WPP 'firing on all cylinders'

ADVERTISING industry leader and amateur economic forecaster Sir Martin Sorrell was mixing his metaphors today, saying his WPP empire is firmly out of the bath and firing on all cylinders.

Sorrell's colourful characterisations of the industry after the 9/11-induced recession had previously had him talking of bath-shaped recoveries with corrugated bottoms and a future full of showers.

But today, after a bumper 2004 when the Olympic Games and US Presidential elections saw WPP grow revenues by 5.2%, and a strong start to 2005, Sorrell was confidently predicting that WPP will outperform the wider market.

The industry expects expansion this year of between 2% and 3% but Sorrell says WPP's growth will be between 3% and 4%.

'The industry is a little more relaxed than it has been over the major issues that remain - the twin [US trade and budgetary] deficits, high commodity prices and the weak dollar. There is now less chance of showers and we are firing on all cylinders,' he enthused.

WPP is gearing up for a strong 2006 with the US Congressional elections and the World Cup in Germany, and Sorrell expects a 'blowout' in 2008 when the next US Presidential polls and Olympics come round.

The group reported underlying pre-tax profits in 2004 up 15% at £546m, with operating margins up 1.1 percentage points at 14.1. The full year dividend is up 20% at 7.78p.