Home Business NewsBusinessWPP shares soar after growth in post-Sorrell period

WPP shares soar after growth in post-Sorrell period

by LLB Editor
25th Oct 19 9:21 am

Advertising giant WPP saw its share price jump 5.3% to 967.6p – sending its stock to the top of the FTSE 100 – after reporting a return to organic sales growth in the third quarter.

AJ Bell said: “The turnaround at the advertising giant WPP appears to be gaining some traction. Once you strip out the Kantar market research business, in which shareholders approved the sale of a majority stake yesterday, like-for-like sales were up 1.9% in the third quarter.

โ€œThis positive showing comes after having been firmly in negative territory on this measure in the first and second quarters and despite a weak performance at some of its global peers of late.

โ€œIf the company was minded to put its skillset towards marketing these numbers it would have quite a lot to work with.

โ€œInstead chief executive Mark Read, who, probably quite sensibly, has made a habit of keeping expectations in check since taking over in the wake of founder Martin Sorrellโ€™s messy departure last year, is at it again this morning.

โ€œHe warns of twists and turns along the way as guidance for 2019 โ€“ outlining a drop in like-for-like revenue โ€“ is maintained.

โ€œOnce a business with lots of moving parts, Read has simplified the structure, bringing more focus to a smaller number of more potent agency brands. This approach has been rewarded with some major client wins including Mondelez and Ebay.

โ€œRead had always signalled 2019 would be a year of consolidation and the progress he has made means he has credit in the bank with investors. However, the company will likely face a higher bar in 2020.โ€

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