| Term |
US equivalent or brief description |
| Allotted |
Issued |
| ADRs/ADSs |
American Depositary Receipts/American Depositary Shares. The Group uses ADR and ADS interchangeably |
| Average net debt |
Average net debt is calculated as the average daily net bank borrowings of the Group, derived from the Group's automated banking system. Net debt at a period end is calculated as the sum of the net bank borrowings of the Group, derived from the cash ledgers and accounts in the balance sheet |
| Called-up share capital |
Ordinary shares, issued and fully paid |
| Capital allowances |
Tax term equivalent to US tax depreciation allowances |
| Cash at bank and in hand |
Cash |
| Combined Code |
The 'Principles of Good Governance' and the provisions of the 'Code of Best Practice' issued by the Hampel Committee on Corporate Governance and the London Stock Exchange |
| Constant currency |
The Group uses US dollar-based, constant currency models to measure performance. These are calculated by applying budgeted 2004 exchange rates to local currency reported results for the current and prior year. Thisgives a US dollar-denominated income statement and balance sheet which excludes any variances attributable to foreign exchange rate movements |
| Creditors |
Accounts payable |
| Creditors: amounts falling due after more than one year |
Long-term debt |
| Creditors: amounts falling duewithin one year |
Current liabilities |
| Debtors |
Accounts receivable |
| ESOP |
Employee share ownership plan |
| Estimated net new billings |
Net new billings represent the estimated annualised impact on billings (turnover) of new business gained from both existing and new clients, net of existing client business lost. The estimated impact is based upon initial assessments of the clients' media budget, which may not necessarily result in actual billings of the same amount |
| EURIBOR |
The euro area inter-bank offered rate for the euro |
| Finance lease |
Capital lease |
| Freehold |
Ownership with absolute rights in perpetuity |
| FRS |
Financial reporting standard in the UK |
| Interest receivable |
Interest income |
| Hampel Committee |
UK committee on corporate governance established in November 1995 to review the implementation of the findings of the Cadbury and Greenbury Committees |
| Headline earnings |
Headline PBT less taxation on profit on ordinary activities and minority interests |
| Headline operating profit |
Operating profit before goodwill amortisation and impairment |
| Headline PBIT |
Profit on ordinary activities before interest, taxation, goodwill amortization and impairment, fixed asset gains and write-downs |
| Headline PBT |
Profit on ordinary activities before taxation, goodwill amortisation and impairment, fixed asset gains and write-downs, and net interest chargeson defined benefit pension schemes |
| Higgs Report |
Report in the UK by Derek Higgs on the role and effectiveness of non-executive directors |
| IAS/IFRS |
International Accounting Standard/International Financial Reporting Standard |
| LIBOR |
The London inter-bank offered rate |
| Other reserves |
Additional paid-in capital or paid-in surplus (distributable in certain circumstances) |
| Profit attributable to ordinaryshare owners |
Net income |
| Profit |
Income |
| Profit and loss account reserve(under 'capital and reserves') |
Retained earnings |
| Profit and loss account (statement) |
Income statement |
| Pro forma ('like-for-like') |
Pro forma comparisons are calculated as follows: current year actual results (which include acquisitions from the relevant date of completion) are compared with prior year actual results, adjusted to include the resultsof acquisitions for the commensurate period in the prior year. The Group uses 'pro forma' and 'like-for-like' interchangeably |
| Proposed dividend |
Dividend declared by directors but not yet approved by share owners |
| Provision against deferred tax assets |
Valuation allowance |
| Sarbanes-Oxley Act |
An Act passed in the US to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes |
| Share capital |
Ordinary shares, capital stock or common stock issued and fully paid |
| Share premium account |
Additional paid-in capital or paid-in surplus (not distributable) |
| Shares in issue |
Shares outstanding |
| Short leasehold |
A short lease is where the portion of the term remaining unexpired at the end of the financial year is less than 50 years |
| Smith Report |
Report in the UK by Sir Robert Smith on the role of audit committees |
| Stocks |
Inventories |
| Tangible fixed assets |
Property and equipment |
| Turnbull Report |
Guidance issued by the Institute of Chartered Accountants in England & Wales on the implementation of the internal control requirements of the Combined Code on Corporate Governance at the request of the London Stock Exchange |