WPP Scangroup, a leading marketing and advertising company released its half results for the financial year 2021 reporting a profit after tax of Ksh 31.4 Million from a loss of Ksh 532.0 Million in the same period in 2020.
The listed company reported net sales of Ksh 1.1 Billion, an increase by 1.7%. Operating profit came in at Ksh 8.5 Million from an operating loss of Ksh 267.5 Million. Interest income rose by 153.9% to Ksh 99.2 Million.
Total assets fell by 32% to Ksh 8.8 Billion on the back of a 28% decline in current assets to Ksh 7.8 Billion and a massive 51% decrease in cash to Ksh 3.6 Billion.
Total liabilities during the period under review went up by 17% to Ksh 3.5 Billion as the firm’s total equity fell by 46% to Ksh 5.3 Billion.
Net cash for operating activities was up 30% to Ksh 279 Million while net cash used in financing activities was up 7% to Ksh 38 Million.
WPP Scangroup Profit Warning
WPP Scangroup also issued a profit warning, with expectations that the company’s full-year 2021 earnings will be at least 25% lower than Full Year 2020. The board did not recommend an interim dividend.