WPP YESTERDAY cancelled its dividend and share buyback and suspended its guidance for 2020, as the coronavirus pandemic forces a growing number of the advertising giant's clients to cancel work.

The world's biggest advertising company said it had launched a cost-cutting drive in response to the outbreak, identifying £800m of savings that can be made for 2020, including cutting executive pay and reducing capital expenditure.

WPP said it was producing health campaigns for governments and clients around the world, including a Whatsapp information service in the UK.

However other clients are pulling campaigns as the outbreak dents advertising demand and with no certainty about how long the downturn will last, WPP said there was "significant uncertainty" over its immediate outlook.

The advertising giant has already cut debt and raised cash as part of a three-year turnaround plan.

Shares rose 6.9 per cent yesterday to 551.40p.

(c) 2020 City A.M., source Newspaper