WPP Scangroup CEO Bharat Thakrar. FILE PHOTO | NMG WPP Scangroup has lost Sh834 million in market value since its founder and former chief executive Bharat Thakrar was suspended for financial impropriety on February 19.
The company’s share price closed at Sh5.54 on that day, assigning it a market capitalisation of Sh2.39 billion.
The stock has lost more than a third of its value to trade at an average of Sh3.61 yesterday, valuing the marketing services company at Sh1.56 billion.
Mr Bharat, his co-accused and former chief financial officer Satyabrata Das have since resigned from the company.
Scangroup has delayed the publication of its 2020 financial results thrice, spooking some investors who have sold millions of shares as the stock sunk lower.
The Nairobi Securities Exchange-listed firm said its auditors need more time to determine whether the former executives’ malpractices are material enough to impact its financial statements.
Scangroup is now expected to publish its results by Tuesday next week, its latest self-imposed deadline after missing three earlier dates of April 30, May 31 and July 31.
The company reported a net profit of Sh1.5 billion in the half year ended June, 6.3 times larger than the Sh249.8 million it posted the prior year.
The profit jump was derived from a Sh2.2 billion net gain from disposal of its interest in the former subsidiary Kantar Africa, a transaction which more than offset a Sh532 million loss from continuing operations.
The company has not specified the allegations against its former executives.