WPP Scangroup PLC has announced that it has registered a Ksh. 130 million profit after tax for the year ended 31 December 2023. This is an improvement from the Ksh. 147 million loss that the company posted in 2022.
The company registered Ksh. 6.6 billion in revenue which is down from the Ksh. 7.3 billion the company posted in a similar period last year. Gross profit in 2023 was Ksh. 2.2 billion which is an increase of Ksh. 29.7m (1.4%) compared to the previous year. This was mainly driven by both organic growth from existing clients and new clients. Operating and administrative expenses amounted to Ksh 2.6 billion which is an increase of Ksh. 143 million compared to 2022. This was mainly due to one off severance costs for a comprehensive restructuring programme undertaken to right size the cost base and reshape the staff structure.
Miriam Kaggwa, Chief Financial Officer, said: “After 7 years of declining growth, in 2023 we changed the tide in by registering a 1% gross net revenue growth to KES 2.2 billion. In the FY 2023 23 we recorded an operating profit of KES 269 million excluding restructuring cost. We delivered increased value to our shareholders with an EPS growth of 191%. We are continuously exploring all investment options within the organization – weighing the potential return vs risk.”
Patricia Ithau, Chief Executive Officer, said: We are transforming the business to make it future fit, agile and be true to a future where technology meets creativity. We have built a strong technology stack to support innovation-led growth for our agencies. The next stage of transforming our business is focused on continuing to invest in technology and talent, leveraging the gig economy and AI for agility and developing net-zero targets in line with our sustainability agenda.”
The Scangroup board of directors has not recommended a dividend payout to shareholders for the financial period in review.