Disposals of subsidiaries

12 Months Ended

Dec. 31, 2024

28. Disposals of subsidiaries

Disposal of FGS Global

On 7 August 2024, the Group announced its intention to dispose of its 50.4% investment in FGS Global ("FGS"). On 2 December 2024, the disposal of FGS to Kite Bidco Inc., an entity controlled by Kohlberg Kravis Roberts & Co. L.P. ("KKR") was completed. Cash consideration of £613 million was received on the completion date. In addition, as part of the disposal agreement, loans owing by FGS to WPP Group entities totalling £93 million were settled. These loans were included as Borrowings in the balance sheet of FGS at disposal and were settled separately to the cash consideration.


			£m
Goodwill			448
Intangible assets			60
Right of use assets			59
Cash and cash equivalents1			93
Trade and other receivables			106
Accrued income			24
Other assets			29
Total assets			819

Borrowings			(93)
Lease liabilities			(74)
Deferred income			(16)
Trade and other payables			(93)
Deferred tax liabilities			(33)
Other liabilities			(3)
Total liabilities			(312)

Net assets			507

Non-controlling interests			(100)
Net assets disposed			407

Consideration received1			613

Gain on disposal before income tax and reclassification of foreign currency translation reserve			206
Reclassification of foreign currency translation reserve			69
Gain on disposal before income tax			275
Income tax expense on gain			(79)
Gain on disposal after income tax			196

Note

1Consideration received less cash and cash equivalents disposed is included within 'Disposals of investments and subsidiaries' in investing activities in the consolidated cash flow statement.

Other Disposals

Proceeds from the disposal of other investments and subsidiaries during the year, less cash and cash equivalents disposed, amounted to £33 million (2023: £99 million), which is included within 'Disposal of investments and subsidiaries' in investing activities in the consolidated cash flow statement.