WPP sales jumped in July as a 'tsunami' of advertising contracts come up for review

Britain’s WPP, the world’s biggest advertising company, said it expected to hit its full-year net sales and margin targets after seeing a sharp upturn in trading in July.

WPP, which handles the advertising needs of brands such as Ford and Unilever, reported a 2.3 per cent rise in first half like-for-like net sales, in line with forecasts, and a 3.7 per cent jump in July, which it said indicated a likely stronger third quarter.

The group, one of Britain’s best known companies and run by Martin Sorrell, said as a result it expected to hit its target of full-year net sales growth of over 3 per cent, helped by an expected stronger second half. It also reiterated its target for an improvement in the operating margin of 0.3 margin points.

WPP said it had seen good growth across all its regions and in advertising and media, direct, digital and specialist communications.

The firm said it was also seeing good results from the “tsunami” of media contracts that were up for review.

“The group continues to benefit from consolidation trends in the industry, winning assignments from existing and new clients, including several very large industry-leading advertising, media and digital assignments, the full benefit of which will be seen reflected in Group revenue later in 2015 and into 2016,” it said.

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This article originally appeared at Reuters. Copyright 2015. Follow Reuters on Twitter.

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