 | |
Exercise price per share | £ / shares | £ 7.113 | |
Exercise dates | 2013 - 2020 | |
WPP Worldwide Share Ownership Program [member] | Exercise price group 3 [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ADRs under option | ADRs | 39,184 | |
Exercise dates | 2015 - 2022 | |
Exercise price per ADR | $ / ADRs | 67.490 | |
WPP Worldwide Share Ownership Program [member] | Exercise price group 4 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 25,750 | |
Exercise price per share | £ / shares | £ 7.113 | |
Exercise dates | 2014 - 2020 | |
WPP Worldwide Share Ownership Program [member] | Exercise price group 4 [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ADRs under option | ADRs | 166,655 | |
Exercise dates | 2017 - 2024 | |
Exercise price per ADR | $ / ADRs | 102.670 | |
WPP Worldwide Share Ownership Program [member] | Exercise price group 5 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 194,079 | |
Exercise price per share | £ / shares | £ 8.458 | |
Exercise dates | 2015 - 2022 | |
WPP Worldwide Share Ownership Program [member] | Exercise price group 5 [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ADRs under option | ADRs | 141,935 | |
Exercise dates | 2016 - 2023 | |
Exercise price per ADR | $ / ADRs | 110.760 | |
WPP Worldwide Share Ownership Program [member] | Exercise price group 6 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 43,000 | |
Exercise price per share | £ / shares | £ 13.145 | |
Exercise dates | 2017 - 2021 | |
WPP Worldwide Share Ownership Program [member] | Exercise price group 7 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 1,739,050 | |
Exercise price per share | £ / shares | £ 13.145 | |
Exercise dates | 2017 - 2024 | |
WPP Worldwide Share Ownership Program [member] | Exercise price group 8 [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 4,375 | |
Exercise price per share | £ / shares | £ 13.145 | |
Exercise dates | 2018 - 2024 | |
WPP Worldwide Share Ownership Program [member] | Exercise price group 9 [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 564,975 | |
Exercise price per share | £ / shares | £ 13.505 | |
Exercise dates | 2016 - 2023 | |
WPP Worldwide Share Ownership Program [member] | Exercise price group 10 [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 14,125 | |
Exercise price per share | £ / shares | £ 13.505 | |
Exercise dates | 2017 - 2023 |
Authorised and issued share c_7
Authorised and issued share capital - Options Granted, WPP Share Option Plan 2015 (Detail) | 12 Months Ended | |
Dec. 31, 2019sharesADRs£ / shares$ / ADRs | Dec. 31, 2018shares | |
Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 25,105,815 | 24,218,615 |
WPP Share Option Plan 2015 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 20,397,150 | 18,691,100 |
WPP Share Option Plan 2015 [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | ADRs | 1,396,745 | |
WPP Share Option Plan 2015 [member] | Exercise price group 1 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 18,250 | |
Exercise price per share | £ / shares | £ 8.372 | |
Exercise dates | 2021 - 2025 | |
WPP Share Option Plan 2015 [member] | Exercise price group 1 [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | ADRs | 347,660 | |
Exercise dates | 2021 - 2028 | |
Exercise price per ADR | $ / ADRs | 53.140 | |
WPP Share Option Plan 2015 [member] | Exercise price group 2 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 3,406,900 | |
Exercise price per share | £ / shares | £ 8.372 | |
Exercise dates | 2021 - 2028 | |
WPP Share Option Plan 2015 [member] | Exercise price group 2 [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | ADRs | 347,105 | |
Exercise dates | 2022 - 2029 | |
Exercise price per ADR | $ / ADRs | 62.590 | |
WPP Share Option Plan 2015 [member] | Exercise price group 3 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 15,500 | |
Exercise price per share | £ / shares | £ 9.600 | |
Exercise dates | 2022 - 2026 | |
WPP Share Option Plan 2015 [member] | Exercise price group 3 [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | ADRs | 276,790 | |
Exercise dates | 2020 - 2027 | |
Exercise price per ADR | $ / ADRs | 88.260 | |
WPP Share Option Plan 2015 [member] | Exercise price group 4 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 2,863,975 | |
Exercise price per share | £ / shares | £ 9.600 | |
Exercise dates | 2022 - 2029 | |
WPP Share Option Plan 2015 [member] | Exercise price group 4 [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | ADRs | 236,265 | |
Exercise dates | 2020 - 2026 | |
Exercise price per ADR | $ / ADRs | 105.490 | |
WPP Share Option Plan 2015 [member] | Exercise price group 5 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 19,250 | |
Exercise price per share | £ / shares | £ 13.085 | |
Exercise dates | 2020 - 2024 | |
WPP Share Option Plan 2015 [member] | Exercise price group 5 [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | ADRs | 188,925 | |
Exercise dates | 2018 - 2025 | |
Exercise price per ADR | $ / ADRs | 115.940 | |
WPP Share Option Plan 2015 [member] | Exercise price group 6 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 2,785,100 | |
Exercise price per share | £ / shares | £ 13.085 | |
Exercise dates | 2020 - 2027 | |
WPP Share Option Plan 2015 [member] | Exercise price group 7 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 55,500 | |
Exercise price per share | £ / shares | £ 15.150 | |
Exercise dates | 2018 - 2022 | |
WPP Share Option Plan 2015 [member] | Exercise price group 8 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 1,952,200 | |
Exercise price per share | £ / shares | £ 15.150 | |
Exercise dates | 2018 - 2025 | |
WPP Share Option Plan 2015 [member] | Exercise price group 9 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 5,375 | |
Exercise price per share | £ / shares | £ 15.150 | |
Exercise dates | 2019 - 2025 | |
WPP Share Option Plan 2015 [member] | Exercise price group 10 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 12,375 | |
Exercise price per share | £ / shares | £ 17.055 | |
Exercise dates | 2019 - 2023 | |
WPP Share Option Plan 2015 [member] | Exercise price group 11 [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option | 2,279,000 | |
Exercise price per share | £ / shares | £ 17.055 | |
Exercise dates | 2019 - 2026 |
Authorised and issued share c_8
Authorised and issued share capital - Movements and Weighted-average Exercise Price for Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2019shares£ / shares$ / ADRs | Dec. 31, 2018shares£ / shares$ / ADRs | Dec. 31, 2017shares | |
American depository receipts [member] | WPP Worldwide Share Ownership Program [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Weighted-average exercise price for options, 1 January | $ / ADRs | 95.453 | ||
Weighted-average exercise price for options, Exercised | $ / ADRs | 47.388 | ||
Weighted-average exercise price for options, Lapsed | $ / ADRs | 91.622 | ||
Weighted-average exercise price for options, Outstanding 31 December | $ / ADRs | 96.744 | 95.453 | |
Weighted-average exercise price for options, Exercisable | $ / ADRs | 96.744 | ||
American depository receipts [member] | WPP Share Option Plan 2015 [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Weighted-average exercise price for options, 1 January | $ / ADRs | 84.893 | ||
Weighted-average exercise price for options, Granted | $ / ADRs | 62.590 | ||
Weighted-average exercise price for options, Exercised | $ / ADRs | 53.140 | ||
Weighted-average exercise price for options, Lapsed | $ / ADRs | 82.290 | ||
Weighted-average exercise price for options, Outstanding 31 December | $ / ADRs | 79.798 | 84.893 | |
Weighted-average exercise price for options, Exercisable | $ / ADRs | 115.940 | ||
Ordinary shares [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Options granted, Beginning balance | 24,218,615 | ||
Options granted, Granted | 4,615,000 | ||
Exercise of share options | (75,625) | (166,675) | (630,822) |
Options granted, Lapsed | (3,652,175) | ||
Options granted, Ending balance | 25,105,815 | 24,218,615 | |
Options granted, Exercisable | 9,957,740 | ||
Ordinary shares [member] | WPP Executive Share Option Scheme [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Options granted, Beginning balance | 6,741 | ||
Options granted, Ending balance | 6,741 | 6,741 | |
Options granted, Exercisable | 6,741 | ||
Weighted-average exercise price for options, 1 January | £ / shares | £ 9.355 | ||
Weighted-average exercise price for options, Outstanding 31 December | £ / shares | 9.355 | £ 9.355 | |
Weighted-average exercise price for options, Exercisable | £ / shares | £ 9.355 | ||
Ordinary shares [member] | WPP Worldwide Share Ownership Program [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Options granted, Beginning balance | 5,520,774 | ||
Exercise of share options | (71,475) | ||
Options granted, Lapsed | (747,375) | ||
Options granted, Ending balance | 4,701,924 | 5,520,774 | |
Options granted, Exercisable | 4,701,924 | ||
Weighted-average exercise price for options, 1 January | £ / shares | £ 12.290 | ||
Weighted-average exercise price for options, Exercised | £ / shares | 6.888 | ||
Weighted-average exercise price for options, Lapsed | £ / shares | 12.027 | ||
Weighted-average exercise price for options, Outstanding 31 December | £ / shares | 12.421 | £ 12.290 | |
Weighted-average exercise price for options, Exercisable | £ / shares | £ 12.421 | ||
Ordinary shares [member] | WPP Share Option Plan 2015 [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Options granted, Beginning balance | 18,691,100 | ||
Options granted, Granted | 4,615,000 | ||
Exercise of share options | (4,150) | ||
Options granted, Lapsed | (2,904,800) | ||
Options granted, Ending balance | 20,397,150 | 18,691,100 | |
Options granted, Exercisable | 5,249,075 | ||
Weighted-average exercise price for options, 1 January | £ / shares | £ 12.753 | ||
Weighted-average exercise price for options, Granted | £ / shares | 9.600 | ||
Weighted-average exercise price for options, Exercised | £ / shares | 8.372 | ||
Weighted-average exercise price for options, Lapsed | £ / shares | 12.405 | ||
Weighted-average exercise price for options, Outstanding 31 December | £ / shares | 12.121 | £ 12.753 | |
Weighted-average exercise price for options, Exercisable | £ / shares | £ 16.164 |
Authorised and issued share c_9
Authorised and issued share capital - Range of Exercise Prices of Options (Detail) - 12 months ended Dec. 31, 2019 | USD ($) | £ / shares |
Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Weighted average contractual life (Months) | 90 months | |
American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Weighted average contractual life (Months) | 89 months | |
Bottom of range [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price | £ / shares | £ 6.268 | |
Bottom of range [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price | $ | $ 49.230 | |
Top of range [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price | £ / shares | 17.055 | |
Top of range [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price | $ | 115.940 | |
Weighted average [member] | Ordinary shares [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price | £ / shares | £ 12.171 | |
Weighted average [member] | American depository receipts [member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price | $ | $ 83.488 |
Authorised and issued share _10
Authorised and issued share capital - Weighted Average Fair Value of Options Granted and Weighted Average Assumptions (Detail) | 12 Months Ended | |||||
Dec. 31, 2019GBP (£) | Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Weighted average assumptions: | ||||||
Expected life (months) | 48 months | 48 months | 48 months | |||
Expected volatility | 24.00% | 24.00% | 17.00% | |||
Dividend yield | 3.80% | 3.50% | 2.90% | |||
United Kingdom [member] | ||||||
Weighted average assumptions: | ||||||
Risk-free interest rate | 0.57% | 0.78% | 0.57% | |||
United Kingdom [member] | Ordinary shares [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Fair value of options | £ | £ 1.17 | £ 1.07 | £ 1.12 | |||
United States [member] | ||||||
Weighted average assumptions: | ||||||
Risk-free interest rate | 1.61% | 2.74% | 2.05% | |||
United States [member] | American depository receipts [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Fair value of options | $ | $ 8.49 | $ 8.09 | $ 9.40 |
Other reserves - Summary of Oth
Other reserves - Summary of Other Reserves (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of reserves within equity [line items] | ||||
Beginning balance | [1] | £ 962.4 | £ 1,119.1 | |
Exchange adjustments recycled to the income statement on disposal of discontinued operations | [1] | (284) | ||
Share cancellations | [1] | (47.7) | ||
Exchange adjustments on foreign currency net investments | [1] | (625.1) | 284 | £ (659.8) |
Gain (loss) on revaluation of available for sale investments | [1] | 32.1 | ||
Recognition and remeasurement of financial instruments | [1] | 23.7 | (13.9) | (20.4) |
Share purchases – close period commitments | [1],[2] | (252.3) | ||
Ending balance | [1] | (169.9) | 962.4 | 1,119.1 |
Capital redemption reserve [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Beginning balance | 2.7 | 2.7 | 2.7 | |
Share cancellations | 0.5 | |||
Ending balance | 3.2 | 2.7 | 2.7 | |
Equity reserve [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Beginning balance | [3] | (236.4) | (212.1) | (203.4) |
Recognition and remeasurement of financial instruments | [3] | 10.6 | (24.3) | (8.7) |
Share purchases – close period commitments | [3] | (252.3) | ||
Ending balance | [3] | (478.1) | (236.4) | (212.1) |
Revaluation reserve [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Beginning balance | 303.4 | 271.3 | ||
Gain (loss) on revaluation of available for sale investments | 32.1 | |||
Accounting policy change (IFRS 9) | [1] | (303.4) | ||
Ending balance | 303.4 | |||
Translation reserve [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Beginning balance | [1] | 1,196.1 | 1,025.1 | 1,665.2 |
Exchange adjustments recycled to the income statement on disposal of discontinued operations | [1] | (284) | ||
Exchange adjustments on foreign currency net investments | [1] | (607.1) | 275 | (640.1) |
Accounting policy change (IFRS 9) | [1] | (104) | ||
Ending balance | [1] | 305 | 1,196.1 | 1,025.1 |
Other reserves [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Beginning balance | 962.4 | 1,119.1 | 1,735.8 | |
Exchange adjustments recycled to the income statement on disposal of discontinued operations | [1] | (284) | ||
Share cancellations | [1] | 0.5 | ||
Exchange adjustments on foreign currency net investments | [1] | (607.1) | 275 | (640.1) |
Gain (loss) on revaluation of available for sale investments | [1] | 32.1 | ||
Accounting policy change (IFRS 9) | [1] | (407.4) | ||
Recognition and remeasurement of financial instruments | [1] | 10.6 | (24.3) | (8.7) |
Share purchases – close period commitments | [1],[2] | (252.3) | ||
Ending balance | £ (169.9) | £ 962.4 | £ 1,119.1 | |
[1] | Figures have been restated, as described in the accounting policies. | |||
[2] | During 2019, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 2 January 2020 and ending on 27 February 2020, in accordance with UK listing rules. The commitment resulting from this agreement constitutes a liability at 31 December 2019, which is included in Trade and other payables: amounts falling due within one year and has been recognised as a movement in equity. | |||
[3] | Figures have been restated to be in accordance with IAS 39 Financial Instruments: Recognition and Measurement, as described in the accounting policies. |
Acquisitions - Book Values of I
Acquisitions - Book Values of Identifiable Assets and Liabilities Acquired and Their Fair Value (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Book value [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Intangible assets | £ 0.8 | |
Property, plant and equipment | £ 3.1 | 5.5 |
Cash | 5 | 28.9 |
Trade receivables due within one year | 43.7 | 74.4 |
Other current assets | 20.3 | 20.1 |
Total assets | 72.1 | 129.7 |
Current liabilities | (42.8) | (76) |
Trade and other payables due after one year | (2.4) | (10.2) |
Provisions | (0.1) | |
Total liabilities | (45.2) | (86.3) |
Net assets | 26.9 | 43.4 |
Fair value adjustments [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Intangible assets | 40.3 | 79 |
Total assets | 40.3 | 79 |
Trade and other payables due after one year | (13.5) | (20.5) |
Deferred tax liabilities | (9.9) | (16.8) |
Provisions | (0.4) | (4.8) |
Total liabilities | (23.8) | (42.1) |
Net assets | 16.5 | 36.9 |
At Fair Value [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Intangible assets | 40.3 | 79.8 |
Property, plant and equipment | 3.1 | 5.5 |
Cash | 5 | 28.9 |
Trade receivables due within one year | 43.7 | 74.4 |
Other current assets | 20.3 | 20.1 |
Total assets | 112.4 | 208.7 |
Current liabilities | (42.8) | (76) |
Trade and other payables due after one year | (15.9) | (30.7) |
Deferred tax liabilities | (9.9) | (16.8) |
Provisions | (0.4) | (4.9) |
Total liabilities | (69) | (128.4) |
Net assets | 43.4 | 80.3 |
Non-controlling interests | (6.3) | (13.9) |
Fair value of equity stake in associate undertakings before acquisition of controlling interest | (3.1) | (5.7) |
Goodwill | 141.6 | 314.3 |
Consideration | 175.6 | 375 |
Consideration satisfied by: | ||
Cash | 127.4 | 213.7 |
Payments due to vendors | £ 48.2 | £ 161.3 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [abstract] | ||
Goodwill that is expected to be deductible for tax purposes | £ 65.3 | £ 63.9 |
Related party transactions - Su
Related party transactions - Summary of related party transaction outstanding (Detail) £ in Millions | Dec. 31, 2019GBP (£) |
Amounts owed by related parties | |
Amounts receivable, related party transactions | £ 175 |
Amounts owed to related parties | |
Amounts payable, related party transactions | (86.1) |
Kantar [Member] | |
Amounts owed by related parties | |
Amounts receivable, related party transactions | 87.5 |
Amounts owed to related parties | |
Amounts payable, related party transactions | (36.5) |
Other [Member] | |
Amounts owed by related parties | |
Amounts receivable, related party transactions | 87.5 |
Amounts owed to related parties | |
Amounts payable, related party transactions | £ (49.6) |
Reconciliation of operating p_3
Reconciliation of operating profit to a headline operating profit - Summary of Reconciliation of Operating Profit to Headline Operating Profit (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Statement [Line Items] | ||||||
Operating profit | [1] | £ 1,295.9 | £ 1,245.3 | [2] | £ 1,577.9 | [2] |
Goodwill impairment | [3] | 47.7 | 176.5 | [2] | 27.1 | [2] |
Gains on disposal of investments and subsidiaries | (40.4) | (237.9) | (98.7) | |||
(Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership | (0.4) | (2) | 0.3 | |||
Investment write-downs | 7.5 | 2 | 91.7 | |||
Litigation settlement | (16.8) | |||||
Gain on sale of freehold property in New York | [1] | 7.9 | ||||
Continuing Operation [Member] | ||||||
Statement [Line Items] | ||||||
Operating profit | 1,295.9 | 1,245.3 | [1],[2] | 1,577.9 | [2] | |
Amortisation and impairment of acquired intangible assets | 121.5 | 201.8 | [1],[2] | 138 | [2] | |
Goodwill impairment | 47.7 | 176.5 | [1],[2] | 27.1 | [2] | |
Gains on disposal of investments and subsidiaries | (40.4) | (237.9) | [1],[2] | (98.7) | [2] | |
(Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership | (0.4) | (2) | [1],[2] | 0.3 | [2] | |
Investment write-downs | 7.5 | 2 | [1],[2] | 91.7 | [2] | |
Litigation settlement | (16.8) | |||||
Gain on sale of freehold property in New York | (7.9) | |||||
Restructuring and transformation costs | 153.5 | 265.5 | [1],[2] | 56.8 | [2] | |
Headline operating profit | £ 1,560.6 | £ 1,651.2 | [1],[2] | £ 1,793.1 | [2] | |
[1] | Figures have been restated, as described in the accounting policies. | |||||
[2] | Prior year figures have been re-presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, as described in the accounting policies. | |||||
[3] | Figures in 2018 have been restated, as described in the accounting policies. |