WPP Scangroup narrows loss to Ksh.38 million

Marketing and communication firm WPP Scangroup has significantly narrowed its 2021 full year loss to Ksh37.9 million from a wider loss of Ksh.1.7 billion in 2020.

The improved earnings for the NSE listed company are attributable to improved revenue from operations, flanked by reduced costs in the period.

Scangroup’s revenue from continuing operations have for instance improved by 20.6 per cent to Ksh.7.6 billion from Ksh.6.3 billion previously.

Meanwhile, the firm has cut its operating and administrative expenses by Ksh.240 million, mainly as a factor of reductions in staff costs.

Despite the improved set of financial results for the year, WPP Scangroup has issued a conservative outlook for 2022 as trading conditions deteriorate.

“Trading conditions continue to be challenging in the markets that the Group operates in. Inflation and the rise in the cost of living in most of our markets, exacerbated by the war in Ukraine, are likely to negatively impact the marketing budgets of our clients,” the company said in a statement on Friday.

“Uncertainty linked to imminent elections in Kenya are likely to add to this. However, following recent business wins, the Group is taking a cautiously optimistic view of 2022.”

The board of WPP Scangroup has not recommended the payment of a dividend for the period after Ksh.3.5 billion representing a special interim dividend paid out in 2020.

In March, WPP Scangroup appointed Patricia Ithau as its new Chief Executive Officer replacing the long-serving Bharat Thakrar who resigned from the company last year.