At 30, Sorrell's WPP offers more growth

WPP counts more than 70 per cent of the world's 500 largest companies - including Disney, IBM and JPMorgan Chase - among its clients. It continued to outpace rivals in 2015 by venturing into developing economies and investing in digital media, data analytics and technology. It also benefited from consolidation in the advertising industry, which helped it to secure nearly £5.6bn of new business in the period.

The group posted higher underlying net sales in all regions and divisions. They rose 4 per cent in the key North American business, reflecting robust demand for advertising and media management. Growth was also strong in Africa, Latin America and Asian nations such as India and Vietnam. But volatile markets and a tepid economic backdrop weighed on trading in France, Spain and other parts of continental Europe.

The standout division was advertising and media investment management, which houses flagship brands Ogilvy & Mather and GroupM and now accounts for 45 per cent of group turnover. Underlying net sales climbed 4 per cent there as clients clamoured to precisely target and measure campaigns, outweighing a mixed advertising backdrop. But that was tempered by flat sales in the data business, as weak demand for custom research in mature markets offset strong showings from Kantar Worldpanel and Kantar Retail.

Following a strong performance in January, management expects to grow underlying net sales by more than 3 per cent and widen operating margins in 2016. Broker Numis lifted its forecasts and now expects pre-tax profit of £1.8bn, giving EPS of 105p (from £1.63bn and 93.2p in FY2015).