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Assets held for sale and discontinued operations (Tables)
 6 Months Ended
Jun. 30, 2020
Text block [abstract]  
Disclosure of detailed information about amounts of discontinued operations included in profit explanatory
Results of the discontinued operations, which have been included in profit for the year, were as follows:
 
  
  
Six months ended
30 June
2020
 
 
Six months ended
30 June
2019
 
 
Year ended
31 December
2019
 
  
  
£m
 
 
£m
 
 
£m
 
Revenue
  
 
101.9
 
 
 
1,247.8
 
 
 
2,387.5
 
Cost
s
of services
  
 
(87.4
) 
 
 
(1,061.4
) 
 
 
(1,951.5
) 
Gross profit
  
 
14.5
 
 
 
186.4
 
 
 
436.0
 
General and administrative costs
  
 
(4.0
) 
 
 
(109.7
) 
 
 
(151.7
) 
Operating profit
  
 
10.5
 
 
 
76.7
 
 
 
284.3
 
Share of results of associates
  
 
—  
 
 
 
6.5
 
 
 
6.5
 
Profit before interest and taxation
  
 
10.5
 
 
 
83.2
 
 
 
290.8
 
Finance income
  
 
0.2
 
 
 
1.8
 
 
 
3.6
 
Finance costs
  
 
(0.3
) 
 
 
(9.1
) 
 
 
(17.3
) 
Revaluation and retranslation of financial instruments
  
 
—  
 
 
 
(6.7
) 
 
 
(9.4
) 
Profit before taxation
  
 
10.4
 
 
 
69.2
 
 
 
267.7
 
Attributable tax expense
  
 
(2.1
) 
 
 
(19.5
) 
 
 
(78.8
) 
Profit after taxation
  
 
8.3
 
 
 
49.7
 
 
 
188.9
 
Goodwill impairment on classification as held for sale
1
  
 
—  
 
 
 
—  
 
 
 
(94.5
) 
(Loss)/gain on sale of discontinued operations
  
 
(3.3
) 
 
 
—  
 
 
 
73.8
 
Attributable tax expense on sale of discontinued operations
  
 
(1.9
) 
 
 
—  
 
 
 
(157.4
) 
Net gain attributable to discontinued operations
  
 
3.1
 
 
 
49.7
 
 
 
10.8
 
Attributable to:
  
   
 
   
 
   
Equity holders of the parent
  
 
(6.8
) 
 
 
43.2
 
 
 
(3.8
) 
Non-controlling
interests
2
  
 
9.9
 
 
 
6.5
 
 
 
14.6
 
 
  
 
3.1
 
 
 
49.7
 
 
 
10.8
 
Note
s
1
 
Goodwill impairment of £94.5 million arose from the assessment of fair value less costs to sell under IFRS 5 in the year ended 31 December 2019.
2
 
In 2020,
non-controlling
interests includes £9.3 million recognised on the disposal of Kantar within WPP Scangroup, a 56.25% owned subsidiary of the Group.
Disclosure of detailed information about gain on sale of discontinued operations explanatory
The gain on sale of discontinued operations is calculated as follows:
 
    
30 June
2020
  
31 December
2019
 
    
£m
  
£m
 
Intangible assets (including goodwill)
   150.9   2,410.0 
Property, plant and equipment
   13.7   115.7 
Right-of-use
assets
   24.2   103.5 
Interests in associates and joint ventures
   2.0   92.3 
Other investments
   —     11.5 
Deferred tax assets
   5.5   44.1 
Corporate income tax recoverable
   15.0   49.8 
Trade and other receivables
   157.6   748.8 
Cash and cash equivalents
   19.8   324.9 
Trade and other payables
   (129.0)   (839.8) 
Corporate income tax payable
   (4.0)   (48.2) 
Lease liabilities
   (20.5)   (106.3) 
Deferred tax liabilities
   (1.3)   (98.6) 
Provisions for post-employment benefits
   (6.7)   (26.7) 
Provisions for liabilities and charges
   (0.6)   (22.4) 
Net assets
   226.6   2,758.6 
Non-controlling
interests
   (5.9)   (19.1) 
Net assets excluding
non-controlling
interests
   220.7   2,739.5 
Consideration received in cash and cash equivalents
   191.3   2,352.1 
Re-investment
in equity stake
1
   —     231.7 
Transaction costs
   (3.8)   (56.1) 
Deferred consideration
2
   14.5   1.6 
Total consideration received
   202.0   2,529.3 
Loss on sale before exchange adjustments
   (18.7)   (210.2) 
Exchange adjustments recycled to the income statement
   15.4   284.0 
(Loss)/gain on sale of discontinued operations
   (3.3)   73.8 
Notes
1
 
Re-investment
in equity stake represents the value of the Group’s 40% stake in the new Kantar group as part of the disposal.
2
 
Deferred consideration in the year ended 31 December 2019 is made up of £79.6 million expected to be received in future periods on the satisfaction of certain conditions and the deferral of £78.0 million consideration against services the Group will supply to Kantar on favourable terms in the future.