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Interests in associates, joint ventures and other investments
 12 Months Ended
Dec. 31, 2019
Investments accounted for using equity method [abstract]  
Interests in associates, joint ventures and other investments
16. Interests in associates, joint ventures and other investments
 
The movements in 2019 and 2018 were as follows:
 
 
  
Interests in
associates
and joint
ventures
£m
 
 
Other
investments
£m
 
1 January 2018
  
 
1,065.2
 
 
 
1,153.5
 
Additions
  
 
16.7
 
 
 
35.0
 
Share of results of associate undertakings
  
 
43.5
 
 
 
–
 
Dividends
  
 
(49.7
) 
 
 
–
 
Other movements
  
 
1.2
 
 
 
–
 
Reclassification from other investments to associates
  
 
0.3
 
 
 
(0.3
) 
Exchange adjustments
  
 
12.9
 
 
 
–
 
Disposals
  
 
(304.0
) 
 
 
(341.7
) 
Reclassification to subsidiaries
  
 
16.9
 
 
 
–
 
Revaluation of other investments through profit or loss
  
 
–
 
 
 
68.1
 
Revaluation of other investments through other comprehensive income
  
 
–
 
 
 
(247.9
) 
Amortisation of other intangible assets
  
 
(4.2
) 
 
 
–
 
Write-downs
  
 
(2.0
) 
 
 
–
 
31 December 2018
  
 
796.8
 
 
 
666.7
 
Additions
  
 
236.6
 
 
 
18.
3
 
Share of results of associate undertakings
  
 
21.2
 
 
 
–
 
Dividends
  
 
(33.3
) 
 
 
–
 
Other movements
  
 
1.2
 
 
 
–
 
Exchange adjustments
  
 
(35.5
) 
 
 
–
 
Disposals
  
 
(51.5
) 
 
 
(42.3
) 
Reclassification to subsidiaries
  
 
(0.3
) 
 
 
–
 
Revaluation of other investments through profit or loss
  
 
–
 
 
 
9.1
 
Revaluation of other investments through other comprehensive income
  
 
–
 
 
 
(141.4
) 
Amortisation of other intangible assets
  
 
(5.6
) 
 
 
–
 
Transfer to disposal group classified as held for sale
  
 
(109.1
) 
 
 
(12.1
) 
Write-downs
  
 
(7.5
) 
 
 
–
 
31 December 2019
  
 
813.0
 
 
 
498.3
 
 
The investments included above as “other investments” represent investments in equity securities that present the Group with opportunity for return through dividend income and trading gains. They have no fixed maturity or coupon rate. The fair values of the listed securities are based on quoted market prices. For unlisted securities, where market value is not available, the Group has estimated relevant fair values on the basis of publicly available information from outside sources.
 
The carrying values of the Group’s associates and joint ventures are reviewed for impairment in accordance with the Group’s accounting policies.
 
The fair value of other investments represents valuations as at 31 December 2019 and does not consider the impact of the emergence and spread of the Covid-19 virus.
 
The Group’s principal associates and joint ventures at 31 December 2019 included:
 
 
  
%
owned
 
  
Country of
incorporation
 
Barrows Design and Manufacturing (Pty) Limited
  
 
35.0
 
  
 
South Africa
 
Dat Viet VAC Media Corporation
  
 
30.0
 
  
 
Vietnam
 
GIIR Inc.
  
 
30.0
 
  
 
Korea
 
Haworth Marketing & Media Company
  
 
49.0
 
  
 
USA
 
High Co SA
  
 
34.1
 
  
 
France
 
Joye Media SL
1
  
 
22.5
 
  
 
Spain
 
Nanjing Yindu Ogilvy Advertising Co. Ltd
  
 
49.0
 
  
 
China
 
Smollan Holdings (Pty) Ltd
  
 
24.8
 
  
 
South Africa
 
Summer (BC) JVCo S.à r.l.
2
  
 
40.0
 
  
 
Luxembourg
 
Summer (BC) US JVCo SCSp
2
  
 
40.0
 
  
 
Luxembourg
 
 
Notes
1
 
 
Representing the Group’s interest in Imagina.
2
 
 
Representing the Group’s interest in Kantar split between the United States and rest of world.
 
The market value of the Group’s shares in its principal listed associate undertakings at 31 December 2019 was as follows: GIIR Inc: £21.2 million, and High Co SA: £39.4 million (2018: GIIR Inc: £26.3 million and High Co SA: £30.3 million). The carrying value (including goodwill and other intangibles) of these equity interests in the Group’s consolidated balance sheet at 31 December 2019 was as follows: GIIR Inc: £37.7 million and High Co SA: £35.4 million (2018: GIIR Inc: £46.8 million and High Co SA: £37.1 million).
 
Where the market value of the Group’s listed associates is less than the carrying value, an impairment review is performed utilising the discounted cash flow methodology discussed in note 14, which represents the value in use.
 
The Group’s investments in its principal associate undertakings are represented by ordinary shares.
 
Summarised financial information
The following tables present a summary of the aggregate financial performance and net asset position of the Group’s associate undertakings and joint ventures. These have been estimated and converted, where appropriate, to an IFRS presentation based on information provided by the relevant companies at 31 December 2019.
 
 
  
2019
£m
 
 
2018
£m
 
 
2017
£m
 
Income statement
  
 
 
 
 
 
 
 
 
 
 
 
Revenue
  
 
3,619.1
 
 
 
3,685.8
 
 
 
3,800.8
 
Operating profit
  
 
365.6
 
 
 
378.4
 
 
 
440.4
 
Profit before taxation
  
 
(385.9
) 
 
 
194.7
 
 
 
381.9
 
Profit for the year
  
 
(429.6
) 
 
 
118.1
 
 
 
312.5
 
    
Balance sheet
  
 
 
 
 
 
 
 
 
 
 
 
Assets
  
 
8,8
5
5.
1
 
 
 
2,940.9
 
 
 
3,192.9
 
Liabilities
  
 
(6,765.7
) 
 
 
(1,570.6
) 
 
 
(1,633.7
) 
Net assets
  
 
2,0
89
.
4
 
 
 
1,370.3
 
 
 
1,559.2
 
 
The application of equity accounting is ordinarily discontinued when the investment is reduced to zero and additional losses are not provided for unless the Group has guaranteed obligations of the investee or is otherwise committed to provide further financial support for the investee.
 
At 31 December 2019, capital commitments contracted, but not provided for
,
in respect of interests in associates and other investments were £21.8 million (2018: £31.4 million).