The bounce back is majorly anchored on lower costs including shaved staff costs and thinner impairment charges.
For instance, provisions for bad and doubtful debts have declined to Ksh.25.4 million from a greater Ksh.328.8 million in the corresponding period last year.
The performance at the half year stage is however bitter-sweet for shareholders with WPP Scangroup having issued a profit warning on expected full year results to December 31, the first profit warning for the period by a NSE listed firm.
Marketing magnet WPP Scangroup has broken back to profitable growth at the half year stage posting earnings of Ksh.31.4 million in six months to June 2021.
The bounce back is majorly anchored on lower costs including shaved staff costs and thinner impairment charges.
For instance, provisions for bad and doubtful debts have declined to Ksh.25.4 million from a greater Ksh.328.8 million in the corresponding period last year.
At the same time, the firm has seen its net sales in the period improve marginally by two per cent to Ksh.1.1 billion.
The performance at the half year stage is however bitter-sweet for shareholders with WPP Scangroup having issued a profit warning on expected full year results to December 31, the first profit warning for the period by a NSE listed firm.
The expected low earnings are largely attributable to discontinued business after the marketer sold its Kantar business in 2020.
WPP Scangroup realized Ksh.2.2 billion from the transaction as one off gains allowing to pay a special Ksh.3.4 billion dividend to shareholders in July 2020.
The company says it continues to probe its former executives; Bharat Thakrar (CEO) and Satyabrata Das (CFO) over possible offences which saw them suspended earlier in the year followed by their subsequent exits.The pair was however cleared through an audit of its 2020 full year results indicating possible offences were immaterial to Group results.The board is currently in the process of replacing the executives.Video Of The Day: Former sports CS Hassan Wario convicted over Rio games scam
