Marketing and Communication Group WPP Scangroup PLC has announced that shareholders will not receive an interim dividend after the company posted a 16 per cent drop in profit before tax for the half year ended June 30, 2025.
According to the unaudited financial statements released on August 22, 2025, WPP’s profit before tax fell to KSh 134.7 million, down from KSh 159.8 million in the same period last year.
The company attributed the decline to reduced revenues and increased operational costs, despite maintaining a strong cash position.
Cash reserves stood at KSh 1.34 billion, compared to KSh 1.29 billion in June 2024.
Financial Performance
In the results published in local dailies, the board noted that gross profit decreased by 16 per cent, driven by macro-economic challenges and a difficult operating environment.
Revenue pressures and inflationary effects also contributed to higher costs across its operations.
Despite these challenges, management said the business remains financially stable and continues to implement measures to strengthen its balance sheet.
“Our gross profit has decreased by 16%, influenced by macro-economic factors and a challenging business environment,” the Board of Directors stated.
The company further disclosed that while revenue dipped, it is advancing restructuring programmes aimed at improving efficiency and competitiveness.
No Interim Dividend
In line with its financial performance, the Board resolved not to recommend an interim dividend for the period under review.
“The board of directors does not recommend an interim dividend,” confirmed part of the Scangroup statement.
The decision was informed by the need to preserve liquidity and support the company’s ongoing strategic investments.
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“We are actively advancing our strategic priorities, including investment in specialised implementation capabilities and establishing Centres of Excellence,” the Board added.
This marks another cautious approach by the company as it seeks to balance shareholder expectations with long-term stability.
Outlook for 2025
Looking ahead, Scangroup expressed cautious optimism for the rest of the financial year.
The Board said the company will continue focusing on cost optimisation, innovation, and service expansion to navigate the prevailing economic headwinds.
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“The Board remains confident in the Group’s resilience and ability to deliver long-term value to shareholders despite the prevailing headwinds,” the directors noted.
Global uncertainty, coupled with rising inflation, remains a challenge. However, Scangroup said it is positioning itself to respond to shifting market demands through efficiency and improved service delivery.
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