WPP boss says agony will go on

ADVERTISING chief Sir Martin Sorrell is to warn that his industry is a long way from recovery.

Sorrell, chief executive of marketing services giant WPP, will use his group's annual meeting to deal this new blow to an already battered sector.

Sorrell will reveal details of the company's trading in the first five months of the year. And he will predict no significant recovery in advertising spending until 2004.

The worst-performing market for the company is North America, where revenues are likely to be down by about six%. Britain and the Continent turned in a stronger performance, but while first-quarter revenues were up almost two%, growth is now thought to have tailed off.

The worst-performing operation is public relations, which is reckoned to be down more than 12%. Total advertising revenue for WPP, owner of agencies such as J. Walter Thompson, is estimated to be have been flat.

Media shares have fallen relentlessly since early 2000 as the economic slowdown has seen companies slash marketing budgets to control costs. WPP has ridden the storm better than many rivals and its shares closed at 592p on Friday, down 20p on the week.

Directors of Cordiant have met Julian Treger, director of the Active Value fund, which has been building a stake in the marketing services company.

Treger is understood to have demanded that Cordiant appoints younger non-executive directors and adds more American non-executives to its board.