WPP Group is forecasting record trading for 1995, its tenth year. Last week the media giant recorded a surge in pre-tax profits of 57 per cent to Ãº85.3m for the year to end-1994.
WPP’s specialist communications arm – which includes Sampson Tyrrell, Coley Porter Bell and BDG/McColl – again reported an increase in revenue, with all three consultancies praised for performing particularly well.
The communications division, which also includes US design groups Anspach Grossman Portugal, SBG Partners and Walker Group/CNI, contributed 19 per cent of WPP’s operating profits.
All three UK consultancies have reported increased annual turnovers to year-end 1994; Sampson Tyrrell cites an unaudited increase to Ãº8m from Ãº7.3m in 1993; Coley Porter Bell’s turnover is up by more than a third to Ãº6.6m from Ãº4.6m for the same period last year; and BDG/McColl reports a 1994 annual turnover of Ãº22.27m compared with Ãº17.06m for 1993.
The US and the UK are pin-pointed as still suffering from economic uncertainties. However, the UK, which contributed 19.4 per cent of the total group revenue, “ranks as an emerging market” and sources suggest closer working relationships between WPP companies have contributed to about 20 per cent of the group’s new business.