The chief executive of WPP Scangroup Bharat Thakrar is set to earn millions in dividends in a year that the company announced a special Sh1.7 billion payout from Sh284 million a year earlier.
Mr Thakrar is set to pocket at least Sh182 million from his 10.58 percent stake at the listed marketing services firm.
The company reported a 28.3 percent jump in net profit for the year ended December to Sh612 million from Sh477 million a year earlier.
The chief executive of WPP Scangroup Bharat Thakrar is set to earn millions in dividends in a year that the company announced a special Sh1.7 billion payout from Sh284 million a year earlier.
Mr Thakrar is set to pocket at least Sh182 million from his 10.58 percent stake at the listed marketing services firm.
The company reported a 28.3 percent jump in net profit for the year ended December to Sh612 million from Sh477 million a year earlier. This is on the back of a 9.27 percent increase in revenues to Sh4.5 billion from Sh4.12 billion posted a year earlier.
Following the performance, the firm’s board declared a final dividend of Sh1 per share, a 33.33 percent rise from the Sh0.75 announced the previous year.
In addition, the firm announced a special dividend of Sh3 per share, bringing the total payout to Sh4.
The firm has also given a bright outlook for 2019 saying that year-to-date performance has been good and it expects improved operating profit. Operating profit was up 55.1 percent to Sh641 million in 2018.
During the period under review, revenue grew by 9.3 percent to Sh4.5 billion, with 62 percent coming from Kenya.
This was down from 73 percent primarily on account of TNS Kantar acquisition which has sizeable presence in Nigeria.
The firm said revenue in traditional business activities of advertising, media and public relations fell due to reductions in expenditure by majority of its clients in Kenya.
“On a positive note, there was growth in the digital and technology offering and in research due to the acquisition of TNS Kantar research business in July 2018,” said the firm.
Operating and administrative expenses grew by 4.1 percent to Sh3.86 billion from Sh3.7 billion spent in the previous year.
Scangroup beats the odds of the tough year that has seen about 15 Nairobi Securities Exchange-listed firms issue profit warnings as earnings came under pressure. Most of the other firms that have declared increase in dividend payout have been in the banking sector, including KCB Group and Cooperative Bank.
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