This archive report was first published on 1 September 2021.
WPP-Scangroup, the largest marketing and communication group in Sub-Saharan Africa, released its delayed financial results for the year ended 31st December 2020 on Tuesday, 31st August 2021. The company had delayed the publication of its results for the third consecutive time due to ongoing investigations against its former Chief Executive Officer, Mr Bharat Thakrar, and the former Chief Finance Officer, Mr Satyabrata Das.
According to the company's financial results, group revenue for the year 2020 from continuing operations declined by 22% to Ksh 2.239 Billion from Ksh 2.872 Billion reported in the same period in 2019. The company made a net gain of Ksh 2.242 Billion from the sale of its interest in Millward Brown East Africa Ltd, Millward Brown Nigeria Ltd, Millward Brown West Africa Ltd, and Research & Marketing Group Investment in June 2020.
WPP Scangroup's total billings for the full year 2020 declined to Ksh 6.34 Billion from Ksh 9.28 Billion reported in 2019, while operating and administrative expenses increased by Ksh 720m (26%) to Ksh 3.46 Billion. The company's total loss for the year came in at Ksh 1.732 Billion compared to a profit of Ksh 158.792 Million reported in the same period in 2019.
Deloitte & Touche, the company's auditors, expressed a qualified audit opinion on the company's audited consolidated financial statements in their report dated 31st August 2021. The basis for their qualified audit opinion was that the company had not accounted for its five foreign investments using the equity method, which is in non-compliance with IFRS.
WPP Scangroup's board had suspended CEO Bharat Thakrar and the Chief Finance Officer, Satyabrata Das, on 18th February 2021, after allegations of gross misconduct in their capacity as senior executives. The company did not release a full report of its investigation on the alleged misconduct of its Founder CEO Mr Bharat Thakrar and the former Chief Finance Officer, Mr Satyabrata Das.
