Cover
Cover | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38303 |
Entity Registrant Name | WPP plc |
Entity Incorporation, State or Country Code | Y9 |
Entity Address, Address Line One | Sea Containers |
Entity Address, Address Line Two | 18 Upper Ground |
Entity Address, City or Town | London |
Entity Address, Country | GB |
Entity Address, Postal Zip Code | SE1 9GL |
Entity Common Stock, Shares Outstanding | 1,153,969,597 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Central Index Key | 0000806968 |
Amendment Flag | false |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
Business Contact | |
Entity Information [Line Items] | |
Entity Address, Address Line One | Sea Containers |
Entity Address, Address Line Two | 18 Upper Ground |
Entity Address, City or Town | London |
Entity Address, Country | GB |
Entity Address, Postal Zip Code | SE1 9GL |
Contact Personnel Name | Andrea Harris |
Country Region | 44 |
City Area Code | (0) 20 |
Local Phone Number | 7282 4600 |
Contact Personnel Email Address | andrea.harris@wpp.com |
Ordinary shares | |
Entity Information [Line Items] | |
Title of 12(b) Security | Ordinary Shares of 10p each |
Trading Symbol | WPP |
ADR | |
Entity Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares, eachrepresenting five Ordinary Shares (ADSs) |
Trading Symbol | WPP |
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte LLP |
Auditor Location | London, United Kingdom |
Auditor Firm ID | 1147 |
Consolidated Income Statement
Consolidated Income Statement - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Disclosure of Detailed information Amounts About In Discontinued Operations Included In Profit [Line Items] | |||||
Revenue | £ 12,801.1 | £ 12,002.8 | [1] | £ 13,234.1 | [1] |
Costs of services | (10,597.5) | (9,987.9) | [1] | (10,825.1) | [1] |
Gross profit | 2,203.6 | 2,014.9 | [1] | 2,409 | [1] |
General and administrative costs | (974.6) | (4,293) | [1] | (1,113.1) | [1] |
Operating profit/(loss) | 1,229 | (2,278.1) | [1] | 1,295.9 | [1] |
Share of results of associates | 23.8 | (136) | [1] | 14.7 | [1] |
Profit/(loss) before interest and taxation | 1,252.8 | (2,414.1) | [1] | 1,310.6 | [1] |
Finance income | 69.4 | 82.7 | [1] | 99 | [1] |
Finance costs | 283.6 | 312 | [1] | 359.1 | [1] |
Revaluation And Retranslation Of Financial Instruments | (87.8) | (147.2) | [1] | 163.8 | [1] |
Profit/(loss) before taxation | 950.8 | (2,790.6) | [1] | 1,214.3 | [1] |
Taxation | (230.1) | (127.1) | [1] | (287.2) | [1] |
Profit/(loss) for the year from continuing operations | 720.7 | (2,917.7) | [1] | 927.1 | [1] |
Profit for the year from discontinued operations | 0 | 16.4 | [1] | 10.8 | [1] |
Profit/(loss) for the year | 720.7 | (2,901.3) | [2] | 937.9 | [2] |
Income from continuing operations attributable to owners of parent | 637.7 | (2,971.6) | [1] | 847.9 | [1] |
Income from discontinued operations attributable to owners of parent | 0 | 6.5 | [1] | (3.8) | [1] |
Attributable to | |||||
Total Equity holders of the parent | 637.7 | (2,965.1) | [1] | 844.1 | [1] |
Continuing operations | 83 | 53.9 | [1] | 79.2 | [1] |
Discontinued operations | 0 | 9.9 | [1] | 14.6 | [1] |
Non-controlling interests | 83 | 63.8 | [1] | 93.8 | [1] |
Profit/(loss) for the year | £ 720.7 | £ (2,901.3) | [2] | £ 937.9 | [2] |
Earnings per share | |||||
Basic earnings per ordinary share from continuing and discontinued operations (in dollar per share) | £ 0.534 | £ (2.430) | £ 0.678 | ||
Diluted earnings per ordinary share from continuing and discontinued operations (sterling per share) | 0.525 | (2.430) | 0.673 | ||
Basic earnings per share from continuing operations (sterling per share) | 0.534 | (2.430) | [1] | 0.678 | [1] |
Diluted earnings per share from continuing operations (in dollar per share) | 0.525 | (2.430) | [1] | 0.673 | [1] |
Continuing and discontinued operations | |||||
Earnings per share | |||||
Basic earnings per ordinary share from continuing and discontinued operations (in dollar per share) | 0.534 | (2.425) | [1] | 0.675 | [1] |
Diluted earnings per ordinary share from continuing and discontinued operations (sterling per share) | £ 0.525 | £ (2.425) | [1] | £ 0.670 | [1] |
[1] | Figures have been restated as described in the accounting policies. | ||||
[2] | Figures have been restated as described in the accounting policies. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Statement of comprehensive income [abstract] | |||||
Profit/(loss) for the year | £ 720.7 | £ (2,901.3) | [1] | £ 937.9 | [1] |
Items that may be reclassified subsequently to profit or loss | |||||
Exchange adjustments on foreign currency net investments | (105) | 81.3 | [2] | (625.1) | [2] |
Gain on net investment hedges | 45.5 | 9.7 | [2] | 0 | [2] |
Loss on cash flow hedges | (38) | (5.9) | [2] | 0 | [2] |
Share of other comprehensive income/(loss) of associate undertakings | 13.5 | (61.5) | [2] | 0 | [2] |
Exchange adjustments recycled to the income statement on disposal of discontinued operations | 0 | (20.6) | [2] | (284) | [2] |
Items that may be reclassified subsequently to profit or loss | (84) | 3 | [2] | (909.1) | [2] |
Items that will not be reclassified subsequently to profit or loss | |||||
Actuarial gain/(loss) on defined benefit pension plans | 14.3 | 2 | [2] | (36.6) | [2] |
Deferred tax on defined benefit pension plans | (3) | 7.4 | [2] | 6.4 | [2] |
Movements on equity investments held at fair value through other comprehensive income | (35.5) | (127.7) | [2] | (141.4) | [2] |
Items that will not be reclassified subsequently to profit or loss | (24.2) | (118.3) | [2] | (171.6) | [2] |
Other comprehensive loss for the year | (108.2) | (115.3) | [2] | (1,080.7) | [2] |
Total comprehensive income/(loss) for the year | 612.5 | (3,016.6) | [2] | (142.8) | [1] |
Equity holders of the parent: | |||||
Continuing operations | 539.8 | (3,063.9) | [2] | 167.8 | [2] |
Discontinued operations | 0 | (12.6) | [2] | (386.4) | [2] |
Total Equity holders of the parent | 539.8 | (3,076.5) | [2] | (218.6) | [2] |
Continuing operations | 72.7 | 50.5 | [2] | 61.9 | [2] |
Discontinued operations | 0 | 9.4 | [2] | 13.9 | [2] |
Total Non-controlling interests | 72.7 | 59.9 | [2] | 75.8 | [2] |
Total comprehensive income/(loss) for the year | £ 612.5 | £ (3,016.6) | [2] | £ (142.8) | [1] |
[1] | Figures have been restated as described in the accounting policies. | ||||
[2] | Figures have been restated as described in the accounting policies. |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statement - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of cash flows [abstract] | |||
Net cash inflow from operating activities | £ 2,032.8 | £ 2,054.8 | £ 1,850.5 |
Acquisitions classified as investing activities | 386.1 | 178.4 | 161.3 |
Disposals of investments and subsidiaries | 28.3 | 272.3 | 2,141 |
Investing activities | |||
Purchases of property, plant and equipment | (263.2) | (218.3) | (339.3) |
Purchases of other intangible assets (including capitalised computer software) | (29.9) | (54.4) | (54.8) |
Proceeds on disposal of property, plant and equipment | 8.7 | 11.2 | 174 |
Net cash (outflow)/inflow from investing activities | (642.2) | (167.6) | 1,759.6 |
Financing activities | |||
Repayment of lease liabilities | (320.7) | (300.1) | (249.8) |
Share option proceeds | 4.4 | 0 | 0.6 |
Cash consideration received from non-controlling interests | 39.5 | 0 | 0 |
Payments from changes in ownership interests in subsidiaries that do not result in loss of control | 135 | 80.6 | 62.7 |
Share repurchases and buybacks | (818.5) | (290.2) | (43.8) |
Proceeds from issue of bonds | 0 | 915.5 | 0 |
Repayments of borrowings, classified as financing activities | 397.1 | 282.7 | 1,713.2 |
Payments For Financing And Share Issue Costs | 0.4 | 7.1 | 6.4 |
Equity dividends paid | (314.7) | (122) | (750.5) |
Dividends paid to non-controlling interests in subsidiary undertakings | (114.5) | (83.3) | (96.2) |
Net cash outflow from financing activities | (2,057) | (250.5) | (2,922) |
Net (decrease)/increase in cash and cash equivalents | (666.4) | 1,636.7 | 688.1 |
Translation of cash and cash equivalents | (130.1) | (99.2) | (89.7) |
Cash and cash equivalents held in disposal group presented as held for sale | 0 | 0 | (66.3) |
Cash and cash equivalents excluding disposal group | 3,540.6 | 4,337.1 | 2,733.3 |
Beginning of the year | |||
Financing activities | |||
Cash and cash equivalents including cash held in disposal group at end of year | 4,337.1 | 2,799.6 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Cash and cash equivalents if different from statement of financial position | 4,337.1 | 2,799.6 | |
End of the year | |||
Financing activities | |||
Cash and cash equivalents including cash held in disposal group at end of year | 3,540.6 | 4,337.1 | 2,799.6 |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Cash and cash equivalents if different from statement of financial position | £ 3,540.6 | £ 4,337.1 | £ 2,799.6 |
Consolidated Balance Sheet
Consolidated Balance Sheet - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | [1] | Dec. 31, 2019 | [1] |
Non-current assets | |||||
Goodwill | £ 7,612.3 | £ 7,388.8 | £ 10,110.6 | ||
Other | 1,359.5 | 1,389.3 | 1,468.8 | ||
Property, plant and equipment | 896.4 | 790.9 | 876 | ||
Right-of-use assets | 1,395.1 | 1,504.5 | 1,734.5 | ||
Interests in associates and joint ventures | 412.9 | 330.7 | 813 | ||
Other investments | 318.3 | 387.3 | 498.3 | ||
Deferred tax assets | 341.5 | 212.9 | 187.9 | ||
Corporate income tax recoverable | 46.6 | 24.8 | 0 | ||
Trade and other receivables | 152.6 | 156.2 | 137.6 | ||
Non-current assets | 12,535.2 | 12,185.4 | 15,826.7 | ||
Current assets | |||||
Corporate income tax recoverable | 90.4 | 110.3 | 142.6 | ||
Trade and other receivables | 11,362.3 | 10,972.3 | 11,822.3 | ||
Cash and cash equivalents | 3,882.9 | 12,899.1 | 11,305.7 | ||
Subtotal of current assets before including assets classified as held for sale | 15,335.6 | 23,981.7 | 23,270.6 | ||
Non-current assets or disposal groups classified as held for sale | 0 | 0 | 485.3 | ||
Total of current assets after including assets classified as held for sale | 15,335.6 | 23,981.7 | 23,755.9 | ||
Current liabilities | |||||
Trade and other payables | (15,252.3) | (13,859.7) | (14,188.1) | ||
Corporate income tax payable | (386.2) | (424.4) | (595.6) | ||
Short-term lease liabilities | (279.7) | (323.8) | (302.2) | ||
Current borrowings | 567.2 | 8,619.2 | 8,798 | ||
Current liabilities other than liabilities included in disposal groups classified as held for sale | (16,485.4) | (23,227.1) | (23,883.9) | ||
Liabilities associated with assets classified as held for sale | 0 | 0 | (170.4) | ||
Total of current liabilities after including liabilitites associated with assets as held for sale | (16,485.4) | (23,227.1) | (24,054.3) | ||
Net current (liabilities)/assets | (1,149.8) | 754.6 | (298.4) | ||
Total assets less current liabilities | 11,385.4 | 12,940 | 15,528.3 | ||
Non-current liabilities | |||||
Bonds and bank loans | (4,216.8) | (4,975.5) | (4,047.3) | ||
Trade and other payables | (619.9) | (313.5) | (449.6) | ||
Corporate income tax payable | 0 | (1.3) | 0 | ||
Deferred tax liabilities | (312.5) | (304.1) | (379.8) | ||
Non-current net defined benefit liability | (136.6) | (156.7) | (159) | ||
Provisions for liabilities and charges | (268.5) | (306.3) | (247.8) | ||
Long-term lease liabilities | (1,762.1) | (1,832.5) | (1,947.5) | ||
Non-current liabilities | (7,316.4) | (7,889.9) | (7,231) | ||
Net assets | 4,069 | 5,050.1 | 8,297.3 | ||
Equity | |||||
Called-up share capital | 122.4 | 129.6 | 132.8 | ||
Share premium account | 574.7 | 570.3 | 570.3 | ||
Other reserves | (335.9) | 191.2 | (174.7) | ||
Own shares | (1,112.1) | (1,118.3) | (1,178.7) | ||
Retained earnings | 4,367.3 | 4,959.2 | 8,576.2 | ||
Equity shareholders’ funds | 3,616.4 | 4,732 | 7,925.9 | ||
Non-controlling interests | 452.6 | 318.1 | 371.4 | ||
Total equity | £ 4,069 | £ 5,050.1 | £ 8,297.3 | ||
[1] | Figures have been restated as described in the accounting policies. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - GBP (£) £ in Millions | Total | Total equity shareholder's funds | Called- up share capital | Share premium account | Other reserves | Own shares | Retained earnings | [1] | Non- controlling interests | |||||
Beginning balance (Previously stated) at Dec. 31, 2018 | £ 9,683.2 | £ 9,258.8 | £ 133.3 | £ 569.7 | £ 962.4 | £ (1,255.7) | £ 8,849.1 | £ 424.4 | ||||||
Beginning balance (Increase (decrease) due to corrections of prior period errors) at Dec. 31, 2018 | [2] | (106.3) | (106.3) | (4.8) | (101.5) | |||||||||
Beginning balance at Dec. 31, 2018 | 9,576.9 | 9,152.5 | 133.3 | 569.7 | 957.6 | (1,255.7) | 8,747.6 | 424.4 | ||||||
Ordinary shares issued | 0.6 | 0.6 | 0.6 | |||||||||||
Share cancellations | (47.7) | (47.7) | (0.5) | 0.5 | 0 | (47.7) | ||||||||
Increase (decrease) through treasury share transactions, equity | 0 | 0 | 1 | (1) | ||||||||||
Profit/(loss) for the year | [2] | 937.9 | 844.1 | 844.1 | 93.8 | |||||||||
Gains (losses) on exchange differences on translation of foreign operations, net of tax | (625.1) | (607.1) | (607.1) | (18) | ||||||||||
Share of other comprehensive income/(loss) of associate undertakings | [3] | 0 | ||||||||||||
Exchange adjustments recycled to the income statement on disposal of discontinued operations | (284) | [3] | (284) | (284) | ||||||||||
Movements on equity investments held at fair value through other comprehensive income | (141.4) | [3] | (141.4) | (141.4) | ||||||||||
Actuarial gain/(loss) on defined benefit pension plans | (36.6) | [3] | (36.6) | (36.6) | ||||||||||
Deferred tax on defined benefit pension plans | 6.4 | [3] | 6.4 | 6.4 | ||||||||||
Other comprehensive loss for the year | (1,080.7) | [3] | (1,062.7) | (891.1) | (171.6) | (18) | ||||||||
Total comprehensive income/(loss) for the year | [2] | (142.8) | (218.6) | (891.1) | 672.5 | 75.8 | ||||||||
Dividends paid | (846.7) | (750.5) | (750.5) | (96.2) | ||||||||||
Non-cash share-based incentive plans (including share options) | 71.4 | 71.4 | 71.4 | |||||||||||
Tax adjustment on share-based payments | 3.1 | 3.1 | 3.1 | |||||||||||
Net movement in own shares held by ESOP Trusts | 0 | 0 | 76 | (76) | ||||||||||
Recognition/derecognition of liabilities in respect of put options | 23.7 | 23.7 | 10.6 | 13.1 | ||||||||||
Share purchases – close period commitments | [4] | (252.3) | (252.3) | (252.3) | ||||||||||
Increase Decrease Through Acquisitions of Subsidiaries and Changes in Ownership Interests of Subsidiaries | [5] | (88.9) | (56.3) | (56.3) | (32.6) | |||||||||
Ending balance at Dec. 31, 2019 | 8,297.3 | [6] | 7,925.9 | 132.8 | 570.3 | (174.7) | (1,178.7) | 8,576.2 | 371.4 | |||||
Share cancellations | (281.2) | (281.2) | (3.2) | 3.2 | (281.2) | |||||||||
Increase (decrease) through treasury share transactions, equity | 0 | 0 | 0.6 | (0.6) | ||||||||||
Profit/(loss) for the year | [2] | (2,901.3) | (2,965.1) | (2,965.1) | 63.8 | |||||||||
Gains (losses) on exchange differences on translation of foreign operations, net of tax | 81.3 | 85.2 | 85.2 | (3.9) | ||||||||||
Gains (losses) on hedges of net investments in foreign operations, net of tax | 9.7 | 9.7 | 9.7 | |||||||||||
Gains (losses) on cash flow hedges, net of tax | (5.9) | (5.9) | (5.9) | |||||||||||
Share of other comprehensive income/(loss) of associate undertakings | (61.5) | [3] | (61.5) | (61.5) | ||||||||||
Exchange adjustments recycled to the income statement on disposal of discontinued operations | (20.6) | [3] | (20.6) | (20.6) | ||||||||||
Movements on equity investments held at fair value through other comprehensive income | (127.7) | [3] | (127.7) | (127.7) | ||||||||||
Actuarial gain/(loss) on defined benefit pension plans | 2 | [3] | 2 | 2 | ||||||||||
Deferred tax on defined benefit pension plans | 7.4 | [3] | 7.4 | 7.4 | ||||||||||
Other comprehensive loss for the year | (115.3) | [3] | (111.4) | 6.9 | (118.3) | (3.9) | ||||||||
Total comprehensive income/(loss) for the year | (3,016.6) | [3] | (3,076.5) | [2] | 6.9 | [2] | (3,083.4) | [2] | 59.9 | [2] | ||||
Dividends paid | (205.3) | (122) | (122) | (83.3) | ||||||||||
Non-cash share-based incentive plans (including share options) | 74.4 | 74.4 | 74.4 | |||||||||||
Net movement in own shares held by ESOP Trusts | (5.1) | (5.1) | 59.8 | (64.9) | ||||||||||
Recognition/derecognition of liabilities in respect of put options | 76.9 | 76.9 | 103.5 | (26.6) | ||||||||||
Share purchases – close period commitments | [4] | 252.3 | 252.3 | 252.3 | ||||||||||
Increase Decrease Through Acquisitions of Subsidiaries and Changes in Ownership Interests of Subsidiaries | [5] | (142.6) | (112.7) | (112.7) | (29.9) | |||||||||
Ending balance at Dec. 31, 2020 | 5,050.1 | [6] | 4,732 | 129.6 | 570.3 | 191.2 | (1,118.3) | 4,959.2 | 318.1 | |||||
Ordinary shares issued | 4.4 | 4.4 | 4.4 | |||||||||||
Share cancellations | (729.3) | (729.3) | (7.2) | 7.2 | (729.3) | |||||||||
Increase (decrease) through treasury share transactions, equity | 0 | 0 | 3.7 | (3.7) | ||||||||||
Profit/(loss) for the year | 720.7 | 637.7 | 637.7 | 83 | ||||||||||
Gains (losses) on exchange differences on translation of foreign operations, net of tax | (105) | (94.7) | (94.7) | (10.3) | ||||||||||
Gains (losses) on hedges of net investments in foreign operations, net of tax | 45.5 | 45.5 | 45.5 | |||||||||||
Gains (losses) on cash flow hedges, net of tax | (38) | (38) | (38) | |||||||||||
Share of other comprehensive income/(loss) of associate undertakings | 13.5 | 13.5 | 7.3 | 6.2 | ||||||||||
Exchange adjustments recycled to the income statement on disposal of discontinued operations | 0 | |||||||||||||
Movements on equity investments held at fair value through other comprehensive income | (35.5) | (35.5) | (35.5) | |||||||||||
Actuarial gain/(loss) on defined benefit pension plans | 14.3 | 14.3 | 14.3 | |||||||||||
Deferred tax on defined benefit pension plans | (3) | (3) | (3) | |||||||||||
Other comprehensive loss for the year | (108.2) | (97.9) | (79.9) | (18) | (10.3) | |||||||||
Total comprehensive income/(loss) for the year | 612.5 | 539.8 | (79.9) | 619.7 | 72.7 | |||||||||
Dividends paid | (429.2) | (314.7) | (314.7) | (114.5) | ||||||||||
Non-cash share-based incentive plans (including share options) | 99.6 | 99.6 | 99.6 | |||||||||||
Tax adjustment on share-based payments | 15.4 | 15.4 | 15.4 | |||||||||||
Net movement in own shares held by ESOP Trusts | (89.2) | (89.2) | 2.5 | (91.7) | ||||||||||
Recognition/derecognition of liabilities in respect of put options | [7] | (241.6) | (241.6) | (242.7) | 1.1 | |||||||||
Share purchases – close period commitments | [8] | (211.7) | (211.7) | (211.7) | ||||||||||
Share of other equity movements of associates | (8) | (8) | (8) | |||||||||||
Increase Decrease Through Acquisitions of Subsidiaries and Changes in Ownership Interests of Subsidiaries | [5] | (4) | (180.3) | (180.3) | 176.3 | |||||||||
Ending balance at Dec. 31, 2021 | £ 4,069 | £ 3,616.4 | £ 122.4 | £ 574.7 | £ (335.9) | £ (1,112.1) | £ 4,367.3 | £ 452.6 | ||||||
[1] | Accumulated losses on existing equity investments held at fair value through other comprehensive income are £309.1 million at 31 December 2021 (2020: £273.6 million, 2019: £145.9 million). | |||||||||||||
[2] | Figures have been restated as described in the accounting policies. | |||||||||||||
[3] | Figures have been restated as described in the accounting policies. | |||||||||||||
[4] | 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 constituted a liability at 31 December 2019 and was recognised as a movement in other reserves in the year ended 31 December 2019. As the close period ended on 27 February 2020 the movement in other reserves has been reversed in the year ended 31 December 2020. | |||||||||||||
[5] | 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. | |||||||||||||
[6] | Figures have been restated as described in the accounting policies. | |||||||||||||
[7] | During the year, the Group merged Finsbury Glover Hering and Sard Verbinnen & Co to form a leading global communications firm. As a part of this transaction, certain management acquired shares in the Company and a put option was granted which allows the equity partners to require the Group to purchase these shares. This resulted in a movement in other reserves in the year of £219.6 million. | |||||||||||||
[8] | During 2021, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 16 December 2021 and ending on 18 February 2022, in accordance with UK listing rules. The commitment resulting from this agreement constituted a liability at 31 December 2021 and was recognised as a movement in other reserves in the year ended 31 December 2021. |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Reserve of gains and losses on hedging instruments that hedge investments in equity instruments | £ 309.1 | £ 273.6 | £ 145.9 | |
Recognition and remeasurement of financial instruments | (241.6) | [1] | 76.9 | 23.7 |
Other reserves | ||||
Recognition and remeasurement of financial instruments | (242.7) | [1] | £ 103.5 | £ 10.6 |
Other reserves | Finsbury Glover Hering and Sard Verbinnen & Co | ||||
Recognition and remeasurement of financial instruments | £ 219.6 | |||
[1] | During the year, the Group merged Finsbury Glover Hering and Sard Verbinnen & Co to form a leading global communications firm. As a part of this transaction, certain management acquired shares in the Company and a put option was granted which allows the equity partners to require the Group to purchase these shares. This resulted in a movement in other reserves in the year of £219.6 million. |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Accounting policies | Accounting policies The consolidated financial statements of WPP plc and its subsidiaries (the Group) for the year ended 31 December 2021 have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) as they apply to the financial statements of the Group for the year ended 31 December 2021. 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 approved by the Board of Directors and authorized for issue on 6 April 2022. Basis of consolidation The consolidated financial statements include the results of the Company and all its subsidiary undertakings made up to the same accounting date. All intra-Group balances, transactions, income and expenses are eliminated in full on consolidation. The results of subsidiary undertakings acquired or disposed of during the period are included or excluded from the consolidated income statement from the effective date of acquisition or disposal. New IFRS accounting pronouncements In the current year, the following Standards and Interpretations became effective: – Interest Rate Benchmark Reform - Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16); – Covid-19 Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16); and – IFRIC Agenda Decision on Accounting Treatment for Configuration and Customisation Costs in a Cloud Computing Arrangement. The Group does not consider that other standards or amendments to standards adopted during the year have a significant impact on the financial statements. Impact of Interest Rate Benchmark Reform - Phase 2 The amendments issued by the IASB, Interest Rate Benchmark Reform - Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16), are mandatory and were effective from 1 January 2021. They provide relief on certain existing requirements in IFRS Standards, relating to modifications of financial instruments and lease contracts or hedging relationships triggered by a replacement of a benchmark interest rate in a contract with a new alternative benchmark rate, as a result of Interest Rate Benchmark Reform. The Group does not consider that these amendments had a significant impact on the financial statements as they provide relief for the possible effects of the uncertainty arising from interest rate benchmark reform. Impact of COVID-19-Related Rent Concessions beyond 30 June 2021 The amendment to IFRS 16, Covid-19-Related Rent Concessions beyond 30 June 2021, was issued by the IASB in March 2021 and was effective from 1 April 2021. It provides an extension to the period under which practical relief to lessees could be applied in accounting for rent concessions occurring as a direct consequence of Covid-19, as introduced in the original amendment, Covid-19-Related Concessions (Amendment to IFRS 16). There has been no material impact to our financial statements as a result of the application of this amendment. Impact of IFRIC Agenda Decision on Accounting Treatment for Configuration and Customisation Costs in a Cloud Computing Arrangement In April 2021, an IFRIC agenda decision was issued in relation to the accounting treatment for configuration and customisation costs in a cloud computing arrangement. This guidance clarified that in order for an intangible asset to be capitalised in relation to customisation and configuration costs in a software-as-a service (SaaS) arrangement, it is necessary for there to be control of the underlying software asset or for there to be a separate intangible asset which meets the definition in IAS 38 Intangible Assets. In 2020, as part of the Group's transformation plan, the Group commenced a multi-year implementation of a cloud-based ERP and human capital management tool. The Group has completed its assessment of the financial reporting impact of this agenda decision on this implementation and has changed the accounting policy in the financial statements to align with the clarified guidance within the IFRIC agenda decision. As a result, the Group has expensed all costs associated with this implementation, which amount to £62.2 million as at 31 December 2021. This balance includes costs that were previously capitalised as at 31 December 2020 of £14.0 million. At the date of authorisation of these financial statements, there were a number of standards or amendments to standards, which have not been applied in these financial statements, that were in issue but not yet effective. The Group does not consider that any of these standards or amendments to standards in issue but not yet effective will have a significant impact on the financial statements. Restatement During 2021, the Group determined that the financial statements for the prior periods contained errors relating to historic tax asset and liability adjustments that had accumulated over a number of years in the Group consolidation. As a result, previously reported corporate income tax recoverable, corporate income tax payable and tax charge were incorrect. The cumulative impact resulted in an overstatement of equity as at 31 December 2018 of £106.3 million, which has been corrected by reducing the 2019 opening retained earnings by £101.5 million and other reserves by £4.8 million. Corporate income tax recoverable has reduced by £22.8 million (2019: £22.8 million) and corporate income tax payable increased by £93.5 million (2019: £95.7 million) on the consolidated balance sheet at 31 December 2020. These changes also decreased the tax charge in the year ended 31 December 2020 by £2.2 million (2019: increase of £12.2 million). The restatement resulted in an increase in the basic and diluted earnings per share from continuing and discontinued operations of 0.2p and 0.2p, respectively, for the year ended 31 December 2020 (2019: decrease of 1.0p and 0.9p respectively). Government support In reaction to the Covid-19 pandemic, certain governments have introduced measures to assist companies. A reduction to operating costs is recorded in relation to government subsidies/schemes where these amounts will never have to be repaid. Further details of such amounts are included in note 3. In other cases, this involves the deferral of certain tax payments in order to stimulate the economy. The deferral of payments does not impact the income statement and these are charged as normal in the period they are incurred. 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 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 years; • computer equipment – 3-5 years. Interests in associates and joint ventures An associate is an entity over which the Group has significant influence. In certain circumstances, significant influence may be represented by factors other than ownership and voting rights, such as representation on the Board of Directors. The Group’s share of the profits less losses of associate undertakings net of tax, interest and non-controlling interests is included in the consolidated income statement and the Group’s share of net assets is shown within interests in associates in the consolidated balance sheet. The Group’s share of the profits less losses and net assets is based on current information produced by the undertakings, adjusted to conform with the accounting policies of the Group. The Group assesses the carrying value of its associate undertakings to determine if any impairment has occurred. Where this indicates that an investment may be impaired, the Group applies the requirements of IAS 36 in assessing the carrying amount of the investment. This process includes comparing its recoverable amount with its carrying value. The 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 is recognised as “held for sale”. The Group has classified 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, is part of a single co-ordinated plan to dispose of such a line of business or 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 loss allowances. Work in progress includes outlays incurred on behalf of clients, including production costs, and other third-party costs that have not yet been billed and are considered receivables under IFRS 15 Revenue from Contracts with Customers. Expected credit losses The Group has applied the simplified approach to measuring expected credit losses, as permitted by IFRS 9 Financial Instruments. This has been applied to trade receivables, contract assets and lease receivables. Under this approach, the Group utilises a provision matrix based on the age of the trade receivables and historical loss rates to determine the expected credit losses. The Group also considers forward-looking information. Therefore, the Group does not track changes in credit risk, but recognises a loss allowance based on the financial asset’s lifetime expected credit loss. For all other assets, the general approach has been applied and a loss allowance for 12-month expected credit losses is recognised. Under IFRS 9, the expected credit losses are measured as the difference between the asset’s gross carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. Given the short-term nature of the Group’s trade receivables, work in progress and accrued income, which are mainly due from large national or multinational companies, the Group’s assessment of expected credit losses includes provisions for specific clients and receivables where the contractual cash flow is deemed at risk. Further details on expected credit losses 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 Group 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 26 contains details of the fair values of the derivative instruments used for hedging purposes. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in profit or loss immediately, together with any changes in the fair value of the hedged items that are attributable to the hedged risk. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow or net investment hedges is recognised in other comprehensive income and deferred in equity. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. Amounts deferred in equity are recycled in profit or loss in the periods when the hedged item is recognised in profit or loss. However, when the forecast transaction that is hedged results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the asset or liability. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained in equity until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in equity is transferred to net profit or loss for the period. Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of host contracts and the host contracts are not carried at fair value with unrealised gains or losses reported in the consolidated income statement. Liabilities in respect of option agreements Option agreements that allow the Group’s equity partners to require the Group to purchase a non-controlling interest are treated as derivatives over the Group's own equity instruments and are recorded in the consolidated balance sheet initially at the present value of the redemption amount in accordance with IAS 32 Financial Instruments: Presentation and subsequently, the financial liability is measured in accordance with IFRS 9 Financial Instruments. On initial recognition, the corresponding amount is recognised against the equity reserve, which is subsequently reversed on derecognition, either through exercise or non-exercise of the option agreement. Changes in the measurement of the financial liability due to the unwinding of the discount or changes in the amount that the Group could be required to pay are recognised in profit or loss within revaluation and retranslation of financial instruments in the consolidated income statement. Derecognition of financial liabilities In accordance with IFRS 9 Financial Instruments, a financial liability of the Group is only 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. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand and short-term highly liquid investments which are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value, including bank deposits and money market funds. The Group’s overdrafts are included in cash and cash equivalents where they are repayable on demand, are components of the Group’s centralised treasury strategy employed across the Group and form an integral part of the Group’s cash management, in accordance with IAS 7 Statement of Cash Flows. Borrowing costs Finance costs of borrowing are recognised in the consolidated income statement over the term of those borrowings. Revenue recognition The Group is a leading worldwide creative transformation organisation offering national and multinational clients a comprehensive range of communications, experience, commerce and technology services. Contracts often involve multiple agencies offering different services in different countries. As such, the terms of local, regional and global contracts can vary to meet client needs and regulatory requirements. Consistent with the industry, contracts are typically short-term in nature and tend to be cancellable by either party with 90 days’ notice. The Group is generally entitled to payment for work performed to date. The Group is generally paid in arrears for its services. Invoices are typically payable within 30 to 60 days. Revenue comprises commissions and fees earned in respect of amounts billed and is stated exclusive of VAT, sales taxes and trade discounts. Pass-through costs comprise fees paid to external suppliers when they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media 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 stand-alone selling prices. Revenue is recognised when a performance obligation is satisfied, in accordance with the terms of the contractual arrangement. Typically, performance obligations are satisfied over time as services are rendered. Revenue recognised over time is based on the proportion of the level of service performed. Either an input method or an output method, depending on the particular arrangement, is used to measure progress for each performance obligation. For most fee arrangements, costs incurred are used as an objective input measure of performance. The primary input of substantially all work performed under these arrangements is labour. There is normally a direct relationship between costs incurred and the proportion of the contract performed to date. In other circumstances relevant output measures, such as the achievement of any project milestones stipulated in the contract, are used to assess proportional performance. For our retainer arrangements, we have a stand-ready obligation to perform services on an ongoing basis over the life of the contract. The scope of these arrangements is broad and generally not reconcilable to another input or output criteria. In these instances, revenue is recognised using a time-based method resulting in straight-line revenue recognition. The amount of revenue recognised depends on whether we act as an agent or as a principal. Certain arrangements with our clients are such that our responsibility is to arrange for a third party to provide a specified good or service to the client. In these cases we are acting as an agent as we do not control the relevant good or service before it is transferred to the client. When we act as an agent, the revenue recorded is the net amount retained. Costs incurred with external suppliers (such as production costs and media suppliers) are excluded from revenue and recorded as 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 production services, events and branding), the revenue recorded is the gross amount billed. Billings related to out-of-pocket costs such as travel are also recognised at the gross amount billed with a corresponding amount recorded as an expense. Further details on revenue recognition are detailed by sector below. Global Integrated Agencies Revenue is typically derived from integrated product offerings including media placements and creative services. Revenue may consist of various arrangements involving commissions, fees, incentive-based revenue or a combination of the three, as agreed upon with each client. Revenue for commissions on purchased media is typically recognised at the point in time the media is run. The Group receives volume rebates from certain suppliers for transactions entered into on behalf of clients that, based on the terms of the relevant contracts and local law, are either remitted to clients or retained by the Group. If amounts are passed on to clients they are recorded as liabilities until settled or, if retained by the Group, are recorded as revenue when earned. Variable incentive-based revenue typically comprises both quantitative and qualitative elements. Incentive compensation is estimated using the most likely amount and is included in revenue up to the amount that is highly probable not to result in a significant reversal of cumulative revenue recognised. 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 longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on enacted or substantively enacted legislation. Retirement benefit costs The Group accounts for retirement benefit costs in acc |
General information
General information | 12 Months Ended |
Dec. 31, 2021 | |
General Information and Statement of IFRS Compliance [Abstract] | |
General information | 1. General information WPP plc is a company incorporated in Jersey. The address of the registered office is 13 Castle 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, 2021 | |
General Information and Statement of IFRS Compliance [Abstract] | |
Segment information | 2. Segment information The Group is a leading worldwide creative transformation organisation offering national and multinational clients a comprehensive range of communications, experience, commerce and technology services. Substantially all of the Group’s revenue is from contracts with customers. Reportable segments The Group is organised into three reportable segments – Global Integrated Agencies, Public Relations and Specialist Agencies. IFRS 8 Operating Segments requires operating segments to be identified on the same basis as is used internally for the review of performance and allocation of resources by the Group’s Chief Executive Officer (the Chief Operating Decision Maker). Provided certain quantitative and qualitative criteria are fulfilled, IFRS 8 permits aggregation of these components into reportable segments for the purposes of disclosure in the Group’s financial statements. In assessing the Group’s reportable segments, the Directors have had regard to the similar economic characteristics of certain operating segments, their shared client bases, the similar nature of their products or services and their long-term margins, amongst other factors. During 2020, the Group announced the intention to combine Grey and AKQA into AKQA Group, to bring Geometry and GTB into VMLY&R and International Healthcare into VMLY&R and Ogilvy. As a result AKQA, Geometry, GTB and International Healthcare are now reported within Global Integrated Agencies, having previously been reported within Specialist Agencies. Prior year figures have been re-presented to reflect these changes. Reported contributions were as follows: Continuing operations – Income statement Revenue 1 Revenue less pass-through costs 2 Headline operating profit 3 £m £m £m 2021 Global Integrated Agencies 10,836.3 8,638.7 1,215.5 Public Relations 959.0 909.7 143.1 Specialist Agencies 1,005.8 848.8 134.9 12,801.1 1,493.5 2020 4 Global Integrated Agencies 10,265.5 8,194.2 1,059.9 Public Relations 892.9 854.4 141.3 Specialist Agencies 844.4 713.4 59.3 12,002.8 1,260.5 2019 4 Global Integrated Agencies 11,269.2 9,090.4 1,358.6 Public Relations 956.5 898.0 140.6 Specialist Agencies 1,008.4 858.1 61.4 13,234.1 1,560.6 Notes 1 Intersegment sales have not been separately disclosed as they are not material. 2 Revenue less pass-through costs is revenue less media and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. 3 A reconciliation from operating profit to headline operating profit is provided in note 31. 4 Prior year figures have been re-presented to reflect the changes to segments described above. Continuing operations – Other information Share-based Capital additions 1 Depreciation and amortisation 2 Goodwill Share of Interests in £m £m £m £m £m £m 2021 Global Integrated Agencies 92.3 252.7 372.8 — 22.7 115.2 Public Relations 4.8 17.9 28.1 — 1.7 8.0 Specialist Agencies 3 2.5 22.5 43.1 1.8 (0.6) 289.7 99.6 293.1 444.0 1.8 23.8 412.9 2020 4 Global Integrated Agencies 61.3 234.2 449.7 2,355.1 19.0 158.4 Public Relations 8.0 15.5 32.8 161.5 1.3 6.4 Specialist Agencies 3 5.1 22.9 59.4 306.3 (156.3) 165.9 74.4 272.6 541.9 2,822.9 (136.0) 330.7 2019 4 Global Integrated Agencies 57.2 284.5 424.6 4.8 16.8 164.6 Public Relations 4.6 17.5 31.5 — (0.3) 5.5 Specialist Agencies 3 4.2 27.8 52.2 42.9 (1.8) 642.9 66.0 329.8 508.3 47.7 14.7 813.0 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 Specialist Agencies includes the Kantar associates and amounts previously reported under the Data Investment Management segment. 4 Prior year figures have been re-presented to reflect the changes to segments described above. Contributions by geographical area were as follows: 2021 2020 2019 Continuing operations £m £m £m Revenue 1 North America 2 4,494.2 4,464.9 4,854.7 United Kingdom 1,866.9 1,637.0 1,797.1 Western Continental Europe 2,786.3 2,441.6 2,628.8 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 3,653.7 3,459.3 3,953.5 12,801.1 12,002.8 13,234.1 Revenue less pass-through costs 3 North America 2 3,849.2 3,743.4 4,034.3 United Kingdom 1,414.3 1,233.8 1,390.1 Western Continental Europe 2,225.4 2,019.4 2,176.4 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 2,908.3 2,765.4 3,245.7 Headline operating profit 4 North America 2 655.7 611.9 662.0 United Kingdom 180.9 137.7 188.5 Western Continental Europe 288.6 198.7 261.5 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 368.3 312.2 448.6 1,493.5 1,260.5 1,560.6 Notes 1 Intersegment sales have not been separately disclosed as they are not material. 2 North America includes the United States with revenue of £4,220.8 million (2020: £4,216.1 million, 2019: £4,576.5 million), revenue less pass-through costs of £3,597.4 million (2020: £3,524.8 million, 2019: £3,806.3 million) and headline operating profit of £615.2 million (2020: £563.7 million, 2019: £620.6 million). 3 Revenue less pass-through costs is revenue less media and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. 4 A reconciliation from operating profit to headline operating profit is provided in note 31. 2021 2020 Continuing operations £m £m Non-current assets 1 North America 2 5,075.4 4,962.1 United Kingdom 1,565.4 1,488.7 Western Continental Europe 2,618.8 2,745.0 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 2,933.6 2,767.1 12,193.2 11,962.9 Notes 1 Non-current assets excluding financial instruments and deferred tax. |
Costs of services and general a
Costs of services and general and administrative costs | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Costs of services and general and administrative costs | 3. Costs of services and general and administrative costs 2021 2020 2019 Continuing operations £m £m £m Costs of services 10,597.5 9,987.9 10,825.1 General and administrative costs 974.6 4,293.0 1,113.1 11,572.1 14,280.9 11,938.2 Costs of services and general and administrative costs include: 2021 2020 2019 Continuing operations £m £m £m Staff costs (note 5) 7,166.7 6,556.5 7,090.6 Establishment costs 529.0 638.5 672.9 Media pass-through costs 1,865.3 1,555.2 1,656.2 Other costs of services and general and administrative costs 1 2,011.1 5,530.7 2,518.5 11,572.1 14,280.9 11,938.2 Included within costs of services and general administrative costs are the following: 2021 2020 2019 Continuing operations £m £m £m Goodwill impairment (note 14) 1.8 2,822.9 47.7 Investment and other impairment (reversals)/charges (42.4) 296.2 7.5 Restructuring and transformation costs 145.5 80.7 153.5 Restructuring costs in relation to Covid-19 29.9 232.5 — Litigation settlement 21.3 25.6 (16.8) Gain on sale of freehold property in New York — — (7.9) Amortisation and impairment of acquired intangible assets 97.8 89.1 121.5 Amortisation of other intangible assets 19.9 35.2 21.2 Depreciation of property, plant and equipment 151.2 174.8 185.5 Depreciation of right-of-use assets 272.9 331.9 301.6 (Gains)/losses on sale of property, plant and equipment (1.3) 0.3 3.2 Losses/(gains) on disposal of investments and subsidiaries 10.6 (7.8) (40.4) Gains on remeasurement of equity interests arising from a change in scope of ownership — (0.6) (0.4) Net foreign exchange losses 4.4 5.9 6.1 Short-term lease expense 18.0 36.7 83.8 Low-value lease expense 2.3 2.3 2.9 Note 1 Other costs of services and general and administrative costs include £538.6 million (2020: £685.6 million, 2019: £731.4 million) of other pass-through costs. In 2021, operating profit includes credits totalling £19.3 million (2020: £46.3 million, 2019: £26.9 million) relating to the release of excess provisions and other balances established in respect of acquisitions completed prior to 2020. Further details of the Group’s approach to acquisition reserves, as required by IFRS 3 Business Combinations, are given in note 29. Amortisation and impairment of acquired intangible assets of £97.8 million (2020: £89.1 million, 2019: £121.5 million) includes an impairment charge in the year of £47.9 million (2020: £21.6 million, 2019: £26.5 million) in regard to certain brand names that are no longer in use, including £43.8 million for brands with an indefinite life. Investment and other impairment reversals of £42.4 million primarily relates to the partial reversal of a £255.6 million impairment taken in 2020 relating to Imagina, an associate in Spain. Losses on disposal of investments and subsidiaries of £10.6 million in 2021 includes a loss of £4.9 million on the disposal of XMKT in China, which completed in September 2021. 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. Restructuring and transformation costs of £145.5 million (2020: £80.7 million, 2019: £153.5 million) include £94.2 million in relation to the Group’s IT transformation programme. This programme will allow technology to become a competitive advantage in the market as our clients, and their clients, move to an ever-increasing digital world. It includes costs of £62.2 million (including £14.0 million that was previously capitalised at 31 December 2020) in relation to the rollout of a new ERP system in order to drive efficiency and collaboration throughout the Group. The remaining £51.3 million relates to the continuing restructuring plan, first outlined on the Investor Day in December 2018. As part of that plan, restructuring actions have been taken to right-size under-performing businesses, address high-cost severance markets and simplify operational structures. Restructuring costs in relation to Covid-19 of £29.9 million (2020: £232.5 million, 2019: £nil) primarily relate to property costs which the Group undertook in response to the Covid-19 pandemic. As management continues to assess the impact of Covid-19 on long-term working practices and the Group’s real estate portfolio, further impairments may occur in the future. We note that there are other Covid-19 related amounts, including credits, which have not been reflected on the grounds that they cannot effectively be distinguished from the day-to-day activities of the business. In 2021, the Group received £5.3 million (2020: £77.1 million, 2019: £nil) of aid from governments around the world in relation to the Covid-19 pandemic, which is included as a credit in other staff costs. Total impairment charges included in restructuring costs of £39.2 million (2020: £196.7 million) consist of £17.6 million (2020: £147.6 million) within restructuring costs in relation to Covid-19 and £21.6 million (2020: £49.1 million) within restructuring and transformation costs. These impairment charges include £19.3 million (2020: £117.0 million) in relation to right-of-use assets, £9.8 million (2020: £79.7 million) of related property, plant and equipment and £10.1 million (2020: £nil) of other intangibles, arising from the Group’s reassessment of its property requirements as a result of effective remote working practices during the Covid-19 pandemic and continued focus on campuses. There were no impairment charges included in restructuring costs in 2019. The goodwill impairment charge of £2,822.9 million in 2020 reflects the adverse impacts of Covid-19 on a number of businesses in the Group at that time. Auditors’ remuneration: 2021 2020 2019 £m £m £m Fees payable to the Company’s auditors for the audit of the Company’s annual accounts 7.1 6.4 6.5 Fees payable for the audit of the Company’s subsidiaries 24.8 22.9 28.0 Fees payable to the auditors pursuant to legislation 31.9 29.3 34.5 Audit-related services 1 0.4 0.4 0.4 Other services 2 1.4 0.7 7.8 Tax compliance services — 0.1 — Total other fees 1.8 1.2 8.2 Total fees 33.7 30.5 42.7 Notes 1 Audit-related assurance services are in respect of the review of the interim financial information. 2 Other services include audits for earnout purposes. |
Share of results of associates
Share of results of associates | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of associates [abstract] | |
Share of results of associates | 4. Share of results of associates Share of results of associates includes: 2021 2020 2019 Continuing operations £m £m £m Share of profit before interest and taxation 208.5 142.5 99.2 Share of exceptional losses (62.3) (146.1) (47.8) Share of interest and non-controlling interests (83.9) (91.4) (19.4) Share of taxation (38.5) (41.0) (17.3) 23.8 (136.0) 14.7 Share of exceptional losses of £62.3 million (2020: £146.1 million, 2019: £47.8 million) primarily comprise £38.8 million (2020: £54.3 million, 2019 £5.3 million) of amortisation and impairment of acquired intangible assets as well as restructuring and one-off transaction costs of £18.8 million (2020: £89.3 million, 2019: £20.3 million) within Kantar. |
Our people
Our people | 12 Months Ended |
Dec. 31, 2021 | |
Number and average number of employees [abstract] | |
Our people | 5. Our people Our staff numbers averaged 104,808 for the year ended 31 December 2021 against 104,163 in 2020 and 132,823 in 2019. Their geographical distribution was as follows: 2021 2020 2019 North America 21,764 21,524 25,008 United Kingdom 10,995 10,670 14,192 Western Continental Europe 21,514 21,551 26,973 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 50,535 50,418 66,650 104,808 104,163 132,823 Their reportable segment distribution was as follows: 2021 2020 1 2019 1 Global Integrated Agencies 89,701 88,406 90,582 Data Investment Management — 1,341 26,325 Public Relations 7,121 6,810 6,890 Specialist Agencies 7,986 7,606 9,026 104,808 104,163 132,823 Note 1 Prior year figures have been re-presented to reflect the changes to segments described in note 2. At the end of 2021, staff numbers were 109,382 (2020: 99,830, 2019: 106,786). Staff costs include: 2021 2020 2019 Continuing operations £m £m £m Wages and salaries 4,797.2 4,781.0 4,946.2 Cash-based incentive plans 455.2 110.7 227.6 Share-based incentive plans 99.6 74.4 66.0 Social security costs 630.1 570.9 591.7 Pension costs 177.7 171.7 169.7 Severance 41.8 68.2 42.6 Other staff costs 1 965.1 779.6 1,046.8 7,166.7 6,556.5 7,090.6 Note 1 Freelance and temporary staff costs are included in other staff costs. Compensation for key management personnel includes: 2021 2020 2019 £m £m £m Short-term employee benefits 28.0 17.9 18.3 Pensions and other post-retirement benefits 0.9 1.0 1.0 Share-based payments 14.6 10.3 10.8 43.5 29.2 30.1 |
Finance and investment income,
Finance and investment income, finance costs and revaluation and retranslation of financial instruments | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Finance and investment income, finance costs and revaluation and retranslation of financial instruments | 6. Finance and investment income, finance costs and revaluation and retranslation of financial instruments Finance and investment income includes: 2021 2020 2019 Continuing operations £m £m £m Income from equity investments 17.9 8.7 18.3 Interest income 51.5 74.0 80.7 69.4 82.7 99.0 Finance costs include: 2021 2020 2019 Continuing operations £m £m £m Net interest expense on pension plans 1.8 2.9 3.5 Interest on other long-term employee benefits 2.4 3.1 3.9 Interest expense and similar charges 1 188.5 205.0 252.0 Interest expense related to lease liabilities 90.9 101.0 99.7 283.6 312.0 359.1 Revaluation and retranslation of financial instruments include: 2021 2020 2019 Continuing operations £m £m £m Movements in fair value of treasury instruments 9.1 15.4 0.4 Premium on the early repayment of bonds (13.0) — (63.4) Revaluation of investments held at fair value through profit or loss (7.5) 8.0 9.1 Revaluation of put options over non-controlling interests (40.6) 12.3 (24.3) Revaluation of payments due to vendors (earnout agreements) (58.7) 13.4 (3.7) Retranslation of financial instruments 22.9 (196.3) 245.7 (87.8) (147.2) 163.8 Note 1 Interest expense and similar charges are payable on bank overdrafts, bonds and bank loans held at amortised cost. The majority of the Group’s long-term debt is represented by $1,063 million of US dollar bonds at an average interest rate of 4.26%, €3,600 million of Eurobonds at an average interest rate of 1.94% and £650 million of Sterling bonds at an average interest rate of 3.21%. Average borrowings under the US Dollar Revolving Credit Facilities (note 10) amounted to nil (2020: nil). Average borrowings under the Australian Dollar Revolving Credit Facilities amounted to A$52 million at an average rate of 1.89% (2020: A$151 million at an average rate of 2.06%). Average borrowings under the US Commercial Paper Programme for 2021 amounted to nil (2020: $2 million at an average interest rate of 1.66% inclusive of margin). Average borrowings under the Euro Commercial Paper Programme for 2021 amounted to nil (2020: nil). |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2021 | |
Major components of tax expense (income) [abstract] | |
Taxation | 7. Taxation In 2021, the effective tax rate on profit/(loss) before taxation was 24.2% (2020: -4.6%, 2019: 23.7%) The tax charge comprises: 2021 2020 1 2019 1 Continuing operations £m £m £m Corporation tax Current year 404.0 307.8 435.2 Prior years (41.4) (83.2) (63.4) 362.6 224.6 371.8 Deferred tax Current year (131.0) (80.2) (78.3) Prior years (1.5) (17.3) (6.3) (132.5) (97.5) (84.6) Tax charge 230.1 127.1 287.2 Note 1 Figures have been restated as described in the accounting policies. The corporation tax credit for prior years in 2021, 2020, and 2019 primarily 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/(loss) before taxation in the consolidated income statement as follows: 2021 2020 1 2019 1 Continuing operations £m £m £m Profit/(loss) before taxation 950.8 (2,790.6) 1,214.3 Tax at the corporation tax rate of 19.0% 2 180.7 (530.2) 230.7 Tax effect of share of results of associates (13.3) 16.2 (2.7) Irrecoverable withholding taxes 52.3 49.4 44.7 Items that are not deductible in determining taxable profit 29.3 67.0 53.7 Goodwill impairment 0.6 542.4 10.4 Effect of different tax rates in subsidiaries operating in other jurisdictions 81.2 92.7 77.1 Origination and reversal on unrecognised temporary differences (36.3) (29.3) (3.4) Tax losses not recognised or utilised in the year 7.4 21.1 13.2 Utilisation of tax losses not previously recognised (5.1) (1.7) (42.7) Recognition of temporary differences not previously recognised — — (24.1) Net release of prior year provisions in relation to acquired businesses (1.1) (1.7) (19.9) Other prior year adjustments (41.8) (98.8) (49.8) Impact of deferred tax rate change (23.8) — — Tax charge 230.1 127.1 287.2 Effective tax rate on profit/(loss) before tax 24.2 % (4.6) % 23.7 % Notes 1 Figures have been restated as described in the accounting policies. 2 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% (2020: 19.0%, 2019: 19.0%). Factors affecting the tax charge in future years The tax charge may be affected by the impact of acquisitions, disposals and other corporate restructurings, the resolution of open tax issues, and the ability to use brought forward tax losses. Changes in local or international tax rules, for example, increasing tax rates as a consequence of the financial support programmes implemented by governments during the Covid-19 pandemic, the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting, and changes arising from the application of existing rules or challenges by tax or competition authorities, may expose the Group to additional tax liabilities or impact the carrying value of deferred tax assets, which could affect the future tax charge. Liabilities relating to open and judgemental matters are based upon an assessment of whether the tax authorities will accept the position taken, 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, such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made. The Group does not currently consider that judgements made in assessing tax liabilities have a significant risk of resulting in any material additional charges or credits in respect of these matters, within the next financial year, beyond the amounts already provided. In the UK Budget on 3 March 2021, the Chancellor of the Exchequer announced an increase in the UK corporation tax rate from 19% to 25%, which is due to be effective from 1 April 2023. This change was enacted at the balance sheet date, and the Group has remeasured UK deferred tax balances accordingly and recognised a tax credit of £23.8 million in current period tax expense. Tax risk management We look to maintain open and transparent relationships with the tax authorities in the jurisdictions in which we operate and relevant government representatives. We maintain active engagement with a wide range of international companies and business organisations with similar issues. We engage advisors and legal counsel to obtain opinions on tax legislation and principles. We have a Tax Risk Management Strategy in place which sets out the controls established and our assessment procedures for decision making and how we monitor tax risk. We monitor proposed changes in taxation legislation and ensure these are taken into account when we consider our future business plans. Our Directors are informed by management of any significant tax law changes, the nature and status of any significant ongoing tax audits, and other developments that could materially affect the Group’s tax position. |
Ordinary dividends
Ordinary dividends | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Dividends [abstract] | |
Ordinary dividends | 8. Ordinary dividends Amounts recognised as distributions to equity holders in the year: 2021 2020 2019 2021 2020 2019 Per share Pence per share £m £m £m 2020 Final dividend 14.00 p — 37.30 p 167.7 — 466.4 2021 Interim dividend 12.50 p 10.00 p 22.70 p 147.0 122.0 284.1 26.50 p 10.00 p 60.00 p 314.7 122.0 750.5 Proposed final dividend for the year ended 31 December 2021: 2021 2020 2019 Per share Pence per share Final dividend 18.70 p 14.00 p — The payment of dividends will not have any tax consequences for the Group. Final dividends are paid in the subsequent year to which they relate. The 2019 final dividend which was due to be paid in 2020 was cancelled to protect liquidity in light of the threat from Covid-19 at that time. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share [abstract] | |
Earnings per share | 9. Earnings per share Basic EPS The calculation of basic EPS is as follows: Continuing operations 2021 2020 1 2019 1 Earnings 2 (£m) 637.7 (2,971.6) 847.9 Weighted average shares used in basic EPS calculation (m) 1,194.1 1,223.0 1,250.0 EPS 53.4p (243.0p) 67.8p Discontinued operations 2021 2020 2019 Earnings 2 (£m) — 6.5 (3.8) Weighted average shares used in basic EPS calculation (m) — 1,223.0 1,250.0 EPS — 0.5p (0.3p) Continuing and discontinued operations 2021 2020 1 2019 1 Earnings 2 (£m) 637.7 (2,965.1) 844.1 Weighted average shares used in basic EPS calculation (m) 1,194.1 1,223.0 1,250.0 EPS 53.4p (242.5p) 67.5p Notes 1 Figures have been restated as described in the accounting policies. 2 Earnings is equivalent to profit/(loss) for the year attributable to equity holders of the parent. Diluted EPS The calculation of diluted EPS is as follows: Continuing operations 2021 2020 1 2019 1 Diluted earnings (£m) 637.7 (2,971.6) 847.9 Weighted average shares used in diluted EPS calculation (m) 2 1,215.3 1,223.0 1,260.6 Diluted EPS 52.5 p (243.0 p) 67.3 p Discontinued operations 2021 2020 2019 Diluted earnings (£m) — 6.5 (3.8) Weighted average shares used in diluted EPS calculation (m) 2 — 1,223.0 1,260.6 Diluted EPS — 0.5 p (0.3 p) Continuing and discontinued operations 2021 2020 1 2019 1 Diluted earnings (£m) 637.7 (2,965.1) 844.1 Weighted average shares used in diluted EPS calculation (m) 2 1,215.3 1,223.0 1,260.6 Diluted EPS 52.5 p (242.5 p) 67.0 p Notes 1 Figures have been restated as described in the accounting policies. 2 The weighted average shares used in the basic EPS calculation for 2020 have also been used for diluted EPS due to the anti-dilutive effect of the weighted average shares calculated for the diluted EPS calculation. Diluted EPS has been calculated based on the diluted earnings amounts above. At 31 December 2021, options to purchase 7.2 million ordinary shares (2020: 14.2 million, 2019: 19.3 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: 2021 2020 2019 m m m Weighted average shares used in basic EPS calculation 1,194.1 1,223.0 1,250.0 Dilutive share options outstanding 1.3 — 0.3 Other potentially issuable shares 19.9 13.0 10.3 Weighted average shares used in diluted EPS calculation 1,215.3 1,236.0 1,260.6 At 31 December 2021 there were 1,224,459,550 (2020: 1,296,080,242, 2019: 1,328,167,813) ordinary shares in issue, including 70,489,953 treasury shares (2020: 70,748,100, 2019: 70,787,730). |
Sources of finance
Sources of finance | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
Sources of finance | 10. Sources of finance The following table summarises the equity and debt financing of the Group, and changes during the year: Shares Debt 2021 2020 2021 2020 Analysis of changes in financing £m £m £m £m Beginning of year 699.9 703.1 5,032.7 4,272.9 Ordinary shares issued 4.4 — — — Share cancellations (7.2) (3.2) — — Net (decrease)/increase in drawings on bank loans and corporate bonds — — (397.1) 632.8 Amortisation of financing costs included in debt — — 8.1 7.5 Changes in fair value due to hedging arrangements — — (2.5) (1.4) Other movements — — (0.4) (7.1) Exchange adjustments — — (199.1) 128.0 End of year 697.1 699.9 4,441.7 5,032.7 The table above excludes bank overdrafts which fall within cash and cash equivalents for the purposes of the consolidated cash flow statement. Other liabilities from financing activities including lease liabilities and derivatives used for hedging debts are disclosed in note 13 and note 26, respectively. Shares At 31 December 2021, the Company’s share base was entirely composed of ordinary equity share capital and share premium of £697.1 million (2020: £699.9 million), further details of which are disclosed in note 27. Debt US$ bonds The Group has in issue $750 million of 3.75% bonds due September 2024, $93 million of 5.125% bonds due September 2042 and $220 million of 5.625% bonds due November 2043. Eurobonds The Group has in issue €750 million of 3.0% bonds due November 2023, €500 million of 1.375% bonds due March 2025, €750 million of 2.25% bonds due September 2026, €750 million of 2.375% bonds due May 2027, €600 million of 1.625% bonds due March 2030, and €250 million of Floating Rate Notes carrying a coupon of 3m EURIBOR +0.45% due March 2022. Sterling bonds The Group has in issue £250 million of 3.750% bonds due May 2032 and £400 million of 2.875% bonds due September 2046. Revolving Credit Facility The Group has a five-year Revolving Credit Facility of $2.5 billion due March 2026, signed in November 2021. The Group’s borrowings under these facilities, which are drawn down predominantly in pounds sterling, averaged nil in 2021 (2020: nil). In May 2021, the Group’s subsidiary, WPP AUNZ, repaid in full its A$150 million Revolving Credit Facility due August 2021, and its A$270 million Revolving Credit Facility due August 2023. The Group’s borrowings under the Australian dollar facilities which were drawn down in Australian dollars and New Zealand dollars, averaged the equivalent of A$52 million in 2021 (2020: A$151 million). The Group had available undrawn committed credit facilities of £1,847.5 million at 31 December 2021 (2020: £2,023.2 million). 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. The $2.5 billion Revolving Credit Facility, due March 2026, includes terms which require the consent of the majority of the lenders if a proposed merger or consolidation of the Company would alter its legal personality or identity. Commercial paper programmes The Group operates commercial paper programmes using its Revolving Credit Facility as a backstop. The average US commercial paper outstanding in 2021 was nil (2020: $2 million). The average Euro commercial paper outstanding in 2021 was nil (2020: nil) inclusive of the effect of currency swaps. There was no US or Euro commercial paper outstanding at 31 December 2021. 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: 2021 2020 £m £m Within one year (326.8) (182.2) Between one and two years (745.4) (725.6) Between two and three years (646.5) (795.7) Between three and four years (492.8) (649.1) Between four and five years (698.0) (528.2) Over five years (2,546.3) (3,387.1) Debt financing (including interest) under the Revolving Credit Facility and in relation to unsecured loan notes (5,455.8) (6,267.9) Short-term overdrafts – within one year (342.3) (8,562.0) Future anticipated cash flows (5,798.1) (14,829.9) Effect of discounting/financing rates 1,014.1 1,235.2 Debt financing (4,784.0) (13,594.7) Analysis of fixed and floating rate debt by currency including the effect of cross-currency swaps: 2021 £m Fixed rate 1 Floating Period (months) 1 Currency $ – fixed 1,231.8 4.18 n/a 72 £ – fixed 1,094.1 2.97 n/a 155 € – fixed 1,976.0 2.04 n/a 69 – floating 210.2 n/a EURIBOR 3 Other (70.4) n/a n/a n/a 4,441.7 2020 £m Fixed rate 1 Floating Period (months) 1 Currency $ – fixed 1,585.1 4.06 n/a 70 £ – fixed 1,094.1 3.21 n/a 167 € – fixed 2,104.6 2.20 n/a 79 – floating 223.9 n/a EURIBOR 15 Other 25.0 n/a n/a n/a 5,032.7 Note 1 Weighted average. The following table is an analysis of future undiscounted anticipated cash flows in relation to the Group’s financial derivatives, which include interest rate swaps, forward contracts and other foreign exchange swaps assuming interest rates and foreign exchange rates as at 31 December: Financial liabilities Financial assets 2021 Payable Receivable Payable Receivable £m £m £m £m Within one year 185.8 173.7 581.1 582.5 Between one and two years 551.4 521.1 30.0 30.4 Between two and three years 11.6 6.0 — — Between three and four years 449.8 445.6 — — Between four and five years — — — — Over five years — — — — 1,198.6 1,146.4 611.1 612.9 Financial liabilities Financial assets 2020 Payable Receivable Payable Receivable £m £m £m £m Within one year 201.7 195.4 102.3 98.2 Between one and two years 11.6 6.2 17.8 13.6 Between two and three years 41.9 35.7 449.2 461.2 Between three and four years 11.6 6.3 — — Between four and five years 449.8 466.3 — — Over five years — — — — 716.6 709.9 569.3 573.0 |
Analysis of cash flows
Analysis of cash flows | 12 Months Ended |
Dec. 31, 2021 | |
Cash flows from (used in) operating activities [abstract] | |
Analysis of cash flows | 11. Analysis of cash flows The following tables analyse the items included within the main cash flow headings on page F-14. Net cash from operating activities: 2021 2020 1 2019 1 £m £m £m Profit/(loss) for the year 720.7 (2,901.3) 937.9 Taxation 230.1 129.3 366.0 Revaluation and retranslation of financial instruments 87.8 147.2 (154.4) Finance costs 283.6 312.3 376.4 Finance and investment income (69.4) (82.8) (102.6) Share of results of associates (23.8) 136.0 (21.2) Goodwill impairment on classification as held for sale — — 94.5 Gain on sale of discontinued operations — (10.0) (73.8) Attributable tax expense on sale of discontinued operations — 1.9 157.4 Adjustments for: Non-cash share-based incentive plans (including share options) 99.6 74.4 71.4 Depreciation of property, plant and equipment 151.2 174.8 203.2 Depreciation of right-of-use assets 272.9 331.9 317.9 Impairment charges included within restructuring costs 39.2 196.7 — Goodwill impairment 1.8 2,822.9 47.7 Amortisation and impairment of acquired intangible assets 97.8 89.1 135.6 Amortisation of other intangible assets 19.9 35.2 29.6 Investment and other impairment (reversals)/charges (42.4) 296.2 7.5 Losses/(gains) on disposal of investments and subsidiaries 10.6 (7.8) (45.1) Gains on remeasurement of equity interests arising from a change in scope of ownership — (0.6) (0.4) Gain on sale of freehold property in New York — — (7.9) (Gains)/losses on sale of property, plant and equipment (1.3) 0.3 3.2 (Increase)/decrease in trade receivables and accrued income (458.9) 585.2 159.0 Increase in trade payables and deferred income 777.8 195.0 394.7 (Increase)/decrease in other receivables (120.0) 123.3 (263.8) Increase/(decrease) in other payables – short-term 547.0 (36.6) (16.4) (Decrease)/increase in other payables – long-term (11.0) (44.3) 53.7 (Decrease)/increase in provisions (32.9) 15.6 23.1 Corporation and overseas tax paid (391.1) (371.5) (536.0) Payment on early settlement of bonds (13.0) — (63.4) Interest and similar charges paid (173.7) (173.9) (270.6) Interest paid on lease liabilities (88.4) (98.5) (105.1) Interest received 47.5 73.6 80.8 Investment income 17.8 8.7 18.3 Dividends from associates 53.4 32.5 33.3 Net cash inflow from operating activities 2,032.8 2,054.8 1,850.5 Note 1 Figures have been restated as described in the accounting policies. Acquisitions and disposals: 2021 2020 2019 £m £m £m Initial cash consideration (227.6) (32.8) (3.9) Cash and cash equivalents acquired (2.3) — — Earnout payments (57.0) (115.2) (130.2) Purchase of other investments (including associates) (99.2) (30.4) (27.2) Acquisitions (386.1) (178.4) (161.3) Proceeds on disposal of investments and subsidiaries 1 51.9 320.0 2,468.5 Cash and cash equivalents disposed (23.6) (47.7) (327.5) Disposals of investments and subsidiaries 28.3 272.3 2,141.0 Cash consideration received from non-controlling interests 39.5 — — Cash consideration for purchase of non-controlling interests (135.0) (80.6) (62.7) Cash consideration for non-controlling interests (95.5) (80.6) (62.7) Net acquisition payments and disposal proceeds (453.3) 13.3 1,917.0 Note 1 Proceeds on disposal of investments and subsidiaries includes return of capital from investments in associates. Share repurchases and buybacks: 2021 2020 2019 £m £m £m Purchase of own shares by ESOP Trusts (89.2) (5.1) — Shares purchased into treasury (729.3) (285.1) (43.8) Net cash outflow (818.5) (290.2) (43.8) Proceeds from issue of bonds: 2021 2020 2019 £m £m £m Proceeds from issue of €750 million bonds — 665.5 — Proceeds from issue of £250 million bonds — 250.0 — Net cash inflow — 915.5 — Repayment of borrowings: 2021 2020 2019 £m £m £m Decrease in drawings on bank loans (36.3) (59.6) (70.6) Repayment of $500 million bonds (360.8) — — Repayment of €250 million bonds — (223.1) — Repayment of €600 million bonds — — (512.7) Repayment of $812 million bonds — — (618.8) Partial repayment of $272 million bonds — — (135.4) Partial repayment of $450 million bonds — — (176.2) Repayment of £200 million bonds — — (199.5) Net cash outflow (397.1) (282.7) (1,713.2) Cash and cash equivalents: 2021 2020 2019 £m £m £m Cash at bank and in hand 2,776.6 10,075.0 10,442.1 Short-term bank deposits 1,106.3 2,824.1 863.6 Overdrafts 1 (342.3) (8,562.0) (8,572.4) 3,540.6 4,337.1 2,733.3 Note 1 Bank overdrafts are included in cash and cash equivalents because they form an integral part of the Group’s cash management. The Group considers that the carrying amount of cash and cash equivalents approximates their fair value. |
Assets held for sale and discon
Assets held for sale and discontinued operations | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Assets Held For Sale And Discontinued Operations [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 40% equity stakes post-transaction which are treated as associates. 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. In 2020, the remaining stages of the transaction completed with total consideration of £236.1 million after tax and disposal costs. This generated a pre-tax gain of £10.0 million and a tax charge of £1.9 million. Under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations where certain conditions are met, an asset or disposal group that has been put up for sale should be recognised as “held for sale”. The criterion 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 is classified as a discontinued operation in 2019 and 2020 under IFRS 5, as it forms a separate major line of business and there was a single co-ordinated plan to dispose of it. Results of the discontinued operations, which have been included in profit for the year, were as follows: 2020 2019 £m £m Revenue 107.4 2,387.5 Costs of services (92.3) (1,951.5) Gross profit 15.1 436.0 General and administrative costs (4.4) (151.7) Operating profit 10.7 284.3 Share of results of associates — 6.5 Profit before interest and taxation 10.7 290.8 Finance and investment income 0.1 3.6 Finance costs (0.3) (17.3) Revaluation and retranslation of financial instruments — (9.4) Profit before taxation 10.5 267.7 Attributable tax expense (2.2) (78.8) Profit after taxation 8.3 188.9 Goodwill impairment on classification as held for sale 1 — (94.5) Gain on sale of discontinued operations 10.0 73.8 Attributable tax expense on sale of discontinued operations (1.9) (157.4) Net gain attributable to discontinued operations 16.4 10.8 Attributable to Equity holders of the parent 6.5 (3.8) Non-controlling interests 2; 9.9 14.6 16.4 10.8 Notes 1 In 2019, goodwill impairment of £94.5 million arose from the assessment of fair value less costs to sell under IFRS 5. 2 In 2020, non-controlling interests includes £9.3 million recognised on the disposal of Kantar within WPP Scangroup, a 56% owned subsidiary of the Group. For the year ended 31 December 2020, the Kantar group contributed £30.8 million (2019: £322.9 million) to the Group’s net operating cash flows, paid £0.9 million (2019: £53.2 million) in respect of investing activities and paid £0.7 million (2019: £27.2 million) in respect of financing activities. The gain on sale of discontinued operations disposed by 31 December 2020 is calculated as follows: 2020 2019 £m £m Intangible assets (including goodwill) 162.5 2,410.0 Property, plant and equipment 15.1 115.7 Right-of-use assets 27.2 103.5 Interests in associates and joint ventures 4.6 92.3 Other investments — 11.5 Deferred tax assets 6.1 44.1 Corporate income tax recoverable 16.9 49.8 Trade and other receivables 170.3 748.8 Cash and cash equivalents 32.2 324.9 Trade and other payables (141.6) (839.8) Corporate income tax payable (5.6) (48.2) Lease liabilities (23.2) (106.3) Deferred tax liabilities (1.3) (98.6) Provisions for post-employment benefits (7.9) (26.7) Provisions for liabilities and charges (0.6) (22.4) Net assets 254.7 2,758.6 Non-controlling interests (6.1) (19.1) Net assets excluding non-controlling interests 248.6 2,739.5 Consideration received in cash and cash equivalents 240.9 2,352.1 Re-investment in equity stake 1 — 231.7 Transaction costs (4.5) (56.1) Deferred consideration 2 1.6 1.6 Total consideration received 238.0 2,529.3 Loss on sale before exchange adjustments (10.6) (210.2) Exchange adjustments recycled to the income statement 20.6 284.0 Gain on sale of discontinued operation 10.0 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 in 2019 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 four 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases Disclosure [Abstract] | |
Leases | 13. Leases The movements in 2021 and 2020 were as follows: Right-of-use assets Land and buildings 1 £m Plant and Total 1 January 2020 1,706.1 28.4 1,734.5 Additions 233.0 35.0 268.0 Disposals (40.5) (1.9) (42.4) Depreciation of right-of-use assets (312.1) (19.8) (331.9) Impairment charges included within restructuring costs (117.0) — (117.0) Other write-downs (8.1) — (8.1) Exchange adjustments 0.4 1.0 1.4 31 December 2020 1,461.8 42.7 1,504.5 Additions 264.6 17.2 281.8 Transfers to net investment in subleases (26.9) — (26.9) Disposals (53.6) (1.3) (54.9) Depreciation of right-of-use assets (254.7) (18.2) (272.9) Impairment charges included within restructuring costs (18.9) (0.4) (19.3) Other reversals 6.8 — 6.8 Exchange adjustments (22.1) (1.9) (24.0) 31 December 2021 1,357.0 38.1 1,395.1 Note 1 For the years ended 31 December 2021 and 2020, the Company has £38.5 million and £67.9 million of right-of-use assets that are classified as investment property, respectively. Lease liabilities Land and Plant and Total 1 January 2020 2,223.4 26.3 2,249.7 Additions 226.9 37.1 264.0 Interest expense related to lease liabilities 96.8 1.7 98.5 Disposals (49.4) (1.7) (51.1) Repayment of lease liabilities (including interest) (379.1) (19.5) (398.6) Exchange adjustments (6.8) 0.6 (6.2) 31 December 2020 2,111.8 44.5 2,156.3 Additions 277.0 16.1 293.1 Interest expense related to lease liabilities 89.7 1.2 90.9 Disposals (64.2) (1.9) (66.1) Repayment of lease liabilities (including interest) (390.6) (18.5) (409.1) Exchange adjustments (21.2) (2.1) (23.3) 31 December 2021 2,002.5 39.3 2,041.8 The following table shows the breakdown of the lease expense between amounts charged to operating profit and amounts charged to finance costs: 2021 2020 Continuing operations £m £m Depreciation of right-of-use assets: Land and buildings (254.7) (312.1) Plant and machinery (18.2) (19.8) Impairment charges (12.5) (125.1) Short-term lease expense (18.0) (36.7) Low-value lease expense (2.3) (2.3) Variable lease expense (56.2) (65.4) Sublease income 17.3 25.3 Charge to operating profit (344.6) (536.1) Interest expense related to lease liabilities (90.9) (101.0) Charge to profit before taxation for leases (435.5) (637.1) Variable lease payments primarily include real estate taxes and insurance costs. The maturity of lease liabilities at 31 December 2021 and 2020 were as follows: 2021 2020 £m £m Within one year 369.7 412.3 Between one and two years 321.9 357.7 Between two and three years 273.7 309.0 Between three and four years 229.1 255.3 Between four and five years 199.1 209.9 Over five years 1,227.1 1,238.9 2,620.6 2,783.1 Effect of discounting (578.8) (626.8) Lease liability at end of year 2,041.8 2,156.3 Short-term lease liability 279.7 323.8 Long-term lease liability 1,762.1 1,832.5 The total committed future cash flows for leases not yet commenced at 31 December 2021 is £534.9 million. The Group does not face a significant liquidity risk with regard to its lease liabilities. Refer to note 25 for management of liquidity risk. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Intangible Assets And Goodwill [Abstract] | |
Intangible Assets | 14. Intangible Assets Goodwill The movements in 2021 and 2020 were as follows: £m Cost 1 January 2020 10,888.6 Additions 1 37.3 Disposals (24.6) Exchange adjustments (94.0) 31 December 2020 10,807.3 Additions 1 335.8 Disposals (5.4) Exchange adjustments (146.7) 31 December 2021 10,991.0 Accumulated impairment losses and write-downs 1 January 2020 778.0 Impairment losses for the year 2,822.9 Exchange adjustments (182.4) 31 December 2020 3,418.5 Impairment losses for the year 1.8 Exchange adjustments (41.6) 31 December 2021 3,378.7 Net book value 31 December 2021 7,612.3 31 December 2020 7,388.8 1 January 2020 10,110.6 Note 1 Additions represent goodwill arising on the acquisition of subsidiary undertakings including the effect of any revisions to fair value adjustments that had been determined provisionally at the immediately preceding balance sheet date, as permitted by IFRS 3 Business Combinations. The effect of such revisions was not material in either year presented. Other intangible assets The movements in 2021 and 2020 were as follows: Brands Acquired Other Total £m £m £m £m Cost 1 January 2020 1,091.4 1,602.9 312.3 3,006.6 Additions — — 54.3 54.3 Disposals — (21.5) (74.8) (96.3) New acquisitions — 4.8 0.2 5.0 Other movements 1 — 5.7 13.1 18.8 Exchange adjustments (19.5) (22.2) (4.8) (46.5) 31 December 2020 1,071.9 1,569.7 300.3 2,941.9 Additions — — 29.9 29.9 Disposals — (7.3) (44.6) (51.9) New acquisitions — 97.7 — 97.7 Other movements 1 — — 3.9 3.9 Exchange adjustments (4.6) (15.7) (1.4) (21.7) 31 December 2021 1,067.3 1,644.4 288.1 2,999.8 Amortisation and impairment 1 January 2020 13.2 1,279.3 245.3 1,537.8 Charge for the year — 88.5 35.2 123.7 Disposals — (17.4) (72.0) (89.4) Other movements — 5.7 5.4 11.1 Exchange adjustments (0.4) (26.9) (3.3) (30.6) 31 December 2020 12.8 1,329.2 210.6 1,552.6 Charge for the year 43.8 53.5 19.9 117.2 Impairment charges included within restructuring costs — — 10.1 10.1 Disposals — (3.5) (24.5) (28.0) Other movements — — (1.5) (1.5) Exchange adjustments 0.2 (8.2) (2.1) (10.1) 31 December 2021 56.8 1,371.0 212.5 1,640.3 Net book value 31 December 2021 1,010.5 273.4 75.6 1,359.5 31 December 2020 1,059.1 240.5 89.7 1,389.3 1 January 2020 1,078.2 323.6 67.0 1,468.8 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 (CGUs) with significant goodwill and brands with an indefinite useful life as at 31 December are: Goodwill Brands with an 2021 2020 2021 2020 £m £m £m £m GroupM 2,982.5 2,953.7 — — Wunderman Thompson 997.3 949.4 405.1 403.9 VMLY&R 675.6 411.9 189.8 193.4 Ogilvy 784.4 782.0 205.0 206.5 Burson Cohn & Wolfe 585.7 591.1 128.4 128.8 AKQA Group 570.2 585.2 — — Finsbury Glover Hering + Sard Verbinnen & Co 393.2 220.7 — — Other 623.4 894.8 82.2 126.5 7,612.3 7,388.8 1,010.5 1,059.1 Other goodwill represents goodwill on a large number of CGUs, none of which is individually significant in comparison to the total carrying value of goodwill. Separately identifiable brands with an indefinite useful life are carried at historical cost in accordance with the Group’s accounting policy for intangible assets. The carrying values of the other brands with an indefinite useful life are not individually significant in comparison with the total carrying value of brands with an indefinite useful life. Acquired intangible assets at net book value at 31 December 2021 include brand names of £137.4 million (2020: £172.8 million), customer-related intangibles of £110.4 million (2020: £67.1 million), and other assets (including proprietary tools) of £25.6 million (2020: £0.6 million). The total amortisation and impairment of acquired intangible assets of £97.8 million (2020: £89.1 million) includes an impairment charge in the year of £47.9 million (2020: £21.6 million) in regards to certain brand names that are no longer in use, including £43.8 million for brands with an indefinite useful life. £45.1 million of the impairment charge relates to the Global Integrated Agencies segment, and £2.8 million relates to the Specialist Agencies segment. In addition, the total amortisation and impairment of acquired intangible assets includes £0.5 million (2020: £0.6 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. A goodwill impairment charge of £1.8 million relating to Specialist Agencies was recognised during the year due 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. 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 the significant number of CGUs, the impairment test was performed in two steps. In the first step, the recoverable amount was calculated for each CGU using the latest available forecasts for 2021 and/or 2022, nil growth rate thereafter (2020: nil) and a conservative pre-tax discount rate of 13.5% (2020: 13.5%). The pre-tax discount rate of 13.5% was above the rate calculated for the global networks of 12.5% (2020: 12.5%). For smaller CGUs that operate primarily in a particular region subject to higher risk, the higher of 13.5% or 100 basis points above the regional discount rate was used in the first step. The recoverable amount was then compared to the carrying amount, which includes goodwill, intangible assets and other assets. CGUs where the recoverable amount exceeded the carrying amount were not considered to be impaired. Those CGUs where the recoverable amount did not exceed the carrying amount were then further reviewed in the second step. In the second step, these CGUs were retested for impairment using more refined assumptions. This included using a CGU specific pre-tax discount rate and management forecasts for a projection period of up to five years, followed by an assumed long-term growth rate of 2.0% (2020: 2.0%). If the recoverable amount using the more specific assumptions did not exceed the carrying value of a CGU, an impairment charge was recorded. The long-term growth rate is derived from management’s best estimate of the likely long-term trading performance with reference to external industry reports and other relevant market trends. As at 31 December 2021, we have assessed long-term industry trends based on recent historical data including the long-term impact of Covid-19 and assumed a long-term growth rate of 2.0% (2020: 2.0%). Management have made the judgement that the long-term growth rate does not exceed the long-term average growth rate for the industry. The discount rate uses the capital asset pricing model (CAPM) to derive the cost of equity along with an estimated cost of debt that is weighted by an appropriate capital structure to derive an indication of a weighted average cost of capital. The cost of equity is calculated based on long-term government bond yield, an estimate of the required premium for investment in equity relative to government securities and further considers the volatility associated with peer public companies relative to the market. The cost of debt reflects an estimated market yield for long-term debt financing after taking into account the credit profile of public peer companies in the industry. The capital structure used to weight the cost of equity and cost of debt has been derived from the observed capital structure of public peer companies. The pre-tax discount rate applied to the cash flow projections for the CGUs that operate globally was 12.5%. We developed a global discount rate that takes into account the diverse nature of the operations, as these CGUs operate with a diverse range of clients in a range of industries throughout the world, hence are subject to similar levels of market risks. The pre-tax discount rates applied to the CGUs that have more regional specific operations ranged from 11.3% to 18.4%. Our approach in determining the recoverable amount utilises a discounted cash flow methodology, which necessarily involves making numerous estimates and assumptions regarding revenue less pass-through costs growth, operating margins, appropriate discount rates and working capital requirements. The key assumptions used for estimating cash flow projections in the Group’s impairment testing are those relating to revenue less pass-through costs growth and operating margins. The key assumptions take account of the business’s expectations for the projection period. These expectations consider the macroeconomic environment, industry and market conditions, the CGU’s historical performance and any other circumstances particular to the unit, such as business strategy and client mix. These estimates will likely differ from future actual results of operations and cash flows, and it is possible that these differences could be material. In addition, judgements are applied in determining the level of CGU identified for impairment testing and the criteria used to determine which assets should be aggregated. A difference in testing levels could affect whether an impairment is recorded and the extent of impairment loss. Changes in our business activities or structure may also result in additional changes to the level of testing in future periods. Further, future events could cause the Group to conclude that impairment indicators exist and that the asset values associated with a given operation have become impaired. As part of the overall effort to simplify operations and provide clients with integrated offerings, certain operations have been realigned between the various networks. These realignments have been reflected in the CGUs being tested. This includes the combination of AKQA and Grey, bringing Geometry and GTB into VMLY&R, and moving International Healthcare into VMLY&R and Ogilvy. Historically our impairment losses have resulted from a specific event, condition or circumstance in one or more of our companies, such as the impact of Covid-19 or the loss of a significant client. As a result, changes in the assumptions used in our impairment model have generally not had a significant effect on the impairment charges recognised. Given the significant recoveries achieved by CGUs in 2021, 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. Impairments in 2020 In 2020, £2,822.9 million of impairment charges were incurred. The impairments related to historical acquisitions whose carrying values were reassessed in light of the impact of Covid-19. The impairments were driven by a combination of higher discount rates used to value future cash flows, a lower profit base in 2020 and lower industry growth rates. By operating sector, £2,355.1 million of the impairment charge related to Global Integrated Agencies, £161.5 million related to Public Relations and £306.3 million related to Specialist Agencies. This reflects the changes to segments described in Note 2 - Segment Information. As noted above, the impairment review is undertaken annually on 30 September. Given the Covid-19 pandemic, impairment indicators such as a decline in revenue less pass-through costs forecasts, and downturns in the global economy and the advertising industry were identified in the first half of 2020. As such, the Group also performed an impairment test over goodwill and intangible assets with indefinite useful lives as at 30 June 2020. Given the continued impact of Covid-19, an additional impairment test was performed as of 31 December 2020. In developing the cash flows for the 2020 impairment tests, we considered the impact of the Covid-19 pandemic to our businesses and adjusted projected revenue less pass-through costs and operating margins in 2020 and/or 2021 accordingly. For the remaining years in the projection period, we assessed when the cash flows would recover to 2019 levels as representative of pre-Covid-19 revenue less pass-through costs and operating margins. For many of our CGUs, recovery to 2019 levels by 2023 was estimated with some CGUs using alternative recovery profiles as considered appropriate. The pre-tax discount rate applied to the cash flow projections for the CGUs that operate globally was 12.5%. The pre-tax discount rates applied to the CGUs that have more regional specific operations ranged from 10.8% to 18.6% for the 30 June 2020 test, 11.3% to 14.4% for the 30 September 2020 test, and 11.2% to 13.6% for the 31 December 2020 test. As part of the overall effort to simplify operations and become more client-centric, certain operations were realigned between the various networks. These realignments were reflected in the CGUs being tested. The most significant of these for the 30 June 2020 test included the treatment of Landor and Fitch as a single CGU given the collaboration of the two brands from both a management and client perspective; the shift of certain European operations into VMLY&R; and the transfer of certain Asian operations from VMLY&R to Ogilvy in order to improve the operational synergies and offer in the respective regions. Subsequent realignments to improve the operational synergies and regional offers were reflected in the September and December tests including the shift of certain Latin American and European operations between Wunderman Thompson, VMLY&R and GroupM; and the transfer of certain Asian operations to VMLY&R that previously operated independently from a network. The transfers of carrying value between CGUs were determined on a relative value basis. These realignments did not have a significant impact on the impairment figures recognised. The CGUs with significant impairments of goodwill as at 31 December 2020 are set out in the below table with the recoverable amount determined as of the December 2020 test. Operating Sector Recoverable amount 2020 £m Goodwill impairment charge 2020 £m Wunderman Thompson Global Integrated Agencies 1,956.8 1,207.5 VMLY&R Global Integrated Agencies 1,075.7 516.9 Burson Cohn & Wolfe Public Relations 790.2 144.8 Geometry Global Global Integrated Agencies 1 164.4 305.8 Landor & Fitch Specialist Agencies 177.6 185.4 Other 1,409.5 462.5 5,574.2 2,822.9 Note 1 Prior year figures have been re-presented to reflect the changes to segments described in Note 2 - Segment Information. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, plant and equipment | 15. Property, plant and equipment The movements in 2021 and 2020 were as follows: Land Freehold Leasehold Fixtures, Computer Total £m £m £m £m £m £m Cost 1 January 2020 34.3 26.2 1,048.8 212.4 423.9 1,745.6 Additions — 8.9 135.7 25.0 48.7 218.3 New acquisitions — — 0.2 — 0.2 0.4 Disposals — (0.2) (99.1) (41.1) (83.7) (224.1) Exchange adjustments — 4.7 (33.1) (7.0) (7.4) (42.8) 31 December 2020 34.3 39.6 1,052.5 189.3 381.7 1,697.4 Additions 14.3 8.9 134.5 31.5 74.0 263.2 New acquisitions — — 1.5 1.3 1.2 4.0 Disposals (0.1) (0.6) (108.3) (60.0) (56.4) (225.4) Exchange adjustments (5.3) 13.5 (5.2) (12.6) (8.7) (18.3) 31 December 2021 43.2 61.4 1,075.0 149.5 391.8 1,720.9 Depreciation and impairment 1 January 2020 — 4.2 443.3 111.2 310.9 869.6 Charge for the year — 1.2 76.6 33.2 63.8 174.8 Impairment charges included within restructuring costs — — 72.1 6.3 1.3 79.7 Other write-downs — — 2.6 — — 2.6 Disposals — — (79.0) (38.3) (82.5) (199.8) Exchange adjustments — (3.1) (5.2) (5.5) (6.6) (20.4) 31 December 2020 — 2.3 510.4 106.9 286.9 906.5 Charge for the year — 1.0 66.5 27.6 56.1 151.2 Impairment charges included within restructuring costs — — 7.1 1.8 0.9 9.8 Disposals — — (108.2) (55.9) (55.1) (219.2) Exchange adjustments — (0.6) (6.2) (8.5) (8.5) (23.8) 31 December 2021 — 2.7 469.6 71.9 280.3 824.5 Net book value 31 December 2021 43.2 58.7 605.4 77.6 111.5 896.4 31 December 2020 34.3 37.3 542.1 82.4 94.8 790.9 January 1, 2020 34.3 22.0 605.5 101.2 113.0 876.0 At 31 December 2021, capital commitments contracted, but not provided for in respect of property, plant and equipment, were £107.3 million (2020: £132.5 million). |
Interests in associates, joint
Interests in associates, joint ventures and other investments | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 and 2020 were as follows: Interests in Other £m £m 1 January 2020 813.0 498.3 Additions 15.2 15.9 Share of results of associate undertakings (136.0) — Share of other comprehensive loss of associate undertakings (61.5) — Dividends (32.5) — Other movements (5.2) — Exchange adjustments 21.8 — Disposals (7.3) (7.0) Reclassification from subsidiaries 4.5 — Reclassification from other investments to associates 0.2 (0.2) Revaluation of other investments through profit or loss — 8.0 Revaluation of other investments through other comprehensive income — (127.7) Amortisation of other intangible assets (0.6) — Write-downs (280.9) — 31 December 2020 330.7 387.3 Additions 93.6 5.9 Share of results of associate undertakings 23.8 — Share of other comprehensive income of associate undertakings 13.5 — Dividends (53.4) — Other movements (0.2) — Exchange adjustments (22.5) — Disposals (4.8) (31.9) Reclassification from subsidiaries 4.2 — Revaluation of other investments through profit or loss — (7.5) Revaluation of other investments through other comprehensive income — (35.5) Amortisation of other intangible assets (0.5) — Reversal of write-downs 28.5 — 31 December 2021 412.9 318.3 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 information from outside sources. The carrying values of the Group’s associates and joint ventures are reviewed for impairment in accordance with the Group’s accounting policies. The Group’s principal associates and joint ventures at 31 December 2021 included: Country of % Advantage Smollan Ltd UK 25.1 Barrows Design and Manufacturing (Pty) Limited South Africa 35.0 Dat Viet VAC Media Corporation Vietnam 30.0 GIIR Inc. Korea 30.0 Haworth Marketing & Media Company USA 49.0 High Co SA France 34.1 Imagina Spain Spain 22.5 Nanjing Yindu Ogilvy Advertising Co. Ltd China 49.0 Smollan Holdings (Pty) Ltd South Africa 24.8 Summer (BC) JVCo S.a.r.l. 1 Luxembourg 40.0 Note 1 Representing the Group’s interest in Kantar in the Rest of World chain. The market value of the Group’s shares in its principal listed associate undertakings at 31 December 2021 was as follows: GIIR Inc: £21.7 million, and High Co SA: £32.2 million (2020: GIIR Inc: £19.0 million and High Co SA: £32.8 million). The carrying value (including goodwill and other intangibles) of these equity interests in the Group’s consolidated balance sheet at 31 December 2021 was as follows: GIIR Inc: £40.0 million and High Co SA: £37.7 million (2020: GIIR Inc: £41.2 million and High Co SA: £38.9 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. Aggregate information of associates that are not individually material The following table presents a summary of the aggregate financial performance of the Group’s associate undertakings and joint ventures. 2021 2020 2019 £m £m £m Share of results of associate undertakings (note 4) 23.8 (136.0) 14.7 Share of other comprehensive income/(loss) of associate undertakings 13.5 (61.5) — Share of total comprehensive income/(loss) of associate undertakings 37.3 (197.5) 14.7 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. In the year ended 31 December 2020, share of losses of £62.9 million were not recognised in relation to Imagina, an associate in Spain, as the investment was reduced to zero. As at 31 December 2021, the cumulative share of unrecognised losses relating to Imagina is £23.0 million. At 31 December 2021, capital commitments contracted, but not provided for, in respect of interests in associates and other investments were £5.4 million (2020: £7.5 million). |
Deferred tax
Deferred tax | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [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, 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 2021 Offset 2021 As reported 2021 As reported 2020 Offset 2020 As reported 2020 £m £m £m £m £m £m Deferred tax assets 565.0 (223.5) 341.5 477.5 (264.6) 212.9 Deferred tax liabilities (536.0) 223.5 (312.5) (568.7) 264.6 (304.1) 29.0 — 29.0 (91.2) — (91.2) The following are the major gross deferred tax assets recognised by the Group and movements thereon in 2021 and 2020: Deferred Accounting Retirement Property, Tax Share- Restructuring Other Total £m £m £m £m £m £m £m £m £m 1 January 2020 53.5 87.4 57.5 84.7 86.3 21.5 25.8 14.2 430.9 (Charge)/credit to income (1.5) 30.3 (3.5) (3.4) 5.9 0.4 31.9 (2.7) 57.4 Credit to other comprehensive income — — 7.4 — — — — — 7.4 Exchange differences and other movements (2.5) (8.2) (3.5) (0.4) (1.9) (0.5) (1.3) 0.1 (18.2) 31 December 2020 49.5 109.5 57.9 80.9 90.3 21.4 56.4 11.6 477.5 Acquisition of subsidiaries — — — — — — — 0.9 0.9 Credit/(charge) to income 58.2 0.3 1.2 (15.9) 19.7 9.9 9.1 (1.6) 80.9 Charge to other comprehensive income — — (3.0) — — — — — (3.0) Credit to equity — — — — — 11.9 — — 11.9 Exchange differences and other movements 0.8 (3.6) (2.7) 3.0 0.5 0.3 (4.4) 2.9 (3.2) 31 December 2021 108.5 106.2 53.4 68.0 110.5 43.5 61.1 13.8 565.0 Other temporary differences comprise a number of items including tax deductible goodwill, none of which is individually significant to the Group’s consolidated balance sheet. At 31 December 2021 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 2021 and 2020: Brands Associate Goodwill Financial Other Total £m £m £m £m £m £m 1 January 2020 352.3 76.5 135.4 36.9 21.7 622.8 Acquisition of subsidiaries 1.5 — — — — 1.5 (Credit)/charge to income (22.3) (16.7) (7.8) — 6.7 (40.1) Exchange differences and other movements (4.7) (1.8) (4.5) (1.1) (3.4) (15.5) 31 December 2020 326.8 58.0 123.1 35.8 25.0 568.7 Acquisition of subsidiaries 22.5 — — — — 22.5 (Credit)/charge to income (19.5) (21.4) 8.2 (35.5) 16.6 (51.6) Exchange differences and other movements (4.7) 0.2 1.9 (0.3) (0.7) (3.6) 31 December 2021 325.1 36.8 133.2 — 40.9 536.0 At the balance sheet date, the Group has gross tax losses and other temporary differences of £6,961.4 million (2020: £6,895.2 million) available for offset against future profits. Deferred tax assets have been recognised in respect of the tax benefit of £2,259.2 million (2020: £2,041.3 million) of such tax losses and other temporary differences. No deferred tax asset has been recognised in respect of the remaining £4,702.2 million (2020: £4,853.9 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 £63.8 million (2020: £65.4 million) that will expire within one At the balance sheet date, the aggregate amount of the temporary differences in relation to the investment in subsidiaries for which deferred tax liabilities have not been recognised was £1,385.3 million (2020: £1,655.3 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, 2021 | |
Trade and other receivables [abstract] | |
Trade and other receivables | 18. Trade and other receivables The following are included in trade and other receivables: 2021 2020 Amounts falling due within one year £m £m Trade receivables (net of loss allowance) 6,600.5 6,572.2 Work in progress 254.0 264.1 VAT and sales taxes recoverable 350.3 236.6 Prepayments 215.3 248.1 Accrued income 3,435.7 3,150.1 Fair value of derivatives 2.5 0.2 Other debtors 504.0 501.0 11,362.3 10,972.3 The ageing of trade receivables and other financial assets by due date is as follows: Carrying amount at 31 December 2021 Not Days past due 0-30 31-90 91-180 181 Greater 2021 £m £m £m £m £m £m £m Gross trade receivables 6,671.0 5,755.6 589.8 194.4 64.0 10.6 56.6 Loss allowance (70.5) (2.3) (0.2) (1.9) (7.5) (4.9) (53.7) 6,600.5 5,753.3 589.6 192.5 56.5 5.7 2.9 Other financial assets 496.3 422.1 15.2 2.7 3.0 2.7 50.6 7,096.8 6,175.4 604.8 195.2 59.5 8.4 53.5 Carrying amount at 31 December 2020 Not Days past due 0-30 31-90 91-180 181 Greater 2020 £m £m £m £m £m £m £m Gross trade receivables 6,684.7 5,696.8 661.2 169.2 55.6 32.7 69.2 Loss allowance (112.5) (4.4) (1.2) (1.9) (15.2) (25.2) (64.6) 6,572.2 5,692.4 660.0 167.3 40.4 7.5 4.6 Other financial assets 527.2 451.8 32.5 8.6 11.8 4.3 18.2 7,099.4 6,144.2 692.5 175.9 52.2 11.8 22.8 Other financial assets are included in other debtors. Past due amounts are not impaired where collection is considered likely. 2021 2020 Amounts falling due after more than one year £m £m Prepayments 3.0 2.8 Fair value of derivatives 0.5 9.6 Other debtors 149.1 143.8 152.6 156.2 The Group has applied the practical expedient permitted by IFRS 15 to not disclose the transaction price allocated to performance obligations unsatisfied (or partially unsatisfied) as of the end of the reporting period as contracts typically have an original expected duration of a year or less. 2021 2020 2019 £m £m £m Loss allowance At beginning of year 112.5 111.7 116.6 New acquisitions 3.7 3.5 5.0 Charged to the income statement 17.2 50.6 45.4 Released to the income statement (27.9) (9.8) (19.0) Exchange adjustments (1.7) (2.8) (4.1) Transfer to disposal group classified as held for sale — — (8.9) Utilisations and other movements (33.3) (40.7) (23.3) At end of year 70.5 112.5 111.7 The loss allowance is equivalent to 1.1% (2020: 1.7%, 2019: 1.6%) of gross trade accounts receivables. Impairment losses on work in progress, accrued income and other debtors were immaterial for the years presented. The Group considers that the carrying amount of trade and other receivables approximates their fair value. Expected credit losses The Group has applied the simplified approach to measuring expected credit losses, as permitted by IFRS 9 Financial Instruments. This has been applied to trade receivables, contract assets and lease receivables. Under this approach, the Group utilises a provision matrix based on the age of the trade receivables and historical loss rates to determine the expected credit losses. The Group also considers forward-looking information. Therefore the Group does not track changes in credit risk over the life of a financial asset, but recognises a loss allowance based on the financial asset’s lifetime expected credit loss. For all other assets, the general approach has been applied and a loss allowance for twelve months expected credit losses is recognised. Under IFRS 9, the expected credit losses are measured as the difference between the asset’s gross carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. Given the short-term nature of the Group’s trade receivables, work in progress and accrued income, which are mainly due from large national or multinational companies, the Group’s assessment of expected credit losses includes provisions for specific clients and receivables where the contractual cash flow is deemed at risk. Additional provisions are made based on the assessment of recoverability of aged receivables over one year where sufficient evidence of recoverability is not evident. As a result of the ongoing Covid-19 pandemic, the Group also performed a detailed review of trade receivables, work in progress and accrued income aged less than one year, taking into account the level of credit insurance the Group has along with internal and external data including historical and forward-looking information. This review focused on significant individual clients along with the industry and country in which the clients operate where there is continued risk due to the pandemic. |
Trade and other payables_ amoun
Trade and other payables: amounts falling due within one year | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other current payables [abstract] | |
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: 2021 2020 £m £m Trade payables 10,596.9 10,206.5 Deferred income 1,334.0 1,153.7 Payments due to vendors (earnout agreements) 85.6 57.8 Liabilities in respect of put option agreements with vendors 58.4 9.3 Fair value of derivatives 6.4 1.8 Share repurchases - close period commitments 1 211.7 — Other creditors and accruals 2,959.3 2,430.6 15,252.3 13,859.7 Note 1 During 2021, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 16 December 2021 and ending on 18 February 2022, in accordance with UK listing rules. The commitment resulting from this agreement constitutes a liability at 31 December 2021, 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, 2021 | |
Trade and other non-current payables [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: 2021 2020 £m £m Payments due to vendors (earnout agreements) 111.1 56.5 Liabilities in respect of put option agreements with vendors 333.1 101.4 Fair value of derivatives 47.2 11.2 Other creditors and accruals 128.5 144.4 619.9 313.5 The Group considers that the carrying amount of trade and other payables approximates their fair value. The following table sets out payments due to vendors, comprising contingent consideration and the Directors’ best estimates of future earnout-related obligations: 2021 2020 £m £m Within one year 85.6 57.8 Between one and two years 24.0 17.2 Between two and three years 35.7 6.0 Between three and four years 51.4 30.5 Between four and five years — 2.8 Over five years — — 196.7 114.3 The following table is an analysis of future anticipated cash flows in relation to liabilities in respect of put option agreements with vendors at 31 December: 2021 2020 £m £m Within one year 58.4 9.3 Between one and two years 15.1 51.0 Between two and three years 14.4 10.0 Between three and four years 99.0 26.2 Between four and five years 76.6 9.0 Over five years 128.0 5.2 391.5 110.7 |
Bank overdrafts, bonds and bank
Bank overdrafts, bonds and bank loans | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of bank overdraft bonds and bank loans [abstract] | |
Bank overdrafts, bonds and bank loans | 21. Bank overdrafts, bonds and bank loans Amounts falling due within one year: 2021 2020 £m £m Bank overdrafts 342.3 8,562.0 Corporate bonds and bank loans 224.9 57.2 567.2 8,619.2 During the year, the Group converted the majority of its cash pool arrangements to zero-balancing cash pools, whereby the cash and overdrafts within these cash pools are physically swept to the header accounts on a daily basis, resulting in a reduction of the large gross cash and overdraft positions at 31 December 2020. The Group considers that the carrying amount of bank overdrafts approximates their fair value. Amounts falling due after more than one year: 2021 2020 £m £m Corporate bonds and bank loans 4,216.8 4,975.5 The Group estimates that the fair value of corporate bonds is £4,790.3 million at 31 December 2021 (2020: £5,509.1 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 £14.7 million (2020: £57.2 million) approximates their fair value. The corporate bonds, bank loans and overdrafts included within liabilities fall due for repayment as follows: 2021 2020 £m £m Within one year 567.2 8,619.2 Between one and two years 629.2 590.9 Between two and three years 550.4 669.4 Between three and four years 418.8 540.2 Between four and five years 623.6 445.6 Over five years 1,994.8 2,729.4 4,784.0 13,594.7 |
Provisions for liabilities and
Provisions for liabilities and charges | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of other provisions [abstract] | |
Provisions for liabilities and charges | 22. Provisions for liabilities and charges The movements in 2021 and 2020 were as follows: Property Other Total 1 January 2020 81.5 166.3 247.8 Charged to the income statement 14.8 50.4 65.2 Acquisitions 1 — 0.7 0.7 Utilised (1.6) (17.0) (18.6) Released to the income statement (1.5) (15.0) (16.5) Other movements (15.0) 48.7 33.7 Exchange adjustments (1.5) (4.5) (6.0) 31 December 2020 76.7 229.6 306.3 Charged to the income statement 25.2 35.8 61.0 Acquisitions 1 — 7.3 7.3 Utilised (7.0) (69.9) (76.9) Released to the income statement (18.3) (25.0) (43.3) Other movements (5.2) 18.9 13.7 Exchange adjustments (0.8) 1.2 0.4 31 December 2021 70.6 197.9 268.5 Note 1 Acquisitions include £7.3 million (2020: £0.4 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. 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. The utilisation of "Other" provisions during the year is primarily driven by litigation settlements. |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of share based payments [abstract] | |
Share-based payments | 23. Share-based payments Charges for share-based incentive plans were as follows: 2021 2020 2019 Continuing operations £m £m £m Share-based payments 99.6 74.4 66.0 Share-based payments comprise charges for stock options and restricted stock awards to employees of the Group. As of 31 December 2021, there was £203.4 million (2020: £134.9 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 Further information on stock options is provided in note 27. Restricted stock plans The Group operates a number of equity-settled share incentive schemes, in most cases satisfied by the delivery of stock from one of the Group’s ESOP Trusts. The most significant current schemes are as follows: Executive Performance Share Plan (EPSP) This scheme is intended to reward and incentivise the most senior executives of the Group. The performance period is three five The 2020 and 2021 EPSP awards are subject to three equally weighted performance conditions: three-year average Return on Invested Capital (ROIC), cumulative Adjusted Free Cash Flow (AFCF), and relative Total Shareholder Return (TSR). Achieving the threshold performance requirement will result in a vesting opportunity of 20% for that element. The vesting opportunity will increase on a straight-line basis to 100% of the award for maximum performance. The Compensation Committee has an overriding discretion to determine the extent to which the award will vest. The 2019 EPSP awards are subject to a relative TSR performance condition, with a 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 2014 and 2018 there are three performance criteria, each constituting one-third of the vesting value, and each measured over the performance period: (i) TSR against a comparator group of companies. Threshold performance (equating to ranking in the 50th percentile of the comparator group) will result in 20% vesting of the part of the award dependent on TSR. The maximum vest of 100% will arise if performance ranks in the 90th percentile, with a sliding scale of vesting for performance between threshold and maximum. (ii) Headline diluted earnings per share. Threshold performance (7% compound annual growth) will again result in a 20% vest. Maximum performance of 14% compound annual growth will give rise to a 100% vest, with a sliding vesting scale for performance between threshold and maximum. (iii) Return on equity (ROE). Average annual ROE defined as headline diluted EPS divided by the balance sheet value per share of shareholders’ equity. Threshold performance ranges between 10-14% average annual ROE and maximum performance ranges between 14-18%. 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 The WPP Leader programme makes conditional stock awards to around 1,800 of our key executives. Awards vest three years after grant, provided the participant is still employed within the Group. Valuation methodology For all of these schemes, the valuation methodology is based upon fair value on grant date, which is determined by the market price on that date or the application of a Black-Scholes model, depending upon the characteristics of the scheme concerned. The assumptions underlying the Black-Scholes model are detailed in note 27, including details of assumed dividend yields. Market price on any given day is obtained from external, publicly available sources. Market/non-market conditions Most share-based plans are subject to non-market performance conditions, such as margin or growth targets, as well as continued employment. EPSP is subject to a number of performance conditions, including TSR, a market-based condition. For schemes without market-based performance conditions, the valuation methodology above is applied and, at each year-end, the relevant charge for each grant is revised, if appropriate, to take account of any changes in estimate of the likely number of shares expected to vest. For schemes with market-based performance conditions, the probability of satisfying these conditions is assessed at grant date through a statistical model (such as the Monte Carlo model) and applied to the fair value. This initial valuation remains fixed throughout the life of the relevant plan, irrespective of the actual outcome in terms of performance. Where a lapse occurs due to cessation of employment, the cumulative charge taken to date is reversed. Movement on ordinary shares granted for significant restricted stock plans: Non-vested 1 January 2021 number m Granted Forfeited Vested Non-vested 31 December 2021 number m Executive Performance Share Plan (EPSP) 13.0 6.1 (2.2) (0.2) 16.7 Performance Share Awards (PSA) 4.3 0.4 (0.2) (1.4) 3.1 Leaders, Partners and High Potential Group 11.0 3.6 (1.1) (3.1) 10.4 Weighted average fair value (pence per share) Executive Performance Share Plan (EPSP) 943 p 951 p 1,289 p 833 p 900 p Performance Share Awards (PSA) 675 p 666 p 534 p 859 p 604 p Leaders, Partners and High Potential Group 831 p 990 p 853 p 709 p 922 p The total fair value of shares vested for all the Group’s restricted stock plans during the year ended 31 December 2021 was £64.1 million (2020: £71.6 million, 2019: £90.8 million). |
Provision for post-employment b
Provision for post-employment benefits | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Pension Costs [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: 2021 2020 2019 Continuing operations £m £m £m Defined contribution plans 162.8 157.8 154.9 Defined benefit plans charge to operating profit 14.9 13.9 14.8 Pension costs (note 5) 177.7 171.7 169.7 Net interest expense on pension plans (note 6) 1.8 2.9 3.5 179.5 174.6 173.2 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 2021. The majority of plans provide final salary benefits, with plan benefits typically based either on mandatory plans under local legislation, termination indemnity benefits, or on the rules of WPP sponsored supplementary plans. The implications of IFRIC 14 have been allowed for where relevant, in particular with regard to the asset ceiling/irrecoverable surplus. The Group’s policy is to close existing defined benefit plans to new members. This has been implemented across a significant number of the pension plans. Contributions to funded plans are determined in line with local conditions and practices. Contributions in respect of unfunded plans are paid as they fall due. The total contributions (for funded plans) and benefit payments (for unfunded plans) paid for 2021 amounted to £16.7 million (2020: £20.3 million, 2019: £37.1 million). Employer contributions and benefit payments in 2022 are expected to be approximately £15 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: 2021 2020 2019 2018 % pa % pa % pa % pa UK Discount rate 1 1.8 1.3 2.0 2.8 Rate of increase in pensions in payment 4.5 4.4 4.4 4.3 Inflation 3.2 2.8 2.6 2.8 North America Discount rate 1 2.6 2.0 3.0 4.1 Rate of increase in salaries 2 n/a 3.0 3.0 3.0 Western Continental Europe Discount rate 1 1.2 0.9 1.2 2.0 Rate of increase in salaries 2.3 2.2 2.2 2.3 Rate of increase in pensions in payment 1.8 1.8 1.8 1.2 Inflation 1.7 1.7 1.7 1.7 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe Discount rate 1 5.3 4.2 4.6 5.0 Rate of increase in salaries 5.6 5.2 6.1 5.8 Inflation 3.7 3.7 3.7 3.6 Notes 1 Discount rates are based on high-quality corporate bond yields. In countries where there is no deep market in corporate bonds, the discount rate assumption has been set with regard to the yield on long-term government bonds. 2 The salary assumptions are no longer applicable to the US as all plans were frozen. Active participants will not accrue additional benefits for future services under these plans. For the Group’s pension plans, the plans’ assets are invested with the objective of being able to meet current and future benefit payment needs, while controlling balance sheet volatility and future contributions. Pension plan assets are invested with a number of investment managers, and assets are diversified among equities, bonds, insured annuities, property and cash or other liquid investments. The primary use of bonds as an investment class is to match the anticipated cash flows from the plans to pay pensions. The Group is invested in high-quality corporate and government bonds which share similar risk characteristics and are of equivalent currency and term to the plan liabilities. Various insurance policies have also been bought historically to provide a more exact match for the cash flows, including a match for the actual mortality of specific plan members. These insurance policies effectively provide protection against both investment fluctuations and longevity risks. The strategic target allocation varies among the individual plans. Management considers the types of investment classes in which the pension plan assets are invested. The types of investment classes are determined by economic and market conditions and in consideration of specific asset class risk. 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 2021, 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 22.3 21.8 23.5 20.9 13.3 Current pensioners 24.0 23.3 25.0 23.9 16.4 Future pensioners 24.1 23.2 25.5 23.1 13.3 Future pensioners 25.8 24.6 27.1 25.9 16.4 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. The life expectancies after age 65 at 31 December 2020 were 22.1 years and 23.6 years for male and female current pensioners (at age 65) respectively, and 23.7 years and 25.2 years for male and female future pensioners (current age 45), respectively. In the determination of mortality assumptions, management uses the most up-to-date mortality tables available in each country. The following table provides information on the weighted average duration of the defined benefit pension obligations and the distribution of the timing of benefit payments for the next ten years. The duration corresponds to the weighted average length of the underlying cash flows. All North UK Western Other 1 Weighted average duration of the defined benefit obligation (years) 11.2 9.3 13.6 12.4 6.3 Expected benefit payments over the next ten years (£m) Benefits expected to be paid 47.4 22.8 13.5 5.6 5.5 Benefits expected to be paid in 2023 42.6 20.8 12.2 5.5 4.1 Benefits expected to be paid in 2024 41.7 20.2 12.6 5.4 3.5 Benefits expected to be paid in 2025 42.0 18.9 13.3 5.7 4.1 Benefits expected to be paid in 2026 43.9 19.9 13.3 5.8 4.9 Benefits expected to be paid 215.1 85.8 71.4 31.8 26.1 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. The following table presents a sensitivity analysis for each significant actuarial assumption showing how the defined benefit obligation would have been affected by changes in the relevant actuarial assumption that were reasonably possible at the balance sheet date. This sensitivity analysis applies to the defined benefit obligation only and not to the net defined benefit pension liability in its entirety, the measurement of which is driven by a number of factors including, in addition to the assumptions below, the fair value of plan assets. The sensitivity analyses are based on a change in one assumption while holding all other assumptions constant so that interdependencies between the assumptions are excluded. The methodology applied is consistent with that used to determine the recognised defined benefit obligation. The sensitivity analysis for inflation is not shown as it is an underlying assumption to build the pension and salary increase assumptions. Changing the inflation assumption on its own without changing the salary or pension assumptions will not result in a significant change in pension liabilities. (Decrease)/increase 2021 2020 Sensitivity analysis of significant actuarial assumptions £m £m Discount rate Increase by 25 basis points: UK (7.6) (8.8) North America (6.4) (7.6) Western Continental Europe (3.4) (4.0) Other 1 (0.6) (0.6) Decrease by 25 basis points: UK 8.0 9.1 North America 6.6 7.8 Western Continental Europe 3.6 4.3 Other 1 0.6 0.6 Rate of increase in salaries Increase by 25 basis points: Western Continental Europe 0.8 0.9 Other 1 0.5 0.6 Decrease by 25 basis points: Western Continental Europe (0.8) (0.9) Other 1 (0.5) (0.5) Rate of increase in pensions in payment Increase by 25 basis points: UK 0.9 1.1 Western Continental Europe 1.7 2.1 Decrease by 25 basis points: UK (0.9) (0.7) Western Continental Europe (1.7) (2.0) Life expectancy Increase in longevity by one UK 13.3 14.0 North America 5.3 5.9 Western Continental Europe 4.2 4.8 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: 2021 2020 2019 £m % £m % £m % Equities 31.8 5.8 41.6 6.7 55.5 9.1 Bonds 259.7 47.0 284.2 46.1 272.5 44.8 Insured annuities 222.5 40.3 252.8 41.0 239.1 39.3 Property 1.0 0.2 0.7 0.1 0.7 0.1 Cash 15.3 2.8 14.7 2.4 17.7 2.9 Other 21.8 3.9 22.6 3.7 23.0 3.8 Total fair value of assets 552.1 100.0 616.6 100.0 608.5 100.0 Present value of liabilities (688.5) (772.7) (767.5) Deficit in the plans (136.4) (156.1) (159.0) Irrecoverable surplus (0.2) (0.6) — Net liability 1 (136.6) (156.7) (159.0) Plans in surplus 30.1 27.2 20.6 Plans in deficit (166.7) (183.9) (179.6) Note 1 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. The value of insured annuities is equal to the value of the pension benefits covered by the annuities. 2021 2020 2019 Surplus/(deficit) in plans by region £m £m £m UK 0.4 0.7 0.3 North America (28.1) (37.9) (45.2) Western Continental Europe (74.0) (85.9) (79.4) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (34.7) (33.0) (34.7) Deficit in the plans (136.4) (156.1) (159.0) Some of the Group’s defined benefit plans are unfunded (or largely unfunded) by common custom and practice in certain jurisdictions. In the case of these unfunded plans, the benefit payments are made as and when they fall due. Pre-funding of these plans would not be typical business practice. The following table shows the split of the deficit at 31 December between funded and unfunded pension plans. 2021 Surplus/ (deficit) £m 2021 Present value of liabilities £m 2020 Surplus/ (deficit) £m 2020 Present value of liabilities £m 2019 Surplus/ (deficit) £m 2019 Present value of liabilities £m Funded plans by region UK 0.4 (231.9) 0.7 (262.7) 0.3 (247.6) North America 20.1 (237.9) 17.4 (271.8) 12.8 (286.2) Western Continental Europe (45.1) (87.6) (38.6) (84.3) (33.3) (77.6) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (6.4) (25.7) (5.8) (24.1) (3.6) (20.9) Deficit/liabilities in the funded plans (31.0) (583.1) (26.3) (642.9) (23.8) (632.3) Unfunded plans by region North America (48.2) (48.2) (55.3) (55.3) (58.0) (58.0) Western Continental Europe (28.9) (28.9) (47.3) (47.3) (46.1) (46.1) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (28.3) (28.3) (27.2) (27.2) (31.1) (31.1) Deficit/liabilities in the unfunded plans (105.4) (105.4) (129.8) (129.8) (135.2) (135.2) Deficit/liabilities in the plans (136.4) (688.5) (156.1) (772.7) (159.0) (767.5) 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: 2021 2020 2019 Continuing operations £m £m £m Service cost 1 12.6 12.0 12.9 Administrative expenses 2.3 1.9 1.9 Charge to operating profit 14.9 13.9 14.8 Net interest expense on pension plans 1.8 2.9 3.5 Charge to profit before taxation for defined benefit plans 16.7 16.8 18.3 Note 1 Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments. The following table shows the breakdown of amounts recognised in other comprehensive income (OCI): 2021 2020 2019 £m £m £m Return on plan assets (excluding interest income) (29.3) 57.2 16.7 Changes in demographic assumptions underlying the present value of the plan liabilities (3.6) 3.8 5.9 Changes in financial assumptions underlying the present value of the plan liabilities 31.1 (54.0) (64.3) Experience gain/(loss) arising on the plan liabilities 15.7 (4.4) 5.1 Change in irrecoverable surplus 0.4 (0.6) — Actuarial gain/(loss) recognised in OCI 14.3 2.0 (36.6) (d) Movement in plan liabilities The following table shows an analysis of the movement in the pension plan liabilities for each accounting period: 2021 2020 2019 £m £m £m Plan liabilities at beginning of year 772.7 767.5 1,024.0 Service cost 1 12.6 12.0 14.9 Interest cost 12.0 17.0 26.2 Actuarial (gain)/loss: Effect of changes in demographic assumptions 3.6 (3.8) (5.9) Effect of changes in financial assumptions (31.1) 54.0 64.3 Effect of experience adjustments (15.7) 4.4 (5.1) Benefits paid 2 (59.5) (59.6) (140.8) Gain due to exchange rate movements (6.1) (4.2) (22.7) Settlement payments 3 (0.3) (17.0) (47.4) Transfer to disposal group classified as held for sale — — (148.0) Other 4 0.3 2.4 8.0 Plan liabilities at end of year 688.5 772.7 767.5 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 United States defined benefit plan that allowed certain participants to receive immediate lump sum pay-outs, which totalled £69.7 million. 3 In 2019, the Group completed the transfer of the defined benefit obligations for certain UK plans to an insurer resulting in £47.1 million 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: 2021 2020 2019 £m £m £m Fair value of plan assets at beginning of year 616.6 608.5 840.6 Interest income on plan assets 10.2 14.1 22.4 Return on plan assets (excluding interest income) (29.3) 57.2 16.7 Employer contributions 16.7 20.3 37.1 Benefits paid 1 (59.5) (59.6) (140.8) Loss due to exchange rate movements (0.6) (6.8) (15.7) Settlement payments 2 (0.3) (17.0) (47.4) Administrative expenses (1.8) (1.9) (2.1) Transfer to disposal group classified as held for sale — — (111.1) Other 3 0.1 1.8 8.8 Fair value of plan assets at end of year 552.1 616.6 608.5 Actual return on plan assets (19.1) 71.3 39.1 Notes 1 In 2019, there was an amendment to a United States defined benefit plan that allowed certain participants to receive immediate lump sum pay-outs, which totalled £69.7 million. 2 In 2019, the Group completed the transfer of the defined benefit obligations for certain UK plans to an insurer resulting in £47.1 million 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
Risk management policies | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of risk management strategy related to hedge accounting [abstract] | |
Risk management policies | 25. Risk management policies Foreign currency risk The Group’s results in pounds sterling are subject to fluctuation as a result of exchange rate movements. The Group does not hedge this translation exposure to its earnings but does partially hedge the currency element of its net assets using foreign currency borrowings, cross-currency swaps 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 2021 were primarily made up of $1,667 million, £1,094 million and €2,600 million (2020: $2,167 million, £1,094 million and €2,600 million). The Group’s average gross debt during the course of 2021 was $1,934 million, £1,094 million and €2,600 million (2020: $2,311 million, £999 million and €2,409 million). The Group’s operations conduct the majority of their activities in their own local currency and consequently the Group has no significant transactional foreign exchange exposures arising from its operations. Any significant cross-border trading exposures are hedged by the use of forward foreign-exchange contracts. No speculative foreign exchange trading is undertaken. Interest rate risk The Group is exposed to interest rate risk on both interest-bearing assets and interest-bearing liabilities. The Group has a policy of actively managing its interest rate risk exposure while recognising that fixing rates on all its debt eliminates the possibility of benefiting from rate reductions and similarly, having all its debt at floating rates unduly exposes the Group to increases in rates. Including the effect of interest rate and cross-currency swaps, 100% of the year-end US dollar debt is at fixed rates averaging 4.18% for an average period of 72 months; 100% of the sterling debt is at a fixed rate of 2.97% for an average period of 155 months; 90.4% of the euro debt is at fixed rates averaging 2.04% for an average period of 69 months; and 9.6% of the euro debt is at floating rates averaging 0% for an average of 3 months. Going concern and liquidity risk In considering going concern and liquidity risk, the Directors have reviewed the Group’s future cash requirements and earnings projections. The Directors believe these forecasts have been prepared on a prudent basis and have also considered the impact of a range of potential changes to trading performance. The impact of the Russian invasion of Ukraine and sanctions response from governments has been considered. The Company modelled a range of revenue less pass-through costs compared with the year ended 31 December 2021 and a number of mitigating cost actions that are available to the Company. Considering the Group's bank covenant and liquidity headroom and cost mitigation actions which could be implemented, the Company and the Group would be able to operate with appropriate liquidity and within its banking covenants and be able to meet its liabilities as they fall due with a decline in revenue less pass-through costs up to 30% in 2022. The likelihood of such a decline is considered remote as compared to Company expectations and external benchmarks, including previously witnessed declines in times of economic stress or external forces such as the pandemic. The modelling in this extreme scenario includes cost mitigations of 70% of the decline in net sales and the suspension of the share buyback programme and dividend. Further measures that were not included in the modelling, should the Company face such an extreme scenario, include the reduction of capital expenditure and acquisitions. Therefore, the Directors have concluded that the Group will be able to operate within its current facilities and comply with its banking covenants for the foreseeable future and therefore believe it is appropriate to prepare the financial statements of the Group on a going concern basis and that there are no material uncertainties which give rise to a significant going concern risk. At 31 December 2021, the Group has access to £6.3 billion of committed facilities with maturity dates spread over the years 2022 to 2046 as illustrated below: 2022 2023 2024 2025 2026 + £m £m £m £m £m £ bonds £400m (2.875% 2046) 400.0 400.0 US bond $220m (5.625% 2043) 162.5 162.5 US bond $93m (5.125% 2042) 68.6 68.6 £ bonds £250m (3.75% 2032) 250.0 250.0 Eurobonds €600m (1.625% 2030) 504.5 504.5 Eurobonds €750m (2.375% 2027) 630.6 630.6 Eurobonds €750m (2.25% 2026) 630.6 630.6 Bank revolver ($2,500m 2026) 1,847.5 1,847.5 Eurobonds €500m (1.375% 2025) 420.4 420.4 US bond $750m (3.75% 2024) 554.2 554.2 Eurobonds €750m (3.0% 2023) 630.6 630.6 Eurobonds €250m (3m EURIBOR + 0.45% 2022) 210.2 210.2 Total committed facilities available 6,309.7 210.2 630.6 554.2 420.4 4,494.3 Drawn down facilities at 31 December 2021 4,462.2 210.2 630.6 554.2 420.4 2,646.8 Undrawn committed credit facilities 1,847.5 Given the strong cash generation of the business, its debt maturity profile and available facilities, the Directors believe the Group has sufficient liquidity to match its requirements for the foreseeable future. Treasury activities Treasury activity is managed centrally from London, New York and Hong Kong, and is principally concerned with the monitoring of working capital, managing external and internal funding requirements and the monitoring and management of financial market risks, in particular interest rate and foreign exchange exposures. The treasury operation is not a profit centre and its activities are carried out in accordance with policies approved by the Board of Directors and subject to regular review and audit. The Group manages liquidity risk by ensuring continuity and flexibility of funding even in difficult market conditions. Undrawn committed borrowing facilities are maintained in excess of peak net-borrowing levels and debt maturities are closely monitored. Targets for average debt less cash position are set on an annual basis and, to assist in meeting this, working capital targets are set for all the Group’s major operations. Capital risk management The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Group consists of debt, which includes the borrowings disclosed in note 10, cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings as disclosed in the consolidated statement of changes in equity and in notes 27 and 28. 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 26. 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 loss allowances, 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 2021 or 31 December 2020. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies or banks that have been financed by their government. A relatively small number of clients contribute a significant percentage of the Group’s consolidated revenues. The Group’s clients generally are able to reduce advertising and marketing spending or cancel projects at any time for any reason. There can be no assurance that any of the Group’s clients will continue to utilise the Group’s services to the same extent, or at all, in the future. Clients can reduce their marketing spend, terminate contracts, or cancel projects on short notice. The loss of one or more of our largest clients, if not replaced by new accounts or an increase in business from existing clients, would adversely affect our financial condition. Sensitivity analysis The following sensitivity analysis addresses the effect of currency and interest rate risks on the Group’s financial instruments. The analysis assumes that all hedges are highly effective. Currency risk A 10% weakening of sterling against the Group’s major currencies would result in the following losses being recognised in the income statement, which would arise on the retranslation of foreign currency denominated borrowings and derivatives. A 10% strengthening of sterling would have an equal and opposite effect. 2021 2020 £m £m US dollar 0.7 159.1 Euro 17.4 167.2 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 2021 would increase profit before tax by approximately £33.3 million (2020: £40.9 million). A one percentage point decrease in market interest rates would have an equal and opposite effect. This has been calculated by applying the interest rate change to the Group’s variable rate cash and borrowings. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial instruments | 26. Financial Instruments Currency derivatives The Group utilises currency derivatives to hedge significant future transactions and cash flows and the exchange risk arising on translation of the Group’s investments in foreign operations. The Group is a party to a variety of foreign currency derivatives in the management of its exchange rate exposures. The instruments purchased are primarily denominated in the currencies of the Group’s principal markets. The Group designates foreign currency denominated debt as hedging instruments against the currency risk associated with the translation of its foreign operations. The Group also designates certain cross currency swaps as hedging instruments in cash flow hedges to manage its exposure to foreign exchange movements on its borrowings. Contracts due in November 2023 have receipts of €500.0 million and payments of $604.2 million. Contracts due in March 2025 have receipts of €500.0 million and payments of £444.1 million. At 31 December 2021, the fair value of the Group’s currency derivatives is estimated to be a net liability of approximately £46.7 million (2020: £1.6 million). These amounts are based on market values of equivalent instruments at the balance sheet date, comprising £0.5 million (2020: £9.6 million) assets included in trade and other receivables and £47.2 million (2020: £11.2 million) liabilities included in trade and other payables. The amounts taken to and deferred in equity during the year for currency derivatives that are designated and effective hedges was a credit of £45.5 million (2020: £9.7 million) for net investment hedges and a debit of £38.0 million (2020: £5.9 million) for cash flow hedges. Changes in the fair value relating to the ineffective portion of the currency derivatives that are designated hedges amounted to £2.5 million (2020: £nil) which is included within revaluation and retranslation of financial instruments in the income statement. At the balance sheet date, the total nominal amount of outstanding forward foreign exchange contracts not designated as hedges was £764.8 million (2020: £304.6 million). The Group estimates the fair value of these contracts to be a net liability of £3.9 million (2020: £1.6 million). As at 31 December 2021, the Group had designated its $93 million bond, $750 million bond, $220 million bond, and $604 million leg of its cross currency swap, as the hedging instruments in a net investment hedge relationship. Possible sources of ineffectiveness include any impairments to the Group's net investment in US dollars. The hedges are documented and are assessed for effectiveness on an ongoing basis. These arrangements are designed to address significant exchange exposure and are renewed on a revolving basis as required. An analysis of the Group’s financial assets and liabilities by accounting classification is set out below: Derivatives Held at Held at Amortised Carrying £m £m £m £m £m 2021 Other investments — 228.3 90.0 — 318.3 Cash and short-term deposits — — — 3,882.9 3,882.9 Bank overdrafts, bonds and bank loans — — — (567.2) (567.2) Bonds and bank loans — — — (4,216.8) (4,216.8) Trade and other receivables: amounts falling due within one year — — — 7,012.3 7,012.3 Trade and other receivables: amounts falling due after more than one year — — — 84.5 84.5 Trade and other payables: amounts falling due within one year — — — (10,674.8) (10,674.8) Trade and other payables: amounts falling due after more than one year — — — (1.5) (1.5) Derivative assets 0.5 2.5 — — 3.0 Derivative liabilities (47.2) (6.4) — — (53.6) Payments due to vendors (earnout agreements) — (196.7) — — (196.7) Liabilities in respect of put options — (391.5) — — (391.5) (46.7) (363.8) 90.0 (4,480.6) (4,801.1) Derivatives Held at Held at Amortised Carrying £m £m £m £m £m 2020 Other investments — 263.3 124.0 — 387.3 Cash and short-term deposits — — — 12,899.1 12,899.1 Bank overdrafts, bonds and bank loans — — — (8,619.2) (8,619.2) Bonds and bank loans — — — (4,975.5) (4,975.5) Trade and other receivables: amounts falling due within one year — — — 6,989.3 6,989.3 Trade and other receivables: amounts falling due after more than one year — — — 110.1 110.1 Trade and other payables: amounts falling due within one year — — — (10,268.0) (10,268.0) Trade and other payables: amounts falling due after more than one year — — — (0.9) (0.9) Derivative assets 9.6 0.2 — — 9.8 Derivative liabilities (6.3) (6.7) — — (13.0) Payments due to vendors (earnout agreements) — (114.3) — — (114.3) Liabilities in respect of put options — (110.7) — — (110.7) 3.3 31.8 124.0 (3,865.1) (3,706.0) The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into levels 1 to 3 based on the degree to which the fair value is observable: Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices); Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Level 1 Level 2 Level 3 £m £m £m 2021 Derivatives in designated hedge relationships Derivative assets — 0.5 — Derivative liabilities — (47.2) — Held at fair value through profit or loss Other investments 0.4 — 227.9 Derivative assets — 2.5 — Derivative liabilities — (6.4) — Payments due to vendors (earnout agreements) — — (196.7) Liabilities in respect of put options — — (391.5) Held at fair value through other comprehensive income Other investments 27.9 — 62.1 Level 1 Level 2 Level 3 £m £m £m 2020 Derivatives in designated hedge relationships Derivative assets — 9.6 — Derivative liabilities — (6.3) — Held at fair value through profit or loss Other investments 0.1 — 263.2 Derivative assets — 0.2 — Derivative liabilities — (6.7) — Payments due to vendors (earnout agreements) — — (114.3) Liabilities in respect of put options — — (110.7) Held at fair value through other comprehensive income Other investments 20.6 — 103.4 There have been no transfers between these levels in the years presented. Reconciliation of level 3 fair value measurements: Payments due to vendors (earnout agreements) Liabilities Other £m £m £m 1 January 2020 (243.7) (204.5) 456.1 Gains recognised in the income statement 13.4 12.3 7.9 Losses recognised in other comprehensive income — — (106.1) Exchange adjustments 5.3 2.3 — Additions (4.5) (4.2) 15.9 Disposals — — (7.0) Reclassification from other investments to interests in associates — — (0.2) Cancellations — 30.5 — Settlements 115.2 52.9 — 31 December 2020 (114.3) (110.7) 366.6 Losses recognised in the income statement (58.7) (40.6) (7.7) Losses recognised in other comprehensive income — — (42.8) Exchange adjustments 1.0 1.3 — Additions (81.7) (247.7) 1 5.9 Disposals — — (32.0) Cancellations — 0.8 — Settlements 57.0 5.4 — 31 December 2021 (196.7) (391.5) 290.0 Note 1 During the year, the Group merged Finsbury Glover Hering and Sard Verbinnen & Co to form a leading global strategic communications firm. As a part of this transaction, certain management acquired shares in the Company and a put option was granted which allows the equity partners to require the Group to purchase these shares. This resulted in additions to liabilities in respect of put options in the year of £219.6 million. The fair values of financial assets and liabilities are based on quoted market prices where available. Where the market value is not available, the Group has estimated relevant fair values on the basis of available information from outside sources. There have been no movements between level 3 and other levels. Payments due to vendors and liabilities in respect of put options Future anticipated payments due to vendors in respect of contingent consideration (earnout agreements) are recorded at fair value, which is the present value of the expected cash outflows of the obligations. Liabilities in respect of put option agreements are initially recorded at the present value of the redemption amount in accordance with IAS 32 and subsequently measured at fair value in accordance with IFRS 9. Both types of obligations are dependent on the future financial performance of the entity and it is assumed that future profits are in line with Directors' estimates. The Directors derive their estimates from internal business plans together with financial due diligence performed in connection with the acquisition. As of 31 December 2021, 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 £124 million (2020: £nil to £41 million) and £nil to £595 million (2020: £nil to £808 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, and exchange adjustments, partially offset by earnout arrangements related to new acquisitions. At 31 December 2021, the weighted average growth rate in estimating future financial performance was 16.7% (2020: 14.8%), which reflects the prevalence of recent acquisitions in the faster-growing markets and new media sectors. The weighted average of the risk-adjusted discount rate applied to these obligations at 31 December 2021 was 6.5% (2020: 4.0%). A one percentage point increase or decrease in the growth rate in estimated future financial performance would increase or decrease the combined liabilities due to earnout agreements and put options by approximately £6.0 million (2020: £1.5 million) and £6.6 million (2020: £1.4 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 £8.6 million (2020: £2.0 million) and £8.9 million (2020: £2.0 million), respectively. An increase in the liability would result in a loss in the revaluation of financial instruments, while a decrease would result in a gain. Other investments The fair value of other investments included in level 1 is based on quoted market prices. Other investments included in level 3 are unlisted securities, where market value is not readily available. The Group has estimated relevant fair values on the basis of information from outside sources using the most appropriate valuation technique, including all external funding rounds, revenue and EBITDA multiples, 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 0.5 times revenue would result in an increase or decrease in the value of investments and a corresponding credit or charge to equity of £3.8 million. The sensitivity to changes in unobservable inputs is specific to each individual investment. There are no individually material investments designated as fair value through other comprehensive income. |
Authorised and issued share cap
Authorised and issued share capital | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of classes of share capital [abstract] | |
Authorised and issued share capital | 27. Authorised and issued share capital Equity Ordinary Shares Nominal Value Authorised At 1 January 2019 1,750,000,000 175.0 At 31 December 2019 1,750,000,000 175.0 At 31 December 2020 1,750,000,000 175.0 At 31 December 2021 1,750,000,000 175.0 Issued and fully paid At 1 January 2019 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 Exercise of share options 1,000 — Share cancellations (32,088,571) (3.2) At 31 December 2020 1,296,080,242 129.6 Exercise of share options 534,800 — Share cancellations (72,155,492) (7.2) At 31 December 2021 1,224,459,550 122.4 Company’s own shares The Company’s holdings of own shares are stated at cost and represent shares held in treasury and purchases by the Employee Share Ownership Plan (ESOP) trusts of shares in the Company for the purpose of funding certain of the Group’s share-based incentive plans. The trustees of the ESOP purchase the Company’s ordinary shares in the open market using funds provided by the Company. The Company also has an obligation to make regular contributions to the ESOP to enable it to meet its administrative costs. The number and market value of the ordinary shares of the Company held by the ESOP at 31 December 2021 was 5,803,641 (2020: 4,863,244, 2019: 9,219,837), and £65.0 million (2020: £38.9 million, 2019: £98.3 million) respectively. The number and market value of ordinary shares held in treasury at 31 December 2021 was 70,489,953 (2020: 70,748,100, 2019: 70,787,730) and £789.1 million (2020: £566.0 million, 2019: £755.0 million) respectively. Share options WPP Executive Share Option Scheme (WPP) As at 31 December 2021, unexercised options over ordinary shares of 6,741 have been granted under the WPP Executive Share Option Scheme as follows: Number of ordinary 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 2021, unexercised options over ordinary shares of 1,090,954 and unexercised options over ADRs of 191,669 have been granted under the WPP Worldwide Share Ownership Programme as follows: Number of ordinary Exercise price Exercise dates 69,004 8.458 2015 - 2022 792,200 13.145 2017 - 2024 3,625 13.145 2018 - 2024 225,500 13.505 2016 - 2023 625 13.505 2017 - 2023 Number of ADRs Exercise price Exercise dates 23,024 67.490 2015 - 2022 91,660 102.670 2017 - 2024 76,985 110.760 2016 - 2023 WPP Share Option Plan 2015 (WSOP) As at 31 December 2021, unexercised options over ordinary shares of 12,396,275 and unexercised options over ADRs of 1,442,375 have been granted under the WPP Share Option Plan as follows: Number of ordinary Exercise price Exercise dates 11,250 7.344 2023 - 2027 2,525,625 7.344 2023 - 2030 8,750 8.372 2021 - 2025 1,256,150 8.372 2021 - 2028 10,375 9.600 2022 - 2026 1,947,050 9.600 2022 - 2029 3,258,125 11.065 2023 - 2030 9,250 13.085 2020 - 2024 1,329,975 13.085 2020 - 2027 34,250 15.150 2018 - 2022 917,975 15.150 2018 - 2025 4,500 15.150 2019 - 2025 7,500 17.055 2019 - 2023 1,075,500 17.055 2019 - 2026 Number of ADRs Exercise price Exercise dates 279,970 48.950 2023 - 2030 167,410 53.140 2021 - 2028 228,630 62.590 2022 - 2029 378,030 73.780 2023 - 2030 154,820 88.260 2020 - 2027 130,170 105.490 2020 - 2026 103,345 115.940 2018 - 2025 The aggregate status of the WPP Share Option Plans during 2021 was as follows: Movements on options granted (represented in ordinary shares) 1 January 2021 Granted Exercised Forfeited Outstanding 31 December 2021 Exercisable 31 December 2021 WPP 6,741 — — — 6,741 6,741 WWOP 2,499,674 — (54,050) (396,325) 2,049,299 184,124 WSOP 17,940,725 5,155,800 (480,750) (3,007,625) 19,608,150 14,287,525 20,447,140 5,155,800 (534,800) (3,403,950) 21,664,190 14,478,390 Weighted average exercise price for options over 1 January 2021 Granted Exercised Forfeited Outstanding 31 December 2021 Exercisable 31 December 2021 Ordinary shares (£) WPP 9.355 — — — 9.355 9.355 WWOP 12.631 — 7.304 11.803 12.923 8.458 WSOP 10.596 11.065 8.372 10.116 10.854 9.322 ADRs ($) WWOP 98.509 — 49.313 89.225 101.693 67.490 WSOP 70.363 73.780 53.248 66.257 72.228 61.479 Options over ordinary shares Outstanding Range of Weighted average Weighted average 7.344-17.055 11.021 86 Options over ADRs Outstanding Range of Weighted average Weighted average 48.950-115.940 75.684 83 As at 31 December 2021 there was £10.2 million (2020: £7.2 million) of total unrecognised compensation costs related to share options. The cost is expected to be recognised over a weighted average period of 21 months (2020: 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: 2021 2020 2019 Fair value of UK options (shares) 220.0 p 128.0 p 117.0 p Fair value of US options (ADRs) $14.89 $8.95 $8.49 Weighted average assumptions UK risk-free interest rate 0.63 % -0.02 % 0.57 % US risk-free interest rate 1.16 % 0.31 % 1.61 % Expected life (months) 48 48 48 Expected volatility 34 % 34 % 24 % Dividend yield 3.4 % 4.2 % 3.8 % Options are issued at an exercise price equal to market value on the date of grant. The average share price of the Group for the year ended 31 December 2021 was £9.64 (2020: £6.96, 2019: £9.39) and the average ADR price for the same period was $66.44 (2020: $44.56, 2019: $59.93). Expected volatility is sourced from external market data and represents the historical volatility in the Company’s share price over a period equivalent to the expected option life. Expected life is based on a review of historical exercise behaviour in the context of the contractual terms of the options, as described in more detail below. Terms of share option plans In 2015, the Group introduced the Share Option Plan 2015 to replace both the “all-employee” Worldwide Share Ownership Plan and the discretionary Executive Stock Option Plan. Two kinds of options over ordinary shares can be granted, both with a market value exercise price. Firstly, options can be granted to employees who have worked at a company owned by WPP plc for at least two years which are not subject to performance conditions. Secondly, options may be granted on a discretionary basis subject to the satisfaction of performance conditions. The Worldwide Share Ownership Programme was open for participation to employees with at least two years’ employment in the Group. It was not available to those participating in other share-based incentive programmes or to Executive Directors. The vesting period for each grant is three years and there are no performance conditions other than continued employment with the Group. The Executive Stock Option Plan has historically been open for participation to WPP Group Leaders, Partners and High Potential Group. It is not currently offered to Parent Company Executive Directors. The vesting period is three years and performance conditions include achievement of various TSR (Total Shareholder Return) and EPS (Earnings Per Share) objectives, as well as continued employment. The terms of these stock options are such that if, after nine years and eight months, the performance conditions have not been met, the stock option will vest automatically. The Group grants stock options with a life of ten years, including the vesting period. |
Other reserves
Other reserves | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of reserves within equity [abstract] | |
Other reserves | 28. Other reserves Other reserves comprise the following: Capital Equity Hedging reserve 1 £m Translation reserve 1 £m Total Balance at 1 January 2019 2.7 (236.4) — 1,196.1 962.4 Restatement 2 — — — (4.8) (4.8) Restated balance at 1 January 2019 2.7 (236.4) — 1,191.3 957.6 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) Balance at 31 December 2019 3.2 (478.1) — 300.2 (174.7) Exchange adjustments on foreign currency net investments — — — 85.2 85.2 Gain on net investment hedges — — — 9.7 9.7 Loss on cash flow hedges — — (5.9) — (5.9) Share of other comprehensive loss of associate undertakings — — — (61.5) (61.5) Exchange adjustments recycled to the income statement on disposal of discontinued operations — — — (20.6) (20.6) Share cancellations 3.2 — — — 3.2 Recognition/derecognition of liabilities in respect of put options — 103.5 — — 103.5 Share purchases – close period commitments — 252.3 — — 252.3 Balance at 31 December 2020 6.4 (122.3) (5.9) 313.0 191.2 Exchange adjustments on foreign currency net investments — — — (94.7) (94.7) Gain on net investment hedges — — — 45.5 45.5 Loss on cash flow hedges — — (38.0) — (38.0) Share of other comprehensive income of associate undertakings — — — 7.3 7.3 Share cancellations 7.2 — — — 7.2 Recognition/derecognition of liabilities in respect of put options — (242.7) — — (242.7) Share purchases – close period commitments — (211.7) — — (211.7) Balance at 31 December 2021 13.6 (576.7) (43.9) 271.1 (335.9) Notes 1 Prior year figures have been re-presented to separately disclose the hedging reserve included previously within the translation reserve. 2 Other reserves and retained earnings have been restated for the impact of a tax restatement, as described in the accounting policies. The equity reserve primarily relates to the recognition of liabilities in respect of put options agreements entered into by the Group as part of a business combination that allows non-controlling shareholders to sell their shares to the Group in the future. During 2021, the Company entered into an agreement with a third party to conduct share buybacks on its behalf in the close period commencing on 16 December 2021 and ending on 18 February 2022, in accordance with UK listing rules. The commitment resulting from this agreement constituted a liability at 31 December 2021 and was also recognised as a movement in the equity reserve in the year ended 31 December 2021. The hedging reserve comprises the effective portion of the cumulative net change in fair value of cash flow hedges. The translation reserve contains the accumulated gains/(losses) on currency translation of foreign operations arising on consolidation and fair value gains/(losses) on net investment hedges. The translation reserve comprises: 2021 £m 2020 £m 2019 £m Balance relating to continuing net investment hedges (2.3) 9.7 — Balance relating to discontinued net investment hedges (85.0) (142.5) (142.5) Balance related to retranslation of foreign currency net investments 358.4 445.8 442.7 271.1 313.0 300.2 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about business combination [abstract] | |
Acquisitions | 29. Acquisitions The Group accounts for acquisitions in accordance with IFRS 3 Business Combinations. IFRS 3 requires the acquiree’s identifiable assets, liabilities and contingent liabilities (other than non-current assets or disposal groups held for sale) to be recognised at fair value at acquisition date. In assessing fair value at acquisition date, management make their best estimate of the likely outcome where the fair value of an asset or liability may be contingent on a future event. In certain instances, the underlying transaction giving rise to an estimate may not be resolved until some years after the acquisition date. IFRS 3 requires the release to profit of any acquisition reserves which subsequently become excess in the same way as any excess costs over those provided at acquisition date are charged to profit. At each period end management assess provisions and other balances established in respect of acquisitions for their continued probability of occurrence and amend the relevant value accordingly through the consolidated income statement or as an adjustment to goodwill as appropriate under IFRS 3. The Group acquired a number of subsidiaries in the year. 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 value Intangible assets — 97.7 97.7 Right-of-use assets 36.6 (3.4) 33.2 Property, plant and equipment 4.0 — 4.0 Cash and cash equivalents (2.3) — (2.3) Trade receivables due within one year 40.0 — 40.0 Other current assets 5.9 0.9 6.8 Total assets 84.2 95.2 179.4 Current liabilities (28.5) (0.3) (28.8) Trade and other payables due after one year (2.3) (5.8) (8.1) Deferred tax liabilities — (22.5) (22.5) Long-term lease liabilities (34.2) — (34.2) Total liabilities (65.0) (28.6) (93.6) Net assets 19.2 66.6 85.8 Non-controlling interests (3.0) Goodwill 331.9 Consideration 414.7 Consideration satisfied by: Cash 225.9 Equity instruments of subsidiary company 110.8 Payments due to vendors 78.0 Equity instruments of the subsidiary company relate to shares issued by FGH SVC Holdco Inc. and represent 16.5% ownership of this subsidiary company. WPP retains a 57.9% stake in FGH SVC Holdco Inc. following this transaction. Increases in non-controlling interests in the period arising from the acquisition of subsidiaries are due to changes in ownership of existing subsidiaries and both increases in the non-controlling interests that arise on acquisition of a new subsidiary, as noted in the table above, along with the impact of share issuances in subsidiaries that contain non-controlling interests as a part of the overall acquisition arrangement, but occurring immediately prior to the acquisition of a new subsidiary. 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 £83.9 million. Non-controlling interests in acquired companies are measured at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets. There continues to be no subsidiaries with non-controlling interests that are individually material to the Group. The contribution to revenue and operating profit of acquisitions completed in the year was not material. There were no material acquisitions completed between 31 December 2021 and the date the financial statements have been authorised for issue. There were no material acquisitions completed in the years ended 31 December 2020 and 2019. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of transactions between related parties [abstract] | |
Related party transactions | 30. Related party transactions The Group enters into transactions with its associate undertakings. The Group has continuing transactions with Kantar, including sales, purchases, the provision of IT services, subleases and property related items. In the year ended 31 December 2021, revenue of £117.2 million (2020: £90.6 million) was reported in relation to Compas, an associate in the USA. All other transactions in the years presented were immaterial. The Group invested a further £92.9 million in Kantar in 2021 to fund its 40% share of the Numerator acquisition. The following amounts were outstanding at 31 December: 2021 2020 £m £m Amounts owed by related parties Kantar 30.3 39.0 Other 45.7 27.9 76.0 66.9 Amounts owed to related parties Kantar (6.2) (5.6) Other (51.4) (36.0) (57.6) (41.6) |
Reconciliation of operating pro
Reconciliation of operating profit/(loss) to headline operating profit | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of reconciliation of profit before interest and taxation to headline PBIT [abstract] | |
Reconciliation of operating profit/(loss) to headline operating profit | 31. Reconciliation of operating profit/(loss) to headline operating profit Reconciliation of operating profit/(loss) to headline operating profit: 2021 2020 2019 Continuing operations £m £m £m Operating profit/(loss) 1,229.0 (2,278.1) 1,295.9 Amortisation and impairment of acquired intangible assets 97.8 89.1 121.5 Goodwill impairment 1.8 2,822.9 47.7 Losses/(gains) on disposal of investments and subsidiaries 10.6 (7.8) (40.4) Gains on remeasurement of equity interests arising from a change in scope of ownership — (0.6) (0.4) Investment and other impairment (reversals)/charges (42.4) 296.2 7.5 Litigation settlement 21.3 25.6 (16.8) Gain on sale of freehold property in New York — — (7.9) Restructuring and transformation costs 145.5 80.7 153.5 Restructuring costs in relation to Covid-19 29.9 232.5 — Headline operating profit 1,493.5 1,260.5 1,560.6 Headline operating profit is one of the metrics that management uses to assess the performance of the business. Reconciling items in the above table are components of operating profit/(loss), which are included in Note 3: Costs of Services and General Administrative Costs. |
Events after reporting period
Events after reporting period | 12 Months Ended |
Dec. 31, 2021 | |
Events After Reporting Period [Abstract] | |
Events after reporting period | 32. Events after the reporting period On 4 March 2022, due to the Russian invasion of Ukraine, the Board of WPP announced its intention to discontinue operations in Russia. In 2021, Russia represented 0.8% of the Group's revenue. |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of preparation | Basis of preparation The consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of certain financial instruments 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 approved by the Board of Directors and authorized for issue on 6 April 2022. |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the results of the Company and all its subsidiary undertakings made up to the same accounting date. All intra-Group balances, transactions, income and expenses are eliminated in full on consolidation. The results of subsidiary undertakings acquired or disposed of during the period are included or excluded from the consolidated income statement from the effective date of acquisition or disposal. |
New IFRS accounting pronouncements | New IFRS accounting pronouncements In the current year, the following Standards and Interpretations became effective: – Interest Rate Benchmark Reform - Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16); – Covid-19 Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16); and – IFRIC Agenda Decision on Accounting Treatment for Configuration and Customisation Costs in a Cloud Computing Arrangement. The Group does not consider that other standards or amendments to standards adopted during the year have a significant impact on the financial statements. |
Impact of Other Items | Impact of Interest Rate Benchmark Reform - Phase 2 The amendments issued by the IASB, Interest Rate Benchmark Reform - Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16), are mandatory and were effective from 1 January 2021. They provide relief on certain existing requirements in IFRS Standards, relating to modifications of financial instruments and lease contracts or hedging relationships triggered by a replacement of a benchmark interest rate in a contract with a new alternative benchmark rate, as a result of Interest Rate Benchmark Reform. The Group does not consider that these amendments had a significant impact on the financial statements as they provide relief for the possible effects of the uncertainty arising from interest rate benchmark reform. Impact of COVID-19-Related Rent Concessions beyond 30 June 2021 The amendment to IFRS 16, Covid-19-Related Rent Concessions beyond 30 June 2021, was issued by the IASB in March 2021 and was effective from 1 April 2021. It provides an extension to the period under which practical relief to lessees could be applied in accounting for rent concessions occurring as a direct consequence of Covid-19, as introduced in the original amendment, Covid-19-Related Concessions (Amendment to IFRS 16). There has been no material impact to our financial statements as a result of the application of this amendment. Impact of IFRIC Agenda Decision on Accounting Treatment for Configuration and Customisation Costs in a Cloud Computing Arrangement In April 2021, an IFRIC agenda decision was issued in relation to the accounting treatment for configuration and customisation costs in a cloud computing arrangement. This guidance clarified that in order for an intangible asset to be capitalised in relation to customisation and configuration costs in a software-as-a service (SaaS) arrangement, it is necessary for there to be control of the underlying software asset or for there to be a separate intangible asset which meets the definition in IAS 38 Intangible Assets. In 2020, as part of the Group's transformation plan, the Group commenced a multi-year implementation of a cloud-based ERP and human capital management tool. The Group has completed its assessment of the financial reporting impact of this agenda decision on this implementation and has changed the accounting policy in the financial statements to align with the clarified guidance within the IFRIC agenda decision. As a result, the Group has expensed all costs associated with this implementation, which amount to £62.2 million as at 31 December 2021. This balance includes costs that were previously capitalised as at 31 December 2020 of £14.0 million. At the date of authorisation of these financial statements, there were a number of standards or amendments to standards, which have not been applied in these financial statements, that were in issue but not yet effective. The Group does not consider that any of these standards or amendments to standards in issue but not yet effective will have a significant impact on the financial statements. |
Restatement | Restatement During 2021, the Group determined that the financial statements for the prior periods contained errors relating to historic tax asset and liability adjustments that had accumulated over a number of years in the Group consolidation. As a result, previously reported corporate income tax recoverable, corporate income tax payable and tax charge were incorrect. The cumulative impact resulted in an overstatement of equity as at 31 December 2018 of £106.3 million, which has been corrected by reducing the 2019 opening retained earnings by £101.5 million and other reserves by £4.8 million. Corporate income tax recoverable has reduced by £22.8 million (2019: £22.8 million) and corporate income tax payable increased by £93.5 million (2019: £95.7 million) on the consolidated balance sheet at 31 December 2020. These changes also decreased the tax charge in the year ended 31 December 2020 by £2.2 million (2019: increase of £12.2 million). The restatement resulted in an increase in the basic and diluted earnings per share from continuing and discontinued operations of 0.2p and 0.2p, respectively, for the year ended 31 December 2020 (2019: decrease of 1.0p and 0.9p respectively). |
Government support | Government support In reaction to the Covid-19 pandemic, certain governments have introduced measures to assist companies. A reduction to operating costs is recorded in relation to government subsidies/schemes where these amounts will never have to be repaid. Further details of such amounts are included in note 3. In other cases, this involves the deferral of certain tax payments in order to stimulate the economy. The deferral of payments does not impact the income statement and these are charged as normal in the period they are incurred. |
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 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 years; • computer equipment – 3-5 years. |
Interests in associates and joint ventures | Interests in associates and joint ventures An associate is an entity over which the Group has significant influence. In certain circumstances, significant influence may be represented by factors other than ownership and voting rights, such as representation on the Board of Directors. The Group’s share of the profits less losses of associate undertakings net of tax, interest and non-controlling interests is included in the consolidated income statement and the Group’s share of net assets is shown within interests in associates in the consolidated balance sheet. The Group’s share of the profits less losses and net assets is based on current information produced by the undertakings, adjusted to conform with the accounting policies of the Group. The Group assesses the carrying value of its associate undertakings to determine if any impairment has occurred. Where this indicates that an investment may be impaired, the Group applies the requirements of IAS 36 in assessing the carrying amount of the investment. This process includes comparing its recoverable amount with its carrying value. The 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 is recognised as “held for sale”. The Group has classified 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, is part of a single co-ordinated plan to dispose of such a line of business or 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 loss allowances. Work in progress includes outlays incurred on behalf of clients, including production costs, and other third-party costs that have not yet been billed and are considered receivables under IFRS 15 Revenue from Contracts with Customers. |
Expected credit losses | Expected credit losses The Group has applied the simplified approach to measuring expected credit losses, as permitted by IFRS 9 Financial Instruments. This has been applied to trade receivables, contract assets and lease receivables. Under this approach, the Group utilises a provision matrix based on the age of the trade receivables and historical loss rates to determine the expected credit losses. The Group also considers forward-looking information. Therefore, the Group does not track changes in credit risk, but recognises a loss allowance based on the financial asset’s lifetime expected credit loss. For all other assets, the general approach has been applied and a loss allowance for 12-month expected credit losses is recognised. Under IFRS 9, the expected credit losses are measured as the difference between the asset’s gross carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. Given the short-term nature of the Group’s trade receivables, work in progress and accrued income, which are mainly due from large national or multinational companies, the Group’s assessment of expected credit losses includes provisions for specific clients and receivables where the contractual cash flow is deemed at risk. Further details on expected credit losses 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 Group 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 26 contains details of the fair values of the derivative instruments used for hedging purposes. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in profit or loss immediately, together with any changes in the fair value of the hedged items that are attributable to the hedged risk. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow or net investment hedges is recognised in other comprehensive income and deferred in equity. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. Amounts deferred in equity are recycled in profit or loss in the periods when the hedged item is recognised in profit or loss. However, when the forecast transaction that is hedged results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the asset or liability. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained in equity until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in equity is transferred to net profit or loss for the period. Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of host contracts and the host contracts are not carried at fair value with unrealised gains or losses reported in the consolidated income statement. |
Liabilities in respect of option agreements | Liabilities in respect of option agreements Option agreements that allow the Group’s equity partners to require the Group to purchase a non-controlling interest are treated as derivatives over the Group's own equity instruments and are recorded in the consolidated balance sheet initially at the present value of the redemption amount in accordance with IAS 32 Financial Instruments: Presentation and subsequently, the financial liability is measured in accordance with IFRS 9 Financial Instruments. On initial recognition, the corresponding amount is recognised against the equity reserve, which is subsequently reversed on derecognition, either through exercise or non-exercise of the option agreement. Changes in the measurement of the financial liability due to the unwinding of the discount or changes in the amount that the Group could be required to pay are recognised in profit or loss within revaluation and retranslation of financial instruments in the consolidated income statement. |
Derecognition of financial liabilities | Derecognition of financial liabilities In accordance with IFRS 9 Financial Instruments, a financial liability of the Group is only 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. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand and short-term highly liquid investments which are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value, including bank deposits and money market funds. The Group’s overdrafts are included in cash and cash equivalents where they are repayable on demand, are components of the Group’s centralised treasury strategy employed across the Group and form an integral part of the Group’s cash management, in accordance with IAS 7 Statement of Cash Flows. |
Borrowing costs | Borrowing costs Finance costs of borrowing are recognised in the consolidated income statement over the term of those borrowings. |
Revenue recognition | Revenue recognition The Group is a leading worldwide creative transformation organisation offering national and multinational clients a comprehensive range of communications, experience, commerce and technology services. Contracts often involve multiple agencies offering different services in different countries. As such, the terms of local, regional and global contracts can vary to meet client needs and regulatory requirements. Consistent with the industry, contracts are typically short-term in nature and tend to be cancellable by either party with 90 days’ notice. The Group is generally entitled to payment for work performed to date. The Group is generally paid in arrears for its services. Invoices are typically payable within 30 to 60 days. Revenue comprises commissions and fees earned in respect of amounts billed and is stated exclusive of VAT, sales taxes and trade discounts. Pass-through costs comprise fees paid to external suppliers when they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media 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 stand-alone selling prices. Revenue is recognised when a performance obligation is satisfied, in accordance with the terms of the contractual arrangement. Typically, performance obligations are satisfied over time as services are rendered. Revenue recognised over time is based on the proportion of the level of service performed. Either an input method or an output method, depending on the particular arrangement, is used to measure progress for each performance obligation. For most fee arrangements, costs incurred are used as an objective input measure of performance. The primary input of substantially all work performed under these arrangements is labour. There is normally a direct relationship between costs incurred and the proportion of the contract performed to date. In other circumstances relevant output measures, such as the achievement of any project milestones stipulated in the contract, are used to assess proportional performance. For our retainer arrangements, we have a stand-ready obligation to perform services on an ongoing basis over the life of the contract. The scope of these arrangements is broad and generally not reconcilable to another input or output criteria. In these instances, revenue is recognised using a time-based method resulting in straight-line revenue recognition. The amount of revenue recognised depends on whether we act as an agent or as a principal. Certain arrangements with our clients are such that our responsibility is to arrange for a third party to provide a specified good or service to the client. In these cases we are acting as an agent as we do not control the relevant good or service before it is transferred to the client. When we act as an agent, the revenue recorded is the net amount retained. Costs incurred with external suppliers (such as production costs and media suppliers) are excluded from revenue and recorded as 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 production services, events and branding), the revenue recorded is the gross amount billed. Billings related to out-of-pocket costs such as travel are also recognised at the gross amount billed with a corresponding amount recorded as an expense. Further details on revenue recognition are detailed by sector below. Global Integrated Agencies Revenue is typically derived from integrated product offerings including media placements and creative services. Revenue may consist of various arrangements involving commissions, fees, incentive-based revenue or a combination of the three, as agreed upon with each client. Revenue for commissions on purchased media is typically recognised at the point in time the media is run. The Group receives volume rebates from certain suppliers for transactions entered into on behalf of clients that, based on the terms of the relevant contracts and local law, are either remitted to clients or retained by the Group. If amounts are passed on to clients they are recorded as liabilities until settled or, if retained by the Group, are recorded as revenue when earned. Variable incentive-based revenue typically comprises both quantitative and qualitative elements. Incentive compensation is estimated using the most likely amount and is included in revenue up to the amount that is highly probable not to result in a significant reversal of cumulative revenue recognised. 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 |
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 other comprehensive income. Where defined benefit plans are funded, the assets of the plan are held separately from those of the Group, in separate independently managed funds. Pension plan assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent currency and term to the plan liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. Recognition of a surplus in a defined benefit plan is limited based on the economic gain the 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 such as onerous contracts and dilapidations. Also included are other provisions, primarily long-term employee benefits such as deferred compensation plans, and legal claims, where the likelihood of settlement is considered probable. |
Leases | Leases The Group leases most of its offices in cities where it operates. Other lease contracts include office equipment and motor vehicles. At inception of a contract, the Group assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred, less any lease incentives received. The assets are depreciated over the term of the lease using the straight-line method. The lease term includes periods covered by an option to extend if the Group is reasonably certain to exercise that option. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate for the same term as the underlying lease. Lease payments included in the measurement of lease liabilities comprise fixed payments less any lease incentives receivable and variable lease payments that depend on an index or a rate as at the commencement date. Lease modifications result in remeasurement of the lease liability. Depreciation is recognised in both costs of services and general and administrative costs and interest expense is recognised under finance costs in the consolidated income statement. The Group has elected to use the exemption not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets (under $5,000). The payments associated with these leases are recognised as cost of services and general and administrative costs within the consolidated income statement on a straight-line basis over the lease term. The Group assesses at the reporting date whether there are any indicators of impairment and performs an impairment test when an impairment indicator exists. The Group tests a right-of use asset as a stand-alone asset for impairment when it either meets the definition of investment property which generates independent cash flows or it is vacant with minimal to no continued utility for the Company. When a right-of-use asset is tested as a stand-alone asset, an impairment loss is recognised when the carrying amount of the right-of-use asset exceeds its recoverable amount. The recoverable amount of a right-of-use asset is estimated mainly based on the present value of the estimated sublease income, discounted using the property yield rates. The property held by the Group as right-of-use assets to earn rentals is classified as investment property. The Company measures its investment property applying the cost model. |
Translation of foreign currencies | Translation of foreign currencies Foreign currency transactions arising from normal trading activities are recorded at the rates in effect at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the year-end are translated at the year-end exchange rate. Foreign currency gains and losses are credited or charged to the consolidated income statement as they arise. The income statements of foreign subsidiary undertakings are translated into pounds sterling at average exchange rates and the year-end net assets of these companies are translated at year-end exchange rates. Exchange differences arising from retranslation of the opening net assets and on foreign currency borrowings (to the extent that they hedge the Group’s investment in such operations) are reported in the consolidated statement of comprehensive income. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. |
Hyperinflation in Argentina | Hyperinflation in Argentina During 2021, 2020 and 2019, Argentina was designated as a hyperinflationary economy and the financial statements of the Group’s subsidiaries in Argentina have been adjusted for the effects of inflation in accordance with IAS 29 Financial Reporting in Hyperinflationary Economies. IAS 29 requires that the income statement is adjusted for inflation in the period and translated at the year-end foreign exchange rate and that non-monetary assets and liabilities on the balance sheet are restated to reflect the change in purchasing power caused by inflation from the date of initial recognition. In 2021, this resulted in an increase in goodwill of £23.9 million (2020: £22.6 million, 2019: £41.0 million), an increase in other intangibles of £7.6 million (2020: £5.3 million, 2019: £7.1 million), and an increase in property, plant and equipment of £20.3 million (2020: £19.3 million, 2019: £10.7 million). A consumer price index (CPI) of 582.5 was used at 31 December 2021 (2020: 385.9, 2019: 283.4). The impact on other non-monetary assets and liabilities and the impact on the Group’s income statement in the year were immaterial. |
Share-based payments | Share-based payments The Group issues equity-settled share-based payments (including share options) to certain employees and accounts for these awards in accordance with IFRS 2 Share-Based Payment. Equity-settled share-based payments are measured at fair value (excluding the effect of non-market-based vesting conditions) at the date of grant. Details regarding the fair value of equity settled share-based transactions are set out in notes 23 and 27. The fair value determined at the grant date is recognised in the consolidated income statement as an expense on a straight-line basis over the relevant vesting period, based on the Group’s estimate of the number of shares that will ultimately vest and adjusted for the effect of non-market-based vesting conditions. |
Non-controlling interests | Non-controlling interests Non-controlling interests in acquired companies are measured at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets. The acquisition of a non-controlling interest in a subsidiary, and the sale of an interest while retaining control, is accounted for within equity, and the cash cost of such purchases is included within “financing activities” in the cash flow statement. |
Critical judgements and estimation uncertainty in applying accounting policies | Critical judgements and estimation uncertainty in applying accounting policies Management is required to make key decisions and judgements whilst acknowledging there is estimation uncertainty in the process of applying the Group’s accounting policies. These estimates and judgements are reviewed on an ongoing basis. Where judgement has been applied or estimation uncertainty exists, the key factors taken into consideration are disclosed in the accounting policies and the appropriate note in these financial statements. The most significant 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, and sensitivities to these estimates are set out in note 14; • 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; |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
General Information and Statement of IFRS Compliance [Abstract] | |
Contributions by Reportable Segments | Reported contributions were as follows: Continuing operations – Income statement Revenue 1 Revenue less pass-through costs 2 Headline operating profit 3 £m £m £m 2021 Global Integrated Agencies 10,836.3 8,638.7 1,215.5 Public Relations 959.0 909.7 143.1 Specialist Agencies 1,005.8 848.8 134.9 12,801.1 1,493.5 2020 4 Global Integrated Agencies 10,265.5 8,194.2 1,059.9 Public Relations 892.9 854.4 141.3 Specialist Agencies 844.4 713.4 59.3 12,002.8 1,260.5 2019 4 Global Integrated Agencies 11,269.2 9,090.4 1,358.6 Public Relations 956.5 898.0 140.6 Specialist Agencies 1,008.4 858.1 61.4 13,234.1 1,560.6 Notes 1 Intersegment sales have not been separately disclosed as they are not material. 2 Revenue less pass-through costs is revenue less media and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. 3 A reconciliation from operating profit to headline operating profit is provided in note 31. 4 Prior year figures have been re-presented to reflect the changes to segments described above. Continuing operations – Other information Share-based Capital additions 1 Depreciation and amortisation 2 Goodwill Share of Interests in £m £m £m £m £m £m 2021 Global Integrated Agencies 92.3 252.7 372.8 — 22.7 115.2 Public Relations 4.8 17.9 28.1 — 1.7 8.0 Specialist Agencies 3 2.5 22.5 43.1 1.8 (0.6) 289.7 99.6 293.1 444.0 1.8 23.8 412.9 2020 4 Global Integrated Agencies 61.3 234.2 449.7 2,355.1 19.0 158.4 Public Relations 8.0 15.5 32.8 161.5 1.3 6.4 Specialist Agencies 3 5.1 22.9 59.4 306.3 (156.3) 165.9 74.4 272.6 541.9 2,822.9 (136.0) 330.7 2019 4 Global Integrated Agencies 57.2 284.5 424.6 4.8 16.8 164.6 Public Relations 4.6 17.5 31.5 — (0.3) 5.5 Specialist Agencies 3 4.2 27.8 52.2 42.9 (1.8) 642.9 66.0 329.8 508.3 47.7 14.7 813.0 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 Specialist Agencies includes the Kantar associates and amounts previously reported under the Data Investment Management segment. 4 Prior year figures have been re-presented to reflect the changes to segments described above. |
Contributions by Geographical Area | Contributions by geographical area were as follows: 2021 2020 2019 Continuing operations £m £m £m Revenue 1 North America 2 4,494.2 4,464.9 4,854.7 United Kingdom 1,866.9 1,637.0 1,797.1 Western Continental Europe 2,786.3 2,441.6 2,628.8 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 3,653.7 3,459.3 3,953.5 12,801.1 12,002.8 13,234.1 Revenue less pass-through costs 3 North America 2 3,849.2 3,743.4 4,034.3 United Kingdom 1,414.3 1,233.8 1,390.1 Western Continental Europe 2,225.4 2,019.4 2,176.4 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 2,908.3 2,765.4 3,245.7 Headline operating profit 4 North America 2 655.7 611.9 662.0 United Kingdom 180.9 137.7 188.5 Western Continental Europe 288.6 198.7 261.5 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 368.3 312.2 448.6 1,493.5 1,260.5 1,560.6 Notes 1 Intersegment sales have not been separately disclosed as they are not material. 2 North America includes the United States with revenue of £4,220.8 million (2020: £4,216.1 million, 2019: £4,576.5 million), revenue less pass-through costs of £3,597.4 million (2020: £3,524.8 million, 2019: £3,806.3 million) and headline operating profit of £615.2 million (2020: £563.7 million, 2019: £620.6 million). 3 Revenue less pass-through costs is revenue less media and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media costs. See note 3 to the consolidated financial statements for more details of the pass-through costs. 4 A reconciliation from operating profit to headline operating profit is provided in note 31. 2021 2020 Continuing operations £m £m Non-current assets 1 North America 2 5,075.4 4,962.1 United Kingdom 1,565.4 1,488.7 Western Continental Europe 2,618.8 2,745.0 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 2,933.6 2,767.1 12,193.2 11,962.9 Notes 1 Non-current assets excluding financial instruments and deferred tax. |
Costs of services and general_2
Costs of services and general and administrative costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Costs of Services and General Administrative Costs | 2021 2020 2019 Continuing operations £m £m £m Costs of services 10,597.5 9,987.9 10,825.1 General and administrative costs 974.6 4,293.0 1,113.1 11,572.1 14,280.9 11,938.2 Costs of services and general and administrative costs include: 2021 2020 2019 Continuing operations £m £m £m Staff costs (note 5) 7,166.7 6,556.5 7,090.6 Establishment costs 529.0 638.5 672.9 Media pass-through costs 1,865.3 1,555.2 1,656.2 Other costs of services and general and administrative costs 1 2,011.1 5,530.7 2,518.5 11,572.1 14,280.9 11,938.2 Included within costs of services and general administrative costs are the following: 2021 2020 2019 Continuing operations £m £m £m Goodwill impairment (note 14) 1.8 2,822.9 47.7 Investment and other impairment (reversals)/charges (42.4) 296.2 7.5 Restructuring and transformation costs 145.5 80.7 153.5 Restructuring costs in relation to Covid-19 29.9 232.5 — Litigation settlement 21.3 25.6 (16.8) Gain on sale of freehold property in New York — — (7.9) Amortisation and impairment of acquired intangible assets 97.8 89.1 121.5 Amortisation of other intangible assets 19.9 35.2 21.2 Depreciation of property, plant and equipment 151.2 174.8 185.5 Depreciation of right-of-use assets 272.9 331.9 301.6 (Gains)/losses on sale of property, plant and equipment (1.3) 0.3 3.2 Losses/(gains) on disposal of investments and subsidiaries 10.6 (7.8) (40.4) Gains on remeasurement of equity interests arising from a change in scope of ownership — (0.6) (0.4) Net foreign exchange losses 4.4 5.9 6.1 Short-term lease expense 18.0 36.7 83.8 Low-value lease expense 2.3 2.3 2.9 Note 1 Other costs of services and general and administrative costs include £538.6 million (2020: £685.6 million, 2019: £731.4 million) of other pass-through costs. |
Auditors' Remuneration | Auditors’ remuneration: 2021 2020 2019 £m £m £m Fees payable to the Company’s auditors for the audit of the Company’s annual accounts 7.1 6.4 6.5 Fees payable for the audit of the Company’s subsidiaries 24.8 22.9 28.0 Fees payable to the auditors pursuant to legislation 31.9 29.3 34.5 Audit-related services 1 0.4 0.4 0.4 Other services 2 1.4 0.7 7.8 Tax compliance services — 0.1 — Total other fees 1.8 1.2 8.2 Total fees 33.7 30.5 42.7 Notes 1 Audit-related assurance services are in respect of the review of the interim financial information. 2 Other services include audits for earnout purposes. |
Share of results of associates
Share of results of associates (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of associates [abstract] | |
Summary of Share of Results of Associates | Share of results of associates includes: 2021 2020 2019 Continuing operations £m £m £m Share of profit before interest and taxation 208.5 142.5 99.2 Share of exceptional losses (62.3) (146.1) (47.8) Share of interest and non-controlling interests (83.9) (91.4) (19.4) Share of taxation (38.5) (41.0) (17.3) 23.8 (136.0) 14.7 |
Our people (Tables)
Our people (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Number and average number of employees [abstract] | |
Geographical Distribution of Staff | Our staff numbers averaged 104,808 for the year ended 31 December 2021 against 104,163 in 2020 and 132,823 in 2019. Their geographical distribution was as follows: 2021 2020 2019 North America 21,764 21,524 25,008 United Kingdom 10,995 10,670 14,192 Western Continental Europe 21,514 21,551 26,973 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 50,535 50,418 66,650 104,808 104,163 132,823 |
Reportable Segment Distribution of Staff | Their reportable segment distribution was as follows: 2021 2020 1 2019 1 Global Integrated Agencies 89,701 88,406 90,582 Data Investment Management — 1,341 26,325 Public Relations 7,121 6,810 6,890 Specialist Agencies 7,986 7,606 9,026 104,808 104,163 132,823 Note 1 Prior year figures have been re-presented to reflect the changes to segments described in note 2. |
Staff costs | Staff costs include: 2021 2020 2019 Continuing operations £m £m £m Wages and salaries 4,797.2 4,781.0 4,946.2 Cash-based incentive plans 455.2 110.7 227.6 Share-based incentive plans 99.6 74.4 66.0 Social security costs 630.1 570.9 591.7 Pension costs 177.7 171.7 169.7 Severance 41.8 68.2 42.6 Other staff costs 1 965.1 779.6 1,046.8 7,166.7 6,556.5 7,090.6 Note 1 Freelance and temporary staff costs are included in other staff costs. |
Summary of Compensation for key Management Personnel | Compensation for key management personnel includes: 2021 2020 2019 £m £m £m Short-term employee benefits 28.0 17.9 18.3 Pensions and other post-retirement benefits 0.9 1.0 1.0 Share-based payments 14.6 10.3 10.8 43.5 29.2 30.1 |
Finance and investment income_2
Finance and investment income, finance costs and revaluation and retranslation of financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Summary of Finance and Investment Income, Finance Costs and Revaluation and retranslation of Financial Instruments | Finance and investment income includes: 2021 2020 2019 Continuing operations £m £m £m Income from equity investments 17.9 8.7 18.3 Interest income 51.5 74.0 80.7 69.4 82.7 99.0 Finance costs include: 2021 2020 2019 Continuing operations £m £m £m Net interest expense on pension plans 1.8 2.9 3.5 Interest on other long-term employee benefits 2.4 3.1 3.9 Interest expense and similar charges 1 188.5 205.0 252.0 Interest expense related to lease liabilities 90.9 101.0 99.7 283.6 312.0 359.1 Revaluation and retranslation of financial instruments include: 2021 2020 2019 Continuing operations £m £m £m Movements in fair value of treasury instruments 9.1 15.4 0.4 Premium on the early repayment of bonds (13.0) — (63.4) Revaluation of investments held at fair value through profit or loss (7.5) 8.0 9.1 Revaluation of put options over non-controlling interests (40.6) 12.3 (24.3) Revaluation of payments due to vendors (earnout agreements) (58.7) 13.4 (3.7) Retranslation of financial instruments 22.9 (196.3) 245.7 (87.8) (147.2) 163.8 Note 1 Interest expense and similar charges are payable on bank overdrafts, bonds and bank loans held at amortised cost. |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Major components of tax expense (income) [abstract] | |
Tax Charge | The tax charge comprises: 2021 2020 1 2019 1 Continuing operations £m £m £m Corporation tax Current year 404.0 307.8 435.2 Prior years (41.4) (83.2) (63.4) 362.6 224.6 371.8 Deferred tax Current year (131.0) (80.2) (78.3) Prior years (1.5) (17.3) (6.3) (132.5) (97.5) (84.6) Tax charge 230.1 127.1 287.2 Note 1 Figures have been restated as described in the accounting policies. |
Tax Charge Reconciled to Profit Before Taxation | The tax charge for the year can be reconciled to profit/(loss) before taxation in the consolidated income statement as follows: 2021 2020 1 2019 1 Continuing operations £m £m £m Profit/(loss) before taxation 950.8 (2,790.6) 1,214.3 Tax at the corporation tax rate of 19.0% 2 180.7 (530.2) 230.7 Tax effect of share of results of associates (13.3) 16.2 (2.7) Irrecoverable withholding taxes 52.3 49.4 44.7 Items that are not deductible in determining taxable profit 29.3 67.0 53.7 Goodwill impairment 0.6 542.4 10.4 Effect of different tax rates in subsidiaries operating in other jurisdictions 81.2 92.7 77.1 Origination and reversal on unrecognised temporary differences (36.3) (29.3) (3.4) Tax losses not recognised or utilised in the year 7.4 21.1 13.2 Utilisation of tax losses not previously recognised (5.1) (1.7) (42.7) Recognition of temporary differences not previously recognised — — (24.1) Net release of prior year provisions in relation to acquired businesses (1.1) (1.7) (19.9) Other prior year adjustments (41.8) (98.8) (49.8) Impact of deferred tax rate change (23.8) — — Tax charge 230.1 127.1 287.2 Effective tax rate on profit/(loss) before tax 24.2 % (4.6) % 23.7 % Notes 1 Figures have been restated as described in the accounting policies. 2 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% (2020: 19.0%, 2019: 19.0%). |
Ordinary dividends (Tables)
Ordinary dividends (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Dividends [abstract] | |
Summary of Ordinary Dividends | Amounts recognised as distributions to equity holders in the year: 2021 2020 2019 2021 2020 2019 Per share Pence per share £m £m £m 2020 Final dividend 14.00 p — 37.30 p 167.7 — 466.4 2021 Interim dividend 12.50 p 10.00 p 22.70 p 147.0 122.0 284.1 26.50 p 10.00 p 60.00 p 314.7 122.0 750.5 |
Summary of Proposed Final Dividend | Proposed final dividend for the year ended 31 December 2021: 2021 2020 2019 Per share Pence per share Final dividend 18.70 p 14.00 p — |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share [abstract] | |
Calculation of Basic and Diluted EPS | Basic EPS The calculation of basic EPS is as follows: Continuing operations 2021 2020 1 2019 1 Earnings 2 (£m) 637.7 (2,971.6) 847.9 Weighted average shares used in basic EPS calculation (m) 1,194.1 1,223.0 1,250.0 EPS 53.4p (243.0p) 67.8p Discontinued operations 2021 2020 2019 Earnings 2 (£m) — 6.5 (3.8) Weighted average shares used in basic EPS calculation (m) — 1,223.0 1,250.0 EPS — 0.5p (0.3p) Continuing and discontinued operations 2021 2020 1 2019 1 Earnings 2 (£m) 637.7 (2,965.1) 844.1 Weighted average shares used in basic EPS calculation (m) 1,194.1 1,223.0 1,250.0 EPS 53.4p (242.5p) 67.5p Notes 1 Figures have been restated as described in the accounting policies. 2 Earnings is equivalent to profit/(loss) for the year attributable to equity holders of the parent. Diluted EPS The calculation of diluted EPS is as follows: Continuing operations 2021 2020 1 2019 1 Diluted earnings (£m) 637.7 (2,971.6) 847.9 Weighted average shares used in diluted EPS calculation (m) 2 1,215.3 1,223.0 1,260.6 Diluted EPS 52.5 p (243.0 p) 67.3 p Discontinued operations 2021 2020 2019 Diluted earnings (£m) — 6.5 (3.8) Weighted average shares used in diluted EPS calculation (m) 2 — 1,223.0 1,260.6 Diluted EPS — 0.5 p (0.3 p) Continuing and discontinued operations 2021 2020 1 2019 1 Diluted earnings (£m) 637.7 (2,965.1) 844.1 Weighted average shares used in diluted EPS calculation (m) 2 1,215.3 1,223.0 1,260.6 Diluted EPS 52.5 p (242.5 p) 67.0 p Notes 1 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: 2021 2020 2019 m m m Weighted average shares used in basic EPS calculation 1,194.1 1,223.0 1,250.0 Dilutive share options outstanding 1.3 — 0.3 Other potentially issuable shares 19.9 13.0 10.3 Weighted average shares used in diluted EPS calculation 1,215.3 1,236.0 1,260.6 |
Sources of finance (Tables)
Sources of finance (Tables) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | ||
Summary of Equity and Debt Financing | The following table summarises the equity and debt financing of the Group, and changes during the year: Shares Debt 2021 2020 2021 2020 Analysis of changes in financing £m £m £m £m Beginning of year 699.9 703.1 5,032.7 4,272.9 Ordinary shares issued 4.4 — — — Share cancellations (7.2) (3.2) — — Net (decrease)/increase in drawings on bank loans and corporate bonds — — (397.1) 632.8 Amortisation of financing costs included in debt — — 8.1 7.5 Changes in fair value due to hedging arrangements — — (2.5) (1.4) Other movements — — (0.4) (7.1) Exchange adjustments — — (199.1) 128.0 End of year 697.1 699.9 4,441.7 5,032.7 | |
Analysis of Future Anticipated Cash Flows in Relation to Group's Financial Derivatives and Debt | 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 2021 Payable Receivable Payable Receivable £m £m £m £m Within one year 185.8 173.7 581.1 582.5 Between one and two years 551.4 521.1 30.0 30.4 Between two and three years 11.6 6.0 — — Between three and four years 449.8 445.6 — — Between four and five years — — — — Over five years — — — — 1,198.6 1,146.4 611.1 612.9 Financial liabilities Financial assets 2020 Payable Receivable Payable Receivable £m £m £m £m Within one year 201.7 195.4 102.3 98.2 Between one and two years 11.6 6.2 17.8 13.6 Between two and three years 41.9 35.7 449.2 461.2 Between three and four years 11.6 6.3 — — Between four and five years 449.8 466.3 — — Over five years — — — — 716.6 709.9 569.3 573.0 | 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: 2021 2020 £m £m Within one year (326.8) (182.2) Between one and two years (745.4) (725.6) Between two and three years (646.5) (795.7) Between three and four years (492.8) (649.1) Between four and five years (698.0) (528.2) Over five years (2,546.3) (3,387.1) Debt financing (including interest) under the Revolving Credit Facility and in relation to unsecured loan notes (5,455.8) (6,267.9) Short-term overdrafts – within one year (342.3) (8,562.0) Future anticipated cash flows (5,798.1) (14,829.9) Effect of discounting/financing rates 1,014.1 1,235.2 Debt financing (4,784.0) (13,594.7) |
Analysis of Fixed and Floating Rate Debt by Currency | Analysis of fixed and floating rate debt by currency including the effect of cross-currency swaps: 2021 £m Fixed rate 1 Floating Period (months) 1 Currency $ – fixed 1,231.8 4.18 n/a 72 £ – fixed 1,094.1 2.97 n/a 155 € – fixed 1,976.0 2.04 n/a 69 – floating 210.2 n/a EURIBOR 3 Other (70.4) n/a n/a n/a 4,441.7 2020 £m Fixed rate 1 Floating Period (months) 1 Currency $ – fixed 1,585.1 4.06 n/a 70 £ – fixed 1,094.1 3.21 n/a 167 € – fixed 2,104.6 2.20 n/a 79 – floating 223.9 n/a EURIBOR 15 Other 25.0 n/a n/a n/a 5,032.7 Note |
Analysis of cash flows (Tables)
Analysis of cash flows (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash flows from (used in) operating activities [abstract] | |
Summary of Analysis of Cash Flows | The following tables analyse the items included within the main cash flow headings on page F-14. Net cash from operating activities: 2021 2020 1 2019 1 £m £m £m Profit/(loss) for the year 720.7 (2,901.3) 937.9 Taxation 230.1 129.3 366.0 Revaluation and retranslation of financial instruments 87.8 147.2 (154.4) Finance costs 283.6 312.3 376.4 Finance and investment income (69.4) (82.8) (102.6) Share of results of associates (23.8) 136.0 (21.2) Goodwill impairment on classification as held for sale — — 94.5 Gain on sale of discontinued operations — (10.0) (73.8) Attributable tax expense on sale of discontinued operations — 1.9 157.4 Adjustments for: Non-cash share-based incentive plans (including share options) 99.6 74.4 71.4 Depreciation of property, plant and equipment 151.2 174.8 203.2 Depreciation of right-of-use assets 272.9 331.9 317.9 Impairment charges included within restructuring costs 39.2 196.7 — Goodwill impairment 1.8 2,822.9 47.7 Amortisation and impairment of acquired intangible assets 97.8 89.1 135.6 Amortisation of other intangible assets 19.9 35.2 29.6 Investment and other impairment (reversals)/charges (42.4) 296.2 7.5 Losses/(gains) on disposal of investments and subsidiaries 10.6 (7.8) (45.1) Gains on remeasurement of equity interests arising from a change in scope of ownership — (0.6) (0.4) Gain on sale of freehold property in New York — — (7.9) (Gains)/losses on sale of property, plant and equipment (1.3) 0.3 3.2 (Increase)/decrease in trade receivables and accrued income (458.9) 585.2 159.0 Increase in trade payables and deferred income 777.8 195.0 394.7 (Increase)/decrease in other receivables (120.0) 123.3 (263.8) Increase/(decrease) in other payables – short-term 547.0 (36.6) (16.4) (Decrease)/increase in other payables – long-term (11.0) (44.3) 53.7 (Decrease)/increase in provisions (32.9) 15.6 23.1 Corporation and overseas tax paid (391.1) (371.5) (536.0) Payment on early settlement of bonds (13.0) — (63.4) Interest and similar charges paid (173.7) (173.9) (270.6) Interest paid on lease liabilities (88.4) (98.5) (105.1) Interest received 47.5 73.6 80.8 Investment income 17.8 8.7 18.3 Dividends from associates 53.4 32.5 33.3 Net cash inflow from operating activities 2,032.8 2,054.8 1,850.5 Note 1 Figures have been restated as described in the accounting policies. Acquisitions and disposals: 2021 2020 2019 £m £m £m Initial cash consideration (227.6) (32.8) (3.9) Cash and cash equivalents acquired (2.3) — — Earnout payments (57.0) (115.2) (130.2) Purchase of other investments (including associates) (99.2) (30.4) (27.2) Acquisitions (386.1) (178.4) (161.3) Proceeds on disposal of investments and subsidiaries 1 51.9 320.0 2,468.5 Cash and cash equivalents disposed (23.6) (47.7) (327.5) Disposals of investments and subsidiaries 28.3 272.3 2,141.0 Cash consideration received from non-controlling interests 39.5 — — Cash consideration for purchase of non-controlling interests (135.0) (80.6) (62.7) Cash consideration for non-controlling interests (95.5) (80.6) (62.7) Net acquisition payments and disposal proceeds (453.3) 13.3 1,917.0 Note 1 Proceeds on disposal of investments and subsidiaries includes return of capital from investments in associates. Share repurchases and buybacks: 2021 2020 2019 £m £m £m Purchase of own shares by ESOP Trusts (89.2) (5.1) — Shares purchased into treasury (729.3) (285.1) (43.8) Net cash outflow (818.5) (290.2) (43.8) Proceeds from issue of bonds: 2021 2020 2019 £m £m £m Proceeds from issue of €750 million bonds — 665.5 — Proceeds from issue of £250 million bonds — 250.0 — Net cash inflow — 915.5 — Repayment of borrowings: 2021 2020 2019 £m £m £m Decrease in drawings on bank loans (36.3) (59.6) (70.6) Repayment of $500 million bonds (360.8) — — Repayment of €250 million bonds — (223.1) — Repayment of €600 million bonds — — (512.7) Repayment of $812 million bonds — — (618.8) Partial repayment of $272 million bonds — — (135.4) Partial repayment of $450 million bonds — — (176.2) Repayment of £200 million bonds — — (199.5) Net cash outflow (397.1) (282.7) (1,713.2) Cash and cash equivalents: 2021 2020 2019 £m £m £m Cash at bank and in hand 2,776.6 10,075.0 10,442.1 Short-term bank deposits 1,106.3 2,824.1 863.6 Overdrafts 1 (342.3) (8,562.0) (8,572.4) 3,540.6 4,337.1 2,733.3 Note |
Assets held for sale and disc_2
Assets held for sale and discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Assets Held For Sale And Discontinued Operations [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: 2020 2019 £m £m Revenue 107.4 2,387.5 Costs of services (92.3) (1,951.5) Gross profit 15.1 436.0 General and administrative costs (4.4) (151.7) Operating profit 10.7 284.3 Share of results of associates — 6.5 Profit before interest and taxation 10.7 290.8 Finance and investment income 0.1 3.6 Finance costs (0.3) (17.3) Revaluation and retranslation of financial instruments — (9.4) Profit before taxation 10.5 267.7 Attributable tax expense (2.2) (78.8) Profit after taxation 8.3 188.9 Goodwill impairment on classification as held for sale 1 — (94.5) Gain on sale of discontinued operations 10.0 73.8 Attributable tax expense on sale of discontinued operations (1.9) (157.4) Net gain attributable to discontinued operations 16.4 10.8 Attributable to Equity holders of the parent 6.5 (3.8) Non-controlling interests 2; 9.9 14.6 16.4 10.8 Notes 1 In 2019, 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 2020 is calculated as follows: 2020 2019 £m £m Intangible assets (including goodwill) 162.5 2,410.0 Property, plant and equipment 15.1 115.7 Right-of-use assets 27.2 103.5 Interests in associates and joint ventures 4.6 92.3 Other investments — 11.5 Deferred tax assets 6.1 44.1 Corporate income tax recoverable 16.9 49.8 Trade and other receivables 170.3 748.8 Cash and cash equivalents 32.2 324.9 Trade and other payables (141.6) (839.8) Corporate income tax payable (5.6) (48.2) Lease liabilities (23.2) (106.3) Deferred tax liabilities (1.3) (98.6) Provisions for post-employment benefits (7.9) (26.7) Provisions for liabilities and charges (0.6) (22.4) Net assets 254.7 2,758.6 Non-controlling interests (6.1) (19.1) Net assets excluding non-controlling interests 248.6 2,739.5 Consideration received in cash and cash equivalents 240.9 2,352.1 Re-investment in equity stake 1 — 231.7 Transaction costs (4.5) (56.1) Deferred consideration 2 1.6 1.6 Total consideration received 238.0 2,529.3 Loss on sale before exchange adjustments (10.6) (210.2) Exchange adjustments recycled to the income statement 20.6 284.0 Gain on sale of discontinued operation 10.0 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 in 2019 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 four 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. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases Disclosure [Abstract] | |
Movement in right-of-use assets and lease liabilities | The movements in 2021 and 2020 were as follows: Right-of-use assets Land and buildings 1 £m Plant and Total 1 January 2020 1,706.1 28.4 1,734.5 Additions 233.0 35.0 268.0 Disposals (40.5) (1.9) (42.4) Depreciation of right-of-use assets (312.1) (19.8) (331.9) Impairment charges included within restructuring costs (117.0) — (117.0) Other write-downs (8.1) — (8.1) Exchange adjustments 0.4 1.0 1.4 31 December 2020 1,461.8 42.7 1,504.5 Additions 264.6 17.2 281.8 Transfers to net investment in subleases (26.9) — (26.9) Disposals (53.6) (1.3) (54.9) Depreciation of right-of-use assets (254.7) (18.2) (272.9) Impairment charges included within restructuring costs (18.9) (0.4) (19.3) Other reversals 6.8 — 6.8 Exchange adjustments (22.1) (1.9) (24.0) 31 December 2021 1,357.0 38.1 1,395.1 Note 1 For the years ended 31 December 2021 and 2020, the Company has £38.5 million and £67.9 million of right-of-use assets that are classified as investment property, respectively. Lease liabilities Land and Plant and Total 1 January 2020 2,223.4 26.3 2,249.7 Additions 226.9 37.1 264.0 Interest expense related to lease liabilities 96.8 1.7 98.5 Disposals (49.4) (1.7) (51.1) Repayment of lease liabilities (including interest) (379.1) (19.5) (398.6) Exchange adjustments (6.8) 0.6 (6.2) 31 December 2020 2,111.8 44.5 2,156.3 Additions 277.0 16.1 293.1 Interest expense related to lease liabilities 89.7 1.2 90.9 Disposals (64.2) (1.9) (66.1) Repayment of lease liabilities (including interest) (390.6) (18.5) (409.1) Exchange adjustments (21.2) (2.1) (23.3) 31 December 2021 2,002.5 39.3 2,041.8 |
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: 2021 2020 Continuing operations £m £m Depreciation of right-of-use assets: Land and buildings (254.7) (312.1) Plant and machinery (18.2) (19.8) Impairment charges (12.5) (125.1) Short-term lease expense (18.0) (36.7) Low-value lease expense (2.3) (2.3) Variable lease expense (56.2) (65.4) Sublease income 17.3 25.3 Charge to operating profit (344.6) (536.1) Interest expense related to lease liabilities (90.9) (101.0) Charge to profit before taxation for leases (435.5) (637.1) |
Disclosure of Maturity of lease liabilities | The maturity of lease liabilities at 31 December 2021 and 2020 were as follows: 2021 2020 £m £m Within one year 369.7 412.3 Between one and two years 321.9 357.7 Between two and three years 273.7 309.0 Between three and four years 229.1 255.3 Between four and five years 199.1 209.9 Over five years 1,227.1 1,238.9 2,620.6 2,783.1 Effect of discounting (578.8) (626.8) Lease liability at end of year 2,041.8 2,156.3 Short-term lease liability 279.7 323.8 Long-term lease liability 1,762.1 1,832.5 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Intangible Assets And Goodwill [Abstract] | |
Movements of Goodwill | The movements in 2021 and 2020 were as follows: £m Cost 1 January 2020 10,888.6 Additions 1 37.3 Disposals (24.6) Exchange adjustments (94.0) 31 December 2020 10,807.3 Additions 1 335.8 Disposals (5.4) Exchange adjustments (146.7) 31 December 2021 10,991.0 Accumulated impairment losses and write-downs 1 January 2020 778.0 Impairment losses for the year 2,822.9 Exchange adjustments (182.4) 31 December 2020 3,418.5 Impairment losses for the year 1.8 Exchange adjustments (41.6) 31 December 2021 3,378.7 Net book value 31 December 2021 7,612.3 31 December 2020 7,388.8 1 January 2020 10,110.6 Note 1 Additions represent goodwill arising on the acquisition of subsidiary undertakings including the effect of any revisions to fair value adjustments that had been determined provisionally at the immediately preceding balance sheet date, as permitted by IFRS 3 Business Combinations. The effect of such revisions was not material in either year presented. |
Movements of Other Intangible Assets | The movements in 2021 and 2020 were as follows: Brands Acquired Other Total £m £m £m £m Cost 1 January 2020 1,091.4 1,602.9 312.3 3,006.6 Additions — — 54.3 54.3 Disposals — (21.5) (74.8) (96.3) New acquisitions — 4.8 0.2 5.0 Other movements 1 — 5.7 13.1 18.8 Exchange adjustments (19.5) (22.2) (4.8) (46.5) 31 December 2020 1,071.9 1,569.7 300.3 2,941.9 Additions — — 29.9 29.9 Disposals — (7.3) (44.6) (51.9) New acquisitions — 97.7 — 97.7 Other movements 1 — — 3.9 3.9 Exchange adjustments (4.6) (15.7) (1.4) (21.7) 31 December 2021 1,067.3 1,644.4 288.1 2,999.8 Amortisation and impairment 1 January 2020 13.2 1,279.3 245.3 1,537.8 Charge for the year — 88.5 35.2 123.7 Disposals — (17.4) (72.0) (89.4) Other movements — 5.7 5.4 11.1 Exchange adjustments (0.4) (26.9) (3.3) (30.6) 31 December 2020 12.8 1,329.2 210.6 1,552.6 Charge for the year 43.8 53.5 19.9 117.2 Impairment charges included within restructuring costs — — 10.1 10.1 Disposals — (3.5) (24.5) (28.0) Other movements — — (1.5) (1.5) Exchange adjustments 0.2 (8.2) (2.1) (10.1) 31 December 2021 56.8 1,371.0 212.5 1,640.3 Net book value 31 December 2021 1,010.5 273.4 75.6 1,359.5 31 December 2020 1,059.1 240.5 89.7 1,389.3 1 January 2020 1,078.2 323.6 67.0 1,468.8 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 (CGUs) with significant goodwill and brands with an indefinite useful life as at 31 December are: Goodwill Brands with an 2021 2020 2021 2020 £m £m £m £m GroupM 2,982.5 2,953.7 — — Wunderman Thompson 997.3 949.4 405.1 403.9 VMLY&R 675.6 411.9 189.8 193.4 Ogilvy 784.4 782.0 205.0 206.5 Burson Cohn & Wolfe 585.7 591.1 128.4 128.8 AKQA Group 570.2 585.2 — — Finsbury Glover Hering + Sard Verbinnen & Co 393.2 220.7 — — Other 623.4 894.8 82.2 126.5 7,612.3 7,388.8 1,010.5 1,059.1 |
Summary of Recoverable Amounts and Goodwill Impairment Charges by CGUs | The transfers of carrying value between CGUs were determined on a relative value basis. These realignments did not have a significant impact on the impairment figures recognised. The CGUs with significant impairments of goodwill as at 31 December 2020 are set out in the below table with the recoverable amount determined as of the December 2020 test. Operating Sector Recoverable amount 2020 £m Goodwill impairment charge 2020 £m Wunderman Thompson Global Integrated Agencies 1,956.8 1,207.5 VMLY&R Global Integrated Agencies 1,075.7 516.9 Burson Cohn & Wolfe Public Relations 790.2 144.8 Geometry Global Global Integrated Agencies 1 164.4 305.8 Landor & Fitch Specialist Agencies 177.6 185.4 Other 1,409.5 462.5 5,574.2 2,822.9 Note 1 Prior year figures have been re-presented to reflect the changes to segments described in Note 2 - Segment Information. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Summary of Property, Plant and Equipment | The movements in 2021 and 2020 were as follows: Land Freehold Leasehold Fixtures, Computer Total £m £m £m £m £m £m Cost 1 January 2020 34.3 26.2 1,048.8 212.4 423.9 1,745.6 Additions — 8.9 135.7 25.0 48.7 218.3 New acquisitions — — 0.2 — 0.2 0.4 Disposals — (0.2) (99.1) (41.1) (83.7) (224.1) Exchange adjustments — 4.7 (33.1) (7.0) (7.4) (42.8) 31 December 2020 34.3 39.6 1,052.5 189.3 381.7 1,697.4 Additions 14.3 8.9 134.5 31.5 74.0 263.2 New acquisitions — — 1.5 1.3 1.2 4.0 Disposals (0.1) (0.6) (108.3) (60.0) (56.4) (225.4) Exchange adjustments (5.3) 13.5 (5.2) (12.6) (8.7) (18.3) 31 December 2021 43.2 61.4 1,075.0 149.5 391.8 1,720.9 Depreciation and impairment 1 January 2020 — 4.2 443.3 111.2 310.9 869.6 Charge for the year — 1.2 76.6 33.2 63.8 174.8 Impairment charges included within restructuring costs — — 72.1 6.3 1.3 79.7 Other write-downs — — 2.6 — — 2.6 Disposals — — (79.0) (38.3) (82.5) (199.8) Exchange adjustments — (3.1) (5.2) (5.5) (6.6) (20.4) 31 December 2020 — 2.3 510.4 106.9 286.9 906.5 Charge for the year — 1.0 66.5 27.6 56.1 151.2 Impairment charges included within restructuring costs — — 7.1 1.8 0.9 9.8 Disposals — — (108.2) (55.9) (55.1) (219.2) Exchange adjustments — (0.6) (6.2) (8.5) (8.5) (23.8) 31 December 2021 — 2.7 469.6 71.9 280.3 824.5 Net book value 31 December 2021 43.2 58.7 605.4 77.6 111.5 896.4 31 December 2020 34.3 37.3 542.1 82.4 94.8 790.9 January 1, 2020 34.3 22.0 605.5 101.2 113.0 876.0 |
Interests in associates, join_2
Interests in associates, joint ventures and other investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments accounted for using equity method [abstract] | |
Movements in Associates, Joint Ventures and Other Investments | The movements in 2021 and 2020 were as follows: Interests in Other £m £m 1 January 2020 813.0 498.3 Additions 15.2 15.9 Share of results of associate undertakings (136.0) — Share of other comprehensive loss of associate undertakings (61.5) — Dividends (32.5) — Other movements (5.2) — Exchange adjustments 21.8 — Disposals (7.3) (7.0) Reclassification from subsidiaries 4.5 — Reclassification from other investments to associates 0.2 (0.2) Revaluation of other investments through profit or loss — 8.0 Revaluation of other investments through other comprehensive income — (127.7) Amortisation of other intangible assets (0.6) — Write-downs (280.9) — 31 December 2020 330.7 387.3 Additions 93.6 5.9 Share of results of associate undertakings 23.8 — Share of other comprehensive income of associate undertakings 13.5 — Dividends (53.4) — Other movements (0.2) — Exchange adjustments (22.5) — Disposals (4.8) (31.9) Reclassification from subsidiaries 4.2 — Revaluation of other investments through profit or loss — (7.5) Revaluation of other investments through other comprehensive income — (35.5) Amortisation of other intangible assets (0.5) — Reversal of write-downs 28.5 — 31 December 2021 412.9 318.3 |
Principal Associates and Joint Ventures | The Group’s principal associates and joint ventures at 31 December 2021 included: Country of % Advantage Smollan Ltd UK 25.1 Barrows Design and Manufacturing (Pty) Limited South Africa 35.0 Dat Viet VAC Media Corporation Vietnam 30.0 GIIR Inc. Korea 30.0 Haworth Marketing & Media Company USA 49.0 High Co SA France 34.1 Imagina Spain Spain 22.5 Nanjing Yindu Ogilvy Advertising Co. Ltd China 49.0 Smollan Holdings (Pty) Ltd South Africa 24.8 Summer (BC) JVCo S.a.r.l. 1 Luxembourg 40.0 Note 1 Representing the Group’s interest in Kantar in the Rest of World chain. |
Summary of Aggregate Financial Performance of Associates and Joint Ventures | The following table presents a summary of the aggregate financial performance of the Group’s associate undertakings and joint ventures. 2021 2020 2019 £m £m £m Share of results of associate undertakings (note 4) 23.8 (136.0) 14.7 Share of other comprehensive income/(loss) of associate undertakings 13.5 (61.5) — Share of total comprehensive income/(loss) of associate undertakings 37.3 (197.5) 14.7 |
Deferred tax (Tables)
Deferred tax (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | |
Analysis of Deferred Tax Balances for Financial Reporting Purposes | The following is the analysis of the deferred tax balances for financial reporting purposes: Gross 2021 Offset 2021 As reported 2021 As reported 2020 Offset 2020 As reported 2020 £m £m £m £m £m £m Deferred tax assets 565.0 (223.5) 341.5 477.5 (264.6) 212.9 Deferred tax liabilities (536.0) 223.5 (312.5) (568.7) 264.6 (304.1) 29.0 — 29.0 (91.2) — (91.2) |
Movements of Major Gross Deferred Tax Assets | The following are the major gross deferred tax assets recognised by the Group and movements thereon in 2021 and 2020: Deferred Accounting Retirement Property, Tax Share- Restructuring Other Total £m £m £m £m £m £m £m £m £m 1 January 2020 53.5 87.4 57.5 84.7 86.3 21.5 25.8 14.2 430.9 (Charge)/credit to income (1.5) 30.3 (3.5) (3.4) 5.9 0.4 31.9 (2.7) 57.4 Credit to other comprehensive income — — 7.4 — — — — — 7.4 Exchange differences and other movements (2.5) (8.2) (3.5) (0.4) (1.9) (0.5) (1.3) 0.1 (18.2) 31 December 2020 49.5 109.5 57.9 80.9 90.3 21.4 56.4 11.6 477.5 Acquisition of subsidiaries — — — — — — — 0.9 0.9 Credit/(charge) to income 58.2 0.3 1.2 (15.9) 19.7 9.9 9.1 (1.6) 80.9 Charge to other comprehensive income — — (3.0) — — — — — (3.0) Credit to equity — — — — — 11.9 — — 11.9 Exchange differences and other movements 0.8 (3.6) (2.7) 3.0 0.5 0.3 (4.4) 2.9 (3.2) 31 December 2021 108.5 106.2 53.4 68.0 110.5 43.5 61.1 13.8 565.0 |
Movements of Gross Deferred Tax Liabilities | In addition the Group has recognised the following gross deferred tax liabilities and movements thereon in 2021 and 2020: Brands Associate Goodwill Financial Other Total £m £m £m £m £m £m 1 January 2020 352.3 76.5 135.4 36.9 21.7 622.8 Acquisition of subsidiaries 1.5 — — — — 1.5 (Credit)/charge to income (22.3) (16.7) (7.8) — 6.7 (40.1) Exchange differences and other movements (4.7) (1.8) (4.5) (1.1) (3.4) (15.5) 31 December 2020 326.8 58.0 123.1 35.8 25.0 568.7 Acquisition of subsidiaries 22.5 — — — — 22.5 (Credit)/charge to income (19.5) (21.4) 8.2 (35.5) 16.6 (51.6) Exchange differences and other movements (4.7) 0.2 1.9 (0.3) (0.7) (3.6) 31 December 2021 325.1 36.8 133.2 — 40.9 536.0 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other receivables [abstract] | |
Summary of Trade and Other Receivables | The following are included in trade and other receivables: 2021 2020 Amounts falling due within one year £m £m Trade receivables (net of loss allowance) 6,600.5 6,572.2 Work in progress 254.0 264.1 VAT and sales taxes recoverable 350.3 236.6 Prepayments 215.3 248.1 Accrued income 3,435.7 3,150.1 Fair value of derivatives 2.5 0.2 Other debtors 504.0 501.0 11,362.3 10,972.3 Past due amounts are not impaired where collection is considered likely. 2021 2020 Amounts falling due after more than one year £m £m Prepayments 3.0 2.8 Fair value of derivatives 0.5 9.6 Other debtors 149.1 143.8 152.6 156.2 |
Ageing of Trade Receivables and Other Financial Assets | The ageing of trade receivables and other financial assets by due date is as follows: Carrying amount at 31 December 2021 Not Days past due 0-30 31-90 91-180 181 Greater 2021 £m £m £m £m £m £m £m Gross trade receivables 6,671.0 5,755.6 589.8 194.4 64.0 10.6 56.6 Loss allowance (70.5) (2.3) (0.2) (1.9) (7.5) (4.9) (53.7) 6,600.5 5,753.3 589.6 192.5 56.5 5.7 2.9 Other financial assets 496.3 422.1 15.2 2.7 3.0 2.7 50.6 7,096.8 6,175.4 604.8 195.2 59.5 8.4 53.5 Carrying amount at 31 December 2020 Not Days past due 0-30 31-90 91-180 181 Greater 2020 £m £m £m £m £m £m £m Gross trade receivables 6,684.7 5,696.8 661.2 169.2 55.6 32.7 69.2 Loss allowance (112.5) (4.4) (1.2) (1.9) (15.2) (25.2) (64.6) 6,572.2 5,692.4 660.0 167.3 40.4 7.5 4.6 Other financial assets 527.2 451.8 32.5 8.6 11.8 4.3 18.2 7,099.4 6,144.2 692.5 175.9 52.2 11.8 22.8 |
Bad Debt Provisions | 2021 2020 2019 £m £m £m Loss allowance At beginning of year 112.5 111.7 116.6 New acquisitions 3.7 3.5 5.0 Charged to the income statement 17.2 50.6 45.4 Released to the income statement (27.9) (9.8) (19.0) Exchange adjustments (1.7) (2.8) (4.1) Transfer to disposal group classified as held for sale — — (8.9) Utilisations and other movements (33.3) (40.7) (23.3) At end of year 70.5 112.5 111.7 |
Trade and other payables_ amo_3
Trade and other payables: amounts falling due within one year (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other current payables [abstract] | |
Summary of Trade and Other Payables | The following are included in trade and other payables falling due within one year: 2021 2020 £m £m Trade payables 10,596.9 10,206.5 Deferred income 1,334.0 1,153.7 Payments due to vendors (earnout agreements) 85.6 57.8 Liabilities in respect of put option agreements with vendors 58.4 9.3 Fair value of derivatives 6.4 1.8 Share repurchases - close period commitments 1 211.7 — Other creditors and accruals 2,959.3 2,430.6 15,252.3 13,859.7 Note 1 During 2021, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 16 December 2021 and ending on 18 February 2022, in accordance with UK listing rules. The commitment resulting from this agreement constitutes a liability at 31 December 2021, which is included in trade and other payables: amounts falling due within one year and has been recognised as a movement in equity. The following are included in trade and other payables falling due after more than one year: 2021 2020 £m £m Payments due to vendors (earnout agreements) 111.1 56.5 Liabilities in respect of put option agreements with vendors 333.1 101.4 Fair value of derivatives 47.2 11.2 Other creditors and accruals 128.5 144.4 619.9 313.5 |
Trade and other payables_ amo_4
Trade and other payables: amounts falling due after more than one year (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other non-current payables [abstract] | |
Summary of Trade and Other Payables | The following are included in trade and other payables falling due within one year: 2021 2020 £m £m Trade payables 10,596.9 10,206.5 Deferred income 1,334.0 1,153.7 Payments due to vendors (earnout agreements) 85.6 57.8 Liabilities in respect of put option agreements with vendors 58.4 9.3 Fair value of derivatives 6.4 1.8 Share repurchases - close period commitments 1 211.7 — Other creditors and accruals 2,959.3 2,430.6 15,252.3 13,859.7 Note 1 During 2021, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 16 December 2021 and ending on 18 February 2022, in accordance with UK listing rules. The commitment resulting from this agreement constitutes a liability at 31 December 2021, which is included in trade and other payables: amounts falling due within one year and has been recognised as a movement in equity. The following are included in trade and other payables falling due after more than one year: 2021 2020 £m £m Payments due to vendors (earnout agreements) 111.1 56.5 Liabilities in respect of put option agreements with vendors 333.1 101.4 Fair value of derivatives 47.2 11.2 Other creditors and accruals 128.5 144.4 619.9 313.5 |
Maturity Analysis for Non-derivative Financial Liabilities | The following table sets out payments due to vendors, comprising contingent consideration and the Directors’ best estimates of future earnout-related obligations: 2021 2020 £m £m Within one year 85.6 57.8 Between one and two years 24.0 17.2 Between two and three years 35.7 6.0 Between three and four years 51.4 30.5 Between four and five years — 2.8 Over five years — — 196.7 114.3 |
Summary of Future Anticipated Cash Flows in Relation to Liabilities in Respect of Put Options | The following table is an analysis of future anticipated cash flows in relation to liabilities in respect of put option agreements with vendors at 31 December: 2021 2020 £m £m Within one year 58.4 9.3 Between one and two years 15.1 51.0 Between two and three years 14.4 10.0 Between three and four years 99.0 26.2 Between four and five years 76.6 9.0 Over five years 128.0 5.2 391.5 110.7 |
Bank overdrafts, bonds and ba_2
Bank overdrafts, bonds and bank loans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of bank overdraft bonds and bank loans [abstract] | |
Bank Overdrafts, Bonds and Bank Loans Amounts Falling Due Within One Year | Amounts falling due within one year: 2021 2020 £m £m Bank overdrafts 342.3 8,562.0 Corporate bonds and bank loans 224.9 57.2 567.2 8,619.2 |
Corporate Bonds and Bank Loans Amounts Falling Due After More Than One Year | Amounts falling due after more than one year: 2021 2020 £m £m Corporate bonds and bank loans 4,216.8 4,975.5 |
Maturity Analysis for Non-derivative Financial Liabilities | The corporate bonds, bank loans and overdrafts included within liabilities fall due for repayment as follows: 2021 2020 £m £m Within one year 567.2 8,619.2 Between one and two years 629.2 590.9 Between two and three years 550.4 669.4 Between three and four years 418.8 540.2 Between four and five years 623.6 445.6 Over five years 1,994.8 2,729.4 4,784.0 13,594.7 |
Provisions for liabilities an_2
Provisions for liabilities and charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of other provisions [abstract] | |
Summary of Provisions for Liabilities and Charges | The movements in 2021 and 2020 were as follows: Property Other Total 1 January 2020 81.5 166.3 247.8 Charged to the income statement 14.8 50.4 65.2 Acquisitions 1 — 0.7 0.7 Utilised (1.6) (17.0) (18.6) Released to the income statement (1.5) (15.0) (16.5) Other movements (15.0) 48.7 33.7 Exchange adjustments (1.5) (4.5) (6.0) 31 December 2020 76.7 229.6 306.3 Charged to the income statement 25.2 35.8 61.0 Acquisitions 1 — 7.3 7.3 Utilised (7.0) (69.9) (76.9) Released to the income statement (18.3) (25.0) (43.3) Other movements (5.2) 18.9 13.7 Exchange adjustments (0.8) 1.2 0.4 31 December 2021 70.6 197.9 268.5 Note 1 Acquisitions include £7.3 million (2020: £0.4 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. |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of share based payments [abstract] | |
Charges for Share-based Incentive Plans | Charges for share-based incentive plans were as follows: 2021 2020 2019 Continuing operations £m £m £m Share-based payments 99.6 74.4 66.0 |
Movement on Ordinary Shares Granted for Significant Restricted Stock Plans | Movement on ordinary shares granted for significant restricted stock plans: Non-vested 1 January 2021 number m Granted Forfeited Vested Non-vested 31 December 2021 number m Executive Performance Share Plan (EPSP) 13.0 6.1 (2.2) (0.2) 16.7 Performance Share Awards (PSA) 4.3 0.4 (0.2) (1.4) 3.1 Leaders, Partners and High Potential Group 11.0 3.6 (1.1) (3.1) 10.4 Weighted average fair value (pence per share) Executive Performance Share Plan (EPSP) 943 p 951 p 1,289 p 833 p 900 p Performance Share Awards (PSA) 675 p 666 p 534 p 859 p 604 p Leaders, Partners and High Potential Group 831 p 990 p 853 p 709 p 922 p |
Provision for post-employment_2
Provision for post-employment benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Pension Costs [abstract] | |
Pension Costs | The Group’s pension costs are analysed as follows: 2021 2020 2019 Continuing operations £m £m £m Defined contribution plans 162.8 157.8 154.9 Defined benefit plans charge to operating profit 14.9 13.9 14.8 Pension costs (note 5) 177.7 171.7 169.7 Net interest expense on pension plans (note 6) 1.8 2.9 3.5 179.5 174.6 173.2 |
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: 2021 2020 2019 2018 % pa % pa % pa % pa UK Discount rate 1 1.8 1.3 2.0 2.8 Rate of increase in pensions in payment 4.5 4.4 4.4 4.3 Inflation 3.2 2.8 2.6 2.8 North America Discount rate 1 2.6 2.0 3.0 4.1 Rate of increase in salaries 2 n/a 3.0 3.0 3.0 Western Continental Europe Discount rate 1 1.2 0.9 1.2 2.0 Rate of increase in salaries 2.3 2.2 2.2 2.3 Rate of increase in pensions in payment 1.8 1.8 1.8 1.2 Inflation 1.7 1.7 1.7 1.7 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe Discount rate 1 5.3 4.2 4.6 5.0 Rate of increase in salaries 5.6 5.2 6.1 5.8 Inflation 3.7 3.7 3.7 3.6 Notes 1 Discount rates are based on high-quality corporate bond yields. In countries where there is no deep market in corporate bonds, the discount rate assumption has been set with regard to the yield on long-term government bonds. 2 The salary assumptions are no longer applicable to the US as all plans were frozen. Active participants will not accrue additional benefits for future services under these plans. |
Life Expectancies For Defined Benefit Pension Plans | At 31 December 2021, 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 22.3 21.8 23.5 20.9 13.3 Current pensioners 24.0 23.3 25.0 23.9 16.4 Future pensioners 24.1 23.2 25.5 23.1 13.3 Future pensioners 25.8 24.6 27.1 25.9 16.4 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 ten years. The duration corresponds to the weighted average length of the underlying cash flows. All North UK Western Other 1 Weighted average duration of the defined benefit obligation (years) 11.2 9.3 13.6 12.4 6.3 Expected benefit payments over the next ten years (£m) Benefits expected to be paid 47.4 22.8 13.5 5.6 5.5 Benefits expected to be paid in 2023 42.6 20.8 12.2 5.5 4.1 Benefits expected to be paid in 2024 41.7 20.2 12.6 5.4 3.5 Benefits expected to be paid in 2025 42.0 18.9 13.3 5.7 4.1 Benefits expected to be paid in 2026 43.9 19.9 13.3 5.8 4.9 Benefits expected to be paid 215.1 85.8 71.4 31.8 26.1 Note 1 Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. |
Sensitivity Analysis of Significant Actuarial Assumptions | (Decrease)/increase 2021 2020 Sensitivity analysis of significant actuarial assumptions £m £m Discount rate Increase by 25 basis points: UK (7.6) (8.8) North America (6.4) (7.6) Western Continental Europe (3.4) (4.0) Other 1 (0.6) (0.6) Decrease by 25 basis points: UK 8.0 9.1 North America 6.6 7.8 Western Continental Europe 3.6 4.3 Other 1 0.6 0.6 Rate of increase in salaries Increase by 25 basis points: Western Continental Europe 0.8 0.9 Other 1 0.5 0.6 Decrease by 25 basis points: Western Continental Europe (0.8) (0.9) Other 1 (0.5) (0.5) Rate of increase in pensions in payment Increase by 25 basis points: UK 0.9 1.1 Western Continental Europe 1.7 2.1 Decrease by 25 basis points: UK (0.9) (0.7) Western Continental Europe (1.7) (2.0) Life expectancy Increase in longevity by one UK 13.3 14.0 North America 5.3 5.9 Western Continental Europe 4.2 4.8 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: 2021 2020 2019 £m % £m % £m % Equities 31.8 5.8 41.6 6.7 55.5 9.1 Bonds 259.7 47.0 284.2 46.1 272.5 44.8 Insured annuities 222.5 40.3 252.8 41.0 239.1 39.3 Property 1.0 0.2 0.7 0.1 0.7 0.1 Cash 15.3 2.8 14.7 2.4 17.7 2.9 Other 21.8 3.9 22.6 3.7 23.0 3.8 Total fair value of assets 552.1 100.0 616.6 100.0 608.5 100.0 Present value of liabilities (688.5) (772.7) (767.5) Deficit in the plans (136.4) (156.1) (159.0) Irrecoverable surplus (0.2) (0.6) — Net liability 1 (136.6) (156.7) (159.0) Plans in surplus 30.1 27.2 20.6 Plans in deficit (166.7) (183.9) (179.6) Note 1 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. The value of insured annuities is equal to the value of the pension benefits covered by the annuities. 2021 2020 2019 Surplus/(deficit) in plans by region £m £m £m UK 0.4 0.7 0.3 North America (28.1) (37.9) (45.2) Western Continental Europe (74.0) (85.9) (79.4) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (34.7) (33.0) (34.7) Deficit in the plans (136.4) (156.1) (159.0) |
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. 2021 Surplus/ (deficit) £m 2021 Present value of liabilities £m 2020 Surplus/ (deficit) £m 2020 Present value of liabilities £m 2019 Surplus/ (deficit) £m 2019 Present value of liabilities £m Funded plans by region UK 0.4 (231.9) 0.7 (262.7) 0.3 (247.6) North America 20.1 (237.9) 17.4 (271.8) 12.8 (286.2) Western Continental Europe (45.1) (87.6) (38.6) (84.3) (33.3) (77.6) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (6.4) (25.7) (5.8) (24.1) (3.6) (20.9) Deficit/liabilities in the funded plans (31.0) (583.1) (26.3) (642.9) (23.8) (632.3) Unfunded plans by region North America (48.2) (48.2) (55.3) (55.3) (58.0) (58.0) Western Continental Europe (28.9) (28.9) (47.3) (47.3) (46.1) (46.1) Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe (28.3) (28.3) (27.2) (27.2) (31.1) (31.1) Deficit/liabilities in the unfunded plans (105.4) (105.4) (129.8) (129.8) (135.2) (135.2) Deficit/liabilities in the plans (136.4) (688.5) (156.1) (772.7) (159.0) (767.5) |
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: 2021 2020 2019 Continuing operations £m £m £m Service cost 1 12.6 12.0 12.9 Administrative expenses 2.3 1.9 1.9 Charge to operating profit 14.9 13.9 14.8 Net interest expense on pension plans 1.8 2.9 3.5 Charge to profit before taxation for defined benefit plans 16.7 16.8 18.3 Note 1 Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments. The following table shows the breakdown of amounts recognised in other comprehensive income (OCI): 2021 2020 2019 £m £m £m Return on plan assets (excluding interest income) (29.3) 57.2 16.7 Changes in demographic assumptions underlying the present value of the plan liabilities (3.6) 3.8 5.9 Changes in financial assumptions underlying the present value of the plan liabilities 31.1 (54.0) (64.3) Experience gain/(loss) arising on the plan liabilities 15.7 (4.4) 5.1 Change in irrecoverable surplus 0.4 (0.6) — Actuarial gain/(loss) recognised in OCI 14.3 2.0 (36.6) |
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: 2021 2020 2019 £m £m £m Plan liabilities at beginning of year 772.7 767.5 1,024.0 Service cost 1 12.6 12.0 14.9 Interest cost 12.0 17.0 26.2 Actuarial (gain)/loss: Effect of changes in demographic assumptions 3.6 (3.8) (5.9) Effect of changes in financial assumptions (31.1) 54.0 64.3 Effect of experience adjustments (15.7) 4.4 (5.1) Benefits paid 2 (59.5) (59.6) (140.8) Gain due to exchange rate movements (6.1) (4.2) (22.7) Settlement payments 3 (0.3) (17.0) (47.4) Transfer to disposal group classified as held for sale — — (148.0) Other 4 0.3 2.4 8.0 Plan liabilities at end of year 688.5 772.7 767.5 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 United States defined benefit plan that allowed certain participants to receive immediate lump sum pay-outs, which totalled £69.7 million. 3 In 2019, the Group completed the transfer of the defined benefit obligations for certain UK plans to an insurer resulting in £47.1 million 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. The following table shows an analysis of the movement in the pension plan assets for each accounting period: 2021 2020 2019 £m £m £m Fair value of plan assets at beginning of year 616.6 608.5 840.6 Interest income on plan assets 10.2 14.1 22.4 Return on plan assets (excluding interest income) (29.3) 57.2 16.7 Employer contributions 16.7 20.3 37.1 Benefits paid 1 (59.5) (59.6) (140.8) Loss due to exchange rate movements (0.6) (6.8) (15.7) Settlement payments 2 (0.3) (17.0) (47.4) Administrative expenses (1.8) (1.9) (2.1) Transfer to disposal group classified as held for sale — — (111.1) Other 3 0.1 1.8 8.8 Fair value of plan assets at end of year 552.1 616.6 608.5 Actual return on plan assets (19.1) 71.3 39.1 Notes 1 In 2019, there was an amendment to a United States defined benefit plan that allowed certain participants to receive immediate lump sum pay-outs, which totalled £69.7 million. 2 In 2019, the Group completed the transfer of the defined benefit obligations for certain UK plans to an insurer resulting in £47.1 million 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, 2021 | |
Disclosure of risk management strategy related to hedge accounting [abstract] | |
Committed Facilities | At 31 December 2021, the Group has access to £6.3 billion of committed facilities with maturity dates spread over the years 2022 to 2046 as illustrated below: 2022 2023 2024 2025 2026 + £m £m £m £m £m £ bonds £400m (2.875% 2046) 400.0 400.0 US bond $220m (5.625% 2043) 162.5 162.5 US bond $93m (5.125% 2042) 68.6 68.6 £ bonds £250m (3.75% 2032) 250.0 250.0 Eurobonds €600m (1.625% 2030) 504.5 504.5 Eurobonds €750m (2.375% 2027) 630.6 630.6 Eurobonds €750m (2.25% 2026) 630.6 630.6 Bank revolver ($2,500m 2026) 1,847.5 1,847.5 Eurobonds €500m (1.375% 2025) 420.4 420.4 US bond $750m (3.75% 2024) 554.2 554.2 Eurobonds €750m (3.0% 2023) 630.6 630.6 Eurobonds €250m (3m EURIBOR + 0.45% 2022) 210.2 210.2 Total committed facilities available 6,309.7 210.2 630.6 554.2 420.4 4,494.3 Drawn down facilities at 31 December 2021 4,462.2 210.2 630.6 554.2 420.4 2,646.8 Undrawn committed credit facilities 1,847.5 |
Summary of currency risk | 2021 2020 £m £m US dollar 0.7 159.1 Euro 17.4 167.2 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | |
Analysis of Financial Assets and Liabilities | An analysis of the Group’s financial assets and liabilities by accounting classification is set out below: Derivatives Held at Held at Amortised Carrying £m £m £m £m £m 2021 Other investments — 228.3 90.0 — 318.3 Cash and short-term deposits — — — 3,882.9 3,882.9 Bank overdrafts, bonds and bank loans — — — (567.2) (567.2) Bonds and bank loans — — — (4,216.8) (4,216.8) Trade and other receivables: amounts falling due within one year — — — 7,012.3 7,012.3 Trade and other receivables: amounts falling due after more than one year — — — 84.5 84.5 Trade and other payables: amounts falling due within one year — — — (10,674.8) (10,674.8) Trade and other payables: amounts falling due after more than one year — — — (1.5) (1.5) Derivative assets 0.5 2.5 — — 3.0 Derivative liabilities (47.2) (6.4) — — (53.6) Payments due to vendors (earnout agreements) — (196.7) — — (196.7) Liabilities in respect of put options — (391.5) — — (391.5) (46.7) (363.8) 90.0 (4,480.6) (4,801.1) Derivatives Held at Held at Amortised Carrying £m £m £m £m £m 2020 Other investments — 263.3 124.0 — 387.3 Cash and short-term deposits — — — 12,899.1 12,899.1 Bank overdrafts, bonds and bank loans — — — (8,619.2) (8,619.2) Bonds and bank loans — — — (4,975.5) (4,975.5) Trade and other receivables: amounts falling due within one year — — — 6,989.3 6,989.3 Trade and other receivables: amounts falling due after more than one year — — — 110.1 110.1 Trade and other payables: amounts falling due within one year — — — (10,268.0) (10,268.0) Trade and other payables: amounts falling due after more than one year — — — (0.9) (0.9) Derivative assets 9.6 0.2 — — 9.8 Derivative liabilities (6.3) (6.7) — — (13.0) Payments due to vendors (earnout agreements) — (114.3) — — (114.3) Liabilities in respect of put options — (110.7) — — (110.7) 3.3 31.8 124.0 (3,865.1) (3,706.0) |
Analysis of Financial Instruments Measured at Fair Value | The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into levels 1 to 3 based on the degree to which the fair value is observable: Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices); Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Level 1 Level 2 Level 3 £m £m £m 2021 Derivatives in designated hedge relationships Derivative assets — 0.5 — Derivative liabilities — (47.2) — Held at fair value through profit or loss Other investments 0.4 — 227.9 Derivative assets — 2.5 — Derivative liabilities — (6.4) — Payments due to vendors (earnout agreements) — — (196.7) Liabilities in respect of put options — — (391.5) Held at fair value through other comprehensive income Other investments 27.9 — 62.1 Level 1 Level 2 Level 3 £m £m £m 2020 Derivatives in designated hedge relationships Derivative assets — 9.6 — Derivative liabilities — (6.3) — Held at fair value through profit or loss Other investments 0.1 — 263.2 Derivative assets — 0.2 — Derivative liabilities — (6.7) — Payments due to vendors (earnout agreements) — — (114.3) Liabilities in respect of put options — — (110.7) Held at fair value through other comprehensive income Other investments 20.6 — 103.4 There have been no transfers between these levels in the years presented. Reconciliation of level 3 fair value measurements: Payments due to vendors (earnout agreements) Liabilities Other £m £m £m 1 January 2020 (243.7) (204.5) 456.1 Gains recognised in the income statement 13.4 12.3 7.9 Losses recognised in other comprehensive income — — (106.1) Exchange adjustments 5.3 2.3 — Additions (4.5) (4.2) 15.9 Disposals — — (7.0) Reclassification from other investments to interests in associates — — (0.2) Cancellations — 30.5 — Settlements 115.2 52.9 — 31 December 2020 (114.3) (110.7) 366.6 Losses recognised in the income statement (58.7) (40.6) (7.7) Losses recognised in other comprehensive income — — (42.8) Exchange adjustments 1.0 1.3 — Additions (81.7) (247.7) 1 5.9 Disposals — — (32.0) Cancellations — 0.8 — Settlements 57.0 5.4 — 31 December 2021 (196.7) (391.5) 290.0 Note 1 During the year, the Group merged Finsbury Glover Hering and Sard Verbinnen & Co to form a leading global strategic communications firm. As a part of this transaction, certain management acquired shares in the Company and a put option was granted which allows the equity partners to require the Group to purchase these shares. This resulted in additions to liabilities in respect of put options in the year of £219.6 million. |
Authorised and issued share c_2
Authorised and issued share capital (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of classes of share capital [abstract] | |
Summary of Authorised and Issued Share Capital | Equity Ordinary Shares Nominal Value Authorised At 1 January 2019 1,750,000,000 175.0 At 31 December 2019 1,750,000,000 175.0 At 31 December 2020 1,750,000,000 175.0 At 31 December 2021 1,750,000,000 175.0 Issued and fully paid At 1 January 2019 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 Exercise of share options 1,000 — Share cancellations (32,088,571) (3.2) At 31 December 2020 1,296,080,242 129.6 Exercise of share options 534,800 — Share cancellations (72,155,492) (7.2) At 31 December 2021 1,224,459,550 122.4 |
Options Granted | As at 31 December 2021, unexercised options over ordinary shares of 6,741 have been granted under the WPP Executive Share Option Scheme as follows: Number of ordinary Exercise price Exercise dates 3,696 8.333 2015 - 2022 3,045 10.595 2016 - 2023 As at 31 December 2021, unexercised options over ordinary shares of 1,090,954 and unexercised options over ADRs of 191,669 have been granted under the WPP Worldwide Share Ownership Programme as follows: Number of ordinary Exercise price Exercise dates 69,004 8.458 2015 - 2022 792,200 13.145 2017 - 2024 3,625 13.145 2018 - 2024 225,500 13.505 2016 - 2023 625 13.505 2017 - 2023 Number of ADRs Exercise price Exercise dates 23,024 67.490 2015 - 2022 91,660 102.670 2017 - 2024 76,985 110.760 2016 - 2023 As at 31 December 2021, unexercised options over ordinary shares of 12,396,275 and unexercised options over ADRs of 1,442,375 have been granted under the WPP Share Option Plan as follows: Number of ordinary Exercise price Exercise dates 11,250 7.344 2023 - 2027 2,525,625 7.344 2023 - 2030 8,750 8.372 2021 - 2025 1,256,150 8.372 2021 - 2028 10,375 9.600 2022 - 2026 1,947,050 9.600 2022 - 2029 3,258,125 11.065 2023 - 2030 9,250 13.085 2020 - 2024 1,329,975 13.085 2020 - 2027 34,250 15.150 2018 - 2022 917,975 15.150 2018 - 2025 4,500 15.150 2019 - 2025 7,500 17.055 2019 - 2023 1,075,500 17.055 2019 - 2026 Number of ADRs Exercise price Exercise dates 279,970 48.950 2023 - 2030 167,410 53.140 2021 - 2028 228,630 62.590 2022 - 2029 378,030 73.780 2023 - 2030 154,820 88.260 2020 - 2027 130,170 105.490 2020 - 2026 103,345 115.940 2018 - 2025 |
Movements and Weighted-average Exercise Price for Options Granted | Movements on options granted (represented in ordinary shares) 1 January 2021 Granted Exercised Forfeited Outstanding 31 December 2021 Exercisable 31 December 2021 WPP 6,741 — — — 6,741 6,741 WWOP 2,499,674 — (54,050) (396,325) 2,049,299 184,124 WSOP 17,940,725 5,155,800 (480,750) (3,007,625) 19,608,150 14,287,525 20,447,140 5,155,800 (534,800) (3,403,950) 21,664,190 14,478,390 Weighted average exercise price for options over 1 January 2021 Granted Exercised Forfeited Outstanding 31 December 2021 Exercisable 31 December 2021 Ordinary shares (£) WPP 9.355 — — — 9.355 9.355 WWOP 12.631 — 7.304 11.803 12.923 8.458 WSOP 10.596 11.065 8.372 10.116 10.854 9.322 ADRs ($) WWOP 98.509 — 49.313 89.225 101.693 67.490 WSOP 70.363 73.780 53.248 66.257 72.228 61.479 |
Range of Exercise Prices of Options | Options over ordinary shares Outstanding Range of Weighted average Weighted average 7.344-17.055 11.021 86 Options over ADRs Outstanding Range of Weighted average Weighted average 48.950-115.940 75.684 83 |
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: 2021 2020 2019 Fair value of UK options (shares) 220.0 p 128.0 p 117.0 p Fair value of US options (ADRs) $14.89 $8.95 $8.49 Weighted average assumptions UK risk-free interest rate 0.63 % -0.02 % 0.57 % US risk-free interest rate 1.16 % 0.31 % 1.61 % Expected life (months) 48 48 48 Expected volatility 34 % 34 % 24 % Dividend yield 3.4 % 4.2 % 3.8 % |
Other reserves (Tables)
Other reserves (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of reserves within equity [abstract] | |
Summary of Other Reserves | Other reserves comprise the following: Capital Equity Hedging reserve 1 £m Translation reserve 1 £m Total Balance at 1 January 2019 2.7 (236.4) — 1,196.1 962.4 Restatement 2 — — — (4.8) (4.8) Restated balance at 1 January 2019 2.7 (236.4) — 1,191.3 957.6 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) Balance at 31 December 2019 3.2 (478.1) — 300.2 (174.7) Exchange adjustments on foreign currency net investments — — — 85.2 85.2 Gain on net investment hedges — — — 9.7 9.7 Loss on cash flow hedges — — (5.9) — (5.9) Share of other comprehensive loss of associate undertakings — — — (61.5) (61.5) Exchange adjustments recycled to the income statement on disposal of discontinued operations — — — (20.6) (20.6) Share cancellations 3.2 — — — 3.2 Recognition/derecognition of liabilities in respect of put options — 103.5 — — 103.5 Share purchases – close period commitments — 252.3 — — 252.3 Balance at 31 December 2020 6.4 (122.3) (5.9) 313.0 191.2 Exchange adjustments on foreign currency net investments — — — (94.7) (94.7) Gain on net investment hedges — — — 45.5 45.5 Loss on cash flow hedges — — (38.0) — (38.0) Share of other comprehensive income of associate undertakings — — — 7.3 7.3 Share cancellations 7.2 — — — 7.2 Recognition/derecognition of liabilities in respect of put options — (242.7) — — (242.7) Share purchases – close period commitments — (211.7) — — (211.7) Balance at 31 December 2021 13.6 (576.7) (43.9) 271.1 (335.9) Notes 1 Prior year figures have been re-presented to separately disclose the hedging reserve included previously within the translation reserve. 2 Other reserves and retained earnings have been restated for the impact of a tax restatement, as described in the accounting policies. |
Summary of Translation Reserve Comprises | The translation reserve comprises: 2021 £m 2020 £m 2019 £m Balance relating to continuing net investment hedges (2.3) 9.7 — Balance relating to discontinued net investment hedges (85.0) (142.5) (142.5) Balance related to retranslation of foreign currency net investments 358.4 445.8 442.7 271.1 313.0 300.2 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about business combination [abstract] | |
Book Values of Identifiable Assets and Liabilities Acquired and Their Fair Value | The Group acquired a number of subsidiaries in the year. 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 value Intangible assets — 97.7 97.7 Right-of-use assets 36.6 (3.4) 33.2 Property, plant and equipment 4.0 — 4.0 Cash and cash equivalents (2.3) — (2.3) Trade receivables due within one year 40.0 — 40.0 Other current assets 5.9 0.9 6.8 Total assets 84.2 95.2 179.4 Current liabilities (28.5) (0.3) (28.8) Trade and other payables due after one year (2.3) (5.8) (8.1) Deferred tax liabilities — (22.5) (22.5) Long-term lease liabilities (34.2) — (34.2) Total liabilities (65.0) (28.6) (93.6) Net assets 19.2 66.6 85.8 Non-controlling interests (3.0) Goodwill 331.9 Consideration 414.7 Consideration satisfied by: Cash 225.9 Equity instruments of subsidiary company 110.8 Payments due to vendors 78.0 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of transactions between related parties [abstract] | |
Summary of related party transactions outstanding | The following amounts were outstanding at 31 December: 2021 2020 £m £m Amounts owed by related parties Kantar 30.3 39.0 Other 45.7 27.9 76.0 66.9 Amounts owed to related parties Kantar (6.2) (5.6) Other (51.4) (36.0) (57.6) (41.6) |
Reconciliation of operating p_2
Reconciliation of operating profit/(loss) to headline operating profit (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of reconciliation of profit before interest and taxation to headline PBIT [abstract] | |
Reconciliation of Operating Profit to Headline Operating Profit | Reconciliation of operating profit/(loss) to headline operating profit: 2021 2020 2019 Continuing operations £m £m £m Operating profit/(loss) 1,229.0 (2,278.1) 1,295.9 Amortisation and impairment of acquired intangible assets 97.8 89.1 121.5 Goodwill impairment 1.8 2,822.9 47.7 Losses/(gains) on disposal of investments and subsidiaries 10.6 (7.8) (40.4) Gains on remeasurement of equity interests arising from a change in scope of ownership — (0.6) (0.4) Investment and other impairment (reversals)/charges (42.4) 296.2 7.5 Litigation settlement 21.3 25.6 (16.8) Gain on sale of freehold property in New York — — (7.9) Restructuring and transformation costs 145.5 80.7 153.5 Restructuring costs in relation to Covid-19 29.9 232.5 — Headline operating profit 1,493.5 1,260.5 1,560.6 |
Accounting policies - Impact of
Accounting policies - Impact of for Configuration and Customisation Costs and Restatement (Detail) - GBP (£) £ / shares in Units, £ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Disclosure of IAS 32 and IAS 39 Restatements [line items] | |||||||
Costs associated with implemenation | £ 62.2 | £ 14 | |||||
Adjustment to equity | (4,069) | (5,050.1) | [1] | £ (8,297.3) | [1] | £ (9,576.9) | |
Adjustment to corporate income tax recoverable | (90.4) | (110.3) | [1] | (142.6) | [1] | ||
Adjustment to corporate income tax payable | 386.2 | 424.4 | [1] | 595.6 | [1] | ||
Adjustment to income tax expense | £ 230.1 | £ 127.1 | [2] | £ 287.2 | [2] | ||
Adjustment to basic earnings per share (sterling per share) | £ 0.534 | £ (2.430) | £ 0.678 | ||||
Adjustment to diluted earnings per share (sterling per share) | £ 0.525 | £ (2.430) | £ 0.673 | ||||
Retained earnings | |||||||
Disclosure of IAS 32 and IAS 39 Restatements [line items] | |||||||
Adjustment to equity | [3] | £ (4,367.3) | £ (4,959.2) | £ (8,576.2) | (8,747.6) | ||
Other reserves | |||||||
Disclosure of IAS 32 and IAS 39 Restatements [line items] | |||||||
Adjustment to equity | £ 335.9 | (191.2) | 174.7 | (957.6) | |||
Increase (decrease) due to corrections of prior period errors | |||||||
Disclosure of IAS 32 and IAS 39 Restatements [line items] | |||||||
Adjustment to equity | [4] | 106.3 | |||||
Adjustment to corporate income tax recoverable | 22.8 | 22.8 | |||||
Adjustment to corporate income tax payable | 93.5 | 95.7 | |||||
Adjustment to income tax expense | £ 2.2 | £ 12.2 | |||||
Adjustment to basic earnings per share (sterling per share) | £ 0.2 | £ 1 | |||||
Adjustment to diluted earnings per share (sterling per share) | £ 0.2 | £ 0.9 | |||||
Increase (decrease) due to corrections of prior period errors | Retained earnings | |||||||
Disclosure of IAS 32 and IAS 39 Restatements [line items] | |||||||
Adjustment to equity | [3],[4] | 101.5 | |||||
Increase (decrease) due to corrections of prior period errors | Other reserves | |||||||
Disclosure of IAS 32 and IAS 39 Restatements [line items] | |||||||
Adjustment to equity | [4] | £ 4.8 | |||||
[1] | Figures have been restated as described in the accounting policies. | ||||||
[2] | Figures have been restated as described in the accounting policies. | ||||||
[3] | Accumulated losses on existing equity investments held at fair value through other comprehensive income are £309.1 million at 31 December 2021 (2020: £273.6 million, 2019: £145.9 million). | ||||||
[4] | Figures have been restated as described in the accounting policies. |
Accounting policies - Summary o
Accounting policies - Summary of Estimated Useful Life of Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Bottom of Range | Brand names | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 10 years |
Bottom of Range | Customer-related intangibles | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 3 years |
Bottom of Range | Other proprietary tools | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 3 years |
Bottom of Range | Other | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 3 years |
Top of Range | Brand names | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 20 years |
Top of Range | Customer-related intangibles | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 10 years |
Top of Range | Other proprietary tools | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 10 years |
Top of Range | Other | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets, estimated useful life | 5 years |
Accounting policies - Contingen
Accounting policies - Contingent Consideration (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Bottom of Range | |
Disclosure of detailed information about business combination [line items] | |
Contingent consideration performance period | 4 years |
Top of Range | |
Disclosure of detailed information about business combination [line items] | |
Contingent consideration performance period | 5 years |
Accounting policies - Summary_2
Accounting policies - Summary of Estimated Useful Life of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Freehold buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 50 years |
Leasehold land and buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | over the term of the lease or life of the asset, if shorter |
Bottom of Range | Fixtures, fittings and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 3 years |
Bottom of Range | Computer equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 3 years |
Top of Range | Fixtures, fittings and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 10 years |
Top of Range | Computer equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment, estimated useful life | 5 years |
Accounting policies - Hyperinfl
Accounting policies - Hyperinflation in Argentina - Additional Information (Detail) - Argentina £ in Millions | 12 Months Ended | ||
Dec. 31, 2021GBP (£) | Dec. 31, 2020GBP (£) | Dec. 31, 2019GBP (£) | |
Disclosure of Hyperinflationary Reporting [line items] | |||
Increase in goodwill due to hyperinflation | £ 23.9 | £ 22.6 | £ 41 |
Increase in other intangibles due to hyperinflation | 7.6 | 5.3 | 7.1 |
Increase in property plant and equipment due to hyperinflation | £ 20.3 | £ 19.3 | £ 10.7 |
Consumer price index | 582,500,000 | 385,900,000 | 283,400,000 |
Segment information - Contribut
Segment information - Contributions by Reportable Segments (Details) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2021GBP (£)Reportable_segment | Dec. 31, 2020GBP (£) | Dec. 31, 2019GBP (£) | |||
Disclosure of operating segments [line items] | |||||
Number of reportable segments | Reportable_segment | 3 | ||||
Revenue | £ 12,801.1 | £ 12,002.8 | [1] | £ 13,234.1 | [1] |
Headline operating profit | 1,493.5 | 1,260.5 | 1,560.6 | ||
Share-based payments | 99.6 | 74.4 | 66 | ||
Capital additions | 293.1 | 272.6 | 329.8 | ||
Depreciation and amortisation | 444 | 541.9 | 508.3 | ||
Goodwill impairment | 1.8 | 2,822.9 | 47.7 | ||
Share of results of associates | 23.8 | (136) | [1] | 14.7 | [1] |
Interests in associates and joint ventures | 412.9 | 330.7 | [2] | 813 | [2] |
Global Integrated Agencies | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 10,836.3 | 10,265.5 | 11,269.2 | ||
Revenue less pass-through costs | 8,638.7 | 8,194.2 | 9,090.4 | ||
Headline operating profit | 1,215.5 | 1,059.9 | 1,358.6 | ||
Share-based payments | 92.3 | 61.3 | 57.2 | ||
Capital additions | 252.7 | 234.2 | 284.5 | ||
Depreciation and amortisation | 372.8 | 449.7 | 424.6 | ||
Goodwill impairment | 0 | 2,355.1 | 4.8 | ||
Share of results of associates | 22.7 | 19 | 16.8 | ||
Interests in associates and joint ventures | 115.2 | 158.4 | 164.6 | ||
Public Relations | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 959 | 892.9 | 956.5 | ||
Revenue less pass-through costs | 909.7 | 854.4 | 898 | ||
Headline operating profit | 143.1 | 141.3 | 140.6 | ||
Share-based payments | 4.8 | 8 | 4.6 | ||
Capital additions | 17.9 | 15.5 | 17.5 | ||
Depreciation and amortisation | 28.1 | 32.8 | 31.5 | ||
Goodwill impairment | 0 | 161.5 | 0 | ||
Share of results of associates | 1.7 | 1.3 | (0.3) | ||
Interests in associates and joint ventures | 8 | 6.4 | 5.5 | ||
Specialist Agencies | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 1,005.8 | 844.4 | 1,008.4 | ||
Revenue less pass-through costs | 848.8 | 713.4 | 858.1 | ||
Headline operating profit | 134.9 | 59.3 | 61.4 | ||
Share-based payments | 2.5 | 5.1 | 4.2 | ||
Capital additions | 22.5 | 22.9 | 27.8 | ||
Depreciation and amortisation | 43.1 | 59.4 | 52.2 | ||
Goodwill impairment | 1.8 | 306.3 | 42.9 | ||
Share of results of associates | (0.6) | (156.3) | (1.8) | ||
Interests in associates and joint ventures | £ 289.7 | £ 165.9 | £ 642.9 | ||
[1] | Figures have been restated as described in the accounting policies. | ||||
[2] | Figures have been restated as described in the accounting policies. |
Segment information - Contrib_2
Segment information - Contributions by Geographical Area (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Disclosure of geographical areas [line items] | |||||
Revenue | £ 12,801.1 | £ 12,002.8 | [1] | £ 13,234.1 | [1] |
Headline operating profit | 1,493.5 | 1,260.5 | 1,560.6 | ||
Non-current assets | 12,193.2 | 11,962.9 | |||
North America | |||||
Disclosure of geographical areas [line items] | |||||
Revenue | 4,494.2 | 4,464.9 | 4,854.7 | ||
Revenue less pass-through costs | 3,849.2 | 3,743.4 | 4,034.3 | ||
Headline operating profit | 655.7 | 611.9 | 662 | ||
Non-current assets | 5,075.4 | 4,962.1 | |||
United Kingdom | |||||
Disclosure of geographical areas [line items] | |||||
Revenue | 1,866.9 | 1,637 | 1,797.1 | ||
Revenue less pass-through costs | 1,414.3 | 1,233.8 | 1,390.1 | ||
Headline operating profit | 180.9 | 137.7 | 188.5 | ||
Non-current assets | 1,565.4 | 1,488.7 | |||
Western Continental Europe | |||||
Disclosure of geographical areas [line items] | |||||
Revenue | 2,786.3 | 2,441.6 | 2,628.8 | ||
Revenue less pass-through costs | 2,225.4 | 2,019.4 | 2,176.4 | ||
Headline operating profit | 288.6 | 198.7 | 261.5 | ||
Non-current assets | 2,618.8 | 2,745 | |||
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe | |||||
Disclosure of geographical areas [line items] | |||||
Revenue | 3,653.7 | 3,459.3 | 3,953.5 | ||
Revenue less pass-through costs | 2,908.3 | 2,765.4 | 3,245.7 | ||
Headline operating profit | 368.3 | 312.2 | 448.6 | ||
Non-current assets | 2,933.6 | 2,767.1 | |||
United States | |||||
Disclosure of geographical areas [line items] | |||||
Revenue | 4,220.8 | 4,216.1 | 4,576.5 | ||
Revenue less pass-through costs | 3,597.4 | 3,524.8 | 3,806.3 | ||
Headline operating profit | 615.2 | 563.7 | £ 620.6 | ||
Non-current assets | £ 4,730.1 | £ 4,609 | |||
[1] | Figures have been restated as described in the accounting policies. |
Costs of services and general_3
Costs of services and general and administrative costs - Summary of Operating Costs (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Analysis of income and expense [abstract] | |||||
Costs of services | £ 10,597.5 | £ 9,987.9 | [1] | £ 10,825.1 | [1] |
General and administrative costs | 974.6 | 4,293 | [1] | 1,113.1 | [1] |
Costs of services and general and administrative costs | 11,572.1 | 14,280.9 | 11,938.2 | ||
Costs of services and general and administrative costs include: | |||||
Staff costs (note 5) | 7,166.7 | 6,556.5 | 7,090.6 | ||
Establishment costs | 529 | 638.5 | 672.9 | ||
Media pass-through costs | 1,865.3 | 1,555.2 | 1,656.2 | ||
Other costs of services and general and administrative costs | 2,011.1 | 5,530.7 | 2,518.5 | ||
Goodwill impairment (note 14) | 1.8 | 2,822.9 | 47.7 | ||
Investment and other impairment (reversals)/charges | (42.4) | 296.2 | 7.5 | ||
Restructuring and transformation costs | 145.5 | 80.7 | 153.5 | ||
Restructuring costs in relation to Covid-19 | 29.9 | 232.5 | 0 | ||
Litigation settlement | 21.3 | 25.6 | (16.8) | ||
Gain on sale of freehold property in New York | 0 | 0 | (7.9) | ||
Amortisation and impairment of acquired intangible assets | 97.8 | 89.1 | 121.5 | ||
Amortisation of other intangible assets | 19.9 | 35.2 | 21.2 | ||
Depreciation of property, plant and equipment | 151.2 | 174.8 | 185.5 | ||
Depreciation of right-of-use assets | 272.9 | 331.9 | 301.6 | ||
(Gains)/losses on sale of property, plant and equipment | (1.3) | 0.3 | 3.2 | ||
Gains (losses) on disposals of investments | (10.6) | 7.8 | 40.4 | ||
Gains on remeasurement of equity interests arising from a change in scope of ownership | 0 | (0.6) | (0.4) | ||
Net foreign exchange losses | 4.4 | 5.9 | 6.1 | ||
Short-term lease expense | 18 | 36.7 | 83.8 | ||
Low-value lease expense | 2.3 | 2.3 | 2.9 | ||
Other pass-through costs | 538.6 | 685.6 | £ 731.4 | ||
Disclosure Of Information About Operating Cost [line items] | |||||
Charge for the year | 47.9 | 21.6 | |||
Impairment loss recognised other intangibles | £ 10.1 | £ 0 | |||
[1] | Figures have been restated as described in the accounting policies. |
Costs of services and general_4
Costs of services and general and administrative costs - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Information About Operating Cost [line items] | |||
Credits relating to the release of excess provisions and other balances | £ 19.3 | £ 46.3 | £ 26.9 |
Amortisation and impairment of acquired intangible assets | 97.8 | 89.1 | 121.5 |
Charge for the year | 47.9 | 21.6 | |
Investment and other impairment (reversals)/charges | 42.4 | (296.2) | (7.5) |
Losses/(gains) on disposal of investments and subsidiaries | 10.6 | ||
Gains on disposal of investments and subsidiaries | 40.4 | ||
Restructuring and transformation costs | 145.5 | 80.7 | 153.5 |
Restructuring and transformation costs, IT Transformation Program | (94.2) | ||
Restructuring and transformation costs in relation to the continuing restructuring plan | 51.3 | ||
Restructuring costs in relation to Covid-19 | 29.9 | 232.5 | 0 |
Impairment charges within restructuring costs | 39.2 | 196.7 | |
Impairment loss, right of use assets | 19.3 | 117 | |
Impairment charges included within restructuring costs | 9.8 | 79.7 | |
Impairment loss recognised other intangibles | 10.1 | 0 | |
Goodwill impairment | 1.8 | 2,822.9 | 47.7 |
Brand Names No Longer In Use | |||
Disclosure Of Information About Operating Cost [line items] | |||
Charge for the year | 47.9 | 21.6 | 26.5 |
Brand names | |||
Disclosure Of Information About Operating Cost [line items] | |||
Charge for the year | 43.8 | ||
Imagina | |||
Disclosure Of Information About Operating Cost [line items] | |||
Investment and other impairment (reversals)/charges | (255.6) | ||
ERP System | |||
Disclosure Of Information About Operating Cost [line items] | |||
Restructuring and transformation costs | (62.2) | (14) | |
Covid-19 Pandemic | |||
Disclosure Of Information About Operating Cost [line items] | |||
Restructuring costs in relation to Covid-19 | 29.9 | 232.5 | 0 |
Proceeds from government grant | 5.3 | 77.1 | 0 |
Impairment charges within restructuring costs | 17.6 | 147.6 | |
Transformation Costs | |||
Disclosure Of Information About Operating Cost [line items] | |||
Impairment charges within restructuring costs | 21.6 | 49.1 | |
XMKT | |||
Disclosure Of Information About Operating Cost [line items] | |||
Losses/(gains) on disposal of investments and subsidiaries | £ 4.9 | ||
Chime | |||
Disclosure Of Information About Operating Cost [line items] | |||
Gains on disposal of investments and subsidiaries | £ 28.6 | ||
Other business | |||
Disclosure Of Information About Operating Cost [line items] | |||
Goodwill impairment | £ 2,822.9 |
Costs of services and general_5
Costs of services and general and administrative costs - Auditor's Remuneration (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Information About Operating Cost [line items] | |||
Audit-related services | £ 0.4 | £ 0.4 | £ 0.4 |
Fees payable to the auditors pursuant to legislation | 31.9 | 29.3 | 34.5 |
Other services | 1.4 | 0.7 | 7.8 |
Total other fees | 1.8 | 1.2 | 8.2 |
Total fees | 33.7 | 30.5 | 42.7 |
Compliance services | |||
Disclosure Of Information About Operating Cost [line items] | |||
Tax compliance services | 0 | 0.1 | 0 |
WPP plc | |||
Disclosure Of Information About Operating Cost [line items] | |||
Audit-related services | 7.1 | 6.4 | 6.5 |
Subsidiaries | |||
Disclosure Of Information About Operating Cost [line items] | |||
Audit-related services | £ 24.8 | £ 22.9 | £ 28 |
Share of results of associate_2
Share of results of associates - Summary of Share of Results of Associates (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Disclosure of associates [abstract] | |||||
Share of profit before interest and taxation | £ 208.5 | £ 142.5 | £ 99.2 | ||
Share of exceptional losses | (62.3) | (146.1) | (47.8) | ||
Share of interest and non-controlling interests | (83.9) | (91.4) | (19.4) | ||
Share of taxation | (38.5) | (41) | (17.3) | ||
Share of profit loss of associates accounted for using equity method | £ 23.8 | £ (136) | [1] | £ 14.7 | [1] |
[1] | Figures have been restated as described in the accounting policies. |
Share of results of associate_3
Share of results of associates - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of associates [line items] | |||
Share of exceptional gains (losses) of associates | £ 62.3 | £ 146.1 | £ 47.8 |
Kantar | |||
Disclosure of associates [line items] | |||
Amortisation and impairment of acquired intangible assets other than goodwill | 38.8 | 54.3 | 5.3 |
Restructuring and one-off transformation costs | £ 18.8 | £ 89.3 | £ 20.3 |
Our people - Additional Informa
Our people - Additional Information (Details) - employees | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number and average number of employees [abstract] | |||
Average number of staff | 104,808 | 104,163 | 132,823 |
Staff numbers at the end of period | 109,382 | 99,830 | 106,786 |
Our people - Geographical Distr
Our people - Geographical Distribution of staff (Details) - employees | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of geographical areas [line items] | |||
Average number of staff | 104,808 | 104,163 | 132,823 |
North America | |||
Disclosure of geographical areas [line items] | |||
Average number of staff | 21,764 | 21,524 | 25,008 |
United Kingdom | |||
Disclosure of geographical areas [line items] | |||
Average number of staff | 10,995 | 10,670 | 14,192 |
Western Continental Europe | |||
Disclosure of geographical areas [line items] | |||
Average number of staff | 21,514 | 21,551 | 26,973 |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe | |||
Disclosure of geographical areas [line items] | |||
Average number of staff | 50,535 | 50,418 | 66,650 |
Our people - Reportable Segment
Our people - Reportable Segment Distribution of Staff (Details) - employees | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of operating segments [line items] | |||
Average number of staff | 104,808 | 104,163 | 132,823 |
Global Integrated Agencies | |||
Disclosure of operating segments [line items] | |||
Average number of staff | 89,701 | 88,406 | 90,582 |
Data Investment Management | |||
Disclosure of operating segments [line items] | |||
Average number of staff | 0 | 1,341 | 26,325 |
Public Relations | |||
Disclosure of operating segments [line items] | |||
Average number of staff | 7,121 | 6,810 | 6,890 |
Specialist Agencies | |||
Disclosure of operating segments [line items] | |||
Average number of staff | 7,986 | 7,606 | 9,026 |
Our people - Staffing Costs (De
Our people - Staffing Costs (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number and average number of employees [abstract] | |||
Wages and salaries | £ 4,797.2 | £ 4,781 | £ 4,946.2 |
Cash-based incentive plans | 455.2 | 110.7 | 227.6 |
Share-based incentive plans | 99.6 | 74.4 | 66 |
Social security costs | 630.1 | 570.9 | 591.7 |
Pension costs | 177.7 | 171.7 | 169.7 |
Severance | 41.8 | 68.2 | 42.6 |
Other staff costs | 965.1 | 779.6 | 1,046.8 |
Staffing costs | £ 7,166.7 | £ 6,556.5 | £ 7,090.6 |
Our people - Summary of Compens
Our people - Summary of Compensation for Key Management Personnel (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number and average number of employees [abstract] | |||
Short-term employee benefits | £ 28 | £ 17.9 | £ 18.3 |
Pensions and other post-retirement benefits | 0.9 | 1 | 1 |
Share-based payments | 14.6 | 10.3 | 10.8 |
Key management personnel compensation | £ 43.5 | £ 29.2 | £ 30.1 |
Finance and investment income_3
Finance and investment income, finance costs and revaluation and retranslation of financial instruments - Summary of Finance Income, Finance Costs and Revaluation and Retranslation of Financial Instruments (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Statement [Line Items] | |||||
Income from equity investments | £ (17.8) | £ (8.7) | £ (18.3) | ||
Finance income | 69.4 | 82.7 | [1] | 99 | [1] |
Net interest expense on pension plans | 1.8 | 2.9 | 3.5 | ||
Interest expense related to lease liabilities | (88.4) | (98.5) | (105.1) | ||
Finance costs | 283.6 | 312 | [1] | 359.1 | [1] |
Revaluation and Retranslation of Financial Instruments | (87.8) | (147.2) | [1] | 163.8 | [1] |
Continuing Operations | |||||
Statement [Line Items] | |||||
Income from equity investments | 17.9 | 8.7 | 18.3 | ||
Interest income | 51.5 | 74 | 80.7 | ||
Finance income | 69.4 | 82.7 | 99 | ||
Net interest expense on pension plans | 1.8 | 2.9 | 3.5 | ||
Interest on other long-term employee benefits | 2.4 | 3.1 | 3.9 | ||
Interest expense and similar charges | 188.5 | 205 | 252 | ||
Interest expense related to lease liabilities | 90.9 | 101 | 99.7 | ||
Finance costs | 283.6 | 312 | 359.1 | ||
Movements in fair value of treasury instruments | 9.1 | 15.4 | 0.4 | ||
Premium on the early repayment of bonds | (13) | 0 | (63.4) | ||
Revaluation of investments held at fair value through profit or loss | (7.5) | 8 | 9.1 | ||
Revaluation of put options over non-controlling interests | (40.6) | 12.3 | (24.3) | ||
Revaluation of payments due to vendors (earnout agreements) | (58.7) | 13.4 | (3.7) | ||
Retranslation of financial instruments | £ 22.9 | £ (196.3) | £ 245.7 | ||
[1] | Figures have been restated as described in the accounting policies. |
Finance and investment income_4
Finance and investment income, finance costs and revaluation and retranslation of financial instruments - Additional Information (Details) € in Millions, £ in Millions, $ in Millions, $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021GBP (£) | Dec. 31, 2021AUD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020AUD ($) |
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | £ | £ 4,441.7 | £ 5,032.7 | |||||
US commercial paper | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | € | € 0 | ||||||
Weighted average | US revolving credit facilities | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ 0 | $ 0 | |||||
Weighted average | Australian New Zealand revolving credit facilities | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ 52 | $ 151 | |||||
Average interest rate | 1.89% | 1.89% | 1.89% | 1.89% | 2.06% | 2.06% | 2.06% |
Weighted average | US commercial paper | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ 0 | $ 2 | |||||
Average interest rate | 1.66% | 1.66% | 1.66% | ||||
Weighted average | Euro Commercial Paper Programme | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | £ | £ 0 | £ 0 | |||||
US Dollar bonds | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | $ 1,063 | ||||||
US Dollar bonds | Weighted average | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Average interest rate | 4.26% | 4.26% | 4.26% | 4.26% | |||
Eurobonds | Weighted average | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | € | € 3,600 | ||||||
Average interest rate | 1.94% | 1.94% | 1.94% | 1.94% | |||
Sterling bonds | Weighted average | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings | £ | £ 650 | ||||||
Average interest rate | 3.21% | 3.21% | 3.21% | 3.21% |
Taxation - Additional Informati
Taxation - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Major components of tax expense (income) [abstract] | |||
Effective tax rate on (loss)/profit before tax | 24.20% | (4.60%) | 23.70% |
Remeasurement of UK deferred tax balances, recognized tax credit | £ 23.8 | £ 0 | £ 0 |
Taxation - Tax Charge (Details)
Taxation - Tax Charge (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Corporation tax | |||||
Current year | £ 404 | £ 307.8 | £ 435.2 | ||
Prior years | (41.4) | (83.2) | (63.4) | ||
Corporation tax | 362.6 | 224.6 | 371.8 | ||
Deferred tax | |||||
Current year | (131) | (80.2) | (78.3) | ||
Prior years | (1.5) | (17.3) | (6.3) | ||
Deferred tax | (132.5) | (97.5) | (84.6) | ||
Tax charge | £ 230.1 | £ 127.1 | [1] | £ 287.2 | [1] |
[1] | Figures have been restated as described in the accounting policies. |
Taxation - Tax Charge Reconcile
Taxation - Tax Charge Reconciled to Profit Before Taxation (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Major components of tax expense (income) [abstract] | |||||
Profit before taxation | £ 950.8 | £ (2,790.6) | [1] | £ 1,214.3 | [1] |
Tax at the corporation rate of 19.0% | 180.7 | (530.2) | 230.7 | ||
Tax effect of share of results of associates | (13.3) | 16.2 | (2.7) | ||
Irrecoverable withholding taxes | 52.3 | 49.4 | 44.7 | ||
Items that are not deductible in determining taxable profit | 29.3 | 67 | 53.7 | ||
Goodwill impairment | 0.6 | 542.4 | 10.4 | ||
Effect of different tax rates in subsidiaries operating in other jurisdictions | 81.2 | 92.7 | 77.1 | ||
Origination and reversal on unrecognised temporary differences | (36.3) | (29.3) | (3.4) | ||
Tax losses not recognised or utilised in the year | 7.4 | 21.1 | 13.2 | ||
Utilisation of tax losses not previously recognised | (5.1) | (1.7) | (42.7) | ||
Recognition of temporary differences not previously recognised | 0 | 0 | (24.1) | ||
Net release of prior year provisions in relation to acquired businesses | (1.1) | (1.7) | (19.9) | ||
Other prior year adjustments | (41.8) | (98.8) | (49.8) | ||
Impact of deferred tax rate change | (23.8) | 0 | 0 | ||
Tax charge | £ 230.1 | £ 127.1 | [1] | £ 287.2 | [1] |
Effective tax rate on profit/(loss) before tax | 24.20% | (4.60%) | 23.70% | ||
[1] | Figures have been restated as described in the accounting policies. |
Taxation - Tax Charge Reconci_2
Taxation - Tax Charge Reconciled to Profit Before Taxation (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Major components of tax expense (income) [abstract] | |||
UK corporation tax rate | 19.00% | 19.00% | 19.00% |
Ordinary dividends - Summary of
Ordinary dividends - Summary of Ordinary Dividends (Details) - GBP (£) £ / shares in Units, £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Dividends [line items] | |||
Amounts recognised as distributions to equity holders, per share | £ 0.2650 | £ 0.1000 | £ 0.6000 |
Amounts recognised as distributions to equity holders | £ 314.7 | £ 122 | £ 750.5 |
Previous period final amount | |||
Disclosure of Dividends [line items] | |||
Amounts recognised as distributions to equity holders, per share | £ 0.1400 | £ 0 | £ 0.3730 |
Amounts recognised as distributions to equity holders | £ 167.7 | £ 0 | £ 466.4 |
Interim period amount | |||
Disclosure of Dividends [line items] | |||
Amounts recognised as distributions to equity holders, per share | £ 0.1250 | £ 0.1000 | £ 0.2270 |
Amounts recognised as distributions to equity holders | £ 147 | £ 122 | £ 284.1 |
Ordinary dividends - Summary _2
Ordinary dividends - Summary of Proposed Final Dividend (Details) - £ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Dividends [abstract] | |||
Proposed final dividend, per share | £ 0.1870 | £ 0.1400 | £ 0 |
Earnings per share - Calculatio
Earnings per share - Calculation of Basic and Diluted EPS (Details) - GBP (£) £ / shares in Units, £ in Millions, shares in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Earnings per share [line items] | |||||
Earnings | £ 637.7 | £ (2,971.6) | £ 847.9 | ||
Weighted average shares used in basic EPS calculation (in shares) | 1,194.1 | 1,223 | 1,250 | ||
EPS (in dollar per share) | £ 0.534 | £ (2.430) | £ 0.678 | ||
Diluted earnings | £ 637.7 | £ (2,971.6) | £ 847.9 | ||
Weighted average shares used in diluted EPS calculation (in shares) | 1,215.3 | 1,223 | 1,260.6 | ||
Diluted EPS (in dollar per share) | £ 0.525 | £ (2.430) | £ 0.673 | ||
Discontinued operations | |||||
Earnings per share [line items] | |||||
Earnings | £ 0 | £ 6.5 | £ (3.8) | ||
Weighted average shares used in basic EPS calculation (in shares) | 0 | 1,223 | 1,250 | ||
EPS (in dollar per share) | £ 0 | £ 0.005 | £ (0.003) | ||
Diluted earnings | £ 0 | £ 6.5 | £ (3.8) | ||
Weighted average shares used in diluted EPS calculation (in shares) | 0 | 1,223 | 1,260.6 | ||
Diluted EPS (in dollar per share) | £ 0 | £ 0.005 | £ (0.003) | ||
Continuing and discontinued operations | |||||
Earnings per share [line items] | |||||
Earnings | £ 637.7 | £ (2,965.1) | £ 844.1 | ||
Weighted average shares used in basic EPS calculation (in shares) | 1,194.1 | 1,223 | 1,250 | ||
EPS (in dollar per share) | £ 0.534 | £ (2.425) | [1] | £ 0.675 | [1] |
Diluted earnings | £ 637.7 | £ (2,965.1) | £ 844.1 | ||
Weighted average shares used in diluted EPS calculation (in shares) | 1,215.3 | 1,223 | 1,260.6 | ||
Diluted EPS (in dollar per share) | £ 0.525 | £ (2.425) | [1] | £ 0.670 | [1] |
[1] | Figures have been restated as described in the accounting policies. |
Earnings per share - Additional
Earnings per share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per share [line items] | |||
Shares excluded from the computation of diluted earnings per share | 7,200,000 | 14,200,000 | 19,300,000 |
Treasury shares | |||
Earnings per share [line items] | |||
Ordinary shares in issue | 70,489,953 | 70,748,100 | 70,787,730 |
Ordinary shares | |||
Earnings per share [line items] | |||
Ordinary shares in issue | 1,224,459,550 | 1,296,080,242 | 1,328,167,813 |
Earnings per share - Reconcilia
Earnings per share - Reconciliation Between Shares Used in Calculating Basic and Diluted EPS (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per share [line items] | |||
Weighted average shares used in basic EPS calculation | 1,194.1 | 1,223 | 1,250 |
Dilutive share options outstanding | 1.3 | 0 | 0.3 |
Other potentially issuable shares | 19.9 | 13 | 10.3 |
Weighted average shares used in diluted EPS calculation | 1,215.3 | 1,223 | 1,260.6 |
Continuing and discontinued operations | |||
Earnings per share [line items] | |||
Weighted average shares used in basic EPS calculation | 1,194.1 | 1,223 | 1,250 |
Dilutive shares inclusive of anti-dilutive shares (in shares) | 1,236 | ||
Weighted average shares used in diluted EPS calculation | 1,215.3 | 1,223 | 1,260.6 |
Sources of finance - Summary of
Sources of finance - Summary of Equity and Debt Financing (Details) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Analysis of changes in financing | ||||||
Beginning balance | £ 5,050.1 | [1] | £ 8,297.3 | [1] | £ 9,576.9 | |
Ordinary shares issued | 4.4 | 0.6 | ||||
Share cancellations | 729.3 | 281.2 | 47.7 | |||
Ending balance | 4,069 | 5,050.1 | [1] | 8,297.3 | [1] | |
Analysis of changes in financing | ||||||
Beginning of year | 5,032.7 | |||||
End of year | 4,441.7 | 5,032.7 | ||||
Issued capital and share premium | ||||||
Analysis of changes in financing | ||||||
Beginning balance | 699.9 | 703.1 | ||||
Ordinary shares issued | 4.4 | 0 | ||||
Share cancellations | (7.2) | (3.2) | ||||
Ending balance | 697.1 | 699.9 | 703.1 | |||
Debt financing | ||||||
Analysis of changes in financing | ||||||
Beginning of year | 5,032.7 | 4,272.9 | ||||
Net (decrease)/increase in drawings on bank loans and corporate bonds | (397.1) | 632.8 | ||||
Amortisation of financing costs included in debt | 8.1 | 7.5 | ||||
Changes in fair value due to hedging arrangements | (2.5) | (1.4) | ||||
Other movements | (0.4) | (7.1) | ||||
Exchange adjustments | (199.1) | 128 | ||||
End of year | £ 4,441.7 | £ 5,032.7 | £ 4,272.9 | |||
[1] | Figures have been restated as described in the accounting policies. |
Sources of finance - Additional
Sources of finance - Additional Information (Details) € in Millions, £ in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||||||||||
Dec. 31, 2021GBP (£) | Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021AUD ($) | May 31, 2021AUD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020AUD ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2018GBP (£) | |||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total equity | £ | £ 4,069 | £ 5,050.1 | [1] | £ 8,297.3 | [1] | £ 9,576.9 | |||||||
Bond amount | £ | 6,300 | ||||||||||||
Undrawn committed credit facility | 1,847.5 | $ 1,847.5 | $ 2,023.2 | ||||||||||
Borrowings | £ | 4,441.7 | 5,032.7 | |||||||||||
Issued capital and share premium | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Total equity | £ | £ 697.1 | £ 699.9 | £ 703.1 | ||||||||||
US bond $750m (3.75% 2024) | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | $ 750 | ||||||||||||
Bonds interest rate | 3.75% | 3.75% | 3.75% | 3.75% | |||||||||
US bond $93m (5.125% 2042) | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | $ 93 | ||||||||||||
Bonds interest rate | 5.125% | 5.125% | 5.125% | 5.125% | |||||||||
US bond $220m (5.625% 2043) | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | $ 220 | ||||||||||||
Bonds interest rate | 5.625% | 5.625% | 5.625% | 5.625% | |||||||||
Eurobonds €750m (3.0% 2023) | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | € | € 750 | € 750 | |||||||||||
Bonds interest rate | 3.00% | 3.00% | 3.00% | 3.00% | |||||||||
Eurobonds Due March 2025 | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | € | € 500 | 500 | |||||||||||
Bonds interest rate | 1.375% | 1.375% | 1.375% | 1.375% | |||||||||
Eurobonds €750m (2.25% 2026) | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | € | € 750 | 750 | |||||||||||
Bonds interest rate | 2.25% | 2.25% | 2.25% | 2.25% | |||||||||
Euro bonds due May 2027 | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | € | € 750 | ||||||||||||
Bonds interest rate | 2.375% | 2.375% | 2.375% | 2.375% | |||||||||
Eurobonds €600m (1.625% 2030) | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | € | € 600 | € 600 | |||||||||||
Bonds interest rate | 1.625% | 1.625% | 1.625% | 1.625% | |||||||||
Eurobonds Due March 2022 | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | £ 250 | € 250 | |||||||||||
Floating basis | 3m EURIBOR | ||||||||||||
Adjustment to floating basis | 0.45% | 0.45% | 0.45% | 0.45% | |||||||||
Sterling bonds due May 2032 | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | £ | £ 250 | ||||||||||||
Bonds interest rate | 3.75% | 3.75% | 3.75% | 3.75% | |||||||||
£ bonds £400m (2.875% 2046) | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | £ | £ 400 | ||||||||||||
Bonds interest rate | 2.875% | 2.875% | 2.875% | 2.875% | |||||||||
US Revolving Credit Facilities March 2026 | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | $ 2,500 | 2,500 | |||||||||||
Borrowings, Term | 5 years | ||||||||||||
US revolving credit facilities | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | 2,500 | ||||||||||||
Borrowings averaged equivalent | 0 | 0 | |||||||||||
US revolving credit facilities | Weighted average | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Borrowings | 0 | $ 0 | |||||||||||
Australian revolving credit facilities due 2021 (before reduction in December 2019) | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | $ 150 | ||||||||||||
Amended Australian Revolving Credit Facilities Due 2023 | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bond amount | $ 270 | ||||||||||||
Australian New Zealand revolving credit facilities | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Borrowings averaged equivalent | $ 52 | $ 151 | |||||||||||
US commercial paper | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Borrowings | € | € 0 | ||||||||||||
US commercial paper | Weighted average | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Bonds interest rate | 1.66% | 1.66% | 1.66% | 1.66% | |||||||||
Borrowings | $ 0 | $ 2 | |||||||||||
Euro commercial paper | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Borrowings | € | 0 | ||||||||||||
Euro commercial paper | Weighted average | |||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||
Borrowings | € | € 0 | € 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 (Details) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | £ (5,798.1) | £ (14,829.9) |
Effect of discounting/financing rates | 1,014.1 | 1,235.2 |
Debt financing | (4,784) | (13,594.7) |
Borrowings | Within one year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | (326.8) | (182.2) |
Borrowings | Between one and two years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | (745.4) | (725.6) |
Borrowings | Between two and three years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | (646.5) | (795.7) |
Borrowings | Between three and four years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | (492.8) | (649.1) |
Borrowings | Between four and five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | (698) | (528.2) |
Borrowings | Over five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | (2,546.3) | (3,387.1) |
Borrowings | Debt financing (including interest) under the Revolving Credit Facility and in relation to unsecured loan notes | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | (5,455.8) | (6,267.9) |
Bank overdrafts | Within one year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Future anticipated cash flows | £ (342.3) | £ (8,562) |
Sources of finance - Analysis_2
Sources of finance - Analysis of Fixed and Floating Rate Debt by Currency (Details) £ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2021GBP (£) | |
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings | £ 5,032.7 | £ 4,441.7 | |
US Dollar bonds | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings | $ | $ 1,063 | ||
US Dollar bonds | Fixed interest rate | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings | £ 1,585.1 | £ 1,231.8 | |
Average interest rate | 4.18% | 4.06% | 4.18% |
Period (months) | 72 months | 70 months | |
Sterling bonds | Fixed interest rate | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings | £ 1,094.1 | £ 1,094.1 | |
Average interest rate | 2.97% | 3.21% | 2.97% |
Period (months) | 155 months | 167 months | |
Eurobonds | Fixed interest rate | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings | £ 2,104.6 | £ 1,976 | |
Average interest rate | 2.04% | 2.20% | 2.04% |
Period (months) | 69 months | 79 months | |
Eurobonds | Floating interest rate | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings | £ 223.9 | £ 210.2 | |
Floating basis | EURIBOR | EURIBOR | |
Period (months) | 3 months | 15 months | |
Other | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings | £ 25 | £ (70.4) |
Sources of finance - Analysis_3
Sources of finance - Analysis of Future Anticipated Cash Flows Related of Financial Derivatives (Details) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financial liabilities, Payable | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | £ 1,198.6 | £ 716.6 |
Future anticipated cash flows, Financial assets | 611.1 | 569.3 |
Financial liabilities, Payable | Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 185.8 | 201.7 |
Future anticipated cash flows, Financial assets | 581.1 | 102.3 |
Financial liabilities, Payable | Between one and two years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 551.4 | 11.6 |
Future anticipated cash flows, Financial assets | 30 | 17.8 |
Financial liabilities, Payable | Between two and three years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 11.6 | 41.9 |
Future anticipated cash flows, Financial assets | 0 | 449.2 |
Financial liabilities, Payable | Between three and four years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 449.8 | 11.6 |
Future anticipated cash flows, Financial assets | 0 | 0 |
Financial liabilities, Payable | Between four and five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 0 | 449.8 |
Future anticipated cash flows, Financial assets | 0 | 0 |
Financial liabilities, Payable | Over five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 0 | 0 |
Future anticipated cash flows, Financial assets | 0 | 0 |
Financial assets, Receivable | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 1,146.4 | 709.9 |
Future anticipated cash flows, Financial assets | 612.9 | 573 |
Financial assets, Receivable | Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 173.7 | 195.4 |
Future anticipated cash flows, Financial assets | 582.5 | 98.2 |
Financial assets, Receivable | Between one and two years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 521.1 | 6.2 |
Future anticipated cash flows, Financial assets | 30.4 | 13.6 |
Financial assets, Receivable | Between two and three years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 6 | 35.7 |
Future anticipated cash flows, Financial assets | 0 | 461.2 |
Financial assets, Receivable | Between three and four years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 445.6 | 6.3 |
Future anticipated cash flows, Financial assets | 0 | 0 |
Financial assets, Receivable | Between four and five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 0 | 466.3 |
Future anticipated cash flows, Financial assets | 0 | 0 |
Financial assets, Receivable | Over five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Future anticipated cash flows, Financial liabilities | 0 | 0 |
Future anticipated cash flows, Financial assets | £ 0 | £ 0 |
Analysis of cash flows - Summar
Analysis of cash flows - Summary of Analysis of Cash Flows (Details) € in Millions, £ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021GBP (£) | Dec. 31, 2020GBP (£) | Dec. 31, 2019GBP (£) | Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | |||
Disclosure Of Cash Flow Statement [line items] | |||||||
Profit/(loss) for the year | £ 720.7 | £ (2,901.3) | [1] | £ 937.9 | [1] | ||
Taxation | 230.1 | 129.3 | 366 | ||||
Revaluation and retranslation of financial instruments | 87.8 | 147.2 | (154.4) | ||||
Finance costs | 283.6 | 312.3 | 376.4 | ||||
Finance and investment income | (69.4) | (82.8) | (102.6) | ||||
Share of results of associates | (23.8) | 136 | (21.2) | ||||
Goodwill impairment on classification as held for sale | 0 | 0 | 94.5 | ||||
Gain on sale of discontinued operations | 0 | (10) | (73.8) | ||||
Attributable tax expense on sale of discontinued operations | 0 | 1.9 | 157.4 | ||||
Non-cash share-based incentive plans (including share options) | 99.6 | 74.4 | 71.4 | ||||
Depreciation of property, plant and equipment | 151.2 | 174.8 | 203.2 | ||||
Depreciation of right-of-use assets | 272.9 | 331.9 | 317.9 | ||||
Impairment charges included within restructuring costs | 39.2 | 196.7 | 0 | ||||
Goodwill impairment | 1.8 | 2,822.9 | 47.7 | ||||
Amortisation and impairment of acquired intangible assets | 97.8 | 89.1 | 135.6 | ||||
Amortisation of other intangible assets | 19.9 | 35.2 | 29.6 | ||||
Investment and other impairment (reversals)/charges | (42.4) | 296.2 | 7.5 | ||||
Losses/(gains) on disposal of investments and subsidiaries | 10.6 | (7.8) | (45.1) | ||||
Gains on remeasurement of equity interests arising from a change in scope of ownership | 0 | (0.6) | (0.4) | ||||
Gain on sale of freehold property in New York | 0 | 0 | (7.9) | ||||
(Gains)/losses on sale of property, plant and equipment | (1.3) | 0.3 | 3.2 | ||||
(Increase)/decrease in trade receivables and accrued income | (458.9) | 585.2 | 159 | ||||
Increase in trade payables and deferred income | 777.8 | 195 | 394.7 | ||||
(Increase)/decrease in other receivables | (120) | 123.3 | (263.8) | ||||
Increase/(decrease) in other payables – short-term | 547 | (36.6) | (16.4) | ||||
(Decrease)/increase in other payables – long-term | (11) | (44.3) | 53.7 | ||||
(Decrease)/increase in provisions | (32.9) | 15.6 | 23.1 | ||||
Corporation and overseas tax paid | (391.1) | (371.5) | (536) | ||||
Payment on early settlement of bonds | (13) | 0 | (63.4) | ||||
Interest and similar charges paid | (173.7) | (173.9) | (270.6) | ||||
Interest expense related to lease liabilities | (88.4) | (98.5) | (105.1) | ||||
Interest received | 47.5 | 73.6 | 80.8 | ||||
Investment income | 17.8 | 8.7 | 18.3 | ||||
Dividends from associates | 53.4 | 32.5 | 33.3 | ||||
Net cash inflow from operating activities | 2,032.8 | 2,054.8 | 1,850.5 | ||||
Acquisitions and disposals: | |||||||
Net cash inflow from operating activities | (227.6) | (32.8) | (3.9) | ||||
Cash and cash equivalents acquired | (2.3) | 0 | 0 | ||||
Earnout payments | (57) | (115.2) | (130.2) | ||||
Purchase of other investments (including associates) | (99.2) | (30.4) | (27.2) | ||||
Acquisitions | (386.1) | (178.4) | (161.3) | ||||
Proceeds on disposal of investments and subsidiaries | 51.9 | 320 | 2,468.5 | ||||
Cash and cash equivalents disposed | (23.6) | (47.7) | (327.5) | ||||
Disposals of investments and subsidiaries | 28.3 | 272.3 | 2,141 | ||||
Cash consideration for purchase of non-controlling interests | (95.5) | (80.6) | (62.7) | ||||
Net acquisition payments and disposal proceeds | (453.3) | 13.3 | 1,917 | ||||
Share repurchases and buybacks: | |||||||
Purchase of own shares by ESOP Trusts | (89.2) | (5.1) | 0 | ||||
Shares purchased into treasury | (729.3) | (285.1) | (43.8) | ||||
Net cash outflow | (818.5) | (290.2) | (43.8) | ||||
Proceeds from issue of bonds: | |||||||
Proceeds from issue of bonds | 0 | 915.5 | 0 | ||||
Decrease in drawings on bank loans | (36.3) | (59.6) | (70.6) | ||||
Bond amount | 6,300 | ||||||
Cash and cash equivalents: | |||||||
Cash at bank and in hand | 2,776.6 | 10,075 | 10,442.1 | ||||
Short-term bank deposits | 1,106.3 | 2,824.1 | 863.6 | ||||
Overdrafts | (342.3) | (8,562) | (8,572.4) | ||||
Cash and cash equivalents excluding disposal group | 3,540.6 | 4,337.1 | 2,733.3 | ||||
Cash consideration received from non-controlling interests | 39.5 | 0 | 0 | ||||
Payments from changes in ownership interests in subsidiaries that do not result in loss of control | (135) | (80.6) | (62.7) | ||||
Current borrowings | (397.1) | (282.7) | (1,713.2) | ||||
Proceeds from issue of €750 million bonds | |||||||
Proceeds from issue of bonds: | |||||||
Proceeds from issue of bonds | 0 | 665.5 | 0 | ||||
Bond amount | € | € 750 | ||||||
Proceeds from issue of £250 million bonds | |||||||
Proceeds from issue of bonds: | |||||||
Proceeds from issue of bonds | 0 | 250 | 0 | ||||
Bond amount | 250 | ||||||
Repayment of $500 million bonds | |||||||
Proceeds from issue of bonds: | |||||||
Repayment of bonds | (360.8) | 0 | 0 | ||||
Bond amount | $ | $ 500 | ||||||
Repayment of €250 million bonds | |||||||
Proceeds from issue of bonds: | |||||||
Repayment of bonds | 0 | (223.1) | 0 | ||||
Bond amount | € | 250 | ||||||
Repayment of €600 million bonds | |||||||
Proceeds from issue of bonds: | |||||||
Repayment of bonds | 0 | 0 | (512.7) | ||||
Bond amount | € | € 600 | ||||||
Repayment of $812 million bonds | |||||||
Proceeds from issue of bonds: | |||||||
Repayment of bonds | 0 | 0 | (618.8) | ||||
Bond amount | $ | 812 | ||||||
Partial repayment of $272 million bonds | |||||||
Proceeds from issue of bonds: | |||||||
Repayment of bonds | 0 | 0 | (135.4) | ||||
Bond amount | $ | 272 | ||||||
Partial repayment of $450 million bonds | |||||||
Proceeds from issue of bonds: | |||||||
Repayment of bonds | 0 | 0 | (176.2) | ||||
Bond amount | $ | $ 450 | ||||||
Repayment of £200 million bonds | |||||||
Proceeds from issue of bonds: | |||||||
Repayment of bonds | 0 | £ 0 | £ (199.5) | ||||
Bond amount | £ 200 | ||||||
[1] | Figures have been restated as described in the accounting policies. |
Assets held for sale and disc_3
Assets held for sale and discontinued operations - Additional information (Details) - GBP (£) £ in Millions | Dec. 05, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of analysis of single amount of discontinued operations [line items] | ||||
Goodwill impairment on classification as held for sale | £ 94.5 | |||
Net cash inflow from operating activities | £ 2,032.8 | £ 2,054.8 | 1,850.5 | |
Outflow from investing activities | 642.2 | 167.6 | (1,759.6) | |
Outflow from financing activities | £ 2,057 | 250.5 | 2,922 | |
Kantar Business | ||||
Disclosure of analysis of single amount of discontinued operations [line items] | ||||
Proportion of the Kantar group included in the first stage of the transaction completed | 90.00% | |||
Disposal of discontinued operations consideration | £ 2,140.2 | |||
Percentage of interest in associates | 40.00% | |||
Gain on disposal of discontinued operations Before Tax | £ 73.8 | 10 | ||
Attributable tax expense | 157.4 | 1.9 | ||
Goodwill impairment on classification as held for sale | £ 94.5 | |||
Disposal of discontinued operations consideration expected to be received for remaining stages | 236.1 | |||
Net cash inflow from operating activities | 30.8 | 322.9 | ||
Outflow from investing activities | 0.9 | 53.2 | ||
Outflow from financing activities | £ 0.7 | £ 27.2 |
Assets held for sale and disc_4
Assets held for sale and discontinued operations - Detailed Information About Amounts Of Discontinued Operations Included In Profit (Details) - GBP (£) £ in Millions | Dec. 05, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of Detailed information Amounts About In Discontinued Operations Included In Profit [Line Items] | ||||||
Revenue | £ 12,801.1 | £ 12,002.8 | [1] | £ 13,234.1 | [1] | |
Costs of services | (10,597.5) | (9,987.9) | [1] | (10,825.1) | [1] | |
Gross profit | 2,203.6 | 2,014.9 | [1] | 2,409 | [1] | |
General and administrative costs | (974.6) | (4,293) | [1] | (1,113.1) | [1] | |
Operating profit/(loss) | 1,229 | (2,278.1) | [1] | 1,295.9 | [1] | |
Share of results of associates | 23.8 | (136) | [1] | 14.7 | [1] | |
Profit/(loss) before interest and taxation | 1,252.8 | (2,414.1) | [1] | 1,310.6 | [1] | |
Revaluation and retranslation of financial instruments | 87.8 | 147.2 | [1] | (163.8) | [1] | |
Profit/(loss) before taxation | 950.8 | (2,790.6) | [1] | 1,214.3 | [1] | |
Attributable tax expense | (230.1) | (127.1) | [1] | (287.2) | [1] | |
Profit/(loss) for the year | 720.7 | (2,901.3) | [2] | 937.9 | [2] | |
Goodwill impairment on classification as held for sale | (94.5) | |||||
Attributable to | ||||||
Equity holders of the parent | 637.7 | (2,965.1) | [1] | 844.1 | [1] | |
Non-controlling interests | 83 | 63.8 | [1] | 93.8 | [1] | |
Profit for the year from discontinued operations | £ 0 | 16.4 | [1] | 10.8 | [1] | |
Discontinued operations | ||||||
Disclosure of Detailed information Amounts About In Discontinued Operations Included In Profit [Line Items] | ||||||
Revenue | 107.4 | 2,387.5 | ||||
Costs of services | (92.3) | (1,951.5) | ||||
Gross profit | 15.1 | 436 | ||||
General and administrative costs | (4.4) | (151.7) | ||||
Operating profit/(loss) | 10.7 | 284.3 | ||||
Share of results of associates | 0 | 6.5 | ||||
Profit/(loss) before interest and taxation | 10.7 | 290.8 | ||||
Finance and investment income | 0.1 | 3.6 | ||||
Finance costs | (0.3) | (17.3) | ||||
Revaluation and retranslation of financial instruments | 0 | (9.4) | ||||
Profit/(loss) before taxation | 10.5 | 267.7 | ||||
Attributable tax expense | (2.2) | (78.8) | ||||
Profit/(loss) for the year | 8.3 | 188.9 | ||||
Goodwill impairment on classification as held for sale | 0 | (94.5) | ||||
Gain on sale of discontinued operations | 10 | 73.8 | ||||
Attributable tax expense on sale of discontinued operations | (1.9) | (157.4) | ||||
Net gain attributable to discontinued operations | 16.4 | 10.8 | ||||
Attributable to | ||||||
Equity holders of the parent | 6.5 | (3.8) | ||||
Non-controlling interests | 9.9 | 14.6 | ||||
Profit for the year from discontinued operations | 16.4 | £ 10.8 | ||||
Kantar Business | ||||||
Disclosure of Detailed information Amounts About In Discontinued Operations Included In Profit [Line Items] | ||||||
Goodwill impairment on classification as held for sale | £ (94.5) | |||||
Gain on sale of discontinued operations | 73.8 | 10 | ||||
Attributable tax expense on sale of discontinued operations | £ (157.4) | (1.9) | ||||
Kantar Business | WPP Scan Group | Discontinued operations | ||||||
Attributable to | ||||||
Non-controlling interests | £ 9.3 | |||||
Proportion of ownership interest in subsidiary | 56.00% | |||||
[1] | Figures have been restated as described in the accounting policies. | |||||
[2] | Figures have been restated as described in the accounting policies. |
Assets held for sale and disc_5
Assets held for sale and discontinued operations - Detailed Information About Gain On Sale Of Discontinued Operations (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||||
Property, plant and equipment | £ 896.4 | £ 790.9 | [1] | £ 876 | [1] |
Right-of-use assets | 1,395.1 | 1,504.5 | [1] | 1,734.5 | [1] |
Interests in associates and joint ventures | 412.9 | 330.7 | [1] | 813 | [1] |
Other investments | 318.3 | 387.3 | [1] | 498.3 | [1] |
Deferred tax assets | 341.5 | 212.9 | [1] | 187.9 | [1] |
Corporate income tax recoverable | 90.4 | 110.3 | [1] | 142.6 | [1] |
Cash and cash equivalents | 3,882.9 | 12,899.1 | [1] | 11,305.7 | [1] |
Corporate income tax payable | (386.2) | (424.4) | [1] | (595.6) | [1] |
Lease liabilities | (2,041.8) | (2,156.3) | (2,249.7) | ||
Deferred tax liabilities | (312.5) | (304.1) | [1] | (379.8) | [1] |
Provisions for liabilities and charges | (268.5) | (306.3) | [1] | (247.8) | [1] |
Net assets | 4,069 | 5,050.1 | [1] | 8,297.3 | [1] |
Non-controlling interests | (452.6) | (318.1) | [1] | (371.4) | [1] |
Exchange adjustments recycled to the income statement | £ 0 | 20.6 | [2] | 284 | [2] |
Discontinued operations | |||||
Disclosure of analysis of single amount of discontinued operations [line items] | |||||
Intangible assets (including goodwill) | 162.5 | 2,410 | |||
Property, plant and equipment | 15.1 | 115.7 | |||
Right-of-use assets | 27.2 | 103.5 | |||
Interests in associates and joint ventures | 4.6 | 92.3 | |||
Other investments | 0 | 11.5 | |||
Deferred tax assets | 6.1 | 44.1 | |||
Corporate income tax recoverable | 16.9 | 49.8 | |||
Trade and other receivables | 170.3 | 748.8 | |||
Cash and cash equivalents | 32.2 | 324.9 | |||
Trade and other payables | (141.6) | (839.8) | |||
Corporate income tax payable | (5.6) | (48.2) | |||
Lease liabilities | (23.2) | (106.3) | |||
Deferred tax liabilities | (1.3) | (98.6) | |||
Provisions for post-employment benefits | (7.9) | (26.7) | |||
Provisions for liabilities and charges | (0.6) | (22.4) | |||
Net assets | 254.7 | 2,758.6 | |||
Non-controlling interests | (6.1) | (19.1) | |||
Net assets excluding non-controlling interests | 248.6 | 2,739.5 | |||
Consideration received in cash and cash equivalents | 240.9 | 2,352.1 | |||
Re-investment in equity stake | 0 | 231.7 | |||
Transaction costs | (4.5) | (56.1) | |||
Deferred consideration | 1.6 | 1.6 | |||
Total consideration received | 238 | 2,529.3 | |||
Loss on sale before exchange adjustments | (10.6) | (210.2) | |||
Exchange adjustments recycled to the income statement | 20.6 | 284 | |||
Gain on sale of discontinued operations | £ 10 | £ 73.8 | |||
Associate, percentage owned | 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 | ||||
[1] | Figures have been restated as described in the accounting policies. | ||||
[2] | Figures have been restated as described in the accounting policies. |
Leases - Summary of Movement in
Leases - Summary of Movement in Right of use Assets and Lease Liabilities (Details) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Disclosure Of Leases [Line Items] | ||||||
Beginning balance, right-of-use assets | [1] | £ 1,504.5 | £ 1,734.5 | |||
Additions | 281.8 | 268 | ||||
Transfers to net investment in subleases | (26.9) | |||||
Disposals | (54.9) | (42.4) | ||||
Depreciation of right-of-use assets | (272.9) | (331.9) | £ (317.9) | |||
Impairment charges included within restructuring costs | (19.3) | (117) | ||||
Other write-downs | (6.8) | (8.1) | ||||
Exchange adjustments | (24) | 1.4 | ||||
Ending balance, right-of-use assets | 1,395.1 | 1,504.5 | [1] | 1,734.5 | [1] | |
Beginning balance, lease liabilities | 2,156.3 | 2,249.7 | ||||
Additions | 293.1 | 264 | ||||
Interest expense related to lease liabilities | 90.9 | 98.5 | ||||
Disposals | (66.1) | (51.1) | ||||
Repayment of lease liabilities (including interest) | (409.1) | (398.6) | ||||
Exchange adjustments | (23.3) | (6.2) | ||||
Ending balance, lease liabilities | 2,041.8 | 2,156.3 | 2,249.7 | |||
Right of use assets that meet the definition of an investment property | 38.5 | 67.9 | ||||
Land and buildings | ||||||
Disclosure Of Leases [Line Items] | ||||||
Beginning balance, right-of-use assets | 1,461.8 | 1,706.1 | ||||
Additions | 264.6 | 233 | ||||
Transfers to net investment in subleases | (26.9) | |||||
Disposals | (53.6) | (40.5) | ||||
Depreciation of right-of-use assets | (254.7) | (312.1) | ||||
Impairment charges included within restructuring costs | (18.9) | (117) | ||||
Other write-downs | (6.8) | (8.1) | ||||
Exchange adjustments | (22.1) | 0.4 | ||||
Ending balance, right-of-use assets | 1,357 | 1,461.8 | 1,706.1 | |||
Beginning balance, lease liabilities | 2,111.8 | 2,223.4 | ||||
Additions | 277 | 226.9 | ||||
Interest expense related to lease liabilities | 89.7 | 96.8 | ||||
Disposals | (64.2) | (49.4) | ||||
Repayment of lease liabilities (including interest) | (390.6) | (379.1) | ||||
Exchange adjustments | (21.2) | (6.8) | ||||
Ending balance, lease liabilities | 2,002.5 | 2,111.8 | 2,223.4 | |||
Plant and machinery | ||||||
Disclosure Of Leases [Line Items] | ||||||
Beginning balance, right-of-use assets | 42.7 | 28.4 | ||||
Additions | 17.2 | 35 | ||||
Transfers to net investment in subleases | 0 | |||||
Disposals | (1.3) | (1.9) | ||||
Depreciation of right-of-use assets | (18.2) | (19.8) | ||||
Impairment charges included within restructuring costs | (0.4) | 0 | ||||
Exchange adjustments | (1.9) | 1 | ||||
Ending balance, right-of-use assets | 38.1 | 42.7 | 28.4 | |||
Beginning balance, lease liabilities | 44.5 | 26.3 | ||||
Additions | 16.1 | 37.1 | ||||
Interest expense related to lease liabilities | 1.2 | 1.7 | ||||
Disposals | (1.9) | (1.7) | ||||
Repayment of lease liabilities (including interest) | (18.5) | (19.5) | ||||
Exchange adjustments | (2.1) | 0.6 | ||||
Ending balance, lease liabilities | £ 39.3 | £ 44.5 | £ 26.3 | |||
[1] | Figures have been restated as described in the accounting policies. |
Leases - Summary of breakdown o
Leases - Summary of breakdown of Lease Expense (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Leases [Line Items] | |||
Impairment charges | £ (19.3) | £ (117) | |
Short-term lease expense | (18) | (36.7) | £ (83.8) |
Low-value lease expense | (2.3) | (2.3) | £ (2.9) |
Continuing operations lease | |||
Disclosure Of Leases [Line Items] | |||
Impairment charges | (12.5) | (125.1) | |
Short-term lease expense | (18) | (36.7) | |
Low-value lease expense | (2.3) | (2.3) | |
Variable lease expense | (56.2) | (65.4) | |
Sublease income | 17.3 | 25.3 | |
Charge to operating profit | (344.6) | (536.1) | |
Interest expense related to lease liabilities | (90.9) | (101) | |
Charge to profit before taxation for leases | (435.5) | (637.1) | |
Land and buildings | |||
Disclosure Of Leases [Line Items] | |||
Impairment charges | (18.9) | (117) | |
Land and buildings | Continuing operations lease | |||
Disclosure Of Leases [Line Items] | |||
Depreciation of right-of-use assets: | (254.7) | (312.1) | |
Plant and machinery | |||
Disclosure Of Leases [Line Items] | |||
Impairment charges | (0.4) | 0 | |
Plant and machinery | Continuing operations lease | |||
Disclosure Of Leases [Line Items] | |||
Depreciation of right-of-use assets: | £ (18.2) | £ (19.8) |
Leases - Summary of Maturity of
Leases - Summary of Maturity of Lease Liabilities (Details) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure Of Leases [Line Items] | |||||
Gross lease liabilities | £ 2,620.6 | £ 2,783.1 | |||
Effect of discounting | (578.8) | (626.8) | |||
Lease liability at end of year | 2,041.8 | 2,156.3 | £ 2,249.7 | ||
Short-term lease liability | 279.7 | 323.8 | [1] | 302.2 | [1] |
Long-term lease liability | 1,762.1 | 1,832.5 | [1] | £ 1,947.5 | [1] |
Within one year | |||||
Disclosure Of Leases [Line Items] | |||||
Gross lease liabilities | 369.7 | 412.3 | |||
Between one and two years | |||||
Disclosure Of Leases [Line Items] | |||||
Gross lease liabilities | 321.9 | 357.7 | |||
Between two and three years | |||||
Disclosure Of Leases [Line Items] | |||||
Gross lease liabilities | 273.7 | 309 | |||
Between three and four years | |||||
Disclosure Of Leases [Line Items] | |||||
Gross lease liabilities | 229.1 | 255.3 | |||
Between four and five years | |||||
Disclosure Of Leases [Line Items] | |||||
Gross lease liabilities | 199.1 | 209.9 | |||
Over five years | |||||
Disclosure Of Leases [Line Items] | |||||
Gross lease liabilities | £ 1,227.1 | £ 1,238.9 | |||
[1] | Figures have been restated as described in the accounting policies. |
Leases - Additional Information
Leases - Additional Information (Details) £ in Millions | Dec. 31, 2021GBP (£) |
Leases Disclosure [Abstract] | |
Future cash flows for leases not yet commenced to which lessee is committed | £ 534.9 |
Intangible Assets - Movement of
Intangible Assets - Movement of Goodwill (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Disclosure of reconciliation of changes in goodwill [line items] | ||||||
Beginning balance | [1] | £ 7,388.8 | £ 10,110.6 | |||
Goodwill impairment | 1.8 | 2,822.9 | £ 47.7 | |||
Ending balance | 7,612.3 | 7,388.8 | [1] | 10,110.6 | [1] | |
Cost | ||||||
Disclosure of reconciliation of changes in goodwill [line items] | ||||||
Beginning balance | 10,807.3 | 10,888.6 | ||||
Additions | 335.8 | 37.3 | ||||
Disposals | (5.4) | (24.6) | ||||
Exchange adjustments | (146.7) | (94) | ||||
Ending balance | 10,991 | 10,807.3 | 10,888.6 | |||
Accumulated impairment losses and write-downs | ||||||
Disclosure of reconciliation of changes in goodwill [line items] | ||||||
Beginning balance | (3,418.5) | (778) | ||||
Goodwill impairment | 1.8 | 2,822.9 | ||||
Exchange adjustments | (41.6) | (182.4) | ||||
Ending balance | £ (3,378.7) | £ (3,418.5) | £ (778) | |||
[1] | Figures have been restated as described in the accounting policies. |
Intangible Assets - Movements o
Intangible Assets - Movements of Other Intangible Assets (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | |||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | [1] | £ 1,389.3 | £ 1,468.8 | |
Charge for the year | 47.9 | 21.6 | ||
Ending balance | 1,359.5 | 1,389.3 | [1] | |
Cost | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 2,941.9 | 3,006.6 | ||
Additions | 29.9 | 54.3 | ||
Disposals | (51.9) | (96.3) | ||
New acquisitions | 97.7 | 5 | ||
Other movements | 3.9 | 18.8 | ||
Exchange adjustments | (21.7) | (46.5) | ||
Ending balance | 2,999.8 | 2,941.9 | ||
Amortisation and impairment | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | (1,552.6) | (1,537.8) | ||
Charge for the year | 117.2 | 123.7 | ||
Impairment charges included within restructuring costs | 10.1 | |||
Disposals | 28 | 89.4 | ||
Other movements | (1.5) | 11.1 | ||
Exchange adjustments | (10.1) | (30.6) | ||
Ending balance | (1,640.3) | (1,552.6) | ||
Brands with an indefinite useful life | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 1,059.1 | 1,078.2 | ||
Ending balance | 1,010.5 | 1,059.1 | ||
Brands with an indefinite useful life | Cost | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 1,071.9 | 1,091.4 | ||
Additions | 0 | 0 | ||
Disposals | 0 | 0 | ||
New acquisitions | 0 | 0 | ||
Other movements | 0 | 0 | ||
Exchange adjustments | (4.6) | (19.5) | ||
Ending balance | 1,067.3 | 1,071.9 | ||
Brands with an indefinite useful life | Amortisation and impairment | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | (12.8) | (13.2) | ||
Charge for the year | 43.8 | 0 | ||
Impairment charges included within restructuring costs | 0 | |||
Disposals | 0 | 0 | ||
Other movements | 0 | 0 | ||
Exchange adjustments | 0.2 | (0.4) | ||
Ending balance | (56.8) | (12.8) | ||
Acquired intangibles | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 240.5 | 323.6 | ||
Ending balance | 273.4 | 240.5 | ||
Acquired intangibles | Cost | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 1,569.7 | 1,602.9 | ||
Additions | 0 | 0 | ||
Disposals | (7.3) | (21.5) | ||
New acquisitions | 97.7 | 4.8 | ||
Other movements | 0 | 5.7 | ||
Exchange adjustments | (15.7) | (22.2) | ||
Ending balance | 1,644.4 | 1,569.7 | ||
Acquired intangibles | Amortisation and impairment | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | (1,329.2) | (1,279.3) | ||
Charge for the year | 53.5 | 88.5 | ||
Impairment charges included within restructuring costs | 0 | |||
Disposals | 3.5 | 17.4 | ||
Other movements | 0 | 5.7 | ||
Exchange adjustments | (8.2) | (26.9) | ||
Ending balance | (1,371) | (1,329.2) | ||
Other | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 89.7 | 67 | ||
Ending balance | 75.6 | 89.7 | ||
Other | Cost | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 300.3 | 312.3 | ||
Additions | 29.9 | 54.3 | ||
Disposals | (44.6) | (74.8) | ||
New acquisitions | 0 | 0.2 | ||
Other movements | 3.9 | 13.1 | ||
Exchange adjustments | (1.4) | (4.8) | ||
Ending balance | 288.1 | 300.3 | ||
Other | Amortisation and impairment | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | (210.6) | (245.3) | ||
Charge for the year | 19.9 | 35.2 | ||
Impairment charges included within restructuring costs | 10.1 | |||
Disposals | 24.5 | 72 | ||
Other movements | (1.5) | 5.4 | ||
Exchange adjustments | (2.1) | (3.3) | ||
Ending balance | £ (212.5) | £ (210.6) | ||
[1] | Figures have been restated as described in the accounting policies. |
Intangible Assets - Cash-genera
Intangible Assets - Cash-generating Units with Significant Goodwill (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | |
Disclosure of information for cash-generating units [line items] | |||||
Goodwill | £ 7,612.3 | £ 7,388.8 | [1] | £ 10,110.6 | |
Brands with an indefinite useful life | 1,010.5 | 1,059.1 | |||
GroupM | |||||
Disclosure of information for cash-generating units [line items] | |||||
Goodwill | 2,982.5 | 2,953.7 | |||
Brands with an indefinite useful life | 0 | 0 | |||
Wunderman Thompson | |||||
Disclosure of information for cash-generating units [line items] | |||||
Goodwill | 997.3 | 949.4 | |||
Brands with an indefinite useful life | 405.1 | 403.9 | |||
VMLY&R | |||||
Disclosure of information for cash-generating units [line items] | |||||
Goodwill | 675.6 | 411.9 | |||
Brands with an indefinite useful life | 189.8 | 193.4 | |||
Ogilvy | |||||
Disclosure of information for cash-generating units [line items] | |||||
Goodwill | 784.4 | 782 | |||
Brands with an indefinite useful life | 205 | 206.5 | |||
Burson Cohn & Wolfe | |||||
Disclosure of information for cash-generating units [line items] | |||||
Goodwill | 585.7 | 591.1 | |||
Brands with an indefinite useful life | 128.4 | 128.8 | |||
AKQA Group | |||||
Disclosure of information for cash-generating units [line items] | |||||
Goodwill | 570.2 | 585.2 | |||
Brands with an indefinite useful life | 0 | 0 | |||
Finsbury Glover Hering + Sard Verbinnen & Co | |||||
Disclosure of information for cash-generating units [line items] | |||||
Goodwill | 393.2 | 220.7 | |||
Brands with an indefinite useful life | 0 | 0 | |||
Other | |||||
Disclosure of information for cash-generating units [line items] | |||||
Goodwill | 623.4 | 894.8 | |||
Brands with an indefinite useful life | £ 82.2 | £ 126.5 | |||
[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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Jun. 30, 2020 | |||
Disclosure of detailed information about intangible assets [line items] | |||||||
Other intangible assets | £ 1,359.5 | £ 1,389.3 | [1] | £ 1,468.8 | [1] | ||
Amortisation and impairment of acquired intangible assets | 97.8 | 89.1 | |||||
Impairment charge on intangible assets | 47.9 | 21.6 | |||||
Goodwill impairment | £ 1.8 | £ 2,822.9 | £ 47.7 | ||||
Assumed annual long-term growth rate | 2.00% | 2.00% | |||||
First Step | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Assumed annual long-term growth rate | 0.00% | 0.00% | |||||
Discount rate applied to cash flow projections | 13.50% | 13.50% | |||||
Range of Pre-tax Discount Rates for Global Cash Generating Units | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Discount rate applied to cash flow projections | 12.50% | 12.50% | |||||
Second Step | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Assumed annual long-term growth rate | 2.00% | 2.00% | |||||
Management forecasts for a projection period | five years | ||||||
Range of Pre-tax Discount Rates for Geographic Regions | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Discount rate applied to cash flow projections | 1.00% | ||||||
Bottom of Range | Range of Pre-tax Discount Rates for Global Cash Generating Units | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Discount rate applied to cash flow projections | 12.50% | ||||||
Bottom of Range | Range of Pre-tax Discount Rates for Geographic Regions | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Discount rate applied to cash flow projections | 11.30% | 11.20% | 11.30% | 10.80% | |||
Top of Range | Range of Pre-tax Discount Rates for Geographic Regions | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Discount rate applied to cash flow projections | 18.40% | 13.60% | 14.40% | 18.60% | |||
Associates | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Amortisation and impairment of acquired intangible assets | £ 0.5 | £ 0.6 | |||||
Brand names | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Other intangible assets | 137.4 | 172.8 | |||||
Impairment charge on intangible assets | 43.8 | ||||||
Customer-related intangibles | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Other intangible assets | 110.4 | 67.1 | |||||
Other acquired intangible assets | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Other intangible assets | 25.6 | 0.6 | |||||
Customer relationships | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Impairment charge on intangible assets | 43.8 | ||||||
Global Integrated Agencies | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Impairment charge on intangible assets | 45.1 | ||||||
Goodwill impairment | 2,355.1 | ||||||
Specialist Agencies | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Impairment charge on intangible assets | £ 2.8 | ||||||
Goodwill impairment | 306.3 | ||||||
Public relations | |||||||
Disclosure of detailed information about intangible assets [line items] | |||||||
Goodwill impairment | £ 161.5 | ||||||
[1] | Figures have been restated as described in the accounting policies. |
Intangible Assets - Disclosure
Intangible Assets - Disclosure of Cash Generating Units With Significant Impairments Of Goodwill (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Cash generating units with significant impairments of goodwill [Line Items] | |||
Recoverable amount of asset or cash-generating unit | £ 5,574.2 | ||
Goodwill impairment | £ 1.8 | 2,822.9 | £ 47.7 |
Wunderman Thompson | Global Integrated Agencies | |||
Disclosure of Cash generating units with significant impairments of goodwill [Line Items] | |||
Recoverable amount of asset or cash-generating unit | 1,956.8 | ||
Goodwill impairment | 1,207.5 | ||
VMLY&R | Global Integrated Agencies | |||
Disclosure of Cash generating units with significant impairments of goodwill [Line Items] | |||
Recoverable amount of asset or cash-generating unit | 1,075.7 | ||
Goodwill impairment | 516.9 | ||
Burson Cohn & Wolfe | Public Relations | |||
Disclosure of Cash generating units with significant impairments of goodwill [Line Items] | |||
Recoverable amount of asset or cash-generating unit | 790.2 | ||
Goodwill impairment | 144.8 | ||
Geometry Global | Specialist Agencies | |||
Disclosure of Cash generating units with significant impairments of goodwill [Line Items] | |||
Recoverable amount of asset or cash-generating unit | 164.4 | ||
Goodwill impairment | 305.8 | ||
Landor & Fitch | Specialist Agencies | |||
Disclosure of Cash generating units with significant impairments of goodwill [Line Items] | |||
Recoverable amount of asset or cash-generating unit | 177.6 | ||
Goodwill impairment | 185.4 | ||
Other | |||
Disclosure of Cash generating units with significant impairments of goodwill [Line Items] | |||
Recoverable amount of asset or cash-generating unit | 1,409.5 | ||
Goodwill impairment | £ 462.5 |
Property, plant and equipment -
Property, plant and equipment - Summary of Property, Plant and Equipment (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | [1] | £ 790.9 | £ 876 | |||
Charge for the year | 151.2 | 174.8 | £ 185.5 | |||
Impairment charges included within restructuring costs | 9.8 | 79.7 | ||||
Ending balance | 896.4 | 790.9 | [1] | 876 | [1] | |
Cost | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 1,697.4 | 1,745.6 | ||||
Additions | 263.2 | 218.3 | ||||
New acquisitions | 4 | 0.4 | ||||
Disposals | (225.4) | (224.1) | ||||
Exchange adjustments | 18.3 | 42.8 | ||||
Ending balance | 1,720.9 | 1,697.4 | 1,745.6 | |||
Depreciation and impairment | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | (906.5) | (869.6) | ||||
Charge for the year | 151.2 | 174.8 | ||||
Impairment charges included within restructuring costs | 9.8 | 79.7 | ||||
Other write-downs | 2.6 | |||||
Disposals | 219.2 | 199.8 | ||||
Exchange adjustments | (23.8) | (20.4) | ||||
Ending balance | (824.5) | (906.5) | (869.6) | |||
Land | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 34.3 | 34.3 | ||||
Ending balance | 43.2 | 34.3 | 34.3 | |||
Land | Cost | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 34.3 | 34.3 | ||||
Additions | 14.3 | 0 | ||||
New acquisitions | 0 | 0 | ||||
Disposals | (0.1) | 0 | ||||
Exchange adjustments | 5.3 | 0 | ||||
Ending balance | 43.2 | 34.3 | 34.3 | |||
Land | Depreciation and impairment | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 0 | 0 | ||||
Charge for the year | 0 | 0 | ||||
Impairment charges included within restructuring costs | 0 | 0 | ||||
Other write-downs | 0 | |||||
Disposals | 0 | 0 | ||||
Exchange adjustments | 0 | 0 | ||||
Ending balance | 0 | 0 | 0 | |||
Freehold buildings | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 37.3 | 22 | ||||
Ending balance | 58.7 | 37.3 | 22 | |||
Freehold buildings | Cost | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 39.6 | 26.2 | ||||
Additions | 8.9 | 8.9 | ||||
New acquisitions | 0 | 0 | ||||
Disposals | (0.6) | (0.2) | ||||
Exchange adjustments | (13.5) | (4.7) | ||||
Ending balance | 61.4 | 39.6 | 26.2 | |||
Freehold buildings | Depreciation and impairment | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | (2.3) | (4.2) | ||||
Charge for the year | 1 | 1.2 | ||||
Impairment charges included within restructuring costs | 0 | 0 | ||||
Other write-downs | 0 | |||||
Disposals | 0 | 0 | ||||
Exchange adjustments | (0.6) | (3.1) | ||||
Ending balance | (2.7) | (2.3) | (4.2) | |||
Leasehold buildings | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 542.1 | 605.5 | ||||
Ending balance | 605.4 | 542.1 | 605.5 | |||
Leasehold buildings | Cost | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 1,052.5 | 1,048.8 | ||||
Additions | 134.5 | 135.7 | ||||
New acquisitions | 1.5 | 0.2 | ||||
Disposals | (108.3) | (99.1) | ||||
Exchange adjustments | 5.2 | 33.1 | ||||
Ending balance | 1,075 | 1,052.5 | 1,048.8 | |||
Leasehold buildings | Depreciation and impairment | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | (510.4) | (443.3) | ||||
Charge for the year | 66.5 | 76.6 | ||||
Impairment charges included within restructuring costs | 7.1 | 72.1 | ||||
Other write-downs | 2.6 | |||||
Disposals | 108.2 | 79 | ||||
Exchange adjustments | (6.2) | (5.2) | ||||
Ending balance | (469.6) | (510.4) | (443.3) | |||
Fixtures, fittings and equipment | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 82.4 | 101.2 | ||||
Ending balance | 77.6 | 82.4 | 101.2 | |||
Fixtures, fittings and equipment | Cost | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 189.3 | 212.4 | ||||
Additions | 31.5 | 25 | ||||
New acquisitions | 1.3 | 0 | ||||
Disposals | (60) | (41.1) | ||||
Exchange adjustments | 12.6 | 7 | ||||
Ending balance | 149.5 | 189.3 | 212.4 | |||
Fixtures, fittings and equipment | Depreciation and impairment | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | (106.9) | (111.2) | ||||
Charge for the year | 27.6 | 33.2 | ||||
Impairment charges included within restructuring costs | 1.8 | 6.3 | ||||
Other write-downs | 0 | |||||
Disposals | 55.9 | 38.3 | ||||
Exchange adjustments | (8.5) | (5.5) | ||||
Ending balance | (71.9) | (106.9) | (111.2) | |||
Computer equipment | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 94.8 | 113 | ||||
Ending balance | 111.5 | 94.8 | 113 | |||
Computer equipment | Cost | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 381.7 | 423.9 | ||||
Additions | 74 | 48.7 | ||||
New acquisitions | 1.2 | 0.2 | ||||
Disposals | (56.4) | (83.7) | ||||
Exchange adjustments | 8.7 | 7.4 | ||||
Ending balance | 391.8 | 381.7 | 423.9 | |||
Computer equipment | Depreciation and impairment | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | (286.9) | (310.9) | ||||
Charge for the year | 56.1 | 63.8 | ||||
Impairment charges included within restructuring costs | 0.9 | 1.3 | ||||
Other write-downs | 0 | |||||
Disposals | 55.1 | 82.5 | ||||
Exchange adjustments | (8.5) | (6.6) | ||||
Ending balance | £ (280.3) | £ (286.9) | £ (310.9) | |||
[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, 2021 | Dec. 31, 2020 |
Property, plant and equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capital commitments contracted | £ 107.3 | £ 132.5 |
Interests in associates, join_3
Interests in associates, joint ventures and other investments - Movements in Associates, Joint Ventures and Other Investments (Details) - GBP (£) £ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Movements in interests in associates and joint ventures | ||||||
Beginning balance | [1] | £ 330.7 | £ 813 | |||
Additions | 93.6 | 15.2 | ||||
Share of results of associate undertakings | 23.8 | (136) | ||||
Share of other comprehensive loss of associate undertakings | 13.5 | (61.5) | ||||
Dividends | (53.4) | (32.5) | ||||
Other movements | (0.2) | (5.2) | ||||
Exchange adjustments | (22.5) | 21.8 | ||||
Disposals | (4.8) | (7.3) | ||||
Reclassification from subsidiaries | 4.2 | 4.5 | ||||
Reclassification from other investments to associates | (0.2) | £ (0.2) | ||||
Amortisation of other intangible assets | (0.5) | (0.6) | ||||
Write-downs | 28.5 | (280.9) | ||||
Ending balance | 412.9 | 330.7 | [1] | 813 | [1] | |
Movements in interests in other investments | ||||||
Beginning balance | [1] | 387.3 | 498.3 | |||
Additions | 5.9 | 15.9 | ||||
Disposals | (31.9) | (7) | ||||
Reclassification from other investments to associates | (0.2) | (0.2) | ||||
Revaluation of other investments through profit or loss | (7.5) | 8 | ||||
Revaluation of other investments through other comprehensive income | (35.5) | (127.7) | ||||
Ending balance | £ 318.3 | £ 387.3 | [1] | £ 498.3 | [1] | |
[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 (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Advantage Smollan Ltd | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, country of incorporation | UK |
Associate, percentage owned | 25.10% |
Barrows Design and Manufacturing (Pty) Limited | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, country of incorporation | South Africa |
Associate, percentage owned | 35.00% |
Dat Viet VAC Media Corporation | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, country of incorporation | Vietnam |
Associate, percentage owned | 30.00% |
GIIR Inc. | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, country of incorporation | Korea |
Associate, percentage owned | 30.00% |
Haworth Marketing & Media Company | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, country of incorporation | USA |
Associate, percentage owned | 49.00% |
High Co SA | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, country of incorporation | France |
Associate, percentage owned | 34.10% |
Imagina Spain | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, country of incorporation | Spain |
Associate, percentage owned | 22.50% |
Nanjing Yindu Ogilvy Advertising Co. Ltd | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, country of incorporation | China |
Associate, percentage owned | 49.00% |
Smollan Holdings (Pty) Ltd | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, country of incorporation | South Africa |
Associate, percentage owned | 24.80% |
Summer (BC) JVCo S.a.r.l.1 | |
Disclosure of principal associates and joint ventures [line items] | |
Associate, country of incorporation | Luxembourg |
Associate, percentage owned | 40.00% |
Interests in associates, join_5
Interests in associates, joint ventures and other investments - Additional Information (Details) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | |
Disclosure of principal associates and joint ventures [line items] | |||||
Interests in associates and joint ventures | £ 412.9 | £ 330.7 | [1] | £ 813 | |
Imagina | |||||
Disclosure of principal associates and joint ventures [line items] | |||||
Cumulative share of unrecognised losses | 23 | 62.9 | |||
GIIR Inc. | |||||
Disclosure of principal associates and joint ventures [line items] | |||||
Market value of equity interests | 21.7 | 19 | |||
Interests in associates and joint ventures | 40 | 41.2 | |||
High Co SA | |||||
Disclosure of principal associates and joint ventures [line items] | |||||
Market value of equity interests | 32.2 | 32.8 | |||
Interests in associates and joint ventures | 37.7 | 38.9 | |||
Associates and Other Investments | |||||
Disclosure of principal associates and joint ventures [line items] | |||||
Capital commitments contracted | £ 5.4 | £ 7.5 | |||
[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 of Associates and Joint Ventures (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Disclosure of principal associates and joint ventures [line items] | |||||
Share of other comprehensive income/(loss) of associate undertakings | £ 13.5 | £ (61.5) | [1] | £ 0 | [1] |
Associates and Joint Ventures | |||||
Disclosure of principal associates and joint ventures [line items] | |||||
Share of results of associate undertakings | 23.8 | (136) | 14.7 | ||
Share of other comprehensive income/(loss) of associate undertakings | 13.5 | (61.5) | 0 | ||
Share of total comprehensive income/(loss) of associate undertakings | £ 37.3 | £ (197.5) | £ 14.7 | ||
[1] | Figures have been restated as described in the accounting policies. |
Deferred tax - Analysis of Defe
Deferred tax - Analysis of Deferred Tax Balances for Financial Reporting Purposes (Details) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | |||||
Deferred tax assets gross | £ 565 | £ 477.5 | |||
Deferred tax assets, offset | (223.5) | (264.6) | |||
Deferred tax assets | 341.5 | 212.9 | [1] | £ 187.9 | |
Deferred tax liabilities gross | (536) | (568.7) | |||
Deferred tax liabilities, offset | 223.5 | 264.6 | |||
Deferred tax liabilities | (312.5) | (304.1) | [1] | £ (379.8) | |
Deferred tax assets (liabilities) | £ 29 | £ (91.2) | |||
[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 (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | [1] | £ 212.9 | £ 187.9 | |
Ending balance | 341.5 | 212.9 | [1] | |
Gross deferred tax assets | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 477.5 | 430.9 | ||
(Charge)/credit to income | 80.9 | 57.4 | ||
Credit to other comprehensive income | (3) | 7.4 | ||
Exchange differences and other movements | (3.2) | (18.2) | ||
Acquisition of subsidiaries | 0.9 | |||
Credit to equity | 11.9 | |||
Ending balance | 565 | 477.5 | ||
Gross deferred tax assets | Deferred compensation | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 49.5 | 53.5 | ||
(Charge)/credit to income | 58.2 | (1.5) | ||
Credit to other comprehensive income | 0 | 0 | ||
Exchange differences and other movements | 0.8 | (2.5) | ||
Acquisition of subsidiaries | 0 | |||
Credit to equity | 0 | |||
Ending balance | 108.5 | 49.5 | ||
Gross deferred tax assets | Accounting provisions and accruals | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 109.5 | 87.4 | ||
(Charge)/credit to income | 0.3 | 30.3 | ||
Credit to other comprehensive income | 0 | 0 | ||
Exchange differences and other movements | (3.6) | (8.2) | ||
Acquisition of subsidiaries | 0 | |||
Credit to equity | 0 | |||
Ending balance | 106.2 | 109.5 | ||
Gross deferred tax assets | Retirement benefit obligations | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 57.9 | 57.5 | ||
(Charge)/credit to income | 1.2 | (3.5) | ||
Credit to other comprehensive income | (3) | 7.4 | ||
Exchange differences and other movements | (2.7) | (3.5) | ||
Acquisition of subsidiaries | 0 | |||
Credit to equity | 0 | |||
Ending balance | 53.4 | 57.9 | ||
Gross deferred tax assets | Property, plant and equipment | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 80.9 | 84.7 | ||
(Charge)/credit to income | (15.9) | (3.4) | ||
Credit to other comprehensive income | 0 | 0 | ||
Exchange differences and other movements | 3 | (0.4) | ||
Acquisition of subsidiaries | 0 | |||
Credit to equity | 0 | |||
Ending balance | 68 | 80.9 | ||
Gross deferred tax assets | Tax losses and credits | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 90.3 | 86.3 | ||
(Charge)/credit to income | 19.7 | 5.9 | ||
Credit to other comprehensive income | 0 | 0 | ||
Exchange differences and other movements | 0.5 | (1.9) | ||
Acquisition of subsidiaries | 0 | |||
Credit to equity | 0 | |||
Ending balance | 110.5 | 90.3 | ||
Gross deferred tax assets | Share- based payments | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 21.4 | 21.5 | ||
(Charge)/credit to income | 9.9 | 0.4 | ||
Credit to other comprehensive income | 0 | 0 | ||
Exchange differences and other movements | 0.3 | (0.5) | ||
Acquisition of subsidiaries | 0 | |||
Credit to equity | 11.9 | |||
Ending balance | 43.5 | 21.4 | ||
Gross deferred tax assets | Restructuring provisions | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 56.4 | 25.8 | ||
(Charge)/credit to income | 9.1 | 31.9 | ||
Credit to other comprehensive income | 0 | 0 | ||
Exchange differences and other movements | (4.4) | (1.3) | ||
Acquisition of subsidiaries | 0 | |||
Credit to equity | 0 | |||
Ending balance | 61.1 | 56.4 | ||
Gross deferred tax assets | Other temporary differences | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 11.6 | 14.2 | ||
(Charge)/credit to income | (1.6) | (2.7) | ||
Credit to other comprehensive income | 0 | 0 | ||
Exchange differences and other movements | 2.9 | 0.1 | ||
Acquisition of subsidiaries | 0.9 | |||
Credit to equity | 0 | |||
Ending balance | £ 13.8 | £ 11.6 | ||
[1] | Figures have been restated as described in the accounting policies. |
Deferred tax - Movements of Gro
Deferred tax - Movements of Gross Deferred Tax Liabilities (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | [1] | £ 304.1 | £ 379.8 | |
Ending balance | 312.5 | 304.1 | [1] | |
Gross deferred tax liabilities | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 568.7 | 622.8 | ||
Acquisition of subsidiaries | 22.5 | 1.5 | ||
(Credit)/charge to income | (51.6) | (40.1) | ||
Exchange differences and other movements | (3.6) | (15.5) | ||
Ending balance | 536 | 568.7 | ||
Gross deferred tax liabilities | Brands and other intangibles | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 326.8 | 352.3 | ||
Acquisition of subsidiaries | 22.5 | 1.5 | ||
(Credit)/charge to income | (19.5) | (22.3) | ||
Exchange differences and other movements | (4.7) | (4.7) | ||
Ending balance | 325.1 | 326.8 | ||
Gross deferred tax liabilities | Associate earnings | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 58 | 76.5 | ||
Acquisition of subsidiaries | 0 | 0 | ||
(Credit)/charge to income | (21.4) | (16.7) | ||
Exchange differences and other movements | 0.2 | (1.8) | ||
Ending balance | 36.8 | 58 | ||
Gross deferred tax liabilities | Goodwill | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 123.1 | 135.4 | ||
Acquisition of subsidiaries | 0 | 0 | ||
(Credit)/charge to income | 8.2 | (7.8) | ||
Exchange differences and other movements | 1.9 | (4.5) | ||
Ending balance | 133.2 | 123.1 | ||
Gross deferred tax liabilities | Financial instruments | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 35.8 | 36.9 | ||
Acquisition of subsidiaries | 0 | 0 | ||
(Credit)/charge to income | (35.5) | 0 | ||
Exchange differences and other movements | (0.3) | (1.1) | ||
Ending balance | 0 | 35.8 | ||
Gross deferred tax liabilities | Other temporary differences | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Beginning balance | 25 | 21.7 | ||
Acquisition of subsidiaries | 0 | 0 | ||
(Credit)/charge to income | 16.6 | 6.7 | ||
Exchange differences and other movements | (0.7) | (3.4) | ||
Ending balance | £ 40.9 | £ 25 | ||
[1] | Figures have been restated as described in the accounting policies. |
Deferred tax - Additional Infor
Deferred tax - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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 | £ 6,961.4 | £ 6,895.2 |
Gross tax losses and other temporary differences, deferred tax assets that have been recognised | 2,259.2 | 2,041.3 |
Gross tax losses and other temporary differences, deferred tax assets that have not been recognised | 4,702.2 | 4,853.9 |
Unrecognised temporary differences | 63.8 | 65.4 |
Losses carried forward | 4,457.3 | 4,594.9 |
Temporary differences, deferred tax liabilities that have not been recognised | £ 1,385.3 | £ 1,655.3 |
Bottom of Range | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognised temporary differences, period | 1 year | |
Top of Range | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognised temporary differences, period | 10 years |
Trade and other receivables - S
Trade and other receivables - Summary of Trade and Other Receivables, Amounts Falling Due Within One Year (Details) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | |
Trade and other receivables [abstract] | |||||
Trade receivables (net of loss allowance) | £ 6,600.5 | £ 6,572.2 | |||
Work in progress | 254 | 264.1 | |||
VAT and sales taxes recoverable | 350.3 | 236.6 | |||
Prepayments | 215.3 | 248.1 | |||
Accrued income | 3,435.7 | 3,150.1 | |||
Fair value of derivatives | 2.5 | 0.2 | |||
Other debtors | 504 | 501 | |||
Trade and other receivables | £ 11,362.3 | £ 10,972.3 | [1] | £ 11,822.3 | |
[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 (Details) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets [Line items] | ||
Financial assets | £ 7,096.8 | £ 7,099.4 |
Trade receivables | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 6,600.5 | 6,572.2 |
Trade receivables | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 6,671 | 6,684.7 |
Trade receivables | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (70.5) | (112.5) |
Other financial assets | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 496.3 | 527.2 |
0-30 days | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 604.8 | 692.5 |
0-30 days | Trade receivables | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 589.6 | 660 |
0-30 days | Trade receivables | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 589.8 | 661.2 |
0-30 days | Trade receivables | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (0.2) | (1.2) |
0-30 days | Other financial assets | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 15.2 | 32.5 |
31-90 days | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 195.2 | 175.9 |
31-90 days | Trade receivables | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 192.5 | 167.3 |
31-90 days | Trade receivables | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 194.4 | 169.2 |
31-90 days | Trade receivables | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (1.9) | (1.9) |
31-90 days | Other financial assets | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 2.7 | 8.6 |
91-180 days | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 59.5 | 52.2 |
91-180 days | Trade receivables | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 56.5 | 40.4 |
91-180 days | Trade receivables | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 64 | 55.6 |
91-180 days | Trade receivables | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (7.5) | (15.2) |
91-180 days | Other financial assets | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 3 | 11.8 |
181 days- 1 year | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 8.4 | 11.8 |
181 days- 1 year | Trade receivables | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 5.7 | 7.5 |
181 days- 1 year | Trade receivables | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 10.6 | 32.7 |
181 days- 1 year | Trade receivables | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (4.9) | (25.2) |
181 days- 1 year | Other financial assets | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 2.7 | 4.3 |
Greater than 1 year | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 53.5 | 22.8 |
Greater than 1 year | Trade receivables | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 2.9 | 4.6 |
Greater than 1 year | Trade receivables | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 56.6 | 69.2 |
Greater than 1 year | Trade receivables | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (53.7) | (64.6) |
Greater than 1 year | Other financial assets | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 50.6 | 18.2 |
Not past due | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 6,175.4 | 6,144.2 |
Not past due | Trade receivables | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 5,753.3 | 5,692.4 |
Not past due | Trade receivables | Cost | ||
Disclosure of financial assets [Line items] | ||
Financial assets | 5,755.6 | 5,696.8 |
Not past due | Trade receivables | Accumulated impairment losses and write-downs | ||
Disclosure of financial assets [Line items] | ||
Financial assets | (2.3) | (4.4) |
Not past due | Other financial assets | ||
Disclosure of financial assets [Line items] | ||
Financial assets | £ 422.1 | £ 451.8 |
Trade and other receivables -_2
Trade and other receivables - Summary of Trade and Other Receivables, Amounts Falling Due After More Than One Year (Details) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | |
Trade and other non-current receivables [abstract] | |||||
Prepayments | £ 3 | £ 2.8 | |||
Fair value of derivatives | 0.5 | 9.6 | |||
Other debtors | 149.1 | 143.8 | |||
Trade and other receivables | £ 152.6 | £ 156.2 | [1] | £ 137.6 | |
[1] | Figures have been restated as described in the accounting policies. |
Trade and other receivables - B
Trade and other receivables - Bad Debt Provisions (Details) - Trade receivables - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of financial assets [Line items] | |||
At beginning of year | £ 112.5 | £ 111.7 | £ 116.6 |
New acquisitions | 3.7 | 3.5 | 5 |
Charged to the income statement | 17.2 | 50.6 | 45.4 |
Released to the income statement | (27.9) | (9.8) | (19) |
Exchange adjustments | (1.7) | (2.8) | (4.1) |
Transfer to disposal group classified as held for sale | 0 | 0 | (8.9) |
Utilisations and other movements | (33.3) | (40.7) | (23.3) |
At end of year | £ 70.5 | £ 112.5 | £ 111.7 |
Trade and other receivables -_3
Trade and other receivables - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Trade and other receivables [abstract] | |||
Allowance for bad and doubtful debts as a percentage of gross trade accounts receivables | 1.10% | 1.70% | 1.60% |
Number of months, loss allowance | 12 months |
Trade and other payables - Summ
Trade and other payables - Summary of Trade and Other Payables, Amounts Falling Due within One Year (Details) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | |
Trade and other current payables [abstract] | |||||
Trade payables | £ 10,596.9 | £ 10,206.5 | |||
Deferred income | 1,334 | 1,153.7 | |||
Payments due to vendors (earnout agreements) | 85.6 | 57.8 | |||
Liabilities in respect of put option agreements with vendors | 58.4 | 9.3 | |||
Fair value of derivatives | 6.4 | 1.8 | |||
Share repurchases - close period commitments | 211.7 | 0 | |||
Other creditors and accruals | 2,959.3 | 2,430.6 | |||
Total | £ 15,252.3 | £ 13,859.7 | [1] | £ 14,188.1 | |
[1] | 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | |
Trade and other non-current payables [abstract] | |||||
Payments due to vendors (earnout agreements) | £ 111.1 | £ 56.5 | |||
Liabilities in respect of put option agreements with vendors | 333.1 | 101.4 | |||
Fair value of derivatives | 47.2 | 11.2 | |||
Other creditors and accruals | 128.5 | 144.4 | |||
Trade and other payables | £ 619.9 | £ 313.5 | [1] | £ 449.6 | |
[1] | 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, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Payments due to vendors, Current | £ 85.6 | £ 57.8 |
Payments due to vendors, Non-current | 111.1 | 56.5 |
Payments due to vendors | 196.7 | 114.3 |
Within one year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Payments due to vendors, Current | 85.6 | 57.8 |
Between one and two years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Payments due to vendors, Non-current | 24 | 17.2 |
Between two and three years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Payments due to vendors, Non-current | 35.7 | 6 |
Between three and four years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Payments due to vendors, Non-current | 51.4 | 30.5 |
Between four and five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Payments due to vendors, Non-current | 0 | 2.8 |
Over five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | ||
Payments due to vendors, Non-current | £ 0 | £ 0 |
Trade and other payables_ amo_5
Trade and other payables: amounts falling due after more than one year - Payment Due to Put Options (Details) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Liabilities of put option agreements with vendors | £ 391.5 | £ 110.7 |
Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Liabilities of put option agreements with vendors | 58.4 | 9.3 |
Between one and two years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Liabilities of put option agreements with vendors | 15.1 | 51 |
Between two and three years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Liabilities of put option agreements with vendors | 14.4 | 10 |
Between three and four years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Liabilities of put option agreements with vendors | 99 | 26.2 |
Between four and five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Liabilities of put option agreements with vendors | 76.6 | 9 |
Over five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Liabilities of put option agreements with vendors | £ 128 | £ 5.2 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of bank overdraft bonds and bank loans [abstract] | |||||
Bank overdrafts | £ 342.3 | £ 8,562 | £ 8,572.4 | ||
Corporate bonds and bank loans | 224.9 | 57.2 | |||
Current borrowings | £ 567.2 | £ 8,619.2 | [1] | £ 8,798 | [1] |
[1] | 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of bank overdraft bonds and bank loans [abstract] | |||||
Corporate bonds and bank loans | £ 4,216.8 | £ 4,975.5 | [1] | £ 4,047.3 | [1] |
[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, 2021 | Dec. 31, 2020 |
Disclosure of bank overdraft bonds and bank loans [line items] | ||
Carrying amount of bank loans | £ 14.7 | £ 57.2 |
Corporate bond | ||
Disclosure of bank overdraft bonds and bank loans [line items] | ||
Fair value of corporate bonds | £ 4,790.3 | £ 5,509.1 |
Bank overdrafts, bonds and ba_6
Bank overdrafts, bonds and bank loans - Repayments Due on Corporate Bonds, Bank Loans and Overdrafts (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | |
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||||
Corporate bonds, bank loans and overdrafts | £ 4,784 | £ 13,594.7 | |||
Current borrowings | 567.2 | 8,619.2 | [1] | £ 8,798 | |
Within one year | |||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||||
Current borrowings | 567.2 | 8,619.2 | |||
Between one and two years | |||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||||
Corporate bonds, bank loans and overdrafts | 629.2 | 590.9 | |||
Between two and three years | |||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||||
Corporate bonds, bank loans and overdrafts | 550.4 | 669.4 | |||
Between three and four years | |||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||||
Corporate bonds, bank loans and overdrafts | 418.8 | 540.2 | |||
Between four and five years | |||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||||
Corporate bonds, bank loans and overdrafts | 623.6 | 445.6 | |||
Over five years | |||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line items] | |||||
Corporate bonds, bank loans and overdrafts | £ 1,994.8 | £ 2,729.4 | |||
[1] | Figures have been restated as described in the accounting policies. |
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, 2021 | Dec. 31, 2020 | |
Disclosure of Noncurrent Provisions [line items] | ||
Beginning balance | £ 306.3 | £ 247.8 |
Charged to the income statement | 61 | 65.2 |
Acquisitions | 7.3 | 0.7 |
Utilised | (76.9) | (18.6) |
Released to the income statement | (43.3) | (16.5) |
Other movements | 13.7 | 33.7 |
Exchange adjustments | 0.4 | (6) |
Ending balance | 268.5 | 306.3 |
Acquisitions provisions from revisions to fair value adjustments | 7.3 | 0.4 |
Property | ||
Disclosure of Noncurrent Provisions [line items] | ||
Beginning balance | 76.7 | 81.5 |
Charged to the income statement | 25.2 | 14.8 |
Acquisitions | 0 | 0 |
Utilised | (7) | (1.6) |
Released to the income statement | (18.3) | (1.5) |
Other movements | (5.2) | (15) |
Exchange adjustments | (0.8) | (1.5) |
Ending balance | 70.6 | 76.7 |
Other | ||
Disclosure of Noncurrent Provisions [line items] | ||
Beginning balance | 229.6 | 166.3 |
Charged to the income statement | 35.8 | 50.4 |
Acquisitions | 7.3 | 0.7 |
Utilised | (69.9) | (17) |
Released to the income statement | (25) | (15) |
Other movements | 18.9 | 48.7 |
Exchange adjustments | 1.2 | (4.5) |
Ending balance | £ 197.9 | £ 229.6 |
Share-based payments - Charges
Share-based payments - Charges for Share-based Incentive Plans (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of share based payments [abstract] | |||
Share-based payments | £ 99.6 | £ 74.4 | £ 66 |
Share-based payments - Addition
Share-based payments - Additional Information (Details) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021GBP (£)performance_criteria | Dec. 31, 2020GBP (£) | Dec. 31, 2019GBP (£) | |
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Dependent award vesting percentage | 20.00% | ||
Maximum vest percentage | 100.00% | ||
Restricted stock plans | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Unrecognised compensation cost | £ 203.4 | £ 134.9 | |
Fair value of shares vested | £ 64.1 | £ 71.6 | £ 90.8 |
Restricted stock plans | Bottom of Range | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Unrecognised compensation cost, recognised period | 1 year | ||
Restricted stock plans | Top of Range | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Unrecognised compensation cost, recognised period | 2 years | ||
Executive Performance Share Plan (EPSP) | Bottom of Range | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Vesting period | 3 years | ||
Percentage of total Shareholder Return on vesting period | 15.00% | ||
Threshold performance vesting percentage | 20.00% | ||
Average return on equity percentage | 10.00% | ||
Compound annual growth percentage | 7.00% | ||
Maximum performance ROE | 0.14 | ||
Executive Performance Share Plan (EPSP) | Top of Range | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Vesting period | 5 years | ||
Percentage of total Shareholder Return on vesting period | 100.00% | ||
Threshold performance vesting percentage | 100.00% | ||
Average return on equity percentage | 14.00% | ||
Compound annual growth percentage | 14.00% | ||
Maximum performance ROE | 0.18 | ||
Executive Performance Share Plan (EPSP) | Weighted average | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Average return on equity percentage | 7.50% | ||
ESPP | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Number of performance conditions | performance_criteria | 3 | ||
Percentage of total Shareholder Return on vesting period | 20.00% | ||
Threshold performance vesting percentage | 100.00% | ||
Performance Share Awards (PSA) | |||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | |||
Vesting period | 2 years | ||
Leaders, Partners and High Potential Group | |||
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 | 1,800 |
Share-based payments - Movement
Share-based payments - Movement on Ordinary Shares Granted for Significant Restricted Stock Plans (Details) number in Millions | 12 Months Ended |
Dec. 31, 2021£ / shares | |
Executive Performance Share Plan (EPSP) | |
Disclosure of movement on ordinary shares granted for significant restricted stock plans [line items] | |
Number of shares, Non-vested beginning balance | 13 |
Number of shares, Granted | 6.1 |
Number of shares, Forfeited | (2.2) |
Number of shares, Vested | (0.2) |
Number of shares, Non-vested ending balance | 16.7 |
Weighted average fair value, Non-vested beginning balance | £ 9.43 |
Weighted average fair value, Granted | 9.51 |
Weighted average fair value, Forfeited | 12.89 |
Weighted average fair value, Vested | 8.33 |
Weighted average fair value, Non-vested ending balance | £ 9 |
Performance Share Awards (PSA) | |
Disclosure of movement on ordinary shares granted for significant restricted stock plans [line items] | |
Number of shares, Non-vested beginning balance | 4.3 |
Number of shares, Granted | 0.4 |
Number of shares, Forfeited | (0.2) |
Number of shares, Vested | (1.4) |
Number of shares, Non-vested ending balance | 3.1 |
Weighted average fair value, Non-vested beginning balance | £ 6.75 |
Weighted average fair value, Granted | 6.66 |
Weighted average fair value, Forfeited | 5.34 |
Weighted average fair value, Vested | 8.59 |
Weighted average fair value, Non-vested ending balance | £ 6.04 |
Leaders, Partners and High Potential Group | |
Disclosure of movement on ordinary shares granted for significant restricted stock plans [line items] | |
Number of shares, Non-vested beginning balance | 11 |
Number of shares, Granted | 3.6 |
Number of shares, Forfeited | (1.1) |
Number of shares, Vested | (3.1) |
Number of shares, Non-vested ending balance | 10.4 |
Weighted average fair value, Non-vested beginning balance | £ 8.31 |
Weighted average fair value, Granted | 9.90 |
Weighted average fair value, Forfeited | 8.53 |
Weighted average fair value, Vested | 7.09 |
Weighted average fair value, Non-vested ending balance | £ 9.22 |
Provision for post-employment_3
Provision for post-employment benefits - Pension Costs (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Pension Costs [abstract] | |||
Defined contribution plans | £ 162.8 | £ 157.8 | £ 154.9 |
Defined benefit plans charge to operating profit | 14.9 | 13.9 | 14.8 |
Pension costs | 177.7 | 171.7 | 169.7 |
Net interest expense on pension plans | 1.8 | 2.9 | 3.5 |
Pension costs, Net | £ 179.5 | £ 174.6 | £ 173.2 |
Provision for post-employment_4
Provision for post-employment benefits - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans [line items] | |||
Employer contributions (for funded plans) and benefit payments (for unfunded plans) | £ 16.7 | £ 20.3 | £ 37.1 |
Employer contributions (for funded plans) and benefit payments (for unfunded plans), expected in 2022 | £ 15 | ||
Current pensioners (at age 65) – male | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assumption of life expectancy | 22 years 3 months 18 days | 22 years 1 month 6 days | |
Current pensioners (at age 65) – female | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assumption of life expectancy | 24 years | 23 years 7 months 6 days | |
Future pensioners (current age 45) – male | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assumption of life expectancy | 24 years 1 month 6 days | 23 years 8 months 12 days | |
Future pensioners (current age 45) – female | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assumption of life expectancy | 25 years 9 months 18 days | 25 years 2 months 12 days |
Provision for post-employment_5
Provision for post-employment benefits - Weighted Average Assumptions Used For Actuarial Valuations (Details) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
United Kingdom | ||||
Disclosure of defined benefit plans [line items] | ||||
Discount rate | 1.80% | 1.30% | 2.00% | 2.80% |
Rate of increase in pensions in payment | 4.50% | 4.40% | 4.40% | 4.30% |
Inflation | 3.20% | 2.80% | 2.60% | 2.80% |
North America | ||||
Disclosure of defined benefit plans [line items] | ||||
Discount rate | 2.60% | 2.00% | 3.00% | 4.10% |
Rate of increase in salaries | 3.00% | 3.00% | 3.00% | |
Western Continental Europe | ||||
Disclosure of defined benefit plans [line items] | ||||
Discount rate | 1.20% | 0.90% | 1.20% | 2.00% |
Rate of increase in salaries | 2.30% | 2.20% | 2.20% | 2.30% |
Rate of increase in pensions in payment | 1.80% | 1.80% | 1.80% | 1.20% |
Inflation | 1.70% | 1.70% | 1.70% | 1.70% |
Other | ||||
Disclosure of defined benefit plans [line items] | ||||
Discount rate | 5.30% | 4.20% | 4.60% | 5.00% |
Rate of increase in salaries | 5.60% | 5.20% | 6.10% | 5.80% |
Inflation | 3.70% | 3.70% | 3.70% | 3.60% |
Provision for post-employment_6
Provision for post-employment benefits - Life Expectancies for Defined Benefit Pension Plans (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current pensioners (at age 65) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 22 years 3 months 18 days | 22 years 1 month 6 days |
Current pensioners (at age 65) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 24 years | 23 years 7 months 6 days |
Future pensioners (current age 45) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 24 years 1 month 6 days | 23 years 8 months 12 days |
Future pensioners (current age 45) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 25 years 9 months 18 days | 25 years 2 months 12 days |
North America | Current pensioners (at age 65) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 21 years 9 months 18 days | |
North America | Current pensioners (at age 65) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 3 months 18 days | |
North America | Future pensioners (current age 45) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 2 months 12 days | |
North America | Future pensioners (current age 45) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 24 years 7 months 6 days | |
United Kingdom | Current pensioners (at age 65) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 6 months | |
United Kingdom | Current pensioners (at age 65) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 25 years | |
United Kingdom | Future pensioners (current age 45) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 25 years 6 months | |
United Kingdom | Future pensioners (current age 45) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 27 years 1 month 6 days | |
Western Continental Europe | Current pensioners (at age 65) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 20 years 10 months 24 days | |
Western Continental Europe | Current pensioners (at age 65) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 10 months 24 days | |
Western Continental Europe | Future pensioners (current age 45) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 23 years 1 month 6 days | |
Western Continental Europe | Future pensioners (current age 45) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 25 years 10 months 24 days | |
Other | Current pensioners (at age 65) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 13 years 3 months 18 days | |
Other | Current pensioners (at age 65) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 16 years 4 months 24 days | |
Other | Future pensioners (current age 45) – male | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 13 years 3 months 18 days | |
Other | Future pensioners (current age 45) – female | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of life expectancy | 16 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 (Details) £ in Millions | 12 Months Ended |
Dec. 31, 2021GBP (£) | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of the defined benefit obligation (years) | 11 years 2 months 12 days |
Benefits expected to be paid within 12 months | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 47.4 |
Benefits expected to be paid in 2023 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 42.6 |
Benefits expected to be paid in 2024 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 41.7 |
Benefits expected to be paid in 2025 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 42 |
Benefits expected to be paid in 2026 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 43.9 |
Benefits expected to be paid in the next five years | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 215.1 |
North America | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of the defined benefit obligation (years) | 9 years 3 months 18 days |
North America | Benefits expected to be paid within 12 months | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 22.8 |
North America | Benefits expected to be paid in 2023 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 20.8 |
North America | Benefits expected to be paid in 2024 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 20.2 |
North America | Benefits expected to be paid in 2025 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 18.9 |
North America | Benefits expected to be paid in 2026 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 19.9 |
North America | Benefits expected to be paid in the next five years | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 85.8 |
United Kingdom | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of the defined benefit obligation (years) | 13 years 7 months 6 days |
United Kingdom | Benefits expected to be paid within 12 months | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 13.5 |
United Kingdom | Benefits expected to be paid in 2023 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 12.2 |
United Kingdom | Benefits expected to be paid in 2024 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 12.6 |
United Kingdom | Benefits expected to be paid in 2025 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 13.3 |
United Kingdom | Benefits expected to be paid in 2026 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 13.3 |
United Kingdom | Benefits expected to be paid in the next five years | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 71.4 |
Western Continental Europe | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of the defined benefit obligation (years) | 12 years 4 months 24 days |
Western Continental Europe | Benefits expected to be paid within 12 months | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 5.6 |
Western Continental Europe | Benefits expected to be paid in 2023 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 5.5 |
Western Continental Europe | Benefits expected to be paid in 2024 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 5.4 |
Western Continental Europe | Benefits expected to be paid in 2025 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 5.7 |
Western Continental Europe | Benefits expected to be paid in 2026 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 5.8 |
Western Continental Europe | Benefits expected to be paid in the next five years | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 31.8 |
Other | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of the defined benefit obligation (years) | 6 years 3 months 18 days |
Other | Benefits expected to be paid within 12 months | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 5.5 |
Other | Benefits expected to be paid in 2023 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 4.1 |
Other | Benefits expected to be paid in 2024 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 3.5 |
Other | Benefits expected to be paid in 2025 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 4.1 |
Other | Benefits expected to be paid in 2026 | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | 4.9 |
Other | Benefits expected to be paid in the next five years | |
Disclosure of defined benefit plans [line items] | |
Expected benefit payments | £ 26.1 |
Provision for post-employment_8
Provision for post-employment benefits - Sensitivity Analysis of Significant Actuarial Assumptions (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumption, increase in longevity | 1 year | 1 year |
Discount rate | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumption, basis point increase | 0.25% | 0.25% |
Assumption, basis point decrease | 0.25% | 0.25% |
Discount rate | United Kingdom | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ (7.6) | £ (8.8) |
Increase/(decrease) in benefit obligation, due to decrease in assumption | 8 | 9.1 |
Discount rate | North America | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | (6.4) | (7.6) |
Increase/(decrease) in benefit obligation, due to decrease in assumption | 6.6 | 7.8 |
Discount rate | Western Continental Europe | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | (3.4) | (4) |
Increase/(decrease) in benefit obligation, due to decrease in assumption | 3.6 | 4.3 |
Discount rate | Other | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | (0.6) | (0.6) |
Increase/(decrease) in benefit obligation, due to decrease in assumption | £ 0.6 | £ 0.6 |
Rate of increase in salaries | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumption, basis point increase | 0.25% | 0.25% |
Assumption, basis point decrease | 0.25% | 0.25% |
Rate of increase in salaries | Western Continental Europe | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ 0.8 | £ 0.9 |
Increase/(decrease) in benefit obligation, due to decrease in assumption | (0.8) | (0.9) |
Rate of increase in salaries | Other | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | 0.5 | 0.6 |
Increase/(decrease) in benefit obligation, due to decrease in assumption | £ (0.5) | £ (0.5) |
Rate of increase in pensions in payment | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Assumption, basis point increase | 0.25% | 0.25% |
Assumption, basis point decrease | 0.25% | 0.25% |
Rate of increase in pensions in payment | United Kingdom | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ 0.9 | £ 1.1 |
Increase/(decrease) in benefit obligation, due to decrease in assumption | (0.9) | (0.7) |
Rate of increase in pensions in payment | Western Continental Europe | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | 1.7 | 2.1 |
Increase/(decrease) in benefit obligation, due to decrease in assumption | (1.7) | (2) |
Life expectancy | United Kingdom | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | 13.3 | 14 |
Life expectancy | North America | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | 5.3 | 5.9 |
Life expectancy | Western Continental Europe | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Increase/(decrease) in benefit obligation, due to increase in assumption | £ 4.2 | £ 4.8 |
Provision for post-employment_9
Provision for post-employment benefits - Fair Value of Assets and Assessed Present Value of Liabilities in Pension Plans (Details) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Of Pension Costs [abstract] | |||
Fair value of assets, Equities | £ 31.8 | £ 41.6 | £ 55.5 |
Fair value of assets, Bonds | 259.7 | 284.2 | 272.5 |
Fair value of assets, Insured annuities | 222.5 | 252.8 | 239.1 |
Fair value of assets, Property | 1 | 0.7 | 0.7 |
Fair value of assets, Cash | 15.3 | 14.7 | 17.7 |
Fair value of assets, Other | 21.8 | 22.6 | 23 |
Total fair value of assets | 552.1 | 616.6 | 608.5 |
Present value of liabilities | (688.5) | (772.7) | (767.5) |
Deficit in the plans | (136.4) | (156.1) | (159) |
Irrecoverable surplus | (0.2) | (0.6) | 0 |
Net liability | (136.6) | (156.7) | (159) |
Plans in surplus | 30.1 | 27.2 | 20.6 |
Plans in deficit | £ (166.7) | £ (183.9) | £ (179.6) |
Fair value of assets allocation, Equities | 5.80% | 6.70% | 9.10% |
Fair value of assets allocation, Bonds | 47.00% | 46.10% | 44.80% |
Fair value of assets allocation, Insured annuities | 40.30% | 41.00% | 39.30% |
Fair value of assets allocation, Property | 0.20% | 0.10% | 0.10% |
Fair value of assets allocation, Cash | 2.80% | 2.40% | 2.90% |
Fair value of assets allocation, Other | 3.90% | 3.70% | 3.80% |
Total fair value of assets allocation | 100.00% | 100.00% | 100.00% |
Provision for post-employmen_10
Provision for post-employment benefits - Surplus/(Deficit) in Plans by Region (Details) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of defined benefit plans [line items] | |||
Deficit in the plans | £ (136.4) | £ (156.1) | £ (159) |
United Kingdom | |||
Disclosure of defined benefit plans [line items] | |||
Deficit in the plans | 0.4 | 0.7 | 0.3 |
North America | |||
Disclosure of defined benefit plans [line items] | |||
Deficit in the plans | (28.1) | (37.9) | (45.2) |
Western Continental Europe | |||
Disclosure of defined benefit plans [line items] | |||
Deficit in the plans | (74) | (85.9) | (79.4) |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe | |||
Disclosure of defined benefit plans [line items] | |||
Deficit in the plans | £ (34.7) | £ (33) | £ (34.7) |
Provision for post-employmen_11
Provision for post-employment benefits - Funded and Unfunded Pension Plans By Region (Details) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | £ (136.4) | £ (156.1) | £ (159) |
Present value of liabilities | (688.5) | (772.7) | (767.5) |
United Kingdom | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | 0.4 | 0.7 | 0.3 |
North America | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (28.1) | (37.9) | (45.2) |
Western Continental Europe | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (74) | (85.9) | (79.4) |
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (34.7) | (33) | (34.7) |
Funded plans by region | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (31) | (26.3) | (23.8) |
Present value of liabilities | (583.1) | (642.9) | (632.3) |
Funded plans by region | United Kingdom | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | 0.4 | 0.7 | 0.3 |
Present value of liabilities | (231.9) | (262.7) | (247.6) |
Funded plans by region | North America | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | 20.1 | 17.4 | 12.8 |
Present value of liabilities | (237.9) | (271.8) | (286.2) |
Funded plans by region | Western Continental Europe | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (45.1) | (38.6) | (33.3) |
Present value of liabilities | (87.6) | (84.3) | (77.6) |
Funded plans by region | Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (6.4) | (5.8) | (3.6) |
Present value of liabilities | (25.7) | (24.1) | (20.9) |
Unfunded plans by region | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (105.4) | (129.8) | (135.2) |
Present value of liabilities | (105.4) | (129.8) | (135.2) |
Unfunded plans by region | North America | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (48.2) | (55.3) | (58) |
Present value of liabilities | (48.2) | (55.3) | (58) |
Unfunded plans by region | Western Continental Europe | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (28.9) | (47.3) | (46.1) |
Present value of liabilities | (28.9) | (47.3) | (46.1) |
Unfunded plans by region | Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe | |||
Disclosure of defined benefit plans [line items] | |||
Surplus/ (deficit) | (28.3) | (27.2) | (31.1) |
Present value of liabilities | £ (28.3) | £ (27.2) | £ (31.1) |
Provision for post-employmen_12
Provision for post-employment benefits - Pension Expense Charged to Operating Profit, Amounts Charged to Finance Costs and Amounts Recognised in Consolidated Statement of Comprehensive Income (OCI) (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Disclosure of net defined benefit (liability) asset | |||||
Service cost | £ 12.6 | £ 12 | £ 12.9 | ||
Administrative expenses | 2.3 | 1.9 | 1.9 | ||
Charge to operating profit | 14.9 | 13.9 | 14.8 | ||
Net interest expense on pension plans | 1.8 | 2.9 | 3.5 | ||
Charge to profit before taxation for defined benefit plans | 16.7 | 16.8 | 18.3 | ||
Actuarial gain/(loss) recognised in OCI | 14.3 | 2 | [1] | (36.6) | [1] |
Post employment pension other comprehensive income | |||||
Disclosure of net defined benefit (liability) asset | |||||
Return on plan assets (excluding interest income) | (29.3) | 57.2 | 16.7 | ||
Changes in demographic assumptions underlying the present value of the plan liabilities | (3.6) | 3.8 | 5.9 | ||
Changes in financial assumptions underlying the present value of the plan liabilities | 31.1 | (54) | (64.3) | ||
Experience gain/(loss) arising on the plan liabilities | 15.7 | (4.4) | 5.1 | ||
Change in irrecoverable surplus | 0.4 | (0.6) | 0 | ||
Actuarial gain/(loss) recognised in OCI | £ 14.3 | £ 2 | £ (36.6) | ||
[1] | 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 (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of net defined benefit (liability) asset | |||
Plan liabilities at beginning of year | £ 156.7 | £ 159 | |
Plan liabilities at end of year | 136.6 | 156.7 | £ 159 |
United Kingdom | |||
Disclosure of net defined benefit (liability) asset | |||
Settlement payments | (47.1) | ||
Retirement benefit obligations | |||
Disclosure of net defined benefit (liability) asset | |||
Plan liabilities at beginning of year | 772.7 | 767.5 | 1,024 |
Service cost | 12.6 | 12 | 14.9 |
Interest cost | 12 | 17 | 26.2 |
Effect of changes in demographic assumptions | 3.6 | (3.8) | (5.9) |
Effect of changes in financial assumptions | (31.1) | 54 | 64.3 |
Effect of experience adjustments | (15.7) | 4.4 | (5.1) |
Benefits paid | (59.5) | (59.6) | (140.8) |
Gain due to exchange rate movements | (6.1) | (4.2) | (22.7) |
Settlement payments | (0.3) | (17) | (47.4) |
Transfer to disposal group classified as held for sale | 0 | 0 | (148) |
Other | 0.3 | 2.4 | 8 |
Plan liabilities at end of year | 688.5 | 772.7 | 767.5 |
Plan assets | |||
Disclosure of net defined benefit (liability) asset | |||
Plan liabilities at beginning of year | (616.6) | (608.5) | (840.6) |
Benefits paid | 59.5 | 59.6 | 140.8 |
Gain due to exchange rate movements | 0.6 | 6.8 | 15.7 |
Settlement payments | 0.3 | 17 | 47.4 |
Other | (0.1) | (1.8) | (8.8) |
Plan liabilities at end of year | £ (552.1) | £ (616.6) | (608.5) |
Plan assets | United States | |||
Disclosure of net defined benefit (liability) asset | |||
Lump sum payouts | 69.7 | ||
Plan assets | United Kingdom | |||
Disclosure of net defined benefit (liability) asset | |||
Settlement payments | £ (47.1) |
Provision for post-employmen_14
Provision for post-employment benefits - Movement in Pension Plan Assets (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of net defined benefit (liability) asset | |||
Fair value of plan assets at beginning of year | £ (156.7) | £ (159) | |
Employer contributions | 16.7 | 20.3 | £ 37.1 |
Administrative expenses | (2.3) | (1.9) | (1.9) |
Fair value of plan assets at end of year | (136.6) | (156.7) | (159) |
Plan assets | |||
Disclosure of net defined benefit (liability) asset | |||
Fair value of plan assets at beginning of year | 616.6 | 608.5 | 840.6 |
Interest income on plan assets | 10.2 | 14.1 | 22.4 |
Return on plan assets (excluding interest income) | (29.3) | 57.2 | 16.7 |
Employer contributions | 16.7 | 20.3 | 37.1 |
Benefits paid | (59.5) | (59.6) | (140.8) |
Loss due to exchange rate movements | (0.6) | (6.8) | (15.7) |
Settlement payments | (0.3) | (17) | (47.4) |
Administrative expenses | (1.8) | (1.9) | (2.1) |
Transfer to disposal group classified as held for sale | 0 | 0 | (111.1) |
Other | 0.1 | 1.8 | 8.8 |
Fair value of plan assets at end of year | 552.1 | 616.6 | 608.5 |
Actual return on plan assets | £ (19.1) | £ 71.3 | 39.1 |
United States | Plan assets | |||
Disclosure of net defined benefit (liability) asset | |||
Lump sum payouts | 69.7 | ||
United Kingdom | |||
Disclosure of net defined benefit (liability) asset | |||
Settlement payments | 47.1 | ||
United Kingdom | Plan assets | |||
Disclosure of net defined benefit (liability) asset | |||
Settlement payments | £ 47.1 |
Risk management policies - Addi
Risk management policies - Additional Information (Details) € in Millions, £ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021GBP (£) | Dec. 31, 2020EUR (€) | Dec. 31, 2020GBP (£) | |
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | £ 4,441.7 | £ 5,032.7 | ||||
Percentage weakening of revenue less pass-through costs | 30.00% | |||||
Percentage weakening in net sales | 70.00% | |||||
Bond amount | 6,300 | |||||
Percentage of trade receivables | 5.00% | |||||
Interest rate risk | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage increase in market interest rate | 1.00% | |||||
Potential amount of change due to an increase or decrease in risk | £ 33.3 | 40.9 | ||||
Percentage decrease in market interest rate | 1.00% | |||||
US dollar borrowings | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | $ | $ 1,667 | $ 2,167 | ||||
US dollar borrowings | Weighted average | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | $ | $ 1,934 | $ 2,311 | ||||
US dollar borrowings | Fixed interest rate | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage of debt | 100.00% | |||||
Average interest rate | 4.18% | 4.18% | 4.18% | |||
Average period of debt | 72 months | |||||
Sterling Borrowings | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | £ 1,094 | 1,094 | ||||
Sterling Borrowings | Weighted average | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | £ 1,094 | £ 999 | ||||
Sterling Borrowings | Fixed interest rate | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage of debt | 100.00% | |||||
Average interest rate | 2.97% | 2.97% | 2.97% | |||
Average period of debt | 155 months | |||||
Sterling Borrowings | Currency risk | ||||||
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 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | € | € 2,600 | € 2,600 | ||||
Euro Borrowings | Weighted average | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | € | € 2,600 | € 2,409 | ||||
Euro Borrowings | Fixed interest rate | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage of debt | 90.40% | |||||
Average interest rate | 2.04% | 2.04% | 2.04% | |||
Average period of debt | 69 months | |||||
Euro Borrowings | Floating interest rate | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage of debt | 9.60% | |||||
Average interest rate | 0.00% | 0.00% | 0.00% | |||
Average period of debt | 3 months |
Risk management policies - Comm
Risk management policies - Committed Facilities (Details) € in Millions, £ in Millions, $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021GBP (£) | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) |
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | £ 6,300 | ||||
Bonds issued, undiscounted cash flows | 6,309.7 | ||||
Drawn down facilities | 4,462.2 | ||||
Undrawn committed credit facilities | $ 1,847.5 | 1,847.5 | $ 2,023.2 | ||
£ bonds £400m (2.875% 2046) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | £ 400 | ||||
Average interest rate | 2.875% | 2.875% | 2.875% | ||
Bonds issued, undiscounted cash flows | £ 400 | ||||
US bond $220m (5.625% 2043) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | $ | $ 220 | ||||
Average interest rate | 5.625% | 5.625% | 5.625% | ||
Bonds issued, undiscounted cash flows | £ 162.5 | ||||
US bond $93m (5.125% 2042) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | $ | $ 93 | ||||
Average interest rate | 5.125% | 5.125% | 5.125% | ||
Bonds issued, undiscounted cash flows | £ 68.6 | ||||
£ bonds £250m (3.75% 2032) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | £ 250 | ||||
Average interest rate | 3.75% | 3.75% | 3.75% | ||
Bonds issued, undiscounted cash flows | £ 250 | ||||
Eurobonds €600m (1.625% 2030) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | € | € 600 | € 600 | |||
Average interest rate | 1.625% | 1.625% | 1.625% | ||
Bonds issued, undiscounted cash flows | £ 504.5 | ||||
Eurobonds €750m (2.375% 2027) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | € | 750 | ||||
Average interest rate | 2.375% | 2.375% | 2.375% | ||
Bonds issued, undiscounted cash flows | £ 630.6 | ||||
Eurobonds €750m (2.25% 2026) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | € | € 750 | 750 | |||
Average interest rate | 2.25% | 2.25% | 2.25% | ||
Bonds issued, undiscounted cash flows | £ 630.6 | ||||
Bank revolver ($2,500m 2026) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | $ | $ 2,500 | ||||
Bonds issued, undiscounted cash flows | £ 1,847.5 | ||||
Eurobonds €500m (1.375% 2025) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | € | € 500 | 500 | |||
Average interest rate | 1.375% | 1.375% | 1.375% | ||
Bonds issued, undiscounted cash flows | £ 420.4 | ||||
US bond $750m (3.75% 2024) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | $ | $ 750 | ||||
Average interest rate | 3.75% | 3.75% | 3.75% | ||
Bonds issued, undiscounted cash flows | £ 554.2 | ||||
Eurobonds €750m (3.0% 2023) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | € | € 750 | € 750 | |||
Average interest rate | 3.00% | 3.00% | 3.00% | ||
Bonds issued, undiscounted cash flows | £ 630.6 | ||||
Eurobonds €250m (3m EURIBOR + 0.45% 2022) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bond amount | € 250 | 250 | |||
Bonds issued, undiscounted cash flows | £ 210.2 | ||||
Adjustment to floating basis | 0.45% | 0.45% | 0.45% | ||
2022 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | £ 210.2 | ||||
Drawn down facilities | 210.2 | ||||
2022 | Eurobonds €250m (3m EURIBOR + 0.45% 2022) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | 210.2 | ||||
2023 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | 630.6 | ||||
Drawn down facilities | 630.6 | ||||
2023 | Eurobonds €750m (3.0% 2023) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | 630.6 | ||||
2024 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | 554.2 | ||||
Drawn down facilities | 554.2 | ||||
2024 | US bond $750m (3.75% 2024) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | 554.2 | ||||
2025 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | 420.4 | ||||
Drawn down facilities | 420.4 | ||||
2025 | Eurobonds €500m (1.375% 2025) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | 420.4 | ||||
2026 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | 4,494.3 | ||||
Drawn down facilities | 2,646.8 | ||||
2026 | £ bonds £400m (2.875% 2046) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | 400 | ||||
2026 | US bond $220m (5.625% 2043) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | 162.5 | ||||
2026 | US bond $93m (5.125% 2042) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | 68.6 | ||||
2026 | £ bonds £250m (3.75% 2032) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | 250 | ||||
2026 | Eurobonds €600m (1.625% 2030) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | 504.5 | ||||
2026 | Eurobonds €750m (2.375% 2027) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | 630.6 | ||||
2026 | Eurobonds €750m (2.25% 2026) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | 630.6 | ||||
2026 | Bank revolver ($2,500m 2026) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Bonds issued, undiscounted cash flows | £ 1,847.5 |
Risk management policies - Summ
Risk management policies - Summary of currency risk (Details) - Currency risk - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
US dollar | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Accumulated fair value hedge adjustment on hedged item included in carrying amount, assets | £ 0.7 | £ 159.1 |
Euro | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Accumulated fair value hedge adjustment on hedged item included in carrying amount, assets | £ 17.4 | £ 167.2 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021GBP (£) | Dec. 31, 2020GBP (£) | |
Disclosure of detailed information about financial instruments [line items] | ||||
Cash flow hedges derivative instruments at fair value, net | £ 38,000,000 | £ 5,900,000 | ||
Loss on cash flow hedges | 2,500,000 | 0 | ||
Nominal amount | 6,300,000,000 | |||
Liabilities of put option agreements with vendors | £ 391,500,000 | £ 110,700,000 | ||
Weighted average growth rate | 16.70% | 14.80% | ||
Risk adjusted discount rate | 6.50% | 4.00% | ||
Increase (decrease) in growth rate in estimated future financial performance | 1.00% | 1.00% | 1.00% | |
Increase (decrease) in risk-adjusted discount rate | 0.50% | 0.50% | 0.50% | |
Increase (decrease) in value of investments | 50.00% | 50.00% | 50.00% | |
Contracts due in November 2023 | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Receipts | € | € 500 | |||
Payments | $ | $ 604.2 | |||
Contracts Due In March 2025 | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Receipts | € | € 500 | |||
Payments | £ 444,100,000 | |||
Held at fair value through profit or loss | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Liabilities of put option agreements with vendors | 219,600,000 | |||
Earnout agreements for acquisitions completed in the current year | Bottom of Range | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Potential undiscounted amount of future payments | 0 | £ 0 | ||
Earnout agreements for acquisitions completed in the current year | Top of Range | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Potential undiscounted amount of future payments | 124,000,000 | 41,000,000 | ||
All earn-out agreements | Bottom of Range | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Potential undiscounted amount of future payments | 0 | 0 | ||
All earn-out agreements | Top of Range | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Potential undiscounted amount of future payments | 595,000,000 | 808,000,000 | ||
An increase or decrease in the multiple of 0.5 times revenue | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Increase decrease on equity due to change in fair value of other investment | 3,800,000 | |||
One percentage point increase or decrease | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Increase in combined liabilities due to earn out and put option arrangement | 6,000,000 | 1,500,000 | ||
Decrease in combined liabilities due to earn out and put option arrangement | 6,600,000 | 1,400,000 | ||
0.5 percentage point increase or decrease | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Increase in combined liabilities due to earn out and put option arrangement | 8,900,000 | 2,000,000 | ||
Decrease in combined liabilities due to earn out and put option arrangement | 8,600,000 | 2,000,000 | ||
Derivatives not designated as hedges | Foreign Exchange Contracts | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Fair value estimated to be a net asset (liability) | (3,900,000) | (1,600,000) | ||
Nominal amount | 764,800,000 | 304,600,000 | ||
Derivatives not designated as hedges | Trade and Other Payable | Foreign Exchange Contracts | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative liabilities | £ 45,500,000 | 9,700,000 | ||
Hedges of net investment in foreign operations [member] | 93 USD Million Bond | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Nominal amount of hedging instrument | 93,000,000 | |||
Hedges of net investment in foreign operations [member] | 750 USD Million Bond | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Nominal amount of hedging instrument | 750,000,000 | |||
Hedges of net investment in foreign operations [member] | 220 USD Million Bond | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Nominal amount of hedging instrument | 220,000,000 | |||
Hedges of net investment in foreign operations [member] | 604 USD Million Bond | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Nominal amount of hedging instrument | 604,000,000 | |||
Derivatives in designated hedge relationships | Foreign Exchange Contracts | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Fair value estimated to be a net asset (liability) | £ 46,700,000 | 1,600,000 | ||
Derivatives in designated hedge relationships | Trade and other receivable | Foreign Exchange Contracts | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative assets | 500,000 | 9,600,000 | ||
Derivatives in designated hedge relationships | Trade and Other Payable | Foreign Exchange Contracts | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative liabilities | £ 47,200,000 | £ 11,200,000 |
Financial Instruments - Analysi
Financial Instruments - Analysis of Financial Assets and Liabilities (Details) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | |
Disclosure of detailed information about financial instruments [line items] | |||||
Other investments | £ 318.3 | £ 387.3 | [1] | £ 498.3 | |
Bonds and bank loans | (4,216.8) | (4,975.5) | [1] | (4,047.3) | |
Payments due to vendors (earnout agreements) | (196.7) | (114.3) | |||
Liabilities in respect of put options | (391.5) | (110.7) | |||
Current borrowings | (567.2) | (8,619.2) | [1] | £ (8,798) | |
Derivatives in designated hedge relationships | Classification under IFRS 9 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative assets | 0.5 | 9.6 | |||
Derivative liabilities | (47.2) | (6.3) | |||
Financial instruments | (46.7) | 3.3 | |||
Held at fair value through profit or loss | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Liabilities in respect of put options | (219.6) | ||||
Held at fair value through profit or loss | Classification under IFRS 9 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Other investments | 228.3 | 263.3 | |||
Derivative assets | 2.5 | 0.2 | |||
Derivative liabilities | (6.4) | (6.7) | |||
Payments due to vendors (earnout agreements) | (196.7) | (114.3) | |||
Liabilities in respect of put options | (391.5) | (110.7) | |||
Financial instruments | (363.8) | 31.8 | |||
Held at fair value through other comprehensive income | Classification under IFRS 9 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Other investments | 90 | 124 | |||
Financial instruments | 90 | 124 | |||
Amortised cost | Classification under IFRS 9 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Cash and short-term deposits | 3,882.9 | 12,899.1 | |||
Bonds and bank loans | (4,216.8) | (4,975.5) | |||
Trade and other receivables: amounts falling due within one year | 7,012.3 | 6,989.3 | |||
Trade and other receivables: amounts falling due after more than one year | 84.5 | 110.1 | |||
Trade and other payables: amounts falling due within one year | (10,674.8) | (10,268) | |||
Trade and other payables: amounts falling due after more than one year | (1.5) | (0.9) | |||
Financial instruments | (4,480.6) | (3,865.1) | |||
Current borrowings | (567.2) | (8,619.2) | |||
Carrying value | Classification under IFRS 9 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Other investments | 318.3 | 387.3 | |||
Cash and short-term deposits | 3,882.9 | 12,899.1 | |||
Bonds and bank loans | (4,216.8) | (4,975.5) | |||
Trade and other receivables: amounts falling due within one year | 7,012.3 | 6,989.3 | |||
Trade and other receivables: amounts falling due after more than one year | 84.5 | 110.1 | |||
Trade and other payables: amounts falling due within one year | (10,674.8) | (10,268) | |||
Trade and other payables: amounts falling due after more than one year | (1.5) | (0.9) | |||
Derivative assets | 3 | 9.8 | |||
Derivative liabilities | (53.6) | (13) | |||
Payments due to vendors (earnout agreements) | (196.7) | (114.3) | |||
Liabilities in respect of put options | (391.5) | (110.7) | |||
Financial instruments | (4,801.1) | (3,706) | |||
Current borrowings | £ (567.2) | £ (8,619.2) | |||
[1] | Figures have been restated as described in the accounting policies. |
Financial Instruments - Analy_2
Financial Instruments - Analysis of Financial Instruments Measured at Fair Value (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Disclosure of detailed information about financial instruments [line items] | |||||
Other investments | £ 318.3 | £ 387.3 | [1] | £ 498.3 | [1] |
Payments due to vendors (earnout agreements) | (196.7) | (114.3) | |||
Liabilities in respect of put options | (391.5) | (110.7) | |||
Held at fair value through profit or loss | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Liabilities in respect of put options | (219.6) | ||||
Payments due to vendors (earnout agreements) | Level 3 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Losses recognised in other comprehensive income | 0 | ||||
Disposals | 0 | 0 | |||
At Fair Value | Derivatives in designated hedge relationships | Derivative liabilities | Level 1 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative liabilities | 0 | 0 | |||
At Fair Value | Derivatives in designated hedge relationships | Derivative liabilities | Level 2 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative liabilities | (47.2) | (6.3) | |||
At Fair Value | Derivatives in designated hedge relationships | Derivative liabilities | Level 3 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative liabilities | 0 | 0 | |||
At Fair Value | Derivatives in designated hedge relationships | Derivative assets | Level 1 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative assets | 0 | 0 | |||
At Fair Value | Derivatives in designated hedge relationships | Derivative assets | Level 2 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative assets | 0.5 | 9.6 | |||
At Fair Value | Derivatives in designated hedge relationships | Derivative assets | Level 3 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative assets | 0 | 0 | |||
At Fair Value | Held at fair value through profit or loss | Derivative liabilities | Level 1 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative liabilities | 0 | 0 | |||
At Fair Value | Held at fair value through profit or loss | Derivative liabilities | Level 2 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative liabilities | (6.4) | (6.7) | |||
At Fair Value | Held at fair value through profit or loss | Derivative liabilities | Level 3 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative liabilities | 0 | 0 | |||
At Fair Value | Held at fair value through profit or loss | Payments due to vendors (earnout agreements) | Level 1 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Payments due to vendors (earnout agreements) | 0 | 0 | |||
At Fair Value | Held at fair value through profit or loss | Payments due to vendors (earnout agreements) | Level 2 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Payments due to vendors (earnout agreements) | 0 | 0 | |||
At Fair Value | Held at fair value through profit or loss | Payments due to vendors (earnout agreements) | Level 3 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Payments due to vendors (earnout agreements) | (196.7) | (114.3) | |||
At Fair Value | Held at fair value through profit or loss | Liabilities in respect of put options | Level 1 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Liabilities in respect of put options | 0 | 0 | |||
At Fair Value | Held at fair value through profit or loss | Liabilities in respect of put options | Level 2 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Liabilities in respect of put options | 0 | 0 | |||
At Fair Value | Held at fair value through profit or loss | Liabilities in respect of put options | Level 3 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Liabilities in respect of put options | (391.5) | (110.7) | |||
At Fair Value | Held at fair value through profit or loss | Derivative assets | Level 1 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative assets | 0 | 0 | |||
At Fair Value | Held at fair value through profit or loss | Derivative assets | Level 2 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative assets | 2.5 | 0.2 | |||
At Fair Value | Held at fair value through profit or loss | Derivative assets | Level 3 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative assets | 0 | 0 | |||
At Fair Value | Held at fair value through profit or loss | Other investments | Level 1 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Other investments | 0.4 | 0.1 | |||
At Fair Value | Held at fair value through profit or loss | Other investments | Level 2 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Other investments | 0 | 0 | |||
At Fair Value | Held at fair value through profit or loss | Other investments | Level 3 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Other investments | 227.9 | 263.2 | |||
At Fair Value | Held at fair value through other comprehensive income | Other investments | Level 1 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Other investments | 27.9 | 20.6 | |||
At Fair Value | Held at fair value through other comprehensive income | Other investments | Level 2 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Other investments | 0 | 0 | |||
At Fair Value | Held at fair value through other comprehensive income | Other investments | Level 3 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Other investments | 62.1 | 103.4 | |||
At Fair Value | Payments due to vendors (earnout agreements) | Level 3 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Beginning balance | (114.3) | (243.7) | |||
(Losses)/gains recognised in the income statement | (58.7) | 13.4 | |||
Losses recognised in other comprehensive income | 0 | ||||
Exchange adjustments | 1 | 5.3 | |||
Additions | 81.7 | 4.5 | |||
Reclassification from other investments to interests in associates | 0 | ||||
Cancellations | 0 | 0 | |||
Settlements | 57 | 115.2 | |||
Ending balance | (196.7) | (114.3) | |||
At Fair Value | Liabilities in respect of put options | Liabilities in respect of put options | Level 3 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Beginning balance | (110.7) | (204.5) | |||
(Losses)/gains recognised in the income statement | (40.6) | 12.3 | |||
Losses recognised in other comprehensive income | 0 | 0 | |||
Exchange adjustments | 1.3 | 2.3 | |||
Additions | 247.7 | 4.2 | |||
Disposals | 0 | 0 | |||
Reclassification from other investments to interests in associates | 0 | ||||
Cancellations | 0.8 | 30.5 | |||
Settlements | 5.4 | 52.9 | |||
Ending balance | (391.5) | (110.7) | |||
At Fair Value | Other investments | Other investments | Level 3 | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Other investments | 290 | 366.6 | £ 456.1 | ||
(Losses)/gains recognised in the income statement | (7.7) | 7.9 | |||
Losses recognised in other comprehensive income | (42.8) | (106.1) | |||
Exchange adjustments | 0 | 0 | |||
Additions | 5.9 | 15.9 | |||
Disposals | (32) | (7) | |||
Reclassification from other investments to interests in associates | (0.2) | ||||
Cancellations | 0 | 0 | |||
Settlements | £ 0 | £ 0 | |||
[1] | Figures have been restated as described in the accounting policies. |
Authorised and issued share c_3
Authorised and issued share capital - Summary of Authorized and Issued Share Capital (Details) £ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021GBP (£)shares | Dec. 31, 2020GBP (£)shares | Dec. 31, 2019GBP (£)shares | Dec. 31, 2018GBP (£)shares | ||||
Disclosure of classes of share capital [line items] | |||||||
Issued and fully paid capital, Beginning balance | [1] | £ 129.6 | £ 132.8 | ||||
Share cancellations | (729.3) | (281.2) | £ (47.7) | ||||
Issued and fully paid capital, Ending balance | £ 122.4 | £ 129.6 | [1] | £ 132.8 | [1] | ||
Ordinary shares | |||||||
Disclosure of classes of share capital [line items] | |||||||
Equity ordinary shares, authorised (in shares) | shares | 1,750,000,000 | 1,750,000,000 | 1,750,000,000 | 1,750,000,000 | |||
Nominal value of Authorised shares | £ 175 | £ 175 | £ 175 | £ 175 | |||
Number of shares issued and fully paid, Beginning balance (in shares) | shares | 1,296,080,242 | 1,328,167,813 | 1,332,678,227 | ||||
Exercise of share options (in shares) | shares | 534,800 | 1,000 | 75,625 | ||||
Share cancellations (in shares) | shares | (72,155,492) | (32,088,571) | (4,586,039) | ||||
Number of shares issued and fully paid, Ending balance (in shares) | shares | 1,224,459,550 | 1,296,080,242 | 1,328,167,813 | ||||
Issued and fully paid capital, Beginning balance | £ 129.6 | £ 132.8 | £ 133.3 | ||||
Share cancellations | (7.2) | (3.2) | (0.5) | ||||
Issued and fully paid capital, Ending balance | £ 122.4 | £ 129.6 | £ 132.8 | ||||
[1] | Figures have been restated as described in the accounting policies. |
Authorised and issued share c_4
Authorised and issued share capital - Additional Information (Details) £ / shares in Units, £ in Millions | 12 Months Ended | |||||
Dec. 31, 2021GBP (£)ADRsshares£ / shares | Dec. 31, 2020GBP (£)£ / sharesshares | Dec. 31, 2019GBP (£)£ / sharesshares | Dec. 31, 2021$ / shares | Dec. 31, 2020$ / shares | Dec. 31, 2019$ / shares | |
Disclosure of classes of share capital [line items] | ||||||
Share option granted in Life | 10 | |||||
WSOP | Bottom of Range | ||||||
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 | ||||||
Disclosure of classes of share capital [line items] | ||||||
Vesting period | 3 years | |||||
WWOP | Bottom of Range | ||||||
Disclosure of classes of share capital [line items] | ||||||
Threshold period for employment participation in employee stock ownership plan | 2 years | |||||
Executive Stock Option Plan | ||||||
Disclosure of classes of share capital [line items] | ||||||
Vesting period | 3 years | |||||
Ordinary shares | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of the ordinary shares of the Company held by the ESOP (in shares) | 5,803,641 | 4,863,244 | 9,219,837 | |||
Market value of the ordinary shares of the Company held by the ESOP | £ | £ 65 | £ 38.9 | £ 98.3 | |||
Number of ordinary shares held in treasury (in shares) | 70,489,953 | 70,748,100 | 70,787,730 | |||
Ordinary shares held in Treasury at market value | £ | £ 789.1 | £ 566 | £ 755 | |||
Average share price | £ / shares | £ 9.64 | £ 6.96 | £ 9.39 | |||
Ordinary shares | WSOP | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of ordinary shares under option (in shares) | 12,396,275 | |||||
Ordinary shares | WPP Executive Share Option Scheme | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of ordinary shares under option (in shares) | 6,741 | |||||
Ordinary shares | WPP Worldwide Share Ownership Program | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of ordinary shares under option (in shares) | 1,090,954 | |||||
American depository receipts | ||||||
Disclosure of classes of share capital [line items] | ||||||
Average ADR Price | $ / shares | $ 66.44 | $ 44.56 | $ 59.93 | |||
American depository receipts | WSOP | ||||||
Disclosure of classes of share capital [line items] | ||||||
Unexercised options | ADRs | 1,442,375 | |||||
American depository receipts | WPP Worldwide Share Ownership Program | ||||||
Disclosure of classes of share capital [line items] | ||||||
Unexercised options | ADRs | 191,669 | |||||
Share purchase options | ||||||
Disclosure of classes of share capital [line items] | ||||||
Unrecognised compensation costs related to share options | £ | £ 10.2 | £ 7.2 | ||||
Unrecognised compensation cost related to share options, weighted average period | 21 months | 20 months |
Authorised and issued share c_5
Authorised and issued share capital - Options Granted, WPP Executive Share Option Scheme (Detail) - Ordinary shares | 12 Months Ended | |
Dec. 31, 2021shares£ / shares | Dec. 31, 2020shares | |
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option (in shares) | 21,664,190 | 20,447,140 |
WPP | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option (in shares) | 6,741 | 6,741 |
WPP | Exercise price group 1 | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option (in shares) | 3,696 | |
Exercise price per share (in pound per share) | £ / shares | £ 8.333 | |
Exercise dates | 2015 - 2022 | |
WPP | Exercise price group 2 | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number of ordinary shares under option (in shares) | 3,045 | |
Exercise price per share (in pound 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 (Details) | 12 Months Ended | ||
Dec. 31, 2021ADRsshares£ / shares | Dec. 31, 2021ADRsshares$ / shares | Dec. 31, 2020shares | |
Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 21,664,190 | 21,664,190 | 20,447,140 |
WWOP | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 2,049,299 | 2,049,299 | 2,499,674 |
WWOP | Exercise price group 1 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 69,004 | 69,004 | |
Exercise price per share (in pound per share) | £ / shares | £ 8.458 | ||
Exercise dates | 2015 - 2022 | ||
WWOP | Exercise price group 1 | American depository receipts | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 23,024 | 23,024 | |
Exercise dates | 2015 - 2022 | ||
Exercise price per (in ADR per share) | $ / shares | $ 67.490 | ||
WWOP | Exercise price group 2 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 792,200 | 792,200 | |
Exercise price per share (in pound per share) | £ / shares | £ 13.145 | ||
Exercise dates | 2017 - 2024 | ||
WWOP | Exercise price group 2 | American depository receipts | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 91,660 | 91,660 | |
Exercise dates | 2017 - 2024 | ||
Exercise price per (in ADR per share) | $ / shares | $ 102.670 | ||
WWOP | Exercise price group 3 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 3,625 | 3,625 | |
Exercise price per share (in pound per share) | £ / shares | £ 13.145 | ||
Exercise dates | 2018 - 2024 | ||
WWOP | Exercise price group 3 | American depository receipts | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 76,985 | 76,985 | |
Exercise dates | 2016 - 2023 | ||
Exercise price per (in ADR per share) | $ / shares | $ 110.760 | ||
WWOP | Exercise price group 4 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 225,500 | 225,500 | |
Exercise price per share (in pound per share) | £ / shares | £ 13.505 | ||
Exercise dates | 2016 - 2023 | ||
WWOP | Exercise price group 5 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 625 | 625 | |
Exercise price per share (in pound 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 (Details) | 12 Months Ended | ||
Dec. 31, 2021ADRsshares£ / shares | Dec. 31, 2021ADRsshares$ / shares | Dec. 31, 2020shares | |
Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 21,664,190 | 21,664,190 | 20,447,140 |
WSOP | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 19,608,150 | 19,608,150 | 17,940,725 |
WSOP | American depository receipts | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 1,442,375 | 1,442,375 | |
WSOP | Exercise price group 1 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 11,250 | 11,250 | |
Exercise price per share (in pound per share) | £ / shares | £ 7.344 | ||
Exercise dates | 2023 - 2027 | ||
WSOP | Exercise price group 1 | American depository receipts | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 279,970 | 279,970 | |
Exercise price per (in ADR per share) | $ / shares | $ 48.950 | ||
Exercise dates | 2023 - 2030 | ||
WSOP | Exercise price group 2 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 2,525,625 | 2,525,625 | |
Exercise price per share (in pound per share) | £ / shares | £ 7.344 | ||
Exercise dates | 2023 - 2030 | ||
WSOP | Exercise price group 2 | American depository receipts | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 167,410 | 167,410 | |
Exercise price per (in ADR per share) | $ / shares | $ 53.140 | ||
Exercise dates | 2021 - 2028 | ||
WSOP | Exercise price group 3 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 8,750 | 8,750 | |
Exercise price per share (in pound per share) | £ / shares | £ 8.372 | ||
Exercise dates | 2021 - 2025 | ||
WSOP | Exercise price group 3 | American depository receipts | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 228,630 | 228,630 | |
Exercise price per (in ADR per share) | $ / shares | $ 62.590 | ||
Exercise dates | 2022 - 2029 | ||
WSOP | Exercise price group 4 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 1,256,150 | 1,256,150 | |
Exercise price per share (in pound per share) | £ / shares | £ 8.372 | ||
Exercise dates | 2021 - 2028 | ||
WSOP | Exercise price group 4 | American depository receipts | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 378,030 | 378,030 | |
Exercise price per (in ADR per share) | $ / shares | $ 73.780 | ||
Exercise dates | 2023 - 2030 | ||
WSOP | Exercise price group 5 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 10,375 | 10,375 | |
Exercise price per share (in pound per share) | £ / shares | £ 9.600 | ||
Exercise dates | 2022 - 2026 | ||
WSOP | Exercise price group 5 | American depository receipts | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 154,820 | 154,820 | |
Exercise price per (in ADR per share) | $ / shares | $ 88.260 | ||
Exercise dates | 2020 - 2027 | ||
WSOP | Exercise price group 6 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 1,947,050 | 1,947,050 | |
Exercise price per share (in pound per share) | £ / shares | £ 9.600 | ||
Exercise dates | 2022 - 2029 | ||
WSOP | Exercise price group 6 | American depository receipts | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 130,170 | 130,170 | |
Exercise price per (in ADR per share) | $ / shares | $ 105.490 | ||
Exercise dates | 2020 - 2026 | ||
WSOP | Exercise price group 7 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 3,258,125 | 3,258,125 | |
Exercise price per share (in pound per share) | £ / shares | £ 11.065 | ||
Exercise dates | 2023 - 2030 | ||
WSOP | Exercise price group 7 | American depository receipts | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ADRs under option | ADRs | 103,345 | 103,345 | |
Exercise price per (in ADR per share) | $ / shares | $ 115.940 | ||
Exercise dates | 2018 - 2025 | ||
WSOP | Exercise price group 8 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 9,250 | 9,250 | |
Exercise price per share (in pound per share) | £ / shares | £ 13.085 | ||
Exercise dates | 2020 - 2024 | ||
WSOP | Exercise price group 9 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 1,329,975 | 1,329,975 | |
Exercise price per share (in pound per share) | £ / shares | £ 13.085 | ||
Exercise dates | 2020 - 2027 | ||
WSOP | Exercise price group 10 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 34,250 | 34,250 | |
Exercise price per share (in pound per share) | £ / shares | £ 15.150 | ||
Exercise dates | 2018 - 2022 | ||
WSOP | Exercise price 11 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 917,975 | 917,975 | |
Exercise price per share (in pound per share) | £ / shares | £ 15.150 | ||
Exercise dates | 2018 - 2025 | ||
WSOP | Exercise price group 12 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 4,500 | 4,500 | |
Exercise price per share (in pound per share) | £ / shares | £ 15.150 | ||
Exercise dates | 2019 - 2025 | ||
WSOP | Exercise price group 13 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 7,500 | 7,500 | |
Exercise price per share (in pound per share) | £ / shares | £ 17.055 | ||
Exercise dates | 2019 - 2023 | ||
WSOP | Exercise price 14 | Ordinary shares | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of ordinary shares under option (in shares) | 1,075,500 | 1,075,500 | |
Exercise price per share (in pound 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 (Details) | 12 Months Ended | |||||
Dec. 31, 2021shares£ / shares | Dec. 31, 2021shares$ / shares£ / shares | Dec. 31, 2020shares£ / shares | Dec. 31, 2020shares$ / shares | Dec. 31, 2019shares | Dec. 31, 2021shares$ / shares | |
Ordinary shares | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Options granted, Beginning balance (in shares) | 20,447,140 | 20,447,140 | ||||
Options granted, Granted (in shares) | 5,155,800 | 5,155,800 | ||||
Exercise of share options (in shares) | (534,800) | (534,800) | (1,000) | (1,000) | (75,625) | |
Options granted, Forfeited (in shares) | (3,403,950) | (3,403,950) | ||||
Options granted, Ending balance (in shares) | 21,664,190 | 21,664,190 | 20,447,140 | 20,447,140 | ||
Options granted, Exercisable (in shares) | 14,478,390 | 14,478,390 | 14,478,390 | |||
Ordinary shares | WPP | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Options granted, Beginning balance (in shares) | 6,741 | 6,741 | ||||
Options granted, Granted (in shares) | 0 | 0 | ||||
Exercise of share options (in shares) | 0 | 0 | ||||
Options granted, Forfeited (in shares) | 0 | 0 | ||||
Options granted, Ending balance (in shares) | 6,741 | 6,741 | 6,741 | 6,741 | ||
Options granted, Exercisable (in shares) | 6,741 | 6,741 | 6,741 | |||
Weighted-average exercise price for options, 1 January (in pound per share) | £ / shares | £ 9.355 | |||||
Weighted-average exercise price for options, Granted (in pound per share) | £ / shares | 0 | |||||
Weighted-average exercise price for options, Exercised (in pound per share) | £ / shares | 0 | |||||
Weighted-average exercise price for options, Forfeited (in pound per share) | £ / shares | 0 | |||||
Weighted-average exercise price for options, Outstanding 31 December (in pound per share) | £ / shares | 9.355 | £ 9.355 | ||||
Weighted-average exercise price for options, Exercisable (in pound per share) | £ / shares | £ 9.355 | £ 9.355 | ||||
Ordinary shares | WWOP | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Options granted, Beginning balance (in shares) | 2,499,674 | 2,499,674 | ||||
Options granted, Granted (in shares) | 0 | 0 | ||||
Exercise of share options (in shares) | (54,050) | (54,050) | ||||
Options granted, Forfeited (in shares) | (396,325) | (396,325) | ||||
Options granted, Ending balance (in shares) | 2,049,299 | 2,049,299 | 2,499,674 | 2,499,674 | ||
Options granted, Exercisable (in shares) | 184,124 | 184,124 | 184,124 | |||
Weighted-average exercise price for options, 1 January (in pound per share) | £ / shares | £ 12.631 | |||||
Weighted-average exercise price for options, Granted (in pound per share) | £ / shares | 0 | |||||
Weighted-average exercise price for options, Exercised (in pound per share) | £ / shares | 7.304 | |||||
Weighted-average exercise price for options, Forfeited (in pound per share) | £ / shares | 11.803 | |||||
Weighted-average exercise price for options, Outstanding 31 December (in pound per share) | £ / shares | 12.923 | £ 12.631 | ||||
Weighted-average exercise price for options, Exercisable (in pound per share) | £ / shares | £ 8.458 | £ 8.458 | ||||
Ordinary shares | WSOP | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Options granted, Beginning balance (in shares) | 17,940,725 | 17,940,725 | ||||
Options granted, Granted (in shares) | 5,155,800 | 5,155,800 | ||||
Exercise of share options (in shares) | (480,750) | (480,750) | ||||
Options granted, Forfeited (in shares) | (3,007,625) | (3,007,625) | ||||
Options granted, Ending balance (in shares) | 19,608,150 | 19,608,150 | 17,940,725 | 17,940,725 | ||
Options granted, Exercisable (in shares) | 14,287,525 | 14,287,525 | 14,287,525 | |||
Weighted-average exercise price for options, 1 January (in pound per share) | £ / shares | £ 10.596 | |||||
Weighted-average exercise price for options, Granted (in pound per share) | £ / shares | 11.065 | |||||
Weighted-average exercise price for options, Exercised (in pound per share) | £ / shares | 8.372 | |||||
Weighted-average exercise price for options, Forfeited (in pound per share) | £ / shares | 10.116 | |||||
Weighted-average exercise price for options, Outstanding 31 December (in pound per share) | £ / shares | 10.854 | £ 10.596 | ||||
Weighted-average exercise price for options, Exercisable (in pound per share) | £ / shares | £ 9.322 | £ 9.322 | ||||
American depository receipts | WWOP | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Weighted-average exercise price for options, 1 January (in dollars per share) | $ / shares | £ 98.509 | |||||
Weighted-average exercise price for options, Granted (in dollars per share) | $ / shares | 0 | |||||
Weighted-average exercise price for options, Granted (in dollars per share) | $ / shares | 49.313 | |||||
Weighted-average exercise price for options, Forfeited (in dollars per share) | $ / shares | 89.225 | |||||
Weighted-average exercise price for options, Outstanding 31 December (in dollars per share) | $ / shares | 101.693 | $ 98.509 | ||||
Weighted-average exercise price for options, Exercisable (in dollars per share) | $ / shares | $ 67.490 | |||||
American depository receipts | WSOP | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Weighted-average exercise price for options, 1 January (in dollars per share) | $ / shares | 70.363 | |||||
Weighted-average exercise price for options, Granted (in dollars per share) | $ / shares | 73.780 | |||||
Weighted-average exercise price for options, Granted (in dollars per share) | $ / shares | 53.248 | |||||
Weighted-average exercise price for options, Forfeited (in dollars per share) | $ / shares | 66.257 | |||||
Weighted-average exercise price for options, Outstanding 31 December (in dollars per share) | $ / shares | £ 72.228 | $ 70.363 | ||||
Weighted-average exercise price for options, Exercisable (in dollars per share) | $ / shares | $ 61.479 |
Authorised and issued share c_9
Authorised and issued share capital - Range of Exercise Prices of Options (Details) - 12 months ended Dec. 31, 2021 | £ / shares | $ / shares |
Ordinary shares | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Weighted average contractual life (Months) | 86 months | |
American depository receipts | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Weighted average contractual life (Months) | 83 months | |
Bottom of Range | Ordinary shares | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price (in pound per share) | £ / shares | £ 7.344 | |
Bottom of Range | American depository receipts | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price (in dollars per share) | $ / shares | $ 48.950 | |
Top of Range | Ordinary shares | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price (in pound per share) | £ / shares | 17.055 | |
Top of Range | American depository receipts | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price (in dollars per share) | $ / shares | 115.940 | |
Weighted average | Ordinary shares | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price (in pound per share) | £ / shares | £ 11.021 | |
Weighted average | American depository receipts | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise price (in dollars per share) | $ / shares | $ 75.684 |
Authorised and issued share _10
Authorised and issued share capital - Weighted Average Fair Value of Options Granted and Weighted Average Assumptions (Details) | 12 Months Ended | |||||
Dec. 31, 2021£ / shares | Dec. 31, 2021$ / shares | Dec. 31, 2020£ / shares | Dec. 31, 2020$ / shares | Dec. 31, 2019£ / shares | Dec. 31, 2019$ / shares | |
Weighted average assumptions | ||||||
Expected life (months) | 48 months | 48 months | 48 months | 48 months | 48 months | 48 months |
Expected volatility | 34.00% | 34.00% | 34.00% | 34.00% | 24.00% | 24.00% |
Dividend yield | 3.40% | 3.40% | 4.20% | 4.20% | 3.80% | 3.80% |
United Kingdom | ||||||
Weighted average assumptions | ||||||
Risk-free interest rate | 0.63% | 0.63% | (0.02%) | (0.02%) | 0.57% | 0.57% |
United Kingdom | American depository receipts | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Fair value of options | £ / shares | £ 2.200 | £ 1.280 | £ 1.170 | |||
United States | ||||||
Weighted average assumptions | ||||||
Risk-free interest rate | 1.16% | 1.16% | 0.31% | 0.31% | 1.61% | 1.61% |
United States | American depository receipts | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line items] | ||||||
Fair value of options | $ / shares | $ 14.89 | $ 8.95 | $ 8.49 |
Other reserves - Summary of Oth
Other reserves - Summary of Other Reserves (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | £ 5,050.1 | [1] | £ 8,297.3 | [1] | £ 9,576.9 | ||
Exchange adjustments recycled to the income statement on disposal of discontinued operations | 0 | (20.6) | [2] | (284) | [2] | ||
Share cancellations | (729.3) | (281.2) | (47.7) | ||||
Recognition and remeasurement of financial instruments | (241.6) | [3] | 76.9 | 23.7 | |||
Share of other comprehensive income/(loss) of associate undertakings | 13.5 | (61.5) | [2] | 0 | [2] | ||
Share purchases – close period commitments | (211.7) | [4] | 252.3 | [5] | (252.3) | [5] | |
Ending balance | 4,069 | 5,050.1 | [1] | 8,297.3 | [1] | ||
Gains (losses) on exchange differences on translation of foreign operations, net of tax | (105) | 81.3 | (625.1) | ||||
Gains (losses) on hedges of net investments in foreign operations, net of tax | 45.5 | 9.7 | |||||
Gains (losses) on cash flow hedges, net of tax | (38) | (5.9) | |||||
Previously stated | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | 9,683.2 | ||||||
Increase (decrease) due to corrections of prior period errors | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | [6] | (106.3) | |||||
Other reserves | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | 191.2 | (174.7) | 957.6 | ||||
Exchange adjustments recycled to the income statement on disposal of discontinued operations | (20.6) | (284) | |||||
Share cancellations | 7.2 | 3.2 | 0.5 | ||||
Recognition and remeasurement of financial instruments | (242.7) | [3] | 103.5 | 10.6 | |||
Share of other comprehensive income/(loss) of associate undertakings | 7.3 | (61.5) | |||||
Share purchases – close period commitments | (211.7) | [4] | 252.3 | [5] | (252.3) | [5] | |
Ending balance | (335.9) | 191.2 | (174.7) | ||||
Gains (losses) on exchange differences on translation of foreign operations, net of tax | (94.7) | 85.2 | (607.1) | ||||
Gains (losses) on hedges of net investments in foreign operations, net of tax | 45.5 | 9.7 | |||||
Gains (losses) on cash flow hedges, net of tax | (38) | (5.9) | |||||
Other reserves | Previously stated | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | 962.4 | ||||||
Other reserves | Increase (decrease) due to corrections of prior period errors | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | [6] | (4.8) | |||||
Capital redemption reserve | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | 6.4 | 3.2 | 2.7 | ||||
Share cancellations | 7.2 | 3.2 | 0.5 | ||||
Ending balance | 13.6 | 6.4 | 3.2 | ||||
Capital redemption reserve | Previously stated | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | 2.7 | ||||||
Equity reserve | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | (122.3) | (478.1) | (236.4) | ||||
Recognition and remeasurement of financial instruments | (242.7) | 103.5 | 10.6 | ||||
Share purchases – close period commitments | (211.7) | 252.3 | (252.3) | ||||
Ending balance | (576.7) | (122.3) | (478.1) | ||||
Equity reserve | Previously stated | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | (236.4) | ||||||
Hedging reserve | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | (5.9) | 0 | 0 | ||||
Ending balance | (43.9) | (5.9) | 0 | ||||
Gains (losses) on cash flow hedges, net of tax | (38) | (5.9) | |||||
Hedging reserve | Previously stated | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | 0 | ||||||
Translation reserve | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | 313 | 300.2 | 1,191.3 | ||||
Exchange adjustments recycled to the income statement on disposal of discontinued operations | (20.6) | (284) | |||||
Share of other comprehensive income/(loss) of associate undertakings | 7.3 | (61.5) | |||||
Ending balance | 271.1 | 313 | 300.2 | ||||
Gains (losses) on exchange differences on translation of foreign operations, net of tax | (94.7) | 85.2 | (607.1) | ||||
Gains (losses) on hedges of net investments in foreign operations, net of tax | £ 45.5 | £ 9.7 | |||||
Translation reserve | Previously stated | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | 1,196.1 | ||||||
Translation reserve | Increase (decrease) due to corrections of prior period errors | |||||||
Disclosure of reserves within equity [line items] | |||||||
Beginning balance | £ (4.8) | ||||||
[1] | Figures have been restated as described in the accounting policies. | ||||||
[2] | Figures have been restated as described in the accounting policies. | ||||||
[3] | During the year, the Group merged Finsbury Glover Hering and Sard Verbinnen & Co to form a leading global communications firm. As a part of this transaction, certain management acquired shares in the Company and a put option was granted which allows the equity partners to require the Group to purchase these shares. This resulted in a movement in other reserves in the year of £219.6 million. | ||||||
[4] | During 2021, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 16 December 2021 and ending on 18 February 2022, in accordance with UK listing rules. The commitment resulting from this agreement constituted a liability at 31 December 2021 and was recognised as a movement in other reserves in the year ended 31 December 2021. | ||||||
[5] | 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 constituted a liability at 31 December 2019 and was recognised as a movement in other reserves in the year ended 31 December 2019. As the close period ended on 27 February 2020 the movement in other reserves has been reversed in the year ended 31 December 2020. | ||||||
[6] | Figures have been restated as described in the accounting policies. |
Other reserves - Translation Re
Other reserves - Translation Reserve Comprises (Details) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of reserves within equity [line items] | ||||||
Total equity | £ 4,069 | £ 5,050.1 | [1] | £ 8,297.3 | [1] | £ 9,576.9 |
Translation reserve | ||||||
Disclosure of reserves within equity [line items] | ||||||
Total equity | 271.1 | 313 | 300.2 | £ 1,191.3 | ||
Balance relating to continuing net investment hedges | ||||||
Disclosure of reserves within equity [line items] | ||||||
Total equity | (2.3) | 9.7 | 0 | |||
Balance relating to discontinued net investment hedges | ||||||
Disclosure of reserves within equity [line items] | ||||||
Total equity | (85) | (142.5) | (142.5) | |||
Balance related to retranslation of foreign currency net investments | ||||||
Disclosure of reserves within equity [line items] | ||||||
Total equity | £ 358.4 | £ 445.8 | £ 442.7 | |||
[1] | Figures have been restated as described in the accounting policies. |
Acquisitions - Book Values of I
Acquisitions - Book Values of Identifiable Assets and Liabilities Acquired and Their Fair Value (Details) £ in Millions | Dec. 31, 2021GBP (£) |
Book value at acquisition £m | |
Disclosure of detailed information about business combination [line items] | |
Intangible assets | £ 0 |
Right-of-use assets | 36.6 |
Property, plant and equipment | 4 |
Cash and cash equivalents | (2.3) |
Trade receivables due within one year | 40 |
Other current assets | 5.9 |
Total assets | 84.2 |
Current liabilities | (28.5) |
Trade and other payables due after one year | (2.3) |
Deferred tax liabilities | 0 |
Long-term lease liabilities | (34.2) |
Total liabilities | (65) |
Net assets | 19.2 |
Fair value adjustments £m | |
Disclosure of detailed information about business combination [line items] | |
Intangible assets | 97.7 |
Right-of-use assets | (3.4) |
Property, plant and equipment | 0 |
Cash and cash equivalents | 0 |
Trade receivables due within one year | 0 |
Other current assets | 0.9 |
Total assets | 95.2 |
Current liabilities | (0.3) |
Trade and other payables due after one year | (5.8) |
Deferred tax liabilities | (22.5) |
Long-term lease liabilities | 0 |
Total liabilities | (28.6) |
Net assets | 66.6 |
Fair value to Group £m | |
Disclosure of detailed information about business combination [line items] | |
Intangible assets | 97.7 |
Right-of-use assets | 33.2 |
Property, plant and equipment | 4 |
Cash and cash equivalents | (2.3) |
Trade receivables due within one year | 40 |
Other current assets | 6.8 |
Total assets | 179.4 |
Current liabilities | (28.8) |
Trade and other payables due after one year | (8.1) |
Deferred tax liabilities | (22.5) |
Long-term lease liabilities | (34.2) |
Total liabilities | (93.6) |
Net assets | 85.8 |
Non-controlling interests | (3) |
Goodwill | 331.9 |
Consideration | 414.7 |
Consideration satisfied by: | |
Cash | 225.9 |
Equity instruments of subsidiary company | 110.8 |
Payments due to vendors | £ 78 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) £ in Millions | 12 Months Ended |
Dec. 31, 2021GBP (£) | |
Disclosure of detailed information about business combination [line items] | |
Goodwill that is expected to be deductible for tax purposes | £ 83.9 |
Subsidiary Acquired In Acquisition | |
Disclosure of detailed information about business combination [line items] | |
Proportion of ownership interest in subsidiary | 16.50% |
FGH SVC Holdco Inc | |
Disclosure of detailed information about business combination [line items] | |
Proportion of ownership interest in subsidiary | 57.90% |
Related party transactions - Ad
Related party transactions - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | ||
Disclosure of transactions between related parties [line items] | |||||
Revenue | £ 12,801.1 | £ 12,002.8 | [1] | £ 13,234.1 | |
Investments in Kantar | £ 92.9 | ||||
Number of shares outstanding | 0.40 | ||||
USA | Compas | |||||
Disclosure of transactions between related parties [line items] | |||||
Revenue | £ 117.2 | £ 90.6 | |||
[1] | Figures have been restated as described in the accounting policies. |
Related party transactions - Su
Related party transactions - Summary of related party transaction outstanding (Details) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Amounts owed by related parties | ||
Amounts receivable, related party transactions | £ 76 | £ 66.9 |
Amounts owed to related parties | ||
Amounts payable, related party transactions | (57.6) | (41.6) |
Kantar | ||
Amounts owed by related parties | ||
Amounts receivable, related party transactions | 30.3 | 39 |
Amounts owed to related parties | ||
Amounts payable, related party transactions | (6.2) | (5.6) |
Other | ||
Amounts owed by related parties | ||
Amounts receivable, related party transactions | 45.7 | 27.9 |
Amounts owed to related parties | ||
Amounts payable, related party transactions | £ (51.4) | £ (36) |
Reconciliation of operating p_3
Reconciliation of operating profit/(loss) to headline operating profit - Summary of Reconciliation of Operating Profit to Headline Operating Profit (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Statement [Line Items] | |||||
Operating profit | £ 1,229 | £ (2,278.1) | [1] | £ 1,295.9 | [1] |
Goodwill impairment | 1.8 | 2,822.9 | 47.7 | ||
Losses on disposals of investments | 10.6 | ||||
Losses/(gains) on disposal of investments and subsidiaries | (40.4) | ||||
Gains on remeasurement of equity interests arising from a change in scope of ownership | 0 | 0.6 | 0.4 | ||
Investment and other impairment (reversals)/charges | 42.4 | (296.2) | (7.5) | ||
Gain on sale of freehold property in New York | 0 | 0 | 7.9 | ||
Restructuring costs in relation to Covid-19 | 29.9 | 232.5 | 0 | ||
Headline operating profit | 1,493.5 | 1,260.5 | 1,560.6 | ||
Continuing operations | |||||
Statement [Line Items] | |||||
Operating profit | 1,229 | (2,278.1) | 1,295.9 | ||
Amortisation and impairment of acquired intangible assets | 97.8 | 89.1 | 121.5 | ||
Goodwill impairment | 1.8 | 2,822.9 | 47.7 | ||
Losses on disposals of investments | (10.6) | ||||
Losses/(gains) on disposal of investments and subsidiaries | (7.8) | (40.4) | |||
Gains on remeasurement of equity interests arising from a change in scope of ownership | 0 | (0.6) | (0.4) | ||
Investment and other impairment (reversals)/charges | (42.4) | 296.2 | 7.5 | ||
Gain on sale of freehold property in New York | 0 | 0 | (7.9) | ||
Restructuring and transformation costs | 145.5 | 80.7 | 153.5 | ||
Restructuring costs in relation to Covid-19 | 29.9 | 232.5 | 0 | ||
Headline operating profit | £ 1,493.5 | £ 1,260.5 | £ 1,560.6 | ||
[1] | Figures have been restated as described in the accounting policies. |
Events after reporting period (
Events after reporting period (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Russia | |
Disclosure of non-adjusting events after reporting period [line items] | |
Percentage of entity's revenue | 0.80% |
Uncategorized Items - wpp-20211
Label | Element | Value |
Continuing Operation [Member] | ||
Gains and losses on litigation settlements | wpp_GainsAndLossesOnLitigationSettlements | £ 21,300,000 |
Gains and losses on litigation settlements | wpp_GainsAndLossesOnLitigationSettlements | (16,800,000) |
Gains and losses on litigation settlements | wpp_GainsAndLossesOnLitigationSettlements | 25,600,000 |
Beginning of the year [Member] | ||
Cash and cash equivalents if different from statement of financial position | ifrs-full_CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition | £ 2,201,200,000 |