Ugly day for market after WPP’S slump

Market report Scott Reid

Shares in FTSE 100 advertising heavyweight WPP slumped after the group’s outspoken boss Sir Martin Sorrell admitted that 2017 was “not a pretty year”.

The group posted its first fall in net sales since 2009 – down 0.9 per cent for 2017 – and forecast revenues to remain under pressure this year after a “slow start” to the year.

The world’s biggest advertising agency is now ramping up plans to overhaul the business in a bid to simplify its struc- ture and create a “unified WPP”. Shares closed down 8.2 per cent at 1,280p.

Carpetright saw its share price floored in the wake of its second profits alert since Christmas as the troubles on the high street continue. The group said it had swung to a fullyear loss and begun talks with its lenders to ensure it does not breach the terms of its bank loans.

Trading has remained under pressure, with like-for-like sales still falling despite a small improvement since January. Shares tumbled 22.5 per cent to 60.3p.

The benchmark FTSE 100 closed down 56.27 points or 0.8 per cent at 7,175.64. David Madden, market analyst at CMC Markets UK, said: “The momentum in the market recovery has run out of steam, and now traders are undecided whether the market will turn over on itself again, or if this is a breather before another leg higher.” Despite some London woes, the attractions group reported overall growth in revenue, profit and cash flow, while flagging record visitor numbers. The firm warned it is set to swing to a full-year loss and said it has started talks with its lenders as the woes in the retail sector show no sign of letting up.