This archive report was first published on 7 August 2020.
On June 30, 2020, WPP Scangroup reported a significant increase in profits, reaching Ksh1.583 billion for the half-year period. This substantial jump in profits was primarily attributed to the sale of the company's interests in various discontinued operations.
As part of this sale, WPP completed the disposal of its interest in Millward Brown East Africa, Millward Brown Nigeria, Millward Brown West Africa, and Research and Marketing Group Investment Limited, resulting in a net gain of Ksh2.24 billion.
However, a portion of the proceeds from the sale was used to write off a Ksh329 million bad debt from a parastatal client.
Despite the gain from the sale, the group's continuing operations incurred an operating loss of Ksh267 million before provisions for bad debt during the half-year period.
The COVID-19 pandemic led to cost-cutting measures adopted by clients, resulting in a 21% reduction in WPP's net sales to Ksh1.09 billion from Ksh1.37 billion recorded in H1:2019.
Additionally, total assets declined from Ksh13.62 billion in H1:2019 to Ksh12.83 billion in H1:2020, while current liabilities reduced to Ksh2.75 billion from Ksh5.87 billion in the first half of 2019.
On August 27, 2020, the board declared a special interim dividend of Ksh8 per share payable to shareholders.
