Advertising giant WPP is likely to expand faster into the rest of Europe following the UK vote for a Brexit.
Sir Martin Sorrell, the chief executive of WPP and Remain campaigner, also expects his company to experience a short-term boost from Brexit.
“We’re not planning to cut British jobs because of Brexit, but we are likely to increase the number of people we employ in key European markets faster than we do in the UK,” he wrote in the Sunday Telegraph.
On the benefits of Brexit for WPP, he said: “Ninety per cent of our business is outside the UK, so while the fall in sterling will hurt us locally, our natural currency hedge will more than balance that effect, with a net positive impact on revenues, if not market capitalisation. Our strategic reaction to Brexit is essentially to pursue our current approach even more vigorously than before.
“That means a greater focus on the fast-growth markets (so-called ‘emerging’ economies); a greater focus on data and digital; and (another irony) a greater focus on getting our people to work together more effectively across national and functional boundaries for the benefit of our clients.”
1 July 2016 @ 4:30pmWPP (WPP)
In common with many other companies on the FTSE 100, WPP has been on a stock market rollercoaster ride since the Brexit vote.
Closing at 1,590p on the day of the referendum, its share price fell seven per cent to 1,476p the following Monday. But by the end of last week, it was up 10.4 per cent to 1,630p.