From Cazenova just now .... DYOR .... but quick :)

WPP - upgrade to OUTPERFORM - interims due 26 Aug which we expect to be strong, reflecting gd Q2 fig's already reported by peers. We see potential for EPS upgrades of up to 5%-10% N/T (combination of top line, margin & US$). L/T we expect EPS growth of up to 17%-18% pa before maturing at 11%-12% pa. Key risks are (1) further M&A (2) prem valuation (17.1x 06 EPS before any upgrade), representing a 31% prem to UK mkt & 33% to UK media sector. Despite this we still believe it has room to outperform. Our DCF valuation gives 760p, 28% upside from here.

a nice little run since i mentioned this company a few days ago :-)

perhaps i'm re-finding my touch, though i did indeed get the date for the figures a week early

sp is now into new all-time high ground with momentum, so perhaps more fizz to come if the level can be held

since i last posted, i have sold at a decent profit and just bought back in again, albeit at a higher level

i think that this - or the sector at least - should be in all serious investors' portfolios at a time where economies are once again on the rise

Looks like it could pull back to the shorter term MA(mean reversion) but yes does look interesting Cyners. On my red hot watch list........cheers bud.

no doubt the market will think otherwise, but results out to day look pretty good to me

Liberum note:
WPP has cut its annual operating margin improvement guidance from 50bps to 30bps. This is disappointing, especially given the back office centralisation taking place (and the continued high growth of higher margin media buying, est. c. 20% of group revenues should also have pulled up margins). It has kept its annual diluted EPS growth target of 10-15% pa, but there will now be a greater emphasis on share buybacks (2%-3% pa vs. 1% previously). They continue to increase the dividend pay-out target to 45% In 2014 (from 42% in 2013)
WPP is guiding to like for like revenues over 3% and an operating margin improvement of 30bps yoy (we had 4.4% organic revenue growth and a 40bps margin improvement, but our forecasts are now under review). However, January has started well, with like for like revenue growth of 5.7%.
We cut the recommendation to Hold and put forecasts under review. We like the agency space and we continue to think that WPP is the best positioned agency group in terms of its assets and geographical exposure (c. 30%+ from the faster growing markets). We also think its digital strategy is the right one. However, given the surprise cut to the operating improvement guidance, we believe the shares will lack momentum, despite the strong start to 2014."

well i topped up a bit this morning at 1361

I hope not! :-)

oh alright - 1261 then :-)

looks a smart move with hindsight - currently 1311 :-))

StockMarketWire.com
WPP has booked an H1 pretax profit of £491m, from £427m a year earlier. Revenue was £5.5bn, from £5.3bn. It proposed a dividend of 11.62p a share, from 10.56p.

"All in all, however, on a reportable basis, 2014 looks likely to be another demanding year, as a strong United Kingdom pound and weak faster growth market currencies continue to take their toll on our reported results," the company said in a statement.

"But, if budgets and quarter two revised forecasts are met, 2014 will be another strong year, as the first half results demonstrate. Current nominal worldwide GDP forecasts for 2015 indicate a similar growth rate at around 5.4%. This suggests that 2015 should be another good year for our industry, despite the absence of any mini- or maxi-quadrennial events," it said.

Separately, the company announced two acquisitions.

WPP's wholly-owned operating company GroupM, WPP's global media investment management arm, has agreed to acquire Keyade, a leading digital search marketing agency in France.

WPP added that its wholly-owned operating company, Millward Brown, a global leader in brand, media and communications research, has acquired InsightExpress, Inc., a provider of media analytics and marketing accountability solutions in the United States. InsightExpress will be combined with Millward Brown Digital, the company's US-based digital unit.

Meantime, highlights of the H1 results were:

- Constant currency revenues up 11.3%, like-for-like revenues up 8.7%

- Constant currency net sales up 6.4%, like-for-like net sales up 4.1%

- Reported billings down 3.0% at £22.060 billion ravaged by sterling strength, but up 5.7% in constant currency

- Reported net sales margin of 13.0%, flat with last year, up 0.3 margin points on a constant currency basis and up 0.3 margin points like-for-like in line with the full year margin target

- Headline reported profit before interest and tax £622 million, down 2.4%, but up 9.0% in constant currency

- Headline profit before tax £532 million up 1.5%, up 15.6% in constant currency

- Profit before tax £491 million up 15.0%, up 33.7% in constant currency

- Reported profit after tax £396 million up 25.6%, up 47.9% in constant currency

- Headline diluted earnings per share 29.2p up 2.8%, up 17.1% in constant currency

- Reported diluted earnings per share 27.0p up 25.6%, up 47.7% in constant currency

- Dividends per share 11.62p up 10%, a pay-out ratio of 40% versus 37% last year

- Share buy-backs upped significantly in line with target to £390 million in the first half, up from £133 million last year, equivalent to 2.3% of the issued share capital against 1.0% last year

- Targeted dividend pay-out ratio of 45% likely to be achieved this year well ahead of schedule

- Including all associates and investments, revenues total over $24 billion annually and people average over 179,000

StockMarketWire.com
WPP has announced that its wholly-owned operating company JWT, the global marketing communications agency, has acquired a majority stake of Cairos Usabilidade Eireli ("Try"), a user experience agency in Brazil that designs and develops custom web, mobile, desktop and touch-enabled applications.

Try provides consultancy to their clients in user experience, interaction design and prototyping.

This investment continues WPP's strategy of investing in fast growing markets and sectors and its commitment to developing its strategic networks throughout the dynamic Brazilian market.

It also fits with WPP's strategy of investing in fast-growing markets and sectors such as data and digital. WPP's digital revenues (including associates) were well over $6bn in 2013, approximately 35% of the Group's total revenues of $17.3bn.

It has set a target of 40-45% of revenue to be derived from digital in the next five years.

WPP announces that its wholly-owned media investment management company, GroupM, has acquired 49% of media agency Haworth Marketing + Media ("Haworth") in the United States.

Haworth's billings for the year ended 31 October 2013 were approximately US$700 million with gross assets of US$87 million at the same date. The agency manages media investment for clients such as Target, Ben & Jerry's, Beats by Dr. Dre, Honeywell, DreamWorks Animation and The Oscars. Haworth, which employs 140 people and has offices in Minneapolis and Los Angeles, was founded in 1970.

GroupM is the leading global media investment management operation. It serves as the parent company to WPP media agencies including Maxus, MEC, MediaCom and Mindshare, as well as GroupM Entertainment and Xaxis, its wholly-owned global programmatic media and technology platform. According to RECMA, GroupM manages US$105 billion in media invested by its clients.

The investment continues WPP's strategy of investing in important markets such as the United States where WPP companies (including associates) collectively generate revenues of over US$6 billion and employ approximately 25,000 people.

StockMarketWire.com
WPP has improved its headline FY pretax profit to £1.681bm, up 1.1% on the year and up 8.0% in constant currencies. Revenue rose 4.6% to £11.529bn, and was up 11.3% in constant currencies. Pretax profit rose 12% to £1.452bn, and up 21.3% in constant currencies.

Its dividend per share was 38.2p, up 11.7%.

Highlights:
* Reported billings at £46.186 billion, up 6.8% in constant currency driven by a strong leadership position in net new business league tables

* Revenue growth of 4.6%, with like-for-like growth of 8.2%, 3.1% growth from acquisitions and -6.7% from currency

* Like-for-like revenue growth in all regions,led by strong growth in North America, United Kingdom and Asia Pacific, Latin America, Africa & the Middle East and Central & Eastern Europe, and by all sectors, with particularly strong growth in advertising and media investment management and branding and identity, healthcare and specialist communications (including direct, digital and interactive)

* Like-for-like net sales growth at 3.3%,with the gap compared to revenue growth more than the first half, as the scale of digital media purchases in media investment management and data investment management revenue continues to increase

* Headline EBITDA growth of 0.7%,and up 7.5% in constant currency, reflecting currency headwinds, but giving 0.2 margin points improvement, to 19.0% on net sales, with like-for-like operating costs (+3.1%) rising slower than net sales

* Headline PBIT increase of 1.1%to £1.681 billion, up 8.0% in constant currency

* Net sales margin, a more accurate competitive comparator, up 0.2 margin points to an industry leading 16.7%, up 0.3 margin points in constant currency, in line with target

* Exceptional gains of £196 millionlargely representing gains on the AppNexus and Rentrak transactions completed in the second half, together with other gains of £45 million, including gains on the re-measurement of the Group's equity interests, partly offset by £89 million of restructuring costs, £39 million of IT transformation costs and £7 million of investment write-downs, giving a net exceptional gain of £61 million

* Headline diluted EPS up 5.1%, up 12.6% in constant currency and reported diluted EPS up 15.7%, up 24.9% in constant currency, reflecting strong like-for-like revenue growth, acquisitions and margin improvement

* Final ordinary dividend of 26.58p up 12.4%and full year dividends of 38.20p per share up 11.7%

* Targeted dividend pay-out ratio of 45%, achieved in 2014, one year ahead of original schedule

* Return on equity[8] up to 15.0% in 2014, up 0.6 percentage points from 14.4% in 2013, versus a weighted average cost of capital of 6.1% in 2014 and 6.5% in 2013. During 2014 the value of the Group's non-controlled investments rose by £398 million, to £669 million from £271 million, reflecting the increasing value of its content businesses, primarily Vice, and the technology partnerships formed during the year with AppNexus and Rentrak

* Average net debt flat, at £3.001 billion compared to last year, at 2014 exchange rates, reflecting the significant incremental net acquisition spend and share re-purchases of £588 million, offsetting the improvements in working capital at the period end

* Creative and effectiveness excellence recognised again in 2014 with the award of the Cannes Lion to WPP for the most creative Holding Company, for the fourth successive year, since the awards inception and another to Ogilvy & Mather Worldwide, for the third consecutive year, as the most creative agency network. In another rare occurrence in our industry, in 2014 Grey was named Global Agency of the Year 2013 by both US trade magazines Ad Age and Ad Week. For the third consecutive year, WPP was awarded the EFFIE as the most effective Holding Company

* Strategy implementation accelerated in a pre- and post-POG (Publicis Omnicom Group) world, as sector targets for fast growth markets and digital raised from 35-40% to 40-45% over the next five years

StockMarketWire.com
WPP, the international marketing and advertising company has reported that in the first six months of the year reorted billings were up 5% at £23.2bn. Headline profit before tax was up 12.1% to £596 million from £532 million and up 13.2% in constant currency.

Reported profit before tax rose by 44.5% to £710 million from £491 million, or up 45.6% in constant currency, reflecting the Group's improved operating performance, as well as net exceptional gains on the sale and revaluation of some of the Group's associates and investments.

Reported profits attributable to share owners rose by 55.2% to £566 million from £365 million. In constant currency, profits attributable to share owners rose by 55.0%.

Diluted headline earnings per share rose by 14.7% to 33.5p from 29.2p. In constant currency, diluted headline earnings per share rose by 15.2%. Diluted reported earnings per share rose by 59.3% to 43.0p from 27.0p and by 58.8% in constant currency.

The Group says it continues to benefit from consolidation trends in the industry, winning assignments from existing and new clients, including several very large industry-leading advertising, media and digital assignments, the full benefit of which will be seen reflected in Group revenue later in 2015 and into 2016.

WPP is actively engaged in mainly media investment management reviews, chiefly in the United States, totalling approximately $20bn, which are on-going. The earlier results of these reviews have been good and further results will be announced towards the end of 2015 and into 2016.

JP Morgan Cazenove today reaffirms its overweight investment rating on WPP Group PLC (LON:WPP) and cut its price target to 1760p (from 1785p).

one of my core holdings

StockMarketWire.com
Advertising titan WPP's H1 pretax profit has slumped 40.1% to £425m, this primarily reflecting net exceptional write-downs of £122m.

The write-down was mostly linked to the company's investment in comScore, in comparison to net exceptional gains of £203m a year ago.

Dividends were share was 19.55p, up 22.9% on the year.

HIGHLIGHTS:
- Reported billings up 9.3% at £25.319 billion, up 6.3% in constant currency

- Reported revenue up 11.9% at £6.536 billion, up 5.2% at $9.367 billion, up 4.9% at €8.384 billion and down 2.7% at JPY1.042 trillion

- Constant currency revenue up 8.9%, like-for-like revenue up 4.3%

- Constant currency net sales up 8.1%, like-for-like net sales up 3.8%

- Reported net sales margin of 13.7%, up 0.4 margin points versus last year, up 0.3 margin points in constant currency in line with the full year margin target and 0.3 margin points like-for-like

- Headline reported profit before interest and tax £769 million up 14.9%, and up 10.3% in constant currency

- Headline profit before tax £690 million up 15.8%, up 11.7% in constant currency

- Profit before tax £425 million down 40.1%, down 45.5% in constant currency primarily reflecting net exceptional write-downs of £122 million, principally on the investment in comScore, in comparison to net exceptional gains of £203 million in the same period last year

- Reported profit after tax £282 million down 53.1%, down 58.8% in constant currency

- Headline diluted earnings per share 39.1p up 16.7%, up 11.5% in constant currency

- Reported diluted earnings per share 18.9p down 56.0%, down 62.0% in constant currency

- Dividends per share 19.55p up 22.9%, a pay-out ratio of 50%, in line with the revised target pay-out ratio of 50%

- Share buy-backs of £197 million in the first half, down from £405 million last year, equivalent to 1.0% of the issued share capital against 2.0% last year

- Return on equity slightly down at 15.5% for the 12 months to 30 June 2016 from 15.9% for the previous 12 month period, whilst weighted average cost of capital has fallen to 5.5% from 6.7%

- Including associates and investments, revenue totals over $28 billion annually and people average over 200,000.

investors may complain from time to time about martin sorrell's remuneration package, but it really is unjustified for a change .... the proof is in the results, growing divi and share price

StockMarketWire.com
WPP has sounded a note of caution for 2017 as revenues slowed in both UK and US, as it posted a much improved FY pretax profit and bumped its total dividend higher.

"Given continued tepid economic growth and recent weaker comparative net new business trends, the budgets for 2017, on a like-for-like basis, have been set conservatively at around 2% for both revenue and net sales," the ad giant said.

It added that the prospects in the UK were more mixed as the post-Brexit vote scenarios were played out over the next two years and uncertainties about the possible outcomes of the EU divorce increase.

"The four leading Western Continental European economies, Germany, France, Italy and Spain, let alone the Netherlands and Greece, also all face political uncertainty, although Germany and Spain are strengthening economically, the company said.

Pretax profit for the 12-month period was £1.9bn, up 26.7% from £1.5bn. Dividend was 56.6p a share, up 26.7% on the year.

WPP said North America constant-currency revenue was down 0.7% in the final quarter and like-for-like down 2.8%, while UK's was down 0.7% in the final quarter and like-for-like down 2.6%. Strong comparatives were a factor.

However, Western Continental Europe, Asia Pacific, Latin America, Africa & the Middle East and Central & Eastern Europe all saw Q4 revenue growth on a constant-currency basis.

Referring to current trading, the ad giant said January 2017 like-for-like revenue was up 1.5%, ahead of budget, with net sales up 1.2%, also ahead of budget and reflecting a more difficult comparative.

It added that the divergence between revenue and net sales in the group's media and data investment management businesses, continuing to narrow, as the proportionate scale of digital media buying and data investment management continued to reduce.

WPP said its budgets for 2017 had been prepared on a cautious basis as usual, but continued to reflect the faster growing geographical markets of Asia Pacific, Latin America, Africa & the Middle East and Central & Eastern Europe.

They also reflected the faster-growing functional sub-sector of direct, digital and interactive, with a stronger second half of the year, reflecting the 2016 comparative.

The company's FY 2016 results also showed reported billings up 16.0% at £55.245bn, up 5.5% in constant currency and 3.3% like-for-like. Reported revenue was up 17.6% at £14.389bn.