truefalseMartin Hviid SaxtorphÅrsrapport25578198KPMGDampfærgevej 282100 København Ø2024-01-012024-12-312023-01-012023-12-312025-04-302025-04-3025137205AdPeople A/SVibevej 262400Copenhagen NVDKDenmarkCopenhagenPricewaterhouseCooper33771231Flemming Eghoffmne30221Statsautoriseret RevisionspartnerselskabStrandvejen442900HellerupDenmarkPricewaterhouseCooper33771231Kaare von Cappelnmne11629Statsautoriseret RevisionspartnerselskabStrandvejen442900HellerupDenmark2025-04-30Regnskabsklasse C, mellemstor virksomhedfalsefalseRevisionspåtegningThe Board of Directors and the Executive Board have today discussed and approved the annual report of AdPeople A/S for the financial year 1 January – 31 December 2024.The annual report has been prepared in accordance with the Danish Financial Statements Act.We recommend that the annual report be approved at the annual general meeting.Copenhagen,Martin Hviid SaxtorphChristopher John MyersManuel Segimon de ManzanosChairmanMartin Hviid SaxtorphBalraj Singh MannTo the Shareholders of AdPeople A/SOpinionBasis for OpinionWe conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the “Auditor’s responsibilities for the audit of the Financial Statements” section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Copenhagen,93003000820570006831900057330000484120003708500027955000219370002337000022295000994500089440006962000694500067910003731000030209000229760002422900023682000126749000131815000114285000122613000119864000705580005824800053039000800630008083400051200054500019890001465000263600057.954.334.530.134.355.744.246.465.367.4108110967254Market risks The Company is not exposed to special risks except for normal risks within the industry. The Company is increasingly exposed towards currency risk regarding USD. To the extent possible, the Company takes this into consideration when negotiating terms in agreements etc. The Company has not entered into any contracts.93003000820570005489800053041000101500010610005000037085000279550005369000647000033250003244000650007700004571400036899000840400066900003731000030209000137300019620004060003250001779000228700058800058800023670002875000152180001324100084814000105520000233510008263000141000230000257000202000013040006010001800001243820001289400001243820001289400001267490001318150005180005180003504000032730000350000002500000070558000582480002114200044002000279900098470002357900014111000582000080890005607000561910007356700056191000735670001267490001318150005180003273000025000000002500000002310000350000005180003504000035000000108110350000002500000023100005209000Control Related party transactions AdPeople A/S' related parties comprise the following: Russel Square Holding B.V., Wilhelminaplein 10, 3072 DE Rotterdam, Netherlands. Russel Square Holding B.V. holds the majority of the contributed capital in the Company. AdPeople A/S is part of the consolidated financial statements of WPP Jubilee Limited, 18 Upper Ground, SE1 9GL, London, England, and the consolidated financial statements of WPP Plc., 13 Castle Street, St. Helier, JE1 1ES, Jersey, England, which is the smallest and largest group, respectively, in which the Company is included as a subsidiary. The consolidated financial statements of WPP Jubilee Limited can be obtained by contacting the Company at the address above. The consolidated financial statements of WPP Plc. can be obtained at the following adress: www.wppinvestor.com. In accordance with section 98 c(7) of the Danish Financial Statements Act, the Company has not disclosed any related party transactions as they were conducted on an arm's length basis.In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2024 and of the results of the Company's operations for the financial year 1 January – 31 December 2024. Further, in our opinion, the Management's review gives a fair review of the development in the Company's activities and financial matters, of the results for the year and of the Company's financial position.In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2024, and of the results of the Company’s operations for the financial year 1 January - 31 December 2024 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of AdPeople A/S for the financial year 1 January - 31 December 2024, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (“the Financial Statements”).Management is responsible for Management’s Review. Our opinion on the Financial Statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the Financial Statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the Financial Statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, in our view, Management’s Review is in accordance with the Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review.Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, Management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Financial Statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the Financial Statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.The financial ratios have been calculated as follows: Return on equity Profit/loss from ordinary activities after tax x 100 Average equity Solvency ratio Equity at year-end x 100 Total equity and liabilities at year-endThe Company's primary business areas are creation of Advertising materials, Marketing Content Production, Video and film production, Creative Production and Marketing Production Automation and AI Technology Development. The Company breathes new life into the relationship between brands and consumers through quality content. Borrowing from a unique blend of local and international experience, combining strategic, creative and production capabilities into one seamless process – crafting a unified brand experience from conceptualization to completion. The Company’s onshore-offshore production solutions are best-in-class, managed by our team of talented account and creative leads in Copenhagen, and supported by execution specialists in Dhaka. AdPeople is a global center of excellence for the creation production of marketing content, video and film. Management expects further integration within the VML, Hogarth and WPP networks to improve its overall market position, competencies and client portfolio.The income statement of the Company for 2024 shows a profit of TDKK 37,310, and at 31 December 2024 the balance sheet of the Company shows equity of TDKK 45,558. The result is MDKK 7,1 higher than the 2023 result, which is satisfying and above our expectations due to increased activity.The development in the result for the year meets Management's expectations for the financial year 2024.Management expects a positive result for 2025 at a similar level as 2024. Management also expects further integration within the VML, Hogarth and WPP networks to improve its overall market position, competencies and client portfolio.No circumstances have occurred after the balance sheet date that distort the assessment of the annual report.The measurement of certain assets and liabilities is based on accounting estimates made by management. The estimates are made in accordance with accounting policies and based on management's assumptions and experience. The estimates made are considered realistic and reasonable. The primary area that involve assumptions and estimates that are considered significant for the financial statements are contract work in progress. No other specific uncertainties are assessed in recognition and measurement.The annual report of AdPeople A/S for 2024 has been prepared in accordance with the provisions applying to reporting class C medium-sized entities under the Danish Financial Statements Act.The accounting policies used in the preparation of the financial statements are consistent with those of last year. The finanical statements for 2024 are presented in DKK thousand.Pursuant to section 112(1) of the Danish Financial Statements Act, no consolidated financial statements have been prepared. The financial statements of AdPeople A/S and group entities are included in the consolidated financial statements of WPP Plc., 13 Castle Street, St. Helier, JE1 1ES, Jersey, England.Pursuant to section 86(4) of the Danish Financial Statements Act, no cash flow statement has been prepared. The Company's cash flows are included in the cash flow statement in the consolidated financial statements of WPP Plc., 13 Castle Street, St. Helier, JE1 1ES, Jersey, England.The Financial Statements have been prepared under the historical cost method. Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement. Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably. Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below.All leases are considered operating leases. Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease term.Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the rates at the time when the receivable or the debt arose are recognised in financial income and expenses in the income statement. Fixed assets acquired in foreign currencies are measured at the transaction date rates.Pursuant to section 32 of the Danish Financial Statements Act, the Company has decided only to disclose gross profit. Gross profit reflects an aggregation of revenue and other external costs.Services are recognised at the rate of completion of the service to which the contract relates by using the percentage-of-completion method, which means that revenue equals the selling price of the service preformed for the year. This method is applied when total revenues and expenses in respect of the service and the stage of completion at the balance sheet date can be measured reliably, and it is probable that the economic benefits, including payments, will flow to the Company. The stage of completion is determined on the basis of the ratio between the expenses incurred and the total expected expenses of the service. Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales.Other external costs comprise costs of distribution, sales and advertising, administrative expenses, costs of premises, bad debts, operating leases, etc.Staff costs comprise wages and salaries, including holiday allowance, pension and other social security costs.Depreciation and impairment losses comprise depreciation and impairment of property, plant and equipment.Other operating costs comprise items secondary to the activities of the entity, including losses on the disposal of property, plant and equipment.Dividends from subsidiaries are recognised as income in the income statement when adopted at the General Meeting of the subsidiary.Financial income and expenses comprise interest income and expense, gains and losses on payables and transactions denominated in foreign currencies, etc.Tax for the year comprises current corporation tax for the year and changes in deferred tax, including changes in tax rates. The tax expense relating to the profit/loss for the year is recognised in the income statement, and the tax expense relating to amounts directly recognised in equity is recognised directly in equity. The Company is jointly taxed with WPP entities in Denmark. The tax effect of the joint taxation is allocated to Danish enterprises in proportion to their taxable incomes.Fixtures and fittings, tools and equipment and leasehold improvements are measured at cost less accumulated depreciation and less any accumulated impairment losses. Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are: The fixed assets’ residual values are determined at nil. The useful life and residual value are reassessed annually. Changes are treated as accounting estimates, and the effect on depreciation is recognised prospectively.Fixtures and fittings, tools and equipment 3-5 years Leasehold improvements 5 yearsInvestments in subsidiaries are measured at cost. Where cost exceeds the recoverable amount, writedown is made to this lower value.The carrying amount of fixtures and fitting, tools and equipment and leasehold improvement as well as equity investments in group entities is subject to an annual test for indications of impairment other than the decrease in value reflected by depreciation. Impairment tests are conducted of individual assets or groups of assets when there is an indication that they may be impaired. Write-down is made to the recoverable amount if this is lower than the carrying amount. The recoverable amount is the higher of an asset's net selling price and its value in use. The value in use is determined as the present value of the forecast net cash flows from the use of the asset or the group of assets, including forecast net cash flows from the disposal of the asset or the group of assets after the end of the useful life.The Company is part of a cash pool scheme with other Danish WPP companies. Consequently, a considerable portion of the Company's bank deposits and debt is included in receivables from and payables to group enterprises, respectively.Receivables are measured at amortised cost. Write-down is made for bad debt losses where there is an objective indication that a receivable has been impaired. If there is an objective indication that an individual receivable has been impaired, write-down is made on an individual basis. Write-downs are calculated as the difference between the carrying amount of receivables and the present value of forecast cash flows, including the realisable value of any collateral received. The effective interest rate for the individual receivable or portfolio is used as discount rate.Contract work in progress is measured at the sales value of the work carried out at the balance sheet date. The sales value is measured based on the stage of completion and the total estimated income from the ndividual contracts in progress. Usually, the stage of completion is determined as the ratio of actual to total budgeted consumption of resources. For projects where the consumption of resources cannot be applied as a basis, stage of completion is determined as the ratio between completed and total sub activities of the individual projects. Each contract in progress is recognised in the balance sheet under receivables or liabilities, depending on whether the net value, calculated as the selling price less on account billings, is positive or negative. Cost of securing contracts are recognised in the income statement as incurred.Prepayments comprise prepaid expenses concerning rent, insurance premiums and subscriptions.The expected dividends payment for the year is disclosed as a separate item under equity.Current tax payable and receivable is recognised in the balance sheet as tax computed on the taxable income for the year, adjusted for tax on the taxable income of prior years and for tax paid on account. Deferred tax is measured using the balance sheet liability method on all temporary differences between the carrying amount and the tax value of assets and liabilities based on the planned use of the asset or settlement of the liability. However, deferred tax is not recognised on temporary differences relating to goodwill non-deductible for tax purposes and on office premises and other items where the temporary differences arise at the date of acquisition without affecting either profit/loss or taxable income. Deferred tax assets, including the tax value of tax loss carryforwards, are recognised at the expected value of their utilisation within the foreseeable future; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Any deferred net assets are measured at net realisable value. Deferred tax is measured in accordance with the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Changes in deferred tax as a result of changes in tax rates are recognised in the income statement or equity, respectively.Other liabilities are measured at amortised cost.Wages and salaries 52,406 50,872 Pensions 1,678 1,366 Other social security costs 814 803 54,898 53,041 Average number of full-time employees 108 110Staff costs include remuneration of the Company's Executive Board of TDKK 1,741 (2023: TDKK 1,752) and Board of directors of TDKK 119 (2023: TDKK 120).Current tax for the year 8,942 6,760 Deferred tax for the year -55 -48 Adjustment of tax concerning previous years -483 0 Adjustment of deferred tax concerning previous years 0 -22 8,404 6,690 DKK'000 Fixtures and fittings, tools and equipment Leasehold improvements Total Cost at 1 January 2024 5,768 417 6,185 Additions for the year 335 177 512 Disposals for the year -54 0 -54 Cost at 31 December 2024 6,049 594 6,643 Depreciation and impairment losses at 1 January 2024 -3,806 -92 -3,898 Depreciation for the year -919 -96 -1,015 Depreciation and impairment losses for the year on assets sold 49 0 49 Depreciation and impairment losses at 31 December 2024 -4,676 -188 -4,864 Carrying amount at 31 December 2024 1,373 406 1,779 DKK'000 Equity Investment in group entities Cost at 1 January 2024 588 Cost at 31 December 2024 588 Carrying amount at 31 December 2024 588 Name/legal form Registered office Voting rights and ownership interest Equity Profit/loss for the year Subsidiaries: DKK'000 DKK'000 Graphic People Ltd. Dhaka, Bangladesh 60% 11,054 7,467 SoftwarePeople Ltd. Dhaka, Bangladesh 65% 6,222 7,301 17,276 14,768The numbers above in the latest published in the Annual Reports for 2023 using the FX rate at 31 December 2023 (Taka/DKK 0,0616).DKK'000 2024 2023 Selling price of work in progress 94,878 76,699 Payments received on account -92,669 -112,438 2,209 -35,739 Recognised in the balance sheet as follows: Contract work in progress recognised in assets 23,351 8,263 Prepayments received recognised in debt -21,142 -44,002 2,209 -35,739Provision for deferred tax at 1 January 202 132 Amounts recognised in the income statement for the year 55 70 257 202The share capital consists of 5,182 shares of a nominal value of DKK 100. All shares rank equally. There have been no changes in the share capital during the last 5 years.DKK'000 2024 2023 Rental and lease obligations Until expiry 221 427 221 427 Contingent liabilities The Company participates in a Danish joint taxation arrangement with WPP Holding Denmark A/S as the administration company. According to the Danish Corporation Tax Act, the Company is therefore liable for income taxes etc. for the jointly taxed companies and for obligations, if any, relating to withholding tax on interest, royalties and dividends for the jointly taxed companies.No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.251372052024-01-012024-12-31251372052024-01-012024-12-311251372052024-01-012024-12-312251372052023-01-012023-12-31251372052023-12-31251372052024-01-012024-12-31g:PreviousYearMember251372052024-01-012024-12-31g:TwoYearsAgoMember251372052024-01-012024-12-31g:ThreeYearsAgoMember251372052024-01-012024-12-31g:FourYearsAgoMember251372052024-12-31251372052024-12-31g:PreviousYearMember251372052024-12-31g:TwoYearsAgoMember251372052024-12-31g:ThreeYearsAgoMember251372052024-12-31g:FourYearsAgoMember251372052024-01-012024-12-311251372052024-01-012024-12-312251372052024-01-012024-12-311251372052024-01-012024-12-312251372052024-01-012024-12-313251372052024-01-012024-12-31c:ProposedDividendRecognisedInEquityMember251372052023-01-012023-12-31c:ProposedDividendRecognisedInEquityMember251372052024-01-012024-12-31c:ContributedCapitalMember251372052024-01-01c:ContributedCapitalMember251372052024-12-31c:ContributedCapitalMember251372052024-01-012024-12-31c:RetainedEarningsMember251372052024-01-01c:RetainedEarningsMember251372052024-12-31c:RetainedEarningsMember251372052024-01-012024-12-31c:ProposedDividendRecognisedInEquityMember251372052024-01-01c:ProposedDividendRecognisedInEquityMember251372052024-12-31c:ProposedDividendRecognisedInEquityMember251372052024-01-012024-12-31c:RetainedEarningsMember251372052023-01-012023-12-31c:RetainedEarningsMemberxbrli:pureiso4217:DKKiso4217:DKK