StockMarketWire.com - Advertising firm WPP said it would spend £300m over the next three years as part of a restructuring effort designed to boost efficiency and sharpen its offering.

The spending was expected to deliver estimated annual savings of £275m by the end of 2021, the company said.

WPP also said it expected to deliver organic growth -- which it defined as like-for-like revenue minus 'pass through costs growth' -- in line with its peers at an operating profit margin of at least 15%, by the end of 2021.

'The strategy reflects a new vision for WPP as a leader in creativity and technology,' WPP said.

'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.'

The company also said that it had become too unwieldy, with too much duplication.

It therefore intended to create a simpler structure, based around the three principals of clients, companies and countries.

Turning to its more immediate outlook, WPP said it anticipated reporting full-year results in line with consensus expectations, with full-year like-for-like revenue less pass-through costs growth now expected to be closer to minus 0.5%.

'We are beginning a multi-year improvement programme and 2019 will be a year of investment in the business with the execution of our cost-savings programme and further actions taken to return the company to long-term sustainable growth,' it added.

'Previously announced account losses will create the anticipated headwind, particularly in the first half of the year.'



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