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.”
A highly regarded full-service healthcare marketing agency that designs and implements programmes targeting healthcare professionals to drive product recommendations or prescriptions. The company provides services to a global market-leading clientele...
PR, media & marketing activities, operating within a niche sector. With huge growth potential remaining and a strong team already in place.
LEASEHOLD
This is a rare opportunity to acquire a nationally recognised, award winning printing business. As one of the UK’s leaders in their field, their strengths are in a broad mix of magazine, catalogue, books, and digital print as well as offering online...
26
|
May
|
Administrators to bring landmark Sheffield building to market | ADMINISTRATION
A landmark building in Sheffield is to be put up for sale af...
25
|
May
|
Circular economy group expands with UK takeover | BUSINESS SALE
Reconomy Group, a global circular economy firm, has acquired...
25
|
May
|
Assets of leisure firm to be sold amid FCA investigation | ADMINISTRATION
Administrators are seeking a buyer for the business and asse...
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
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.