The performance of WPP PLC (LON:WPP) is often seen as a proxy for the global economy, so results from the marketing giant have wide implications.
The shares are down 13% year-to-date, which does not bode well for the state of the economy, although there have been some factors specific to WPP that have acted as a drag on share price performance.
One of those factors was the malware attack in June that hit a lot of the group’s agencies.
WPP said its emphasis on restoring services would not only be on speed, but also on safety, but almost two months later it would be good to know that normal service has been resumed.
“These results will provide a valuable insight into trading and operational developments at a time when confidence in the outlook for advertising spend appears to be faltering,” said Shore Capital.
“Our more cautious mind-set also reflects comments from senior advertising industry players suggesting that the trend for brands to review agency relationships on a more frequent basis is here to stay and that marketing executives are currently exhibiting a more reticent and short-term approach to committing their budgets,” the broker said.
WPP’s half-year revenue is expected to be in the region of £7.5bn while analysts have pencilled in 45.7p for earnings per share, and 22p for the dividend.
Anglo Pacific interims well-flagged
Away from the FTSE 250, mining royalty business Anglo Pacific Group PLC (LON:APF) will also report its interims on Wednesday, and the numbers are fairly well flagged, given last month’s trading update.
Anglo will report a steep rise in free cash flow to between £18.5mln and £19mln, compared to £4.7mln in the same period of 2016.
Royalty income should almost have quadrupled year-on-year to between £15.9mln and £16.3mln, thanks largely to a pickup in royalties from its Kestrel mine.
Signficant events expected on Wednesday August 23
Finals: Laura Ashley Holdings PLC (LON:ALY)
Interims: Anglo Pacific Group PLC (LON:APF), Candover Investments PLC (LON:CDI), Costain Group PLC (LON:COST), Hansteen Holdings PLC (LON:HSTN), Vedanta Resources PLC (Q1) (LON:VED), WPP PLC (LON:WPP)
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