WPP’s half year profit gets boost from revaluations and disposals

BLOCKLEY, U.K. - Aug. 26, 2015 - PRLog -- Asset disposals and revaluation gains of £232 million helped the world's biggest marketing group WPP to boost its post-tax profit by 55% in the half year to 30 June, according to an analysis of its results by the financial research publication "Marketing Services Financial Intelligence".

This morning WPP reported a post-tax profit earned for the company's shareholders in the period of £566.2 million, up from £364.8 million in the corresponding period of 2014.

"Without the gains from asset disposals and revaluations, the post-tax profit would have been about £334 million, compared with £341.8 million in the first half of 2014", commented the publication's editor Bob Willott. "According to WPP, the related tax charge would have been minimal and on that basis the profit for the half year would have fallen by 2.3%."

The abnormal gains of £232 million included a £43.6 million “paper” profit on the sale of certain Kantar internet measurement businesses to comScore in consideration for shares and £29.7 million of gains arising on the sale of the group's minority stake in eRewards.  In addition a paper gain of £140.2 million arose on remeasuring WPP’s existing shareholding in the Brazilian IBOPE businesses when it acquired a majority stake earlier this year.

ENDS