Standard Group issues profit warning for FY2017

The Standard Group PLC has issued a profit warning for financial year results ending 31 December 2017 projecting to be at least 25 percent lower than the level of earnings in the financial year 2016.

“The Board of Directors anticipates that the financial results for the year ended 31st December 2017 will be materially affected by the prevailing adverse market conditions in the second half of the year compared to the same period in the year 2016,” said Orlando Lyomu the Acting Group Chief Executive.

Specific challenges that adversely affected the listed media company in the second half of the year included the prolonged and disruptive election period. “This has had a negative impact on the economy in terms of volumes of business transacted and shrinkage of cash in circulation, thereby affecting our revenues and cash flows significantly,” said Lyomu.

They project a positive impact to realised in 2018.

In their half-year results, the Group posted a 10 percent increase in top-line revenues to KSh 2.44 Billion while profit after tax rose by 6.55 percent to KSh 34.3 Million.

All business segments except print advertising reported revenue growth, with Radio and TV recording an impressive 58 percent and 33 percent respectively compared to a similar period in 2016.

Revenue from the print segment of the business fell by 4 percent attributable to a decline in advertisement revenue while copy sales revenue increased by 3 percent.