The world's biggest advertising group and second largest communications group WPP witnessed a slight fall in the full year profits by 0.3 percent to GBP 437.7 million, down from the GBP 439.1 million for 2008 as the economic slowdown forced the company and the entire industry to "stare into the abyss".

Sir Martin Sorrell, CEO of the Dublin, Ireland-based firm that was found in 1971 as - Wire and Plastic Products plc, said cost rationalization and moderate growth in advertising revenues during the second half helped the company to minimize the impact. Annual group revenue jumped 16.1 percent to 8.684 billion pounds.

"Things are still tough, clients are still being very demanding, focused on costs, which tends to be more so in Western Europe and the US," Sorrell said in an interview. For 2010, Sorrell said he expects organic revenue to be flat and is targeting for an operating margins of 12.7 per cent.

Sorrell expects a stable 2010 and added that the company would hire people this year. The firm would also pay a second interim dividend of 10.28 pence per WPP share, unchanged from last year.