UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 6-K
____________________
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the Month of April 2021
Commission File Number: 001-38303
______________________
WPP plc
(Translation of registrant's name into English)
________________________
Sea Containers, 18 Upper Ground
London, United Kingdom SE1 9GL
(Address of principal executive offices)
_________________________
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
Form
20-F X Form 40-F
___
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1): ___
Note: Regulation S-T Rule 101(b)(1) only permits the
submission in paper of a Form 6-K if submitted solely to provide an
attached annual report to security holders.
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(7): ___
Note: Regulation S-T Rule 101(b)(7) only permits the
submission in paper of a Form 6-K if submitted to furnish a report
or other document that the registrant foreign private issuer must
furnish and make public under the laws of the jurisdiction in which
the registrant is incorporated, domiciled or legally organized (the
registrant’s “home country”), or under the rules
of the home country exchange on which the registrant’s
securities are traded, as long as the report or other document is
not a press release, is not required to be and has not been
distributed to the registrant’s security holders, and, if
discussing a material event, has already been the subject of a Form
6-K submission or other Commission filing on EDGAR.
Forward-Looking Statements
In
connection with the provisions of the Private Securities Litigation
Reform Act of 1995 (the “Reform Act”), WPP plc and its
subsidiaries (the “Company”) may include
forward-looking statements (as defined in the Reform Act) in oral
or written public statements issued by or on behalf of the Company.
These forward-looking statements may include, among other things,
plans, objectives, projections and anticipated future economic
performance based on assumptions and the like that are subject to
risks and uncertainties. As such, actual results or outcomes may
differ materially from those discussed in the forward-looking
statements. Important factors that may cause actual results to
differ include but are not limited to: the unanticipated loss of a
material client or key personnel, delays or reductions in client
advertising budgets, shifts in industry rates of compensation,
regulatory compliance costs or litigation, natural disasters or
acts of terrorism, the Company’s exposure to changes in the
values of major currencies other than the UK pound sterling
(because a substantial portion of its revenues are derived and
costs incurred outside of the United Kingdom) and the overall level
of economic activity in the Company’s major markets (which
varies depending on, among other things, regional, national and
international political and economic conditions and government
regulations in the world’s advertising markets). In addition,
you should consider the risks described in Item 3D, captioned
“Risk Factors” in the Company’s Form 20-F for the
year ended 31 December 2019, which could also cause actual results
to differ from forward-looking information. In light of these and
other uncertainties, the forward-looking statements included in the
oral or written public statements should not be regarded as a
representation by the Company that the Company’s plans and
objectives will be achieved.
The
Company undertakes no obligation to update or revise any such
forward-looking statements, whether as a result of new information,
future events or otherwise.
EXHIBIT INDEX
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Exhibit
No.
|
Description
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|
1
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First Quarter Trading Update dated 28 April 2021, prepared by WPP
plc.
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WPP
First Quarter Trading Update
Strong start to the year. Return to like-for-like growth in all
business segments and most major markets. 2021 guidance
reiterated.
|
|
£ million
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+/(-)% reported[1]
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+/(-)% LFL[2]
|
|
First Quarter
|
|
|
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Revenue
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2,897
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1.8
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6.3
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|
Revenue less pass-through costs
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2,334
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(1.4)
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3.1
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■ Q1 revenue +1.8%; LFL revenue
+6.3%
■ Q1 LFL revenue less pass-through costs
+3.1%
■ Top five markets Q1 LFL revenue less pass-through
costs: US +0.7%; UK +3.9%; Germany +2.5%; Greater China +18.4%;
India -0.5%
■ LFL revenue less pass-through costs by business
sector: Global Integrated Agencies +2.8% (GroupM +5.8%), Public
Relations +2.0%, Specialist Agencies +7.5%
■ $1.3 billion net new business
won
■ Continued progress against strategic plan:
technology/commerce acquisitions, buy-in of WPP AUNZ minority,
launch of Choreograph, share buyback ongoing
■ 2021 guidance reiterated
Mark Read, Chief Executive Officer of WPP, said:
"WPP has had a strong start to the year with a return to growth in
all business lines and most major markets. Our strengths in
ecommerce, digital media and technology, combined with our ongoing
investment in creative talent, are resonating with clients as their
markets recover and they seek to transform their offer for future
growth. This week's launch of our new global data company,
Choreograph, adds a further dimension to the WPP proposition as
clients look for trusted partners to help them navigate a
fast-changing data landscape.
"We have already secured a number of important assignments in 2021,
including Absolut (global creative), JP Morgan Chase (global
media), Salesforce (technology operations) and Sam's Club (US
creative). We were also delighted to renew our valued partnership
with the US Navy.
"Last week we made an industry-leading commitment to target net
zero carbon emissions across our entire supply chain by 2030,
putting our $60 billion of media billings behind this initiative.
We will work with our clients, media owners and the industry on
this collaborative effort.
"The roll-out of vaccines is improving visibility in many markets,
although there is inevitably uncertainty over the pace of recovery.
We are making good progress on our transformation programme, which
will deliver significant efficiencies to reinvest in growth, and
are confident of delivering our growth and profitability guidance
for 2021."
For further information:
|
Investors and analysts
Peregrine
Riviere
Caitlin
Holt
Fran
Butera (US)
|
+44
7909 907193
+44
7392 280178
+1 914
484 1198
|
|
|
|
|
Media
Chris
Wade
Richard
Oldworth,
Buchanan
Communications
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+44 20
7282 4600
+44
7710 130 634
+44 20
7466 5000
|
wpp.com/investors
Overview
During the first quarter, client spend on marketing services showed
increasing resilience despite
further waves of the coronavirus in some markets, and we achieved
like-for-like growth in 15 of our top 20 countries. The vast
majority of our people are still working from home, but continue to
deliver an outstanding service for clients despite the challenges
faced.
Revenue in the first quarter was up 1.8% at £2.9 billion. On a
constant currency basis, revenue was up 6.0% year-on-year. Net
changes from acquisitions and disposals had a negative impact of
0.3% on growth, leading to a like-for-like performance, excluding
the impact of currency and acquisitions, of 6.3%.
Revenue less pass-through costs in the first quarter was down 1.4%
year-on-year to £2.3 billion, and up 2.9% on a constant
currency basis. Excluding the impact of acquisitions and disposals,
like-for-like growth was 3.1%. All regions and business segments
witnessed an improving trend over the fourth quarter of
2020.
Regional review
Revenue analysis
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£
million
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Q1 2021
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Q1
2020
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+/(-) %
reported
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+/(-) % LFL
|
|
N. America
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1,063
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1,102
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(3.5)
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3.9
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United Kingdom
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434
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411
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5.6
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5.7
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W. Cont Europe
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612
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561
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9.0
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7.4
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AP, LA, AME, CEE[3]
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788
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773
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1.9
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9.1
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Total Group
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2,897
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2,847
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1.8
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6.3
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Revenue less pass-through costs analysis
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£
million
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Q1 2021
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Q1
2020
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+/(-) %
reported
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+/(-) % LFL
|
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N. America
|
886
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938
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(5.6)
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1.6
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United Kingdom
|
321
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313
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2.4
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3.9
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W. Cont Europe
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492
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467
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5.3
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3.7
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AP, LA, AME, CEE
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635
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648
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(1.9)
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4.7
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Total Group
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2,334
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2,366
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(1.4)
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3.1
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North America saw
like-for-like revenue less pass-through costs up 1.6%. The US
returned to growth, with VMLY&R as the best performer. Canada
grew strongly, on the back of new business
wins.
In the United
Kingdom, like-for-like
revenue less pass-through costs was up 3.9%, a significant
improvement on 2020's full-year performance. GroupM, VMLY&R and
AKQA Group all performed well, growing double digits
year-on-year.
Western Continental Europe like-for-like revenue less pass-through costs grew
by 3.7%. Italy, Germany, the Netherlands and Denmark all grew in
the first quarter, while France and Spain faced relatively strong
comparative periods.
Asia Pacific, Latin America, Africa & the Middle East and
Central & Eastern Europe like-for-like revenue less pass-through
costs was up 4.7%. There was strong growth in Latin America and
Eastern Europe, while the Middle East and Africa were down
year-on-year. In Asia Pacific, China recovered very strongly,
driven mainly by GroupM, after the significant impact of COVID-19
in the comparative period.
Business sector review
During 2020, we announced the intention to combine Grey and AKQA
into AKQA Group, and 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. 2020 comparable revenue and revenue
less pass-through costs figures have been adjusted by a total of
£246 million and £225 million respectively to reflect
this change.
Revenue analysis
|
£
million
|
Q1 2021
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Q1
2020
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+/(-) %
reported
|
+/(-) % LFL
|
|
Global
Integrated Agencies
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2,435
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2,400
|
1.5
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6.1
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|
Public
Relations
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214
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223
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(4.0)
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1.0
|
|
Specialist
Agencies
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248
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224
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10.5
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12.9
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Total Group
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2,897
|
2,847
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1.8
|
6.3
|
Revenue less pass-through costs analysis
|
£
million
|
Q1 2021
|
Q1
2020
|
+/(-) %
reported
|
+/(-) % LFL
|
|
Global
Integrated Agencies
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1,934
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1,970
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(1.8)
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2.8
|
|
Public
Relations
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206
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212
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(3.0)
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2.0
|
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Specialist
Agencies
|
194
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184
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5.3
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7.5
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Total Group
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2,334
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2,366
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(1.4)
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3.1
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Global Integrated Agencies like-for-like revenue less pass-through
costs was up 2.8%. VMLY&R was the best performer, continuing to
demonstrate improving business momentum. GroupM recovered strongly,
with like-for-like revenue less pass-through costs up 5.8%.
Wunderman Thompson's performance significantly improved
quarter-on-quarter, returning to growth in the first quarter of the
year. Of the other integrated agencies, Ogilvy and AKQA Group
showed an improved performance compared with the fourth quarter of
2020, but were still down year-on-year.
Public Relations like-for-like revenue less pass-through
costs was up 2.0%. Specialist Public Relations, driven by Finsbury
Glover Hering, and H+K both saw growth in the first
quarter.
Specialist Agencies, with
like-for-like revenue less pass-through costs up 7.5%, was the best
performing sector. All of our main agencies saw improved
performance, with our Brand Consulting businesses, Landor,
Superunion and DesignBridge, growing year-on-year. CMI Media, our
healthcare media business, saw strong growth year-on-year off the
back of new client wins.
Balance sheet highlights
Average net debt in the first three months of 2021 was £1.1
billion, compared to £2.2 billion in the first quarter of
2020, at 2021 exchange rates, a decrease of £1.1 billion. Net
debt at 31 March 2021 was £1.4 billion, compared to £0.7
billion on 31 December 2020, at 2021 exchange rates, an increase of
£0.7 billion, driven largely by seasonal net working capital
movements. We spent £83 million on share purchases in the
first quarter, of which £65 million related to the Kantar
share buyback.
Progress on strategic plan
During the first quarter, we continued to make good progress on our
plans to accelerate growth. We announced the acquisitions of DTI, a
digital innovation and software engineering business in Brazil, and
NN4M, a leading mobile commerce partner for global brands. In
addition, our 40% associate Kantar announced the acquisition of
Numerator, a technology-driven consumer and market intelligence
company.
We have also made further structural and organisational changes
which simplify WPP and improve the way we go to market and serve
clients. Yesterday, we announced the creation of Choreograph, a new
global data company, bringing together the specialist data units of
GroupM and Wunderman Thompson into a single company with global
reach, accessible to all WPP clients and companies. In addition, we
have recently combined separate operations into a single brand
research and analytics platform under BAV, creating the leading
source of brand analytics on over 60,000 brands worldwide. This
will enable us to better integrate brand data into our data
analytics offer across WPP companies.
Finally, we expect to complete the transaction to take 100%
ownership of WPP AUNZ in May 2021, further simplifying the group
structure.
Outlook
Like-for-like revenue less pass-through costs in the first quarter
has been strong and we continue to exercise tight cost control.
While these are encouraging trends, there remains continued
uncertainty across a number of our markets. We reiterate our
guidance for 2021:
■ Organic growth (defined as like-for-like revenue
less pass-through costs growth) of mid-single-digits
%
■ Headline operating margin in the range of
13.5-14.0%
■ Capex £450-500 million, and a net working
capital outflow of £200-300 million
As indicated at our preliminary results in March 2021, our current
projections for foreign exchange movements imply a drag of
approximately 4-5 percentage points to reported revenue less
pass-through costs from the strength of sterling year-on-year. This
would also have a small impact on headline operating margin, as a
result of our higher weighting of sterling costs.
Cautionary statement regarding forward-looking
statements
This document contains statements that are, or may be deemed to be,
"forward-looking statements". Forward-looking statements give the
Group's current expectations or forecasts of future events. An
investor can identify these statements by the fact that they do not
relate strictly to historical or current facts. They use words such
as 'anticipate', 'estimate', 'expect', 'intend', 'will', 'project',
'plan', 'believe', 'target' and other words and terms of similar
meaning in connection with any discussion of future operating or
financial performance.
These forward-looking statements may include, among other things,
plans, objectives, projections and anticipated future economic
performance based on assumptions and the like that are subject to
risks and uncertainties. As such, actual results or outcomes may
differ materially from those discussed in the forward-looking
statements. Important factors which may cause actual results to
differ include but are not limited to: the unanticipated loss of a
material client or key personnel, delays or reductions in client
advertising budgets, shifts in industry rates of compensation,
regulatory compliance costs or litigation, natural disasters or
acts of terrorism, the Company's exposure to changes in the values
of other major currencies (because a substantial portion of its
revenues are derived and costs incurred outside of the UK) and the
overall level of economic activity in the Company's major markets
(which varies depending on, among other things, regional, national
and international political and economic conditions and government
regulations in the world's advertising markets). In addition, you
should consider the risks described under Item 3D 'Risk Factors' in
the Group's Annual Report on Form 20-F/A for 2019 and any impacts
of the COVID-19 pandemic which could also cause actual results to
differ from forward-looking information. In light of these and
other uncertainties, the forward-looking statements included in
this document should not be regarded as a representation by the
Company that the Company's plans and objectives will be achieved.
Other than in accordance with its legal or regulatory obligations
(including under the Market Abuse Regulation, the UK Listing Rules
and the Disclosure Guidance and Transparency Rules of the Financial
Conduct Authority), the Group undertakes no obligation to update
any forward-looking statements, whether as a result of new
information, future events or otherwise. The reader should,
however, consult any additional disclosures that the Group may make
in any documents which it publishes and/or files with the SEC. All
readers, wherever located, should take note of these disclosures.
Accordingly, no assurance can be given that any particular
expectation will be met and investors are cautioned not to place
undue reliance on the forward-looking statements.
Any forward-looking statements made by or on behalf of the Group
speak only as of the date they are made and are based upon the
knowledge and information available to the Directors on the date of
this document.
[1] Percentage
change in reported sterling vs prior year from continuing
operations.
[2] Like-for-like.
LFL comparisons are calculated as follows: current year, constant
currency actual results (which include acquisitions from the
relevant date of completion) are compared with prior year, constant
currency actual results from continuing operations, adjusted to
include the results of acquisitions and disposals for the
commensurate period in the prior year.
[3] Asia Pacific, Latin
America, Africa & Middle East and Central & Eastern
Europe.
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
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WPP PLC
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|
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(Registrant)
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Date:
28 April 2021
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By:
______________________
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|
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Balbir
Kelly-Bisla
|
|
|
Company
Secretary
|