6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the Month of September 2020

Commission File Number: 001-38303

WPP PLC

(Translation of registrant’s name into English)

Sea Containers, 18 Upper Ground, London, United Kingdom, SE1 9GL

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  ☒                        Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Explanatory Note

WPP plc (the “Company”) and certain of its subsidiaries, including WPP Finance 2010, WPP 2005 Limited and WPP Jubilee Limited, may from time to time file registration statements for the registration of securities that may from time to time be offered by WPP Finance 2010 or other subsidiaries of the Company with guarantees of WPP plc, WPP 2005 Limited and WPP Jubilee Limited and, to the extent so indicated in an applicable prospectus supplement or otherwise established following the offer and sale of a series of debt securities, guarantees of other entities. The Company is filing this report on Form 6-K for the purpose of presenting its results for the six months ended 30 June 2020 in a format that can be incorporated by reference into any such registration statement.

Forward-Looking Statements

In connection with the provisions of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”), the Company may include forward-looking statements (as defined in the Reform Act) in oral or written public statements issued by or on behalf of the Company. These forward-looking statements may include, among other things, plans, objectives, projections and anticipated future economic performance based on assumptions and the like that are subject to risks and uncertainties. As such, actual results or outcomes may differ materially from those discussed in the forward-looking statements. Important factors that may cause actual results to differ include but are not limited to: the unanticipated loss of a material client or key personnel, delays or reductions in client advertising budgets, shifts in industry rates of compensation, regulatory compliance costs or litigation, natural disasters or acts of terrorism, the Company’s exposure to changes in the values of major currencies other than the UK pound sterling (because a substantial portion of its revenues are derived and costs incurred outside of the United Kingdom) and the overall level of economic activity in the Company’s major markets (which varies depending on, among other things, regional, national and international political and economic conditions and government regulations in the world’s advertising markets). In addition, you should consider the risks described in Item 3D, captioned “Risk Factors”, in the Company’s Form 20-F for the year ended 31 December 2019, which could also cause actual results to differ from forward-looking information. In light of these and other uncertainties, the forward-looking statements included in the oral or written public statements should not be regarded as a representation by the Company that the Company’s plans and objectives will be achieved.

The Company undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

EXHIBIT INDEX

Exhibit No.	Description
1	Operating and Financial Review for the period ended 30 June 2020
2	Unaudited Condensed Consolidated Interim Financial Statements of WPP plc for the six months ended 30 June 2020 and 2019 and the year ended 31 December 2019
	(i)	Unaudited condensed consolidated interim income statement for the six months ended 30 June 2020 and 2019 and the year ended 31 December 2019
	(ii)	Unaudited condensed consolidated interim statement of comprehensive income for the six months ended 30 June 2020 and 2019 and the year ended 31 December 2019
	(iii)	Unaudited condensed consolidated interim cash flow statement for the six months ended 30 June 2020 and 2019 and the year ended 31 December 2019
	(iv)	Unaudited condensed consolidated interim balance sheet as at 30 June 2020 and 2019 and 31 December 2019
	(v)	Unaudited condensed consolidated interim statement of changes in equity for the six months ended 30 June 2020, 31 December 2019 and 30 June 2019
	(vi)	Notes to the unaudited condensed consolidated interim financial statements

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	WPP PLC
	(Registrant)
Date: 3 September 2020	By:	/s/ Balbir Kelly-Bisla
		Balbir Kelly-Bisla
		Company Secretary

EX-99.1

Exhibit 1

Operating and Financial Review for the period ended 30 June 2020

Six months ended June 2020 compared with six months ended June 2019

Introduction

Certain Non-GAAP measures included in this operating and financial review have been derived from amounts calculated in accordance with IFRS but are not themselves IFRS measures. They should not be viewed in isolation as alternatives to the equivalent IFRS measure, rather they should be read in conjunction with the equivalent IFRS measure. These include constant currency, pro-forma (‘like-for-like’), headline operating profit, headline PBIT (Profit Before Interest and Taxation), headline PBT (Profit Before Taxation), billings, free cash flow, and net debt and average net debt, which we define, explain the use of and reconcile to the nearest IFRS measure on pages 13 to 16.

Management believes that these measures are both useful and necessary to present herein because they are used by management for internal performance analyses; the presentation of these measures facilitates comparability with other companies, although management’s measures may not be calculated in the same way as similarly titled measures reported by other companies; and these measures are useful in connection with discussions with the investment community.

First half overview

Introduction

After two months in which our strategic progress could be measured by growth outside Greater China, the second quarter saw an inevitable downturn, albeit better than our expectations. Assuming there is no second wave nor major lockdowns, the second quarter is expected to be the toughest period of the year, although we remain cautious on the speed of recovery.

Our strategic transformation remains on track but as COVID-19 accelerates the change in our sector, we are accelerating our plans. We continue to attract new talent, invest in technology and ecommerce, and train our people in the skills they need for the future, with more than 20,000 receiving accreditations from Adobe, Amazon, Facebook, Google and Salesforce this year.

We are working with our clients to help them get back to business, adapt their marketing strategies at speed and reshape their operations for a new world. Brands are seeing increases in online sales of 100% and more, and we are supporting eight of our top ten clients on ecommerce strategies. Our new business record is industry-leading, at $4 billion in the first half, including wins from Intel, HSBC and Unilever, and our pipeline remains strong.

As at 30 June 2020 we had cash of £2.5 billion and total liquidity, including undrawn credit facilities, of £4.7 billion. With £4.7 billion of liquidity thanks to the Kantar transaction, and as we deliver against our cost savings targets, our financial position remains strong. As a result, we are able to return to paying our dividend, with an interim dividend of 10p for 2020.

Performance and progress

Revenue in the first half was £5.6 billion, down from £6.4 billion in the first half of 2019. We started the year strongly, building on the progress made over the course of 2019, returning to like-for-like growth in revenue outside Greater China in January and February, and landing a number of valuable new business wins. Since March, the environment has inevitably been more challenging, but we have responded positively as an organisation, supporting our people, staying closer than ever to clients and working with a number of partners to protect our communities. Our financial performance has been less geared to client media expenditure than in previous cycles, reflecting the broader spread of marketing services we now provide, as well as an ongoing shift to resource-driven revenue models and away from commission on media investment.

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The nature and delivery of our client work has evolved significantly. Most of our major clients required rapid support in developing relevant communications, with new campaigns being developed in days rather than months. Our investment in production through Hogarth, combining leading-edge technology with a wide geographical footprint, has been a strong differentiator in this regard. We have also been working with clients to re-plan their communications spend, redirecting resources to alternative channels and maximising their media return on investment. Work on ecommerce and omnichannel services has also ramped up significantly, with ongoing ecommerce engagements with 8 of our top 10 clients.

Our PR businesses have held up relatively well (revenue less pass-through costs -3.6% and like-for-like revenue less pass-through costs -4.5% in the first half), as clients have sought advice on how to engage with their own stakeholders. We expect future demand for our experience, commerce and technology services to be very strong, with clients looking to adapt rapidly to permanent changes in consumer behaviour. On the other hand, we have seen pressure on some project-based work in branding and identity as clients look to cut costs.

Our new business performance has continued to be very strong, In the first half we won almost $4 billion of new business, with very few assignment losses, and this is testament to the success of our new strategy: WPP now has fewer, stronger agency brands working better together. We are seeing very strong levels of collaboration across WPP, with most pitches involving multi-agency teams with strong co-ordination and support from the client, new business and technology expertise we are building in the centre. Key wins included Intel (global creative), HSBC (global creative), Unilever (China media) and WW (global integrated creative and media).

Our sector exposure has also delivered a more resilient performance. Within our top 200 clients, 56% of revenue comes from companies in the consumer packaged goods, technology and healthcare & pharma sectors, which were the least impacted by COVID-19. Their combined revenue growth in the first half was -0.6%. Within retail, financial services, telecom, media & entertainment and other clients, representing 22%, revenue growth was -4.9%. The sectors which suffered the most – automotive, luxury & premium and travel & leisure, which together comprise 22% of top 200 client income – saw a revenue decline of 12.9%.

Our commitment to creativity also continues to be reflected in the industry recognition our campaigns attract. In June, WPP was ranked the most effective marketing communications company in the world in the 2020 Effie Index. It is the ninth successive year that WPP has received this award. The Index, the world’s most comprehensive global ranking of marketing effectiveness, lists companies that create the most effective marketing and communications ideas in terms of measurable business results for clients. In the same month, the Cannes Lions International Festival of Creativity named WPP as holding company of the decade, in global rankings to recognise those companies which have demonstrated the greatest sustained creative excellence, based on winning and shortlisted work over the last 10 years.

We also continued to be recognised in independent research evaluation. In its March 2020 report, Gartner included four WPP agencies (AKQA, Ogilvy, VMLY&R and Wunderman Thompson) in its Magic Quadrant for Global Marketing Agencies, rating AKQA highest globally for both vision and execution.

Update to COVID-19 response

The significant majority of our people have been working remotely since March, with some recent re-opening of offices at reduced capacity in certain countries, involving very strict hygiene and social distancing protocols. As outlined above, we have ensured strong continuity of service to clients at a time when the need for our services and expertise has been greater than ever.

The latest level of office-based working in our main markets is as follows: US 1%, UK 3%, Germany 17%, China 77% and India 0%.

We have continued to work with clients, governments, national health organisations and NGOs to help limit the impact of COVID-19 on society, including our multi-agency support for the World Health Organization on a pro

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bono basis, delivering global and regional public awareness campaigns to encourage people to stay at home and adopt safe behaviours.

We have also successfully maintained the financial resilience of the business from both a liquidity and cost perspective. We raised over £900 million in the bond markets in May, and at 30 June 2020 had total liquidity of £4.7 billion. Our working capital position has improved year-on-year as a result of increased focus and discipline.

We have generally not applied for government support in response to COVID-19, although in some markets funding has been applied automatically. We did not use the UK Government funded Job Retention Scheme. In total we have received £29 million of funding, none of which related to the UK or US, and have also benefited from the deferral of certain taxes under local initiatives available to all companies in the countries concerned. These benefits are described in more detail in Exhibit 2.

Impairments of £2.7 billion (including £2.5 billion of goodwill impairments and £0.2 billion of investment and other write-downs) were recognised in the first half. The goodwill impairments relate to historical acquisitions whose carrying values have been reassessed in light of the impact of COVID-19. The impairments are driven by a combination of higher discount rates used to value future cash flows, a lower profit base in 2020 and lower industry growth rates.

On 31 March 2020, we announced the suspension of the 2019 final dividend of 37.3p per share and the share buyback funded by proceeds from the Kantar transaction. At the time, given the high level of uncertainty, the Board’s view was that preserving liquidity and maintaining lower leverage were the key financial priorities, and these two actions together provided WPP with additional liquidity of £1.1 billion.

Since then, the Board has continued to review the impact of COVID-19 on operational performance and liquidity, as well as the medium-term outlook for the broader economy. While impacted by the economy, our performance in the second quarter was much better than initially anticipated.

Review of Group results from continuing operations

Revenue

Revenue from continuing operations was down 12.3% at £5.6 billion. Revenue on a constant currency basis was down 12.4% compared with last year. Net changes from acquisitions and disposals had a negative impact of 0.9% on growth, leading to a like-for-like performance, which excludes the impact of currency and acquisitions, of -11.5%. Billings were £20.9 billion, down 17.5%, and down 16.8% like-for-like. In the second quarter, revenue was down 19.0% and like-for-like revenue was down 18.4%, reflecting the impact of COVID-19 on economic activity.

Costs of services, general and administrative costs

Costs of services decreased by 9.8% in the first half of 2020 to £4,805 million from £5,329 million in the first half of 2019. General and administrative costs increased by 629.3% in the first half of 2020 to £3.2 billion from £443 million in the first half of 2019.

The main areas of cost reduction were in travel and discretionary expenditure (down 47%), property costs (down 5%) and staff costs (down 5%). Impairments of £2.7 billion (including £2.5 billion of goodwill impairments and £0.2 billion of investment and other-write downs) were recognized in the first half of 2020. The goodwill impairments relate to historical acquisitions whose carrying values have been reassessed in light of the impact of

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COVID-19. The impairments are driven by a combination of higher discount rates used to value future cash flows, a lower profit base in 2020 and lower industry growth rates. The majority of the impairments relate to businesses acquired as part of the Y&R acquisition in 2000. A full analysis of the impairments is provided in note 14 of Exhibit 2.

In the first half of 2020, the Group generated £16 million of gains on disposals of investments and subsidiaries, offset by losses including the Group’s share of associate company exceptional losses (£51 million) and restructuring and transformation costs (£57 million). The majority of the latter comprise severance costs arising from the continuing structural review of parts of the Group’s operations and our response to the COVID-19 situation. This compares with gains of £65 million, primarily relating to the gains on disposal of investments and subsidiaries and the gain on sale of freehold property in New York, offset by restructuring and transformation costs (£34 million) and share of associate company exceptional losses (£14 million) in the first half of 2019.

Operating profitability

Operating loss was £2.5 billion, compared to an operating profit of £596 million. Headline operating profit was down 38.1% to £382 million, and down 37.8% like-for-like. The sharp decline in profitability year-on-year reflects the sudden and significant impact of COVID-19 on revenue. The difference between the headline operating profit and operating loss reflecting principally the £2.7 billion of impairment charges and £57 million of restructuring and transformation costs.

The Group’s headline operating profit is after charging £19 million of severance costs, compared with £16 million in the first half of 2019 and £48 million of incentive payments, compared to £95 million in the first half of 2019.

On a like-for-like basis, the average number of people in the Group, in the first half was 105,000 compared to 106,000 in the first half of 2019. On the same basis, the total number of people, at 30 June 2020 was 101,000 compared to 106,000 at 30 June 2019. The decrease reflects a combination of voluntary leavers whose roles were not replaced as part of the hiring freeze, and redundancies. Wherever possible, the preservation of our workforce continues to be a priority.

Interest and taxes

Net finance costs, finance and investment income less finance costs (excluding the revaluation of financial instruments), were £106 million, a decrease of £32 million year-on year primarily as a result of lower average net debt.

The tax rate on loss before tax was -0.9% (2019: 26.7%). The difference in the rate in 2020 is principally due to impairments.

Earnings and dividend

Loss before tax was £2.6 billion, compared to a profit of £409 million in the prior period, reflecting principally the £2.7 billion of impairment charges and £57 million of restructuring and transformation costs. Headline profit before tax was down 44.2% at £276 million, and down 45.8% like-for-like.

Loss after tax was £2.6 billion compared to a profit last year of £300 million. Losses attributable to share owners were £2.6 billion, again reflecting principally the £2.7 billion of impairments and £92 million of exceptional losses noted above.

Diluted loss per share from continuing operations was 214.5p, compared to earnings per share of 21.4p in the prior period.

In March 2020, we announced the Board’s decision to suspend the 2019 final dividend of 37.3p per share to protect liquidity in light of the threat to liquidity and cash flow from the COVID-19 impact. The Board has now decided to cancel this dividend to contribute towards lower leverage.

For 2020, the Board is declaring an interim dividend of 10p. The record date for the interim dividend is 9 October 2020, and the dividend will be payable on 6 November 2020.

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Regional review

The following tables give details of revenue and revenue less pass-through costs by region, as well as revenue and revenue less pass-through costs growth by region for the second quarter and first half of 2020. Headline operating profit by region is provided in note 7 of Exhibit 2.

Revenue analysis

	Three months ended 30 June 2020		Reported change three months ended 30 June 2020			Like-for-like change three months ended 30 June 2020			Six months ended 30 June 2020		Reported change six months ended 30 June 2020			Like-for-like change six months ended 30 June 2020
Continuing operations	£m								£m
N. America		1,076		-11.5	%		-12.7	%		2,177		-6.7	%		-7.6	%
United Kingdom		347		-27.3	%		-24.9	%		758		-16.5	%		-14.0	%
W. Cont. Europe		531		-20.8	%		-21.6	%		1,093		-13.5	%		-13.5	%
AP, LA, AME, CEE1		782		-22.8	%		-20.1	%		1,555		-16.5	%		-13.8	%
Total Group		2,736		-19.0	%		-18.4	%		5,583		-12.3	%		-11.5	%

Note

¹  Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe

Revenue less pass-through costs¹ analysis

	Three months ended 30 June 2020		Reported change three months ended 30 June 2020			Like-for-like change three months ended 30 June 2020			Six months ended 30 June 2020		Reported change six months ended 30 June 2020			Like-for-like change six months ended 30 June 2020
Continuing operations	£m								£m
N. America		918		-8.7	%		-10.2	%		1,856		-4.9	%		-6.1	%
United Kingdom		272		-24.5	%		-23.3	%		586		-15.4	%		-14.2	%
W. Cont. Europe		453		-18.0	%		-18.8	%		920		-11.7	%		-11.7	%
AP, LA, AME, CEE2		659		-18.6	%		-14.8	%		1,306		-13.7	%		-10.1	%

Notes

¹  Revenue less pass-through costs is revenue less media and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media costs. See note 4 to the consolidated financial statements for more details of the pass-through costs

²  Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe

North America like-for-like revenue less pass-through costs was down 6.1% in the first half and down 10.2% in the second quarter. This reflects a good start to the year, before the impact of COVID-19 began to be felt from March. Our improved new business performance in 2019, and good momentum at VMLY&R which grew in the US in both the first half and the second quarter, led to the strongest regional performance across the Group. Specialist Agencies underperformed the overall North America performance, reflecting weakness in the automotive and travel sectors, as well as weaker performances across a number of smaller agencies. Our PR businesses outperformed, and were only slightly down year-on-year.

United Kingdom like-for-like revenue less pass-through costs was down 14.2% in the first half and down 23.3% in the second quarter. Performance overall reflected the extent of the lockdown in the second quarter, as well as a strong performance in the comparable period. VMLY&R was a relative outperformer, but all of our Global Integrated Agencies declined over the period. PR held up better than the other business segments, but was still down significantly year-on-year.

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Western Continental Europe like-for-like revenue less pass-through costs was down 11.7% in the first half and down 18.8% in the second quarter. Of the larger markets, France, Italy and the Netherlands were particularly hard-hit in the second quarter, Germany was relatively resilient and Spain traded in line with the region as a whole. Denmark, where we have a commerce and technology centre of excellence, grew in the first half and second quarter.

In Asia Pacific, Latin America, Africa & the Middle East and Central & Eastern Europe, like-for-like revenue less pass-through costs was down 10.1% in the first half and down 14.8% in the second quarter. Eastern Europe performed relatively better than the other regions in the second quarter. China bounced back to growth in the second quarter, which partly reflected the economic recovery but was also the result of a weak comparative period. The China performance was offset within Asia Pacific by weaker trends in Australia, India and Singapore.

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Reportable segments review

The following tables give details of revenue and revenue less pass-through costs by business sector, as well as revenue and revenue less pass-through costs growth by business sector for the second quarter and first half of 2020. Headline operating profit and headline operating profit margin by business sector for the first half of 2020 are also provided below.

Revenue analysis

	Three months ended 30 June 2020		Reported change three months ended 30 June 2020			Like-for-like change three months ended 30 June 2020			Six months ended 30 June 2020		Reported change six months ended 30 June 2020			Like-for-like change six months ended 30 June 2020
Continuing operations	£m													£m
Global Integrated Agencies		2,095		-20.3	%		-19.1	%		4,249		-12.8	%		-11.4	%
Public Relations		224		-8.1	%		-9.6	%		447		-5.2	%		-6.3	%
Specialist Agencies		417		-17.3	%		-19.6	%		887		-13.3	%		-14.4	%
Total Group		2,736		-19.0	%		-18.4	%		5,583		-12.3	%		-11.5	%

Revenue less pass-through costs¹ analysis

	Three months ended 30 June 2020		Reported change three months ended 30 June 2020			Like-for-like change three months ended 30 June 2020			Six months ended 30 June 2020		Reported change six months ended 30 June 2020			Like-for-like change six months ended 30 June 2020
Continuing operations	£m													£m
Global Integrated Agencies		1,717		-16.3	%		-15.7	%		3,462		-10.3	%		-9.5	%
Public Relations		214		-6.0	%		-7.5	%		426		-3.6	%		-4.5	%
Specialist Agencies		371		-17.5	%		-16.3	%		780		-13.3	%		-11.8	%

Note

¹  Revenue less pass-through costs is revenue less media and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media costs. See note 4 to the consolidated financial statements for more details of the pass-through costs.

Headline operating profit analysis

	Headline operating profit six months ended 30 June 2020		Headline operating profit margin1 six months ended 30 June 2020		Headline operating profit six months ended 30 June 20192		Headline operating profit margin1 six months ended 30 June 20192
Continuing operations	£m		%		£m		%
Global Integrated Agencies		256		7.4		463		12.0
Public Relations		72		16.9		68		15.4
Specialist Agencies		54		7.0		86		9.6
Total Group		382				617

Note

¹  Headline operating profit margin is calculated as headline operating profit as a percentage of revenue less pass-through costs.

²  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13 of Exhibit 2.

Global Integrated Agencies like-for-like revenue less pass-through costs was down 9.5% in the first half and down 15.7% in the second quarter. VMLY&R was the best performing integrated agency, reflecting its

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improving business momentum since the merger. Wunderman Thompson also performed better than the segment as a whole, again benefiting from the creation of an integrated agency. Hogarth, our specialist production business, experienced strong demand for its services. GroupM underperformed the segment, due to the closer correlation of its revenue to client media expenditure. As a result, headline operating profit was down £207 million from £463 million for the six months ended 30 June 2019 to £256 million for the six months ended 30 June 2020.

Public Relations like-for-like revenue less pass-through costs was down 4.5% in the first half and down 7.5% in the second quarter. Headline operating profit was up year-on-year as a result of improved margins. Demand for PR services held up well relative to other parts of the Group, as clients sought advice on their communication with all stakeholders in light of the pandemic. Hill + Knowlton was the best performing of our major agencies. In July, we announced the merger of Finsbury, Glover Park and Hering Schuppener to form Finsbury Glover Hering, which will be a leading global strategic communications and public affairs business. As a result, headline operating profit was up £4 million from £68 million for the six months ended 30 June 2019 to £72 million for the six months ended 30 June 2020.

Specialist Agencies like-for-like revenue less pass-through costs was down 11.8% in the first half and down 16.3% in the second quarter. Of the larger agencies, AKQA and Geometry performed better than the overall segment, with GTB broadly in line. Brand Consulting, which is more project-based in nature, experienced short-term budget cuts. Smaller agencies focused on challenged sectors such as airlines, or in events production, suffered from a collapse in demand in the second quarter. As a result, headline operating profit was down £32 million from £86 million for the six months ended 30 June 2019 to £54 million for the six months ended 30 June 2020.

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Cash Flow and Balance Sheet

The Group’s unaudited condensed consolidated interim cash flow statement, balance sheet and notes as at 30 June 2020 are provided in Exhibit 2.

Net cash outflow from operating activities increased to £402 million in the period from £126 million in 2019.

In the first half of 2020, operating loss from continuing operations was £2,453 million, operating profit from discontinued operations was £10 million, depreciation and amortisation £306 million, impairments and investment and other write downs £2,741 million, non-cash share-based incentive charges £31 million, earnout payments £88 million, working capital and provisions outflow £751 million, net interest paid £32 million, tax paid £201 million, lease liabilities (including interest) paid £203 million, capital expenditure £141 million and other net cash outflows £44 million. Free cash flow was, therefore, an outflow of £825 million.

This free cash flow outflow was enhanced by £207 million disposal proceeds (of which £204 million was disposals of investments and subsidiaries net of cash disposed and £3 million was disposal of property, plant and equipment) and reduced by £46 million in net initial acquisition payments and £286 million of share buybacks.

As at 30 June 2020 we had cash of £2.5 billion and total liquidity, including undrawn credit facilities, of £4.7 billion. Debt financing at 30 June 2020 was £5.5 billion, compared to £6.4 billion on 30 June 2019, a decrease of £0.9 billion. Net debt at 30 June 2020 was £2.7 billion, against £4.3 billion on 30 June 2019, a reduction of £1.7 billion at 2020 exchange rates. The reduced net debt figure year-on-year reflects the benefit of the proceeds from the Kantar transaction as well as an improved working capital performance. Average net debt in the first half was £2.5 billion, compared to £4.5 billion in the prior period, at 2020 exchange rates.

In May, we issued bonds of €750 million and £250 million. Our bond portfolio at 30 June 2020 had an average maturity of 8.1 years, with no maturities until 2022.

Summarised financial information about Guarantors and Issuers of Guaranteed Securities

WPP Finance 2010 has in issue $500 million of 3.625% bonds due September 2022 and $93 million ($28 million was repaid in 2018 and $179 million was repaid in 2019 from the $300 million initially issued) of 5.125% bonds due September 2042 with WPP plc as parent guarantor and WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited and WPP Jubilee Limited as subsidiary guarantors. WPP Finance 2010 repaid in full $812 million of 4.75% bonds due November 2021 on December 27, 2019.

In the event that WPP Finance 2010 fails to pay the holders of the securities, thereby requiring WPP plc, WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited or WPP Jubilee Limited to make payment pursuant to the terms of their full and unconditional, and joint and several guarantee of those securities, there is no impediment to WPP plc, WPP Air 1, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited or WPP Jubilee Limited obtaining reimbursement for any such payments from WPP Finance 2010.

9

Summarised income statement information for WPP Finance 2010 (issuer), WPP plc and Subsidiary Guarantors

	For the six months ended 30 June 2020			For the year ended 31 December 2019
Continuing operations	£m			£m
Revenue		—			—
Costs of services		—			—
Gross profit		—			—
Finance and investment income from non-guarantors		10.0			27.5
Finance costs to non-guarantors		(137.8	)		(252.3	)
Loss for the period from continuing operations		(535.3	)		(200.8	)
Loss for the period		(535.3	)		(200.8	)

Summarised balance sheet information for WPP Finance 2010 (issuer), WPP plc and Subsidiary Guarantors

	At 30 June 2020			At 31 December 2019
Due from Non-Guarantors-long term		1,502.6			198.2
Non-current assets		1,631.6			320.1
Due from Non-Guarantors-short term		85.6			137.6
Current assets		963.6			1,215.7
Due to Non-Guarantors-short term		(18,301.9	)		(11,310.2	)
Current Liabilities		(21,256.6	)		(14,377.5	)
Due to Non-Guarantors-long term		(3,229.1	)		(7,182.3	)
Non-current liabilities		(4,618.1	)		(8,490.5	)

WPP Finance 2010 has in issue $750 million of 3.750% bonds due September 2024 and $220 million ($50 million was repaid in 2018 and $230 million was repaid in 2019 from the $500 million initially issued) of 5.625% bonds due November 2043, with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors.

In the event that WPP Finance 2010 fails to pay the holders of the securities, thereby requiring WPP plc, WPP Jubilee Limited or WPP 2005 Limited to make payment pursuant to the terms of their full and unconditional, and joint and several guarantee of those securities, there is no impediment to WPP plc, WPP Jubilee Limited or WPP 2005 Limited obtaining reimbursement for any such payments from WPP Finance 2010.

10

Summarised income statement information for WPP Finance 2010 (issuer), WPP plc and Subsidiary Guarantors

	For the six months ended 30 June 2020			For the year ended 31 December 2019
Continuing operations	£m			£m
Revenue		—			—
Costs of services		—			—
Gross profit		—			—
Finance and investment income from non-guarantors		10.0			27.5
Finance costs to non-guarantors		(137.8	)		(252.3	)
Loss for the period from continuing operations		(535.3	)		(200.8	)
Loss for the period		(535.3	)		(200.8	)

Summarised balance sheet information for WPP Finance 2010 (issuer), WPP plc and Subsidiary Guarantors

	At 30 June 2020			At 31 December 2019
Due from Non-Guarantors-long term		1,502.6			198.2
Non-current assets		1,631.6			320.1
Due from Non-Guarantors-short term		258.6			310.7
Current assets		1,132.7			1,384.9
Due to Non-Guarantors-short term		(18,302.5	)		(11,310.9	)
Current Liabilities		(21,257.1	)		(14,378.1	)
Due to Non-Guarantors-long term		(3,229.1	)		(7,182.3	)
Non-current liabilities		(4,618.1	)		(8,490.5	)

The issuer and guarantors of the bonds (issuer and subsidiary guarantors are 100% owned by WPP plc) are consolidated subsidiaries of WPP plc and are each subject to the reporting requirements under section 15(d) of the Securities Exchange Act of 1934. The summarized financial information for WPP Finance 2010 and the guarantors is presented on a combined basis and prepared in accordance with IFRS as issued by the IASB and is intended to provide investors with meaningful financial information, and is provided pursuant to the early adoption of Rule 13-01 of Regulation S-X which allows for alternative financial disclosures or narrative disclosures in lieu of the separate financial statements of WPP Finance 2010 and the guarantors. The financial information presented is that of the issuers and guarantors of the guaranteed security, and the financial information of non-issuer and non-guarantor subsidiaries has been excluded.

11

Trend information

The discussion below includes forward-looking statements regarding plans, objectives, projections and anticipated future performance based on assumptions that are subject to risks and uncertainties. As such, actual results or outcomes may differ materially from those discussed in the forward-looking statements. See “Forward-Looking Statements” preceding Exhibit 1 in this Form 6-K.

Despite the significant challenges faced by our people, our clients and our communities over the first six months of the year, we have wherever possible continued to conduct business as usual. Our strong financial position, the renewed strength of our global networks, the range of our services and the depth of our client relationships have all underpinned our resilience. We have further consolidated this through our swift action on cost and liquidity.

In July, the Group recorded revenue of -12.9% and like-for-like revenue of -9.3% compared to the previous year, showing a steady improvement over the second quarter, although performance across markets remains volatile.

12

NON-GAAP INFORMATION

As introduced on page 1, the following are the Group’s Non-GAAP performance measures.

Constant currency

The consolidated financial statements are presented in pounds sterling. However, the Group’s significant international operations give rise to fluctuations in foreign exchange rates. To neutralise foreign exchange impact and illustrate the underlying change in revenue, profit, and other relevant financial statement line items from one year to the next, the Group has adopted the practice of discussing results in both reportable currency (local currency results translated into pounds sterling at the prevailing foreign exchange rate) and constant currency.

The Group uses US dollar-based, constant currency models to measure performance. These are calculated by applying budgeted 2020 exchange rates to local currency reported results for the current and prior year which excludes any variances attributable to foreign exchange rate movements.

Pro-forma (‘like-for-like’)

Management believes that discussing pro-forma or like-for-like contributes to the understanding of the Group’s performance and trends because it allows for meaningful comparisons of the current period to that of prior periods.

Pro-forma comparisons are calculated as follows: current year, constant currency actual results (which include acquisitions from the relevant date of completion) are compared with prior year, constant currency actual results, adjusted to include the results of acquisitions and disposals for the commensurate period in the prior year. The Group uses the terms ‘pro-forma’ and ‘like-for-like’ interchangeably.

The following table reconciles reported revenue growth for the three month and six month periods ended 30 June 2020 and 2019, to like-for-like revenue growth for the same periods.

	Three months ended 30 June						Six months ended 30 June
	Revenue						Revenue
Continuing operations	£m			%			£m			%
2019 Reported		3,375						6,368
Impact of exchange rate changes		10			0.3			6			0.1
Changes in scope of consolidation		(30	)		(0.9	)		(57	)		(0.9	)
Like-for-like growth		(619	)		(18.4	)		(734	)		(11.5	)
2020 Reported		2,736			(19.0	)		5,583			(12.3	)

Headline operating profit

Headline operating profit is one of the measures that management uses to assess the performance of the business.

Headline operating profit is calculated as operating profit before gains/losses on disposal of investments and subsidiaries, investment and other write-downs, goodwill impairment and other goodwill write-downs, amortisation and impairment of acquired intangible assets, restructuring and transformation costs, restructuring costs in relation to COVID-19, litigation settlement, gain on sale of freehold property in New York and gains/losses on remeasurement of equity interests arising from a change in scope of ownership.

A tabular reconciliation of operating profit to headline operating profit is provided in note 23 of the unaudited condensed consolidated interim financial statements of the Company, which appears in Exhibit 2.

13

Headline PBIT

Headline PBIT is one of the measures that management uses to assess the performance of the business.

Headline PBIT is calculated as profit before finance income/costs and revaluation of financial instruments, taxation, gains/losses on disposal of investments and subsidiaries, investment and other write-downs, goodwill impairment and other goodwill write-downs, amortisation and impairment of acquired intangible assets, restructuring and transformation costs, restructuring costs in relation to COVID-19, litigation settlement, gain on sale of freehold property in New York, share of exceptional gains/losses of associates and gains/losses on remeasurement of equity interests arising from a change in scope of ownership.

A tabular reconciliation of profit before interest and taxation to headline PBIT is shown below.

	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
Continuing operations	£m			£m			£m
(Loss)/profit before interest and taxation		(2,505.3	)		597.8			1,310.6
Amortisation and impairment of acquired intangible assets		53.1			52.8			121.5
Goodwill impairment		2,520.8			—			47.7
Gains on disposal of investments and subsidiaries		(16.0	)		(40.6	)		(40.4	)
Gains on remeasurement of equity interests arising from a change in scope of ownership		—			(0.4	)		(0.4	)
Investment and other write-downs		220.6			—			7.5
Litigation settlement		—			(16.8	)		(16.8	)
Gain on sale of freehold property in New York		—			(7.9	)		(7.9	)
Restructuring and transformation costs		17.9			33.9			153.5
Restructuring costs in relation to COVID-19		39.3			—			—
Share of exceptional losses of associates		51.4			13.6			47.8
Headline PBIT		381.8			632.4			1,623.1

Note

¹  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13 of Exhibit 2

Headline PBT

Headline PBT is one of the measures that management uses to assess the performance of the business.

Headline PBT is calculated as profit before taxation, gains/losses on disposal of investments and subsidiaries, investment and other write-downs, goodwill impairment and other goodwill write-downs, amortisation and impairment of acquired intangible assets, restructuring and transformation costs, restructuring costs in relation to COVID-19, litigation settlement, gain on sale of freehold property in New York, share of exceptional gains/losses of associates, gains/losses arising from the revaluation of financial instruments, and gains/losses on remeasurement of equity interests arising from a change in scope of ownership.

14

A tabular reconciliation of profit before taxation to headline PBT is shown below.

	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
Continuing operations	£m			£m			£m
(Loss)/profit before taxation		(2,581.4	)		409.0			982.1
Amortisation and impairment of acquired intangible assets		53.1			52.8			121.5
Goodwill impairment		2,520.8			—			47.7
Gains on disposal of investments and subsidiaries		(16.0	)		(40.6	)		(40.4	)
Gains on remeasurement of equity interests arising from a change in scope of ownership		—			(0.4	)		(0.4	)
Investment and other write-downs		220.6			—			7.5
Restructuring and transformation costs		17.9			33.9			153.5
Restructuring costs in relation to COVID-19		39.3			—			—
Share of exceptional losses of associates		51.4			13.6			47.8
Litigation settlement		—			(16.8	)		(16.8	)
Gain on sale of freehold property in New York		—			(7.9	)		(7.9	)
Revaluation of financial instruments		(30.0	)		50.5			68.4
Headline PBT		275.7			494.1			1,363.0

Note

¹  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13 of Exhibit 2.

Billings

Billings is one of the metrics that management uses to assess the performance of the business.

Billings comprise the gross amounts billed to clients in respect of commission-based/fee-based income together with the total of other fees earned.

Free cash flow

The Group bases its internal cash flow objectives on free cash flow. Management believes free cash flow is meaningful to investors because it is the measure of the Group’s funds available for acquisition related payments, dividends to shareholders, share repurchases and debt repayment. The purpose of presenting free cash flow is to indicate the ongoing cash generation within the control of the Group after taking account of the necessary cash expenditures of maintaining the capital and operating structure of the Group (in the form of payments of interest, corporate taxation and capital expenditure). This computation may not be comparable to that of similarly titled measures presented by other companies.

Free cash flow is calculated as net cash flow from operating activities plus proceeds from the issue of shares and payments on early settlement of bonds, less earnout payments, purchases of property, plant and equipment, purchases of other intangible assets, repayment of lease liabilities and dividends paid to non-controlling interests in subsidiary undertakings.

15

A tabular reconciliation of net cash flow from operating activities to free cash flow is shown below:

	Six months ended 30 June 2020			Six months ended 30 June 2019			Year ended 31 December 2019
	£m			£m			£m
Net cash (outflow)/inflow from operating activities		(401.9	)		(126.4	)		1,850.5
Payment on early settlement of bonds		—			—			63.4
Share option proceeds		—			0.2			0.6
Earnout payments		(88.5	)		(57.9	)		(130.2	)
Purchase of property, plant and equipment		(121.3	)		(145.9	)		(339.3	)
Purchase of other intangible assets (including capitalised computer software)		(19.2	)		(21.1	)		(54.8	)
Repayment of lease liabilities		(154.5	)		(103.8	)		(249.8	)
Dividends paid to non-controlling interests in subsidiary undertakings		(40.1	)		(58.5	)		(96.2	)
Free cash flow		(825.5	)		(513.4	)		1,044.2

Net debt and average net debt

Management believes that net debt and average net debt are appropriate and meaningful measures of the debt levels within the Group. This is because of the seasonal swings in our working capital generally, and those resulting from our media buying activities on behalf of our clients in particular, together with the fact that we choose for commercial reasons to locate the debt of the Group in particular countries and leave cash resources in others.

Net debt at a period end is calculated as the sum of the net borrowings of the Group, derived from the cash ledgers and accounts in the balance sheet. Average net debt is calculated as the average daily net borrowings of the Group. Net debt excludes lease liabilities.

The following table is an analysis of net debt:

	30 June 2020			30 June 2019			31 December 2019
	£m			£m			£m
Cash and short-term deposits		2,762.6			2,173.2			2,969.0
Bank overdrafts, bonds and bank loans due within one year		(352.3	)		(1,134.8	)		(461.3	)
Bonds and bank loans due after one year		(5,135.8	)		(5,309.4	)		(4,047.3	)
Net debt		(2,725.5	)		(4,271.0	)		(1,539.6	)

16

EX-99.2

Exhibit 2

Unaudited Condensed Consolidated Interim Financial Statements of WPP plc

for the six months ended 30 June 2020 and 2019 and the year ended 31 December 2019

WPP plc

Unaudited condensed consolidated interim income statement

for the six months ended 30 June 2020 and 2019 and the year ended 31 December 2019

Continuing operations	Notes		Six months ended 30 June 2020 £m			Six months ended 30 June 20191 £m			Year ended 31 December 2019 £m
Revenue		7		5,582.7			6,368.2			13,234.1
Costs of services		4		(4,804.7	)		(5,328.8	)		(10,825.1	)
Gross profit				778.0			1,039.4			2,409.0
General and administrative costs		4		(3,231.4	)		(443.1	)		(1,113.1	)
Operating (loss)/profit				(2,453.4	)		596.3			1,295.9
Share of results of associates		5		(51.9	)		1.5			14.7
(Loss)/profit before interest and taxation				(2,505.3	)		597.8			1,310.6
Finance and investment income		6		51.2			41.8			99.0
Finance costs		6		(157.3	)		(180.1	)		(359.1	)
Revaluation of financial instruments		6		30.0			(50.5	)		(68.4	)
(Loss)/profit before taxation				(2,581.4	)		409.0			982.1
Taxation		8		(24.0	)		(109.3	)		(275.0	)
(Loss)/profit for the period from continuing operations				(2,605.4	)		299.7			707.1
Discontinued operations
Profit for the period from discontinued operations		13		3.1			49.7			10.8
(Loss)/profit for the period				(2,602.3	)		349.4			717.9
Attributable to:
Equity holders of the parent
Continuing operations				(2,626.5	)		269.2			627.9
Discontinued operations				(6.8	)		43.2			(3.8	)
				(2,633.3	)		312.4			624.1
Non-controlling interests
Continuing operations				21.1			30.5			79.2
Discontinued operations				9.9			6.5			14.6
				31.0			37.0			93.8
				(2,602.3	)		349.4			717.9
Earnings per share from continuing and discontinued operations
Basic earnings per ordinary share		10		(215.0p	)		25.0p			49.9p
Diluted earnings per ordinary share		10		(215.0p	)		24.8p			49.5p
Earnings per share from continuing operations
Basic earnings per ordinary share		10		(214.5p	)		21.5p			50.2p
Diluted earnings per ordinary share		10		(214.5p	)		21.4p			49.8p

Note

The accompanying notes form an integral part of this unaudited condensed consolidated interim income statement.

¹  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

1

WPP plc

Unaudited condensed consolidated interim statement of comprehensive income

for the six months ended 30 June 2020 and 2019 and the year ended 31 December 2019

	Six months ended 30 June 2020 £m			Six months ended 30 June 2019 £m			Year ended 31 December 2019 £m
(Loss)/profit for the period		(2,602.3	)		349.4			717.9
Items that may be reclassified subsequently to profit or loss:
Exchange adjustments on foreign currency net investments		111.2			87.1			(379.4	)
Exchange adjustments recycled to the income statement on disposal of discontinued operations		(15.4	)		—			(284.0	)
		95.8			87.1			(663.4	)
Items that will not be reclassified subsequently to profit or loss:
Actuarial loss on defined benefit pension plans		—			—			(36.6	)
Deferred tax on defined benefit pension plans		—			—			6.4
Movements on equity investments held at fair value through other comprehensive income		(102.4	)		(75.7	)		(141.4	)
		(102.4	)		(75.7	)		(171.6	)
Other comprehensive (loss)/income for the period		(6.6	)		11.4			(835.0	)
Total comprehensive (loss)/income for the period		(2,608.9	)		360.8			(117.1	)
Attributable to:
Equity holders of the parent
Continuing operations		(2,636.9	)		270.3			193.5
Discontinued operations		(21.1	)		50.4			(386.4	)
		(2,658.0	)		320.7			(192.9	)
Non-controlling interests
Continuing operations		39.0			34.6			61.9
Discontinued operations		10.1			5.5			13.9
		49.1			40.1			75.8
		(2,608.9	)		360.8			(117.1	)

Note

The accompanying notes form an integral part of this unaudited condensed consolidated interim statement of comprehensive income.

2

WPP plc

Unaudited condensed consolidated interim cash flow statement

for the six months ended 30 June 2020 and 2019 and the year ended 31 December 2019

	Notes		Six months ended 30 June 2020 £m			Six months ended 30 June 2019 £m			Year ended 31 December 2019 £m
Net cash (outflow)/inflow from operating activities		11		(401.9	)		(126.4	)		1,850.5
Investing activities
Acquisitions		11		(96.8	)		(72.9	)		(161.3	)
Disposal of investments and subsidiaries		11		203.9			133.7			2,141.0
Purchase of property, plant and equipment				(121.3	)		(145.9	)		(339.3	)
Purchase of other intangible assets (including capitalised computer software)				(19.2	)		(21.1	)		(54.8	)
Proceeds on disposal of property, plant and equipment				3.1			167.2			174.0
Net cash (outflow)/inflow from investing activities				(30.3	)		61.0			1,759.6
Financing activities
Repayment of lease liabilities				(154.5	)		(103.8	)		(249.8	)
Share option proceeds				—			0.2			0.6
Cash consideration for non-controlling interests		11		(37.8	)		(9.1	)		(62.7	)
Share repurchases and buybacks		11		(285.5	)		—			(43.8	)
Net increase/(decrease) in borrowings		11		699.8			(134.6	)		(1,713.2	)
Financing and share issue costs				(6.8	)		(4.4	)		(6.4	)
Equity dividends paid				—			—			(750.5	)
Dividends paid to non-controlling interests in subsidiary undertakings				(40.1	)		(58.5	)		(96.2	)
Net cash inflow/(outflow) from financing activities				175.1			(310.2	)		(2,922.0	)
Net (decrease)/increase in cash and cash equivalents				(257.1	)		(375.6	)		688.1
Translation of cash and cash equivalents				7.1			11.7			(89.7	)
Cash and cash equivalents at beginning of period				2,799.6			2,201.2			2,201.2
Cash and cash equivalents including cash held in disposal group at end of period				2,549.6			1,837.3			2,799.6
Cash and cash equivalents held in disposal group presented as held for sale				(13.5	)		—			(66.3	)
Cash and cash equivalents at end of period		11		2,536.1			1,837.3			2,733.3

Note

The accompanying notes form an integral part of this unaudited condensed consolidated interim cash flow statement.

3

WPP plc

Unaudited condensed consolidated interim balance sheet

as at 30 June 2020 and 2019 and 31 December 2019

	Notes		30 June 2020 £m			30 June 2019 £m			31 December 2019 £m
Non-current assets
Intangible assets:
Goodwill		14		8,120.2			13,252.1			10,170.7
Other		15		1,488.9			1,786.2			1,468.8
Property, plant and equipment				914.0			984.4			876.0
Right-of-use assets				1,773.9			1,825.2			1,734.5
Interests in associates and joint ventures				515.7			739.6			813.0
Other investments				398.0			574.7			498.3
Deferred tax assets				205.2			155.4			187.9
Trade and other receivables		16		144.0			182.7			137.6
				13,559.9			19,500.3			15,886.8
Current assets
Corporate income tax recoverable				180.8			248.1			165.4
Trade and other receivables		16		9,403.3			13,170.2			11,822.3
Cash and short-term deposits				2,762.6			2,173.2			2,969.0
				12,346.7			15,591.5			14,956.7
Assets classified as held for sale				49.8			—			485.3
				12,396.5			15,591.5			15,442.0
Current liabilities
Trade and other payables		17		(10,772.3	)		(14,365.7	)		(14,186.8	)
Corporate income tax payable				(371.3	)		(493.9	)		(499.9	)
Short-term lease liabilities				(310.2	)		(388.4	)		(302.2	)
Bank overdrafts, bonds and bank loans				(352.3	)		(1,134.8	)		(461.3	)
				(11,806.1	)		(16,382.8	)		(15,450.2	)
Liabilities associated with assets classified as held for sale				(20.9	)		—			(170.4	)
				(11,827.0	)		(16,382.8	)		(15,620.6	)
Net current assets/(liabilities)				569.5			(791.3	)		(178.6	)
Total assets less current liabilities				14,129.4			18,709.0			15,708.2
Non-current liabilities
Bonds and bank loans				(5,135.8	)		(5,309.4	)		(4,047.3	)
Trade and other payables		18		(386.3	)		(567.7	)		(483.3	)
Deferred tax liabilities				(398.9	)		(397.7	)		(379.8	)
Provisions for post-employment benefits				(169.5	)		(184.9	)		(159.0	)
Provisions for liabilities and charges				(235.1	)		(255.8	)		(247.8	)
Long-term lease liabilities				(2,035.6	)		(1,957.3	)		(1,947.5	)
				(8,361.2	)		(8,672.8	)		(7,264.7	)
Net assets				5,768.2			10,036.2			8,443.5
Equity
Called-up share capital		19		129.6			133.3			132.8
Share premium account				570.3			569.9			570.3
Other reserves				(100.7	)		483.5			(501.2	)
Own shares				(1,124.3	)		(1,207.4	)		(1,178.7	)
Retained earnings				5,924.9			9,652.4			9,048.9
Equity shareholders’ funds				5,399.8			9,631.7			8,072.1
Non-controlling interests				368.4			404.5			371.4
Total equity				5,768.2			10,036.2			8,443.5

Note

The accompanying notes form an integral part of this unaudited condensed consolidated interim balance sheet.

4

WPP plc

Unaudited condensed consolidated interim statement of changes in equity

for the six months ended 30 June 2020 and 2019 and 31 December 2019

	Called-up share capital £m			Share premium account £m		Other reserves £m			Own shares £m			Retained earnings £m			Total equity shareholders’ funds £m			Non- controlling interests £m			Total £m
Balance at 1 January 2019		133.3			569.7		393.5			(1,255.7	)		9,440.3			9,281.1			424.4			9,705.5
Ordinary shares issued		—			0.2		—			—			—			0.2			—			0.2
Treasury share allocations		—			—		—			0.8			(0.8	)		—			—			—
Profit for the period		—			—		—			—			312.4			312.4			37.0			349.4
Exchange adjustments on foreign currency net investments		—			—		84.0			—			—			84.0			3.1			87.1
Movements on equity investments held at fair value through other comprehensive income		—			—		—			—			(75.7	)		(75.7	)		—			(75.7	)
Other comprehensive income/(loss)		—			—		84.0			—			(75.7	)		8.3			3.1			11.4
Total comprehensive income		—			—		84.0			—			236.7			320.7			40.1			360.8
Dividends paid		—			—		—			—			—			—			(58.5	)		(58.5	)
Non-cash share-based incentive plans (including share options)		—			—		—			—			32.5			32.5			—			32.5
Tax adjustments on share-based payments		—			—		—			—			1.0			1.0			—			1.0
Net movement in own shares held by ESOP Trusts		—			—		—			47.5			(47.5	)		—			—			—
Recognition/remeasurement of financial instruments		—			—		6.0			—			(3.7	)		2.3			—			2.3
Acquisition of subsidiaries1		—			—		—			—			(6.1	)		(6.1	)		(1.5	)		(7.6	)
Balance at 30 June 2019		133.3			569.9		483.5			(1,207.4	)		9,652.4			9,631.7			404.5			10,036.2
Ordinary shares issued		—			0.4		—			—			—			0.4			—			0.4
Share cancellations		(0.5	)		—		0.5			—			(47.7	)		(47.7	)		—			(47.7	)
Treasury share allocations		—			—		—			0.2			(0.2	)		—			—			—
Profit for the period		—			—		—			—			311.7			311.7			56.8			368.5
Exchange adjustments on foreign currency net investments		—			—		(445.4	)		—			—			(445.4	)		(21.1	)		(466.5	)
Exchange adjustments recycled to the income statement on disposal of discontinued operations		—			—		(284.0	)		—			—			(284.0	)		—			(284.0	)
Movements on equity investments held at fair value through other comprehensive income		—			—		—			—			(65.7	)		(65.7	)		—			(65.7	)
Actuarial loss on defined benefit pension plans		—			—		—			—			(36.6	)		(36.6	)		—			(36.6	)
Deferred tax on defined benefit pension plans		—			—		—			—			6.4			6.4			—			6.4
Other comprehensive loss		—			—		(729.4	)		—			(95.9	)		(825.3	)		(21.1	)		(846.4	)
Total comprehensive (loss)/income		—			—		(729.4	)		—			215.8			(513.6	)		35.7			(477.9	)
Dividends paid		—			—		—			—			(750.5	)		(750.5	)		(37.7	)		(788.2	)
Non-cash share-based incentive plans (including share options)		—			—		—			—			38.9			38.9			—			38.9
Tax adjustments on share-based payments		—			—		—			—			2.1			2.1			—			2.1
Net movement in own shares held by ESOP Trusts		—			—		—			28.5			(28.5	)		—			—			—
Recognition/remeasurement of financial instruments		—			—		(3.5	)		—			16.8			13.3			—			13.3
Share purchases-close period commitments2		—			—		(252.3	)		—			—			(252.3	)		—			(252.3	)
Acquisition of subsidiaries1		—			—		—			—			(50.2	)		(50.2	)		(31.1	)		(81.3	)
Balance at 31 December 2019		132.8			570.3		(501.2	)		(1,178.7	)		9,048.9			8,072.1			371.4			8,443.5
Share cancellations		(3.2	)		—		3.2			—			(281.2	)		(281.2	)		—			(281.2	)
Treasury share allocations		—			—		—			0.5			(0.5	)		—			—			—
(Loss)/profit for the period		—			—		—			—			(2,633.3	)		(2,633.3	)		31.0			(2,602.3	)
Exchange adjustments on foreign currency net investments		—			—		93.1			—			—			93.1			18.1			111.2
Exchange adjustments recycled to the income statement on disposal of discontinued operations		—			—		(15.4	)		—			—			(15.4	)		—			(15.4	)
Movements on equity investments held at fair value through other comprehensive income		—			—		—			—			(102.4	)		(102.4	)		—			(102.4	)
Other comprehensive income/(loss)		—			—		77.7			—			(102.4	)		(24.7	)		18.1			(6.6	)
Total comprehensive income/(loss)		—			—		77.7			—			(2,735.7	)		(2,658.0	)		49.1			(2,608.9	)
Dividends paid		—			—		—			—			—			—			(40.1	)		(40.1	)
Non-cash share-based incentive plans (including share options)		—			—		—			—			30.6			30.6			—			30.6
Tax adjustments on share-based payments		—			—		—			—			2.6			2.6			—			2.6
Net movement in own shares held by ESOP Trusts		—			—		—			53.9			(54.3	)		(0.4	)		—			(0.4	)
Recognition/remeasurement of financial instruments		—			—		67.3			—			(32.8	)		34.5			—			34.5
Share purchases – close period commitments3		—			—		252.3			—			—			252.3			—			252.3
Acquisition of subsidiaries1		—			—		—			—			(52.7	)		(52.7	)		(12.0	)		(64.7	)
Balance at 30 June 2020		129.6			570.3		(100.7	)		(1,124.3	)		5,924.9			5,399.8			368.4			5,768.2

Notes

The accompanying notes form an integral part of this unaudited condensed consolidated interim statement of changes in equity.

¹  Acquisition of subsidiaries represent movements in retained earnings and non-controlling interests arising from changes in ownership of existing subsidiaries and recognition of non-controlling interests of new acquisitions.

²  During 2019, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 2 January 2020 and ending on 27 February 2020, in accordance with UK listing rules. The commitment resulting from this agreement constitutes a liability at 31 December 2019, which is included in Trade and other payables: amounts falling due within one year and has been recognised as a movement in equity.

³  During 2019, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 2 January 2020 and ending on 27 February 2020, in accordance with UK listing rules. The commitment resulting from this agreement constituted a liability at 31 December 2019 and was recognized as a movement in other reserves in the year ended 31 December 2019. As the close period ended on 27 February 2020 the movement in other reserves has been reversed in the period ended 30 June 2020.

5

Notes to the unaudited condensed consolidated interim financial statements

1. Basis of accounting

The unaudited condensed consolidated interim financial statements are prepared under the historical cost convention, except for the revaluation of certain financial instruments and held for sale assets as disclosed in our accounting policies.

2. Accounting policies

The unaudited condensed consolidated interim financial statements comply with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), IAS 34: Interim Financial Reporting and with the accounting policies of the Group which were set out on pages F-7 to F-15 of the 2019 Annual Report on Form 20-F. With the exception of the impact of Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7), which is discussed below, no changes have been made to the Group’s accounting policies in the period ended 30 June 2020.

Impact of Interest Rate Benchmark Reform

The amendments issued by the IASB, Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7), are mandatory and are effective from 1 January 2020. They provide relief on specific aspects of pre-replacement issues that impact hedge accounting, whereby entities applying hedge accounting requirements will be able to assume that the interest rate benchmark on which the hedged cash flows and cash flows of the hedging instrument are based are not altered as a result of Interest Rate Benchmark Reform. The Group does not consider that these amendments have a significant impact on the financial statements as they provide relief for the possible effects of the uncertainty arising from interest rate benchmark reform.

Impact of COVID-19 on critical judgements and estimation uncertainty

The critical judgements and estimation uncertainty in applying accounting policies set out on page F-15 of the 2019 Annual Report on Form 20-F remain applicable. However, the level of judgement and estimation uncertainty has increased since 31 December 2019 due to the impact of the COVID-19 pandemic. COVID-19 has had the most significant impact on the following areas of estimation uncertainty:

Impairment of goodwill:

Given the COVID-19 pandemic, impairment indicators such as a decline in revenue less pass-through costs forecasts, and downturns in the global economy and the advertising industry were identified in the first half of 2020. As such, the Group performed an impairment test over goodwill and intangible assets with indefinite useful lives as at 30 June 2020. In performing the impairment test, estimates are required in regard to the discount rates, long-term growth rates and the level of cash flows during the five-year projection period, which involves judgement on the duration and shape of the recovery from COVID-19 in this period. Further details of the goodwill impairment charge and sensitivity to these estimates are outlined in note 14.

Expected credit losses:

Under IFRS 9, the expected credit losses are measured as the difference between the asset’s gross carrying amount and the present value of discounted estimated future cash flows. As a result of the COVID-19 pandemic on the Group’s clients, estimates of future cash flows from clients involve significant judgement. The Group performed a detailed review of trade receivables, work in progress and accrued income at 30 June 2020, focusing on significant individual clients along with the industry and country in which the clients operate where there is increased risk due to the pandemic. The Group’s approach to expected credit losses is outlined in note 16.

6

Notes to the unaudited condensed consolidated interim financial statements (continued)

2. Accounting policies (continued)

Payments due to vendors (earnout agreements) and liabilities in respect of put options:

When measuring the liabilities for earnouts and put options, estimates are required regarding discount rates and growth rates in determining future financial performance, which involves judgement on the duration and shape of the recovery from COVID-19 in this period. Further details on growth rates, discount rates and the sensitivity to these estimates are set out in note 22.

Government Support

In reaction to the COVID-19 pandemic, certain governments have introduced measures to assist companies. A reduction to operating costs is recorded in relation to government subsidies/schemes (such as furlough measures) where these amounts will never have to be repaid. Further details of such amounts are included in note 4. In other cases, this involves the deferral of certain tax payments in order to stimulate the economy. The deferral of payments does not impact the income statement and these are charged as normal in the period they are incurred.

The unaudited condensed consolidated interim financial statements were approved by the board of directors and authorized for issue on 3 September 2020.

3. Currency conversion

The presentation currency of the Group is pounds sterling and the unaudited condensed consolidated interim financial statements have been prepared on this basis. The 2020 unaudited condensed consolidated interim income statement is prepared using, among other currencies, average exchange rates of US$1.2604 to the pound (period ended 30 June 2019: US$1.2938; year ended 31 December 2019: US$1.2765) and €1.1439 to the pound (period ended 30 June 2019: €1.1453; year ended 31 December 2019: €1.1403). The unaudited condensed consolidated interim balance sheet as at 30 June 2020 has been prepared using the exchange rates on that day of US$1.2379 to the pound (30 June 2019: US$1.2695; 31 December 2019: US$1.3263) and €1.1010 to the pound (30 June 2019: €1.1175; 31 December 2019: €1.1813).

4. Costs of services and general and administrative costs

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Costs of services		4,804.7		5,328.8		10,825.1
General and administrative costs		3,231.4		443.1		1,113.1
		8,036.1		5,771.9		11,938.2

Note

¹  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

7

Notes to the unaudited condensed consolidated interim financial statements (continued)

4. Costs of services and general and administrative costs (continued)

Costs of services and general and administrative costs include:

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Staff costs		3,330.0		3,501.7		7,090.6
Establishment costs		314.4		331.7		672.9
Media pass-through costs		613.7		818.8		1,656.2
Other costs of services and general and administrative costs2		3,778.0		1,119.7		2,518.5
		8,036.1		5,771.9		11,938.2

Notes

¹  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

²  Other costs of services and general and administrative costs include £301.3 million (period ended 30 June 2019: £350.0 million; year ended 31 December 2019: £731.4 million) of other pass through costs.

Staff costs include:

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Wages and salaries		2,417.5		2,442.5		4,946.2
Cash-based incentive plans		17.2		64.8		227.6
Share-based incentive plans		30.6		30.0		66.0
Social security costs		304.6		304.9		591.7
Pension costs		86.4		83.5		169.7
Severance		18.8		16.1		42.6
Other staff costs		454.9		559.9		1,046.8
		3,330.0		3,501.7		7,090.6

Note

¹  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

8

Notes to the unaudited condensed consolidated interim financial statements (continued)

4. Costs of services and general and administrative costs (continued)

Other costs of services and general and administrative costs include:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
	£m			£m			£m
Amortisation and impairment of acquired intangible assets		53.1			52.8			121.5
Goodwill impairment		2,520.8			—			47.7
Gains on disposal of investments and subsidiaries		(16.0	)		(40.6	)		(40.4	)
Gains on remeasurement of equity interests arising from a change in scope of ownership		—			(0.4	)		(0.4	)
Investment and other write-downs		220.6			—			7.5
Restructuring and transformation costs		17.9			33.9			153.5
Restructuring costs in relation to COVID-19		39.3			—			—
Litigation settlement		—			(16.8	)		(16.8	)
Gain on sale of freehold property in New York		—			(7.9	)		(7.9	)
Depreciation of property, plant and equipment		88.2			88.5			185.5
Amortisation of other intangible assets		9.6			9.9			21.2
Depreciation of right-of-use assets		155.4			152.1			301.6
Short-term lease expense		19.7			49.9			83.8
Low-value lease expense		1.1			1.2			2.9

Note

¹  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

Amortisation and impairment of acquired intangibles in the period ended 30 June 2020 includes an impairment charge in the period of £17.1 million (period ended 30 June 2019: £4.7 million, year ended 31 December 2019: £26.5 million) in regard to certain brand names and customer relationships for entities which have closed.

Further details of the goodwill impairment charge of £2,520.8 million are provided in note 14. The goodwill impairment charge of £47.7 million in 2019 relates to a number of under-performing businesses in the Group where the impact of current, local economic conditions and trading circumstances on these businesses is sufficiently severe to indicate impairment to the carrying value of goodwill.

Investment and other write-downs of £220.6 million primarily relate to the impairment of certain investments in associates, including £209.8 million in relation to Imagina in Spain. Further details of the Group’s impairment review are provided in note 14.

Gains on disposal of investments and subsidiaries in the period ended 30 June 2020 of £16.0 million include a gain of £14.7 million on the disposal of the sports agency Two Circles. Gains on disposal of investments and subsidiaries in 2019 include a gain of £28.6 million on the disposal of the Group’s interest in Chime.

Restructuring costs in relation to COVID-19 of £39.3 million primarily relates to severance actions taken in the second quarter in response to the pandemic.

Restructuring and transformation costs of £17.9 million (period ended 30 June 2019: £23.6 million, year ended 31 December 2019: £121.1 million) are in relation to the continuing restructuring plan, first outlined on the Investor Day in December 2018. As part of that plan, restructuring actions have been taken to right-size under-performing businesses, address high cost severance markets and simplify operational structures. Further restructuring and transformation costs will be incurred in the second half of 2020 and 2021. In the period ended

9

Notes to the unaudited condensed consolidated interim financial statements (continued)

4. Costs of services and general and administrative costs (continued)

30 June 2019, the remaining £10.3 million (year ended 31 December 2019: £32.4 million) primarily comprises transformation costs in relation to the global IT transformation programme.

In 2019, the Group received £16.8 million in settlement of a class action lawsuit against Comscore Inc. for providing materially false and misleading information regarding their company and its financial performance.

In March 2019, the Group entered into a sale and leaseback agreement for its office space at 3 Columbus Circle in New York. The Group sold the freehold for proceeds of £159.0 million and simultaneously entered into a 15-year lease. The net gain recognised from the sale and leaseback is £7.9 million.

In the period ended 30 June 2020, the Group received £28.6 million of aid from governments around the world in relation to the COVID-19 pandemic, predominantly in Western Continental Europe and Asia Pacific, which is included as a credit in other staff costs.

Management continues to assess the impact of COVID-19 on long-term working practices and the Group’s real estate portfolio, which could result in impairments of right-of-use assets in the future. At the current time, given the level of uncertainty, such impact has not been quantified and any resulting impairments could have an impact on the Group’s financial results.

5. Share of results of associates

Share of results of associates include:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
	£m			£m			£m
Share of profit before interest and taxation		46.2			26.2			99.2
Share of exceptional losses		(51.4	)		(13.6	)		(47.8	)
Share of interest and non-controlling interests		(40.4	)		(8.0	)		(19.4	)
Share of taxation		(6.3	)		(3.1	)		(17.3	)
		(51.9	)		1.5			14.7

Note

¹  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

Share of exceptional losses of £51.4 million (period ended 30 June 2019: £13.6 million, year ended 31 December 2019: £47.8 million) primarily comprise £27.3 million (period ended 30 June 2019: £nil, year ended 31 December 2019: £5.3 million) of amortisation and impairment of acquired intangible assets as well as restructuring and one-off transaction costs of £23.1 million (period ended 30 June 2019: £nil, year ended 31 December 2019: £20.3 million) within Kantar.

10

Notes to the unaudited condensed consolidated interim financial statements (continued)

6. Finance and investment income, finance costs and revaluation of financial instruments

Finance and investment income includes:

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Income from equity investments		6.8		9.3		18.3
Interest income		44.4		32.5		80.7
		51.2		41.8		99.0

Finance costs include:

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Net interest expense on pension plans		1.4		1.8		3.5
Interest on other long-term employee benefits		1.4		1.8		3.9
Interest payable and similar charges		104.3		127.8		252.0
Interest expense related to lease liabilities		50.2		48.7		99.7
		157.3		180.1		359.1

Revaluation of financial instruments include:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
	£m			£m			£m
Movements in fair value of treasury instruments		(2.0	)		7.3			0.4
Premium on the early repayment of bonds		—			(32.2	)		(63.4	)
Revaluation of investments held at fair value through profit or loss		1.7			1.6			9.1
Revaluation of put options over non-controlling interests		26.0			(19.5	)		(13.5	)
Revaluation of payments due to vendors (earnout agreements)		4.3			(7.7	)		(1.0	)
		30.0			(50.5	)		(68.4	)

Note

¹  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

11

Notes to the unaudited condensed consolidated interim financial statements (continued)

7. Segmental analysis

Reported contributions by reportable segments were as follows:

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Revenue
Global Integrated Agencies		4,249.2		4,873.6		10,205.2
Public Relations		446.8		471.5		956.5
Specialist Agencies		886.7		1,023.1		2,072.4
		5,582.7		6,368.2		13,234.1
Revenue less pass-through costs2
Global Integrated Agencies		3,461.5		3,858.1		8,108.1
Public Relations		426.3		442.2		898.0
Specialist Agencies		779.9		899.1		1,840.4
Headline operating profit3
Global Integrated Agencies		256.0		463.5		1,219.5
Public Relations		71.9		67.9		140.6
Specialist Agencies		54.4		85.9		200.5
		382.3		617.3		1,560.6

Notes

¹  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13. As a result, Data Investment Management is now excluded from the segment analysis.

²  Revenue less pass-through costs is revenue less media, and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media costs. See note 4 for more details of the pass-through costs.

³ A reconciliation from operating (loss)/profit to headline operating profit is provided in note 23.

12

Notes to the unaudited condensed consolidated interim financial statements (continued)

7. Segmental analysis (continued)

Reported contributions by geographical area were as follows:

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Revenue
North America2		2,177.1		2,334.3		4,854.7
United Kingdom		757.6		907.7		1,797.1
Western Continental Europe		1,092.9		1,263.6		2,628.8
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe		1,555.1		1,862.6		3,953.5
		5,582.7		6,368.2		13,234.1
Revenue less pass-through costs3
North America2		1,856.1		1,951.3		4,034.3
United Kingdom		585.6		692.6		1,390.1
Western Continental Europe		919.5		1,041.7		2,176.4
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe		1,306.5		1,513.8		3,245.7
Headline operating profit4
North America2		215.4		278.3		662.0
United Kingdom		35.4		86.7		188.5
Western Continental Europe		43.8		96.5		261.5
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe		87.7		155.8		448.6
		382.3		617.3		1,560.6

Notes

¹  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

²  North America includes the US with revenue of £2,065.2 million (period ended 30 June 2019: £2,203.8 million; year ended 31 December 2019: £4,576.5 million), revenue less pass-through costs of £1,757.5 million (period ended 30 June 2019: £1,843.0 million; year ended 31 December 2019: £3,806.3 million) and headline operating profit of £207.1 million (period ended 30 June 2019: £262.8 million; year ended 31 December 2019: £620.6 million).

³  Revenue less pass-through costs is revenue less media and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media costs. See note 4 for more details of the pass-through costs.

⁴ A reconciliation from operating (loss)/profit to headline operating profit is provided in note 23.

13

Notes to the unaudited condensed consolidated interim financial statements (continued)

8. Taxation

The tax rate on reported (loss)/profit before tax was -0.9% (30 June 2019: 26.7%; 31 December 2019: 28.0%).

The tax charge comprises:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
	£m			£m			£m
Corporation tax
Current year		35.7			187.4			423.0
Prior years		(1.7	)		(19.7	)		(63.4	)
		34.0			167.7			359.6
Deferred tax
Current year		(6.7	)		(46.7	)		(78.3	)
Prior years		(3.3	)		(11.7	)		(6.3	)
		(10.0	)		(58.4	)		(84.6	)
Tax charge		24.0			109.3			275.0

Note

¹  Figures for the period ended 30 June 2019 figures have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

The tax charge may be affected by the impact of acquisitions, disposals and other corporate restructurings, the resolution of open tax issues, and the ability to use brought forward tax losses. Changes in local or international tax rules, or challenges by tax or competition authorities, for example, the European Commission’s state aid decision into Group Financing Exemption in the UK CFC rules, may expose the Group to additional tax liabilities or impact the carrying value of deferred tax assets, which could affect the future tax charge.

The Group does not currently expect any material additional charges, or credits, to arise in respect of these matters, beyond the amounts already provided. Liabilities relating to these open and judgemental matters are based upon estimates of whether additional taxes will be due after taking into account external advice where appropriate. Where the final tax outcome of these matters is different from the amounts which were initially recorded then such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made.

9. Ordinary dividends

The Board has recommended an interim dividend of 10.0p (2019: 22.7p) per ordinary share. This is expected to be paid on 6 November 2020 to shareholders on the register at 9 October 2020. In March 2020, we announced the Board’s decision to suspend the 2019 final dividend of 37.3p per share to protect liquidity in light of the threat to liquidity and cash flow from the COVID-19 impact. The Board has now decided to cancel this dividend to contribute towards lower leverage.

14

Notes to the unaudited condensed consolidated interim financial statements (continued)

10. Earnings per share

Basic EPS

The calculation of basic EPS is as follows:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Earnings1 (£ million)		(2,626.5	)		269.2		627.9
Weighted average shares used in basic EPS calculation (million)		1,224.7			1,249.1		1,250.0
EPS		(214.5p	)		21.5p		50.2p
Discontinued operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Earnings1 (£ million)		(6.8	)		43.2		(3.8	)
Weighted average shares used in basic EPS calculation (million)		1,224.7			1,249.1		1,250.0
EPS		(0.5p	)		3.5p		(0.3p	)

Continued and discontinued operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Earnings1 (£ million)		(2,633.3	)		312.4		624.1
Weighted average shares used in basic EPS calculation (million)		1,224.7			1,249.1		1,250.0
EPS		(215.0p	)		25.0p		49.9p

Note

¹  Earnings is equivalent to (loss)/profit for the period attributable to equity holders of the parent.

15

Notes to the unaudited condensed consolidated interim financial statements (continued)

10. Earnings per share (continued)

Diluted EPS

The calculation of diluted EPS is as follows:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Diluted earnings (£ million)		(2,626.5	)		269.2		627.9
Weighted average shares used in diluted EPS calculation1 (million)		1,224.7			1,257.3		1,260.6
Diluted EPS		(214.5p	)		21.4p		49.8p

Discontinued operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Diluted earnings (£ million)		(6.8	)		43.2		(3.8	)
Weighted average shares used in diluted EPS calculation1 (million)		1,224.7			1,257.3		1,260.6
Diluted EPS		(0.5p	)		3.4p		(0.3p	)

Continuing and discontinued operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Diluted earnings (£ million)		(2,633.3	)		312.4		624.1
Weighted average shares used in diluted EPS calculation1 (million)		1,224.7			1,257.3		1,260.6
Diluted EPS		(215.0p	)		24.8p		49.5p

Note

¹  The weighted average shares used in the basic EPS calculation has also been used for diluted EPS due to the anti-dilutive effect of the weighted average shares calculated for the diluted EPS calculation.

A reconciliation between the shares used in calculating basic and diluted EPS is as follows:

	Six months ended 30 June 2020		Six months ended 30 June 2019		Year ended 31 December 2019
	m		m		m
Weighted average shares used in basic EPS calculation		1,224.7		1,249.1		1,250.0
Dilutive share options outstanding		—		0.1		0.3
Other potentially issuable shares		12.3		8.1		10.3
Weighted average shares used in diluted EPS calculation		1,237.0		1,257.3		1,260.6

At 30 June 2020 there were 1,296,079,242 (30 June 2019: 1,332,703,852, 31 December 2019: 1,328,167,813) ordinary shares in issue, including treasury shares of 70,750,170 (30 June 2019: 70,799,200, 31 December 2019: 70,787,730).

16

Notes to the unaudited condensed consolidated interim financial statements (continued)

11. Analysis of cash flows

The following tables analyse the items included within the main cash flow headings on page 3:

Net cash flow from operating activities:

	Six months ended 30 June 2020			Six months ended 30 June 2019			Year ended 31 December 2019
	£m			£m			£m
(Loss)/profit for the period		(2,602.3	)		349.4			717.9
Taxation		26.1			128.8			353.8
Revaluation of financial instruments		(30.0	)		57.2			77.8
Finance costs		157.6			189.2			376.4
Finance and investment income		(51.4	)		(43.6	)		(102.6	)
Share of results of associates		51.9			(8.0	)		(21.2	)
Goodwill impairment on classification as held for sale		—			—			94.5
Loss/(gain) on sale of discontinued operations		3.3			—			(73.8	)
Attributable tax expense on sale of discontinued operations		1.9			—			157.4
Non-cash share-based incentive plans (including share options)		30.6			32.5			71.4
Depreciation of property, plant and equipment		88.2			106.2			203.2
Depreciation of right-of-use assets		155.4			168.4			317.9
Goodwill impairment		2,520.8			—			47.7
Amortisation and impairment of acquired intangible assets		53.1			66.9			135.6
Amortisation of other intangible assets		9.6			18.3			29.6
Investment and other write-downs		220.6			—			7.5
Gains on disposal of investments and subsidiaries		(16.0	)		(40.6	)		(45.1	)
Gains on remeasurement of equity interests arising from a change in scope of ownership		—			(0.4	)		(0.4	)
Gain on sale of freehold property in New York		—			(7.9	)		(7.9	)
(Gains)/losses on sale of property, plant and equipment		(0.1	)		(0.6	)		3.2
Movements in trade working capital1, 2		(456.0	)		(296.7	)		563.4
Movements in other receivables, payables and provisions1		(294.7	)		(482.5	)		(213.1	)
Corporation and overseas tax paid		(201.2	)		(261.0	)		(536.0	)
Payment on early settlement of bonds		—			—			(63.4	)
Interest and similar charges paid		(77.4	)		(110.8	)		(270.6	)
Interest paid on lease liabilities		(48.6	)		(51.7	)		(105.1	)
Interest received		45.2			35.8			80.8
Investment income		6.8			9.3			18.3
Dividends received from associates		4.7			15.4			33.3
Net cash (outflow)/inflow from operating activities		(401.9	)		(126.4	)		1,850.5

Notes

¹ The Group typically experiences an outflow of working capital in the first half of the financial year and an inflow in the second half. This is primarily due to the seasonal nature of working capital flows associated with its media buying activities on behalf of clients.

²  Trade working capital represents trade receivables, work in progress, accrued income, trade payables, and deferred income.

17

Notes to the unaudited condensed consolidated interim financial statements (continued)

11. Analysis of cash flows (continued)

Acquisitions and disposals:

	Six months ended 30 June 2020			Six months ended 30 June 2019			Year ended 31 December 2019
	£m			£m			£m
Initial cash consideration		(5.9	)		(6.4	)		(3.9	)
Earnout payments		(88.5	)		(57.9	)		(130.2	)
Purchase of other investments (including associates)		(2.4	)		(8.6	)		(27.2	)
Acquisitions		(96.8	)		(72.9	)		(161.3	)
Proceeds on disposal of investments and subsidiaries		228.4			136.7			2,468.5
Cash and cash equivalents disposed		(24.5	)		(3.0	)		(327.5	)
Disposals of investments and subsidiaries		203.9			133.7			2,141.0
Cash consideration for non-controlling interests		(37.8	)		(9.1	)		(62.7	)
Net acquisition payments and disposal proceeds		69.3			51.7			1,917.0

Share repurchases and buybacks:

	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
	£m			£m		£m
Purchase of own shares by ESOP Trusts		(0.4	)		—		—
Shares purchased into treasury		(285.1	)		—		(43.8	)
		(285.5	)		—		(43.8	)

Net increase/(decrease) in borrowings:

	Six months ended 30 June 2020			Six months ended 30 June 2019			Year ended 31 December 2019
	£m			£m			£m
Net increase/(decrease) in drawings on bank loans		7.4			376.5			(70.6	)
Repayment of €250 million bonds		(223.1	)		—			—
Repayment of £200 million bonds		—			(199.5	)		(199.5	)
Partial repayment of $450 million bonds		—			(176.2	)		(176.2	)
Partial repayment of $272 million bonds		—			(135.4	)		(135.4	)
Repayment of €600 million bonds		—			—			(512.7	)
Repayment of $812 million bonds		—			—			(618.8	)
Proceeds from issue of €750 million bonds		665.5			—			—
Proceeds from issue of £250 million bonds		250.0			—			—
		699.8			(134.6	)		(1,713.2	)

18

Notes to the unaudited condensed consolidated interim financial statements (continued)

11. Analysis of cash flows (continued)

Cash and cash equivalents:

	30 June 2020			30 June 2019			31 December 2019
	£m			£m			£m
Cash at bank and in hand		1,646.9			1,814.7			2,105.4
Short-term bank deposits		1,115.7			358.5			863.6
Overdrafts1		(226.5	)		(335.9	)		(235.7	)
		2,536.1			1,837.3			2,733.3

Note

¹  Bank overdrafts are included in cash and cash equivalents because they form an integral part of the Group’s cash management.

12. Debt financing

The Group estimates that the fair value of corporate bonds is £5,348.5 million at 30 June 2020 (30 June 2019: £5,783.4 million; 31 December 2019: £4,439.8 million). The carrying value of corporate bonds is £5,136.4 million at 30 June 2020 (30 June 2019: £5,535.2 million; 31 December 2019: £4,162.9 million). The Group considers that the carrying amount of bank loans at 30 June 2020 of £125.8 million (30 June 2019: £580.1 million; 31 December 2019: £110.4 million) approximates their fair value.

The following table is an analysis of future anticipated cash flows in relation to the Group’s debt, on an undiscounted basis which, therefore, differs from the carrying value:

	30 June 2020			30 June 2019			31 December 2019
	£m			£m			£m
Within one year		(249.8	)		(936.6	)		(324.8	)
Between one and two years		(366.9	)		(327.7	)		(204.0	)
Between two and three years		(532.0	)		(990.0	)		(692.1	)
Between three and four years		(793.7	)		(496.1	)		(726.3	)
Between four and five years		(1,145.4	)		(1,114.7	)		(634.2	)
Over five years		(3,461.7	)		(3,500.3	)		(2,761.9	)
Debt financing (including interest) under the Revolving Credit Facility and in relation to unsecured loan notes		(6,549.5	)		(7,365.4	)		(5,343.3	)
Short-term overdrafts – within one year		(226.5	)		(335.9	)		(235.7	)
Future anticipated cash flows		(6,776.0	)		(7,701.3	)		(5,579.0	)
Effect of discounting/financing rates		1,287.9			1,257.1			1,070.4
Debt financing		(5,488.1	)		(6,444.2	)		(4,508.6	)

13. Assets held for sale and discontinued operations

On 12 July 2019, the Group announced the proposed sale of its Kantar business to Bain Capital. The sale involved the Group disposing of the Kantar business and holding a 40% equity stake post-transaction which is treated as an associate. On 5 December 2019 the first stage of the transaction completed with consideration of £2,140.2 million after tax and disposal costs. This generated a pre-tax gain of £73.8 million, tax charge of £157.4 million and goodwill impairment of £94.5 million for the Group. In the period ended 30 June 2020 the second, third and fourth stages of the transaction completed with total consideration of £200.1 million after tax and disposal costs. This generated a pre-tax loss of £3.3 million, and a tax charge of £1.9 million. The final

19

Notes to the unaudited condensed consolidated interim financial statements (continued)

13. Assets held for sale and discontinued operations (continued)

stages of the transaction are expected to complete in the second half of the year with further consideration expected to be approximately £50.0 million after tax and disposal costs.

Under IFRS 5: Non-current Assets Held for Sale and Discontinued Operations where certain conditions are met, an asset or disposal group that has been put up for sale should be recognised as ‘held for sale’. The criterion was met on 9 July 2019, following Board approval of the disposal of Kantar to Bain Capital, representing the date at which the appropriate level of management was committed to a plan to sell the disposal group. The Kantar disposal group therefore became held for sale on this date.

The Kantar group is classified as a discontinued operation in 2019 and 2020 under IFRS 5, as it forms a separate major line of business and there was a single co-ordinated plan to dispose of it.

As at 30 June 2020 the Kantar group is therefore presented as a discontinued operation with the remaining portion of the company not yet sold by 30 June 2020 disclosed as held for sale. Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5.

Results of the discontinued operations, which have been included in profit for the year, were as follows:

	Six months ended 30 June 2020			Six months ended 30 June 2019			Year ended 31 December 2019
	£m			£m			£m
Revenue		101.9			1,247.8			2,387.5
Costs of services		(87.4	)		(1,061.4	)		(1,951.5	)
Gross profit		14.5			186.4			436.0
General and administrative costs		(4.0	)		(109.7	)		(151.7	)
Operating profit		10.5			76.7			284.3
Share of results of associates		—			6.5			6.5
Profit before interest and taxation		10.5			83.2			290.8
Finance income		0.2			1.8			3.6
Finance costs		(0.3	)		(9.1	)		(17.3	)
Revaluation of financial instruments		—			(6.7	)		(9.4	)
Profit before taxation		10.4			69.2			267.7
Attributable tax expense		(2.1	)		(19.5	)		(78.8	)
Profit after taxation		8.3			49.7			188.9
Goodwill impairment on classification as held for sale1		—			—			(94.5	)
(Loss)/gain on sale of discontinued operations		(3.3	)		—			73.8
Attributable tax expense on sale of discontinued operations		(1.9	)		—			(157.4	)
Net gain attributable to discontinued operations		3.1			49.7			10.8
Attributable to:
Equity holders of the parent		(6.8	)		43.2			(3.8	)
Non-controlling interests2		9.9			6.5			14.6
		3.1			49.7			10.8

Note

¹  Goodwill impairment of £94.5 million arose from the assessment of fair value less costs to sell under IFRS 5 in the year ended 31 December 2019.

²  In 2020, non-controlling interests includes £9.3 million recognised on the disposal of Kantar within WPP Scangroup, a 56.25% owned subsidiary of the Group.

For the period ended 30 June 2020, the Kantar group contributed £26.8 million (period ended 30 June 2019: £135.2 million, year ended 31 December 2019: £322.9 million) to the Group’s net operating cash flows, paid

20

Notes to the unaudited condensed consolidated interim financial statements (continued)

13. Assets held for sale and discontinued operations (continued)

£1.1 million (period ended 30 June 2019: £26.5 million, year ended 31 December 2019: £53.2 million) in respect of investing activities and paid £0.9 million (period ended 30 June 2019: £18.8 million, year ended 31 December 2019: £27.2 million) in respect of financing activities.

The gain on sale of discontinued operations is calculated as follows:

	30 June 2020			31 December 2019
	£m			£m
Intangible assets (including goodwill)		150.9			2,410.0
Property, plant and equipment		13.7			115.7
Right-of-use assets		24.2			103.5
Interests in associates and joint ventures		2.0			92.3
Other investments		—			11.5
Deferred tax assets		5.5			44.1
Corporate income tax recoverable		15.0			49.8
Trade and other receivables		157.6			748.8
Cash and cash equivalents		19.8			324.9
Trade and other payables		(129.0	)		(839.8	)
Corporate income tax payable		(4.0	)		(48.2	)
Lease liabilities		(20.5	)		(106.3	)
Deferred tax liabilities		(1.3	)		(98.6	)
Provisions for post-employment benefits		(6.7	)		(26.7	)
Provisions for liabilities and charges		(0.6	)		(22.4	)
Net assets		226.6			2,758.6
Non-controlling interests		(5.9	)		(19.1	)
Net assets excluding non-controlling interests		220.7			2,739.5
Consideration received in cash and cash equivalents		191.3			2,352.1
Re-investment in equity stake1		—			231.7
Transaction costs		(3.8	)		(56.1	)
Deferred consideration2		14.5			1.6
Total consideration received		202.0			2,529.3
Loss on sale before exchange adjustments		(18.7	)		(210.2	)
Exchange adjustments recycled to the income statement		15.4			284.0
(Loss)/gain on sale of discontinued operations		(3.3	)		73.8

Notes

¹  Re-investment in equity stake represents the value of the Group’s 40% stake in the new Kantar group as part of the disposal.

²  Deferred consideration in the year ended 31 December 2019 is made up of £79.6 million expected to be received in future periods on the satisfaction of certain conditions and the deferral of £78.0 million consideration against services the Group will supply to Kantar on favourable terms in the future.

21

Notes to the unaudited condensed consolidated interim financial statements (continued)

14. Goodwill and acquisitions

Cash-generating units (CGUs) with significant goodwill and brands with an indefinite useful life as at 30 June are:

	Goodwill				Brands with an indefinite useful life
	30 June 2020		31 December 2019		30 June 2020		31 December 2019
CGU	£m		£m		£m		£m
GroupM		3,072.2		2,936.0		—		—
Wunderman Thompson		1,167.2		2,138.9		433.3		409.7
VMLY&R		460.6		901.0		203.6		199.1
Ogilvy		828.1		762.9		218.5		211.1
Burson Cohn & Wolfe		651.3		741.4		138.0		130.2
Other		1,940.8		2,690.5		136.4		128.1
		8,120.2		10,170.7		1,129.8		1,078.2

Other goodwill represents goodwill on a large number of CGUs, none of which is individually significant in comparison to the total carrying value of goodwill. Separately identifiable brands with an indefinite life are carried at historical cost in accordance with the Group’s accounting policy for intangible assets. The carrying values of the other brands with an indefinite useful life are not individually significant in comparison with the total carrying value of brands with an indefinite useful life.

Goodwill in relation to subsidiary undertakings decreased by £2,050.5 million (30 June 2019: increased by £49.3 million) in the period. This movement primarily relates to impairment charges of £2,520.8 million, partially offset by the effect of currency translation of £473.3 million, as well as both goodwill arising on acquisitions completed in the year and adjustments to goodwill relating to acquisitions completed in prior years.

In accordance with the Group’s accounting policy, the carrying values of goodwill and intangible assets with indefinite useful lives are reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Given the COVID-19 pandemic, impairment indicators such as a decline in revenue less pass-through costs forecasts, and downturns in the global economy and the advertising industry were identified in the first half of 2020. As such, the Group performed an impairment test over goodwill and intangible assets with indefinite useful lives as at 30 June 2020.

Under IFRS, an impairment charge is required for both goodwill and other indefinite-lived assets when the carrying amount exceeds the “recoverable amount”, defined as the higher of fair value less costs to sell and value in use. The review assessed whether the carrying value of goodwill and intangible assets with indefinite useful lives was supported by the value in use determined as the net present value of future cash flows.

Due to a significant number of CGUs, the impairment test was performed in two steps. In the first step, the recoverable amount was calculated for each CGU using the latest available forecasts for 2020, nil growth rate thereafter (2019: 3.0%) and a conservative pre-tax discount rate of 13.5% (2019: 8.5%). The pre-tax discount rate of 13.5% was above the rate calculated for the global networks of 12.5%. For smaller CGUs that operate primarily in a particular region subject to higher risk, the higher of 13.5% or 100 basis points above the regional discount rate was used in the first step.

The recoverable amount was then compared to the carrying amount. CGUs where the recoverable amount exceeded the carrying amount were not considered to be impaired. Those CGUs where the recoverable amount did not exceed the carrying amount were then further reviewed in the second step.

22

Notes to the unaudited condensed consolidated interim financial statements (continued)

14. Goodwill and acquisitions (continued)

In the second step, the CGUs were retested for impairment using more refined assumptions. This included using a CGU specific pre-tax discount rate and management forecasts for a projection period of up to five-years, followed by an assumed long-term growth rate of 2.0% (2019: 3.0%). If the recoverable amount using the more specific assumptions did not exceed the carrying value of a CGU, an impairment charge was recorded.

In developing the cash flows, we considered the impact of the COVID-19 pandemic to our businesses and adjusted projected revenue less pass-through costs and operating margins in 2020 accordingly. For the remaining years in the projection period, we assessed when the cash flows would recover to 2019 levels as representative of pre-COVID-19 revenue less pass-through costs and operating margins. For many of our CGUs, recovery to 2019 levels by 2023 was estimated with some CGUs using alternative recovery profiles as considered appropriate.

The long-term growth rate is derived from management’s best estimate of the likely long-term trading performance with reference to external industry reports and other relevant market trends. As at 30 June 2020, we have assessed long-term industry trends based on recent historical data including the long-term impact of COVID-19 and assumed a long-term growth rate of 2.0% (2019: 3.0%). Management have made the judgement that the long-term growth rate does not exceed the long-term average growth rate for the industry.

The discount rate uses the capital asset pricing model “CAPM” to derive the cost of equity along with an estimated cost of debt that is weighted by an appropriate capital structure to derive an indication of a weighted average cost of capital. The cost of equity is calculated based on long-term government bond yield, an estimate of the required premium for investment in equity relative to government securities and further considers the volatility associated with peer public companies relative to the market. The cost of debt reflects an estimated market yield for long-term debt financing after taking into account the credit profile of public peer companies in the industry. The capital structure used to weight the cost of equity and cost of debt has been derived from the observed capital structure of public peer companies.

Given current market factors, there has been an increase in the estimated cost of equity. This has been driven by increased levels of market uncertainty and volatility which is reflected in the market valuations for global advertising agencies. This has led to upward adjustments to the estimates for the equity risk premium as well as the applicable beta (i.e. volatility of public peer companies relative to the market). Additionally, given the magnitude of the declines in our market capitalisation, the cost of equity reflects an increase in the size premium applicable to the Group, and a company specific risk premium to reflect implied market discount rates. This increase in the cost of equity, combined with an increase in the cost of debt as a result of increased corporate bond yields, resulted in the discount rates applied to our CGUs increasing relative to the prior year.

The pre-tax discount rate applied to the cash flow projections for the CGUs that operate globally was 12.5% (2019: 6.3% to 7.4%). We developed a global discount rate that takes into account the diverse nature of the operations as these CGUs operate with a diverse range of clients in a range of industries throughout the world, hence are subject to similar levels of market risks. The pre-tax discount rates applied to the CGUs that have more regional specific operations ranged from 10.8% to 19.3% (2019: 4.1% to 13.6%).

Our approach in determining the recoverable amount utilises a discounted cash flow methodology, which necessarily involves making numerous estimates and assumptions regarding revenue less pass-through costs growth, operating margins, appropriate discount rates and working capital requirements. The key assumptions used for estimating cash flow projections in the Group’s impairment testing are those relating to revenue less pass-through costs growth and operating margins. The key assumptions take account of the businesses’ expectations for the projection period. These expectations consider the macroeconomic environment, industry and market conditions, the CGU’s historical performance and any other circumstances particular to the unit, such as business strategy and client mix.

23

Notes to the unaudited condensed consolidated interim financial statements (continued)

14. Goodwill and acquisitions (continued)

These estimates will likely differ from future actual results of operations and cash flows, and it is possible that these differences could be material. In addition, judgements are applied in determining the level of CGU identified for impairment testing and the criteria used to determine which assets should be aggregated. A difference in testing levels could affect whether an impairment is recorded and the extent of impairment loss.

As part of the overall effort to simplify operations and become more client-centric, certain operations have been realigned between the various networks. These realignments have been reflected in the CGUs being tested. The most significant of these include the treatment of Landor and FITCH as a single CGU given the collaboration of the two brands from both a management and client perspective; the shift of certain European operations into VMLY&R, and the transfer of certain Asian operations from VMLY&R to Ogilvy in order to improve the operational synergies and offer in the respective regions. The transfers of carrying value between CGUs were determined on a relative value basis. The impact of these realignments has not had a significant impact on the impairment figures recognised.

The goodwill impairment charge of £2,520.8 million largely reflects the adverse impacts of COVID-19 to a number of businesses in the Group. The impact of these global economic conditions and trading circumstances was sufficiently severe to indicate impairment to the carrying value of goodwill. By operating sector, £1,630.9 million of the impairment charge relates to Global Integrated Agencies, £144.8 million relates to Public Relations and £745.1 million relates to Specialist Agencies.

The CGUs with significant impairments of goodwill as at 30 June 2020 are set out in the below table.

	Operating Sector	Recoverable amount		Goodwill impairment charge
CGU		£m		£m
Wunderman Thompson	Global Integrated Agencies		1,932.2		1,071.4
VMLY&R	Global Integrated Agencies		918.3		472.0
Burson Cohn & Wolfe	Public Relations		859.8		129.1
Geometry Global	Specialist Agencies		205.9		232.9
Landor & FITCH	Specialist Agencies		197.5		158.3
Other	Other		1,349.3		457.1

24

Notes to the unaudited condensed consolidated interim financial statements (continued)

14. Goodwill and acquisitions (continued)

Sensitivity of CGUs with an impairment charge

The impairment review is sensitive to changes in the assumptions used, most notably to changes in the revenue less pass-through costs growth and operating margins used to derive cash flows during the 5-year projection period, the terminal cash flow growth rate, and discount rate. The revenue less pass-through costs growth rates used in the 5-year projection period for impaired CGUs that operate globally resulted in compound annual growth rates of 2.5% to 5.0%. The operating margins used in the 5-year projection period for impaired CGUs that operate globally resulted in average operating margins of 6.6% to 19.0%. Long-term cash flow growth rates and discount rates used in the test are discussed above. A summary of the movements in the impairment charge from a reasonably possible change in these assumptions is as follows:

	Impact of changes to assumptions in 5-year projection period				Impact of change to terminal value assumptions		Impact of change to pre-tax discount rate
CGU	Revenue less pass-through costs growth rate +/- 0.5%		Operating margin % +/- 0.5%		Long-term cash flow growth rate +/- 0.5%		+1.5%			-1.5%
	£m		£m		£m		£m			£m
Wunderman Thompson		19.2		70.8		54.6		(210.2	)		279.4
VMLY&R		8.3		37.7		22.9		(100.1	)		132.0
Burson Cohn & Wolfe		9.6		21.8		26.9		(98.7	)		129.1
Geometry Global		1.2		13.5		3.6		(22.3	)		29.7
Landor & FITCH		2.1		6.5		6.0		(23.5	)		31.3
Other		11.9		47.8		33.9		(136.4	)		164.2
		52.3		198.1		147.9		(591.2	)		765.7

Sensitivity of CGUs not impaired

For the CGUs not impaired in the period, a reasonably possible change in assumptions would not lead to a significant impairment.

Acquisitions

The contribution to revenue and operating profit of acquisitions completed in the period was not material. There were no material acquisitions completed during the period or between 30 June 2020 and the date the interim financial statements were approved.

15. Other intangible assets

The following are included in other intangibles:

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Brands with an indefinite useful life		1,129.8		1,141.2		1,078.2
Acquired intangibles		284.4		530.4		323.6
Other (including capitalised computer software)		74.7		114.6		67.0
		1,488.9		1,786.2		1,468.8

25

Notes to the unaudited condensed consolidated interim financial statements (continued)

16. Trade and other receivables

Amounts falling due within one year:

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Trade receivables		5,175.7		7,713.8		7,007.6
Work in progress		312.4		419.5		349.5
VAT and sales taxes recoverable		272.5		270.6		212.7
Prepayments		311.6		391.0		287.1
Accrued income		2,703.2		3,731.1		3,292.7
Fair value of derivatives		0.6		10.0		1.4
Other debtors		627.3		634.2		671.3
		9,403.3		13,170.2		11,822.3

Amounts falling due after more than one year:

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Prepayments		1.7		2.8		2.2
Accrued income		—		22.8		—
Fair value of derivatives		—		6.3		—
Other debtors		142.3		150.8		135.4
		144.0		182.7		137.6

The Group has applied the practical expedient permitted by IFRS 15 to not disclose the transaction price allocated to performance obligations unsatisfied (or partially unsatisfied) as of the end of the reporting period as contracts typically have an original expected duration of a year or less.

The Group considers that the carrying amount of trade and other receivables approximates their fair value.

Expected credit losses

The Group has applied the simplified approach to measuring expected credit losses, as permitted by IFRS 9: Financial Instruments. Therefore the Group does not track changes in credit risk over the life of a financial asset, but recognises a loss allowance based on the financial asset’s lifetime expected credit loss. Under IFRS 9, the expected credit losses are measured as the difference between the asset’s gross carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. Given the short-term nature of the Group’s trade receivables, work in progress and accrued income, which are mainly due from large national or multinational companies, the Group assessment of expected credit losses includes provisions for specific clients and receivables where the contractual cash flow is deemed at risk. Additional provisions are made based on the assessment of recoverability of aged receivables, where the following criteria are met:

–– 100% of the asset aged over one year;

–– 50% of the asset aged between 180 days and one year; and

–– sufficient evidence of recoverability is not evident.

26

Notes to the unaudited condensed consolidated interim financial statements (continued)

16. Trade and other receivables (continued)

These criteria form the basis of expected future losses based on historical loss rates. As a result of the COVID-19 pandemic, the Group also performed a detailed review of trade receivables, work-in-progress and accrued income aged less than 180 days, taking into account the level of credit insurance the Group has along with internal and external data including historical and forward looking information. This review focused on significant individual clients along with the industry and country in which the clients operate where there is increased risk due to the pandemic.

This resulted in a bad debt expense of £29.2 million (period ended 30 June 2019: £12.3 million; year ended 31 December 2019: £25.8 million) on the Group’s trade receivables in the period. The allowance for bad and doubtful debts is equivalent to 2.5% (30 June 2019: 1.6%; 31 December 2019: 1.6%) of gross trade receivables.

17. Trade and other payables: amounts falling due within one year

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Trade payables		7,279.2		9,945.7		10,112.1
Deferred income		968.7		1,377.3		1,024.6
Payments due to vendors (earnout agreements)		65.4		167.6		142.4
Liabilities in respect of put option agreements with vendors		47.0		41.4		75.4
Fair value of derivatives		2.7		4.0		1.5
Share repurchases - close period commitments1		—		—		252.3
Other creditors and accruals		2,409.3		2,829.7		2,578.5
		10,772.3		14,365.7		14,186.8

Note

¹ During 2019, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 2 January 2020 and ending on 27 February 2020, in accordance with UK listing rules. The commitment resulting from this agreement constitutes a liability at 31 December 2019, which is included in Trade and other payables: amounts falling due within one year and has been recognised as a movement in equity.

The Group considers that the carrying amount of trade and other payables approximates their fair value.

18. Trade and other payables: amounts falling due after more than one year

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Payments due to vendors (earnout agreements)		101.2		203.9		111.4
Liabilities in respect of put option agreements with vendors		120.5		223.0		151.4
Fair value of derivatives		0.6		—		21.2
Other creditors and accruals		164.0		140.8		199.3
		386.3		567.7		483.3

The Group considers that the carrying amount of trade and other payables approximates their fair value.

27

Notes to the unaudited condensed consolidated interim financial statements (continued)

18. Trade and other payables: amounts falling due after more than one year (continued)

The following table sets out payments due to vendors, comprising contingent consideration and the Directors’ best estimates of future earnout-related obligations:

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Within one year		65.4		167.6		142.4
Between 1 and 2 years		26.1		90.0		36.9
Between 2 and 3 years		15.5		44.1		37.5
Between 3 and 4 years		28.1		36.9		14.8
Between 4 and 5 years		27.8		22.4		9.7
Over 5 years		3.7		10.5		12.5
		166.6		371.5		253.8

The Group’s approach to payments due to vendors is outlined in note 22.

The following table sets out the movements of deferred and earnout related obligations during the period:

	Six months ended 30 June 2020			Six months ended 30 June 2019			Year ended 31 December 2019
	£m			£m			£m
At the beginning of the period		253.8			414.7			414.7
Earnouts paid		(88.5	)		(57.9	)		(130.0	)
New acquisitions		2.9			3.9			9.6
Revision of estimates taken to goodwill		(3.0	)		1.1			(14.3	)
Revaluation of payments due to vendors (note 6)		(4.3	)		8.4			1.1
Transfer to disposal group classified as held for sale		—			—			(11.5	)
Exchange adjustments		5.7			1.3			(15.8	)
At the end of the period		166.6			371.5			253.8

The Group does not consider there to be any material contingent liabilities at 30 June 2020.

19. Issued share capital

	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Number of equity ordinary shares	m			m		m
At the beginning of the period		1,328.2			1,332.7		1,332.7
Share cancellations		(32.1	)		—		(4.5	)
At the end of the period		1,296.1			1,332.7		1,328.2

20. Related party transactions

The Group enters into transactions with its associate undertakings.

The Group has continuing transactions with Kantar, including sales, purchases, the provision of IT services, subleases and property related items. None of these were material in the period after 5 December 2019 when Kantar became an associate, to 31 December 2019, or in the period ended 30 June 2020.

28

Notes to the unaudited condensed consolidated interim financial statements (continued)

20. Related party transactions (continued)

In the period ended 30 June 2020, revenue of £49.7 million was reported in relation to Compas, an associate in the USA. All other transactions in the periods presented were immaterial.

The following amounts were outstanding at 30 June 2020:

	30 June 2020			30 June 2019			31 December 2019
	£m			£m			£m
Amounts owed by related parties
Kantar		79.2			—			87.5
Other		27.8			82.7			87.5
		107.0			82.7			175.0
Amounts owed to related parties
Kantar		(14.6	)		—			(36.5	)
Other		(61.9	)		(56.0	)		(49.6	)
		(76.5	)		(56.0	)		(86.1	)

21. Going concern and risk management policies

In considering going concern and liquidity risk, the Directors have reviewed the Group’s future cash requirements and earnings projections. The Directors believe these forecasts have been prepared on a prudent basis and have also considered the impact of a range of potential changes to trading performance. The Company’s forecasts and projections, taking account of (i) reasonably possible declines in revenue less pass-through costs; (ii) remote declines in revenue less pass-through costs for stress-testing purposes as a consequence of the COVID-19 pandemic compared to 2019; and considering the Group’s bank covenant and liquidity headroom taking into account the suspension of share buybacks and the cancellation of the final dividend in 2019 and cost mitigation actions which are and which could be implemented, show that the Company and the Group would be able to operate with appropriate liquidity and within its banking covenants and be able to meet its liabilities as they fall due. The Company modelled a range of revenue less pass-through costs declines from 15% to over 35%. The Directors have concluded that the Group will be able to operate within its current facilities and comply with its banking covenants for the foreseeable future and therefore believe it is appropriate to prepare the financial statements of the Group on a going concern basis and that there are no material uncertainties which gives rise to a significant going concern risk. The potential impact of Brexit has been considered and is not deemed to have a significant effect on this assessment.

29

Notes to the unaudited condensed consolidated interim financial statements (continued)

21. Going concern and risk management policies (continued)

At 30 June 2020, the Group has access to £7.4 billion of committed facilities with maturity dates spread over the years 2021 to 2046 as illustrated below:

	Maturity by year
			2021		2022		2023		2024		2025+
	£m		£m		£m		£m		£m		£m
£ bonds £400m (2.875% ’46)		400.0										400.0
US bond $220m (5.625% ’43)		177.6										177.6
US bond $93m (5.125% ’42)		75.0										75.0
£ bonds £250m (3.75% ’32)		250.0										250.0
Eurobonds €600m (1.625% ’30)		545.0										545.0
Eurobonds €750m (2.375% ’27)		681.2										681.2
Eurobonds €750m (2.25% ’26)		681.2										681.2
Eurobonds €500m (1.375% ’25)		454.1										454.1
US bond $750m (3.75% ’24)		605.9								605.9
Bank revolver ($2,500m ‘24)		2,019.5								2,019.5
Eurobonds €750m (3.0% ’23)		681.2						681.2
US bond $500m (3.625% ’22)		403.9				403.9
Eurobonds €250m (3m EURIBOR + 0.45% ’22)		227.1				227.1
Bank revolver (A$420m ‘21)		233.8		233.8
Total committed facilities available		7,435.5		233.8		631.0		681.2		2,625.4		3,264.1
Drawn down facilities at 30 June 2020		5,291.9		109.7		631.0		681.2		605.9		3,264.1
Undrawn committed credit facilities		2,143.6

Given its debt maturity profile and available facilities, the Directors believe the Group has sufficient liquidity to match its requirements for the foreseeable future.

Treasury management

The Group’s treasury activities are principally concerned with monitoring of working capital, managing external and internal funding requirements and monitoring and managing financial market risks, in particular risks from movements in interest and foreign exchange rates.

The Group’s risk management policies relating to foreign currency risk, interest rate risk, liquidity risk, capital risk and credit risk are presented in the notes to the consolidated financial statements of the 2019 Annual Report on Form 20-F and in the opinion of the Board remain relevant for the remaining six months of the year.

22. Financial instruments

The fair values of financial assets and liabilities are based on quoted market prices where available. Where the market value is not available, the Group has estimated relevant fair values on the basis of publicly available information from outside sources or on the basis of discounted cash flow models where appropriate.

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into levels 1 to 3 based on the degree to which the fair value is observable, or based on observable inputs:

Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

30

Notes to the unaudited condensed consolidated interim financial statements (continued)

22. Financial instruments (continued)

Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);

Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

	Level 1		Level 2			Level 3
	£m		£m			£m
30 June 2020
Derivatives in designated hedge relationships
Derivative assets		—		—			—
Derivative liabilities		—		(0.6	)		—
Held at fair value through profit or loss
Other investments		—		—			258.7
Derivative assets		—		0.6			—
Derivative liabilities		—		(2.7	)		—
Payments due to vendors (earnout agreements) (note 18)		—		—			(166.6	)
Liabilities in respect of put options		—		—			(167.5	)
Held at fair value through other comprehensive income
Other investments		28.4		—			110.9

Reconciliation of level 3 fair value measurements:

	Liabilities in respect of put options			Other investments
	£m			£m
1 January 2020		(226.8	)		456.1
Gains recognised in the income statement		26.0			1.7
Losses recognised in other comprehensive income		—			(88.7	)
Exchange adjustments		(1.3	)		—
Additions		(1.5	)		3.0
Disposals		—			(2.5	)
Cancellations		28.9			—
Settlements		7.2			—
30 June 2020		(167.5	)		369.6

Payments due to vendors and liabilities in respect of put options

Future anticipated payments due to vendors in respect of contingent consideration (earnout agreements) are recorded at fair value, which is the present value of the expected cash outflows of the obligations. Liabilities in respect of put option agreements are initially recorded at the present value of the redemption amount in accordance with IAS 32 and subsequently measured at fair value in accordance with IFRS 9. Both types of obligations are dependent on the future financial performance of the entity and it is assumed that future profits are in line with Directors’ estimates. The Directors derive their estimates from internal business plans together with financial due diligence performed in connection with the acquisition. At 30 June 2020, the weighted average growth rate in estimating future financial performance was 16.6%, which reflects the prevalence of recent acquisitions in the faster growing markets and new media sectors. The risk adjusted discount rate applied to these obligations at 30 June 2020 was 1.3%.

31

Notes to the unaudited condensed consolidated interim financial statements (continued)

22. Financial instruments (continued)

A one percentage point increase or decrease in the growth rate in estimated future financial performance would increase or decrease the combined liabilities due to earnout agreements and put options by approximately £3.8 million and £3.7 million, respectively. A 0.5 percentage point increase or decrease in the risk adjusted discount rate would decrease or increase the combined liabilities by approximately £4.7 million and £4.8 million, respectively. An increase in the liability would result in a loss in the revaluation of financial instruments (note 6), while a decrease would result in a gain.

Other investments

The fair value of other investments included in level 1 are based on quoted market prices. Other investments included in level 3 are unlisted securities, where market value is not readily available. The Group has estimated relevant fair values on the basis of publicly available information from outside sources. Certain investments are valued using revenue multiples. An increase or decrease in this multiple of 0.5 times revenue would result in an increase or decrease in the value of investments of £26.9 million, which would result in a credit or charge to the income statement of £1.5 million and equity of £25.4 million. The sensitivity to changes in unobservable inputs for certain other investments is specific to each individual investment.

23. Reconciliation of operating (loss)/profit to headline operating profit

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
	£m			£m			£m
Operating (loss)/profit		(2,453.4	)		596.3			1,295.9
Amortisation and impairment of acquired intangible assets		53.1			52.8			121.5
Goodwill impairment		2,520.8			—			47.7
Gains on disposal of investments and subsidiaries		(16.0	)		(40.6	)		(40.4	)
Gains on remeasurement of equity interests arising from a change in scope of ownership		—			(0.4	)		(0.4	)
Investment and other write-downs		220.6			—			7.5
Litigation settlement		—			(16.8	)		(16.8	)
Gain on sale of freehold property in New York		—			(7.9	)		(7.9	)
Restructuring and transformation costs		17.9			33.9			153.5
Restructuring costs in relation to COVID-19		39.3			—			—
Headline operating profit		382.3			617.3			1,560.6

Note

¹  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

Headline operating profit is one of the metrics that management uses to assess the performance of the business.

32

XML

Cover Page	6 Months Ended
	Jun. 30, 2020
Entity Information [Line Items]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Registrant Name	WPP plc
Entity Central Index Key	0000806968
Current Fiscal Year End Date	--12-31

XML

Unaudited Condensed Consolidated Interim Income Statement - GBP (£) £ in Millions	6 Months Ended			12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019		Dec. 31, 2019
Profit or loss [abstract]
Revenue	£ 5,582.7	£ 6,368.2	[1]	£ 13,234.1
Costs of services	(4,804.7)	(5,328.8)	[1]	(10,825.1)
Gross profit	778.0	1,039.4		2,409.0
General and administrative costs	(3,231.4)	(443.1)	[1]	(1,113.1)
Operating (loss)/profit	(2,453.4)	596.3		1,295.9
Share of results of associates	(51.9)	1.5	[1]	14.7
(Loss)/profit before interest and taxation	(2,505.3)	597.8		1,310.6
Finance and investment income	51.2	41.8		99.0
Finance costs	(157.3)	(180.1)		(359.1)
Revaluation of financial instruments	30.0	(50.5)		(68.4)
(Loss)/profit before taxation	(2,581.4)	409.0		982.1
Taxation	(24.0)	(109.3)		(275.0)
(Loss)/profit for the period from continuing operations	(2,605.4)	299.7		707.1
Profit for the period from discontinued operations	3.1	49.7		10.8
(Loss)/profit for the period	(2,602.3)	349.4		717.9
Attributable to:
Continuing operations	(2,626.5)	269.2		627.9
Discontinued operations	(6.8)	43.2		(3.8)
Total Equity holders of the parent	(2,633.3)	312.4		624.1
Continuing operations	21.1	30.5		79.2
Discontinued operations	9.9	6.5		14.6
Non-controlling interests	31.0	37.0		93.8
(Loss)/profit for the period	£ (2,602.3)	£ 349.4		£ 717.9
Earnings per share
Basic earnings per ordinary share	£ (2.150)	£ 0.250		£ 0.499
Diluted earnings per ordinary share	(2.150)	0.248		0.495
Basic earnings (loss) per share from continuing operations	(2.145)	0.215		0.502
Diluted earnings (loss) per share from continuing operations	£ (2.145)	£ 0.214		£ 0.498

[1] Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

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Unaudited Condensed Consolidated Interim Statement of Comprehensive Income - GBP (£) £ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Statement of comprehensive income [abstract]
(Loss)/profit for the period	£ (2,602.3)	£ 349.4	£ 717.9
Items that may be reclassified subsequently to profit or loss:
Exchange adjustments on foreign currency net investments	111.2	87.1	(379.4)
Exchange adjustments recycled to the income statement on disposal of discontinued operations	(15.4)		(284.0)
Items that may be reclassified subsequently to profit or loss	95.8	87.1	(663.4)
Items that will not be reclassified subsequently to profit or loss:
Actuarial loss on defined benefit pension plans			(36.6)
Deferred tax on defined benefit pension plans			6.4
Movements on equity investments held at fair value through other comprehensive income	(102.4)	(75.7)	(141.4)
Items that will not be reclassified subsequently to profit or loss	(102.4)	(75.7)	(171.6)
Other comprehensive (loss)/income for the period	(6.6)	11.4	(835.0)
Total comprehensive (loss)/income for the period	(2,608.9)	360.8	(117.1)
Equity holders of the parent:
Continuing operations	(2,636.9)	270.3	193.5
Discontinued operations	(21.1)	50.4	(386.4)
Total Equity holders of the parent	(2,658.0)	320.7	(192.9)
Continuing operations	39.0	34.6	61.9
Discontinued operations	10.1	5.5	13.9
Total Non-controlling interests	49.1	40.1	75.8
Total comprehensive (loss)/income for the period	£ (2,608.9)	£ 360.8	£ (117.1)

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Unaudited Condensed Consolidated Interim Cash Flow Statement - GBP (£) £ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Statement of cash flows [abstract]
Net cash (outflow)/inflow from operating activities	£ (401.9)	£ (126.4)	£ 1,850.5
Investing activities
Acquisitions	(96.8)	(72.9)	(161.3)
Disposal of investments and subsidiaries	203.9	133.7	2,141.0
Purchase of property, plant and equipment	(121.3)	(145.9)	(339.3)
Purchase of other intangible assets (including capitalised computer software)	(19.2)	(21.1)	(54.8)
Proceeds on disposal of property, plant and equipment	3.1	167.2	174.0
Net cash (outflow)/inflow from investing activities	(30.3)	61.0	1,759.6
Financing activities
Repayment of lease liabilities	(154.5)	(103.8)	(249.8)
Share option proceeds		0.2	0.6
Cash consideration for non-controlling interests	(37.8)	(9.1)	(62.7)
Share repurchases and buybacks	(285.5)		(43.8)
Net increase/(decrease) in borrowings	699.8	(134.6)	(1,713.2)
Financing and share issue costs	(6.8)	(4.4)	(6.4)
Equity dividends paid			(750.5)
Dividends paid to non-controlling interests in subsidiary undertakings	(40.1)	(58.5)	(96.2)
Net cash inflow/(outflow) from financing activities	175.1	(310.2)	(2,922.0)
Net (decrease)/increase in cash and cash equivalents	(257.1)	(375.6)	688.1
Translation of cash and cash equivalents	7.1	11.7	(89.7)
Cash and cash equivalents at beginning of period	2,799.6	2,201.2	2,201.2
Cash and cash equivalents including cash held in disposal group at end of period	2,549.6	1,837.3	2,799.6
Cash and cash equivalents held in disposal group presented as held for sale	(13.5)		(66.3)
Cash and cash equivalents at end of period	£ 2,536.1	£ 1,837.3	£ 2,733.3

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Unaudited Condensed Consolidated Interim Balance Sheet - GBP (£) £ in Millions	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Non-current assets
Goodwill	£ 8,120.2	£ 10,170.7	£ 13,252.1
Other	1,488.9	1,468.8	1,786.2
Property, plant and equipment	914.0	876.0	984.4
Right-of-use assets	1,773.9	1,734.5	1,825.2
Interests in associates and joint ventures	515.7	813.0	739.6
Other investments	398.0	498.3	574.7
Deferred tax assets	205.2	187.9	155.4
Trade and other receivables	144.0	137.6	182.7
Non-current assets	13,559.9	15,886.8	19,500.3
Current assets
Corporate income tax recoverable	180.8	165.4	248.1
Trade and other receivables	9,403.3	11,822.3	13,170.2
Cash and short-term deposits	2,762.6	2,969.0	2,173.2
Subtotal of current assets before including assets classified as held for sale	12,346.7	14,956.7	15,591.5
Assets classified as held for sale	49.8	485.3
Total of current assets after including assets classified as held for sale	12,396.5	15,442.0	15,591.5
Current liabilities
Trade and other payables	(10,772.3)	(14,186.8)	(14,365.7)
Corporate income tax payable	(371.3)	(499.9)	(493.9)
Short-term lease liabilities	(310.2)	(302.2)	(388.4)
Bank overdrafts, bonds and bank loans	(352.3)	(461.3)	(1,134.8)
Current liabilities other than liabilities included in disposal groups classified as held for sale	(11,806.1)	(15,450.2)	(16,382.8)
Liabilities associated with assets classified as held for sale	(20.9)	(170.4)
Total of current liabilities after including liabilitites associated with assets as held for sale	(11,827.0)	(15,620.6)	(16,382.8)
Net current assets/(liabilities)	569.5	(178.6)	(791.3)
Total assets less current liabilities	14,129.4	15,708.2	18,709.0
Non-current liabilities
Bonds and bank loans	(5,135.8)	(4,047.3)	(5,309.4)
Trade and other payables	(386.3)	(483.3)	(567.7)
Deferred tax liabilities	(398.9)	(379.8)	(397.7)
Provisions for post-employment benefits	(169.5)	(159.0)	(184.9)
Provisions for liabilities and charges	(235.1)	(247.8)	(255.8)
Long-term lease liabilities	(2,035.6)	(1,947.5)	(1,957.3)
Non-current liabilities	(8,361.2)	(7,264.7)	(8,672.8)
Net assets	5,768.2	8,443.5	10,036.2
Equity
Called-up share capital	129.6	132.8	133.3
Share premium account	570.3	570.3	569.9
Other reserves	(100.7)	(501.2)	483.5
Own shares	(1,124.3)	(1,178.7)	(1,207.4)
Retained earnings	5,924.9	9,048.9	9,652.4
Equity shareholders' funds	5,399.8	8,072.1	9,631.7
Non-controlling interests	368.4	371.4	404.5
Total equity	£ 5,768.2	£ 8,443.5	£ 10,036.2

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Unaudited Condensed Consolidated Interim Statement of Changes in Equity - GBP (£) £ in Millions		Total	Called-up share capital [member]	Share premium account [member]	Other reserves [member]	Own shares [member]	Retained earnings [member]	Total equity shareholder's funds [member]		Non-controlling interests [member]
Beginning balance at Dec. 31, 2018		£ 9,705.5	£ 133.3	£ 569.7	£ 393.5	£ (1,255.7)	£ 9,440.3	£ 9,281.1	[1]	£ 424.4
Ordinary shares issued		0.2		0.2				0.2	[1]
Treasury share allocations						0.8	(0.8)
(Loss)/profit for the period		349.4					312.4	312.4	[1]	37.0
Exchange adjustments on foreign currency net investments		87.1			84.0			84.0	[1]	3.1
Movements on equity investments held at fair value through other comprehensive income		(75.7)					(75.7)	(75.7)	[1]
Other comprehensive income/(loss)		11.4			84.0		(75.7)	8.3	[1]	3.1
Total comprehensive income/(loss)		360.8			84.0		236.7	320.7	[1]	40.1
Dividends paid		(58.5)								(58.5)
Non-cash share-based incentive plans (including share options)		32.5					32.5	32.5	[1]
Tax adjustments on share-based payments		1.0					1.0	1.0	[1]
Net movement in own shares held by ESOP Trusts						47.5	(47.5)
Recognition/remeasurement of financial instruments		2.3			6.0		(3.7)	2.3	[1]
Acquisition of subsidiaries	[2]	(7.6)					(6.1)	(6.1)	[1]	(1.5)
End of year at Jun. 30, 2019		10,036.2	133.3	569.9	483.5	(1,207.4)	9,652.4	9,631.7	[1]	404.5
Beginning balance at Dec. 31, 2018		9,705.5	133.3	569.7	393.5	(1,255.7)	9,440.3	9,281.1	[1]	424.4
(Loss)/profit for the period		717.9
Exchange adjustments on foreign currency net investments		(379.4)
Exchange adjustments recycled to the income statement on disposal of discontinued operations		(284.0)
Movements on equity investments held at fair value through other comprehensive income		(141.4)
Actuarial loss on defined benefit pension plans		(36.6)
Deferred tax on defined benefit pension plans		6.4
Other comprehensive income/(loss)		(835.0)
Total comprehensive income/(loss)		(117.1)
End of year at Dec. 31, 2019		8,443.5	132.8	570.3	(501.2)	(1,178.7)	9,048.9	8,072.1	[1]	371.4
Beginning balance at Jun. 30, 2019		10,036.2	133.3	569.9	483.5	(1,207.4)	9,652.4	9,631.7	[1]	404.5
Ordinary shares issued		0.4		0.4				0.4	[1]
Share cancellations		(47.7)	(0.5)		0.5		(47.7)	(47.7)	[1]
Treasury share allocations						0.2	(0.2)
(Loss)/profit for the period		368.5					311.7	311.7	[1]	56.8
Exchange adjustments on foreign currency net investments		(466.5)			(445.4)			(445.4)	[1]	(21.1)
Exchange adjustments recycled to the income statement on disposal of discontinued operations		(284.0)			(284.0)			(284.0)	[1]
Movements on equity investments held at fair value through other comprehensive income		(65.7)					(65.7)	(65.7)	[1]
Actuarial loss on defined benefit pension plans		(36.6)					(36.6)	(36.6)	[1]
Deferred tax on defined benefit pension plans		6.4					6.4	6.4	[1]
Other comprehensive income/(loss)		(846.4)			(729.4)		(95.9)	(825.3)	[1]	(21.1)
Total comprehensive income/(loss)		(477.9)			(729.4)		215.8	(513.6)	[1]	35.7
Dividends paid		(788.2)					(750.5)	(750.5)	[1]	(37.7)
Non-cash share-based incentive plans (including share options)		38.9					38.9	38.9	[1]
Tax adjustments on share-based payments		2.1					2.1	2.1	[1]
Net movement in own shares held by ESOP Trusts						28.5	(28.5)
Recognition/remeasurement of financial instruments		13.3			(3.5)		16.8	13.3	[1]
Share purchases-close period commitments	[1]	(252.3)			(252.3)			(252.3)
Acquisition of subsidiaries	[2]	(81.3)					(50.2)	(50.2)	[1]	(31.1)
End of year at Dec. 31, 2019		8,443.5	132.8	570.3	(501.2)	(1,178.7)	9,048.9	8,072.1	[1]	371.4
Share cancellations		(281.2)	(3.2)		3.2		(281.2)	(281.2)	[1]
Treasury share allocations						0.5	(0.5)
(Loss)/profit for the period		(2,602.3)					(2,633.3)	(2,633.3)	[1]	31.0
Exchange adjustments on foreign currency net investments		111.2			93.1			93.1	[1]	18.1
Exchange adjustments recycled to the income statement on disposal of discontinued operations		(15.4)			(15.4)			(15.4)	[1]
Movements on equity investments held at fair value through other comprehensive income		(102.4)					(102.4)	(102.4)	[1]
Other comprehensive income/(loss)		(6.6)			77.7		(102.4)	(24.7)	[1]	18.1
Total comprehensive income/(loss)		(2,608.9)			77.7		(2,735.7)	(2,658.0)	[1]	49.1
Dividends paid		(40.1)								(40.1)
Non-cash share-based incentive plans (including share options)		30.6					30.6	30.6	[1]
Tax adjustments on share-based payments		2.6					2.6	2.6	[1]
Net movement in own shares held by ESOP Trusts		(0.4)				53.9	(54.3)	(0.4)	[1]
Recognition/remeasurement of financial instruments		34.5			67.3		(32.8)	34.5	[1]
Share purchases-close period commitments	[3]	252.3			252.3			252.3
Acquisition of subsidiaries	[2]	(64.7)					(52.7)	(52.7)	[1]	(12.0)
End of year at Jun. 30, 2020		£ 5,768.2	£ 129.6	£ 570.3	£ (100.7)	£ (1,124.3)	£ 5,924.9	£ 5,399.8	[1]	£ 368.4

[1] During 2019, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 2 January 2020 and ending on 27 February 2020, in accordance with UK listing rules. The commitment resulting from this agreement constitutes a liability at 31 December 2019, which is included in Trade and other payables: amounts falling due within one year and has been recognised as a movement in equity.

[2] Acquisition of subsidiaries represent movements in retained earnings and non-controlling interests arising from changes in ownership of existing subsidiaries and recognition of non-controlling interests of new acquisitions.

[3] During 2019, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 2 January 2020 and ending on 27 February 2020, in accordance with UK listing rules. The commitment resulting from this agreement constituted a liability at 31 December 2019 and was recognized as a movement in other reserves in the year ended 31 December 2019. As the close period ended on 27 February 2020 the movement in other reserves has been reversed in the period ended 30 June 2020.

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Basis of accounting

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Basis of accounting

1. Basis of accounting

The unaudited condensed consolidated interim financial statements are prepared under the historical cost convention, except for the revaluation of certain financial instruments and held for sale assets as disclosed in our accounting policies.

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Accounting policies

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Accounting policies

2. Accounting policies

The unaudited condensed consolidated interim financial statements comply with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), IAS 34: Interim Financial Reporting and with the accounting policies of the Group which were set out on pages F-7 to F-15 of the 2019 Annual Report on Form 20-F. With the exception of the impact of Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7), which is discussed below, no changes have been made to the Group’s accounting policies in the period ended 30 June 2020.

Impact of Interest Rate Benchmark Reform

The amendments issued by the IASB, Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7), are mandatory and are effective from 1 January 2020. They provide relief on specific aspects of pre-replacement issues that impact hedge accounting, whereby entities applying hedge accounting requirements will be able to assume that the interest rate benchmark on which the hedged cash flows and cash flows of the hedging instrument are based are not altered as a result of Interest Rate Benchmark Reform. The Group does not consider that these amendments have a significant impact on the financial statements as they provide relief for the possible effects of the uncertainty arising from interest rate benchmark reform.

Impact of COVID-19 on critical judgements and estimation uncertainty

The critical judgements and estimation uncertainty in applying accounting policies set out on page F-15 of the 2019 Annual Report on Form 20-F remain applicable. However, the level of judgement and estimation uncertainty has increased since 31 December 2019 due to the impact of the COVID-19 pandemic. COVID-19 has had the most significant impact on the following areas of estimation uncertainty: 

Impairment of goodwill:

Given the COVID-19 pandemic, impairment indicators such as a decline in revenue less pass-through costs forecasts, and downturns in the global economy and the advertising industry were identified in the first half of 2020. As such, the Group performed an impairment test over goodwill and intangible assets with indefinite useful lives as at 30 June 2020. In performing the impairment test, estimates are required in regard to the discount rates, long-term growth rates and the level of cash flows during the five-year projection period, which involves judgement on the duration and shape of the recovery from COVID-19 in this period. Further details of the goodwill impairment charge and sensitivity to these estimates are outlined in note 14.

Expected credit losses:

Under IFRS 9, the expected credit losses are measured as the difference between the asset’s gross carrying amount and the present value of discounted estimated future cash flows. As a result of the COVID-19 pandemic on the Group’s clients, estimates of future cash flows from clients involve significant judgement. The Group performed a detailed review of trade receivables, work in progress and accrued income at 30 June 2020, focusing on significant individual clients along with the industry and country in which the clients operate where there is increased risk due to the pandemic. The Group’s approach to expected credit losses is outlined in note 16.

Payments due to vendors (earnout agreements) and liabilities in respect of put options:

When measuring the liabilities for earnouts and put options, estimates are required regarding discount rates and growth rates in determining future financial performance, which involves judgement on the duration and shape of the recovery from COVID-19 in this period. Further details on growth rates, discount rates and the sensitivity to these estimates are set out in note 22.

Government Support

In reaction to the COVID-19 pandemic, certain governments have introduced measures to assist companies. A reduction to operating costs is recorded in relation to government subsidies/schemes (such as furlough measures) where these amounts will never have to be repaid. Further details of such amounts are included in note 4. In other cases, this involves the deferral of certain tax payments in order to stimulate the economy. The deferral of payments does not impact the income statement and these are charged as normal in the period they are incurred.

The unaudited condensed consolidated interim financial statements were approved by the board of directors and authorized for issue on 3 September 2020.

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Currency conversion

6 Months Ended

Jun. 30, 2020

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Currency conversion

3. Currency conversion

The presentation currency of the Group is pounds sterling and the unaudited condensed consolidated interim financial statements have been prepared on this basis. The 2020 unaudited condensed consolidated interim income statement is prepared using, among other currencies, average exchange rates of US$1.2604 to the pound (period ended 30 June 2019: US$1.2938; year ended 31 December 2019: US$1.2765) and €1.1439 to the pound (period ended 30 June 2019: €1.1453; year ended 31 December 2019: €1.1403). The unaudited condensed consolidated interim balance sheet as at 30 June 2020 has been prepared using the exchange rates on that day of US$1.2379 to the pound (30 June 2019: US$1.2695; 31 December 2019: US$1.3263) and €1.1010 to the pound (30 June 2019: €1.1175; 31 December 2019: €1.1813).

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Costs of services and general and administrative costs

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Costs of services and general and administrative costs

4. Costs of services and general and administrative costs

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Costs of services		4,804.7		5,328.8		10,825.1
General and administrative costs		3,231.4		443.1		1,113.1
		8,036.1		5,771.9		11,938.2

Note

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

Costs of services and general and administrative costs include:

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Staff costs		3,330.0		3,501.7		7,090.6
Establishment costs		314.4		331.7		672.9
Media pass-through costs		613.7		818.8		1,656.2
Other costs of services and general and administrative costs2		3,778.0		1,119.7		2,518.5
		8,036.1		5,771.9		11,938.2

Notes

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

2  Other costs of services and general and administrative costs include £301.3 million (period ended 30 June 2019: £350.0 million; year ended 31 December 2019: £731.4 million) of other pass through costs.

Staff costs include:

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Wages and salaries		2,417.5		2,442.5		4,946.2
Cash-based incentive plans		17.2		64.8		227.6
Share-based incentive plans		30.6		30.0		66.0
Social security costs		304.6		304.9		591.7
Pension costs		86.4		83.5		169.7
Severance		18.8		16.1		42.6
Other staff costs		454.9		559.9		1,046.8
		3,330.0		3,501.7		7,090.6

Note

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

Other costs of services and general and administrative costs include:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
	£m			£m			£m
Amortisation and impairment of acquired intangible assets		53.1			52.8			121.5
Goodwill impairment		2,520.8			—			47.7
Gains on disposal of investments and subsidiaries		(16.0	)		(40.6	)		(40.4	)
Gains on remeasurement of equity interests arising from a change in scope of ownership		—			(0.4	)		(0.4	)
Investment and other write-downs		220.6			—			7.5
Restructuring and transformation costs		17.9			33.9			153.5
Restructuring costs in relation to COVID-19		39.3			—			—
Litigation settlement		—			(16.8	)		(16.8	)
Gain on sale of freehold property in New York		—			(7.9	)		(7.9	)
Depreciation of property, plant and equipment		88.2			88.5			185.5
Amortisation of other intangible assets		9.6			9.9			21.2
Depreciation of right-of-use assets		155.4			152.1			301.6
Short-term lease expense		19.7			49.9			83.8
Low-value lease expense		1.1			1.2			2.9

Note

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

Amortisation and impairment of acquired intangibles in the period ended 30 June 2020 includes an impairment charge in the period of £17.1 million (period ended 30 June 2019: £4.7 million, year ended 31 December 2019: £26.5 million) in regard to certain brand names and customer relationships for entities which have closed.

Further details of the goodwill impairment charge of £2,520.8 million are provided in note 14. The goodwill impairment charge of £47.7 million in 2019 relates to a number of under-performing businesses in the Group where the impact of current, local economic conditions and trading circumstances on these businesses is sufficiently severe to indicate impairment to the carrying value of goodwill.

Investment and other write-downs of £220.6 million primarily relate to the impairment of certain investments in associates, including £209.8 million in relation to Imagina in Spain. Further details of the Group’s impairment review are provided in note 14.

Gains on disposal of investments and subsidiaries in the period ended 30 June 2020 of £16.0 million include a gain of £14.7 million on the disposal of the sports agency Two Circles. Gains on disposal of investments and subsidiaries in 2019 include a gain of £28.6 million on the disposal of the Group’s interest in Chime.

Restructuring costs in relation to COVID-19 of £39.3 million primarily relates to severance actions taken in the second quarter in response to the pandemic.

Restructuring and transformation costs of £17.9 million (period ended 30 June 2019: £23.6 million, year ended 31 December 2019: £121.1 million) are in relation to the continuing restructuring plan, first outlined on the Investor Day in December 2018. As part of that plan, restructuring actions have been taken to right-size under-performing businesses, address high cost severance markets and simplify operational structures. Further restructuring and transformation costs will be incurred in the second half of 2020 and 2021. In the period ended 30 June 2019, the remaining £10.3 million (year ended 31 December 2019: £32.4 million) primarily comprises transformation costs in relation to the global IT transformation programme.

In 2019, the Group received £16.8 million in settlement of a class action lawsuit against Comscore Inc. for providing materially false and misleading information regarding their company and its financial performance.

In March 2019, the Group entered into a sale and leaseback agreement for its office space at 3 Columbus Circle in New York. The Group sold the freehold for proceeds of £159.0 million and simultaneously entered into a 15-year lease. The net gain recognised from the sale and leaseback is £7.9 million.

In the period ended 30 June 2020, the Group received £28.6 million of aid from governments around the world in relation to the COVID-19 pandemic, predominantly in Western Continental Europe and Asia Pacific, which is included as a credit in other staff costs.

Management continues to assess the impact of COVID-19 on long-term working practices and the Group’s real estate portfolio, which could result in impairments of right-of-use assets in the future. At the current time, given the level of uncertainty, such impact has not been quantified and any resulting impairments could have an impact on the Group’s financial results.

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Share of results of associates

6 Months Ended

Jun. 30, 2020

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Share of results of associates

5. Share of results of associates

Share of results of associates include:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
	£m			£m			£m
Share of profit before interest and taxation		46.2			26.2			99.2
Share of exceptional losses		(51.4	)		(13.6	)		(47.8	)
Share of interest and non-controlling interests		(40.4	)		(8.0	)		(19.4	)
Share of taxation		(6.3	)		(3.1	)		(17.3	)
		(51.9	)		1.5			14.7

Note

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.    

Share of exceptional losses of £51.4 million (period ended 30 June 2019: £13.6 million, year ended 31 December 2019: £47.8 million) primarily comprise £27.3 million (period ended 30 June 2019: £nil, year ended 31 December 2019: £5.3 million) of amortisation and impairment of acquired intangible assets as well as restructuring and one-off transaction costs of £23.1 million (period ended 30 June 2019: £nil, year ended 31 December 2019: £20.3 million) within Kantar.

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Finance and investment income, finance costs and revaluation of financial instruments

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Finance and investment income, finance costs and revaluation of financial instruments

6. Finance and investment income, finance costs and revaluation of financial instruments

Finance and investment income includes:

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Income from equity investments		6.8		9.3		18.3
Interest income		44.4		32.5		80.7
		51.2		41.8		99.0

Finance costs include:

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Net interest expense on pension plans		1.4		1.8		3.5
Interest on other long-term employee benefits		1.4		1.8		3.9
Interest payable and similar charges		104.3		127.8		252.0
Interest expense related to lease liabilities		50.2		48.7		99.7
		157.3		180.1		359.1

Revaluation of financial instruments include:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
	£m			£m			£m
Movements in fair value of treasury instruments		(2.0	)		7.3			0.4
Premium on the early repayment of bonds		—			(32.2	)		(63.4	)
Revaluation of investments held at fair value through profit or loss		1.7			1.6			9.1
Revaluation of put options over non-controlling interests		26.0			(19.5	)		(13.5	)
Revaluation of payments due to vendors (earnout agreements)		4.3			(7.7	)		(1.0	)
		30.0			(50.5	)		(68.4	)

Note

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

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Segmental analysis

6 Months Ended

Jun. 30, 2020

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Segmental analysis

7. Segmental analysis

Reported contributions by reportable segments were as follows: 

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Revenue
Global Integrated Agencies		4,249.2		4,873.6		10,205.2
Public Relations		446.8		471.5		956.5
Specialist Agencies		886.7		1,023.1		2,072.4
		5,582.7		6,368.2		13,234.1
Revenue less pass-through costs2
Global Integrated Agencies		3,461.5		3,858.1		8,108.1
Public Relations		426.3		442.2		898.0
Specialist Agencies		779.9		899.1		1,840.4
Headline operating profit3
Global Integrated Agencies		256.0		463.5		1,219.5
Public Relations		71.9		67.9		140.6
Specialist Agencies		54.4		85.9		200.5
		382.3		617.3		1,560.6

Notes

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13. As a result, Data Investment Management is now excluded from the segment analysis.

2  Revenue less pass-through costs is revenue less media, and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media costs. See note 4 for more details of the pass-through costs.

3 A reconciliation from operating (loss)/profit to headline operating profit is provided in note 23.

Reported contributions by geographical area were as follows:

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Revenue
North America2		2,177.1		2,334.3		4,854.7
United Kingdom		757.6		907.7		1,797.1
Western Continental Europe		1,092.9		1,263.6		2,628.8
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe		1,555.1		1,862.6		3,953.5
		5,582.7		6,368.2		13,234.1
Revenue less pass-through costs3
North America2		1,856.1		1,951.3		4,034.3
United Kingdom		585.6		692.6		1,390.1
Western Continental Europe		919.5		1,041.7		2,176.4
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe		1,306.5		1,513.8		3,245.7
Headline operating profit4
North America2		215.4		278.3		662.0
United Kingdom		35.4		86.7		188.5
Western Continental Europe		43.8		96.5		261.5
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe		87.7		155.8		448.6
		382.3		617.3		1,560.6

Notes

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

2  North America includes the US with revenue of £2,065.2 million (period ended 30 June 2019: £2,203.8 million; year ended 31 December 2019: £4,576.5 million), revenue less pass-through costs of £1,757.5 million (period ended 30 June 2019: £1,843.0 million; year ended 31 December 2019: £3,806.3 million) and headline operating profit of £207.1 million (period ended 30 June 2019: £262.8 million; year ended 31 December 2019: £620.6 million).

3  Revenue less pass-through costs is revenue less media and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media costs. See note 4 for more details of the pass-through costs.

4 A reconciliation from operating (loss)/profit to headline operating profit is provided in note 23.

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Taxation

6 Months Ended

Jun. 30, 2020

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Taxation

8. Taxation

The tax rate on reported (loss)/profit before tax was -0.9% (30 June 2019: 26.7%; 31 December 2019: 28.0%).

The tax charge comprises:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
	£m			£m			£m
Corporation tax
Current year		35.7			187.4			423.0
Prior years		(1.7	)		(19.7	)		(63.4	)
		34.0			167.7			359.6
Deferred tax
Current year		(6.7	)		(46.7	)		(78.3	)
Prior years		(3.3	)		(11.7	)		(6.3	)
		(10.0	)		(58.4	)		(84.6	)
Tax charge		24.0			109.3			275.0

Note

1  Figures for the period ended 30 June 2019 figures have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

The tax charge may be affected by the impact of acquisitions, disposals and other corporate restructurings, the resolution of open tax issues, and the ability to use brought forward tax losses. Changes in local or international tax rules, or challenges by tax or competition authorities, for example, the European Commission’s state aid decision into Group Financing Exemption in the UK CFC rules, may expose the Group to additional tax liabilities or impact the carrying value of deferred tax assets, which could affect the future tax charge.

The Group does not currently expect any material additional charges, or credits, to arise in respect of these matters, beyond the amounts already provided. Liabilities relating to these open and judgemental matters are based upon estimates of whether additional taxes will be due after taking into account external advice where appropriate. Where the final tax outcome of these matters is different from the amounts which were initially recorded then such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made.

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Ordinary dividends

6 Months Ended

Jun. 30, 2020

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Ordinary dividends

9. Ordinary dividends

The Board has recommended an interim dividend of 10.0p (2019: 22.7p) per ordinary share. This is expected to be paid on 6 November 2020 to shareholders on the register at 9 October 2020. In March 2020, we announced the Board’s decision to suspend the 2019 final dividend of  37.3p per share to protect liquidity in light of the threat to liquidity and cash flow from the COVID-19 impact. The Board has now decided to cancel this dividend to contribute towards lower leverage.

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Earnings per share

6 Months Ended

Jun. 30, 2020

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Earnings per share

10. Earnings per share

Basic EPS

The calculation of basic EPS is as follows:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Earnings1 (£ million)		(2,626.5	)		269.2		627.9
Weighted average shares used in basic EPS calculation (million)		1,224.7			1,249.1		1,250.0
EPS		(214.5p	)		21.5p		50.2p

Discontinued operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Earnings1 (£ million)		(6.8	)		43.2		(3.8	)
Weighted average shares used in basic EPS calculation (million)		1,224.7			1,249.1		1,250.0
EPS		(0.5p	)		3.5p		(0.3p	)

Continued and discontinued operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Earnings1 (£ million)		(2,633.3	)		312.4		624.1
Weighted average shares used in basic EPS calculation (million)		1,224.7			1,249.1		1,250.0
EPS		(215.0p	)		25.0p		49.9p

Note

1  Earnings is equivalent to (loss)/profit for the period attributable to equity holders of the parent.

Diluted EPS

The calculation of diluted EPS is as follows:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Diluted earnings (£ million)		(2,626.5	)		269.2		627.9
Weighted average shares used in diluted EPS calculation1 (million)		1,224.7			1,257.3		1,260.6
Diluted EPS		(214.5p	)		21.4p		49.8p

Discontinued operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Diluted earnings (£ million)		(6.8	)		43.2		(3.8	)
Weighted average shares used in diluted EPS calculation1 (million)		1,224.7			1,257.3		1,260.6
Diluted EPS		(0.5p	)		3.4p		(0.3p	)

Continuing and discontinued operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Diluted earnings (£ million)		(2,633.3	)		312.4		624.1
Weighted average shares used in diluted EPS calculation1 (million)		1,224.7			1,257.3		1,260.6
Diluted EPS		(215.0p	)		24.8p		49.5p

Note

1  The weighted average shares used in the basic EPS calculation has also been used for diluted EPS due to the anti-dilutive effect of the weighted average shares calculated for the diluted EPS calculation.

A reconciliation between the shares used in calculating basic and diluted EPS is as follows:

	Six months ended 30 June 2020		Six months ended 30 June 2019		Year ended 31 December 2019
	m		m		m
Weighted average shares used in basic EPS calculation		1,224.7		1,249.1		1,250.0
Dilutive share options outstanding		—		0.1		0.3
Other potentially issuable shares		12.3		8.1		10.3
Weighted average shares used in diluted EPS calculation		1,237.0		1,257.3		1,260.6

At 30 June 2020 there were 1,296,079,242 (30 June 2019: 1,332,703,852, 31 December 2019: 1,328,167,813) ordinary shares in issue, including treasury shares of 70,750,170 (30 June 2019: 70,799,200, 31 December 2019: 70,787,730).

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Analysis of cash flows

6 Months Ended

Jun. 30, 2020

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Analysis of cash flows

11. Analysis of cash flows

The following tables analyse the items included within the main cash flow headings on page 3:

Net cash flow from operating activities:

	Six months ended 30 June 2020			Six months ended 30 June 2019			Year ended 31 December 2019
	£m			£m			£m
(Loss)/profit for the period		(2,602.3	)		349.4			717.9
Taxation		26.1			128.8			353.8
Revaluation of financial instruments		(30.0	)		57.2			77.8
Finance costs		157.6			189.2			376.4
Finance and investment income		(51.4	)		(43.6	)		(102.6	)
Share of results of associates		51.9			(8.0	)		(21.2	)
Goodwill impairment on classification as held for sale		—			—			94.5
Loss/(gain) on sale of discontinued operations		3.3			—			(73.8	)
Attributable tax expense on sale of discontinued operations		1.9			—			157.4
Non-cash share-based incentive plans (including share options)		30.6			32.5			71.4
Depreciation of property, plant and equipment		88.2			106.2			203.2
Depreciation of right-of-use assets		155.4			168.4			317.9
Goodwill impairment		2,520.8			—			47.7
Amortisation and impairment of acquired intangible assets		53.1			66.9			135.6
Amortisation of other intangible assets		9.6			18.3			29.6
Investment and other write-downs		220.6			—			7.5
Gains on disposal of investments and subsidiaries		(16.0	)		(40.6	)		(45.1	)
Gains on remeasurement of equity interests arising from a change in scope of ownership		—			(0.4	)		(0.4	)
Gain on sale of freehold property in New York		—			(7.9	)		(7.9	)
(Gains)/losses on sale of property, plant and equipment		(0.1	)		(0.6	)		3.2
Movements in trade working capital1, 2		(456.0	)		(296.7	)		563.4
Movements in other receivables, payables and provisions1		(294.7	)		(482.5	)		(213.1	)
Corporation and overseas tax paid		(201.2	)		(261.0	)		(536.0	)
Payment on early settlement of bonds		—			—			(63.4	)
Interest and similar charges paid		(77.4	)		(110.8	)		(270.6	)
Interest paid on lease liabilities		(48.6	)		(51.7	)		(105.1	)
Interest received		45.2			35.8			80.8
Investment income		6.8			9.3			18.3
Dividends received from associates		4.7			15.4			33.3
Net cash (outflow)/inflow from operating activities		(401.9	)		(126.4	)		1,850.5

Notes

1 The Group typically experiences an outflow of working capital in the first half of the financial year and an inflow in the second half. This is primarily due to the seasonal nature of working capital flows associated with its media buying activities on behalf of clients.

2  Trade working capital represents trade receivables, work in progress, accrued income, trade payables, and deferred income.

Acquisitions and disposals:

	Six months ended 30 June 2020			Six months ended 30 June 2019			Year ended 31 December 2019
	£m			£m			£m
Initial cash consideration		(5.9	)		(6.4	)		(3.9	)
Earnout payments		(88.5	)		(57.9	)		(130.2	)
Purchase of other investments (including associates)		(2.4	)		(8.6	)		(27.2	)
Acquisitions		(96.8	)		(72.9	)		(161.3	)
Proceeds on disposal of investments and subsidiaries		228.4			136.7			2,468.5
Cash and cash equivalents disposed		(24.5	)		(3.0	)		(327.5	)
Disposals of investments and subsidiaries		203.9			133.7			2,141.0
Cash consideration for non-controlling interests		(37.8	)		(9.1	)		(62.7	)
Net acquisition payments and disposal proceeds		69.3			51.7			1,917.0

Share repurchases and buybacks:

	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
	£m			£m		£m
Purchase of own shares by ESOP Trusts		(0.4	)		—		—
Shares purchased into treasury		(285.1	)		—		(43.8	)
		(285.5	)		—		(43.8	)

Net increase/(decrease) in borrowings:

	Six months ended 30 June 2020			Six months ended 30 June 2019			Year ended 31 December 2019
	£m			£m			£m
Net increase/(decrease) in drawings on bank loans		7.4			376.5			(70.6	)
Repayment of €250 million bonds		(223.1	)		—			—
Repayment of £200 million bonds		—			(199.5	)		(199.5	)
Partial repayment of $450 million bonds		—			(176.2	)		(176.2	)
Partial repayment of $272 million bonds		—			(135.4	)		(135.4	)
Repayment of €600 million bonds		—			—			(512.7	)
Repayment of $812 million bonds		—			—			(618.8	)
Proceeds from issue of €750 million bonds		665.5			—			—
Proceeds from issue of £250 million bonds		250.0			—			—
		699.8			(134.6	)		(1,713.2	)

Cash and cash equivalents:

	30 June 2020			30 June 2019			31 December 2019
	£m			£m			£m
Cash at bank and in hand		1,646.9			1,814.7			2,105.4
Short-term bank deposits		1,115.7			358.5			863.6
Overdrafts1		(226.5	)		(335.9	)		(235.7	)
		2,536.1			1,837.3			2,733.3

Note

1  Bank overdrafts are included in cash and cash equivalents because they form an integral part of the Group’s cash management.

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Debt financing

6 Months Ended

Jun. 30, 2020

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Debt financing

12. Debt financing

The Group estimates that the fair value of corporate bonds is £5,348.5 million at 30 June 2020 (30 June 2019: £5,783.4 million; 31 December 2019: £4,439.8 million). The carrying value of corporate bonds is £5,136.4 million at 30 June 2020 (30 June 2019: £5,535.2 million; 31 December 2019: £4,162.9 million). The Group considers that the carrying amount of bank loans at 30 June 2020 of £125.8 million (30 June 2019: £580.1 million; 31 December 2019: £110.4 million) approximates their fair value.

The following table is an analysis of future anticipated cash flows in relation to the Group’s debt, on an undiscounted basis which, therefore, differs from the carrying value:

	30 June 2020			30 June 2019			31 December 2019
	£m			£m			£m
Within one year		(249.8	)		(936.6	)		(324.8	)
Between one and two years		(366.9	)		(327.7	)		(204.0	)
Between two and three years		(532.0	)		(990.0	)		(692.1	)
Between three and four years		(793.7	)		(496.1	)		(726.3	)
Between four and five years		(1,145.4	)		(1,114.7	)		(634.2	)
Over five years		(3,461.7	)		(3,500.3	)		(2,761.9	)
Debt financing (including interest) under the Revolving Credit Facility and in relation to unsecured loan notes		(6,549.5	)		(7,365.4	)		(5,343.3	)
Short-term overdrafts – within one year		(226.5	)		(335.9	)		(235.7	)
Future anticipated cash flows		(6,776.0	)		(7,701.3	)		(5,579.0	)
Effect of discounting/financing rates		1,287.9			1,257.1			1,070.4
Debt financing		(5,488.1	)		(6,444.2	)		(4,508.6	)

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Assets held for sale and discontinued operations

6 Months Ended

Jun. 30, 2020

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Assets held for sale and discontinued operations

13. Assets held for sale and discontinued operations

On 12 July 2019, the Group announced the proposed sale of its Kantar business to Bain Capital. The sale involved the Group disposing of the Kantar business and holding a 40% equity stake post-transaction which is treated as an associate. On 5 December 2019 the first stage of the transaction completed with consideration of £2,140.2 million after tax and disposal costs. This generated a pre-tax gain of £73.8 million, tax charge of £157.4 million and goodwill impairment of £94.5 million for the Group. In the period ended 30 June 2020 the second, third and fourth stages of the transaction completed with total consideration of £200.1 million after tax and disposal costs. This generated a pre-tax loss of £3.3 million, and a tax charge of £1.9 million. The final stages of the transaction are expected to complete in the second half of the year with further consideration expected to be approximately £50.0 million after tax and disposal costs.

Under IFRS 5: Non-current Assets Held for Sale and Discontinued Operations where certain conditions are met, an asset or disposal group that has been put up for sale should be recognised as ‘held for sale’. The criterion was met on 9 July 2019, following Board approval of the disposal of Kantar to Bain Capital, representing the date at which the appropriate level of management was committed to a plan to sell the disposal group. The Kantar disposal group therefore became held for sale on this date.

The Kantar group is classified as a discontinued operation in 2019 and 2020 under IFRS 5, as it forms a separate major line of business and there was a single co-ordinated plan to dispose of it.

As at 30 June 2020 the Kantar group is therefore presented as a discontinued operation with the remaining portion of the company not yet sold by 30 June 2020 disclosed as held for sale. Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5.

Results of the discontinued operations, which have been included in profit for the year, were as follows:

	Six months ended 30 June 2020			Six months ended 30 June 2019			Year ended 31 December 2019
	£m			£m			£m
Revenue		101.9			1,247.8			2,387.5
Costs of services		(87.4	)		(1,061.4	)		(1,951.5	)
Gross profit		14.5			186.4			436.0
General and administrative costs		(4.0	)		(109.7	)		(151.7	)
Operating profit		10.5			76.7			284.3
Share of results of associates		—			6.5			6.5
Profit before interest and taxation		10.5			83.2			290.8
Finance income		0.2			1.8			3.6
Finance costs		(0.3	)		(9.1	)		(17.3	)
Revaluation of financial instruments		—			(6.7	)		(9.4	)
Profit before taxation		10.4			69.2			267.7
Attributable tax expense		(2.1	)		(19.5	)		(78.8	)
Profit after taxation		8.3			49.7			188.9
Goodwill impairment on classification as held for sale1		—			—			(94.5	)
(Loss)/gain on sale of discontinued operations		(3.3	)		—			73.8
Attributable tax expense on sale of discontinued operations		(1.9	)		—			(157.4	)
Net gain attributable to discontinued operations		3.1			49.7			10.8
Attributable to:
Equity holders of the parent		(6.8	)		43.2			(3.8	)
Non-controlling interests2		9.9			6.5			14.6
		3.1			49.7			10.8

Note

1  Goodwill impairment of £94.5 million arose from the assessment of fair value less costs to sell under IFRS 5 in the year ended 31 December 2019.

2  In 2020, non-controlling interests includes £9.3 million recognised on the disposal of Kantar within WPP Scangroup, a 56.25% owned subsidiary of the Group.

For the period ended 30 June 2020, the Kantar group contributed £26.8 million (period ended 30 June 2019: £135.2 million, year ended 31 December 2019: £322.9 million) to the Group’s net operating cash flows, paid £1.1 million (period ended 30 June 2019: £26.5 million, year ended 31 December 2019: £53.2 million) in respect of investing activities and paid £0.9 million (period ended 30 June 2019: £18.8 million, year ended 31 December 2019: £27.2 million) in respect of financing activities.

The gain on sale of discontinued operations is calculated as follows:

	30 June 2020			31 December 2019
	£m			£m
Intangible assets (including goodwill)		150.9			2,410.0
Property, plant and equipment		13.7			115.7
Right-of-use assets		24.2			103.5
Interests in associates and joint ventures		2.0			92.3
Other investments		—			11.5
Deferred tax assets		5.5			44.1
Corporate income tax recoverable		15.0			49.8
Trade and other receivables		157.6			748.8
Cash and cash equivalents		19.8			324.9
Trade and other payables		(129.0	)		(839.8	)
Corporate income tax payable		(4.0	)		(48.2	)
Lease liabilities		(20.5	)		(106.3	)
Deferred tax liabilities		(1.3	)		(98.6	)
Provisions for post-employment benefits		(6.7	)		(26.7	)
Provisions for liabilities and charges		(0.6	)		(22.4	)
Net assets		226.6			2,758.6
Non-controlling interests		(5.9	)		(19.1	)
Net assets excluding non-controlling interests		220.7			2,739.5
Consideration received in cash and cash equivalents		191.3			2,352.1
Re-investment in equity stake1		—			231.7
Transaction costs		(3.8	)		(56.1	)
Deferred consideration2		14.5			1.6
Total consideration received		202.0			2,529.3
Loss on sale before exchange adjustments		(18.7	)		(210.2	)
Exchange adjustments recycled to the income statement		15.4			284.0
(Loss)/gain on sale of discontinued operations		(3.3	)		73.8

Notes

1  Re-investment in equity stake represents the value of the Group’s 40% stake in the new Kantar group as part of the disposal.

2  Deferred consideration in the year ended 31 December 2019 is made up of £79.6 million expected to be received in future periods on the satisfaction of certain conditions and the deferral of £78.0 million consideration against services the Group will supply to Kantar on favourable terms in the future.

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Goodwill and acquisitions

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Goodwill and acquisitions

14. Goodwill and acquisitions

Cash-generating units (CGUs) with significant goodwill and brands with an indefinite useful life as at 30 June are:

	Goodwill				Brands with an indefinite useful life
	30 June 2020		31 December 2019		30 June 2020		31 December 2019
CGU	£m		£m		£m		£m
GroupM		3,072.2		2,936.0		—		—
Wunderman Thompson		1,167.2		2,138.9		433.3		409.7
VMLY&R		460.6		901.0		203.6		199.1
Ogilvy		828.1		762.9		218.5		211.1
Burson Cohn & Wolfe		651.3		741.4		138.0		130.2
Other		1,940.8		2,690.5		136.4		128.1
		8,120.2		10,170.7		1,129.8		1,078.2

Other goodwill represents goodwill on a large number of CGUs, none of which is individually significant in comparison to the total carrying value of goodwill. Separately identifiable brands with an indefinite life are carried at historical cost in accordance with the Group’s accounting policy for intangible assets. The carrying values of the other brands with an indefinite useful life are not individually significant in comparison with the total carrying value of brands with an indefinite useful life.

Goodwill in relation to subsidiary undertakings decreased by £2,050.5 million (30 June 2019: increased by £49.3 million) in the period. This movement primarily relates to impairment charges of £2,520.8 million, partially offset by the effect of currency translation of £473.3 million, as well as both goodwill arising on acquisitions completed in the year and adjustments to goodwill relating to acquisitions completed in prior years.

In accordance with the Group’s accounting policy, the carrying values of goodwill and intangible assets with indefinite useful lives are reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Given the COVID-19 pandemic, impairment indicators such as a decline in revenue less pass-through costs forecasts, and downturns in the global economy and the advertising industry were identified in the first half of 2020. As such, the Group performed an impairment test over goodwill and intangible assets with indefinite useful lives as at 30 June 2020.

Under IFRS, an impairment charge is required for both goodwill and other indefinite-lived assets when the carrying amount exceeds the “recoverable amount”, defined as the higher of fair value less costs to sell and value in use. The review assessed whether the carrying value of goodwill and intangible assets with indefinite useful lives was supported by the value in use determined as the net present value of future cash flows.

Due to a significant number of  CGUs, the impairment test was performed in two steps. In the first step, the recoverable amount was calculated for each CGU using the latest available forecasts for 2020, nil growth rate thereafter (2019: 3.0%) and  a conservative pre-tax discount rate of 13.5% (2019: 8.5%). The pre-tax discount rate of 13.5% was above the rate calculated for the global networks of 12.5%. For smaller CGUs that operate primarily in a particular region subject to higher risk, the higher of 13.5% or 100 basis points above the regional discount rate was used in the first step.

The recoverable amount was then compared to the carrying amount. CGUs where the recoverable amount exceeded the carrying amount were not considered to be impaired. Those CGUs where the recoverable amount did not exceed the carrying amount were then further reviewed in the second step.

In the second step, the CGUs were retested for impairment using more refined assumptions. This included using a CGU specific pre-tax discount rate and management forecasts for a projection period of up to five-years, followed by an assumed long-term growth rate of 2.0% (2019: 3.0%). If the recoverable amount using the more specific assumptions did not exceed the carrying value of a CGU, an impairment charge was recorded.

In developing the cash flows, we considered the impact of the COVID-19 pandemic to our businesses and adjusted projected revenue less pass-through costs and operating margins in 2020 accordingly. For the remaining years in the projection period, we assessed when the cash flows would recover to 2019 levels as representative of pre-COVID-19 revenue less pass-through costs and operating margins. For many of our CGUs, recovery to 2019 levels by 2023 was estimated with some CGUs using alternative recovery profiles as considered appropriate.

The long-term growth rate is derived from management’s best estimate of the likely long-term trading performance with reference to external industry reports and other relevant market trends. As at 30 June 2020, we have assessed long-term industry trends based on recent historical data including the long-term impact of COVID-19 and assumed a long-term growth rate of 2.0% (2019: 3.0%). Management have made the judgement that the long-term growth rate does not exceed the long-term average growth rate for the industry.

The discount rate uses the capital asset pricing model “CAPM” to derive the cost of equity along with an estimated cost of debt that is weighted by an appropriate capital structure to derive an indication of a weighted average cost of capital. The cost of equity is calculated based on long-term government bond yield, an estimate of the required premium for investment in equity relative to government securities and further considers the volatility associated with peer public companies relative to the market. The cost of debt reflects an estimated market yield for long-term debt financing after taking into account the credit profile of public peer companies in the industry. The capital structure used to weight the cost of equity and cost of debt has been derived from the observed capital structure of public peer companies.

Given current market factors, there has been an increase in the estimated cost of equity. This has been driven by increased levels of market uncertainty and volatility which is reflected in the market valuations for global advertising agencies. This has led to upward adjustments to the estimates for the equity risk premium as well as the applicable beta (i.e. volatility of public peer companies relative to the market). Additionally, given the magnitude of the declines in our market capitalisation, the cost of equity reflects an increase in the size premium applicable to the Group, and a company specific risk premium to reflect implied market discount rates. This increase in the cost of equity, combined with an increase in the cost of debt as a result of increased corporate bond yields, resulted in the discount rates applied to our CGUs increasing relative to the prior year.

The pre-tax discount rate applied to the cash flow projections for the CGUs that operate globally was 12.5% (2019: 6.3% to 7.4%). We developed a global discount rate that takes into account the diverse nature of the operations as these CGUs operate with a diverse range of clients in a range of industries throughout the world, hence are subject to similar levels of market risks. The pre-tax discount rates applied to the CGUs that have more regional specific operations ranged from 10.8% to 19.3% (2019: 4.1% to 13.6%).

Our approach in determining the recoverable amount utilises a discounted cash flow methodology, which necessarily involves making numerous estimates and assumptions regarding revenue less pass-through costs growth, operating margins, appropriate discount rates and working capital requirements. The key assumptions used for estimating cash flow projections in the Group’s impairment testing are those relating to revenue less pass-through costs growth and operating margins. The key assumptions take account of the businesses’ expectations for the projection period. These expectations consider the macroeconomic environment, industry and market conditions, the CGU’s historical performance and any other circumstances particular to the unit, such as business strategy and client mix.

These estimates will likely differ from future actual results of operations and cash flows, and it is possible that these differences could be material. In addition, judgements are applied in determining the level of CGU identified for impairment testing and the criteria used to determine which assets should be aggregated. A difference in testing levels could affect whether an impairment is recorded and the extent of impairment loss.

As part of the overall effort to simplify operations and become more client-centric, certain operations have been realigned between the various networks. These realignments have been reflected in the CGUs being tested. The most significant of these include the treatment of Landor and FITCH as a single CGU given the collaboration of the two brands from both a management and client perspective; the shift of certain European operations into VMLY&R, and the transfer of certain Asian operations from VMLY&R to Ogilvy in order to improve the operational synergies and offer in the respective regions. The transfers of carrying value between CGUs were determined on a relative value basis. The impact of these realignments has not had a significant impact on the impairment figures recognised.

The goodwill impairment charge of £2,520.8 million largely reflects the adverse impacts of COVID-19 to a number of businesses in the Group. The impact of these global economic conditions and trading circumstances was sufficiently severe to indicate impairment to the carrying value of goodwill. By operating sector, £1,630.9 million of the impairment charge relates to Global Integrated Agencies, £144.8 million relates to Public Relations and £745.1 million relates to Specialist Agencies.

The CGUs with significant impairments of goodwill as at 30 June 2020 are set out in the below table. 

	Operating Sector	Recoverable amount		Goodwill impairment charge
CGU		£m		£m
Wunderman Thompson	Global Integrated Agencies		1,932.2		1,071.4
VMLY&R	Global Integrated Agencies		918.3		472.0
Burson Cohn & Wolfe	Public Relations		859.8		129.1
Geometry Global	Specialist Agencies		205.9		232.9
Landor & FITCH	Specialist Agencies		197.5		158.3
Other	Other		1,349.3		457.1

Sensitivity of CGUs with an impairment charge

The impairment review is sensitive to changes in the assumptions used, most notably to changes in the revenue less pass-through costs growth and operating margins used to derive cash flows during the 5-year projection period, the terminal cash flow growth rate, and discount rate. The revenue less pass-through costs growth rates used in the 5-year projection period for impaired CGUs that operate globally resulted in compound annual growth rates of 2.5% to 5.0%. The operating margins used in the 5-year projection period for impaired CGUs that operate globally resulted in average operating margins of 6.6% to 19.0%. Long-term cash flow growth rates and discount rates used in the test are discussed above. A summary of the movements in the impairment charge from a reasonably possible change in these assumptions is as follows:

	Impact of changes to assumptions in 5-year projection period				Impact of change to terminal value assumptions		Impact of change to pre-tax discount rate
CGU	Revenue less pass-through costs growth rate +/- 0.5%		Operating margin% +/- 0.5%		Long-term cash flow growth rate +/- 0.5%		+1.5%			-1.5%
	£m		£m		£m		£m			£m
Wunderman Thompson		19.2		70.8		54.6		(210.2	)		279.4
VMLY&R		8.3		37.7		22.9		(100.1	)		132.0
Burson Cohn & Wolfe		9.6		21.8		26.9		(98.7	)		129.1
Geometry Global		1.2		13.5		3.6		(22.3	)		29.7
Landor & FITCH		2.1		6.5		6.0		(23.5	)		31.3
Other		11.9		47.8		33.9		(136.4	)		164.2
		52.3		198.1		147.9		(591.2	)		765.7

Sensitivity of CGUs not impaired

For the CGUs not impaired in the period, a reasonably possible change in assumptions would not lead to a significant impairment.

Acquisitions

The contribution to revenue and operating profit of acquisitions completed in the period was not material. There were no material acquisitions completed during the period or between 30 June 2020 and the date the interim financial statements were approved.

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Other intangible assets

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Other intangible assets

15. Other intangible assets

The following are included in other intangibles:

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Brands with an indefinite useful life		1,129.8		1,141.2		1,078.2
Acquired intangibles		284.4		530.4		323.6
Other (including capitalised computer software)		74.7		114.6		67.0
		1,488.9		1,786.2		1,468.8

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Trade and other receivables

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Trade and other receivables

16. Trade and other receivables

Amounts falling due within one year:

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Trade receivables		5,175.7		7,713.8		7,007.6
Work in progress		312.4		419.5		349.5
VAT and sales taxes recoverable		272.5		270.6		212.7
Prepayments		311.6		391.0		287.1
Accrued income		2,703.2		3,731.1		3,292.7
Fair value of derivatives		0.6		10.0		1.4
Other debtors		627.3		634.2		671.3
		9,403.3		13,170.2		11,822.3

Amounts falling due after more than one year:

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Prepayments		1.7		2.8		2.2
Accrued income		—		22.8		—
Fair value of derivatives		—		6.3		—
Other debtors		142.3		150.8		135.4
		144.0		182.7		137.6

The Group has applied the practical expedient permitted by IFRS 15 to not disclose the transaction price allocated to performance obligations unsatisfied (or partially unsatisfied) as of the end of the reporting period as contracts typically have an original expected duration of a year or less.

The Group considers that the carrying amount of trade and other receivables approximates their fair value.

Expected credit losses

The Group has applied the simplified approach to measuring expected credit losses, as permitted by IFRS 9: Financial Instruments. Therefore the Group does not track changes in credit risk over the life of a financial asset, but recognises a loss allowance based on the financial asset’s lifetime expected credit loss. Under IFRS 9, the expected credit losses are measured as the difference between the asset’s gross carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. Given the short-term nature of the Group’s trade receivables, work in progress and accrued income, which are mainly due from large national or multinational companies, the Group assessment of expected credit losses includes provisions for specific clients and receivables where the contractual cash flow is deemed at risk. Additional provisions are made based on the assessment of recoverability of aged receivables, where the following criteria are met:

–– 100% of the asset aged over one year;

–– 50% of the asset aged between 180 days and one year; and

–– sufficient evidence of recoverability is not evident.

These criteria form the basis of expected future losses based on historical loss rates. As a result of the COVID-19 pandemic, the Group also performed a detailed review of trade receivables, work-in-progress and accrued income aged less than 180 days, taking into account the level of credit insurance the Group has along with internal and external data including historical and forward looking information. This review focused on significant individual clients along with the industry and country in which the clients operate where there is increased risk due to the pandemic.

This resulted in a bad debt expense of £29.2 million (period ended 30 June 2019: £12.3 million; year ended 31 December 2019: £25.8 million) on the Group’s trade receivables in the period. The allowance for bad and doubtful debts is equivalent to 2.5% (30 June 2019: 1.6%; 31 December 2019: 1.6%) of gross trade receivables.

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Trade and other payables: amounts falling due within one year

6 Months Ended

Jun. 30, 2020

Within one year [member]

Statement [LineItems]

Trade and other payables: amounts falling due within one year

17. Trade and other payables: amounts falling due within one year

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Trade payables		7,279.2		9,945.7		10,112.1
Deferred income		968.7		1,377.3		1,024.6
Payments due to vendors (earnout agreements)		65.4		167.6		142.4
Liabilities in respect of put option agreements with vendors		47.0		41.4		75.4
Fair value of derivatives		2.7		4.0		1.5
Share repurchases - close period commitments1		—		—		252.3
Other creditors and accruals		2,409.3		2,829.7		2,578.5
		10,772.3		14,365.7		14,186.8

Note

1 During 2019, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 2 January 2020 and ending on 27 February 2020, in accordance with UK listing rules. The commitment resulting from this agreement constitutes a liability at 31 December 2019, which is included in Trade and other payables: amounts falling due within one year and has been recognised as a movement in equity.

The Group considers that the carrying amount of trade and other payables approximates their fair value.

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Trade and other payables: amounts falling due after more than one year

6 Months Ended

Jun. 30, 2020

More than one year

Statement [LineItems]

Trade and other payables: amounts falling due after more than one year

18. Trade and other payables: amounts falling due after more than one year

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Payments due to vendors (earnout agreements)		101.2		203.9		111.4
Liabilities in respect of put option agreements with vendors		120.5		223.0		151.4
Fair value of derivatives		0.6		—		21.2
Other creditors and accruals		164.0		140.8		199.3
		386.3		567.7		483.3

The Group considers that the carrying amount of trade and other payables approximates their fair value.

The following table sets out payments due to vendors, comprising contingent consideration and the Directors’ best estimates of future earnout-related obligations:

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Within one year		65.4		167.6		142.4
Between 1 and 2 years		26.1		90.0		36.9
Between 2 and 3 years		15.5		44.1		37.5
Between 3 and 4 years		28.1		36.9		14.8
Between 4 and 5 years		27.8		22.4		9.7
Over 5 years		3.7		10.5		12.5
		166.6		371.5		253.8

The Group’s approach to payments due to vendors is outlined in note 22.

The following table sets out the movements of deferred and earnout related obligations during the period:

	Six months ended 30 June 2020			Six months ended 30 June 2019			Year ended 31 December 2019
	£m			£m			£m
At the beginning of the period		253.8			414.7			414.7
Earnouts paid		(88.5	)		(57.9	)		(130.0	)
New acquisitions		2.9			3.9			9.6
Revision of estimates taken to goodwill		(3.0	)		1.1			(14.3	)
Revaluation of payments due to vendors (note 6)		(4.3	)		8.4			1.1
Transfer to disposal group classified as held for sale		—			—			(11.5	)
Exchange adjustments		5.7			1.3			(15.8	)
At the end of the period		166.6			371.5			253.8

The Group does not consider there to be any material contingent liabilities at 30 June 2020.

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Issued share capital

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Issued share capital

19. Issued share capital

	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Number of equity ordinary shares	m			m		m
At the beginning of the period		1,328.2			1,332.7		1,332.7
Share cancellations		(32.1	)		—		(4.5	)
At the end of the period		1,296.1			1,332.7		1,328.2

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Related party transactions

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Related party transactions

20. Related party transactions

The Group enters into transactions with its associate undertakings.

The Group has continuing transactions with Kantar, including sales, purchases, the provision of IT services, subleases and property related items. None of these were material in the period after 5 December 2019 when Kantar became an associate, to 31 December 2019, or in the period ended 30 June 2020.

In the period ended 30 June 2020, revenue of £49.7 million was reported in relation to Compas, an associate in the USA. All other transactions in the periods presented were immaterial.

The following amounts were outstanding at 30 June 2020:

	30 June 2020			30 June 2019			31 December 2019
	£m			£m			£m
Amounts owed by related parties
Kantar		79.2			—			87.5
Other		27.8			82.7			87.5
		107.0			82.7			175.0
Amounts owed to related parties
Kantar		(14.6	)		—			(36.5	)
Other		(61.9	)		(56.0	)		(49.6	)
		(76.5	)		(56.0	)		(86.1	)

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Going concern and risk management policies

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Going concern and risk management policies

21. Going concern and risk management policies

In considering going concern and liquidity risk, the Directors have reviewed the Group’s future cash requirements and earnings projections. The Directors believe these forecasts have been prepared on a prudent basis and have also considered the impact of a range of potential changes to trading performance. The Company’s forecasts and projections, taking account of (i) reasonably possible declines in revenue less pass-through costs; (ii) remote declines in revenue less pass-through costs for stress-testing purposes as a consequence of the COVID-19 pandemic compared to 2019; and considering the Group’s bank covenant and liquidity headroom taking into account the suspension of share buybacks and the cancellation of the final dividend in 2019 and cost mitigation actions which are and which could be implemented, show that the Company and the Group would be able to operate with appropriate liquidity and within its banking covenants and be able to meet its liabilities as they fall due. The Company modelled a range of revenue less pass-through costs declines from 15% to over 35%. The Directors have concluded that the Group will be able to operate within its current facilities and comply with its banking covenants for the foreseeable future and therefore believe it is appropriate to prepare the financial statements of the Group on a going concern basis and that there are no material uncertainties which gives rise to a significant going concern risk. The potential impact of Brexit has been considered and is not deemed to have a significant effect on this assessment.

At 30 June 2020, the Group has access to £7.4 billion of committed facilities with maturity dates spread over the years 2021 to 2046 as illustrated below:

	Maturity by year
			2021		2022		2023		2024		2025+
	£m		£m		£m		£m		£m		£m
£ bonds £400m (2.875% ’46)		400.0										400.0
US bond $220m (5.625% ’43)		177.6										177.6
US bond $93m (5.125% ’42)		75.0										75.0
£ bonds £250m (3.75% ’32)		250.0										250.0
Eurobonds €600m (1.625% ’30)		545.0										545.0
Eurobonds €750m (2.375% ’27)		681.2										681.2
Eurobonds €750m (2.25% ’26)		681.2										681.2
Eurobonds €500m (1.375% ’25)		454.1										454.1
US bond $750m (3.75% ’24)		605.9								605.9
Bank revolver ($2,500m ‘24)		2,019.5								2,019.5
Eurobonds €750m (3.0% ’23)		681.2						681.2
US bond $500m (3.625% ’22)		403.9				403.9
Eurobonds €250m (3m EURIBOR + 0.45% ’22)		227.1				227.1
Bank revolver (A$420m ‘21)		233.8		233.8
Total committed facilities available		7,435.5		233.8		631.0		681.2		2,625.4		3,264.1
Drawn down facilities at 30 June 2020		5,291.9		109.7		631.0		681.2		605.9		3,264.1
Undrawn committed credit facilities		2,143.6

Given its debt maturity profile and available facilities, the Directors believe the Group has sufficient liquidity to match its requirements for the foreseeable future.

Treasury management

The Group’s treasury activities are principally concerned with monitoring of working capital, managing external and internal funding requirements and monitoring and managing financial market risks, in particular risks from movements in interest and foreign exchange rates. 

The Group’s risk management policies relating to foreign currency risk, interest rate risk, liquidity risk, capital risk and credit risk are presented in the notes to the consolidated financial statements of the 2019 Annual Report on Form 20-F and in the opinion of the Board remain relevant for the remaining six months of the year.

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Financial instruments

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Financial instruments

22. Financial instruments

The fair values of financial assets and liabilities are based on quoted market prices where available. Where the market value is not available, the Group has estimated relevant fair values on the basis of publicly available information from outside sources or on the basis of discounted cash flow models where appropriate.

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into levels 1 to 3 based on the degree to which the fair value is observable, or based on observable inputs:

Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);

Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

	Level 1		Level 2			Level 3
	£m		£m			£m
30 June 2020
Derivatives in designated hedge relationships
Derivative assets		—		—			—
Derivative liabilities		—		(0.6	)		—
Held at fair value through profit or loss
Other investments		—		—			258.7
Derivative assets		—		0.6			—
Derivative liabilities		—		(2.7	)		—
Payments due to vendors (earnout agreements) (note 18)		—		—			(166.6	)
Liabilities in respect of put options		—		—			(167.5	)
Held at fair value through other comprehensive income
Other investments		28.4		—			110.9

Reconciliation of level 3 fair value measurements:

	Liabilities in respect of put options			Other investments
	£m			£m
1 January 2020		(226.8	)		456.1
Gains recognised in the income statement		26.0			1.7
Losses recognised in other comprehensive income		—			(88.7	)
Exchange adjustments		(1.3	)		—
Additions		(1.5	)		3.0
Disposals		—			(2.5	)
Cancellations		28.9			—
Settlements		7.2			—
30 June 2020		(167.5	)		369.6

Payments due to vendors and liabilities in respect of put options

Future anticipated payments due to vendors in respect of contingent consideration (earnout agreements) are recorded at fair value, which is the present value of the expected cash outflows of the obligations. Liabilities in respect of put option agreements are initially recorded at the present value of the redemption amount in accordance with IAS 32 and subsequently measured at fair value in accordance with IFRS 9. Both types of obligations are dependent on the future financial performance of the entity and it is assumed that future profits are in line with Directors’ estimates. The Directors derive their estimates from internal business plans together with financial due diligence performed in connection with the acquisition. At 30 June 2020, the weighted average growth rate in estimating future financial performance was 16.6%, which reflects the prevalence of recent acquisitions in the faster growing markets and new media sectors. The risk adjusted discount rate applied to these obligations at 30 June 2020 was 1.3%.

A one percentage point increase or decrease in the growth rate in estimated future financial performance would increase or decrease the combined liabilities due to earnout agreements and put options by approximately £3.8 million and £3.7 million, respectively. A 0.5 percentage point increase or decrease in the risk adjusted discount rate would decrease or increase the combined liabilities by approximately £4.7 million and £4.8 million, respectively. An increase in the liability would result in a loss in the revaluation of financial instruments (note 6), while a decrease would result in a gain.

Other investments

The fair value of other investments included in level 1 are based on quoted market prices. Other investments included in level 3 are unlisted securities, where market value is not readily available. The Group has estimated relevant fair values on the basis of publicly available information from outside sources. Certain investments are valued using revenue multiples. An increase or decrease in this multiple of 0.5 times revenue would result in an increase or decrease in the value of investments of £26.9 million, which would result in a credit or charge to the income statement of £1.5 million and equity of £25.4 million. The sensitivity to changes in unobservable inputs for certain other investments is specific to each individual investment.

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Reconciliation of operating profit to headline operating profit

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Reconciliation of operating profit to headline operating profit

23. Reconciliation of operating (loss)/profit to headline operating profit

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
	£m			£m			£m
Operating (loss)/profit		(2,453.4	)		596.3			1,295.9
Amortisation and impairment of acquired intangible assets		53.1			52.8			121.5
Goodwill impairment		2,520.8			—			47.7
Gains on disposal of investments and subsidiaries		(16.0	)		(40.6	)		(40.4	)
Gains on remeasurement of equity interests arising from a change in scope of ownership		—			(0.4	)		(0.4	)
Investment and other write-downs		220.6			—			7.5
Litigation settlement		—			(16.8	)		(16.8	)
Gain on sale of freehold property in New York		—			(7.9	)		(7.9	)
Restructuring and transformation costs		17.9			33.9			153.5
Restructuring costs in relation to COVID-19		39.3			—			—
Headline operating profit		382.3			617.3			1,560.6

Note

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

Headline operating profit is one of the metrics that management uses to assess the performance of the business.

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Accounting policies (Policies)

6 Months Ended

Jun. 30, 2020

Accounting policies [Line Items]

Impact of Interest Rate Benchmark Reform

Impact of Interest Rate Benchmark Reform

The amendments issued by the IASB, Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7), are mandatory and are effective from 1 January 2020. They provide relief on specific aspects of pre-replacement issues that impact hedge accounting, whereby entities applying hedge accounting requirements will be able to assume that the interest rate benchmark on which the hedged cash flows and cash flows of the hedging instrument are based are not altered as a result of Interest Rate Benchmark Reform. The Group does not consider that these amendments have a significant impact on the financial statements as they provide relief for the possible effects of the uncertainty arising from interest rate benchmark reform.

Impact of COVID-19

Impact of COVID-19 on critical judgements and estimation uncertainty

The critical judgements and estimation uncertainty in applying accounting policies set out on page F-15 of the 2019 Annual Report on Form 20-F remain applicable. However, the level of judgement and estimation uncertainty has increased since 31 December 2019 due to the impact of the COVID-19 pandemic. COVID-19 has had the most significant impact on the following areas of estimation uncertainty: 

Impairment of goodwill:

Given the COVID-19 pandemic, impairment indicators such as a decline in revenue less pass-through costs forecasts, and downturns in the global economy and the advertising industry were identified in the first half of 2020. As such, the Group performed an impairment test over goodwill and intangible assets with indefinite useful lives as at 30 June 2020. In performing the impairment test, estimates are required in regard to the discount rates, long-term growth rates and the level of cash flows during the five-year projection period, which involves judgement on the duration and shape of the recovery from COVID-19 in this period. Further details of the goodwill impairment charge and sensitivity to these estimates are outlined in note 14.

Expected credit losses:

Under IFRS 9, the expected credit losses are measured as the difference between the asset’s gross carrying amount and the present value of discounted estimated future cash flows. As a result of the COVID-19 pandemic on the Group’s clients, estimates of future cash flows from clients involve significant judgement. The Group performed a detailed review of trade receivables, work in progress and accrued income at 30 June 2020, focusing on significant individual clients along with the industry and country in which the clients operate where there is increased risk due to the pandemic. The Group’s approach to expected credit losses is outlined in note 16.

Payments due to vendors (earnout agreements) and liabilities in respect of put options:

When measuring the liabilities for earnouts and put options, estimates are required regarding discount rates and growth rates in determining future financial performance, which involves judgement on the duration and shape of the recovery from COVID-19 in this period. Further details on growth rates, discount rates and the sensitivity to these estimates are set out in note 22.

Government Support

In reaction to the COVID-19 pandemic, certain governments have introduced measures to assist companies. A reduction to operating costs is recorded in relation to government subsidies/schemes (such as furlough measures) where these amounts will never have to be repaid. Further details of such amounts are included in note 4. In other cases, this involves the deferral of certain tax payments in order to stimulate the economy. The deferral of payments does not impact the income statement and these are charged as normal in the period they are incurred.

The unaudited condensed consolidated interim financial statements were approved by the board of directors and authorized for issue on 3 September 2020.

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Costs of services and general and administrative costs (Tables)

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Costs of Services and General Administrative Costs

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Costs of services		4,804.7		5,328.8		10,825.1
General and administrative costs		3,231.4		443.1		1,113.1
		8,036.1		5,771.9		11,938.2

Note

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

Costs of services and general and administrative costs include:

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Staff costs		3,330.0		3,501.7		7,090.6
Establishment costs		314.4		331.7		672.9
Media pass-through costs		613.7		818.8		1,656.2
Other costs of services and general and administrative costs2		3,778.0		1,119.7		2,518.5
		8,036.1		5,771.9		11,938.2

Notes

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

2  Other costs of services and general and administrative costs include £301.3 million (period ended 30 June 2019: £350.0 million; year ended 31 December 2019: £731.4 million) of other pass through costs.

Staff costs include:

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Wages and salaries		2,417.5		2,442.5		4,946.2
Cash-based incentive plans		17.2		64.8		227.6
Share-based incentive plans		30.6		30.0		66.0
Social security costs		304.6		304.9		591.7
Pension costs		86.4		83.5		169.7
Severance		18.8		16.1		42.6
Other staff costs		454.9		559.9		1,046.8
		3,330.0		3,501.7		7,090.6

Note

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

Other costs of services and general and administrative costs include:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
	£m			£m			£m
Amortisation and impairment of acquired intangible assets		53.1			52.8			121.5
Goodwill impairment		2,520.8			—			47.7
Gains on disposal of investments and subsidiaries		(16.0	)		(40.6	)		(40.4	)
Gains on remeasurement of equity interests arising from a change in scope of ownership		—			(0.4	)		(0.4	)
Investment and other write-downs		220.6			—			7.5
Restructuring and transformation costs		17.9			33.9			153.5
Restructuring costs in relation to COVID-19		39.3			—			—
Litigation settlement		—			(16.8	)		(16.8	)
Gain on sale of freehold property in New York		—			(7.9	)		(7.9	)
Depreciation of property, plant and equipment		88.2			88.5			185.5
Amortisation of other intangible assets		9.6			9.9			21.2
Depreciation of right-of-use assets		155.4			152.1			301.6
Short-term lease expense		19.7			49.9			83.8
Low-value lease expense		1.1			1.2			2.9

Note

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

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Share of results of associates (Tables)

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Summary of Share of Results of Associates

Share of results of associates include:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
	£m			£m			£m
Share of profit before interest and taxation		46.2			26.2			99.2
Share of exceptional losses		(51.4	)		(13.6	)		(47.8	)
Share of interest and non-controlling interests		(40.4	)		(8.0	)		(19.4	)
Share of taxation		(6.3	)		(3.1	)		(17.3	)
		(51.9	)		1.5			14.7

Note

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.    

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Finance and investment income, finance costs and revaluation of financial instruments (Tables)

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Summary of Finance and Investment Income, Finance Costs and Revaluation of Financial Instruments

Finance and investment income includes:

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Income from equity investments		6.8		9.3		18.3
Interest income		44.4		32.5		80.7
		51.2		41.8		99.0

Finance costs include:

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Net interest expense on pension plans		1.4		1.8		3.5
Interest on other long-term employee benefits		1.4		1.8		3.9
Interest payable and similar charges		104.3		127.8		252.0
Interest expense related to lease liabilities		50.2		48.7		99.7
		157.3		180.1		359.1

Revaluation of financial instruments include:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
	£m			£m			£m
Movements in fair value of treasury instruments		(2.0	)		7.3			0.4
Premium on the early repayment of bonds		—			(32.2	)		(63.4	)
Revaluation of investments held at fair value through profit or loss		1.7			1.6			9.1
Revaluation of put options over non-controlling interests		26.0			(19.5	)		(13.5	)
Revaluation of payments due to vendors (earnout agreements)		4.3			(7.7	)		(1.0	)
		30.0			(50.5	)		(68.4	)

Note

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

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Segmental analysis (Tables)

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Contributions by Reportable Segments

Reported contributions by reportable segments were as follows: 

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Revenue
Global Integrated Agencies		4,249.2		4,873.6		10,205.2
Public Relations		446.8		471.5		956.5
Specialist Agencies		886.7		1,023.1		2,072.4
		5,582.7		6,368.2		13,234.1
Revenue less pass-through costs2
Global Integrated Agencies		3,461.5		3,858.1		8,108.1
Public Relations		426.3		442.2		898.0
Specialist Agencies		779.9		899.1		1,840.4
Headline operating profit3
Global Integrated Agencies		256.0		463.5		1,219.5
Public Relations		71.9		67.9		140.6
Specialist Agencies		54.4		85.9		200.5
		382.3		617.3		1,560.6

Notes

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13. As a result, Data Investment Management is now excluded from the segment analysis.

2  Revenue less pass-through costs is revenue less media, and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media costs. See note 4 for more details of the pass-through costs.

3 A reconciliation from operating (loss)/profit to headline operating profit is provided in note 23.

Contributions by Geographical Area

Reported contributions by geographical area were as follows:

Continuing operations	Six months ended 30 June 2020		Six months ended 30 June 20191		Year ended 31 December 2019
	£m		£m		£m
Revenue
North America2		2,177.1		2,334.3		4,854.7
United Kingdom		757.6		907.7		1,797.1
Western Continental Europe		1,092.9		1,263.6		2,628.8
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe		1,555.1		1,862.6		3,953.5
		5,582.7		6,368.2		13,234.1
Revenue less pass-through costs3
North America2		1,856.1		1,951.3		4,034.3
United Kingdom		585.6		692.6		1,390.1
Western Continental Europe		919.5		1,041.7		2,176.4
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe		1,306.5		1,513.8		3,245.7
Headline operating profit4
North America2		215.4		278.3		662.0
United Kingdom		35.4		86.7		188.5
Western Continental Europe		43.8		96.5		261.5
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe		87.7		155.8		448.6
		382.3		617.3		1,560.6

Notes

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

2  North America includes the US with revenue of £2,065.2 million (period ended 30 June 2019: £2,203.8 million; year ended 31 December 2019: £4,576.5 million), revenue less pass-through costs of £1,757.5 million (period ended 30 June 2019: £1,843.0 million; year ended 31 December 2019: £3,806.3 million) and headline operating profit of £207.1 million (period ended 30 June 2019: £262.8 million; year ended 31 December 2019: £620.6 million).

3  Revenue less pass-through costs is revenue less media and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media costs. See note 4 for more details of the pass-through costs.

4 A reconciliation from operating (loss)/profit to headline operating profit is provided in note 23.

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Taxation (Tables)

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Tax Charge

The tax charge comprises:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
	£m			£m			£m
Corporation tax
Current year		35.7			187.4			423.0
Prior years		(1.7	)		(19.7	)		(63.4	)
		34.0			167.7			359.6
Deferred tax
Current year		(6.7	)		(46.7	)		(78.3	)
Prior years		(3.3	)		(11.7	)		(6.3	)
		(10.0	)		(58.4	)		(84.6	)
Tax charge		24.0			109.3			275.0

Note

1  Figures for the period ended 30 June 2019 figures have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

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Earnings per share (Tables)

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Calculation of Basic and Diluted EPS

The calculation of basic EPS is as follows:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Earnings1 (£ million)		(2,626.5	)		269.2		627.9
Weighted average shares used in basic EPS calculation (million)		1,224.7			1,249.1		1,250.0
EPS		(214.5p	)		21.5p		50.2p

Discontinued operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Earnings1 (£ million)		(6.8	)		43.2		(3.8	)
Weighted average shares used in basic EPS calculation (million)		1,224.7			1,249.1		1,250.0
EPS		(0.5p	)		3.5p		(0.3p	)

Continued and discontinued operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Earnings1 (£ million)		(2,633.3	)		312.4		624.1
Weighted average shares used in basic EPS calculation (million)		1,224.7			1,249.1		1,250.0
EPS		(215.0p	)		25.0p		49.9p

Note

1  Earnings is equivalent to (loss)/profit for the period attributable to equity holders of the parent.

Diluted EPS

The calculation of diluted EPS is as follows:

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Diluted earnings (£ million)		(2,626.5	)		269.2		627.9
Weighted average shares used in diluted EPS calculation1 (million)		1,224.7			1,257.3		1,260.6
Diluted EPS		(214.5p	)		21.4p		49.8p

Discontinued operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Diluted earnings (£ million)		(6.8	)		43.2		(3.8	)
Weighted average shares used in diluted EPS calculation1 (million)		1,224.7			1,257.3		1,260.6
Diluted EPS		(0.5p	)		3.4p		(0.3p	)

Continuing and discontinued operations	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Diluted earnings (£ million)		(2,633.3	)		312.4		624.1
Weighted average shares used in diluted EPS calculation1 (million)		1,224.7			1,257.3		1,260.6
Diluted EPS		(215.0p	)		24.8p		49.5p

Note

1  The weighted average shares used in the basic EPS calculation has also been used for diluted EPS due to the anti-dilutive effect of the weighted average shares calculated for the diluted EPS calculation.

Reconciliation Between Shares Used in Calculating Basic and Diluted EPS

A reconciliation between the shares used in calculating basic and diluted EPS is as follows:

	Six months ended 30 June 2020		Six months ended 30 June 2019		Year ended 31 December 2019
	m		m		m
Weighted average shares used in basic EPS calculation		1,224.7		1,249.1		1,250.0
Dilutive share options outstanding		—		0.1		0.3
Other potentially issuable shares		12.3		8.1		10.3
Weighted average shares used in diluted EPS calculation		1,237.0		1,257.3		1,260.6

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Analysis of cash flows (Tables)

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Summary of Analysis of Cash Flows

The following tables analyse the items included within the main cash flow headings on page 3:

Net cash flow from operating activities:

	Six months ended 30 June 2020			Six months ended 30 June 2019			Year ended 31 December 2019
	£m			£m			£m
(Loss)/profit for the period		(2,602.3	)		349.4			717.9
Taxation		26.1			128.8			353.8
Revaluation of financial instruments		(30.0	)		57.2			77.8
Finance costs		157.6			189.2			376.4
Finance and investment income		(51.4	)		(43.6	)		(102.6	)
Share of results of associates		51.9			(8.0	)		(21.2	)
Goodwill impairment on classification as held for sale		—			—			94.5
Loss/(gain) on sale of discontinued operations		3.3			—			(73.8	)
Attributable tax expense on sale of discontinued operations		1.9			—			157.4
Non-cash share-based incentive plans (including share options)		30.6			32.5			71.4
Depreciation of property, plant and equipment		88.2			106.2			203.2
Depreciation of right-of-use assets		155.4			168.4			317.9
Goodwill impairment		2,520.8			—			47.7
Amortisation and impairment of acquired intangible assets		53.1			66.9			135.6
Amortisation of other intangible assets		9.6			18.3			29.6
Investment and other write-downs		220.6			—			7.5
Gains on disposal of investments and subsidiaries		(16.0	)		(40.6	)		(45.1	)
Gains on remeasurement of equity interests arising from a change in scope of ownership		—			(0.4	)		(0.4	)
Gain on sale of freehold property in New York		—			(7.9	)		(7.9	)
(Gains)/losses on sale of property, plant and equipment		(0.1	)		(0.6	)		3.2
Movements in trade working capital1, 2		(456.0	)		(296.7	)		563.4
Movements in other receivables, payables and provisions1		(294.7	)		(482.5	)		(213.1	)
Corporation and overseas tax paid		(201.2	)		(261.0	)		(536.0	)
Payment on early settlement of bonds		—			—			(63.4	)
Interest and similar charges paid		(77.4	)		(110.8	)		(270.6	)
Interest paid on lease liabilities		(48.6	)		(51.7	)		(105.1	)
Interest received		45.2			35.8			80.8
Investment income		6.8			9.3			18.3
Dividends received from associates		4.7			15.4			33.3
Net cash (outflow)/inflow from operating activities		(401.9	)		(126.4	)		1,850.5

Notes

1 The Group typically experiences an outflow of working capital in the first half of the financial year and an inflow in the second half. This is primarily due to the seasonal nature of working capital flows associated with its media buying activities on behalf of clients.

2  Trade working capital represents trade receivables, work in progress, accrued income, trade payables, and deferred income.

Acquisitions and disposals:

	Six months ended 30 June 2020			Six months ended 30 June 2019			Year ended 31 December 2019
	£m			£m			£m
Initial cash consideration		(5.9	)		(6.4	)		(3.9	)
Earnout payments		(88.5	)		(57.9	)		(130.2	)
Purchase of other investments (including associates)		(2.4	)		(8.6	)		(27.2	)
Acquisitions		(96.8	)		(72.9	)		(161.3	)
Proceeds on disposal of investments and subsidiaries		228.4			136.7			2,468.5
Cash and cash equivalents disposed		(24.5	)		(3.0	)		(327.5	)
Disposals of investments and subsidiaries		203.9			133.7			2,141.0
Cash consideration for non-controlling interests		(37.8	)		(9.1	)		(62.7	)
Net acquisition payments and disposal proceeds		69.3			51.7			1,917.0

Share repurchases and buybacks:

	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
	£m			£m		£m
Purchase of own shares by ESOP Trusts		(0.4	)		—		—
Shares purchased into treasury		(285.1	)		—		(43.8	)
		(285.5	)		—		(43.8	)

Net increase/(decrease) in borrowings:

	Six months ended 30 June 2020			Six months ended 30 June 2019			Year ended 31 December 2019
	£m			£m			£m
Net increase/(decrease) in drawings on bank loans		7.4			376.5			(70.6	)
Repayment of €250 million bonds		(223.1	)		—			—
Repayment of £200 million bonds		—			(199.5	)		(199.5	)
Partial repayment of $450 million bonds		—			(176.2	)		(176.2	)
Partial repayment of $272 million bonds		—			(135.4	)		(135.4	)
Repayment of €600 million bonds		—			—			(512.7	)
Repayment of $812 million bonds		—			—			(618.8	)
Proceeds from issue of €750 million bonds		665.5			—			—
Proceeds from issue of £250 million bonds		250.0			—			—
		699.8			(134.6	)		(1,713.2	)

Cash and cash equivalents:

	30 June 2020			30 June 2019			31 December 2019
	£m			£m			£m
Cash at bank and in hand		1,646.9			1,814.7			2,105.4
Short-term bank deposits		1,115.7			358.5			863.6
Overdrafts1		(226.5	)		(335.9	)		(235.7	)
		2,536.1			1,837.3			2,733.3

Note

1  Bank overdrafts are included in cash and cash equivalents because they form an integral part of the Group’s cash management.

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Debt financing (Tables)

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Analysis of Future Anticipated Cash Flows in Relation to Group's Financial Derivatives and Debt

The following table is an analysis of future anticipated cash flows in relation to the Group’s debt, on an undiscounted basis which, therefore, differs from the carrying value:

	30 June 2020			30 June 2019			31 December 2019
	£m			£m			£m
Within one year		(249.8	)		(936.6	)		(324.8	)
Between one and two years		(366.9	)		(327.7	)		(204.0	)
Between two and three years		(532.0	)		(990.0	)		(692.1	)
Between three and four years		(793.7	)		(496.1	)		(726.3	)
Between four and five years		(1,145.4	)		(1,114.7	)		(634.2	)
Over five years		(3,461.7	)		(3,500.3	)		(2,761.9	)
Debt financing (including interest) under the Revolving Credit Facility and in relation to unsecured loan notes		(6,549.5	)		(7,365.4	)		(5,343.3	)
Short-term overdrafts – within one year		(226.5	)		(335.9	)		(235.7	)
Future anticipated cash flows		(6,776.0	)		(7,701.3	)		(5,579.0	)
Effect of discounting/financing rates		1,287.9			1,257.1			1,070.4
Debt financing		(5,488.1	)		(6,444.2	)		(4,508.6	)

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Assets held for sale and discontinued operations (Tables)

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Disclosure of detailed information about amounts of discontinued operations included in profit explanatory

Results of the discontinued operations, which have been included in profit for the year, were as follows:

	Six months ended 30 June 2020			Six months ended 30 June 2019			Year ended 31 December 2019
	£m			£m			£m
Revenue		101.9			1,247.8			2,387.5
Costs of services		(87.4	)		(1,061.4	)		(1,951.5	)
Gross profit		14.5			186.4			436.0
General and administrative costs		(4.0	)		(109.7	)		(151.7	)
Operating profit		10.5			76.7			284.3
Share of results of associates		—			6.5			6.5
Profit before interest and taxation		10.5			83.2			290.8
Finance income		0.2			1.8			3.6
Finance costs		(0.3	)		(9.1	)		(17.3	)
Revaluation of financial instruments		—			(6.7	)		(9.4	)
Profit before taxation		10.4			69.2			267.7
Attributable tax expense		(2.1	)		(19.5	)		(78.8	)
Profit after taxation		8.3			49.7			188.9
Goodwill impairment on classification as held for sale1		—			—			(94.5	)
(Loss)/gain on sale of discontinued operations		(3.3	)		—			73.8
Attributable tax expense on sale of discontinued operations		(1.9	)		—			(157.4	)
Net gain attributable to discontinued operations		3.1			49.7			10.8
Attributable to:
Equity holders of the parent		(6.8	)		43.2			(3.8	)
Non-controlling interests2		9.9			6.5			14.6
		3.1			49.7			10.8

Note

1  Goodwill impairment of £94.5 million arose from the assessment of fair value less costs to sell under IFRS 5 in the year ended 31 December 2019.

2  In 2020, non-controlling interests includes £9.3 million recognised on the disposal of Kantar within WPP Scangroup, a 56.25% owned subsidiary of the Group.

Disclosure of detailed information about gain on sale of discontinued operations explanatory

The gain on sale of discontinued operations is calculated as follows:

	30 June 2020			31 December 2019
	£m			£m
Intangible assets (including goodwill)		150.9			2,410.0
Property, plant and equipment		13.7			115.7
Right-of-use assets		24.2			103.5
Interests in associates and joint ventures		2.0			92.3
Other investments		—			11.5
Deferred tax assets		5.5			44.1
Corporate income tax recoverable		15.0			49.8
Trade and other receivables		157.6			748.8
Cash and cash equivalents		19.8			324.9
Trade and other payables		(129.0	)		(839.8	)
Corporate income tax payable		(4.0	)		(48.2	)
Lease liabilities		(20.5	)		(106.3	)
Deferred tax liabilities		(1.3	)		(98.6	)
Provisions for post-employment benefits		(6.7	)		(26.7	)
Provisions for liabilities and charges		(0.6	)		(22.4	)
Net assets		226.6			2,758.6
Non-controlling interests		(5.9	)		(19.1	)
Net assets excluding non-controlling interests		220.7			2,739.5
Consideration received in cash and cash equivalents		191.3			2,352.1
Re-investment in equity stake1		—			231.7
Transaction costs		(3.8	)		(56.1	)
Deferred consideration2		14.5			1.6
Total consideration received		202.0			2,529.3
Loss on sale before exchange adjustments		(18.7	)		(210.2	)
Exchange adjustments recycled to the income statement		15.4			284.0
(Loss)/gain on sale of discontinued operations		(3.3	)		73.8

Notes

1  Re-investment in equity stake represents the value of the Group’s 40% stake in the new Kantar group as part of the disposal.

2  Deferred consideration in the year ended 31 December 2019 is made up of £79.6 million expected to be received in future periods on the satisfaction of certain conditions and the deferral of £78.0 million consideration against services the Group will supply to Kantar on favourable terms in the future.

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Goodwill and acquisitions (Tables)

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Cash-generating Units (CGUs) with Significant Goodwill

Cash-generating units (CGUs) with significant goodwill and brands with an indefinite useful life as at 30 June are:

	Goodwill				Brands with an indefinite useful life
	30 June 2020		31 December 2019		30 June 2020		31 December 2019
CGU	£m		£m		£m		£m
GroupM		3,072.2		2,936.0		—		—
Wunderman Thompson		1,167.2		2,138.9		433.3		409.7
VMLY&R		460.6		901.0		203.6		199.1
Ogilvy		828.1		762.9		218.5		211.1
Burson Cohn & Wolfe		651.3		741.4		138.0		130.2
Other		1,940.8		2,690.5		136.4		128.1
		8,120.2		10,170.7		1,129.8		1,078.2

Disclosure of Cash Generating Units With Significant ​Impairments​ of Goodwill​

The CGUs with significant impairments of goodwill as at 30 June 2020 are set out in the below table. 

	Operating Sector	Recoverable amount		Goodwill impairment charge
CGU		£m		£m
Wunderman Thompson	Global Integrated Agencies		1,932.2		1,071.4
VMLY&R	Global Integrated Agencies		918.3		472.0
Burson Cohn & Wolfe	Public Relations		859.8		129.1
Geometry Global	Specialist Agencies		205.9		232.9
Landor & FITCH	Specialist Agencies		197.5		158.3
Other	Other		1,349.3		457.1

Sensitivity of CGUs with an impairment charge

A summary of the movements in the impairment charge from a reasonably possible change in these assumptions is as follows:

	Impact of changes to assumptions in 5-year projection period				Impact of change to terminal value assumptions		Impact of change to pre-tax discount rate
CGU	Revenue less pass-through costs growth rate +/- 0.5%		Operating margin% +/- 0.5%		Long-term cash flow growth rate +/- 0.5%		+1.5%			-1.5%
	£m		£m		£m		£m			£m
Wunderman Thompson		19.2		70.8		54.6		(210.2	)		279.4
VMLY&R		8.3		37.7		22.9		(100.1	)		132.0
Burson Cohn & Wolfe		9.6		21.8		26.9		(98.7	)		129.1
Geometry Global		1.2		13.5		3.6		(22.3	)		29.7
Landor & FITCH		2.1		6.5		6.0		(23.5	)		31.3
Other		11.9		47.8		33.9		(136.4	)		164.2
		52.3		198.1		147.9		(591.2	)		765.7

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Other intangible assets (Tables)

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Disclosure Of Detailed Information About Other Intangible Assets Explanatory

The following are included in other intangibles:

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Brands with an indefinite useful life		1,129.8		1,141.2		1,078.2
Acquired intangibles		284.4		530.4		323.6
Other (including capitalised computer software)		74.7		114.6		67.0
		1,488.9		1,786.2		1,468.8

XML

Trade and other receivables (Tables)

6 Months Ended

Jun. 30, 2020

Within one year [member]

Statement [LineItems]

Summary of Trade and Other Receivables

Amounts falling due within one year:

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Trade receivables		5,175.7		7,713.8		7,007.6
Work in progress		312.4		419.5		349.5
VAT and sales taxes recoverable		272.5		270.6		212.7
Prepayments		311.6		391.0		287.1
Accrued income		2,703.2		3,731.1		3,292.7
Fair value of derivatives		0.6		10.0		1.4
Other debtors		627.3		634.2		671.3
		9,403.3		13,170.2		11,822.3

Over 1 year [member]

Statement [LineItems]

Summary of Trade and Other Receivables

Amounts falling due after more than one year:

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Prepayments		1.7		2.8		2.2
Accrued income		—		22.8		—
Fair value of derivatives		—		6.3		—
Other debtors		142.3		150.8		135.4
		144.0		182.7		137.6

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Trade and other payables: amounts falling due within one year (Tables)

6 Months Ended

Jun. 30, 2020

Within one year [member]

Statement [LineItems]

Summary of Trade and Other Payables

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Trade payables		7,279.2		9,945.7		10,112.1
Deferred income		968.7		1,377.3		1,024.6
Payments due to vendors (earnout agreements)		65.4		167.6		142.4
Liabilities in respect of put option agreements with vendors		47.0		41.4		75.4
Fair value of derivatives		2.7		4.0		1.5
Share repurchases - close period commitments1		—		—		252.3
Other creditors and accruals		2,409.3		2,829.7		2,578.5
		10,772.3		14,365.7		14,186.8

Note

1 During 2019, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 2 January 2020 and ending on 27 February 2020, in accordance with UK listing rules. The commitment resulting from this agreement constitutes a liability at 31 December 2019, which is included in Trade and other payables: amounts falling due within one year and has been recognised as a movement in equity.

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Trade and other payables: amounts falling due after more than one year (Tables)

6 Months Ended

Jun. 30, 2020

Statement [LineItems]

Summary of Deferred and Earnout Related Obligations

The following table sets out the movements of deferred and earnout related obligations during the period:

	Six months ended 30 June 2020			Six months ended 30 June 2019			Year ended 31 December 2019
	£m			£m			£m
At the beginning of the period		253.8			414.7			414.7
Earnouts paid		(88.5	)		(57.9	)		(130.0	)
New acquisitions		2.9			3.9			9.6
Revision of estimates taken to goodwill		(3.0	)		1.1			(14.3	)
Revaluation of payments due to vendors (note 6)		(4.3	)		8.4			1.1
Transfer to disposal group classified as held for sale		—			—			(11.5	)
Exchange adjustments		5.7			1.3			(15.8	)
At the end of the period		166.6			371.5			253.8

Over 1 year [member]

Statement [LineItems]

Summary of Trade and Other Payables

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Payments due to vendors (earnout agreements)		101.2		203.9		111.4
Liabilities in respect of put option agreements with vendors		120.5		223.0		151.4
Fair value of derivatives		0.6		—		21.2
Other creditors and accruals		164.0		140.8		199.3
		386.3		567.7		483.3

Trade and Other Payable [member]

Statement [LineItems]

Maturity Analysis for Non-derivative Financial Liabilities

The following table sets out payments due to vendors, comprising contingent consideration and the Directors’ best estimates of future earnout-related obligations:

	30 June 2020		30 June 2019		31 December 2019
	£m		£m		£m
Within one year		65.4		167.6		142.4
Between 1 and 2 years		26.1		90.0		36.9
Between 2 and 3 years		15.5		44.1		37.5
Between 3 and 4 years		28.1		36.9		14.8
Between 4 and 5 years		27.8		22.4		9.7
Over 5 years		3.7		10.5		12.5
		166.6		371.5		253.8

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Issued share capital (Tables)

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Disclosure Of Detailed Information About Issued Share Capital Explanatory

	Six months ended 30 June 2020			Six months ended 30 June 2019		Year ended 31 December 2019
Number of equity ordinary shares	m			m		m
At the beginning of the period		1,328.2			1,332.7		1,332.7
Share cancellations		(32.1	)		—		(4.5	)
At the end of the period		1,296.1			1,332.7		1,328.2

XML

Related party transactions (Tables)

6 Months Ended

Jun. 30, 2020

Disclosure of transactions between related parties [abstract]

Summary of related party transactions outstanding

The following amounts were outstanding at 30 June 2020:

	30 June 2020			30 June 2019			31 December 2019
	£m			£m			£m
Amounts owed by related parties
Kantar		79.2			—			87.5
Other		27.8			82.7			87.5
		107.0			82.7			175.0
Amounts owed to related parties
Kantar		(14.6	)		—			(36.5	)
Other		(61.9	)		(56.0	)		(49.6	)
		(76.5	)		(56.0	)		(86.1	)

XML

Going concern and risk management policies (Tables)

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Committed Facilities

At 30 June 2020, the Group has access to £7.4 billion of committed facilities with maturity dates spread over the years 2021 to 2046 as illustrated below:

	Maturity by year
			2021		2022		2023		2024		2025+
	£m		£m		£m		£m		£m		£m
£ bonds £400m (2.875% ’46)		400.0										400.0
US bond $220m (5.625% ’43)		177.6										177.6
US bond $93m (5.125% ’42)		75.0										75.0
£ bonds £250m (3.75% ’32)		250.0										250.0
Eurobonds €600m (1.625% ’30)		545.0										545.0
Eurobonds €750m (2.375% ’27)		681.2										681.2
Eurobonds €750m (2.25% ’26)		681.2										681.2
Eurobonds €500m (1.375% ’25)		454.1										454.1
US bond $750m (3.75% ’24)		605.9								605.9
Bank revolver ($2,500m ‘24)		2,019.5								2,019.5
Eurobonds €750m (3.0% ’23)		681.2						681.2
US bond $500m (3.625% ’22)		403.9				403.9
Eurobonds €250m (3m EURIBOR + 0.45% ’22)		227.1				227.1
Bank revolver (A$420m ‘21)		233.8		233.8
Total committed facilities available		7,435.5		233.8		631.0		681.2		2,625.4		3,264.1
Drawn down facilities at 30 June 2020		5,291.9		109.7		631.0		681.2		605.9		3,264.1
Undrawn committed credit facilities		2,143.6

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Financial instruments (Tables)

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Analysis of Financial Instruments Measured at Fair Value

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into levels 1 to 3 based on the degree to which the fair value is observable, or based on observable inputs:

Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);

Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

	Level 1		Level 2			Level 3
	£m		£m			£m
30 June 2020
Derivatives in designated hedge relationships
Derivative assets		—		—			—
Derivative liabilities		—		(0.6	)		—
Held at fair value through profit or loss
Other investments		—		—			258.7
Derivative assets		—		0.6			—
Derivative liabilities		—		(2.7	)		—
Payments due to vendors (earnout agreements) (note 18)		—		—			(166.6	)
Liabilities in respect of put options		—		—			(167.5	)
Held at fair value through other comprehensive income
Other investments		28.4		—			110.9

Reconciliation of level 3 fair value measurements:

	Liabilities in respect of put options			Other investments
	£m			£m
1 January 2020		(226.8	)		456.1
Gains recognised in the income statement		26.0			1.7
Losses recognised in other comprehensive income		—			(88.7	)
Exchange adjustments		(1.3	)		—
Additions		(1.5	)		3.0
Disposals		—			(2.5	)
Cancellations		28.9			—
Settlements		7.2			—
30 June 2020		(167.5	)		369.6

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Reconciliation of operating profit to headline operating profit (Tables)

6 Months Ended

Jun. 30, 2020

Text block [abstract]

Reconciliation of Operating (loss)/profit to Headline Operating Profit

Continuing operations	Six months ended 30 June 2020			Six months ended 30 June 20191			Year ended 31 December 2019
	£m			£m			£m
Operating (loss)/profit		(2,453.4	)		596.3			1,295.9
Amortisation and impairment of acquired intangible assets		53.1			52.8			121.5
Goodwill impairment		2,520.8			—			47.7
Gains on disposal of investments and subsidiaries		(16.0	)		(40.6	)		(40.4	)
Gains on remeasurement of equity interests arising from a change in scope of ownership		—			(0.4	)		(0.4	)
Investment and other write-downs		220.6			—			7.5
Litigation settlement		—			(16.8	)		(16.8	)
Gain on sale of freehold property in New York		—			(7.9	)		(7.9	)
Restructuring and transformation costs		17.9			33.9			153.5
Restructuring costs in relation to COVID-19		39.3			—			—
Headline operating profit		382.3			617.3			1,560.6

Note

1  Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

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Currency conversion - Additional Information (Detail)	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
US dollar to Pound sterling [member]
Disclosure Of Foreign Currency Translation [line items]
Average exchange rate	1.2604	1.2938	1.2765
Closing exchange rate	1.2379	1.2695	1.3263
Euro to Pound sterling [member]
Disclosure Of Foreign Currency Translation [line items]
Average exchange rate	1.1439	1.1453	1.1403
Closing exchange rate	1.1010	1.1175	1.1813

XML

Costs of services and general and administrative costs - Summary of Operating Costs (Detail) - GBP (£) £ in Millions	6 Months Ended				12 Months Ended
	Jun. 30, 2020		Jun. 30, 2019	[1]	Dec. 31, 2019
Analysis of income and expense [abstract]
Costs of services	£ 4,804.7		£ 5,328.8		£ 10,825.1
General and administrative costs	3,231.4		443.1		1,113.1
Costs of services and general and administrative costs	8,036.1		5,771.9		11,938.2
Costs of services and general and administrative costs include:
Staff costs	3,330.0		3,501.7		7,090.6
Establishment costs	314.4		331.7		672.9
Media pass-through costs	613.7		818.8		1,656.2
Other costs of services and general and administrative costs	3,778.0	[2]	1,119.7		2,518.5	[2]
Wages and salaries	2,417.5		2,442.5		4,946.2
Cash-based incentive plans	17.2		64.8		227.6
Share-based incentive plans	30.6		30.0		66.0
Social security costs	304.6		304.9		591.7
Pension costs	86.4		83.5		169.7
Severance	18.8		16.1		42.6
Other staff costs	454.9		559.9		1,046.8
Staff costs	3,330.0		3,501.7		7,090.6
Amortisation and impairment of acquired intangible assets	53.1		52.8		121.5
Goodwill impairment	2,520.8				47.7
Gains on disposal of investments and subsidiaries	(16.0)		(40.6)		(40.4)
Gains on remeasurement of equity interests arising from a change in scope of ownership			(0.4)		(0.4)
Investment and other write-downs	220.6				7.5
Restructuring and transformation costs	17.9		33.9		153.5
Restructuring costs in relation to COVID-19	39.3
Litigation settlement			(16.8)		(16.8)
Gain on sale of freehold property in New York			(7.9)		(7.9)
Depreciation of property, plant and equipment	88.2		88.5		185.5
Amortisation of other intangible assets	9.6		9.9		21.2
Depreciation of right-of-use assets	155.4		152.1		301.6
Short-term lease expense	19.7		49.9		83.8
Low-value lease expense	£ 1.1		£ 1.2		£ 2.9

[1] Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

[2] Other costs of services and general and administrative costs include £301.3 million (period ended 30 June 2019: £350.0 million; year ended 31 December 2019: £731.4 million) of other pass through costs.

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Costs of services and general and administrative costs - Summary of Operating Costs (Parenthetical) (Detail) - GBP (£) £ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Analysis of income and expense [abstract]
Other pass-through costs	£ 301.3	£ 350.0	£ 731.4

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Costs of services and general and administrative costs - Additional Information (Detail) - GBP (£) £ in Millions	6 Months Ended			12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019		Dec. 31, 2019
Disclosure Of Information About Operating Cost [line items]
Goodwill impairment	£ 2,520.8			£ 47.7
Gains on disposal of investments and subsidiaries	16.0	£ 40.6	[1]	40.4
Litigation settlement		16.8	[1]	£ 16.8
Lease Term				15 years
Gain on sale of freehold property in New York		7.9	[1]	£ 7.9
Proceeds from sale of freehold property				159.0
Impairment charge on intangible assets	17.1	4.7		26.5
Investment write-downs	220.6			7.5
Restructuring costs due to pandemic	39.3
Covid-19 pandemic [member]
Disclosure Of Information About Operating Cost [line items]
Proceeds from government grants	28.6
Imagina [member]
Disclosure Of Information About Operating Cost [line items]
Investment write-downs	209.8
Investor day in december two thousand and eighteen restructuring and transformation plan [member]
Disclosure Of Information About Operating Cost [line items]
Restructuring and transformation costs in relation to the continuing restructuring plan	17.9	23.6		121.1
Transformation costs		£ 10.3		32.4
Comscore Inc. [member]
Disclosure Of Information About Operating Cost [line items]
Litigation settlement				16.8
Two Circles [member]
Disclosure Of Information About Operating Cost [line items]
Gains on disposal of investments and subsidiaries	£ 14.7
Chime [Member]
Disclosure Of Information About Operating Cost [line items]
Gains on disposal of investments and subsidiaries				28.6
Other business [member]
Disclosure Of Information About Operating Cost [line items]
Goodwill impairment				£ 47.7

[1] Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

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Share of results of associates - Summary of Share of Results of Associates (Detail) - GBP (£) £ in Millions	6 Months Ended			12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	[1]	Dec. 31, 2019
Disclosure of associates [line items]
Share of profit loss of associates accounted for using equity method	£ (51.9)	£ 1.5		£ 14.7
Continuing Operation one [Member]
Disclosure of associates [line items]
Share of profit before interest and taxation	46.2	26.2		99.2
Share of exceptional losses	(51.4)	(13.6)		(47.8)
Share of interest and non-controlling interests	(40.4)	(8.0)		(19.4)
Share of taxation	(6.3)	(3.1)		(17.3)
Share of profit loss of associates accounted for using equity method	£ (51.9)	£ 1.5		£ 14.7

[1] Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

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Share of results of associates - Additional information (Detail) - GBP (£) £ in Millions	6 Months Ended			12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019		Dec. 31, 2019
Disclosure of associates [line items]
Restructuring and one off transaction costs	£ 17.9	£ 33.9		£ 153.5
Continuing Operation [member]
Disclosure of associates [line items]
Share of exceptional losses and gains	(51.4)	£ (13.6)	[1]	(47.8)
Kantar [member]
Disclosure of associates [line items]
Amortisation and impairment of acquired intangible assets other than goodwill	27.3			5.3
Restructuring and one off transaction costs	£ 23.1			£ 20.3

[1] Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

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Finance and investment income, finance costs and revaluation of financial instruments - Summary of Finance Income, Finance Costs and Revaluation of Financial Instruments (Detail) - GBP (£) £ in Millions	6 Months Ended			12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019		Dec. 31, 2019
Statement [LineItems]
Income from equity investments	£ 6.8	£ 9.3		£ 18.3
Interest expense related to lease liabilities	48.6	51.7		105.1
Continuing Operation [member]
Statement [LineItems]
Income from equity investments	6.8	9.3	[1]	18.3
Interest income	44.4	32.5	[1]	80.7
Finance income	51.2	41.8	[1]	99.0
Net interest expense on pension plans	1.4	1.8	[1]	3.5
Interest on other long-term employee benefits	1.4	1.8	[1]	3.9
Interest payable and similar charges	104.3	127.8	[1]	252.0
Interest expense related to lease liabilities	50.2	48.7	[1]	99.7
Finance costs	157.3	180.1	[1]	359.1
Movements in fair value of treasury instruments	(2.0)	7.3	[1]	0.4
Premium on the early repayment of bonds		(32.2)	[1]	(63.4)
Revaluation of investments held at fair value through profit or loss	1.7	1.6	[1]	9.1
Revaluation of put options over non-controlling interests	26.0	(19.5)	[1]	(13.5)
Revaluation of payments due to vendors (earnout agreements)	4.3	(7.7)	[1]	(1.0)
Revaluation of financial instruments	£ 30.0	£ (50.5)	[1]	£ (68.4)

[1] Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

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Segmental analysis - Contributions by Reportable Segments (Detail) - GBP (£) £ in Millions		6 Months Ended			12 Months Ended
		Jun. 30, 2020	Jun. 30, 2019	[1]	Dec. 31, 2019
Disclosure of operating segments [line items]
Revenue		£ 5,582.7	£ 6,368.2		£ 13,234.1
Headline operating profit	[2]	382.3	617.3		1,560.6
Global integrated agencies [Member]
Disclosure of operating segments [line items]
Revenue		4,249.2	4,873.6		10,205.2
Revenue less pass-through costs	[3]	3,461.5	3,858.1		8,108.1
Headline operating profit	[2]	256.0	463.5		1,219.5
Public relations [member]
Disclosure of operating segments [line items]
Revenue		446.8	471.5		956.5
Revenue less pass-through costs	[3]	426.3	442.2		898.0
Headline operating profit	[2]	71.9	67.9		140.6
Specialist agencies [Member]
Disclosure of operating segments [line items]
Revenue		886.7	1,023.1		2,072.4
Revenue less pass-through costs	[3]	779.9	899.1		1,840.4
Headline operating profit	[2]	£ 54.4	£ 85.9		£ 200.5

[1] Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

[2] A reconciliation from operating (loss)/profit to headline operating profit is provided in note 23.

[3] Revenue less pass-through costs is revenue less media and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media costs. See note 4 for more details of the pass-through costs.

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Segmental analysis - Contributions by Geographical Area (Detail) - GBP (£) £ in Millions		6 Months Ended			12 Months Ended
		Jun. 30, 2020	Jun. 30, 2019	[1]	Dec. 31, 2019
Disclosure of geographical areas [line items]
Revenue		£ 5,582.7	£ 6,368.2		£ 13,234.1
Headline operating profit	[2]	382.3	617.3		1,560.6
North America [member]
Disclosure of geographical areas [line items]
Revenue	[3]	2,177.1	2,334.3		4,854.7
Revenue less pass-through costs	[3],[4]	1,856.1	1,951.3		4,034.3
Headline operating profit	[3]	215.4	278.3		662.0
United Kingdom [member]
Disclosure of geographical areas [line items]
Revenue		757.6	907.7		1,797.1
Revenue less pass-through costs	[4]	585.6	692.6		1,390.1
Headline operating profit		35.4	86.7		188.5
Western Continental Europe [member]
Disclosure of geographical areas [line items]
Revenue		1,092.9	1,263.6		2,628.8
Revenue less pass-through costs	[4]	919.5	1,041.7		2,176.4
Headline operating profit		43.8	96.5		261.5
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe [member]
Disclosure of geographical areas [line items]
Revenue		1,555.1	1,862.6		3,953.5
Revenue less pass-through costs	[4]	1,306.5	1,513.8		3,245.7
Headline operating profit		£ 87.7	£ 155.8		£ 448.6

[1] Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

[2] A reconciliation from operating (loss)/profit to headline operating profit is provided in note 23.

[3] North America includes the US with revenue of £2,065.2 million (period ended 30 June 2019: £2,203.8 million; year ended 31 December 2019: £4,576.5 million), revenue less pass-through costs of £1,757.5 million (period ended 30 June 2019: £1,843.0 million; year ended 31 December 2019: £3,806.3 million) and headline operating profit of £207.1 million (period ended 30 June 2019: £262.8 million; year ended 31 December 2019: £620.6 million).

[4] Revenue less pass-through costs is revenue less media and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media costs. See note 4 for more details of the pass-through costs.

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Segmental analysis - Contributions by Geographical Area (Parenthetical) (Detail) - GBP (£) £ in Millions		6 Months Ended			12 Months Ended
		Jun. 30, 2020	Jun. 30, 2019		Dec. 31, 2019
Disclosure of geographical areas [line items]
Revenue		£ 5,582.7	£ 6,368.2	[1]	£ 13,234.1
Headline operating profit	[2]	382.3	617.3	[1]	1,560.6
United States [member]
Disclosure of geographical areas [line items]
Revenue		2,065.2	2,203.8		4,576.5
Revenue less pass-through costs		1,757.5	1,843.0		3,806.3
Headline operating profit		£ 207.1	£ 262.8		£ 620.6

[1] Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

[2] A reconciliation from operating (loss)/profit to headline operating profit is provided in note 23.

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Taxation - Additional Information (Detail)	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Disclosure Of Income Taxes [line items]
Effective tax rate on reported (loss)/profit before taxation	(0.90%)	26.70%	28.00%

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Taxation - Tax Charge (Detail) - GBP (£) £ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Corporation tax
Current year	£ 35.7	£ 187.4	£ 423.0
Prior years	(1.7)	(19.7)	(63.4)
Corporation tax	34.0	167.7	359.6
Deferred tax
Current year	(6.7)	(46.7)	(78.3)
Prior years	(3.3)	(11.7)	(6.3)
Deferred tax	(10.0)	(58.4)	(84.6)
Tax charge	£ 24.0	£ 109.3	£ 275.0

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Ordinary dividends - Additional Information (Detail) - £ / shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Interim period amount [member]
Disclosure of Dividends [line items]
Amounts recognised as distributions to equity holders, per share	£ 10.0	£ 22.7
Dividend payable date	Nov. 06, 2020
Previous period final amount [member]
Disclosure of Dividends [line items]
Proposed final dividend, per share	£ 37.3

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Earnings per share - Calculation of Basic and Diluted EPS (Detail) - GBP (£) £ / shares in Units, £ in Millions, shares in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Earnings per share [abstract]
Weighted average shares used in basic EPS calculation	1,224.7	1,249.1	1,250.0
EPS	£ (2.150)	£ 0.250	£ 0.499
Weighted average shares used in diluted EPS calculation	1,237.0	1,257.3	1,260.6
Diluted EPS	£ (2.150)	£ 0.248	£ 0.495
Continuing Operation [member]
Earnings per share [abstract]
Earnings	£ (2,626.5)	£ 269.2	£ 627.9
Weighted average shares used in basic EPS calculation	1,224.7	1,249.1	1,250.0
EPS	£ (2.145)	£ 0.215	£ 0.502
Diluted earnings	£ (2,626.5)	£ 269.2	£ 627.9
Weighted average shares used in diluted EPS calculation	1,224.7	1,257.3	1,260.6
Diluted EPS	£ (2.145)	£ 0.214	£ 0.498
Discontinued operations [member]
Earnings per share [abstract]
Earnings	£ (6.8)	£ 43.2	£ (3.8)
Weighted average shares used in basic EPS calculation	1,224.7	1,249.1	1,250.0
EPS	£ (0.005)	£ 0.035	£ (0.003)
Diluted earnings	£ (6.8)	£ 43.2	£ (3.8)
Weighted average shares used in diluted EPS calculation	1,224.7	1,257.3	1,260.6
Diluted EPS	£ (0.005)	£ 0.034	£ (0.003)
Continued and discontinued operations [member]
Earnings per share [abstract]
Earnings	£ (2,633.3)	£ 312.4	£ 624.1
Weighted average shares used in basic EPS calculation	1,224.7	1,249.1	1,250.0
EPS	£ (2.150)	£ 0.250	£ 0.499
Diluted earnings	£ (2,633.3)	£ 312.4	£ 624.1
Weighted average shares used in diluted EPS calculation	1,224.7	1,257.3	1,260.6
Diluted EPS	£ (2.150)	£ 0.248	£ 0.495

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Earnings per share - Additional Information (Detail) - shares	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Treasury shares [member]
Earnings per share [line items]
Ordinary shares in issue	70,750,170	70,787,730	70,799,200
Ordinary shares [member]
Earnings per share [line items]
Ordinary shares in issue	1,296,079,242	1,328,167,813	1,332,703,852

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Earnings per share - Reconciliation Between Shares Used in Calculating Basic and Diluted EPS (Detail) - shares shares in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Earnings per share [abstract]
Weighted average shares used in basic EPS calculation	1,224.7	1,249.1	1,250.0
Dilutive share options outstanding		0.1	0.3
Other potentially issuable shares	12.3	8.1	10.3
Weighted average shares used in diluted EPS calculation	1,237.0	1,257.3	1,260.6

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Analysis of cash flows - Summary of Analysis of Cash Flows (Detail) - GBP (£) £ in Millions		6 Months Ended				12 Months Ended
		Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019		Dec. 31, 2019
Disclosure Of Cash Flow Statement [line items]
(Loss)/profit for the period		£ (2,602.3)	£ 368.5	£ 349.4		£ 717.9
Taxation		26.1		128.8		353.8
Revaluation of financial instruments		(30.0)		57.2		77.8
Finance costs		157.6		189.2		376.4
Finance and investment income		(51.4)		(43.6)		(102.6)
Share of results of associates		51.9		(8.0)		(21.2)
Goodwill impairment on classification as held for sale						94.5
Loss/(gain) on sale of discontinued operations		3.3				(73.8)
Attributable tax expense on sale of discontinued operations		1.9				157.4
Non-cash share-based incentive plans (including share options)		30.6		32.5		71.4
Depreciation of property, plant and equipment		88.2		106.2		203.2
Depreciation of right-of-use assets		155.4		168.4		317.9
Goodwill impairment		2,520.8				47.7
Amortisation and impairment of acquired intangible assets		53.1		66.9		135.6
Amortisation of other intangible assets		9.6		18.3		29.6
Investment and other write-downs		220.6				7.5
Gains on disposal of investments and subsidiaries		(16.0)		(40.6)		(45.1)
Gains on remeasurement of equity interests arising from a change in scope of ownership				(0.4)		(0.4)
Gain on sale of freehold property in New York				(7.9)	[1]	(7.9)
(Gains)/losses on sale of property, plant and equipment		(0.1)		(0.6)		3.2
Movements in trade working capital	[2],[3]	(456.0)		(296.7)		563.4
Movements in other receivables, payables and provisions	[2]	(294.7)		(482.5)		(213.1)
Corporation and overseas tax paid		(201.2)		(261.0)		(536.0)
Payment on early settlement of bonds						(63.4)
Interest and similar charges paid		(77.4)		(110.8)		(270.6)
Interest paid on lease liabilities		(48.6)		(51.7)		(105.1)
Interest received		45.2		35.8		80.8
Investment income		6.8		9.3		18.3
Dividends received from associates		4.7		15.4		33.3
Net cash (outflow)/inflow from operating activities		(401.9)		(126.4)		1,850.5
Acquisitions and disposals:
Initial cash consideration		(5.9)		(6.4)		(3.9)
Earnout payments		(88.5)		(57.9)		(130.2)
Purchase of other investments (including associates)		(2.4)		(8.6)		(27.2)
Acquisitions		(96.8)		(72.9)		(161.3)
Proceeds on disposal of investments and subsidiaries		228.4		136.7		2,468.5
Cash and cash equivalents disposed		(24.5)		(3.0)		(327.5)
Disposals of investments and subsidiaries		203.9		133.7		2,141.0
Cash consideration for non-controlling interests		(37.8)		(9.1)		(62.7)
Net acquisition payments and disposal proceeds		69.3		51.7		1,917.0
Share repurchases and buybacks:
Purchase of own shares by ESOP Trusts		(0.4)
Shares purchased into treasury		(285.1)				(43.8)
Net cash outflow		(285.5)				(43.8)
Net increase/(decrease) in borrowings:
Net increase/(decrease) in drawings on bank loans		7.4		376.5		(70.6)
Net cash (outflow)/inflow		699.8		(134.6)		(1,713.2)
Cash and cash equivalents:
Cash at bank and in hand		1,646.9	2,105.4	1,814.7		2,105.4
Short-term bank deposits		1,115.7	863.6	358.5		863.6
Overdrafts	[4]	(226.5)	(235.7)	(335.9)		(235.7)
Cash and cash equivalents at end of period		2,536.1	£ 2,733.3	1,837.3		2,733.3
Repayment of EURO 250 million bonds [member]
Net increase/(decrease) in borrowings:
Repayment of bonds		(223.1)
Repayment of GBP 200 million bonds [member]
Net increase/(decrease) in borrowings:
Repayment of bonds				(199.5)		(199.5)
Partial repayment of USD 450 million bonds [member]
Net increase/(decrease) in borrowings:
Repayment of bonds				(176.2)		(176.2)
Partial repayment of USD 272 million bonds [member]
Net increase/(decrease) in borrowings:
Repayment of bonds				£ (135.4)		(135.4)
Repayment of EURO 600 million bonds [member]
Net increase/(decrease) in borrowings:
Repayment of bonds						(512.7)
Repayment of USD 812 million bonds [member]
Net increase/(decrease) in borrowings:
Repayment of bonds						£ (618.8)
Proceeds from issue of EURO 750 million bonds [member]
Net increase/(decrease) in borrowings:
Proceeds from issues of bonds		665.5
Proceeds from issue of GBP 250 million bonds [Member]
Net increase/(decrease) in borrowings:
Proceeds from issues of bonds		£ 250.0

[1] Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

[2] The Group typically experiences an outflow of working capital in the first half of the financial year and an inflow in the second half. This is primarily due to the seasonal nature of working capital flows associated with its media buying activities on behalf of clients.

[3] Trade working capital represents trade receivables, work in progress, accrued income, trade payables, and deferred income.

[4] Bank overdrafts are included in cash and cash equivalents because they form an integral part of the Group’s cash management.

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Analysis of cash flows - Summary of Analysis of Cash Flows (Parenthetical) (Detail) - Jun. 30, 2020	GBP (£)	USD ($)	EUR (€)
Disclosure Of Cash Flow Statement [line items]
Bond amount | £	£ 7,435,500,000
Repayment of EURO 250 million bonds [member]
Disclosure Of Cash Flow Statement [line items]
Bond amount | €			€ 250,000,000
Repayment of GBP 200 million bonds [member]
Disclosure Of Cash Flow Statement [line items]
Bond amount | £	200,000,000
Partial repayment of USD 450 million bonds [member]
Disclosure Of Cash Flow Statement [line items]
Bond amount | $		$ 450,000,000
Partial repayment of USD 272 million bonds [member]
Disclosure Of Cash Flow Statement [line items]
Bond amount | $		272,000,000
Repayment of EURO 600 million bonds [member]
Disclosure Of Cash Flow Statement [line items]
Bond amount | €			600,000,000
Repayment of USD 812 million bonds [member]
Disclosure Of Cash Flow Statement [line items]
Bond amount | $		$ 812,000,000
Proceeds from issue of EURO 750 million bonds [member]
Disclosure Of Cash Flow Statement [line items]
Bond amount | €			€ 750,000,000
Proceeds from issue of GBP 250 million bonds [Member]
Disclosure Of Cash Flow Statement [line items]
Bond amount | £	£ 250,000,000

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Debt financing - Additional Information (Detail) - GBP (£) £ in Millions	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Disclosure of bank overdraft bonds and bank loans [line items]
Carrying amount of corporate bonds	£ 5,136.4	£ 4,162.9	£ 5,535.2
Carrying amount of bank loans	125.8	110.4	580.1
Corporate bond [member]
Disclosure of bank overdraft bonds and bank loans [line items]
Fair value of corporate bonds	£ 5,348.5	£ 4,439.8	£ 5,783.4

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Debt financing - Analysis of Future Anticipated Cash Flows Related to Debt (Detail) - GBP (£) £ in Millions	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Disclosure of maturity analysis for non-derivative financial liabilities [Line items]
Future anticipated cash flows	£ (6,776.0)	£ (5,579.0)	£ (7,701.3)
Effect of discounting/financing rates	1,287.9	1,070.4	1,257.1
Debt financing	(5,488.1)	(4,508.6)	(6,444.2)
Borrowings [member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line items]
Future anticipated cash flows	(6,549.5)	(5,343.3)	(7,365.4)
Borrowings [member] | Within one year [member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line items]
Corporate bonds, bank loans and overdrafts	(249.8)	(324.8)	(936.6)
Borrowings [member] | Between one and two years [member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line items]
Corporate bonds, bank loans and overdrafts	(366.9)	(204.0)	(327.7)
Borrowings [member] | Between two and three years [member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line items]
Corporate bonds, bank loans and overdrafts	(532.0)	(692.1)	(990.0)
Borrowings [member] | Between three and four years [member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line items]
Corporate bonds, bank loans and overdrafts	(793.7)	(726.3)	(496.1)
Borrowings [member] | Between four and five years [member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line items]
Corporate bonds, bank loans and overdrafts	(1,145.4)	(634.2)	(1,114.7)
Borrowings [member] | Over five years [member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line items]
Corporate bonds, bank loans and overdrafts	(3,461.7)	(2,761.9)	(3,500.3)
Bank overdrafts [member] | Within one year [member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line items]
Future anticipated cash flows	£ (226.5)	£ (235.7)	£ (335.9)

XML

Assets held for sale and discontinued operations - Additional information (Detail) - GBP (£) £ in Millions		6 Months Ended		12 Months Ended
	Dec. 05, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Sep. 30, 2020
Disclosure of associates [line items]
Goodwill impairment on classification as held for sale				£ (94.5)
Net cash inflow from operating activities		£ (401.9)	£ (126.4)	1,850.5
Net cash inflow/(outflow) from investing activities		(30.3)	61.0	1,759.6
Net cash (outflow)/inflow from financing activities		175.1	(310.2)	(2,922.0)
Kantar [member]
Disclosure of associates [line items]
Net cash inflow from operating activities		26.8	135.2	322.9
Net cash inflow/(outflow) from investing activities		1.1	26.5	53.2
Net cash (outflow)/inflow from financing activities		0.9	£ 18.8	27.2
Kantar Business [Member]
Disclosure of associates [line items]
Percentage of interest in associates	40.00%
Disposal of discontinued operations consideration	£ 2,140.2	200.1
Gain (loss) on disposal of discontinued operations Before Tax		(3.3)		73.8
Attributable tax expense		£ 1.9		157.4
Goodwill impairment on classification as held for sale				£ (94.5)
Kantar Business [Member] | Scenario forecast one [member] | Final stages [member]
Disclosure of associates [line items]
Disposal of discontinued operations consideration expected to be received for Final stages					£ 50.0

XML

Assets held for sale and discontinued operations - Detailed Information About Amounts Of Discontinued Operations Included In Profit (Detail) - GBP (£) £ in Millions		6 Months Ended				12 Months Ended
		Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019		Dec. 31, 2019
Statement [Line Items]
Revenue		£ 5,582.7		£ 6,368.2	[1]	£ 13,234.1
Costs of services		(4,804.7)		(5,328.8)	[1]	(10,825.1)
Gross profit		778.0		1,039.4		2,409.0
General and administrative costs		(3,231.4)		(443.1)	[1]	(1,113.1)
Operating profit		(2,453.4)		596.3		1,295.9
Share of results of associates		(51.9)		1.5	[1]	14.7
Profit before interest and taxation		(2,505.3)		597.8		1,310.6
Finance income		51.2		41.8		99.0
Revaluation Of Financial Instruments		30.0		(50.5)		(68.4)
Profit before taxation		(2,581.4)		409.0		982.1
Attributable tax expense		(24.0)		(109.3)		(275.0)
Profit after taxation		(2,602.3)	£ 368.5	349.4		717.9
Goodwill impairment on classification as held for sale						(94.5)
Attributable to:
Equity holders of the parent		(2,633.3)		312.4		624.1
Non-controlling interests		31.0		37.0		93.8
Profit for the year from discontinued operations		3.1		49.7		10.8
Discontinued operations [member]
Statement [Line Items]
Revenue		101.9		1,247.8		2,387.5
Costs of services		(87.4)		(1,061.4)		(1,951.5)
Gross profit		14.5		186.4		436.0
General and administrative costs		(4.0)		(109.7)		(151.7)
Operating profit		10.5		76.7		284.3
Share of results of associates				6.5		6.5
Profit before interest and taxation		10.5		83.2		290.8
Finance income		0.2		1.8		3.6
Finance costs		(0.3)		(9.1)		(17.3)
Revaluation Of Financial Instruments				(6.7)		(9.4)
Profit before taxation		10.4		69.2		267.7
Attributable tax expense		(2.1)		(19.5)		(78.8)
Profit after taxation		8.3		49.7		188.9
Goodwill impairment on classification as held for sale	[2]					(94.5)
(Loss)/gain on sale of discontinued operations		(3.3)				73.8
Attributable tax expense on sale of discontinued operations		(1.9)				(157.4)
Net gain attributable to discounted operations		3.1		49.7		10.8
Attributable to:
Equity holders of the parent		(6.8)		43.2		(3.8)
Non-controlling interests	[3]	9.9		6.5		14.6
Profit for the year from discontinued operations		£ 3.1		£ 49.7		£ 10.8

[1] Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

[2] Goodwill impairment of £94.5 million arose from the assessment of fair value less costs to sell under IFRS 5 in the year ended 31 December 2019.

[3] In 2020, non-controlling interests includes £9.3 million recognised on the disposal of Kantar within WPP Scangroup, a 56.25% owned subsidiary of the Group.

XML

Assets held for sale and discontinued operations - Detailed Information About Amounts Of Discontinued Operations Included In Profit (Parenthetical) (Detail) - GBP (£) £ in Millions		6 Months Ended		12 Months Ended
		Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Statement [LineItems]
Impairment on Classification As Held for Sale for Kantar Group				£ (94.5)
Gain (loss) on disposal of business		£ 31.0	£ 37.0	93.8
Discontinued operations [member]
Statement [LineItems]
Impairment on Classification As Held for Sale for Kantar Group	[1]			(94.5)
Gain (loss) on disposal of business	[2]	9.9	£ 6.5	£ 14.6
Discontinued operations [member] | Kantar [member] | WPP Scan Group [member]
Statement [LineItems]
Gain (loss) on disposal of business		£ 9.3
Percentage of ownership interest in subsidiaries		56.25%

[1] Goodwill impairment of £94.5 million arose from the assessment of fair value less costs to sell under IFRS 5 in the year ended 31 December 2019.

[2] In 2020, non-controlling interests includes £9.3 million recognised on the disposal of Kantar within WPP Scangroup, a 56.25% owned subsidiary of the Group.

XML

Assets held for sale and discontinued operations - Detailed Information About Gain On Sale Of Discontinued Operations (Detail) - GBP (£) £ in Millions		6 Months Ended		12 Months Ended
		Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Statement [LineItems]
Property, plant and equipment		£ 914.0	£ 876.0	£ 876.0	£ 984.4
Right-of-use assets		1,773.9	1,734.5	1,734.5	1,825.2
Interests in associates and joint ventures		515.7	813.0	813.0	739.6
Other investments		398.0	498.3	498.3	574.7
Deferred tax assets		205.2	187.9	187.9	155.4
Corporate income tax recoverable		180.8	165.4	165.4	248.1
Cash and cash equivalents			2,799.6	2,799.6		£ 2,201.2
Corporate income tax payable		(371.3)	(499.9)	(499.9)	(493.9)
Deferred tax liabilities		(398.9)	(379.8)	(379.8)	(397.7)
Provisions for post-employment benefits		(169.5)	(159.0)	(159.0)	(184.9)
Provisions for liabilities and charges		(235.1)	(247.8)	(247.8)	(255.8)
Net assets		5,768.2	8,443.5	8,443.5	10,036.2
Non-controlling interests		(368.4)	(371.4)	(371.4)	£ (404.5)
Exchange adjustments recycled to the income statement		15.4	284.0	284.0
Discontinued operations [member]
Statement [LineItems]
Intangible assets (including goodwill)		150.9	2,410.0	2,410.0
Property, plant and equipment		13.7	115.7	115.7
Right-of-use assets		24.2	103.5	103.5
Interests in associates and joint ventures		2.0	92.3	92.3
Other investments			11.5	11.5
Deferred tax assets		5.5	44.1	44.1
Corporate income tax recoverable		15.0	49.8	49.8
Trade and other receivables		157.6	748.8	748.8
Cash and cash equivalents		19.8	324.9	324.9
Trade and other payables		(129.0)	(839.8)	(839.8)
Corporate income tax payable		(4.0)	(48.2)	(48.2)
Lease liabilities		(20.5)	(106.3)	(106.3)
Deferred tax liabilities		(1.3)	(98.6)	(98.6)
Provisions for post-employment benefits		(6.7)	(26.7)	(26.7)
Provisions for liabilities and charges		(0.6)	(22.4)	(22.4)
Net assets		226.6	2,758.6	2,758.6
Non-controlling interests		(5.9)	(19.1)	(19.1)
Net assets excluding non-controlling interests		220.7	£ 2,739.5	2,739.5
Consideration received in cash and cash equivalents		191.3		2,352.1
Re-investment in equity stake	[1]			231.7
Transaction costs		(3.8)		(56.1)
Deferred consideration	[2]	14.5		1.6
Total consideration received		202.0		2,529.3
Loss on sale before exchange adjustments		(18.7)		(210.2)
Exchange adjustments recycled to the income statement		15.4		284.0
(Loss)/gain on sale of discontinued operations		£ (3.3)		£ 73.8

[1] Re-investment in equity stake represents the value of the Group’s 40% stake in the new Kantar group as part of the disposal.

[2] Deferred consideration in the year ended 31 December 2019 is made up of £79.6 million expected to be received in future periods on the satisfaction of certain conditions and the deferral of £78.0 million consideration against services the Group will supply to Kantar on favourable terms in the future.

XML

Assets held for sale and discontinued operations - Detailed Information About Gain On Sale Of Discontinued Operations (Parenthetical) (Detail) - Discontinued operations [member] - GBP (£) £ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Statement [LineItems]
Percentage of interest in associates	40.00%
Deferred consideration upon satisfaction of certain conditions		£ 79.6
Deferred consideration upon satisfaction of certain conditions		£ 78.0

XML

Goodwill and acquisitions - Cash-generating Units (CGUs) with Significant Goodwill (Detail) - GBP (£) £ in Millions	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Disclosure of information for cash-generating units [line items]
Goodwill	£ 8,120.2	£ 10,170.7	£ 13,252.1
Brands with an indefinite useful life	1,129.8	1,078.2
GroupM [member]
Disclosure of information for cash-generating units [line items]
Goodwill	3,072.2	2,936.0
Wunderman Thompson [member]
Disclosure of information for cash-generating units [line items]
Goodwill	1,167.2	2,138.9
Brands with an indefinite useful life	433.3	409.7
VMLY&R [member]
Disclosure of information for cash-generating units [line items]
Goodwill	460.6	901.0
Brands with an indefinite useful life	203.6	199.1
Ogilvy [Member]
Disclosure of information for cash-generating units [line items]
Goodwill	828.1	762.9
Brands with an indefinite useful life	218.5	211.1
Burson Cohn Wolfe [member]
Disclosure of information for cash-generating units [line items]
Goodwill	651.3	741.4
Brands with an indefinite useful life	138.0	130.2
Other [member]
Disclosure of information for cash-generating units [line items]
Goodwill	1,940.8	2,690.5
Brands with an indefinite useful life	£ 136.4	£ 128.1

XML

Goodwill and acquisitions - Disclosure of Cash Generating Units with significant impairments of goodwill (Detail) - GBP (£) £ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Disclosure of Cash generating units with significant impairments of goodwill [Line Items]
Goodwill impairment	£ 2,520.8	£ 47.7
Wunderman Thompson [member]
Disclosure of Cash generating units with significant impairments of goodwill [Line Items]
Recoverable amount	1,932.2
Goodwill impairment	1,071.4
VMLY&R [Member]
Disclosure of Cash generating units with significant impairments of goodwill [Line Items]
Recoverable amount	918.3
Goodwill impairment	472.0
Burson Cohn & Wolfe [member]
Disclosure of Cash generating units with significant impairments of goodwill [Line Items]
Recoverable amount	859.8
Goodwill impairment	129.1
Geometry Global [member]
Disclosure of Cash generating units with significant impairments of goodwill [Line Items]
Recoverable amount	205.9
Goodwill impairment	232.9
Landor And Fitch [member]
Disclosure of Cash generating units with significant impairments of goodwill [Line Items]
Recoverable amount	197.5
Goodwill impairment	158.3
Other [member]
Disclosure of Cash generating units with significant impairments of goodwill [Line Items]
Recoverable amount	1,349.3
Goodwill impairment	£ 457.1

XML

Goodwill and acquisitions - Summary of Movements in the Impairment Charge from a Reasonably Possible Change in Assumptions (Detail) £ in Millions	6 Months Ended
	Jun. 30, 2020 GBP (£)
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact ​of change ​in revenue less pass-through costs growth rate ​on impairment ​charges	£ 52.3
Impact ​of change ​in operating ​margin ​percentage ​on impairment ​charges	198.1
Impact of change in long-term cash flow growth rate on impairment charges	147.9
Increase [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact of change to pre-tax discount rate on impairment charges	(591.2)
Decrease [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact of change to pre-tax discount rate on impairment charges	765.7
Wunderman Thompson [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact ​of change ​in revenue less pass-through costs growth rate ​on impairment ​charges	19.2
Impact ​of change ​in operating ​margin ​percentage ​on impairment ​charges	70.8
Impact of change in long-term cash flow growth rate on impairment charges	54.6
Wunderman Thompson [member] | Increase [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact of change to pre-tax discount rate on impairment charges	(210.2)
Wunderman Thompson [member] | Decrease [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact of change to pre-tax discount rate on impairment charges	279.4
VMLY&R [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact ​of change ​in revenue less pass-through costs growth rate ​on impairment ​charges	8.3
Impact ​of change ​in operating ​margin ​percentage ​on impairment ​charges	37.7
Impact of change in long-term cash flow growth rate on impairment charges	22.9
VMLY&R [member] | Increase [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact of change to pre-tax discount rate on impairment charges	(100.1)
VMLY&R [member] | Decrease [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact of change to pre-tax discount rate on impairment charges	132.0
Burson Cohn & Wolfe [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact ​of change ​in revenue less pass-through costs growth rate ​on impairment ​charges	9.6
Impact ​of change ​in operating ​margin ​percentage ​on impairment ​charges	21.8
Impact of change in long-term cash flow growth rate on impairment charges	26.9
Burson Cohn & Wolfe [member] | Increase [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact of change to pre-tax discount rate on impairment charges	(98.7)
Burson Cohn & Wolfe [member] | Decrease [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact of change to pre-tax discount rate on impairment charges	129.1
Geometry Global [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact ​of change ​in revenue less pass-through costs growth rate ​on impairment ​charges	1.2
Impact ​of change ​in operating ​margin ​percentage ​on impairment ​charges	13.5
Impact of change in long-term cash flow growth rate on impairment charges	3.6
Geometry Global [member] | Increase [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact of change to pre-tax discount rate on impairment charges	(22.3)
Geometry Global [member] | Decrease [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact of change to pre-tax discount rate on impairment charges	29.7
Landor And Fitch [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact ​of change ​in revenue less pass-through costs growth rate ​on impairment ​charges	2.1
Impact ​of change ​in operating ​margin ​percentage ​on impairment ​charges	6.5
Impact of change in long-term cash flow growth rate on impairment charges	6.0
Landor And Fitch [member] | Increase [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact of change to pre-tax discount rate on impairment charges	(23.5)
Landor And Fitch [member] | Decrease [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact of change to pre-tax discount rate on impairment charges	31.3
Other [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact ​of change ​in revenue less pass-through costs growth rate ​on impairment ​charges	11.9
Impact ​of change ​in operating ​margin ​percentage ​on impairment ​charges	47.8
Impact of change in long-term cash flow growth rate on impairment charges	33.9
Other [member] | Increase [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact of change to pre-tax discount rate on impairment charges	(136.4)
Other [member] | Decrease [member]
Summary of Movements in the Impairment Charge from A Reasonably Possible Change In These Assumptions [Line Items]
Impact of change to pre-tax discount rate on impairment charges	£ 164.2

XML

Goodwill and acquisitions - Summary of Movements in the Impairment Charge from a Reasonably Possible Change in Assumptions (Parenthetical) (Detail)	6 Months Ended
	Jun. 30, 2020
Disclosure Of Reasonably Possible Change in Assumptions Used in the Impairment Review [Abstract]
Reasonably possible increase in projected growth rate of revenue less pass-through costs	0.50%
Reasonably possible decrease in projected growth rate of revenue less pass-through costs	0.50%
Reasonably possible percentage increase in projected operating margin	0.50%
Reasonably possible percentage decrease in projected operating margin	0.50%
Reasonably possible percentage increase in projected long term cash flow growth rate	0.50%
Reasonably possible percentage decrease in projected long term cash flow growth rate	0.50%
Reasonably possible percentage increase in pre-tax discount rate	1.50%
Reasonably possible percentage decrease in pre-tax discount rate	1.50%

XML

Goodwill, acquisitions and disposals - Additional Information (Detail) - GBP (£) £ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Disclosure of Goodwill acquisitions and disposals [Line Items]
(Decrease) increase in Goodwill by subsidiary undertaking	£ (2,050.5)	£ 49.3
Goodwill impairment	2,520.8		£ 47.7
Goodwill foreign currency translation difference	£ 473.3
Projection period for determining impairment of goodwill	5 years
Global Integrated Agencies Segment [member]
Disclosure of Goodwill acquisitions and disposals [Line Items]
Goodwill impairment	£ 1,630.9
Public Relation Agencies Segment [member]
Disclosure of Goodwill acquisitions and disposals [Line Items]
Goodwill impairment	144.8
Specialist Agencies Segment [member]
Disclosure of Goodwill acquisitions and disposals [Line Items]
Goodwill impairment	£ 745.1
Bottom of range [member]
Disclosure of Goodwill acquisitions and disposals [Line Items]
Revenue less pass through costs compound annual growth rate	2.50%
Average operating margins	6.60%
Top of range [member]
Disclosure of Goodwill acquisitions and disposals [Line Items]
Revenue less pass through costs compound annual growth rate	5.00%
Average operating margins	19.00%
First Step [member]
Disclosure of Goodwill acquisitions and disposals [Line Items]
Pre-tax discount rate	13.50%		8.50%
Pre-tax discount rate	For smaller CGUs that operate primarily in a particular region subject to higher risk, the higher of 13.5% or 100 basis points above the regional discount rate was used in the first step.
Assumed annual long-term growth rate	0.00%		3.00%
First Step [member] | Global Networks [member]
Disclosure of Goodwill acquisitions and disposals [Line Items]
Pre-tax discount rate	13.50%
Second Step [member]
Disclosure of Goodwill acquisitions and disposals [Line Items]
Assumed annual long-term growth rate	2.00%		3.00%
Management forecasts for a projection period	five-years
Pre-tax discount rate for global CGUs [member]
Disclosure of Goodwill acquisitions and disposals [Line Items]
Pre-tax discount rate	12.50%
Bottom of range of Pre-tax discount rates for Global CGUs [member].
Disclosure of Goodwill acquisitions and disposals [Line Items]
Pre-tax discount rate			6.30%
Top of range of Pre-tax discount rates for Global CGUs [member]
Disclosure of Goodwill acquisitions and disposals [Line Items]
Pre-tax discount rate			7.40%
Range Of Pretax Discount Rates For Regional Specific Cash Generating Units [member] | Bottom of range [member]
Disclosure of Goodwill acquisitions and disposals [Line Items]
Pre-tax discount rate	10.80%		4.10%
Range Of Pretax Discount Rates For Regional Specific Cash Generating Units [member] | Top of range [member]
Disclosure of Goodwill acquisitions and disposals [Line Items]
Pre-tax discount rate	19.30%		13.60%

XML

Other intangible assets - Disclosure of other intangilble asset (Detail) - GBP (£) £ in Millions	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Disclosure of detailed information about intangible assets [line items]
Other Intangible Assets	£ 1,488.9	£ 1,468.8	£ 1,786.2
Brands with an indefinite useful life [member]
Disclosure of detailed information about intangible assets [line items]
Other Intangible Assets	1,129.8	1,078.2	1,141.2
Acquired intangibles [member]
Disclosure of detailed information about intangible assets [line items]
Other Intangible Assets	284.4	323.6	530.4
Other [member]
Disclosure of detailed information about intangible assets [line items]
Other Intangible Assets	£ 74.7	£ 67.0	£ 114.6

XML

Trade and other receivables - Summary of Trade and Other Receivables, Amounts Falling Due Within One Year (Detail) - GBP (£) £ in Millions	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Trade and other current receivables [abstract]
Trade receivables	£ 5,175.7	£ 7,007.6	£ 7,713.8
Work in progress	312.4	349.5	419.5
VAT and sales taxes recoverable	272.5	212.7	270.6
Prepayments	311.6	287.1	391.0
Accrued income	2,703.2	3,292.7	3,731.1
Fair value of derivatives	0.6	1.4	10.0
Other debtors	627.3	671.3	634.2
Trade and other receivables	£ 9,403.3	£ 11,822.3	£ 13,170.2

XML

Trade and other receivables - Summary of Trade and Other Receivables, Amounts Falling Due After More Than One Year (Detail) - GBP (£) £ in Millions	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Trade and other non-current receivables [abstract]
Prepayments	£ 1.7	£ 2.2	£ 2.8
Accrued income			22.8
Fair value of derivatives			6.3
Other debtors	142.3	135.4	150.8
Trade and other receivables	£ 144.0	£ 137.6	£ 182.7

XML

Trade and other receivables - Additional Information (Detail) - GBP (£) £ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Disclosure of detailed information about financial instruments [line items]
Allowance for bad and doubtful debts as a percentage of gross trade accounts receivables	2.50%	1.60%	1.60%
Trade receivables [member]
Disclosure of detailed information about financial instruments [line items]
Bad debt expenses	£ 29.2	£ 12.3	£ 25.8
Overdue for more than 1 year [member]
Disclosure of detailed information about financial instruments [line items]
Percentage of the asset aged or overdue for creating additional provison for losses	100.00%
Overdue for 6 months or more and for less than 1 year [member]
Disclosure of detailed information about financial instruments [line items]
Percentage of the asset aged or overdue for creating additional provison for losses	50.00%

XML

Trade and other payables - Summary of Trade and Other Payables, Amounts Falling Due within One Year (Detail) - GBP (£) £ in Millions		Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Trade and other current payables [abstract]
Trade payables		£ 7,279.2	£ 10,112.1	£ 9,945.7
Deferred income		968.7	1,024.6	1,377.3
Payments due to vendors (earnout agreements)		65.4	142.4	167.6
Liabilities in respect of put option agreements with vendors		47.0	75.4	41.4
Fair value of derivatives		2.7	1.5	4.0
Share repurchases - close period commitments	[1]		252.3
Other creditors and accruals		2,409.3	2,578.5	2,829.7
Total		£ 10,772.3	£ 14,186.8	£ 14,365.7

[1] During 2019, the Company entered into an arrangement with a third party to conduct share buybacks on its behalf in the close period commencing on 2 January 2020 and ending on 27 February 2020, in accordance with UK listing rules. The commitment resulting from this agreement constitutes a liability at 31 December 2019, which is included in Trade and other payables: amounts falling due within one year and has been recognised as a movement in equity.

XML

Trade and other payables - Summary of Trade and Other Payables, Amounts Falling Due After More Than One Year (Detail) - GBP (£) £ in Millions	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Trade and other non-current payables [abstract]
Payments due to vendors (earnout agreements)	£ 101.2	£ 111.4	£ 203.9
Liabilities in respect of put option agreements with vendors	120.5	151.4	223.0
Fair value of derivatives	0.6	21.2
Other creditors and accruals	164.0	199.3	140.8
Trade and other payables	£ 386.3	£ 483.3	£ 567.7

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Trade and other payables - Payments Due to Vendors (Detail) - GBP (£) £ in Millions	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Disclosure of maturity analysis for non-derivative financial liabilities [Line items]
Payments due to vendors, Current	£ 65.4	£ 142.4	£ 167.6
Payments due to vendors, Non-current	101.2	111.4	203.9
Payments due to vendors	166.6	253.8	371.5	£ 414.7
Within one year [member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line items]
Payments due to vendors, Current	65.4	142.4	167.6
Between one and two years [member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line items]
Payments due to vendors, Non-current	26.1	36.9	90.0
Between two and three years [member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line items]
Payments due to vendors, Non-current	15.5	37.5	44.1
Between three and four years [member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line items]
Payments due to vendors, Non-current	28.1	14.8	36.9
Between four and five years [member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line items]
Payments due to vendors, Non-current	27.8	9.7	22.4
Over five years [member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line items]
Payments due to vendors, Non-current	£ 3.7	£ 12.5	£ 10.5

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Trade and Other Payables Amounts Falling Due After More than One Year - Summary of Deferred and Earnout Related Obligations (Detail) - GBP (£) £ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Disclosure Of Fair Value Of Contingent Consideration [abstract]
At the beginning of the period	£ 253.8	£ 414.7	£ 414.7
Earnouts paid	(88.5)	(57.9)	(130.0)
New acquisitions	2.9	3.9	9.6
Revision of estimates taken to goodwill	(3.0)	1.1	(14.3)
Revaluation of payments due to vendors (note 6)	(4.3)	8.4	1.1
Transfer to disposal group classified as held for sale			(11.5)
Exchange adjustments	5.7	1.3	(15.8)
At the end of the period	£ 166.6	£ 371.5	£ 253.8

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Issued share capital (Detail) - shares shares in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Text block [abstract]
Number of shares issued and fully paid, Beginning balance	1,328.2	1,332.7	1,332.7
Share cancellations	(32.1)	0.0	(4.5)
Number of shares issued and fully paid, Ending balance	1,296.1	1,332.7	1,328.2

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Related party transactions - Additional Information (Detail) - GBP (£) £ in Millions	6 Months Ended			12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	[1]	Dec. 31, 2019
Disclosure of transactions between related parties [line items]
Revenue	£ 5,582.7	£ 6,368.2		£ 13,234.1
Country US [Member] | Compas [Member]
Disclosure of transactions between related parties [line items]
Revenue	£ 49.7

[1] Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

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Related party transactions - Summary of related party transaction outstanding (Detail) - GBP (£) £ in Millions	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Amounts owed by related parties
Amounts receivable, related party transactions	£ 107.0	£ 175.0	£ 82.7
Amounts owed to related parties
Amounts payable, related party transactions	(76.5)	(86.1)	(56.0)
Kantar [Member]
Amounts owed by related parties
Amounts receivable, related party transactions	79.2	87.5
Amounts owed to related parties
Amounts payable, related party transactions	(14.6)	(36.5)
Other [Member]
Amounts owed by related parties
Amounts receivable, related party transactions	27.8	87.5	82.7
Amounts owed to related parties
Amounts payable, related party transactions	£ (61.9)	£ (49.6)	£ (56.0)

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Going concern and risk management policies - Additional Information (Detail) £ in Millions	Jun. 30, 2020 GBP (£)
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	£ 7,435.5

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Going concern and risk management policies - Committed Facilities (Detail) € in Millions, £ in Millions, $ in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2020 GBP (£)	Jun. 30, 2020 USD ($)	Jun. 30, 2020 EUR (€)	Jun. 30, 2020 AUD ($)
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	£ 7,435.5
Drawn down facilities	5,291.9
Undrawn committed credit facilities	2,143.6
Sterling bonds due September 2046 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	£ 400.0
Interest rate	2.875%	2.875%	2.875%	2.875%
US$ bonds due November 2043 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	£ 177.6	$ 220
Interest rate	5.625%	5.625%	5.625%	5.625%
US$ bonds due September 2042 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	£ 75.0	$ 93
Interest rate	5.125%	5.125%	5.125%	5.125%
Sterling bonds due 2032 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	£ 250.0
Interest rate	3.75%	3.75%	3.75%	3.75%
Euro bonds due March 2030 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	£ 545.0		€ 600
Interest rate	1.625%	1.625%	1.625%	1.625%
Euro bonds due 2027 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	£ 681.2		€ 750
Interest rate	2.375%	2.375%	2.375%	2.375%
Euro bonds due September 2026 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	£ 681.2		€ 750
Interest rate	2.25%	2.25%	2.25%	2.25%
Eurobonds Due September 2025 [Member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	£ 454.1		€ 500
Interest rate	1.375%	1.375%	1.375%	1.375%
US$ bonds due September 2024 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	£ 605.9	$ 750
Interest rate	3.75%	3.75%	3.75%	3.75%
Bank revolver due 2024 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	£ 2,019.5	$ 2,500
Euro bonds due November 2023 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	£ 681.2		€ 750
Interest rate	3.00%	3.00%	3.00%	3.00%
US$ bonds due September 2022 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	£ 403.9	$ 500
Interest rate	3.625%	3.625%	3.625%	3.625%
Eurobonds (3m EURIBOR 0.45%) due March 2022 [Member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available | €			€ 250
Eurobonds (3m EURIBOR + 0.45%) due March 2022 [member]
Disclosure of detailed information about borrowings [line items]
Adjustment to floating basis	0.45%	0.45%	0.45%	0.45%
Floating basis	3m EURIBOR
Total committed facilities available	£ 227.1
Bank revolver due 2021 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	233.8			$ 420
Within one year [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	233.8
Drawn down facilities	109.7
Within one year [member] | Bank revolver due 2021 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	233.8
Between one and two years [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	631.0
Drawn down facilities	631.0
Between one and two years [member] | US$ bonds due September 2022 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	403.9
Between one and two years [member] | Eurobonds (3m EURIBOR + 0.45%) due March 2022 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	227.1
Between two and three years [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	681.2
Drawn down facilities	681.2
Between two and three years [member] | Euro bonds due November 2023 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	681.2
Between three and four years [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	2,625.4
Drawn down facilities	605.9
Between three and four years [member] | US$ bonds due September 2024 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	605.9
Between three and four years [member] | Bank revolver due 2024 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	2,019.5
Later than four years [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	3,264.1
Drawn down facilities	3,264.1
Later than four years [member] | Sterling bonds due September 2046 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	400.0
Later than four years [member] | US$ bonds due November 2043 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	177.6
Later than four years [member] | US$ bonds due September 2042 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	75.0
Later than four years [member] | Sterling bonds due 2032 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	250.0
Later than four years [member] | Euro bonds due March 2030 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	545.0
Later than four years [member] | Euro bonds due 2027 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	681.2
Later than four years [member] | Euro bonds due September 2026 [member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	681.2
Later than four years [member] | Eurobonds Due September 2025 [Member]
Disclosure of detailed information about borrowings [line items]
Total committed facilities available	£ 454.1

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Financial instruments - Additional Information (Detail) £ in Millions	6 Months Ended
	Jun. 30, 2020 GBP (£)
Disclosure of detailed information about financial instruments [line items]
Weighted average growth rate	16.60%
Risk adjusted discount rate	1.30%
An increase or decrease in the multiple of zero point five times revenue [member]
Disclosure of detailed information about financial instruments [line items]
Increase or decrease in fair value of other investments	£ 26.9
Increase or decrease on Income statement due to change in fair value of other investment	1.5
Increase or decrease on equity due to change in fair value of other investment	25.4
One percentage point increase or decrease [member]
Disclosure of detailed information about financial instruments [line items]
Decrease in combined liabilities due to earn out and put option arrangement	3.7
Increase (Decrease) in combined liabilities due to earn out and put option arrangement	3.8
0.5 percentage point increase or decrease [member]
Disclosure of detailed information about financial instruments [line items]
Increase in combined liabilities due to earn out and put option arrangement	4.8
Decrease in combined liabilities due to earn out and put option arrangement	£ 4.7

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Financial instruments - Analysis of Financial Instruments Measured at Fair Value (Detail) - GBP (£) £ in Millions	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Disclosure of detailed information about financial instruments [line items]
Beginning balance	£ 498.3
Payments due to vendors (earnout agreements) (note 18)	(166.6)	£ (253.8)	£ (371.5)	£ (414.7)
Ending balance	398.0
At Fair Value [member] | Level 1 [member] | Held at fair value through other comprehensive income [member] | Other investments [member]
Disclosure of detailed information about financial instruments [line items]
Ending balance	28.4
At Fair Value [member] | Level 2 [member] | Derivatives in designated hedge relationships [member] | Derivatives Liabilities [member]
Disclosure of detailed information about financial instruments [line items]
Derivative liabilities	(0.6)
At Fair Value [member] | Level 2 [member] | Held at fair value through profit or loss [member] | Derivatives Liabilities [member]
Disclosure of detailed information about financial instruments [line items]
Derivative liabilities	(2.7)
At Fair Value [member] | Level 2 [member] | Held at fair value through profit or loss [member] | Derivatives Assets [member]
Disclosure of detailed information about financial instruments [line items]
Derivative assets	0.6
At Fair Value [member] | Level 3 [member] | Held for trading [member] | Liabilities in Respect of Put Options [member]
Disclosure of detailed information about financial instruments [line items]
Beginning balance	(226.8)
Losses recognised in other comprehensive income	26.0
Exchange adjustments	(1.3)
Additions	(1.5)
Settlements	7.2
Ending balance	(167.5)
At Fair Value [member] | Level 3 [member] | Equity investments [member] | Other investments [member]
Disclosure of detailed information about financial instruments [line items]
Beginning balance	456.1
Gains recognised in the income statement	1.7
Losses recognised in other comprehensive income	(88.7)
Additions	3.0
Disposals	(2.5)
Ending balance	369.6
At Fair Value [member] | Level 3 [member] | Held at fair value through profit or loss [member] | Trade And Other Payables To Trade Suppliers [member]
Disclosure of detailed information about financial instruments [line items]
Payments due to vendors (earnout agreements) (note 18)	(166.6)
At Fair Value [member] | Level 3 [member] | Held at fair value through profit or loss [member] | Liabilities in Respect of Put Options [member]
Disclosure of detailed information about financial instruments [line items]
Liabilities in respect of put options	(167.5)
At Fair Value [member] | Level 3 [member] | Held at fair value through profit or loss [member] | Other investments [member]
Disclosure of detailed information about financial instruments [line items]
Beginning balance	258.7
At Fair Value [member] | Level 3 [member] | Held at fair value through other comprehensive income [member] | Other investments [member]
Disclosure of detailed information about financial instruments [line items]
Ending balance	£ 110.9

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Reconciliation of operating (loss)/profit to headline operating profit - Summary of Reconciliation of Operating Profit to Headline Operating Profit (Detail) - GBP (£) £ in Millions		6 Months Ended			12 Months Ended
		Jun. 30, 2020	Jun. 30, 2019		Dec. 31, 2019
Statement [Line Items]
Operating (loss)/profit		£ (2,453.4)	£ 596.3		£ 1,295.9
Amortisation and impairment of acquired intangible assets		53.1	52.8		121.5
Goodwill impairment		2,520.8			47.7
Gains on disposal of investments and subsidiaries		(16.0)	(40.6)	[1]	(40.4)
Gains on remeasurement of equity interests arising from a change in scope of ownership			(0.4)	[1]	(0.4)
Investment and other write-downs		220.6			7.5
Litigation settlement			(16.8)	[1]	(16.8)
Gain on sale of freehold property in New York			(7.9)	[1]	(7.9)
Restructuring and transformation costs		17.9	33.9		153.5
Restructuring costs in relation to COVID-19		39.3
Headline operating profit	[2]	£ 382.3	£ 617.3	[1]	£ 1,560.6

[1] Figures for the period ended 30 June 2019 have been re-presented in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, as described in note 13.

[2] A reconciliation from operating (loss)/profit to headline operating profit is provided in note 23.