Marketing and Communication group WPP’s subsidiary WPP Scangroup 2015 half year earning were almost unchanged rising a paltry 1.4 per cent.
The Sh14.7 billion company as valued by the stock market reported a net profit of Sh185 million in the first half of the year, a 1.4 per cent growth from to Sh182 million in a similar period in 2014, aided by higher interest income.
The counter Friday experienced selling pressure closing at Sh38 a share from Sh39 on Thursday.
“The business delivered revenue growth of 6.5 per cent but due to continuing pressures on currencies in the countries in which we operate, our overall growth rate was reduced to 2.3 per cent,” the company said in a statement Friday.
Interest income grew by 73 per cent to Sh194 million from Sh112 million arising from “our strong improvement in working capital during 2014. The improvement has continued into first half of 2015.”
TURNOVER
Turnover rose by 2.3 per cent to Sh2.3 billion from Sh2.26 billion in the period under review.
“This growth is expected to continue during the second half of the year in line with prior years,” the firm said.
Expenses grew by 7.6 per cent due to expansion into new geographies. New operations are in Nigeria, Uganda and Zambia which were opened between end of 2014 and early this year.