The Board of Directors of WPP Scangroup PLC has released its report for the fiscal year ended December 31, 2025. As a leading integrated marketing and communications group in Africa, the board used the report to outline its response to a challenging macroeconomic environment and its strategy for stabilization in 2026.
WPP Scangroup Financial Results and Dividend Policy
The directors reported that the group’s loss for the year reached KES 713.67 million, a substantial increase compared to the KES 506.74 million loss recorded in 2024. This performance was driven by several factors, most notably a 27% decline in gross profit, which fell to KES 1.468 billion as a result of reduced media and advertising spending by certain clients.
Additionally, the group faced a KES 110 million reduction in interest income due to lower bank balances and reduced market rates. Despite these pressures, the board noted that operational expenses were reduced by KES 62 million through a right-sizing program, though this was partially offset by a one-off severance cost of KES 176 million. Given the loss-making position, the directors did not declare a dividend for the 2025 financial year.
Operational Restructuring and Tanzanian Exit
WPP is transitioning toward a more client-centric and efficient model. In 2025, Scangroup integrated its media agencies—Essence Mediacom, Mindshare, and Wavemaker—under the WPP Media umbrella to foster a unified working model.
The directors also disclosed a significant change in the group’s regional footprint. As of April 2026, the Tanzanian operations transitioned from a fixed, in-market delivery model to a partnership market access model. This shift aims to optimize the group’s corporate structure into a leaner, more efficient entity while ensuring clients in that market continue to receive service through established local partners.
The report outlines the group’s structured approach to governance and risk management through a three lines of defence model. Under this framework, operational teams form the first line by owning and managing risk in their day-to-day activities, while specialized functions act as the second line by providing oversight on risk management and business integrity. Independent assurance is delivered through the third line, where internal audit plays a critical role in evaluating the effectiveness of controls and governance processes.
On workforce trends, the group reported a reduction in total headcount from 434 employees in 2024 to 333 in 2025, reflecting a leaner operational structure. The current workforce consists of 170 permanent and 163 contracted staff. Despite the shift, the organization continues to demonstrate strong gender balance, with an overall composition of 51% male and 49% female employees. This commitment to diversity is also evident at the leadership level, where gender representation is evenly split at 50% each.
Get The Trading Room on your feed — WhatsApp · Telegram · X · LinkedIn
Also read: Trump Proposes New AGOA Without Duty Free Access for Africa
