WPP PRESENTS STRATEGY FOR GROWTH

[idpickering]

CEO Mark Read sets out three-year plan of "radical evolution"
to deliver improved performance

WPP today announces the results of its strategic review, setting out a new plan to return the business to growth.

The strategy reflects a new vision for WPP as a leader in creativity and technology. It incorporates a simpler, improved offer designed to capture the opportunities of a changing marketplace, and a streamlined structure built around the needs of clients. It also includes additional investments in creativity, technology and talent to enhance WPP's proposition to clients and drive top-line growth.

WPP expects to deliver organic growth (defined as like-for-like revenue less pass-through costs growth) in line with its peers at a headline operating profit margin (excluding associates) of at least 15% by the end of 2021 as a result of the strategy. The company will incur cash costs for restructuring of £300m over the next three years to deliver estimated annual savings of £275m by the end of 2021, approximately half of which will be reinvested in the business.

https://www.investegate.co.uk/wpp-plc-- ... 00150423K/

[monabri]

Within the section titled "Future Capital Allocation Policy"

"Over the next three years we will prioritise the dividend over share buy-backs and will balance targeted M&A with divestments"

[idpickering]

Within the section titled "Future Capital Allocation Policy"

"Over the next three years we will prioritise the dividend over share buy-backs and will balance targeted M&A with divestments"

Aye monabri, I saw that. I'm not in any rush to top my WPP holdings up though.

Ian.

[wanderer101]

The next sentence after Monabri's quote (my bold): The Board anticipates declaring a final dividend of 37.3p at the Preliminary Results to deliver a full-year dividend for the current financial year of 60p which it intends to maintain.

At last night's close of 805 p that's an ongoing yield of 7.45 percent with a pledge to maintain by the board.

I hold and am sitting on a near-40 pc capital loss, but happy with my top-up (/averaging down) yesterday.

cheer wand

[monabri]

The market response appears positive.

[idpickering]

The market response appears positive.

Up 5.7% as I type in fact. Not that we're bothered about that here of course.

I did top up recently, so a hold for me for now.

Ian.

[idpickering]

This from TMF may be of interest;

Is FTSE 100 stock WPP a ‘buy’ after this dividend news?

Looking at the FTSE 100 this morning, advertising giant WPP (LSE: WPP) is the top performer. Its shares are currently up around 7% versus a rise of 0.9% for the index. This will be welcome news for WPP shareholders, myself included, as the stock has had an awful run over the last year, losing over a third of its value. So why have the shares bounced today? Let’s take a closer look.

And later;

FTSE 100 bargain

Looking ahead, WPP’s transformation isn’t going to happen overnight. The company advised this morning that full-year revenue decline this year is likely to be around -0.5%, and that 2019 will be a year of investment in the business.

Yet with a 60p per share dividend on offer, investors buying now can pick up a 7% yield while they wait for the company to turn things around. With the stock trading on a P/E of just 7.9, I think WPP is a dividend stock to buy now and tuck away for a few years.

https://www.fool.co.uk/investing/2018/1 ... dend-news/

[Arborbridge]

The market response appears positive.

Up 5.7% as I type in fact. Not that we're bothered about that here of course.

I did top up recently, so a hold for me for now.

Ian.

I notice the wink, and of course most of us are interested in the share price in many cases, and certainly if one has bought this stock since Sorell resigned. I'm not inclined to top up (not that I can, because that particular account is out of cash!) but I would be interested to give away a little yield in return for seeing the shares showing some life by way of an uptrend. I've already done the opposite with WPP - bought into increasing yield with a falling price!

Arb.

[monabri]

The market response appears positive.

Up 5.7% as I type in fact. Not that we're bothered about that here of course.

I did top up recently, so a hold for me for now.

Ian.

Nope, never bothers me at all when a bought share's price goes up..it just doesn't seem to happen enough though!

The earnings projections for next year are down, followed by a stabilisation and then a slow increase. This ties in with their divi strategy ...so a definite hold for me and a definite new buy for non holders.

[idpickering]

The market response appears positive.

Up 5.7% as I type in fact. Not that we're bothered about that here of course.

I did top up recently, so a hold for me for now.

Ian.

Nope, never bothers me at all when a bought share's price goes up..it just doesn't seem to happen enough though!

The earnings projections for next year are down, followed by a stabilisation and then a slow increase. This ties in with their divi strategy ...so a definite hold for me and a definite new buy for non holders.

Thanks for your input Arb, and monabri. It is for the reasons you mentioned monabri, that they're a hold for me.

Ian.

[Wizard]

I for one was concerned about a dividend cut here, so I see the statement as a positive. I am now thinking about topping up to average down my purchase price.

Terry.