Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on WPP PLC. We currently have 12 research reports from 4 professional analysts.
|22Mar17 17:21||RNS||Transaction in Own Shares|
|21Mar17 17:53||RNS||Transaction in Own Shares|
|20Mar17 17:47||RNS||Transaction in Own Shares|
|20Mar17 08:30||RNS||Mirum agrees to acquire 3Ti Solutions in China|
|20Mar17 07:00||RNS||Transaction in Own Shares|
|16Mar17 14:30||RNS||Grey takes majority stake in Bruketa&Zinic,Croatia|
|15Mar17 17:20||RNS||Transaction in Own Shares|
Frequency of research reports
Research reports on
06 Mar 17
Risk? What risk? Gold, the ultimate hedge against global uncertainty and rising inflation, on Friday fell to its lowest level since mid-February as a previously resilient market buckled under the rising expectation of an imminent hike in US interest rates. Fed Chair, Janet Yellen, added to such expectations on Friday predicting the pace of tightening was likely to accelerate in 2017. So what should we be worried about? Most certainly, inflation is back all around the globe, even in Japan, the most obvious economy beset with a long-term declining trend. The big question now is whether it will stick around and what damage could it do? It marks a turnaround from a year ago, when the word 'deflation' was closer to economists' lips. And historically, it has taken nine months for currency weakness to show up in inflation readings, which is the concern that possibly forms a recurring nightmare for Governor Carney and the reason why the markets a likely to be surprised with his aggression when he finally attacks the problem, even if he is brave enough to defer his first move into 2018. Asia probably is less concerned, given that pressures will moderate this year as the effects of government stimulus fades and Beijing turns its attention to damping-down asset bubbles. What about politics? Europe is, of course, the loose cannon here. Beaufort's formal opinion is that while the Eurozone is living on borrowed time, its calamity is more likely be the major talking point of 2018, rather than this year. Significantly, a poll released on Friday ahead of France's first round of its Presidential election on 23rd April, suggests Mr. Juppe could win the first round with 26.5%, ahead of Emmanuel Macron on 25% and Ms. Le Pen on 24%, although market researcher Odoxa notes that all three candidates are within a three-point margin of error. Should it be wrong, of course, a win for the National Front would likely accelerate the Eurozone's anticipated implosion, with the 27 counties then possibly separating into two separate lists of members; one being a 'Greater Germany' which would sustain some form of the Euro, the other being 'Club Med', whose members instead are forced to revert to their legacy currencies, suffering effective 20% plus devaluations in the process. Sitting aloof from all this right now is Chancellor Hammond who, basking in the glow of Sterling's Brexit-enforced devaluation, is preparing to reveal a sharp rise in this year's economic forecasts at Wednesday's Budget. He is expected to say that growth is set to rise above 2% in 2017. Although clearly not preparing for any significant give-away at this time, a near £12bn improvement in public borrowing compared with his Autumn Statement reflects surprising momentum over the past six months, even if February's weak service sector data released last week did look ominous. This morning, London is seen edging slightly lower, with the FTSE-100 expected down 5 to 10 points in opening trade, following just fractional gains amongst the US's three principal indices on Friday. A lacklustre Asia mostly put in modest gains, despite the Chinese government cutting its growth target to its lowest level in over two decades, although the Nikkei did fall into sharply the red after missiles being tested by fractious neighbour, North Korea, fell into its territorial waters. The only important macro data due to release today comes from the EU, which will publish its Sentix Investor Confidence survey for March and the US which provides Factory Orders for January. The UK is due to release earnings or trading updates this morning from second-liners including Devro (DVO.L), Harworth Group (HWG.L) and Plant Impact (PIM.L), although the traders will be more urgently seeking confirmation regarding weekend leaks that Aberdeen Asset Management (ADN.L) and Standard Life (SL..L) have agreed terms for a merger.
A more cautious picture going forward...
03 Mar 17
WPP reported solid FY16 results, in line with our expectations, with reported revenues (including the full impact of digital billings, i.e. linked to acquiring digital media space on its own account) up 17.6% to £14,389m (AV was £41,441m). This was after +4.2% from acquisitions, +10.8% from forex (sterling weakness; only c.15% of revenues in the UK) and +3% organic growth. Net sales (after direct costs, i.e. a better indicator for underlying performance, although not used by competitors…) rose by 17.4% to £12,398m (+3.1% organic). The headline OP amounted to £2,160m (+21.8%; +8.5% at CER), reflecting an operating margin of 17.4% of net sales (AV was 17.3%), up 50bp from FY15 but 20bp at CER, i.e. under last October’s target of +30bp at CER. The headline diluted EPS rose by 20.9% (+7.7% at CER) to 113.2p, 2% above our 111p forecast, while the proposed final dividend is raised 28.7% to 37.05p (implying a total dividend of 56.6p versus our 53.2p expectations, up 26.7% with a payout ratio raised from 47.7% in FY15 to 50%). Management highlighted an “above budget start” to the year with organic revenue up 1.5% in January (against a strong comparison basis: +4.2% in January 2015) but the cautious top-line organic guidance appears disappointing at only “around +2%”. Positively, the headline operating margin on net sales target is, as usual, for an 30bp improvement at CER.
01 Nov 16
"A flat to marginally positive market is seen for London this morning, with the blue-chip FTSE-100 expected to open up in excess of 15 points. With just a week before election day, politics remained the dominating talking point, with experts declaring that incriminating emails cited by the FBI in their probe into Hillary Clinton's exchanges could be uncovered in the next few days, while she continues to insist there is no case to answer. This kept the markets in a generally nervous mood, with all principal US indices closing fractionally down to cap a disappointing month during which the S&P-500 fell by 1.9% while the NASDAQ lost 2.3%. Asia was in a slightly better mood, with both the Hang Seng and the Shanghai Composite receiving a lift from better than expected official manufacturing PMI data from China, with the index rising to 51.2 for October, up from 50.4 in September, thereby beating expectations for the third straight month. By contrast Japan was in a more sombre mood, having shifted back its target date for achieving a level of 2% inflation from 2017 to 2018 following recent data, although the central bank still left its short-term interest rate target for commercial bank deposits at 0.1%. This left Japan with a fractional loss for the day, while the ASX gave back most of yesterday's gains through weaker commodity plays and financials as the Reserve Bank of Australia left interest rates unchanged at 1.5%. Today both the UK and the US are due to due to release manufacturing PMI figures, while the results season in full swing with a large number of corporates being scheduled to release earning or trading updates this morning, including BP (BP..L), Hastings Group (HSTG.L), MoneySupermarket (MONY.L), Royal Dutch Shell (RDSA.L), Shire (SHP.L), Standard Chartered (STAN.L), Virgin Money (VM..L) and Weir (WEIR.L)." - Barry Gibb, Research Analyst
Continuing to deliver satisfactorily
31 Oct 16
WPP reported Q3 revenue (including the full impact of digital billings, i.e. linked to acquiring digital media space on its own account) up 23.4% to £3,611m, a 3.2% organic improvement (after +4.3% in H1 16 but on a stronger basis of comparison) and after +4.4% from acquisitions and +15.8% from forex (sterling weakness; only c.14% of revenues in the UK). Net sales were up by 2.8% organically to £3,114m (H1 16: +3.8%). For the 9 month period, consolidated revenues rose by 3.9% organically and net sales by 3.4%. Not reporting its full results at this stage, WPP nonetheless specified that the 9 months operating margin was up by 40bp on a reported basis (+30bp at CER) with staff costs being well under control. The target for +30bp at CER for the full-year was reiterated (with an additional 10bp boost likely from forex), despite the traditional caution on Q4. The group still expects like-for-like revenue and net sales growth up by over 3%.
A more than ever credible positive FY16e guidance
25 Aug 16
WPP reported revenue (including the full impact of digital billings, i.e. linked to acquiring digital media space on its own account) up 11.9% to £6.54bn, a 4.3% organic improvement (similar to H1 15’s performance) and after a +3% forex impact (sterling weakness as only 14% generated in the UK) and +4.6% coming from acquisitions. Net sales were up 3.8% organically (were +3.2% over Q1), with a reported figure of +11% after forex (+2.9%) and perimeter impact (+4.3%). The reported net sales margin reached 13.7%, up 40bp on the same period last year (+30bp at CER), increasing the credibility of the +30bp full-year target at CER despite the tougher economic environment. The headline diluted EPS rose by 16.7% to 39.1p while the interim dividend is raised 22.9% to 19.55p (i.e. a pay-out ratio of 50% from 47% in H1 15, ahead of the FY17 target). July’s net sales growth rose by 1.9% like-for-like (or +3.5% for the first seven months), i.e. ahead of budget with the UK being “stronger than the previous quarter” (maybe a post-Brexit vote recovery according to CEO Martin Sorrell who, nonetheless, still considers the country might fall into recession). The FY16e guidance is for revenue growth “well over 3%” (raised from “over 3%”) and net sales growth “over 3%” with a slightly weaker H2 than H1 (high basis of comparison + clients remaining cautious).
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
Small Cap Breakfast
21 Mar 17
First Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march. Tufton Oceanic Assets- The Company intends to invest in a diversified portfolio of second hand commercial sea-going vessels where the Investment Manager believes that an attractive opportunity exists in shipping. $150m raise. Admission 3 April.
Small Cap Breakfast
23 Mar 17
K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march.
21 Mar 17
NAHL has a track record of being highly innovative around changes in regulation and we believe the changing personal injury landscape presents an opportunity to build market share. The recent strategy statement provides forecast benchmarks to base long term investment decisions. Whilst the shares are up 21% over the last month, valuations remain very modest with a FY17 PE of just 6.5x and a dividend yield of 10.4%. We believe the shares are meaningfully oversold and expect a recovery bounce to over 200p short term.
Mission on track
23 Mar 17
The mission has again posted good growth in revenue and earnings, with both increasing by 8%, well ahead of FY16 ad spend at 4.4% (WARC). FY17 forecasts are unchanged. Start-ups and acquisitions are adding to the mission’s reach and breadth, increasing opportunities for cross-selling to the loyal client base (20% of revenues are from 20-year+ relationships). Margins should improve as recent start-ups move into profit and investment in technology and software products translate into sales and profit. The shares trade on an overly large discount.