WPP PLC Notional cash pooling and net investment hedging (6266I)
15 Diciembre 2020 - 1:00AM
UK Regulatory
TIDMWPP
RNS Number : 6266I
WPP PLC
14 December 2020
For Immediate Release 14 December 2020
WPP PLC
Notional cash pooling arrangements and net investment hedging in
financial statements
WPP plc ("WPP" or the "Company") announces that certain aspects
of its financial statements for the years ended 31 December 2017,
31 December 2018 and 31 December 2019 were not fully in accordance
with IAS 32 and IAS 39.
-- The presentation of cash and overdrafts within notional cash
pooling arrangements did not meet the requirements for offsetting
in accordance with IAS 32 'Financial Instruments:
Presentation'.
-- Net investment hedging was inappropriately applied against
certain foreign exchange exposures, where the relationship was
either an ineligible hedging relationship under IFRS or
insufficiently documented, such that the criteria to apply hedge
accounting under IAS 39 'Financial Instruments: Recognition and
Measurement' were not met.
The adjustments arising from these items will have no impact on
any of WPP's headline measures, operating profit, net debt, net
assets, net current liabilities or statement of cash flows. Details
of the adjustments can be found in the Form 6-K which the Company
has today (14 December 2020) filed with the U.S. Securities and
Exchange Commission.
It is the Company's intention to change its cash pooling
arrangements during 2021 such that certain cash and overdrafts will
be settled or offset, mitigating the impact of the above in future
periods.
The Company has determined that it is appropriate to restate the
previously issued financial statements included in its Annual
Report on Form 20-F for the year ended 31 December 2019 and its
report on Form 6-K for the six month period ended 30 June 2020,
each of which was filed with the U.S. Securities and Exchange
Commission, to comply with IAS 32 and IAS 39. The Company intends
to present these updated financial statements in an amended Annual
Report on Form 20-F and an amended report on Form 6-K as promptly
as practicable.
A copy of the Form 6-K filed today (14 December 2020) with the
U.S. Securities and Exchange Commission is available at
wpp.com/investors/financial releases and has also been submitted to
the National Storage Mechanism, where it will shortly be available
for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
For further information:
Investor Relations
Peregrine Riviere +44 (0)7909 907193
Buchanan Communications
Richard Oldworth +44 (0)20 7466 5000 / +44 (0)7710 130 634
Forward looking statements
This announcement includes statements and information that
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 (the "Reform
Act"). Forward-looking statements include all statements that are
not historical facts and can be identified by terms such as
"anticipates", "believes", "could", "estimates", "expects",
"intends", "may", "plans", "potential", "predicts", "projects",
"should", "will", "would" or similar expressions. These
forward-looking statements may include, among other things,
statements regarding the Company's expectations with respect to the
nature and amount of any identified errors in its prior financial
statements and the steps the Company intends to take in response
thereto. As such, actual results or outcomes may differ materially
from those discussed in the forward-looking statements. Important
factors that may cause actual results to differ include but are not
limited to discovery of information in addition to or different
from the information on which such estimates and expectations are
based. As a result of these matters, actual results may differ
materially from those expressed or implied in the forward-looking
statements made in the foregoing discussion. Factors that could
affect the Company's actual results include the timing of any
restatement of the affected financial statements, the impact of
such restatement on financing agreements to which members of the
WPP group are party and other material agreements, and the extent
of any weaknesses in the Company's internal control over financial
reporting. In addition, you should consider the risks described in
Item 3D, captioned "Risk Factors", in the Company's Form 20-F for
the year ended 31 December 2019 and any impacts of the COVID-19
pandemic which could also cause actual results to differ from
forward-looking information. In light of these and other
uncertainties, the forward-looking statements included in the oral
or written public statements should not be regarded as a
representation by the Company that the Company's plans and
objectives will be achieved.
Other than in accordance with its legal or regulatory
obligations (including under the Market Abuse Regulation, the UK
Listing Rules and the Disclosure Guidance and Transparency Rules of
the Financial Conduct Authority), the Company undertakes no
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise. The reader
should, however, consult any additional disclosures that the
Company may make in any documents which it publishes and/or files
with the U.S. Securities and Exchange Commission. All readers,
wherever located, should take note of these disclosures.
Accordingly, no assurance can be given that any particular
expectation will be met and shareholders are cautioned not to place
undue reliance on the forward-looking statements.
Any forward-looking statements made by or on behalf of the Group
speak only as of the date they are made and are based upon the
knowledge and information available to the Directors of the Company
at that time.
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