WPP Preliminary Results for the Year Ended 31 December 2004.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of & LONDON London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. -- WPP WPP Wire & Plastic Product PLC WPP World Press Photo WPP Web Presence Provider WPP Wolf Pack Productions (anime fan subbing group) WPP Witness Protection Program WPP Wireless Packet Platform WPP Work Package Planning --Reported Billings Billings, city (1990 pop. 81,151), seat of Yellowstone co., S Mont., on the Yellowstone River, in a valley surrounded by seven mountain ranges; inc. as a city 1885. up over 5% to $35.9 Billion (GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 19.6 Billion) --Reported Revenue up Almost 5% to $7.9 Billion (GBP 4.3 Billion) --Constant currency revenue up over 11% --Like-for-like revenue up over 4% --Headline profits before tax up over 15% to $1,001 million (GBP 546 million) --Operating margin up 1.1 margin points to 14.1% --Diluted headline earnings Headline Earnings A basis for measuring earnings per share implemented by the Institute of Investment Management and Research. This method accounts for all the profits and losses from operational, trading, and interest activities, that have been discontinued or acquired at any per share up over 11% at 59.2(cents) (32.3p) --Final dividend up 20% to 9.68(cents) (5.28p) per share WPP (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : WPPGY) today reported its preliminary results for the year ended 31 December December: see month. 2004. --Revenue up almost 5% to $7.878 billion (GBP 4.299 billion) and up over 11% in constant currencies. --Like-for-like revenue up over 4%. --Headline operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before tax up almost 14% to $1,113.7 million (GBP 607.7 million) from $977.7 million (GBP 533.5 million) and up over 21% in constant currencies. --Operating margin up 1.1 margin points to 14.1% from 13.0%. --Headline profits before tax up over 15% to $1,001.5 million (GBP 546.5 million) from $867.6 million (GBP 473.4 million) and up almost 23% in constant currencies. --Profit before tax up over 30% to $836.6 million (GBP 456.5 million) from $641.2 million (GBP 349.9 million) and up over 41% in constant currencies. --Diluted headline earnings per share up over 11% to 59.2(cents) (32.3p) from 53.1(cents) (29.0p) and up over 20% in constant currencies. --Reported diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of up over 37% to 45.8(cents) (25.0p) from 33.4(cents) (18.2p) and up almost 54% in constant currencies. --Final dividend up 20% to 9.68(cents) (5.28p) per share making a total for the year of 14.26(cents) (7.78p) up 20% over 2003. --Headline operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: targets, including Grey, revised upwards to a minimum of 14.3% in 2005 and 14.8% in 2006. --Average net debt down over $766 million (GBP 400 million) or almost 34% to $1,552 million (GBP 810 million) from $2,341 million (GBP 1,222 million). --Record estimated net new billings of almost $6.8 billion (GBP 3.8 billion). In this press release not all of the figures and ratios used are readily available from the unaudited preliminary results included in Appendix appendix, small, worm-shaped blind tube, about 3 in. (7.6 cm) long and 1-4 in. to 1 in. (.64–2.54 cm) thick, projecting from the cecum (part of the large intestine) on the right side of the lower abdominal cavity. I. Where required, details of how these have been arrived at are shown in Appendix IV. Summary of results The Board of WPP Group WPP Group plc (LSE: WPP) (NASDAQ: WPPGY), based in London, United Kingdom, is one of the world's largest communications services groups (and one of the big six advertising holding companies, the others being Omnicom, Interpublic, Publicis, Dentsu and Havas) employing plc ("WPP") announces the unaudited preliminary results for the year ended 31 December 2004, the Group's nineteenth year. These record results show improved performance, as the Group capitalised on better economic conditions in a quadrennial quad·ren·ni·al adj. 1. Happening once in four years. 2. Lasting for four years. quad·ren  ni·al n. year across the globe and across all of its communications
services.Turnover was up 5.2% at $35.9 billion (GBP 19.6 billion). Reportable revenue was up almost 5% to $7.878 billion (GBP 4.299 billion). Revenue including associates is estimated to total $9.682 billion (GBP 5.283 billion). On a constant currency basis, revenue was up over 11% and gross profit up over 12%. Like-for-like revenues, excluding the impact of acquisitions and on a constant currency basis, were up over 4%. Excluding the acquisition of Cordiant Communications Group Cordiant Communications Group was an advertising agency conglomerate in business from 1995 to 2003. In 2001 Cordiant was the eighth largest advertising group worldwide, with an estimated gross income of US$1.2 billion and billings of around US$13.4 billion. plc ("Cordiant"), like-for-like revenues were up 5.6%. Like-for-like revenues were up over 2% in the first half of 2004 and up almost 6% in the second half. Sequential One after the other in some consecutive order such as by name or number. quarters in 2004 were up 1.8%, 3.0%, 5.7%, and 5.7%. Reported operating costs operating costs npl → gastos mpl operacionales including direct costs (but excluding goodwill amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years amortization reduction, step-down, diminution, decrease - the act of decreasing or reducing something 2. and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. ), rose by over 4% and by almost 11% in constant currency. Like-for-like total operating and direct costs rose over 3%. Reported staff costs, excluding incentives, were up almost 5.0%, with salaries and freelance costs up 5.1%. Incentive payments totalled $294.3 million (GBP 160.6 million) ($239.0 million (GBP 130.4 million) in 2003) or over 22% (almost 21% in 2003) of operating profit before bonuses, taxes and income from associates. Before these incentive payments, operating margins increased by 1.6 margin points to 16.8% from 15.2%. On a reported basis, the Group's staff cost to gross margin ratio rose to 61.4% from 61.1%. Excluding incentives, this ratio fell 0.2 margin points to 57.5% from 57.7%. All these figures exclude share option costs, which amount to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 0.6 of a margin point, using the Black Scholes Scholes(/skowlz/ or /šowlz/) could refer to the following places: United Kingdom:
Variable staff costs as a proportion of total staff costs increased during the 1990s, reaching a peak of 12.1% in 2000. The impact of the recession in 2001 and 2002 was to reduce this ratio to 9.2% and variable staff costs as a proportion of revenue to 5.3%. In 2004, following the significant improvement in pre-bonus operating profit, incentives increased and variable staff costs as a proportion of staff costs rose to 12.2%, higher than the previous maximum achieved in 2000, with variable staff costs as a proportion of revenues rising to another peak of 7.1%. Non-staff costs fell as a proportion of revenues, from 24.6% to 23.4%, partly reflecting a reduction in the Group's property costs following actions taken in 2003 and a reduction in IT costs. The number of people in the Group averaged 57,788 against 51,604 in 2003, an increase of 12.0%. On a like-for-like basis, average headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. was up marginally mar·gin·al adj. 1. Of, relating to, located at, or constituting a margin, a border, or an edge: the marginal strip of beach; a marginal issue that had no bearing on the election results. 2. to 57,788 from 57,623, an increase of 0.3%. At the end of 2004, staff numbers were 59,932 compared with 57,478 at the end of 2003 on a pro-forma basis, an increase of 4.3%. Net interest payable and similar charges (including a charge of $17.4 million (GBP 9.5 million) for FRS FRS abbr. Fellow of the Royal Society FRS, n “flexed rotated side-bent,” an osteopathic abbreviation used to describe vertebral position in cases of spinal dysfunction. 17) fell to $129.6 million (GBP 70.7 million) from $131.2 million (GBP 71.6 million), principally reflecting improved average net debt levels, largely offset by higher interest rates. Headline interest cover remains at a level of over eight times and at almost ten times, excluding the FRS17 charge. Headline operating profit or profit pre-goodwill and impairment, interest, tax, investment gains and write-downs was up 13.9% to $1,113.7 million (GBP 607.7 million) from $977.7 million (GBP 533.5 million) and up over 21% in constant currencies. Headline profit before tax or profit pre-goodwill, impairment and tax was up over 15% to $1,001.5 million (GBP 546.5 million) from $867.6 million (GBP 473.4 million). Reported headline operating margin (including income from associates) increased to 14.1% from 13.0%. Reported profit before interest, tax, investment gains and write-downs was up over 25% to $969.8 million (GBP 529.2 million) from $772.4 million (GBP 421.5 million) and on a constant currency basis, was up over 35% reflecting the weakness of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. dollar. However, moving down the income statement, this adverse currency impact was partly hedged hedge n. 1. A row of closely planted shrubs or low-growing trees forming a fence or boundary. 2. A line of people or objects forming a barrier: a hedge of spectators along the sidewalk. by the effect of dollar denominated operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and interest costs, particularly at the profit before tax level. The Group's tax rate on headline profits was 25.7%, a similar level to the previous year, reflecting the continuing positive impact of the Group's tax planning Tax planning Devising strategies throughout the year in order to minimize tax liability, for example, by choosing a tax filing status that is most beneficial to the taxpayer. initiatives. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. headline earnings per share were up over 11% at 59.2(cents) (32.3p). In constant currency, earnings per share on the same basis were up over 20%. In 2003, $145 million (GBP 79 million) was taken as an impairment charge primarily reflecting accelerated amortisation of goodwill on first generation businesses which suffered in the recession. Although 2004 was a stronger year than 2003, some first generation businesses, continued to suffer and an impairment charge reflecting accelerated amortisation of goodwill of $66 million (GBP 36 million) has been taken. As a result, profit before tax rose over 30% to $836.6 million (GBP 456.5 million) and diluted earnings per share rose by over 37% to 45.8(cents) (25.0p). The Board recommends an increase of 20% in the final dividend to 9.68(cents) (5.28p) per share, making a total of 14.26(cents) (7.78p) per share for 2004, a 20% increase over 2003. The record date for this dividend is 3 June June: see month. 2005, payable on 4 July July: see month. 2005. The dividend for 2004 is 4.2 times covered by headline earnings. Further details of WPP's financial performance are provided in Appendix I (in sterling) and Appendix II (in euros). WPP will be required to charge the fair value of stock-based compensation (including share options) to its income statement from 2005. To illustrate the impact of this change, which arises from the implementation of FRS 20 (IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System 2) Share-based Payment, Appendix III shows a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma unaudited income statement for 2004 prepared on the basis of applying the principles of the new accounting standard. The resulting charge has been calculated using a Black Scholes valuation model and applying it to the relevant share incentive schemes on a fully retrospective LAW, RETROSPECTIVE. A retrospective law is one that is to take effect, in point of time, before it was passed. 2. Whenever a law of this kind impairs the obligation of contracts, it is void. 3 Dall. 391. basis, so the 2004 charge arises from grants in 2004 and prior years, fully expensed over the appropriate vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: period. Review of operations The Group's financial performance in the year more than mirrored the continuing improvement in economic conditions across the globe, with even the weakest region, Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). , picking up in the second half. 2004 reflected the positive impact of quadrennial factors such as the United States Presidential Election United States presidential elections determine who serves as president and vice president of the United States for four-year terms, starting at midday on Inauguration Day, which is January 20 of the year after the election. , political advertising in the United States pushing up media rates, the Athens Olympics Athens Olympics
Olympic Games • and the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. Football Championships. 2004 also marked a switch in client focus to top-line growth, as corporate profitability, margins and liquidity improved significantly, following cost management in the recession of 2001-2003. Corporate profitability is at historically high levels on both sides of the Atlantic. This resulted in unprecedented levels of new business activity, which have continued into 2005. Network television price inflation and declining audiences, fragmentation (1) Storing data in non-contiguous areas on disk. As files are updated, new data are stored in available free space, which may not be contiguous. Fragmented files cause extra head movement, slowing disk accesses. A defragger program is used to rewrite and reorder all the files. of traditional media and rapid development of new technologies continued to drive experimentation by our clients in new media and non-traditional alternatives. 1998 was really the first year when WPP's marketing services activities represented over 50% of Group revenue. In 2004 these activities represented almost 54% of Group revenue. In addition, in 2004, our narrowly defined internet-related revenue was almost $400 million or over 5% of our worldwide reported revenue. This is in line with over 5% for on-line media's share of total advertising spend in the United States and approximately 4% share worldwide. The new media continue to build their share of client spending. Revenue and operating profit by region The pattern of revenue growth differed regionally. The table below gives details of revenue and revenue growth (on a constant currency basis including the impact of acquisitions) by region for 2004 as well as proportions of operating profits:
Operating Revenue*
Revenue profit as including 100%
Revenue as growth% a % of of associates
a% of Total +/(-) Total as a % of
Region Group 04/03 Group Total Group
---------------------------------------------------------------------
North America 38.7 + 9.7 43.8 32.3
United Kingdom 16.8 + 9.6 13.1 15.7
Continental Europe 26.1 + 7.6 22.9 26.4
Asia Pacific, Latin
America, Africa & the
Middle East 18.4 +23.7 20.2 25.6
Total Group 100.0 + 11.4 100.0 100.0
----------------
* Estimated
As can be seen, all regions showed revenue growth in 2004, with Asia Pacific, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , Africa and the Middle East growing fastest and crossing $1 billion of annual revenues for the second time. Including 100% of associates' revenue these regions represent over 25% of total revenues. The acquisition of Grey Global Group ("Grey") will add a further $150 million of revenues in these areas. A record estimated net new billings of $6.829 billion (GBP 3.794 billion) were won last year, reflecting in part exceptionally strong media investment management new business wins in the final quarter of 2004, which alone amounted to almost $3.2 billion. The Group was ranked number one for net new billings in all the major new business tables for 2004. Revenue and operating profit by communications services sector and brand The pattern of revenue growth also varied by communications services sector and brand. The table below gives details of revenue and revenue growth by communications services sector for 2004 (on a constant currency basis including the impact of acquisitions) as well as proportions of operating profits:
Revenue(1)
Operating including
Revenue as Revenue profit as 100% of
a % of growth% a % of associates
Total +/(-) Total as a % of
Communications services Group 04/03 Group Total Group
----------------------------------------------------------------------
Advertising, Media
Investment Management(2) 46.1 +10.8 52.5 47.3
Information, Insight &
Consultancy 17.3 +11.5 12.1 16.0
Public Relations & Public
Affairs(2) 10.4 +6.5 10.3 9.8
Branding & Identity,
Healthcare & Specialist
Communications 26.2 +14.6 25.1 26.9
Total Group 100.0 11.4 100.0 100.0
-------------
(1) Estimated
(2) In 2004, certain public relations revenue which historically was
included in Advertising, Media Investment Management has been moved
into Public Relations and Public Affairs. As a result, the comparative
figures for both Advertising, Media Investment Management and Public
Relations and Public Affairs have been restated to reflect this
change.
Our media investment management businesses started to improve in October October: see month. 2002, and then significantly from April 2003. This growth continued for the remainder of 2003 and escalated during 2004, primarily driven by the strong new business wins, in turn driven by client consolidation. Advertising has followed this trend, but less strongly. Information, insight and consultancy continued the strong growth seen in the first half. Branding and identity, healthcare and specialist communications rebounded with healthcare and direct, internet and interactive (a part of specialist communications), growing particularly strongly. Public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most and public affairs Those public information, command information, and community relations activities directed toward both the external and internal publics with interest in the Department of Defense. Also called PA. See also command information; community relations; public information. , which was more affected by the recession, has recovered well and has now had five consecutive quarters of revenue growth. Advertising and Media Investment Management In constant currencies, advertising and media and investment management revenue grew by 10.8%. Like-for-like revenue growth was well over 3%. Excluding the impact of the acquisition of Cordiant, like-for-like growth was almost 6%. The combined operating margin of this sector was over 16%. In 2004, Ogilvy Ogilvy may refer to:
American clergyman and writer. He and his son Cotton (1663-1728) exerted great theological and political influence on the colony of Massachusetts through their staunch Puritanism and prolific writing. Worldwide generated estimated net new billings of $276 million (GBP 153 million), JWT JWT J. Walter Thompson (agency) JWT Java Windows Terminal JWT Just War Theory JWT Jim Wolf Technology JWT Java Workflow Tooling JWT John Wayne Trail (US Army Yakima Training Center) JWT Justified War Theory $421 million (GBP 234 million), Y&R Advertising $134 million (GBP 74 million) and Red Cell, $111 million (GBP 62 million). Also in 2004, MindShare and Mediaedge:cia generated estimated net new billings of $5.005 billion (GBP 2.781 billion). Information, Insight and Consultancy Information, insight and consultancy seems to have been the most recession resistant communications service in the Group. In 2004, on a constant currency basis revenues grew over 11%. Like-for-like revenues were up over 4%. The difficulties at the Group's call centre operations in the United States have now been overcome, with significant improvement in 2004. Overall margins improved by 2.7 margin points to almost 10%. Strong performances were recorded by Millward Brown Millward Brown is a market research company,[2] with its headquarters based in the UK. Millward Brown was the first company to provide continuous tracking studies, and has researched more ads and more brands than any other research company. (in the United States, Greenfield Greenfield, town (1990 pop. 18,666), seat of Franklin co., NW Mass., at the confluence of the Deerfield and Green rivers, near their junction with the Connecticut; settled 1686, set off from Deerfield and inc. 1753. Consulting Group and MaPs in the United States, Sadek Wynberg Wynberg can refer to:
 This disambiguation page lists articles about distinct geographical locations with the same name. and Precis in the United Kingdom, IMS (1) See IP Multimedia Subsystem.(2) (Information Management System) An early IBM hierarchical DBMS for IBM mainframes. IMS was widely implemented throughout the 1970s under MVS and continues to be used under z/OS. in Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. , Ulster Ulster, northernmost of the historic provinces of Ireland. Modern Ulster consists of nine counties. Six (Antrim, Armagh, Down, Fermanagh, Derry, and Tyrone) now make up Northern Ireland (see Ireland, Northern), which is often referred to as Ulster; the remaining , Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. , Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , China, Firefly firefly or lightning bug, small, luminescent, carnivorous beetle of the family Lampyridae. Fireflies are well represented in temperate regions, although the majority of species are tropical and subtropical. in Thailand Thailand (tī`lănd, –lənd), Thai Prathet Thai [land of the free], officially Kingdom of Thailand, constitutional monarchy (2005 est. pop. 65,444,000), 198,455 sq mi (514,000 sq km), Southeast Asia. , Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. and Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. ); BMRB BMRB Biological Magnetic Resonance Data Bank BMRB British Market Research Bureau BMRB Boston Municipal Research Bureau BMRB Behavioral Medicine Research Building International in the United Kingdom, KMR KMR Kitten Milk Replacement KMR Kwajalein Missile Range (US Army; now Reagan Test Site) KMR Koninklijke Marine Reserve (Dutch) KMR Knowledge Management for Remedy (KMXperts) Group, AGB AGB Game Boy Advance AGB Allgemeine Geschäftsbedingungen (German: General terms and conditions / Standard business conditions) AGB Ice Breaker (USCG) AGB Asymptotic Giant Branch , Research International (in the United States, Simon Godfrey Simon Godfrey (born October 18, 1980) is an Australian Rules footballer for the Melbourne Demons. Godfrey was recruited from Box Hill and debuted for the Demons in 2000, selected at number 14 in the draft. A midfielder, he was fifth in the best and fairest for 2003. in the United Kingdom, Germany, Greece Greece, Gr. Hellas or Ellas, republic (2005 est. pop. 10,668,000), 50,944 sq mi (131,945 sq km), SE Europe. It occupies the southernmost part of the Balkan Peninsula and borders on the Ionian Sea in the west, on the Mediterranean Sea in the south, on , France, the Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. , Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. , SIFO in Sweden Sweden, Swed. Sverige, officially Kingdom of Sweden, constitutional monarchy (2005 est. pop. 9,002,000), 173,648 sq mi (449,750 sq km), N Europe, occupying the eastern part of the Scandinavian peninsula. , Thailand, Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). , Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. and Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. ); Lightspeed Research, Da Vinci da Vinci Surgery A surgical robot for performing certain surgeries–eg, mitral valve repair and laparoscopic procedures–eg, cholecystectomy and gastric ulcer repair. See Laparoscopic surgery, Robotics, Surgical robot. in the United States, icon/DRI, Glendinning in the United Kingdom, Added Value/icon in France and pFour. Public Relations and Public Affairs Public relations and public affairs continued its recovery first seen in the last quarter of 2003, with constant currency growth of over 6% and like-for-like growth of over 3%. Particularly strong were Cohn & Wolfe, Ogilvy Public Relations Worldwide, Burson-Marsteller Burson-Marsteller is one of the largest public relations agencies in the world. It is unit of Young & Rubicam, which is owned by WPP Group PLC.[1] It was formed by Harold Burson and Bill Marsteler in 1954. , Penn Schoen & Berland, Finsbury Coordinates: Finsbury is a place in the south of the London Borough of Islington. The name is first recorded as Vinisbir (1231) and means "manor of a man called Finn. and Buchanan. Operating margins continued to improve and now exceed 14%, an improvement of over 1 margin point. Branding and Identity, Healthcare and Specialist Communications The Group's branding and identity, healthcare and specialist communications revenues rose by over 14%. Like-for-like revenues rose by over 5%. Operating margins were up 0.9 margin points. The Group's healthcare and direct, internet and interactive businesses showed particularly strong revenue growth. Several companies performed particularly well: --in branding and identity - Landor Associates Landor Associates is a San Francisco-based brand and creative design consultancy. Founded by Walter Landor in 1941, Landor pioneered many of the research, design and consulting methodologies that are now standard in the branding industry. in New York, Cincinnati Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. , the United Kingdom, Dubai Dubai (d  bī`), sheikhdom (1995 pop. 674,101), c.1,500 sq mi (3,890 sq km), part of the federation of seven United Arab Emirates, SE Arabia, on the Persian Gulf. , Mexico, Japan and Hong Kong;
Enterprise IG New York and WalkerGroup in the United States, Addison Addison, village (1990 pop. 32,058), Du Page co., NE Ill.; inc. 1884. An industrial suburb of Chicago, it manufactures machinery and plastic items. Corporate Marketing and Warwicks in the United Kingdom; Fitch fitch: see polecat. in
Columbus Columbus.1 City (1990 pop. 178,681), seat of Muscogee co., W Ga., at the head of navigation on the Chattahoochee River; settled and inc. 1828 on the site of a Creek village. and Phoenix in the United States and the United Kingdom, including Pci:Live; The Partners in the United Kingdom --in healthcare - CommonHealth in the United States; Sudler & Hennessey Hennessey or Hennessy may refer to:
--in promotion and direct marketing - OgilvyOne (in New York, Minneapolis Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. and Eicoff in the United States, the United Kingdom, Sweden, the Netherlands and Austria Austria (ô`strēə), Ger. Österreich [eastern march], officially Republic of Austria, federal republic (2005 est. pop. 8,185,000), 32,374 sq mi (83,849 sq km), central Europe. , Concept in Germany, Italy, the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. , Mexico); 141 Worldwide in the United States, the United Kingdom, Italy, Mexico; Wunderman (in Detroit/Irvine and Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. in the United States, Burrows Burrows is a provincial electoral division in the Canadian province of Manitoba. It was created by redistribution in 1957, and formally came into existence in the provincial election of 1958. The riding is located in the northern part of Winnipeg. and the Automotive Group in the United Kingdom, Germany, Switzerland Switzerland (swĭt`sərlənd), Fr. Suisse, Ger. Schweiz, Ital. Svizzera, officially Swiss Confederation, federal republic (2005 est. pop. 7,489,000), 15,941 sq mi (41,287 sq km), central Europe. , the Netherlands, Portugal Portugal (pôr`chəgəl), officially Portuguese Republic, republic (2005 est. pop. 10,566,000), 35,553 sq mi (92,082 sq km), SW Europe, on the western side of the Iberian Peninsula and including the Madeira Islands and the Azores in the , Belgium Belgium (bĕl`jəm), Du. België, Fr. La Belgique, officially Kingdom of Belgium, constitutional kingdom (2005 est. pop. 10,364,000), 11,781 sq mi (30,513 sq km), NW Europe. , Greece, Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. , Mexico and Australia) --specialist marketing resources - VML (1) (Vector Markup Language) An extension to XML that defines images in vector graphics format for the Web. It also defines how the image is displayed and edited. VML graphics can be modified by style sheets that pertain to the page they reside in. , Einson Freeman Freeman can mean:
EWA Electronic Warfare Associates, Inc. EWA Energy from Waste Association (UK) EWA Engineered Wood Association EWA Edgewood Arsenal EWA Earl Walls Associates , Mando Mando refers to:
Manufacturing Revenues and profits at the Group's manufacturing division were down significantly in 2004. Balance sheet and cash flow An unaudited summary of the Group's consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. as at 31 December 2004 is attached in Appendix I (in sterling) and in Appendix II (in euros). As at 31 December 2004, the Group's net debt fell by $119 million (GBP 62 million) to $575 million (GBP 300 million) compared with $694 million (GBP 362 million) at 31 December 2003 (estimated at the same figure of $694 million (GBP 362 million) on the basis of 2004 year end exchange rates). Net debt averaged $1,552 million (GBP 810 million) in 2004, down $789 million (GBP 412 million) against $2,341 million (GBP 1,222 million) in 2003 (down $619 million (GBP 323 million) at 2004 exchange rates). These net debt figures compare with a current equity market capitalisation Noun 1. market capitalisation - an estimation of the value of a business that is obtained by multiplying the number of shares outstanding by the current price of a share market capitalization of approximately $13.4 billion (GBP 7.0 billion), giving a total enterprise value of approximately $14.9 billion (GBP 7.8 billion). Cash flow strengthened as a result of improved working capital management and cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses . In 2004, operating profit before goodwill amortisation and impairment was $1,026 million (GBP 560 million), capital expenditure $176 million (GBP 96 million), depreciation $189 million (GBP 103 million), tax paid $185 million (GBP 101 million), interest and similar charges paid $134 million (GBP 73 million) and other net cash inflows of $101 million (GBP 55 million). Free cash flow available for debt repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan , acquisitions, share buybacks and dividends was therefore $821 million (GBP 448 million). This free cash flow was partially absorbed Absorbed 1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices. 2. In underwriting, when an issue has been completely sold to the public. 3. by $400 million (GBP 218 million) in net acquisition payments and investments, share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. and cancellations of $163 million (GBP 89 million) and dividends of $150 million (GBP 82 million). The Company more than met its stated objective of more than covering acquisition payments and share repurchases and cancellations from free cash flow, even after including dividends. A summarised unaudited consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: cash flow statement is included in Appendix I. In the first seven weeks of 2005 up until 15 February February: see month. , the last date for which information is available prior to this announcement, net debt averaged $795 million (GBP 415 million) down $611 million (GBP 319 million) versus $1,406 million (GBP 734 million) for the same period last year at 2005 exchange rates. In January January: see month. 2005 the $288m 3% convertible bond issued by Y&R in 2000 was redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. at par from existing resources, resulting in the expiry of the associated conversion rights into 16.3 million WPP shares. Your Board continues to examine ways of deploying its substantial cash flow of almost $916 million (GBP 500 million) per annum Per annum Yearly. to enhance share owner value. As necessary capital expenditure is expected to remain equal to or less than the depreciation charge in the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. , the Company has concentrated on examining potential acquisitions and on returning excess capital to share owners in the form of dividends or share buy-backs. In 2004 the Group increased its equity interests, at a combined net initial cost of $216 million (GBP 113 million) in cash, in advertising and media investment management in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , Denmark Denmark (dĕn`märk), Dan. Danmark, officially Kingdom of Denmark, kingdom (2005 est. pop. 5,432,000), 16,629 sq mi (43,069 sq km), N Europe. , France, Germany, the Netherlands, Italy, Sweden, Poland Poland, Pol. Polska, officially Republic of Poland, republic (2005 est. pop. 38,635,000), 120,725 sq mi (312,677 sq km), central Europe. It borders on Germany in the west, on the Baltic Sea and the Kaliningrad region of Russia in the north, on Lithuania, , South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. , China, Japan, India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. , South Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. , Indonesia and Chile Chile (chĭl`ē, Span. chē`lā), officially Republic of Chile, republic (2005 est. pop. 15,981,000), 292,256 sq mi (756,945 sq km), S South America, west of the continental divide of the Andes Mts. ; in information, insight and consultancy in the United States, Hungary Hungary, Hung. Magyarország, officially Republic of Hungary, republic (2005 est. pop. 10,007,000), 35,919 sq mi (93,030 sq km), central Europe. , and in television audience measurement in seventeen Seventeen novel of young love. [Am. Lit.: Booth Tarkington Seventeen in Magill I, 882] See : Adolescence countries through an increased investment in Italy; in public relations and public affairs in the United States and the United Kingdom; in healthcare in the Netherlands; and in branding and identity in the United States and Australia. Last year, 13.4 million ordinary shares or 1.1% of the share capital were repurchased at a total cost of $135.1 million (GBP 73.7 million) and average price of 1,008(cents) (550p). As noted above, your Board has decided to increase the final dividend by 20% to 9.68(cents) (5.28p) per share, taking the full year dividend to 14.26(cents) (7.78p) per share which is 4.2 times covered, at the headline earnings level. In addition, as the return on capital criteria criteria (krītēr´ē  ),n. for investing in cash acquisitions have been raised, particularly in the United States, the Company will continue to commit to repurchasing up to 2% of its share base in the open market at an approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. cost of $275 million (GBP 150 million), when market conditions are appropriate. Such annual rolling share repurchases are believed to have a more significant impact in improving share owner value than sporadic sporadic /spo·rad·ic/ (spo-rad´ic) occurring singly; widely scattered; not epidemic or endemic. spo·rad·ic or spo·rad·i·cal adj. 1. Occurring at irregular intervals. 2. buy-backs. Developments in 2004 Including associates, the Group pre the acquisition of Grey Global Group ("Grey") had over 75,000 full-time full-time adj. Employed for or involving a standard number of hours of working time: a full-time administrative assistant. full people in over 1,400 offices in 106 countries at the year end. It services over 300 of the Fortune Global 500 companies, over one-half of Nasdaq 100, over 30 of the Fortune e-50, and approximately 333 national or multi-national clients in three or more disciplines. More than 130 clients are served in four disciplines and these clients account for over 50% of Group revenues. The Group also works with over 100 clients in six or more countries. These statistics reflect the increasing opportunities for developing client relationships between activities nationally, internationally and by function. The Group estimates that over 35% of new assignments in the year were generated through the joint development of opportunities by two or more Group companies. New integration mechanisms, sensitive to global and local opportunities, including WPP global client leaders and country managers, continue to be developed. There is an increasing number of major client creative and integration opportunities at a Group level. The acquisition of Grey is subject to Grey share owner approval, to be held on 3 March and will be consolidated from the completion date of 7 March. Future prospects The world economy continued to grow in 2004, after the pickup Pickup A gain in yield made by selling one bond and buying another. Also referred to as "yield pickup." Notes: When the present yield is relatively low compared to the longer-term yields, pickups will be done by investors trying to increase the yield and duration of their in 2003, driven by the United States, Asia Pacific, Latin America, the Middle East, Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). and the CIS countries There are two lists concerning CIS countries:
Following this productivity improvement, the Group's margins at both the pre- pre- word element [L.], before (in time or space). pre- pref. 1. Earlier; before; prior to: prenatal. 2. and post- post- word element [L.], after; behind. post- pref. 1. After; later: postpartum. 2. Behind; posterior to: postaxial. incentive levels have improved significantly. In addition, given improved levels of operating profit and margin, incentive pools and variable staff costs have now been re-built, after being diminished di·min·ish v. di·min·ished, di·min·ish·ing, di·min·ish·es v.tr. 1. a. To make smaller or less or to cause to appear so. b. by the recession. This will improve operational gearing and flexibility in 2005 and beyond. The task of improving property utilisation continues to be a priority with a portfolio of approximately 14.5 million square feet worldwide. In December 2002, establishment cost as a percentage of revenue was 8.4%, with a goal of reducing this ratio to 7% in the medium term. At the end of 2003 the establishment cost to revenue ratio reduced to 7.9% and by December 2004 this ratio improved further to 7.6%, driven by better utilisation and higher revenues. There should be further opportunities to improve utilisation in the future, as we integrate 2.8 million square feet of property within Grey into the portfolio. As usual our budgets for 2005 have been prepared on a conservative basis, largely excluding new business, particularly in advertising and media investment management. They predict improvements in like-for-like revenues in the range of 3-4%, with balanced growth in the first and second half of the year. They also indicate similar growth for both advertising and marketing services revenues. We only have actual data for January in 2005, and this shows revenue well above last year, with like-for-like revenues up 6%. Estimated net new business billings so far in 2005 were very strong with over $600 million (including Grey) of net wins according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. trade publications. Worldwide economic conditions are set to continue to improve in 2005 - the only economic worry being whether twin deficits, commodity price inflation and the weak dollar might destabilise Verb 1. destabilise - become unstable; "The economy destabilized rapidly" destabilize change - undergo a change; become different in essence; losing one's or its original nature; "She changed completely as she grew older"; "The weather changed last night" the United States economy. This year's prospects, therefore, look okay, with worldwide advertising and marketing services spending set to rise by at least 2-3% with your company expected to grow at 3-4% and therefore increasing share. Although growth in the world economy continues to be led by Asia Pacific, Latin America, Africa and the Middle East, Russia and the CIS countries, even Western Europe looks set to continue the improvement seen in the second half of 2004, the United Kingdom especially so, given the imminent Impending; menacingly close at hand; threatening. Imminent peril, for example, is danger that is certain, immediate, and impending, such as the type an individual might be in as a result of a serious illness or accident. general election. 2006 should benefit from the mini-quadrennial impact of the mid-term United States Congressional elections, the FIFA FIFA International Association Football Federation [French Fédération Internationale de Football Association] FIFA n abbr (= Fédération Internationale de Football Association) → FIFA f World Cup and the Torino Torino: see Turin, Italy. Winter Olympics Olympics Sports medicine An international competition among (traditionally) nonprofessional athletes trained in a particular summer or winter sport, which is held every 4 yrs in a selected city. See Paralympics, Special Olympics, World Medical Games. . 2007 should also benefit from the build-up build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. to the United States Presidential Elections and the Beijing Beijing (bā-jĭng) or Peking (pē-kĭng, pā–), city (1994 est. urban pop. 6,093,300; 1994 est. total pop. 7,240,700), capital of the People's Republic of China. It is in central Hebei prov. Olympics in 2008, which, as a maxi-quadrennial year, should be a very strong one, buoyed by those events plus heavy United States political advertising and the European Football Championships. In the short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. , growth in advertising and marketing services expenditure may remain in low to medium single digit A single character in a numbering system. In decimal, digits are 0 through 9. In binary, digits are 0 and 1. digit - An employee of Digital Equipment Corporation. See also VAX, VMS, PDP-10, TOPS-10, DEChead, double DECkers, field circus. territory, given the low inflationary in·fla·tion·ar·y adj. Of, associated with, or tending to cause inflation: inflationary prices; inflationary policies. Adj. 1. environment, concentrating distribution and consequent con·se·quent adj. 1. a. Following as a natural effect, result, or conclusion: tried to prevent an oil spill and the consequent damage to wildlife. b. lack of pricing power Pricing Power An economic term referring to the effect that a change in a firm's product price has on the quantity demanded of that product. Pricing power ties in with the "Price Elasticity of Demand. . In this climate, procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. pressure continues and the increasing proportion of fee remuneration REMUNERATION. Reward; recompense; salary. Dig. 17, 1, 7. dampens revenue growth on cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. upturns (and moderates on downturns). However, there continues to be significant opportunities in the area of outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. clients' marketing activities, consolidating client budgets and capitalising on competitive weaknesses. In addition, spending amongst the packaged goods Noun 1. packaged goods - groceries that are packaged for sale foodstuff, grocery - (usually plural) consumer goods sold by a grocer plural, plural form - the form of a word that is used to denote more than one , pharmaceutical, oil and energy, government (the government is the largest advertiser ad·ver·tise v. ad·ver·tised, ad·ver·tis·ing, ad·ver·tis·es v.tr. 1. To make public announcement of, especially to proclaim the qualities or advantages of (a product or business) so as to increase in the UK market) and price-value retail sectors, which remained relatively resilient See resiliency. in the recession of 2001 and 2002, have been buttressed but·tress n. 1. A structure, usually brick or stone, built against a wall for support or reinforcement. 2. Something resembling a buttress, as: a. The flared base of certain tree trunks. b. by increased activity in previously recession-affected sectors like technology, financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , media and entertainment and tele-communications. In the long-term, the outlook appears very favourable. Overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. of production in most sectors and the shortage of human capital, the developments in new technologies and media, the growth in importance of internal communications  This article's grammar usage needs improvement. Please edit this article in accordance with Wikipedia's . , the continued strength of the United States
economy and the need to influence distribution, underpin the need for
our clients to continue to differentiate differentiate /dif·fer·en·ti·ate/ (dif?er-en´she-at)1. to distinguish, on the basis of differences. 2. to develop specialized form, character, or function differing from that surrounding it or from the original. their products and services both tangibly tan·gi·ble adj. 1. a. Discernible by the touch; palpable: a tangible roughness of the skin. b. Possible to touch. c. and intangibly. Moreover, the growth of the BRICs (Brazil, Russia, India and China) economies, will add significant opportunities in Asia Pacific, Latin America, Africa and the Middle East and Central and Eastern Europe The term "Central and Eastern Europe" came into wide spread use, replacing "Eastern bloc", to describe former Communist countries in Europe, after the collapse of the Iron Curtain in 1989/90. . Advertising and marketing services expenditure as a proportion of gross national products should resume its growth and bust through the cyclical high established in 2000. Given these short-term and long-term trends, your Company has three strategic priorities. In the short-term, having weathered the recession, to capitalise Verb 1. capitalise - supply with capital, as of a business by using a combination of capital used by investors and debt capital provided by lenders capitalize on the 2004 up-turn; in the medium-term, to continue to integrate successfully the mergers with Y&R and Grey; and finally, in the long-term, to continue to develop its businesses in the faster-growing geographical ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge areas of Asia Pacific, Latin America, Africa and the Middle East, and Central and Eastern Europe and in the faster-growing functional areas of marketing services, particularly direct, internet, interactive and market research. Incentive plans for 2005 will again focus more on operating profit growth than historically, in order to stimulate stimulate /stim·u·late/ (stim´u-lat) to excite functional activity. stim·u·late v. To arouse a body or a responsive structure to increased functional activity. top-line growth, although objectives will continue to include operating margin improvement, improvement in staff costs to revenue ratios and qualitative qualitative /qual·i·ta·tive/ (kwahl´i-ta?tiv) pertaining to quality. Cf. quantitative. qualitative pertaining to observations of a categorical nature, e.g. breed, sex. Group objectives, including co-ordination, talent management and succession planning Management Succession Planning In organizational development, succession planning is the process of identifying and preparing suitable employees through mentoring, training and job rotation, to replace key players — such as the chief executive officer (CEO) — . In these circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , there is no reason to believe that the Group cannot improve upon the revised objective set after the announcement of the acquisition of Grey of achieving margins of 14.0% in 2005 and 14.5% in 2006. Your Board now believes that the Group can improve its operating margins to a minimum of 14.3% this year, and 14.8% in 2006, including Grey. Budgets for 2005 include this operating margin objective. Neither is there any reason why operating margins could not be improved beyond this level by continued focus on revenue growth and careful husbandry husbandry careful management of e.g. animals. Implies thrifty, humane, caring. See also animal husbandry. of costs. Our ultimate objective continues to be to achieve a 20% margin over a period of time and to improve the return on capital employed Return on capital employed (ROCE) Indicator of profitability of the firm's capital investments. Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short-term loans minus intangible assets). . Increasingly, WPP is concentrating on its mission of the "management of the imagination", and ensuring it is a big company with the heart and mind of a small one. To aid the achievement of this objective and to develop the benefits of membership in the Group for both clients and our people, the parent company continues to develop its activities in the areas of human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. , property, procurement, information technology and practice development. Ten practice areas which span all our brands have been developed initially in media investment management, healthcare, privatisation Noun 1. privatisation - changing something from state to private ownership or control denationalisation, denationalization, privatization social control - control exerted (actively or passively) by group action , new technologies, new faster growing markets, internal communications, retailing, entertainment and media, financial services and hi-tech hi-tech adj. Variant of high-tech. hi-tech Adjective using sophisticated, esp. electronic, technology Adj. 1. and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. . Beyond the Numbers An announcement of this kind contains a bewildering be·wil·der tr.v. be·wil·dered, be·wil·der·ing, be·wil·ders 1. To confuse or befuddle, especially with numerous conflicting situations, objects, or statements. See Synonyms at puzzle. 2. number of numbers. Those numbers are there because they have to be there - and on this occasion, they are almost universally positive. It has been a very good year. But numbers, while telling an important truth, can sometimes disguise Disguise Dishonesty (See DECEIT.) Abigail enters nunnery as convert to retrieve money. [Br. Lit.: The Jew of Malta] Achilles disguised as a woman to avoid conscription. [Gk. the true dynamic of a company. In the case of WPP, that dynamic is our people. Every piece of advice we give, every project we undertake, every advertisement ADVERTISEMENT. A 'notice' published either in handbills or in a newspaper. 2. The law in many instances requires parties to advertise in order to give notice of acts which are to be done; in these cases, the advertisement is in general equivalent to notice. we make, every design we complete, every idea we have: they are all hand made. No two are alike. Each springs from the brain, the experience, the skill and the imagination of WPP company professionals. The word creative is usually reserved for advertising and design; for words and pictures. But every single one of the tens of thousands of hand made ideas we produced last year - across all companies, all disciplines and all nations - had creativity as a core ingredient
An ingredient is something that forms part of a mixture (in a general sense). . That is what our clients look for - and that, in gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. quantities, is what they bought from us in 2004. Emerging from some thirty six months of unrelenting economic battering, our people seized seized (seised) n. 1) having ownership, commonly used in wills as "I give all the property of which I die seized as follows:...." 2) having taken possession of evidence for use in a criminal prosecution. 3) having taken property or a person by force. (See: seisin, seizure) the new opportunities and made the most of them. That all our numbers look so good is entirely due to their unswerving commitment and enviable en·vi·a·ble adj. So desirable as to arouse envy: "the enviable English quality of being able to be mute without unrest" Henry James. inventiveness Inventiveness Archimedes (287–212 B. C.) invented military engine which saved Syracuse. [Gk. Hist.: Hall, 31] Bell, Alexander Graham (1847–1922) inventor of telephone (1876). [Am. Hist. . We thank them all. 2004 was a very good year. 2005 will mark WPP's 20th birthday; and it should be an even better one. Further information: Sir Martin Sorrell ) Paul Richardson ) (44) 207 408 2204 Feona McEwan ) Fran Butera (1) 212 632 2235 Share owner web-site - www.wppinvestor.com This press release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially including adjustments arising from the annual audit by management and the company's independent auditors Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. . For further information on factors which could impact the company and the statements contained herein, please refer to public filings by the company with the Securities and Exchange Commission. The statements in this press release should be considered in light of these risks and uncertainties.
Appendix I
WPP GROUP PLC
Preliminary results for the year ended 31 December 2004
Unaudited preliminary consolidated profit & loss account for the year
ended 31 December 2004
Constant
Currency(3)
Notes 2004 2003
----------------------------------------------------------------------
GBPm GBPm +/(-)% +/(-)%
Turnover (gross
billings) 19,598.0 18,621.3 5.2 12.0
Cost of sales (15,298.5) (14,515.3) (5.4) (12.2)
----------------------------------------------------------------------
Revenue 4 4,299.5 4,106.0 4.7 11.4
Direct costs (225.1) (237.1) 5.1 1.0
----------------------------------------------------------------------
Gross profit 4,074.4 3,868.9 5.3 12.2
----------------------------------------------------------------------
Operating costs
excluding goodwill
amortisation and
impairment (3,514.8) (3,375.9) (4.1) (10.9)
Goodwill amortisation
and impairment -
subsidiaries 11 (75.0) (77.7) 3.5 3.5
----------------------------------------------------------------------
Operating costs (3,589.8) (3,453.6) (3.9) (10.6)
----------------------------------------------------------------------
Operating profit 484.6 415.3 16.7 25.8
Income from associates 48.1 40.5 18.8 23.5
Goodwill amortisation
and impairment -
associates 11 (3.5) (34.3) 89.8 89.8
----------------------------------------------------------------------
Profit on ordinary
activities before
interest, taxation and
fixed asset gains and
write-downs 529.2 421.5 25.6 35.6
Profits on disposal of
fixed assets 5 3.0 - - -
Amounts written off
fixed asset
investments 11 (5.0) - - -
----------------------------------------------------------------------
Net interest payable
and similar charges on
net borrowings (61.2) (60.1) (1.8) (6.9)
Net interest charges on
defined benefit
pension schemes (9.5) (11.5) 17.4 9.7
----------------------------------------------------------------------
Net interest payable
and similar charges (70.7) (71.6) 1.3 (4.3)
----------------------------------------------------------------------
Profit on ordinary
activities before
taxation 456.5 349.9 30.5 41.6
Taxation on profit on
ordinary activities 6 (140.2) (122.1) (14.8) (18.6)
----------------------------------------------------------------------
Profit on ordinary
activities after
taxation 316.3 227.8 38.8 54.8
Minority interests (24.0) (19.4) (23.7) (30.5)
----------------------------------------------------------------------
Profit attributable to
ordinary share owners 292.3 208.4 40.3 57.2
Ordinary dividends 7 (92.0) (76.8) 19.8 19.8
----------------------------------------------------------------------
Retained profit for the
year 200.3 131.6 52.2 83.0
----------------------------------------------------------------------
Headline PBIT (1) 4 607.7 533.5 13.9 21.1
Headline PBIT (1)
margin 14.1% 13.0%
Headline PBT (1) 546.5 473.4 15.4 22.9
----------------------------------------------------------------------
Headline earnings per
share (2)
Basic earnings per
ordinary share 8 33.6p 29.8p 12.8 21.8
Diluted earnings per
ordinary share 8 32.3p 29.0p 11.4 20.2
----------------------------------------------------------------------
Standard earnings per
share
Basic earnings per
ordinary share 8 25.7p 18.7p 37.4 54.3
Diluted earnings per
ordinary share 8 25.0p 18.2p 37.4 53.7
======================================================================
(1) Headline PBIT: Profit on ordinary activities before interest,
taxation, goodwill amortisation and impairment and fixed asset
gains and write-downs. Headline PBT: Profit on ordinary
activities before taxation, goodwill amortisation and
impairment, fixed asset gains and write-downs and net interest
charges on defined benefit pension schemes. The calculations
of Headline PBIT and Headline PBT are presented in Appendix
IV.
(2) Headline earnings per ordinary share excludes goodwill
amortisation and impairment, fixed asset gains and write-downs
and net interest charges on defined benefit pension schemes.
The calculation of Headline earnings is presented in Appendix
IV.
(3) Constant currency is defined in Appendix IV
WPP GROUP PLC
Unaudited preliminary consolidated cash flow statement
for the year ended 31 December 2004
2003
Notes 2004 Restated(1)
----------------------------------------------------------------------
GBPm GBPm
Operating profit 484.6 415.3
Depreciation 103.4 127.5
Goodwill amortisation and impairment charges
- subsidiaries 75.0 77.7
Movements in working capital and provisions 27.0 321.5
----------------------------------------------------------------------
Net cash inflow from operating activities 690.0 942.0
Dividends received from associates 18.5 15.6
Returns on investments and servicing of
finance (73.3) (38.3)
United Kingdom and overseas tax paid (101.3) (93.6)
Capital expenditure and financial investment 9 (86.3) (85.2)
Acquisitions and disposals 9 (208.9) (344.5)
Equity dividends paid (81.7) (67.0)
----------------------------------------------------------------------
Net cash inflow before management of liquid
resources
and financing 157.0 329.0
Management of liquid resources 157.8 (211.4)
Net cash inflow from financing 9 52.8 116.8
----------------------------------------------------------------------
Increase in cash and overdrafts for the year 367.6 234.4
Translation difference (44.6) (19.3)
Balance of cash and overdrafts at beginning
of year 716.0 500.9
----------------------------------------------------------------------
Balance of cash and overdrafts at end of
year 1,039.0 716.0
----------------------------------------------------------------------
Reconciliation of net cash flow to movement
in net debt:
Increase in cash and overdrafts for the year 367.6 234.4
Cash (inflow)/ outflow from increase in
liquid resources (157.8) 211.4
Cash inflow from increase in debt financing (124.2) (24.3)
Debt acquired (9.6) -
Other movements (8.2) (9.4)
Translation difference (6.7) (50.9)
----------------------------------------------------------------------
Movement of net debt in the year 61.1 361.2
Net debt at beginning of year (361.5) (722.7)
----------------------------------------------------------------------
Net debt at end of year 10 (300.4) (361.5)
----------------------------------------------------------------------
(1) Restated on implementation of UITF 38 (Accounting for ESOP
Trusts).
Unaudited preliminary consolidated statement of total
recognised gains and losses for the year ended 31 December 2004
2004 2003
----------------------------------------------------------------------
GBPm GBPm
Profit for the year 292.3 208.4
Exchange adjustments on foreign currency net
investments 52.1 74.8
Actuarial (loss)/gain on defined benefit pension
schemes in accordance with FRS17 (Retirement Benefits) (18.2) 14.0
Deferred tax on defined benefit pension schemes 3.3 10.0
----------------------------------------------------------------------
Total recognised gains and losses relating to the year 329.5 307.2
----------------------------------------------------------------------
WPP GROUP PLC
Unaudited preliminary consolidated balance sheet
as at 31 December 2004
2003
Notes 2004 Restated(1)
----------------------------------------------------------------------
GBPm GBPm
Fixed assets
Intangible assets:
Corporate brands 950.0 950.0
Goodwill 4,845.7 4,710.3
Tangible assets 333.8 344.6
Investments 389.3 381.5
----------------------------------------------------------------------
6,518.8 6,386.4
Current assets
Stocks and work in progress 220.6 269.6
Debtors 12 2,677.6 2,394.5
Trade debtors within working capital
facility:
Gross debts 545.7 507.5
Non-returnable proceeds (261.0) (280.4)
-----------------------
284.7 227.1
Current asset investments
(short-term bank and escrow deposits) 244.0 401.8
Cash at bank and in hand 1,372.0 1,018.1
----------------------------------------------------------------------
4,798.9 4,311.1
Creditors: amounts falling due within one
year 13 (5,220.0) (4,902.0)
----------------------------------------------------------------------
Net current liabilities (421.1) (590.9)
----------------------------------------------------------------------
Total assets less current liabilities 6,097.7 5,795.5
Creditors: amounts falling due after more
than one year
(including convertible bonds) 14 (1,852.6) (1,691.1)
Provisions for liabilities and charges (91.2) (99.7)
----------------------------------------------------------------------
Net assets excluding pension provision 4,153.9 4,004.7
Pension provision (187.8) (188.9)
----------------------------------------------------------------------
Net assets including pension provision 3,966.1 3,815.8
----------------------------------------------------------------------
Capital and reserves
Called up share capital 118.5 118.7
Share premium account 1,002.2 955.3
Shares to be issued 49.9 130.0
Merger reserve 2,920.6 2,921.0
Other reserves (125.5) (178.9)
Own shares(2) (277.7) (307.8)
Profit and loss account 226.5 129.4
----------------------------------------------------------------------
Equity share owners' funds 16 3,914.5 3,767.7
Minority interests 51.6 48.1
----------------------------------------------------------------------
Total capital employed 3,966.1 3,815.8
----------------------------------------------------------------------
(1) Restated on implementation of UITF 38 (Accounting for ESOP
Trusts).
(2) Investments in own shares held by the ESOP Trusts.
WPP GROUP PLC
Notes to the unaudited preliminary consolidated financial statements
(Notes 1-16)
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 and have been prepared using the
accounting policies set out on s 112 to 114 of the Group's 2003
Annual Report and Accounts. No changes have been made to the
accounting policies since this time other than the adoption of UITF 38
(Accounting for ESOP Trusts).
UITF 38 requires the classification of the cost of shares held by the
Group's ESOP trusts as a deduction from share owners' funds;
previously these were shown within fixed asset investments.
Additionally, UITF 38 has changed the method of calculating the charge
to the profit and loss account arising from certain of the Group's
incentive plans, satisfied by the award of shares in the Group from
one of the ESOPs. Previously, this charge was based on the cash cost
to the Group of acquiring these shares in the open market, to be
subsequently delivered to individuals on satisfactory completion of
the performance criteria relating to the award. Under UITF 38, this
charge should be based upon the intrinsic value (market value) of the
shares at grant date.
Following the implementation of UITF 38, the Group has restated its
balance sheet and cash flow statement for the year ended 31 December
2003 and preceding periods. There was no material impact on the profit
and loss account for the year ended 31 December 2003.
The policies set out in the 2003 Annual Report and Accounts are in
accordance with applicable accounting standards in the United Kingdom
(UK GAAP).
Statutory Information
The financial information for the years ended 31 December 2004 or 2003
does not constitute the company's statutory accounts. The financial
information for the year ended 31 December 2003 is derived from the
statutory accounts for that year which have been delivered to the
Registrar of Companies. The auditors reported on those accounts; their
report was unqualified and did not contain a statement under s237 (2)
or (3) Companies Act 1985. The statutory accounts for the year ended
31 December 2004 will be finalised on the basis of the financial
information presented by the directors in this unaudited preliminary
announcement and will be delivered to the Registrar of Companies
following the company's annual general meeting. The audit report for
the year ended 31 December 2004 has yet to be signed.
The preliminary announcement was approved by the board of directors on
24 February 2005.
3. Currency conversion
The 2004 unaudited preliminary consolidated profit and loss account is
prepared using, among other currencies, an average exchange rate of
US$1.8326 to the pound (2003: US$1.6356). The unaudited preliminary
consolidated balance sheet as at 31 December 2004 has been prepared
using the exchange rate on that day of US$1.9158 to the pound (2003:
US$1.7833).
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 the average exchange rate for the year
ended 31 December 2004 of EUR1.4739 to the pound (year ended 31
December 2003: EUR1.4450). The unaudited preliminary consolidated
balance sheet at 31 December 2004 has been prepared using the exchange
rate on 31 December 2004 of EUR1.4133 to the pound (31 December 2003:
EUR1.4198).
The basis for calculating the constant currency percentage changes,
shown on the face of the unaudited preliminary consolidated profit and
loss account, is presented in Appendix IV.
WPP GROUP PLC
Notes to the unaudited preliminary consolidated financial statements
(continued)
4. Segmental analysis
Reported contributions by geographical area were as follows:
2004 2003 +/(-)%
----------------------------------------------------------------------
GBPm GBPm
Revenue
North America 1,651.9 1,678.7 (1.6)
United Kingdom 728.5 664.9 9.6
Continental Europe 1,134.8 1,079.4 5.1
Asia Pacific, Latin America, Africa & Middle
East 784.3 683.0 14.8
----------------------------------------------------------------------
4,299.5 4,106.0 4.7
----------------------------------------------------------------------
Headline PBIT(1)
North America 262.6 247.8 6.0
United Kingdom 81.9 71.8 14.1
Continental Europe 141.2 121.8 15.9
Asia Pacific, Latin America, Africa & Middle
East 122.0 92.1 32.5
----------------------------------------------------------------------
607.7 533.5 13.9
----------------------------------------------------------------------
Reported contributions by operating sector were as follows:
2004 2003 +/(-)%
----------------------------------------------------------------------
GBPm GBPm
Revenue
Advertising and Media investment
management(2) 1,985.3 1,911.2 3.9
Information, insight and consultancy 744.8 703.6 5.9
Public relations and public affairs(2) 445.2 450.9 (1.3)
Branding and identity, Healthcare and
Specialist communications 1,124.2 1,040.3 8.1
----------------------------------------------------------------------
4,299.5 4,106.0 4.7
----------------------------------------------------------------------
Headline PBIT(1)
Advertising and Media investment
management(2) 319.0 291.7 9.4
Information, insight and consultancy 73.9 50.0 47.8
Public relations and public affairs(2) 62.4 58.8 6.1
Branding and identity, Healthcare and
Specialist communications 152.4 133.0 14.6
----------------------------------------------------------------------
607.7 533.5 13.9
----------------------------------------------------------------------
(1) Headline PBIT: Profit on ordinary activities before interest,
taxation, goodwill amortisation and impairment and fixed asset
gains and write-downs. The calculation of Headline PBIT is
presented in Appendix IV.
(2) In 2004 certain of the Group's public relations and public
affairs businesses, which were historically included in
Advertising and Media investment management, have been moved
to Public relations and public affairs. As a result the
comparative figures for both Advertising and Media investment
management and Public relations and public affairs have been
restated to reflect this change.
WPP GROUP PLC
Notes to the unaudited preliminary consolidated financial statements
(continued)
5. Profits on disposal of fixed assets
The net profit on disposal of fixed assets comprised:
2004 2003
----------------------------------------------------------------------
GBPm GBPm
Net profit on disposal of investments 3.0 -
----------------------------------------------------------------------
3.0 -
----------------------------------------------------------------------
In 2004, profits were realised on the disposal of certain minority
investments in marketing services companies in North America.
Amounts written off fixed asset investments of GBP5.0 million in 2004
related to write-downs on a number of non-core minority investments in
new media companies and other technology ventures.
These transactions did not have a material effect on the Group's tax
charge in 2004.
The Group has released GBP14.0 million (2003: GBP12.0 million) to
operating profit relating to excess provisions established in respect
of acquisitions completed prior to 2003. At the same time, the Group
includes within operating costs charges for one-off costs, severance
and restructuring charges, including those resulting from integrating
acquisitions. For this reason, the Group considers that the
combination of the above releases and charges, when taken together,
does not materially impact the Group's quality of earnings.
6. Taxation
The Group tax rate on headline PBT(1) is 25.7% (2003: 25.8%). The tax
charge comprises:
2004 2003
----------------------------------------------------------------------
GBPm GBPm
Total current tax 132.0 116.2
Total deferred tax (9.7) (8.7)
Share of associates tax 17.9 14.6
----------------------------------------------------------------------
Total tax on profits 140.2 122.1
----------------------------------------------------------------------
(1) Headline PBT: Profit on ordinary activities before taxation,
goodwill amortisation and impairment and fixed asset gains and
write-downs and net interest charges on defined benefit
pension schemes. The calculation of Headline PBT is presented
in Appendix IV.
WPP GROUP PLC
Notes to the unaudited preliminary consolidated financial statements
(continued)
7. Ordinary dividends
The Board has recommended a final dividend of 5.28p (2003: 4.40p) per
ordinary share. In addition to the interim dividend paid of 2.50p
(2003: 2.08p) per ordinary share, this makes a total for the year of
7.78p (2003: 6.48p) per ordinary share. The final dividend is expected
to be paid on 4 July 2005 to share owners on the register at 3 June
2005.
2004 2003
----------------------------------------------------------------------
Ordinary dividend per share -
interim 2.50p 2.08p
final 5.28p 4.40p
----------------------------------------------------------------------
7.78p 6.48p
----------------------------------------------------------------------
Ordinary dividend per ADR(1) -
interim 22.9(cents) 17.0(cents)
final 48.4(cents) 36.0(cents)
----------------------------------------------------------------------
71.3(cents) 53.0(cents)
----------------------------------------------------------------------
(1) These figures have been translated for convenience purposes
only, using the profit and loss exchange rates shown in note
3. This translation should not be construed as a
representation that the pound sterling amounts actually
represent, or could be converted into, US dollars at the rates
indicated.
8. Earnings per share
Basic and diluted earnings per share have been calculated in
accordance with FRS14 "Earnings per Share".
Headline basic earnings per share have been calculated using earnings
of GBP292.3 million (2003: GBP208.4 million), and adjusted for
goodwill amortisation and impairment, fixed asset gains and
write-downs and net interest charges on defined benefit pension
schemes of GBP90 million (2003: GBP123.5 million). The weighted
average number of shares in issue used was 1,136,132,685 shares (2003:
1,115,319,576 shares).
Headline diluted earnings per share have been calculated using
earnings of GBP304.5 million (2003: GBP208.4 million) and adjusted for
goodwill amortisation and impairment, fixed asset gains and
write-downs and net interest charges on defined benefit pension
schemes of GBP90 million (2003: GBP123.5 million). The weighted
average number of shares in issue used was 1,219,588,084 shares (2003:
1,145,014,508 shares). This takes into account potentially issuable
ordinary shares arising from the exercise of employee share options,
certain incentive schemes and convertible debt where these are
expected to dilute earnings. For the year ended 31 December 2004, both
the $287.5 million convertible loan note and the GBP450 million
convertible bond were dilutive and earnings were consequently adjusted
by GBP12.2 million. For the year ended 31 December 2003, both the
$287.5 million convertible loan note and the GBP450 million
convertible bond were accretive to earnings and therefore excluded
from the calculation.
Standard basic earnings per share have been calculated using earnings
of GBP292.3 million (2003: GBP208.4 million) and weighted average
shares in issue during the period of 1,136,132,685 shares
(2003:1,115,319,576 shares).
WPP GROUP PLC
Notes to the unaudited preliminary consolidated financial statements
(continued)
8. Earnings per share (continued)
Standard diluted earnings per share have been calculated using
earnings of GBP304.5 million (2003: GBP208.4 million). The weighted
average number of shares used was 1,219,588,084 shares (December 2003:
1,145,014,508 shares). This takes into account potentially issuable
ordinary shares arising from the exercise of employee share options,
certain incentive schemes and convertible debt where these are
expected to dilute earnings. For the year ended 31 December 2004, both
the $287.5 million convertible loan note and the GBP450 million
convertible bond were dilutive and earnings were consequently adjusted
by GBP12.2 million. For the year ended 31 December 2003, both the
$287.5 million convertible loan note and the GBP450 million
convertible bond were accretive to earnings and therefore excluded
from the calculation.
At 31 December 2004 there were 1,185,338,038 ordinary shares in issue.
Basic and diluted earnings per ADR have been calculated below using
the same method as earnings per share, multiplied by a factor of 5.
Constant
Currency(3)
Earnings per ADR 2004 2003 +/(-)% +/(-)%
----------------------------------------------------------------------
Headline earnings per ADR (1,2)
Basic earning per ADR $3.08 $2.43 26.7 21.8
Diluted earnings per ADR $2.96 $2.37 24.9 20.2
----------------------------------------------------------------------
Standard earnings per ADR (1)
Basic earnings per ADR $2.35 $1.53 53.6 54.3
Diluted earnings per ADR $2.29 $1.49 53.7 53.7
----------------------------------------------------------------------
(1) These figures have been translated for convenience purposes
only, using the profit and loss exchange rates shown in note
3. This translation should not be construed as a
representation that the pound sterling amounts actually
represent, or could be converted into, US dollars at the rates
indicated.
(2) Headline earnings per ADR excludes goodwill amortisation and
impairment, fixed asset gains and write-downs and net interest
charges on defined benefit pension schemes.
(3) Constant currency is defined in Appendix IV.
WPP GROUP PLC
Notes to the unaudited preliminary consolidated financial statements
(continued)
9. Analysis of non-operating cash flows
The following tables analyse the items included within the main cash
flow headings on 14:
2003
2004 Restated(1)
GBPm GBPm
----------------------------------------------------------------------
Capital expenditure and financial investment
Purchase of tangible fixed assets (95.6) (93.9)
Proceeds from sale of tangible assets 9.3 8.7
----------------------------------------------------------------------
(86.3) (85.2)
----------------------------------------------------------------------
Acquisition and disposals
Cash consideration for acquisition of Cordiant - (207.9)
Proceeds from disposal of interest in Zenith
Optimedia Group - 75.0
Net cash acquired - Cordiant - 37.8
Initial cash consideration for other acquisitions (97.3) (70.1)
Earnout payments (78.6) (56.2)
Loan note redemptions (26.6) (38.7)
Net cash acquired - other acquisitions 6.3 5.3
Purchases of other investments (including
associates) (22.0) (100.7)
Proceeds from disposal of other investments
(including associates) 9.3 11.0
----------------------------------------------------------------------
(208.9) (344.5)
----------------------------------------------------------------------
Net cash inflow from financing
Proceeds from issue of $650 million 10 year bond 358.2 -
Repayment of EUR 350 million bond (230.5) -
Increase in drawings on bank loans 0.9 25.0
Financing and share issue costs (5.0) (3.4)
Share placement - 100.2
Proceeds from other issue of shares 17.9 18.1
Share cancellations (including brokerage fees) (73.7) (20.2)
Purchase of own shares by ESOP Trusts (15.0) (2.9)
----------------------------------------------------------------------
52.8 116.8
----------------------------------------------------------------------
(1) Restated on implementation of UITF 38 (Accounting for ESOP
Trusts).
WPP GROUP PLC
Notes to the unaudited preliminary consolidated financial statements
(continued)
10. Net debt
2004 2003
----------------------------------------------------------------------
GBPm GBPm
Cash at bank and in hand 1,372.0 1,018.1
Current asset investments 244.0 401.8
Bank loans and overdrafts due within one year
(note 13) (597.8) (552.4)
Corporate bond and loans due after one year
(note 14) (1,318.6) (1,229.0)
----------------------------------------------------------------------
Net debt (300.4) (361.5)
----------------------------------------------------------------------
During the year, the Group completed the issue of $650 million of
5.875% coupon bonds due June 2014. Proceeds from the issue were used
to assist in the repayment of the EUR350 million bond in June 2004 and
the Young & Rubicam convertible bond in January 2005.
Current asset investments represents cash on deposit with a maturity
of greater than 24 hours.
There are no investor put options on any outstanding debt instruments.
11. Goodwill and acquisitions
During the year, the Group charged GBP42.5 million (2003: GBP33.0
million) of goodwill amortisation and GBP36.0 million (2003: GBP79.0
million) of goodwill impairment to the profit and loss account, a
total of GBP78.5 million (2003: GBP112.0 million).
The impairment charge relates to a number of under-performing
businesses in the Public relations and public affairs, Information,
insight and consultancy, and Branding and identity, Healthcare and
Specialist communications sectors. The impact of the current economic
climate on these businesses is sufficiently severe to indicate an
impairment to the carrying value of goodwill.
The directors continue to assess the useful life of goodwill arising
on acquisitions. Goodwill of GBP649.8 million is subject to
amortisation over periods of between 10 and 20 years.
Goodwill in relation to subsidiary undertakings increased by GBP135.4
million in the year. Other than amortisation and impairment this
includes both goodwill arising on acquisitions completed in the year
and also adjustments to goodwill relating to acquisitions completed in
prior years. Goodwill in relation to associate undertakings increased
by GBP15.7 million in the year.
Acquisitions of subsidiary and associated undertakings contributed
revenue of GBP63.6 million, operating profit of GBP12.9 million and
profit on ordinary activities before interest, taxation, fixed asset
gains and write-downs of GBP18.9 million.
Future anticipated payments to vendors in respect of both deferred and
earnout obligations totalled GBP298.6 million (year ended 31 December
2003: GBP215.7 million). Earnouts are based on the directors' best
estimates of future obligations, which are dependent on the future
performance of the interests acquired and assume the operating
companies improve profits in line with directors' estimates.
WPP GROUP PLC
Notes to the unaudited preliminary consolidated financial statements
(continued)
12. Debtors
The following are included in debtors:
2004 2003
----------------------------------------------------------------------
GBPm GBPm
Trade debtors outside working capital
facility 2,058.5 1,883.4
Prepayments and accrued income 188.4 159.5
Deferred tax 76.6 70.0
Other debtors 354.1 281.6
----------------------------------------------------------------------
2,677.6 2,394.5
----------------------------------------------------------------------
The deferred tax asset is regarded as recoverable since, based on all
available evidence, including forecasts of profit, it is more likely
than not there will be suitable taxable profits from which the future
reversal of the underlying timing differences can be deducted.
13. Creditors: amounts falling due within one year
The following are included in creditors falling due within one year:
2003
2004 Restated(1)
----------------------------------------------------------------------
GBPm GBPm
Bank loans and overdrafts 597.8 552.4
Trade creditors 2,885.3 2,733.3
Corporate income tax payable 53.1 29.5
Dividend proposed 62.6 52.2
Deferred income 405.8 391.9
Payments due to vendors 146.6 81.6
Loan notes due to vendors 7.2 13.9
Other creditors and accruals 1,061.6 1,047.2
----------------------------------------------------------------------
5,220.0 4,902.0
----------------------------------------------------------------------
(1) Restated on implementation of UITF 38 (Accounting for ESOP
Trusts).
Overdraft balances included within bank loans and overdrafts amount to
GBP333.0 million (31 December 2003: GBP302.1 million).
14. Creditors: amounts falling due after more than one year
The following are included in creditors falling due after more than
one year:
2004 2003
----------------------------------------------------------------------
GBPm GBPm
Corporate and convertible bonds and bank
loans 1,318.6 1,229.0
Corporate income tax payable 290.6 268.7
Payments due to vendors 152.0 134.1
Other creditors and accruals 91.4 59.3
----------------------------------------------------------------------
1,852.6 1,691.1
----------------------------------------------------------------------
WPP GROUP PLC
Notes to the unaudited preliminary consolidated financial statements
(continued)
14. Creditors: amounts falling due after more than one year
(continued)
The following table sets out payments due to vendors, comprising
deferred consideration and the directors' best estimates of future
earnout payments:
2004 2003
----------------------------------------------------------------------
GBPm GBPm
Within one year 146.6 81.6
Between 1 and 2 years 65.0 60.9
Between 2 and 3 years 61.0 32.4
Between 3 and 4 years 3.4 37.0
Between 4 and 5 years 21.4 3.8
Over 5 years 1.2 -
----------------------------------------------------------------------
298.6 215.7
----------------------------------------------------------------------
The corporate and convertible bonds, bank loans and overdrafts
included within short and long term creditors fall due for repayment
as follows:
2004 2003
----------------------------------------------------------------------
GBPm GBPm
Within one year 597.8 552.4
Between 1 and 2 years 2.5 273.1
Between 2 and 3 years 453.3 -
Between 3 and 4 years 510.9 443.4
Between 4 and 5 years - 512.5
Over 5 years 351.9 -
----------------------------------------------------------------------
1,916.4 1,781.4
----------------------------------------------------------------------
15. Contingent liabilities in respect of option agreements
WPP has entered into agreements with certain share owners of partially
owned subsidiaries and associate companies to acquire additional
equity interests. These agreements typically contain options requiring
WPP to purchase their shares at specified times up to 2009 on the
basis of average earnings both before and after the exercise of the
option.
All arrangements contain clauses that cap the maximum amount payable
by WPP. The table below shows the illustrative amounts that would be
payable by WPP in respect of these options, on the basis of the
relevant companies' current financial performance, if all the options
had been exercised at 31 December 2004.
Currently Not Currently
Exercisable Exercisable Total
----------------------------------------------------------------------
GBPm GBPm GBPm
Subsidiaries 10.1 32.5 42.6
Associates 2.7 6.6 9.3
----------------------------------------------------------------------
Total 12.8 39.1 51.9
----------------------------------------------------------------------
WPP GROUP PLC
Notes to the unaudited preliminary consolidated financial statements
(continued)
16. Reconciliation of movements in consolidated share owners' funds
2003
2004 Restated(1)
----------------------------------------------------------------------
GBPm GBPm
Profit for the year 292.3 208.4
Ordinary dividends payable (92.0) (76.8)
----------------------------------------------------------------------
200.3 131.6
Exchange adjustments on foreign currency net
investments 52.1 74.8
Ordinary shares issued in respect of
acquisitions - 16.9
Share placement - 100.2
Share issue costs and brokerage fees charged to
share premium account or reserves (0.8) (2.8)
Other share issues 32.8 18.1
Share cancellations (73.6) (20.2)
Adjustment to pre-1998 goodwill written off to
reserves 3.2 1.3
Actuarial (loss)/gain on defined benefit schemes (18.2) 14.0
Deferred tax on defined benefit pension schemes 3.3 10.0
Net disposals of own shares by ESOP Trusts 15.0 4.4
Transfer of shares to be issued and merger
reserves to goodwill (67.3) -
----------------------------------------------------------------------
Net additions to equity share owners' funds 146.8 348.3
Opening equity share owners' funds 3,767.7 3,419.4
----------------------------------------------------------------------
Closing equity share owners' funds 3,914.5 3,767.7
----------------------------------------------------------------------
(1) Restated on implementation of UITF 38 (Accounting for ESOP
Trusts).
Appendix II
WPP GROUP PLC
Unaudited preliminary consolidated profit & loss account for the year
ended 31 December 2004 Presented in Euros
for illustrative purposes only(3)
2004 2003
----------------------------------------------------------------------
EURm EURm
Turnover (gross billings) 28,885.5 26,907.8
Costs of sales (22,548.5) (20,974.6)
----------------------------------------------------------------------
Revenue 6,337.0 5,933.2
Direct Costs (331.8) (342.6)
----------------------------------------------------------------------
Gross Profit 6,005.2 5,590.6
----------------------------------------------------------------------
Operating costs excluding goodwill
amortisation and impairment (5,180.5) (4,878.2)
Goodwill amortisation and impairment -
subsidiaries (110.5) (112.3)
----------------------------------------------------------------------
Operating costs (5,291.0) (4,990.5)
----------------------------------------------------------------------
Operating profit 714.2 600.1
Income from associates 70.9 58.5
Goodwill amortisation and impairment -
associates (5.1) (49.5)
----------------------------------------------------------------------
Profit on ordinary activities before
interest, taxation and fixed asset gains and
write-downs 780.0 609.1
Profits on disposal of fixed assets 4.4 -
Amounts written off fixed asset investments (7.4) -
----------------------------------------------------------------------
Net interest payable and similar charges on
net borrowings (90.2) (86.9)
Net interest charges on defined benefit
pension schemes (14.0) (16.6)
----------------------------------------------------------------------
Net interest payable and similar charges (104.2) (103.5)
----------------------------------------------------------------------
Profit on ordinary activities before taxation 672.8 505.6
Taxation on profit on ordinary activities (206.6) (176.4)
----------------------------------------------------------------------
Profit on ordinary activities after taxation 466.2 329.2
Minority interests (35.4) (28.0)
----------------------------------------------------------------------
Profit attributable to ordinary share owners 430.8 301.2
Ordinary dividends (135.6) (111.0)
----------------------------------------------------------------------
Retained profit for the year 295.2 190.2
----------------------------------------------------------------------
Headline PBIT (1) 895.6 770.9
Headline PBIT (1) margin 14.1% 13.0%
Headline PBT (1) 805.4 684.1
----------------------------------------------------------------------
Headline earnings per share (2)
Basic earnings per ordinary share 49.5(cents) 43.1(cents)
Diluted earnings per ordinary share 47.6(cents) 41.9(cents)
----------------------------------------------------------------------
Standard earnings per share
Basic earnings per ordinary share 37.9(cents) 27.0(cents)
Diluted earnings per ordinary share 36.8(cents) 26.3(cents)
(1) Headline PBIT: Profit on ordinary activities before interest,
taxation, goodwill amortisation and impairment and fixed asset
gains and write-downs. Headline PBT: Profit on ordinary
activities before taxation, goodwill amortisation and
impairment, fixed asset gains and write-downs and net interest
charges on defined benefit pension schemes. The calculations
of Headline PBIT and Headline PBT are presented in Appendix
IV.
(2) Headline earnings per ordinary share exclude goodwill
amortisation and impairment, fixed asset gains and write-downs
and net interest charges on defined benefit pension schemes.
(3) These figures have been translated for convenience purposes
only, using the profit and loss exchange rate shown in Note 3
of Appendix I.
WPP GROUP PLC
Unaudited preliminary consolidated balance sheet
as at 31 December 2004
Presented in Euros for illustrative purposes only(1)
2003
2004 Restated(2)
----------------------------------------------------------------------
EURm EURm
Fixed assets
Intangible assets:
Corporate brands 1,342.6 1,348.8
Goodwill 6,848.4 6,687.7
Tangible assets 471.8 489.3
Investments 550.2 541.6
----------------------------------------------------------------------
9,213.0 9,067.4
Current assets
Stocks and work in progress 311.8 382.8
Debtors 3,784.3 3,399.7
Trade debtors within working capital facility:
Gross debts 771.2 720.5
Non-returnable proceeds (368.9) (398.1)
-----------------------
402.3 322.4
Current asset investments (short-term bank and
escrow deposits) 344.8 570.5
Cash at bank and in hand 1,939.1 1,445.5
----------------------------------------------------------------------
6,782.3 6,120.9
Creditors: amounts falling due within one
year (7,377.4) (6,959.9)
----------------------------------------------------------------------
Net current liabilities (595.1) (839.0)
----------------------------------------------------------------------
Total assets less current liabilities 8,617.9 8,228.4
Creditors: amounts falling due after more than
one year
(including convertible bonds) (2,618.3) (2,401.0)
Provisions for liabilities and charges (129.0) (141.6)
----------------------------------------------------------------------
Net assets excluding pension provision 5,870.6 5,685.8
Pension provision (265.4) (268.2)
----------------------------------------------------------------------
Net assets including pension provision 5,605.2 5,417.6
----------------------------------------------------------------------
Capital and reserves
Called up share capital 167.5 168.5
Share premium account 1,416.4 1,356.3
Shares to be issued 70.5 184.6
Merger reserve 4,127.7 4,147.2
Other reserves (177.4) (254.0)
Own shares(3) (392.5) (437.0)
Profit and loss account 320.1 183.7
----------------------------------------------------------------------
Equity share owners' funds 5,532.3 5,349.3
Minority interests 72.9 68.3
----------------------------------------------------------------------
Total capital employed 5,605.2 5,417.6
----------------------------------------------------------------------
(1) These figures have been translated for convenience purposes
only, using the balance sheet exchange rate shown in Note 3 of
Appendix I.
(2) Restated on implementation of UITF 38 (Accounting for ESOP
Trusts).
(3) Investments in own shares held by the ESOP Trusts.
Appendix III
WPP GROUP PLC
To present the impact of FRS 20 (IFRS 2) Share-based Payment, for
illustrative purposes only Unaudited preliminary pro form a
consolidated profit and loss account
for the year ended 31 December 2004
2004 2003
----------------------------------------------------------------------
GBPm GBPm
Turnover (gross billings) 19,598.0 18,621.3
Cost of sales (15,298.5) (14,515.3)
----------------------------------------------------------------------
Revenue
4,299.5 4,106.0
Direct costs (225.1) (237.1)
----------------------------------------------------------------------
Gross Profit 4,074.4 3,868.9
----------------------------------------------------------------------
Operating costs excluding goodwill amortisation
and impairment (3,514.8) (3,375.9)
Impact of FRS 20 Share-based Payment (28.9) (29.3)
Goodwill amortisation and impairment -
subsidiaries (75.0) (77.7)
----------------------------------------------------------------------
Operating costs (3,618.7) (3,482.9)
----------------------------------------------------------------------
Operating profit 455.7 386.0
Income from associates 48.1 40.5
Goodwill amortisation and impairment -
associates (3.5) (34.3)
----------------------------------------------------------------------
Profit on ordinary activities before interest,
taxation and fixed asset gains and write-downs 500.3 392.2
Profits on disposal of fixed assets 3.0 -
Amounts written off fixed asset investments (5.0) -
----------------------------------------------------------------------
Net interest payable and similar charges on net
borrowings (61.2) (60.1)
Net interest charges on defined benefit pension
schemes (9.5) (11.5)
----------------------------------------------------------------------
Net interest payable and similar charges (70.7) (71.6)
----------------------------------------------------------------------
Profit on ordinary activities before taxation 427.6 320.6
Taxation on profit on ordinary activities (138.2) (120.5)
----------------------------------------------------------------------
Profit on ordinary activities after taxation 289.4 200.1
Minority interests (24.0) (19.4)
----------------------------------------------------------------------
Profit attributable to ordinary share owners 265.4 180.7
Ordinary dividends (92.0) (76.8)
----------------------------------------------------------------------
Retained profit for the year 173.4 103.9
----------------------------------------------------------------------
Headline PBIT (1) 578.8 504.2
Headline PBIT (1) margin 13.5% 12.3%
Headline PBT (1) 517.6 444.1
----------------------------------------------------------------------
Headline earnings per share (2)
Basic earnings per ordinary share 31.3p 27.3p
Diluted earnings per ordinary share 30.1p 26.6p
----------------------------------------------------------------------
Standard earnings per share
Basic earnings per ordinary share 23.4p 16.2p
Diluted earnings per ordinary share 22.8p 15.8p
----------------------------------------------------------------------
Headline earnings per ADR (2,3)
Basic earnings per ADR $2.87 $2.23
Diluted earnings per ADR $2.76 $2.18
----------------------------------------------------------------------
Standard earnings per ADR (3)
Basic earnings per ADR $2.14 $1.32
Diluted earnings per ADR $2.09 $1.29
======================================================================
(1) Headline PBIT: Profit on ordinary activities before interest,
taxation, goodwill amortisation and impairment, fixed asset
gains and write-downs. Headline PBT: Profit on ordinary
activities before taxation, goodwill amortisation and
impairment, fixed asset gains and write-downs and net interest
charges on defined benefit pension schemes.
(2) Headline earnings per ordinary share and ADR excludes goodwill
amortisation and impairment, fixed asset gains and write-downs
and net interest charges on defined benefit pension schemes.
(3) These figures have been translated for convenience purposes
only, using the profit and loss exchange rates shown in Note 3
of Appendix I.
Appendix III (continued)
WPP GROUP PLC
FRS 20 (IFRS 2) Share-based Payment - illustrative charge
WPP will be required to charge the fair value of stock-based
compensation (including share options) to its income statement from
2005. Appendix III includes an unaudited pro forma consolidated profit
and loss account to illustrate the impact of this change, which arises
from the implementation of FRS 20 (IFRS 2) Share-based Payment.
The resulting charge has been derived from a Black Scholes valuation
model and applying it to relevant share incentive schemes on a fully
retrospective basis, so the 2004 charge arises from grants in 2004 and
prior years, fully expensed over the appropriate vesting period. The
impact of these changes on Headline PBIT margin for 2004 would be to
reduce it by 0.6 margin points (2003: 0.7 margin points).
Appendix IV
WPP GROUP PLC
Reconciliation of profit on ordinary activities before interest,
taxation and fixed asset gains and write-downs to PBIT for the year
ended 31 December 2004
2004 2003
----------------------------------------------------------------------
GBPm GBPm
Profit on ordinary activities before interest,
taxation and fixed asset gains and write-downs 529.2 421.5
Goodwill amortisation and impairment 78.5 112.0
----------------------------------------------------------------------
Headline PBIT 607.7 533.5
----------------------------------------------------------------------
Net interest payable and similar charges 70.7 71.6
----------------------------------------------------------------------
Interest cover on Headline PBIT 8.6 times 7.5 times
----------------------------------------------------------------------
2004 2003
----------------------------------------------------------------------
GBPm GBPm
Interest cover (excluding FRS 17 interest) on
Headline PBIT
Headline PBIT 607.7 533.5
Net interest payable and similar charges on net
borrowings 61.2 60.1
----------------------------------------------------------------------
Interest cover (excluding FRS 17 interest) on
Headline PBIT 9.9 times 8.9 times
----------------------------------------------------------------------
Reconciliation of profit on ordinary activities before taxation
to PBT and headline earnings for the year ended 31 December 2004
2004 2003
----------------------------------------------------------------------
GBPm GBPm
Profit on ordinary activities before taxation 456.5 349.9
Goodwill amortisation and impairment 78.5 112.0
Profits on disposal of fixed assets (3.0) -
Amounts written off fixed asset investments 5.0 -
Net interest charges on defined benefit pension
schemes 9.5 11.5
----------------------------------------------------------------------
Headline PBT 546.5 473.4
Taxation on profit on ordinary activities (140.2) (122.1)
Minority interests (24.0) (19.4)
----------------------------------------------------------------------
Headline earnings 382.3 331.9
----------------------------------------------------------------------
Ordinary dividends 92.0 76.8
----------------------------------------------------------------------
Dividend cover on headline earnings 4.2 times 4.3 times
----------------------------------------------------------------------
WPP GROUP PLC
Segmental margin analysis
Reported margins by geographical area were as follows:
Headline
Revenue PBIT(1) Margin (%)
----------------------------------------------------------------------
GBPm GBPm
North America 1,651.9 262.6 15.9
United Kingdom 728.5 81.9 11.2
Continental Europe 1,134.8 141.2 12.4
Asia Pacific, Latin America, Africa
& Middle East 784.3 122.0 15.6
----------------------------------------------------------------------
4,299.5 607.7 14.1
----------------------------------------------------------------------
Reported margins by operating sector were as follows:
Headline
Revenue PBIT(1) Margin (%)
----------------------------------------------------------------------
GBPm GBPm
Advertising and Media investment
management 1,985.3 319.0 16.1
Information, insight and consultancy 744.8 73.9 9.9
Public relations and public affairs 445.2 62.4 14.0
Branding and identity, Healthcare and
Specialist communications 1,124.2 152.4 13.6
----------------------------------------------------------------------
4,299.5 607.7 14.1
----------------------------------------------------------------------
Reported margins before and after income from associates were as
follows:
Margin (%) 2004 Margin (%) 2003
----------------------------------------------------------------------
GBPm GBPm
Revenue 4,299.5 4,106.0
Headline PBIT 14.1 607.7 13.0 533.5
----------------------------------------------------------------------
Income from associates 48.1 40.5
----------------------------------------------------------------------
Headline PBIT excluding
income from associates 13.0 559.6 12.0 493.0
----------------------------------------------------------------------
(1) Headline PBIT: Profit on ordinary activities before interest,
taxation, goodwill amortisation and impairment and fixed asset
gains and write-downs. The calculation of Headline PBIT is
presented above.
WPP GROUP PLC
Reconciliation of free cash flow for the year ended 31 December 2004
2004 2003
----------------------------------------------------------------------
GBPm GBPm
Net cash inflow from operating activities 690.0 942.0
Plus:
Dividends received from associates 18.5 15.6
Proceeds from the issue of shares(1) 17.9 18.1
Proceeds from sale of tangible fixed assets 9.3 8.7
Proceeds from disposal of investments(2) 9.3 11.0
Less:
Movements in working capital and provisions (27.0) (321.5)
Purchase of tangible fixed assets (95.6) (93.9)
UK and overseas tax paid (101.3) (93.6)
Returns on investments and servicing of finance (73.3) (38.3)
----------------------------------------------------------------------
Free Cash Flow 447.8 448.1
----------------------------------------------------------------------
(1) Excludes GBP100.2 million of proceeds from share placement in
June 2003.
(2) Excludes proceeds from disposal of interest in Zenith
Optimedia Group in August 2003.
WPP GROUP PLC
GLOSSARY AND BASIS OF PREPARATION
Average net debt
Average net debt is calculated as the average daily net bank
borrowings of the Group, derived from the Group's automated banking
system. Net debt at a year end is calculated as the sum of the net
bank borrowings of the Group, derived from the cash ledgers and
accounts in the balance sheet.
Constant currency
The Group uses US dollar-based, constant currency models to measure
performance. These are calculated by applying constant exchange rates
to local currency reported results for the current and prior year.
This gives a US dollar - denominated income statement and balance
sheet which exclude any variances attributable to foreign exchange
rate movements.
Headline PBIT
Profit on ordinary activities before interest, taxation, goodwill
amortisation and impairment and fixed asset gains and write-downs.
Headline PBT
Profit on ordinary activities before taxation, goodwill amortisation
and impairment, fixed asset gains and write-downs and net interest
charges on defined benefit pension schemes.
Headline earnings
Headline PBT less taxation on profit on ordinary activities and
minority interests.
Operating margin
Headline PBIT as a percentage of revenue.
Estimated net new billings
Net new billings represent the estimated annualised impact on billings
(turnover) of new business gained from both existing and new clients,
net of existing client business lost. The estimated impact is based
upon initial assessments of the clients' media budget, which may not
necessarily result in actual billings of the same amount.
Pro forma ('like for like')
Pro forma comparisons are calculated as follows: current year actual
results on a constant currency basis (which include acquisitions from
the relevant date of completion) are compared with prior year actual
results, adjusted to include the results of acquisitions for the
commensurate period in the prior year. The Group uses the terms 'pro
forma' and 'like for like' interchangeably.
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