Building on the transformation programme’s Phase One that was delivered during 2023 and 2024, the Company has not only delivered Phase Two (middle-office functions, e.g. production), but has also completed a number of other strategic objectives, including M&A activity with two small acquisitions. In light of the macro difficulties and geopolitical volatility that have been prevalent across a multitude of markets this year, the Company has engaged in restructuring initiatives to reduce the cost base, with responsive actions particularly targeting Advertising and Consulting in Australia to improve profitability and reshape the business. Alongside completion of Phase Two of the transformation programme, the Group has successfully united behind Cultural Power, our proposition for understanding the forces which drive purchasing behaviour and brand growth for our clients. This has been deployed in tandem with our data-led and AI-driven Cultural Power Index, which helps our clients to navigate a fragmented consumer and channel landscape. Moreover, we have further reduced put option liabilities, lowering the future cash settlements required. This, combined with greater financial discipline, has strengthened our balance sheet and our cash profile. There is always more to do, but these are strong foundations upon which we will continue to build.
The potential and intrinsic value of the Company’s high-margin growth businesses is not reflected in our market capitalisation, and our strategic focus is to simplify businesses and clarify the opportunities which should unlock the value for shareholders. Our broad range of expertise and our connected specialist capabilities are increasingly supported by data-driven insights, data-driven systems and AI-powered processes. Our unique positioning across both government (public) and commercial (private) sectors drive our deep understanding of our clients’ businesses, supported by data-backed consumer insights. Uniting behind our Cultural Power proposition, we have the capability to change behaviours, build influential brands and deliver business solutions for our clients.
Our Business Model
trusted and famous brand and deep insights derived from our broad range of integrated expertise that stretches across public and private sectors. We offer high-quality creative output across a breadth of marketing services, supported by our Intelligence Insight team who deliver combined data and AI solutions. Our work with clients covers both strategic planning and the creation and execution of their marketing plans, from measurement to evaluation.
Through our “two-door” approach, where clients will opt for an integrated solution to solve a wider challenge or opt for help with a specific specialist need, our Consultancy, Advertising, Passions & PR, and Media Specialisms reflect the breadth of our capabilities and can flex to the different stages of a client’s marketing journey, largely within the private or “Commercial” sector. Our Issues Specialism offers the full span of services, but focuses on the specific demands of largely public sector, or “Citizen” sector, clients. Critically, our expertise across these two broad sectors allows
for cross-fertilisation of business and ideas as well as the generation of deep consumer insights. Meanwhile our newly integrated operating model (replacing the previous federated model) allows the Group to engage more than ever before with clients across a range of Specialisms in the marketing chain, enabling cross-sell opportunities.