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).
MORE TO FOLLOW
FRCFQLLFBLBLBBZ
Latest directors dealings
- 11 hours ago Johnson Matthey
- 12 hours ago Galliford Try
- 12 hours ago Galliford Try
- 12 hours ago Centrica
- 13 hours ago Smith & Nephew