WPP Scan group profits for the half-year ended June 30, 2020, rose to Ksh1.583 billion compared to a Ksh249.85 million recorded in a similar period last year. The massive jump in profits is attributed to the sale of Scangroup’s interests in various discontinued operations.
In this case, WPP completed the sale of its interest in Millward Brown East Africa, Millward brown Nigeria, Millward Brown West Africa, and Research and Marketing Group Investment Limited generating Ksh2.24 billion net gain in the period under review.
Although the firm booked a gain of Ksh2.24 billion on the disposal, part of the proceeds went to write-off a Ksh329 million bad debt from a parastatal client.
The group made an operating loss before provisions for bad debt of Ksh267 million from its continuing operations in the half year.
During the half, cost-cutting measures adopted by clients due to COVID19 saw WPP net sales reduced by 21 per cent to Ksh1.09 billion from Ksh1.37 recorded in H1:2019. Total assets declined from ksh13.62 billion in H1:2019 to Ksh12.83 billion in H1:2020. In the period under review, current liabilities reduced to Ksh2.75 billion in comparison to the Ksh5.87 billion in the first half of 2019.
The board declared a special interim dividend of Ksh8 per share payable on or before 27 August 2020.