Financial summary
Financial Summary
|
2016 |
2015 |
Change % |
Billings1 |
£55,245m |
£47,632m |
+16.0 |
Revenue |
£14,389m |
£12,235m |
+17.6 |
Net sales1 |
£12,398m |
£10,524m |
+17.8 |
Headline EBITDA2 |
£2,420m |
£2,002m |
+20.8 |
Headline operating profit2 |
£2,095m |
£1,705m |
+22.9 |
Reported operating profit |
£2,063m |
£1,632m |
+26.4 |
Headline PBIT2 |
£2,160m |
£1,774m |
+21.8 |
Net sales margin2 |
17.4% |
16.9% |
+0.5* |
Headline PBT2 |
£1,986m |
£1,622m |
+22.4 |
Reported PBT |
1,891m |
£1,493m |
+26.7 |
Headline earnings2 |
£1,468m |
£1,229m |
+19.4 |
Reported earnings |
£1,400m |
£1,160m |
+20.7 |
|
|
|
|
Headline diluted earnings per share2,3 |
113.2p |
93.6p |
+20.9 |
Reported diluted earnings per share3 |
108.0p |
88.4p |
+22.2 |
Ordinary dividend per share |
56.60p |
44.69p |
+26.7 |
Ordinary dividend per ADR4 |
$3.83 |
$3.42 |
+12.0 |
|
|
|
|
Net debt at year-end |
£4,131m |
£3,211m |
+28.6 |
Average net debt5 |
£4,340m |
£3,562m |
+21.8 |
Ordinary share price at year-end |
1,816.0p |
1,563.0p |
+16.2 |
ADR price at year-end |
$110.66 |
$114.74 |
-3.6 |
Market capitalisation at year-end |
£23,260m |
£20,237m |
+14.9 |
|
|
|
|
At 12 April 2017 |
|
|
|
Ordinary share price |
1,737.0p |
|
|
ADR price |
$108.60 |
|
|
Market capitalisation |
£22,214m |
|
|
Reported revenue was up 17.6% at £14,389 million. On a constant currency basis, revenue was up 7.2% and, on a like-for-like basis, revenue was up 3.0%.
Reported net sales were up 17.8% at £12,398 million. On a constant currency basis, net sales were up 7.4% and, on a like-for-like basis, net sales were up 3.1%.
Headline PBIT was up 21.8% to £2,160 million, over £2 billion for the first time. Net sales margin was up 0.5 margin points (0.3 margin points on a like-for-like basis) to an industry-leading 17.4%.
Headline EBITDA (headline earnings before interest, taxation, depreciation and amortisation) rose by 20.8% (8.0% in constant currencies).
Return on equity decreased marginally to 16.2% in 2016, versus a weighted average cost of capital of 6.4% in 2016, also down from 2015.
Headline diluted earnings per share were up 20.9% to 113.2p. Dividends were up 26.7% to 56.60p per share, giving a payout ratio of 50%, reaching the targeted payout ratio of 50% one year ahead of schedule.
Average net debt was up at £4.3 billion in 2016, primarily reflecting the weakness of sterling. The average net debt to headline EBITDA ratio remains under 1.8 times, almost in the middle of the Group’s target range of 1.5-2.0 times.
In September 2016, the Group issued £400 million of 30-year bonds with a coupon of 2.875%, refinancing £400 million of bonds maturing in April 2017 with a coupon of 6.0%.
In 2016, 30% of the Group’s revenue came from Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe up almost one percentage point from 2015. Our target is to increase this to 40-45% of revenues over the next five years.
Profit growth was strongest in Western Continental Europe in 2016, with margin improvement across all regions in the year.
Marketing services comprised 54% of our revenues in 2016, similar to 2015. Revenue growth was strongest in Advertising and Media Investment Management at almost 5% on a like-for-like basis.
All sectors showed margin improvement in 2016, with the strongest growth in Data Investment Management and Public Relations & Public Affairs.