Troubled Scangroup delays results again

NEWS |

Marketing firm WPP Scangroup has for the second time postponed the publication of its financial results due to internal woes.

The announcement has now been pushed to July 31, signalling the toll that a probe on former top executives is taking on the firm, and keeping investors anxious.

“The delay in publication of the audited financial statements has been occasioned by the ongoing investigation that followed the recent senior management changes previously notified to shareholders and the public,” said a notice from the board signed by Company Secretary Winnie Jumba on Wednesday.

“The board of directors, management and the company’s auditors are working to ensure that shareholders and investors are provided with audited financial statements that reflect the impact (if any) of these developments on the company’s financial position.”

The statements for the financial year ended December 2020 were first due on April 30, 2021.

Last month, two top executives left WPP Scangroup, in quick succession to former Chief Executive Bharat Thakrar who resigned in March.

One of the executives was Chief Financial Officer Satyabrata Das, who was suspended in February together with Mr Thakrar to allow a probe into allegations of gross misconduct. 

In March, the WPP Scangroup board said it had accepted the resignation of Thakrar from the position he held since 1999, but that the probe against him would continue. The firm is yet to shed light on the nature of misconduct. 

Ms Jumba has in the last few months been announcing various changes in the firm in compliance with the capital markets regulations.

WPP Scangroup is listed on the Nairobi Securities Exchange.

Last month, a change in the board was announced following the resignation of Laurence Mellman as a non-executive director with effect from August 31, 2020.

The notice added that an annual general meeting would be announced at the same time as the publishing of the results. 

WPP Scangroup has several brands in the marketing and communications industry including Ogilvy and H+K Strategies.

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