Final Results - Year Ended 31 Dec 1999, Part 3

WPP Group PLC
17 February 2000


PART 3

WPP GROUP PLC
Appendix I
Preliminary results for the year ended 31 December, 1999
Unaudited preliminary consolidated profit & loss account
for the year ended 31 December, 1999

                                                            Constant
                                                            Currency
                                     Notes    1999     1998    +/(-)           
                          +/-
                                       £m       £m        %        %
                                                                    
Turnover (gross billings)         9,345.9  8,000.1   +16.8%   +15.7%
                                                          
                                                                    
Revenue                        4  2,172.6  1,918.4   +13.3%   +12.0%
                                        
                                                                    
Gross Profit                      1,855.3  1,632.5   +13.6%   +12.4%
                                        
                                                                    
Operating costs                 (1,591.8) (1,403.4)   -13.4%   -11.9%
                                   
                                                                    
Operating profit                   263.5     229.1    +15.0%   +15.2%
                                                                    
Income from associates              27.3      16.1    +69.6%   +72.5%
                                                                    
Profit on ordinary activities                                       
before interest  and taxation   4  290.8     245.2    +18.6%   +19.0%
                                                                    
Net interest payable and           (35.4)    (32.4)    -9.3%    -6.7%
similar charges
                                                                    
Profit on ordinary activities       255.4    212.8   +20.0%   +20.8%
before taxation
                                                                    
Tax on profit on ordinary       5  (76.6)   (67.0)   -14.3%   -15.1%
activities
                                                                    
Profit on ordinary activities       178.8    145.8   +22.6%   +23.5%
after taxation
                                                                    
Minority interests                   (6.0)    (5.5)   -9.1%     9.1%
                                                                    
Profit attributable to              172.8    140.3   +23.2%   +24.0%
ordinary share owners
                                                                    
Ordinary dividends              6  (24.0)   (19.6)   +22.4%   +22.4%
                                                                    
Retained profit for the year       148.8    120.7    +23.3%   +24.3%
                                                                    
Earnings per share (net                                             
basis)
   Basic earnings per           7   22.9p    19.1p   +19.9%   +21.1%
ordinary share
   Fully diluted earnings       7   22.5p    18.8p   +19.7%   +20.5%
per ordinary share
                                                                    
                                                                    
Ordinary dividend - interim     6    1.0p    0.84p   +19.0%   +19.0%
per share
                  - final       6    2.1p    1.72p   +22.1%   +22.1%
                                                                    
Earnings per ADR (net basis)                                        
*
                                                                    
  Basic earnings per ADR        3   $1.85    $1.58   +17.1%   +21.1%
  Fully diluted earnings per    3   $1.82    $1.56   +16.7%   +20.5%
ADR
                                                                    
Ordinary dividend per ADR *                                         
                                                                    
    Interim                     3    8.1c     6.9c   +17.4%   +19.0%
    Final                       3   17.0c    14.3c   +18.9%   +22.1%
                                                                    

*    These figures have been translated for convenience
     purposes only, using the profits and loss exchange
     rates shown in note 3.  The comparative figures have
     been restated following a change in the ratio of
     ordinary shares per ADR from 10 ordinary shares per
     ADR to 5 ordinary shares per ADR.


WPP GROUP PLC
Unaudited preliminary consolidated cash flow statement
for the year ended 31 December, 1999

                                              
                                      1999    1998
                                                
                                        £m      £m
                                                  
Reconciliation of operating profit
to net cash inflow  from operating
activities:
 Operating profit                    263.5  229.1
 Depreciation charge                  42.2   33.7
 Movements in working capital and     42.8        
 provisions                                  (6.8)
Net cash inflow from operating       348.5  256.0
activities
Dividends received from associates     4.3    3.4
Return on investments and                    
servicing of finance                 (37.1) (28.7)
United Kingdom and overseas tax            
paid                                 (58.4) (59.0)
                                                  
Purchase of tangible fixed assets   (64.6)  (51.6)
Purchase of own shares by ESOP              
trust                               (17.9)  (33.3)
Other movements                       2.0     2.8
Capital expenditure and financial           
investment                          (80.5)  (82.1)
Cash consideration for             (242.2) (111.8)
acquisitions                         
Less cash acquired                   51.8     6.1
Net purchases of other investments  (11.8)   (9.8)
Total acquisitions                 (202.2) (115.5)
                                        
Equity dividends paid               (21.1)  (16.6)
Net cash outflow before financing   (46.5)  (42.5)
Increase/(reduction) in drawings           
on bank loans                       258.0   (81.4)
Proceeds from US bond issuance          -   178.8
Share buybacks                          -   (21.3)
Proceeds from issue of shares         12.0    4.3
Other movements                          -   (2.3)

Net  cash inflow from financing     270.0    78.1
Increase in cash and overdrafts      
for the year                        223.5    35.6
Translation difference               (0.6)    0.9
Balance of cash and overdrafts at    
beginning  of year                  328.5   292.0
Balance of cash and overdrafts at   
end of year                         551.4   328.5
                                                  
Reconciliation  of net cash flow                  
to movement in net funds:
Increase in cash and overdrafts      
for the year                        223.5   35.6
Cash inflow from debt financing    (258.0) (95.2)
Other movements                      (1.7)  (0.9)

Translation difference               (6.2)   0.1
                                                  
Movement of net funds in the year   (42.4) (60.4)
Net funds at beginning of year      134.3  194.7
Net funds at end of year (Note 12)   91.9  134.3


WPP GROUP PLC
Unaudited preliminary consolidated balance sheet as at 31
December, 1999

                                                        
                                                   
                                        1999   1998
                                          £m     £m
                                                   
Fixed assets                                       
Intangible assets:                                 
 Corporate brands                      350.0  350.0
 Goodwill                         8    410.3  158.0
Tangible assets                        196.7  166.7
Investments                       8    356.9  268.2
                                     1,313.9  942.9
                                          
Current assets                                     
Stocks and work in progress            113.5  107.3
Debtors                           9  1,040.4  893.1
                                          
Debtors within working capital                     
facility:
 Gross debts                           345.7  294.5
 Non-returnable proceeds              (214.1)(209.2)
                                       
                                       131.6   85.3
Cash at bank and in hand               607.0  423.9
                                     1,892.51,509.6
                                        
Creditors:  amounts falling due  
within one year                10   (2,148.0)(1,777.3)
                                                   
Net current liabilities               (255.5)(267.7)
                                          
Total assets less current            1,058.4  675.2
liabilities                               
                                                   
Creditors: amounts falling due  11  (652.5)  (401.5)
after more than one year               
Provisions for liabilities and       (79.2)  (77.9)
charges                                 
                                                   
Net assets                           326.7   195.8
                                                   
Capital and reserves                               
Share capital                         77.5   76.6
Reserves                             240.7  111.1
Share owners' funds                  318.2  187.7
Minority interests                     8.5    8.1
Total capital employed               326.7  195.8

WPP GROUP PLC
Unaudited preliminary reconciliation of movements in
consolidated share owners' funds
for the year ended 31 December 1999


                                                     
                                                     
                                                 
                                       1999      1998
                                         £m        £m
Profit for the financial year         172.8     140.3
Ordinary dividends payable           (24.0)    (19.6)
                                      148.8     120.7
Exchange adjustments on foreign      (31.2)       4.0
currency net investments
Share buybacks                            -    (21.3)
Shares issued for acquisitions            -    105.4
Other movements                        12.9      4.1
Net additions to share owners'        130.5    212.9
funds
                                                     
Opening share owners' funds           187.7    (25.2)
Closing share owners' funds           318.2    187.7
                                                     
                                                     

Unaudited preliminary statement of consolidated
recognised gains and losses for the year ended
 31 December 1999
                            
                            
                                                 
                                       1999      1998
                                         £m        £m
                                                     
Profit for the year                   172.8     140.3
Exchange adjustments on foreign       (31.2)       4.0
currency net investments
                                                     
Total recognised gains                141.6     144.3
                                                     


WPP GROUP PLC

Notes to the unaudited preliminary consolidated financial
statements



1.     Basis of accounting

The unaudited preliminary consolidated financial
statements are prepared under the historical cost
convention.

2.       Accounting policies

The unaudited preliminary consolidated financial
statements comply with relevant accounting standards (UK
GAAP) and have been prepared using accounting policies
set out on pages 52 and 53 of the Group's 1998 Annual
Report and Accounts, apart from the adoption of FRS12
(Provisions and Contingencies) and FRS13 (Derivatives and
Other Financial Instruments).  There has been no material
impact on the financial statements as a result of the
adoption of these new standards.


3.    Currency conversion

The 1999 unaudited preliminary consolidated profit and
loss account is prepared using, among other currencies,
an average exchange rate of US$1.6178 to the pound (1998:
US$1.6574).  The unaudited preliminary consolidated
balance sheet as at 31 December 1999 has been prepared
using the exchange rate on that day of US$1.6182 to the
pound (1998: US$1.6638).

The constant currency percentage changes shown on the
face of the profit and loss account have been calculated
by applying 1999 exchange rates to the results for 1998
and 1999.

The unaudited preliminary consolidated profit and loss
account and balance sheet are presented in Euros in
Appendix II for illustrative purposes.  The unaudited
preliminary consolidated profit and loss account has been
prepared using an average exchange rate of euro1.5202 to the
pound (1998: euro1.4771).  The unaudited preliminary balance
sheet at 31 December 1999 has been prepared using the
exchange rate on that day of euro1.6056 to the pound (1998:
euro1.4169).

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