Document

Certain Non-GAAP measures included in this business overview and in the operating and financial review and prospects have been derived from amounts calculated in accordance with IFRS but are not themselves IFRS measures. They should not be viewed in isolation as alternatives to the equivalent IFRS measure, rather they should be read in conjunction with the equivalent IFRS measure. These include constant currency, like-for-like ("LFL"), headline operating profit, headline operating profit margin, headline PBIT (Profit Before Interest and Taxation), headline PBT (Profit Before Taxation), revenue less pass-through costs, adjusted operating cash flow, adjusted free cash flow, adjusted net cash flow, adjusted net debt and average adjusted net debt, share of profit before interest and taxation of associates, share of adjusting items of associates, share of interest and non-controlling interests of associates, and share of taxation of associates, which we define, explain the use of and reconcile to the nearest IFRS measures as relevant. Refer to the Non-GAAP information section of Exhibit 1 of this Form 6-K.

Management believes that these measures are both useful and necessary to present herein because they are used by management for internal performance analyses; the presentation of these measures facilitates comparability with other companies, although management’s measures may not be calculated in the same way as similarly titled measures reported by other companies; and these measures are useful in connection with discussions with the investment community.

The exclusion of certain adjusting items may result in headline measures being materially higher or lower than reported earnings, for example when significant impairments or restructuring charges are excluded but the related benefits are included within headline measures. Headline measures should not be considered in isolation as they provide additional information to aid the understanding of the Group’s financial performance.

The Group has had a challenging first half given the pressures on client spending and slower new business environment. However, we have made significant progress on the repositioning of WPP Media, simplifying its organisational model to reduce costs and increase effectiveness. Meanwhile, the acquisition of InfoSum, the launch of Open Intelligence and the continued adoption of WPP Open all strengthen our data and technology capabilities.

The Board is declaring an interim dividend of 7.5p ahead of a review of the strategy and future capital allocation policy. The priority is to drive sustainable growth supported by an appropriate level of financial flexibility while balancing returns to shareholders.

WPP has enormous strengths in creativity and media, technology and AI, talented people, deep client relationships and unmatched global reach. Our continued investment in AI is expected to be a key benefit to our clients and our people in the future.

WPP Media’s performance during the course of the first half reflects the continued impact of client losses and a challenging macro environment. During the second quarter, however, we have seen significant progress on the implementation of the plan laid out by Brian Lesser at the preliminary results announcement in February. Operationally, with the launch of Open Intelligence and supported by the acquisition of InfoSum, WPP Media is well advanced on its plan to create the next generation of AI-enhanced data and marketing solutions for clients, delivered through the industry’s most powerful and secure infrastructure. In addition, action taken in the second quarter to make WPP Media’s organisational model more client-centric gives greater flexibility for reinvestment and allows us to focus our resources on continuing to improve our competitive proposition and on our client success.

AI, data and technology are central to the way we serve our clients and continues to drive increased scope of work with existing clients. It is also supporting our new business activity. Usage of WPP Open continues to grow, with c.85% of our client-facing staff using the platform in June (up from c.60% in March).

Amid lower levels of activity at a market level, H1 wins include Electronic Arts, Hisense and Hero Motocorp in Media, L’Oréal and Samsung in Influencer, TK Maxx and Honda in PR and Generali, IKEA and Heineken in Creative/Commerce.

In addition to the annualisation of structural cost savings and a continued focus on back-office efficiency, we are also taking a proactive approach to managing our flexible cost base. Headcount since the start of the year was down 3.7%, broadly in line with the like-for-like (LFL) revenue decline and we expect the severance action taken in the second quarter alone to generate £150m+ of annualised gross cost savings from 2026. We continue to prioritise investment in WPP Open, AI and data, including the integration of new AI tools into WPP Open, driving day-to-day productivity improvements for our people.

Revenue was down by 7.8% at £6,663m in the first half of 2025, compared to £7,227m in the first half of 2024. Net changes from acquisitions and disposals had a negative impact of 3.0% on growth, leading to a like-for-like performance, excluding the impact of currency and acquisitions, of -2.4%. In the second quarter, revenue was down 10.4% (Q1 2025: -5.0%) and like-for-like revenue was down 4.0% (Q1 2025: -0.7%) primarily as a result of macro uncertainty weighing heavily on client spend.

Costs of services decreased by 5.8% in the first half of 2025 to £5,826m from £6,187m in the first half of 2024. General and administrative costs decreased by 0.2% in the first half of 2025 to £616m from £617m in the first half of 2024.

Reported operating profit was £221m (H1 2024: £423m) at a reported operating profit margin of 3.3% (H1 2024: 5.9%) with the decrease primarily due to the factors detailed above. Reported operating profit includes goodwill impairment charges of £116m (H1 2024: £nil), amortisation and impairment of acquired intangible assets of £32m (H1 2024: £57m) and restructuring costs of £45m (H1 2024: £153m). The prior period also included £23m of impairment of investments in associates.

Staff costs of £3,685m were down 7.5% compared to the prior period (H1 2024: £3,985m), representing lower headcount as a result of the actions we have taken to mitigate the top-line decline in H1, lower incentives and our restructuring initiatives, which has more than offset wage inflation and severance costs in the period, which were £86m (H1 2024: £36m).

Establishment costs of £219m were down 9.5% compared to the prior period (H1 2024: £242m) driven by the ongoing benefits from the campus programme and consolidation of leases, the benefit from the prior year FGS disposal in H2 2024 and a favourable FX impact. IT costs of £340m were broadly flat supported by our continuing investment in WPP Open, AI and data. Personal costs of £98m were down 4.9% driven by savings in travel and entertainment, and other operating expenses of £272m were down 3.5%, driven by lower commercial and office costs.

Net finance costs, defined as finance and investment income less finance cost (including the revaluation and retranslation of financial instruments), were £140m (H1 2024: £101m), including net expense of £11m (H1 2024: net income £35m) relating to the revaluation and retranslation of financial instruments.

The effective tax rate was 28.6% (H1 2024: 27.2%). The net increase in the tax rate is primarily driven by non-deductible goodwill impairment which has been partially offset by the benefit of credits from the successful resolution of a tax matter.

The following tables give details of revenue and revenue less pass-through costs by reportable segment, as well as applicable percentage changes from the corresponding prior year periods, for the second quarter and first half of 2025. Headline operating profit and headline operating profit margin by reportable segment for the first half of 2025 are also provided below.


	Three months ended 30 June 2025	Reported change three months ended 30 June 2025		Like-for-like change three months ended 30 June 2025		Six months ended 30 June 2025	Reported change six months ended 30 June 2025		Like-for-like change six months ended 30 June 2025
	£m	%		%		£m	%		%
Global Integrated Agencies	3,024	(6.6)	%	(3.9)	%	5,871	(4.0)	%	(2.2)	%
Public Relations	176	(43.4)	%	(9.3)	%	351	(41.6)	%	(7.8)	%
Specialist Agencies	220	(17.3)	%	(0.5)	%	441	(13.4)	%	(0.5)	%
Total Group	3,420	(10.4)	%	(4.0)	%	6,663	(7.8)	%	(2.4)	%


	Three months ended 30 June 2025	Reported change three months ended 30 June 2025		Like-for-like change three months ended 30 June 2025		Six months ended 30 June 2025	Reported change six months ended 30 June 2025		Like-for-like change six months ended 30 June 2025
	£m	%		%		£m	%		%
Global Integrated Agencies	2,183	(8.7)	%	(6.0)	%	4,302	(6.4)	%	(4.5)	%
Public Relations	168	(42.7)	%	(7.8)	%	335	(41.0)	%	(7.2)	%
Specialist Agencies	193	(15.0)	%	(1.9)	%	389	(10.8)	%	(0.4)	%

1Revenue less pass-through costs is revenue less media and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media costs. See note 3 to the Company's unaudited condensed consolidated interim financial statements, which appears in Exhibit 2, for more details of the pass-through costs.


	Headline operating profit six months ended 30 June 2025	Headline operating profit margin1 six months ended 30 June 2025		Headline operating profit six months ended 30 June 2024	Headline operating profit margin1 six months ended 30 June 2024
	£m	%		£m	%
Global Integrated Agencies	352	8.2	%	551	12.0	%
Public Relations	39	11.6	%	80	14.1	%
Specialist Agencies	21	5.4	%	15	3.4	%
Total Group	412	8.2	%	646	11.5	%

Global Integrated Agencies: WPP Media saw a LFL decline in revenue less pass-through costs of 2.9% in H1 (Q2: -4.7%) impacted by cuts in client spending as well as the impact of one-off factors in Q2. Cuts to client spending and lower net new business, including the ramping down of a Q1 client loss particularly weighed on Q2 LFL.

Other Global Integrated Agencies declined 5.8% (Q2: -7.2%) as a result of lower overall client spending, particularly at Ogilvy which declined high single digits in the first half. There was also continuing pressure on project-based work which weighed on our agencies, albeit both AKQA and Grey saw a slight sequential quarterly improvement on easier comparisons. VML and Hogarth performed relatively better in the first half (down low single-digits and broadly flat, respectively), benefiting from recent new business wins.

Public Relations: In Q2, Burson saw a broadly similar trend to Q1 with LFL revenue less pass-through costs down mid to high single digit as the business continued to face a challenging environment for client discretionary spending, in particular in Europe. We are however encouraged by improved new business momentum in H1, in particular in the US.

Specialist Agencies: Overall, Specialist Agencies was broadly flat, with H1 LFL revenue less pass-through costs declining 0.4%, with a Q2 decline of 1.9%. Landor and a number of our smaller specialist agencies, continued to be affected by the macro environment and further delays in project-based spending, particularly in Q2. However, CMI Media Group, our specialist healthcare media planning and buying agency, continued to grow strongly in H1, building on double-digit growth in 2024. Encouragingly, Design Bridge and Partners returned to growth in Q2.

The following tables give details of revenue and revenue less pass-through costs by region, as well as applicable percentage changes from the corresponding prior year periods, for the second quarter and first half of 2025. Headline operating profit by region is provided in note 3 of Exhibit 2.


	Three months ended 30 June 2025	Reported change three months ended 30 June 2025		Like-for-like change three months ended 30 June 2025		Six months ended 30 June 2025	Reported change six months ended 30 June 2025		Like-for-like change six months ended 30 June 2025
	£m	%		%		£m	%		%
N. America	1,279	(12.8)	%	(2.8)	%	2,537	(8.8)	%	(1.1)	%
United Kingdom	517	(5.0)	%	(6.6)	%	1,011	(4.4)	%	(6.2)	%
W. Cont. Europe	713	(6.4)	%	(1.1)	%	1,351	(7.3)	%	(1.0)	%
AP, LA, AME, CEE1	911	(12.6)	%	(6.2)	%	1,764	(8.6)	%	(3.1)	%
Total Group	3,420	(10.4)	%	(4.0)	%	6,663	(7.8)	%	(2.4)	%


	Three months ended 30 June 2025	Reported change three months ended 30 June 2025		Like-for-like change three months ended 30 June 2025		Six months ended 30 June 2025	Reported change six months ended 30 June 2025		Like-for-like change six months ended 30 June 2025
	£m	%		%		£m	%		%
N. America	974	(15.5)	%	(4.6)	%	1,966	(10.9)	%	(2.4)	%
United Kingdom	381	(3.8)	%	(6.5)	%	749	(3.9)	%	(6.0)	%
W. Cont. Europe	534	(12.2)	%	(6.5)	%	1,021	(12.3)	%	(5.5)	%
AP, LA, AME, CEE2	655	(13.4)	%	(6.8)	%	1,290	(11.0)	%	(5.4)	%

North America declined by 2.4% in H1 2025, driven by a Q2 decline of 4.6% reflecting a quarter-on-quarter deterioration against a tougher Q2 comparison (Q2 2024: +2.0%) and the ramp down of a Q1 client loss. This was partially offset by a resumption of growth in Healthcare and a robust performance in Government. VML saw broadly flat H1 growth, while Ogilvy and AKQA suffered cuts in client spend.

The United Kingdom declined 6.0% in H1 2025, with Q2 seeing a 6.5% decline despite an easing comparison (Q2 2024: -5.3%). Ogilvy grew in H1 benefiting from new business, offset by declines in other agencies. The UK saw pressure in Telecom, Media & Entertainment, reflecting client losses.

Western Continental Europe also remained weak against an easier comparison, down 5.5% in H1 2025 and 6.5% in Q2. France and Italy saw mid-to-high single-digit declines, reflecting the continuing impact of macroeconomic pressures weighing on client spending and the impact of one-off factors. Germany declined 3.2% in H1, however with a sequential improvement in trend (Q2: -1.6%).

Rest of World declined 5.4% in H1. India remained flat (+0.1%) against a tough comparison (H1 2024: +8.1%), impacted by the timing of sporting events, but this was offset by a decline of 16.6% in China on client assignment losses and persistent macroeconomic pressures. There were also declines in Latin America (-2.7%) and Middle East & Africa (-2.6%). Central & Eastern Europe, meanwhile, continued to grow (+2.2%).

In the first half of 2025, operating profit was £221 million (H1 2024: £423 million), depreciation and amortisation was £235 million (H1 2024: £262 million), impairment charges included within adjusting items were £5 million (H1 2024: £4 million), non-cash share-based incentive charges were £41 million (H1 2024: £56 million), goodwill impairment was £116 million (H1 2024: nil), impairment of investments in associates were nil (H1 2024: £23 million), contingent consideration liability payments were £15 million (H1 2024: £25 million), working capital and provisions outflow was £1,348 million (H1 2024: £1,056 million), net interest paid was £93 million (H1 2024: £49 million), tax paid was £168 million (H1 2024: £168 million), principal and interest elements of lease repayments were £170 million (H1 2024: £187 million), capital expenditure was £88 million (H1 2024: £107 million) and other net cash outflows were £8 million (H1 2024: £21 million). Adjusted free cash flow was, therefore, an outflow of £1,272 million (H1 2024: £845 million).

Adjusted operating cash outflow was £985 million (H1 2024: £587 million). The main drivers of the larger cash outflow year on year was the decrease in headline operating profit and a larger working capital outflow, £292 million higher than the prior period, which was partially offset by a decrease in non-headline cash costs to £35 million (H1 2024: £144 million). Working capital was a net outflow of £1,348m (H1 2024: £1,056m) and reflects the usual seasonality of client activity and timing of payments. Non-headline cash items includes £40m of cash restructuring and transformation costs offset by £5m of investment income received. The decrease from the prior period is driven by the ramp down of the previously announced structural cost saving programs and lower spend on our IT transformation.

Adjusted free cash outflow was £1,272 million, higher than prior period (H1 2024: £845 million) due to the higher adjusted operating cash outflow and higher net interest payments. Adjusted net cash outflow of £1,491 million was higher than the prior period (H1 2024: £898 million) due to higher net initial acquisition payments, mainly for the InfoSum acquisition, and higher share purchases compared to the prior period.

Current assets of £11,851m decreased by £1,810m (31 December 2024: £13,661m). The decrease principally relates to a decrease in cash and cash equivalents of £1,201m, and trade and other receivables which decreased by £356m to £7,366m.

Current liabilities of £13,760m decreased by £1,756m (31 December 2024: £15,516m). The decrease principally relates to trade and other payables which decreased by £1,989m, partially offset by a net increase in current borrowings of £352m. The increase in current borrowings is due to an increase in short-term financing offset by the repayment of €500m of 1.375% bonds which matured March 2025.

Recognised within total equity, other comprehensive loss of £304m (H1 2024: £62m loss) for the period includes a £359m loss (H1 2024: £37m loss) for foreign exchange differences on translation of foreign operations, and an £88m gain (H1 2024: £18m loss) on the Group’s net investment hedges.

As at 30 June 2025, WPP Finance 2010 had in issue $93 million ($28 million was repaid in 2018 and $179 million was repaid in 2019 from the $300 million initially issued) of 5.125% bonds due September 2042 with WPP plc as parent guarantor and WPP Air 1 Limited, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited and WPP Jubilee Limited as subsidiary guarantors.

In the event that WPP Finance 2010 fails to pay the holders of the securities, thereby requiring WPP plc, WPP Air 1 Limited, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited or WPP Jubilee Limited to make payment pursuant to the terms of their full and unconditional, and joint and several guarantee of those securities, there is no impediment to WPP plc, WPP Air 1 Limited, WPP 2008 Limited, WPP 2005 Limited, WPP 2012 Limited or WPP Jubilee Limited obtaining reimbursement for any such payments from WPP Finance 2010.


	For the six months ended 30 June 2025	For the year ended 31 December 2024
	£m	£m
Revenue	—	—
Costs of services	—	—
Gross profit	—	—
Administrative income due from non-guarantors	120	223
Earnings from associates - after interest and tax	—	—
Finance and investment income from non-guarantors	105	237
Finance costs to non-guarantors	(372)	(779)
Loss for the period	(187)	(706)


	At 30 June 2025	At 31 December 2024
	£m	£m
Non-current assets (excluding amounts due from Non-Guarantors)	390	396

Current assets (excluding amounts due from Non-Guarantors)	84	72
Current liabilities (excluding amounts due to Non-Guarantors)	(105)	(153)
Non-Current liabilities (excluding amounts due to Non-Guarantors)	(447)	(479)
Payables due to Non-Guarantors1	(10,058)	(9,840)

Note

As at 30 June 2025, WPP Finance 2010 had in issue $220 million ($50 million was repaid in 2018 and $230 million was repaid in 2019 from the $500 million initially issued) of 5.625% bonds due November 2043, with WPP plc as parent guarantor and WPP Jubilee Limited and WPP 2005 Limited as subsidiary guarantors.

In the event that WPP Finance 2010 fails to pay the holders of the securities, thereby requiring WPP plc, WPP Jubilee Limited or WPP 2005 Limited to make payment pursuant to the terms of their full and unconditional, and joint and several guarantee of those securities, there is no impediment to WPP plc, WPP Jubilee Limited or WPP 2005 Limited obtaining reimbursement for any such payments from WPP Finance 2010.


	For the six months ended 30 June 2025	For the year ended 31 December 2024
	£m	£m
Revenue	—	—
Costs of services	—	—
Gross profit	—	—
Administrative income due from non-guarantors	120	223
Earnings from associates - after interest and tax	—	—
Finance and investment income from non-guarantors	105	237
Finance costs to non-guarantors	(372)	(779)
Loss for the period	(187)	(706)


	At 30 June 2025	At 31 December 2024
	£m	£m
Non-current assets (excluding amounts due from Non-Guarantors)	390	396

Current assets (excluding amounts due from Non-Guarantors)	84	72
Current liabilities (excluding amounts due to Non-Guarantors)	(105)	(153)
Non-Current liabilities (excluding amounts due to Non-Guarantors)	(447)	(479)
Payables due to Non-Guarantors1	(10,058)	(9,840)

Note

The issuer and guarantors of the bonds (the issuer and subsidiary guarantors are 100% owned by WPP plc) are consolidated subsidiaries of WPP plc and are each subject to the reporting requirements under section 15(d) of the Securities Exchange Act of 1934. The summarised financial information for WPP Finance 2010 and the guarantors is presented on a combined basis with intercompany balances and transactions between the entities in the issuer and guarantors group eliminated. The Group has applied the recognition and measurement principles of IFRS as issued by the IASB in preparing the summarised financial information and is intended to provide investors with meaningful financial information, and is provided pursuant to Rule 13-01 of Regulation S-X which allows for alternative financial disclosures or narrative disclosures in lieu of the separate financial statements of WPP Finance 2010 and the guarantors. The financial information presented is that of the issuers and guarantors of the guaranteed security, and the financial information of non-issuer and non-guarantor subsidiaries has been excluded.

The Group presents alternative performance measures, including constant currency, like-for-like, headline operating profit, headline operating profit margin, headline profit before interest and tax, headline profit before tax, revenue less pass-through costs, adjusted net debt and average adjusted net debt, adjusted operating cash flow, adjusted free cash flow, adjusted net cash flow, share of profit before interest and taxation of associates, share of adjusting items of associates, share of interest and non-controlling interests of associates, and share of taxation of associates. They are used by management for internal performance analyses. The presentation of these measures facilitates comparability with other companies, although management’s measures may not be calculated in the same way as similarly titled measures reported by other companies, and these measures are useful in connection with discussions with the investment community.

These condensed consolidated interim financial statements are presented in pounds sterling. However, the Group’s significant international operations give rise to fluctuations in foreign exchange rates. To neutralise foreign exchange impact and illustrate the underlying change in revenue and profit from one period to the next, the Group has adopted the practice of discussing results in both reportable currency (local currency results translated into pounds sterling at the prevailing foreign exchange rate) and constant currency.

The Group uses US dollar-based, constant currency models to measure performance across all jurisdictions. These are calculated by applying budgeted 2025 exchange rates to local currency reported results for the current and prior year which excludes any variances attributable to foreign exchange rate movements.

Like-for-like comparisons are calculated as follows: current year, constant currency actual results (which include acquisitions from the relevant date of completion) are compared with prior year, constant currency actual results, adjusted to include the results of acquisitions and disposals.

The following table reconciles reported revenue growth for the three and six months ended 30 June 2025 and 2024, including like-for-like revenue growth for the same periods.


	Revenue	Three months ended 30 June		Revenue	Six months ended 30 June
	£m	%		£m	%
2024 Reported	3,815			7,227
Impact of exchange rate changes	(135)	(3.6)	%	(175)	(2.4)	%
Impact of acquisitions and disposals	(107)	(2.8)	%	(214)	(3.0)	%
Like-for-like growth	(153)	(4.0)	%	(175)	(2.4)	%
2025 Reported	3,420	(10.4)	%	6,663	(7.8)	%

Headline operating profit is calculated as operating profit before gains/losses on disposal of investments and subsidiaries, gains/losses on disposal of property, other impairment charges, goodwill impairment, impairment of investments in associates, amortisation and impairment of acquired intangible assets, restructuring and transformation costs, property-related restructuring costs other transaction costs, and other legal provision charges/gains.

Adjustments to operating profit described above are included in costs of services and general administrative costs as provided in note 2 of the unaudited condensed consolidated interim financial statements, which appears in Exhibit 2, and are components of operating profit.

gains/losses on disposal of property, other impairment charges, goodwill impairment, impairment of investments in associates, amortisation and impairment of acquired intangible assets, restructuring and transformation costs, property-related restructuring costs, other transaction costs, and legal provision charge/(gains) and share of adjusting and other items for associates.


	Six months ended 30 June 2025	Six months ended 30 June 2024
	£m	£m
Profit before taxation	98	338
Finance and investment income	(49)	(74)
Finance costs	178	210
Revaluation and retranslation of financial instruments	11	(35)
Profit before interest and taxation	238	439
Goodwill impairment	116	—
Impairment of investments in associates	—	23
Amortisation and impairment of acquired intangible assets	32	57
Restructuring and transformation costs	32	131
Property-related restructuring costs1	13	22
Gains on disposal of investments and subsidiaries	(2)	(8)
Gains on disposal of property	—	(2)
Share of adjusting items of associates	—	(1)
Headline PBIT	429	661

intangible assets, other impairment charges, restructuring and transformation costs, property-related restructuring costs, other transaction costs, and legal provision charges/(gains), share of adjusting and other items for associates, and revaluation and retranslation of financial instruments.


	Six months ended 30 June 2025	Six months ended 30 June 2024
	£m	£m
Profit before taxation	98	338
Goodwill impairment	116	—
Impairment of investments in associates	—	23
Amortisation and impairment of acquired intangible assets	32	57
Restructuring and transformation costs	32	131
Property-related restructuring costs	13	22
Gains on disposal of investments and subsidiaries	(2)	(8)
Gains on disposal of property	—	(2)
Share of adjusting and other items of associates	—	(1)
Revaluation and retranslation of financial instruments	11	(35)
Headline PBT	300	525

Management believes adjusted operating cash flow is a target that can be translated into targets for operating business units that do not have direct control of items which influence adjusted free cash flow, such as the Group effective tax rate and leverage; and is meaningful to investors as a measure of the degree to which headline operating profit is converted into cash after the cost of leased operating assets, investment in capital expenditure, and working capital.

Adjusted operating cash flow is calculated as cash used in/generated by operations plus investment income received, and share option proceeds, less repayment of lease liabilities, interest paid on lease liabilities, and purchases of property, plant and equipment and purchases of intangible assets.

Adjusted free cash flow is calculated as cash used in/generated by operations plus dividends received from associates, interest received, investment income received, and share option proceeds, less corporation and overseas tax paid, interest and similar charges paid, dividends paid to non-controlling interests in subsidiary undertakings, repayment of lease liabilities, interest paid on lease liabilities, contingent consideration liability payments and purchases of property, plant and equipment and purchases of intangible assets.

Adjusted net cash flow is meaningful to investors because it is the measure of the Group’s funds available for debt repayment or to increase cash on hand after acquisition related payments, dividends to shareholders and share repurchases. The purpose of presenting adjusted net cash flow is to indicate the ongoing cash generation within the control of the Group after taking account of the necessary cash expenditures of maintaining the capital and operating structure of the Group (in the form of payments of interest, corporate taxation, and capital expenditure) and after acquisitions, dividend payments to shareholders and share repurchases.


	Six months ended 30 June 2025	Six months ended 30 June 2024
	£m	£m
Net cash outflow from operating activities	(1,036)	(540)
Corporation and overseas tax paid	168	168
Interest paid on lease liabilities	50	47
Other interest and similar charges paid	117	118
Interest received	(24)	(69)
Investment income	(5)	(5)
Dividends from associates	(15)	(18)
Contingent consideration liability payments recognised in operating activities	13	1
Cash used by operations	(732)	(298)

Purchase of property, plant and equipment	(42)	(82)
Purchase of intangible assets	(46)	(25)
Repayment of lease liabilities	(120)	(140)
Interest paid on lease liabilities	(50)	(47)
Investment income	5	5
Adjusted operating cash flow	(985)	(587)
Corporation and overseas tax paid	(168)	(168)
Interest and similar charges paid	(117)	(118)
Interest received	24	69
Dividends from associates	15	18
Contingent consideration liability payments	(15)	(25)
Dividends paid to non-controlling interests in subsidiary undertakings	(26)	(34)
Adjusted free cash flow	(1,272)	(845)
Net disposal proceeds	6	33
Net initial acquisition payments	(133)	(29)
Share purchases	(92)	(57)
Adjusted net cash flow	(1,491)	(898)

Management believes that adjusted net debt and average adjusted net debt are appropriate and meaningful measures of the debt levels within the Company. Adjusted net debt at a period end is defined as cash and cash equivalents, bank overdrafts and borrowings due within one year, borrowings due after one year and derivative financial instruments hedging debt items. The definition of adjusted net debt has been updated to include the impact of derivative financial instruments that hedge debt items as management believes this provides a more accurate representation of the adjusted net debt levels of the Group.


£ million	30 June 2025	31 December 2024	30 June 2024
Cash and cash equivalents	1,437	2,638	2,128
Borrowings due within one year	(936)	(584)	(1,201)
Borrowings due after one year	(3,845)	(3,744)	(4,298)
Derivative financial instruments	83	(52)	(55)
Adjusted net debt1	(3,261)	(1,742)	(3,426)
Average adjusted net debt1	(3,383)	(3,506)	(3,633)

Adjusted net debt excludes lease liabilities. Average adjusted net debt is calculated as the average of the Group’s monthly adjusted net debt. Average adjusted net debt for 30 June 2025 and 30 June 2024 represents the average for the twelve month period ended 30 June 2025 and 30 June 2024 respectively. Average adjusted net debt for 31 December 2024 represents the average for the twelve month period ended 31 December 2024.

Management reviews the earnings from associates by assessing the underlying component movements including share of profit before interest and taxation of associates, share of adjusting items of associates, share of interest and non-controlling interests of associates, and share of taxation of associates, which are derived from the income statements of the associate undertakings. Management applies consistent principles in determining items adjusted from headline profit as with subsidiaries.


	Six months ended 30 June 2025	Six months ended 30 June 2024
	£m	£m
Share of profit before interest and taxation	19	18
Share of adjusting and other items of associates	—	1
Share of interest and non-controlling interests	3	2
Share of taxation	(5)	(5)
Earnings from associates	17	16