WPP Scangroup posts Ksh.1.7 billion full year loss, clears former executives

WPP Scangroup posts Ksh.1.7B full year loss, clears former executives

After months of waiting due to delayed trading updates, WPP Scangroup has posted a Ksh.1.7 billion full year loss for the full year ended December 31, 2021.

The loss has been anchored on higher operating and administrative expenses and greater impairments in the period.

The company’s operating and administrative expenses touched a high Ksh.3.5 billion from Ksh.2.7 billion while it made impairments of Ksh.158.8 million and Ksh.315.7 million in its investments in associates and goodwill.

The higher impairments on associates relate to a deteriorated economic outlook while the goodwill impairment relates to the consideration paid in excess of the net assets of subsidiaries acquired.

Earnings from billings eased to Ksh.6.3 billion from Ksh.9.3 billion while revenues went down at Ksh.2.2 billion from a higher Ksh.2.9 billion in 2019.

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The marketing firm has also cleared its former executives including former Chief Executive Officer Bharat Thakrar and Chief Finance Officer Satyabrata Das.

The company says investigations did not uncover any issues material to the company’s performance at the end of the period.

“The investigation did not identify items of a material nature that required adjustment to the results of the company or Group or to the balance sheets at that date,” the company noted.

The duo was suspended on February 18 before their subsequent resignation as directors and senior executives at the company on March 23 and May 11.

Edited By Lawrence Baraza

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