Fri, 18 Dec 2020 | BUSINESS NEWS
WPP, the world’s biggest advertising group, has announced that it intends to pursue £200m-£400m in acquisitions each year in high-growth areas such as ecommerce and tech. In its strategy, announced to investors on Thursday, the company said this would help it expand its ecommerce and marketing technology business from 25 per cent of revenues to 40 per cent by 2025.
Having been impacted by the COVID-19 pandemic, WPP expects to recover to single-digit revenue growth by 2022 before exceeding market estimates and achieving 3-4 per cent revenue growth a year from 2023.
The company plans to make around £600 million in cost savings by 2025 by streamlining its business and property portfolio. It then intends to reinvest around £400 million of this, including through hiring.
For the past two years, WPP has been simplifying its network of advertising and marketing companies developed under founder Sir Martin Sorrell, who left the company in 2018. In this time it has struggled to record positive revenue.
WPP CEO Mark Read commented: “Now is the time to benefit from the integration of the company and look for new growth opportunities that go beyond the traditional communications market of WPP.” However, Read cautioned that the company would not be embarking on “an acquisition spree”, but that “The number one thing we have to do is deliver organic growth.”
Regarding the structural changes already made at the group, Read said: “The actions that we have taken have positioned us well, and we are already working with 76 of our top 100 clients on ecommerce. There are significant new growth opportunities for WPP as clients demand simple, integrated solutions that combine creativity with technology and data expertise.”
“In partnership with our agency brands we are deepening and accelerating the change already happening within WPP. We aim to return our communications business to sustainable growth and invest further in the high-growth areas of commerce, experience and technology. We are converting our size into scale, making us more effective and efficient as we share expertise across a simpler company of stronger agency brands.”
Provides a full range of marketing services, specialising in the creation of AI websites. Utilises unique AI technology to deliver tailored content to website visitors.
LEASEHOLD
Highly reputable business operating for over eight years. Publishes print and digital content which details the latest developments in the global tank storage market.
LEASEHOLD
The company has developed and operates a leading online resource, which holds over 25 million specialist records and is renowned as leafing expert within its niche field. Over 2.5 million registered customer accounts, with the website receiving an av...
LEASEHOLD
|
20
|
|
Jan
|
Modulaire Group extends UK presence with Carter acquisition | BUSINESS SALE
Modular space leasing business Modulaire Group has announced...
|
19
|
|
Jan
|
Injection moulding business sold out of administration to employees | BUSINESS SALE
Conwy-based injection moulding company A2B Plastics Limited ...
|
18
|
|
Jan
|
AFH Financial Group ready to return to acquisition trail in 2021 | BUSINESS NEWS
In its yearly report to October 2020, wealth manager and adv...
Sign up to receive our acquisition alert emails to get your FREE guide
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources