This excerpt taken from the WPPGY 6-K filed Oct 10, 2008.
WPP Groups results for the six months ended 30 June 2008 represented record levels of performance throughout all regions and sectors of the business and reflected good revenue and operating profit growth. Operating margin improved in line with objectives.
Reportable revenue was up 14.3% at £3.339 billion. Revenue on a constant currency basis was up 8.1% compared with the first half of 2007, chiefly reflecting the strength of the Euro against the £ sterling in the first six months of 2008.
On a like-for-like basis, which excludes the impact of acquisitions and currency, revenues were up 4.3% in the first half.
Operating profit was up 18.2% (8.2% in constant currencies) to £377.8 million for the first half of 2008. Headline profit before interest and taxation (profit before finance income/costs, taxation, investment gains and write-downs, goodwill impairment and other goodwill write-downs, amortisation and impairment of acquired intangible assets, and share of exceptional gains of associates) was up 18.4% (9.2% in constant currencies) to £453.4 million from £383.1 million, giving an operating margin of 13.6% against 13.1% in the first half of 2007.
Before short-term and long-term incentives (including the cost of share-based compensation), operating margins were almost flat at 16.1%. Short and long-term incentives and the cost of share-based incentives amounted to £84.1 million or 16.3% of operating profits before bonus and taxes, compared to £92.2 million last year, partly as a result of currency movements, and partly the first half impact of additional investment in staff and space costs.
On a reported basis the Groups staff cost to revenue ratio, including incentives, remained at 59.9% in the first half of 2008, the same as achieved in the same period last year, even after a continued investment in people. On a like-for-like basis, the average number of people in the Group, excluding associates, was 93,233 in the first half of the year, compared to 89,027 in 2007, an increase of 4.7%. On the same basis, the total number of people in the Group, excluding associates, at 30 June 2008 was 95,093 compared to 90,881 in June 2007, an increase of 4,212 or 4.6%. Of the additional 4,212 people at the end of June this year, 3,633 or 86% were added in the faster growing markets of Asia Pacific, Latin America, Middle East and Africa and Central and Eastern Europe.
Net finance costs (excluding the revaluation of financial instruments) were £64.3 million compared with £45.1 million in 2007, an increase of £19.2 million, reflecting higher levels of net debt as a result of net acquisition investments and share repurchases over the previous twelve months.
Headline profit before tax was up 15.1% to £389.1 million from £338.0 million or up 4.9% in constant currencies, primarily reflecting the impact of higher £ sterling translation of interest costs on Euro-denominated debt.
Reported profit before tax rose by 15.1% to £338.5 million from £294.1 million. In constant currencies pre-tax profits rose by 3.4%, again, primarily reflecting the impact of higher £ sterling translation of interest costs on Euro-denominated debt.
The tax rate on headline profit before tax was 26.0%, down 0.9 percentage points on the first half 2007 rate of 26.9%.
Profits attributable to share owners rose by 14.5% to £208.2 million from £181.9 million.
Diluted headline earnings per share rose by 21.4% to 22.1p from 18.2p. In constant currencies, earnings per share on the same basis rose by 9.3%. Diluted reported earnings per share were up 21.1% to 17.8p and up 6.4% in constant currencies.
The Board declared an increase of 20% in the interim ordinary dividend to 5.19p per share. The record date for this interim dividend is 10 October 2008, payable on 10 November 2008.
This excerpt taken from the WPPGY 6-K filed Sep 8, 2005.
This document explains the Scheme Proposals to introduce a new parent company for the WPP Group. This new parent company (New WPP) is currently called WPP 2005 plc but will be renamed WPP Group plc immediately after the Scheme becomes effective. After the Scheme becomes effective, New WPP will own all the shares of the existing parent company, WPP Group plc (WPP), which will be renamed WPP 2005 plc immediately after the Scheme becomes effective. It is likely that WPP will also be re-registered as a private limited company shortly after the Scheme becomes effective.
This document also summarises the Share Plans Proposals to approve and authorise the adoption by the New WPP directors of the New Share Plans and the adoption by the New WPP directors of the Continuing Share Plans, as well as summarising the terms of the New Share Plans and the Continuing Share Plans and the reasons for their proposed adoption.
To help you understand what is involved in the Proposals we have prepared this summary. You should read the whole of this document and not rely solely on the summary of the Proposals below.
Unless otherwise noted in this summary, discussion of WPP Shares and New WPP Shares includes WPP Shares represented by WPP ADSs and New WPP Shares represented by New WPP ADSs.
On completion of the Scheme Proposals, you will receive one New WPP ordinary share (New WPP Share) in place of every WPP ordinary share (WPP Share) that you hold at the Scheme Record Time (which is expected to be 6.00 p.m. (London time) on 24 October 2005). If you hold your WPP Shares in the form of WPP ADSs, Citibank, N.A., as US Depositary, is the holder of the WPP Shares represented by your WPP ADSs, and, as such, will receive one New WPP Share for every WPP Share held at the Scheme Record Time. The US Depositary will effect the cancellation of WPP ADSs, including WPP ADSs held in the form of WPP ADR certificates, and issuance of New WPP ADSs under the terms of the New WPP ADS Deposit Agreement.