Standard Group, one of Kenya’s media house, is in dire straits.
“The Board of Directors of The Standard Group PLC (the Group.) makes this announcement pursuant to provisions of Paragraph G.05 (1) (f] and (2) of the Fifth Schedule of the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002 -Amended 2016,” the statement signed by CEO Orlando Lyomu and shared on social media stated in part.
The firm has been struggling for over 2 years now and has taken measures to cut down costs by sacking staff and closing some radio and Tv stations. T
The media house recently issued a notice of redundancy.
Some casual labourers accused the struggling company of non-payment of dues.
“The Board of Directors wishes to inform shareholders of the Company, potential investors and the public that based on preliminary assessment, the financial results for the year ending 31st December 2022 will be at least 25% lower than the reported earnings for the year ended 31st December 2021”, the statement further said.
The over 100-year-old media house attributes the lower profits to “increase in the cost of raw materials, global disruption in supply chain and depreciation of the Kenyan Shilling against major currencies and heightened by political environment with advertisers pulling out during the political campaign period between July and October”
Standard Group says those issues resulted to an increase in the cost of production by more than 50%.
In March 2021, the group shut down its I&M tower office and relocated staff to its headquarters along Mombasa Road.
The group reduced its loss before tax to Sh22m for year ended 31st December 2021 compared to a loss before tax of Sh434.4m over a similar period in 2020, an improvement of 95%.
The group is focusing on cost containment to improve its financial position in 2023.
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