A woman flips through a newspaper at a vendor stand. Standard Media
Group’s Sh289.6 million worth of assets went up in smoke in the year
ended December 2015 compared to a profit of Sh220 the previous year.
Photo/REUTERS
Standard Group Limited made losses amounting to Sh289.6 million
worth of assets in the year ended December 2015 compared to a profit of
Sh220 million the previous year.
The company attributed
the loss to increased costs, bad debts, one off restructuring costs and
accelerated depreciation of equipment.
The group’s
revenue slipped to Sh4.5 billion from Sh4.8 billion in 2014 even as
operating costs boiled over to Sh4.7 billion from Sh4.4 billion in the
period under review.
The performance in print division
declined 11 per cent on contracting industry-wide print newspaper
circulation. The company's cashflow situation deteriorated with more
money going out than coming in reflecting its challenges in meeting
short term obligations.
The group’s board however said
it is optimistic the cost cutting initiatives such as automation and
restructuring will return the firm to profitability.
“The
board is optimistic that the group will return to profitability in 2016
as the benefits of automation and reorganization of the workforce begin
to be felt this year,” the listed media house said in statement to the
bourse.
The company did not declare a dividend for the year, compared to Sh0.50 in the previous year.
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