Advertising giant WPP said revenues fell 4 per cent to £3.6bn in the first quarter, in its first trading update since the shock departure of founder Sir Martin Sorrell.
Sir Martin, one of the UK’s best-known - and highest-paid - chief executives - left this month amid allegations of “personal misconduct” after 33 years leading the firm.
WPP said on Monday that after removing exchange rate movements, revenues were up 2 per cent and like-for-like revenues had edged up 0.8 per cent. It also billed for $1.7bn (£1.3bn) of new business in the first quarter.
Analysts have speculated that the sprawling group of companies could break up now that Sir Martin is no longer at the helm.
Some investors believe WPP would be significantly more valuable as the sum of its parts than as a collection of firms under one umbrella.
The company's new bosses said they would not pursue a full break-up but did not rule out selling off businesses.
The chief executive of one of the group's companies, data and market research firm Kantar, is alleged to be in talks with backers over a potential £3.5bn buyout.
WPP’s share price jumped almost 7 per cent in morning trading.
Mark Read and Andrew Scott, WPP’s joint chief operating officers, sought to allay fears that WPP would be damaged by Sir Martin’s departure.
“In the last two weeks we have focused on spending time with our clients and people, and the response has been very encouraging,” they said.
“As expected, our people are getting on with business as usual, and our clients have expressed their continued support for and confidence in WPP.
The pair added that the group’s companies “have their own strong leaders, who hold the primary client relationships”.
“Clients have made it very clear that they value their partners within WPP."
Sir Martin left after an allegation of the improper use of company funds, which he denied “unreservedly”.
The company said in a statement after his departure that it had investigated the allegation and that it “did not involve amounts that are material”.
The Independent understands Sir Martin’s departure was prompted by the manner in which the investigation was handled, rather than the inquiry itself.
The WPP boss is said to have felt ambushed by solicitors from WilmerHale law firm who were called in to handle the matter, and frustrated by the leaks to various media outlets, which he believes must have come from the company board.
The market is divided on what the future holds for WPP following Sir Martin’s fairwell.
