Standard Group Plc has this morning issued a Profit warning statement. This means the profit for the year ended 31st December 2019 will be at least 25% lower than the performance of the year ended 31st December 2018.
The board in a Notice to Investors said newsprint was a major contributor to increased costs in the year as Key existing clients spent less in this period including SMEs due to slow economic activity and lack of access to credit from the financial sector. The Group invested in several new products which in the immediate period has affected our costs, but we expect revenues to be realized in subsequent years.
Finally, there has been several changes in key regulations within the business environment which led to a number of investors exiting the Kenyan market. Key among them are the gaming and betting sector. Also affected by regulatory
changes were the alcoholic and beverage companies, the tobacco industry and the education sector who have equally slowed down on their spending.
The Company’s Board remains cautiously optimist that the Group is able to withstand the changes in the operating environment and is focusing on growing the newly launched media products, which should enable the Group to post a better return next year.
