As the prolonged political period starts to wind up the Standard Group has anticipated a drop in profits by the end of the year.
According to the Group’s Board, political tension had a big effect on the economy thus playing a big part in what the company predicts will be a 25 per cent drop in profits.
“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,” a notice released by the media house read in part.
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“The Board of Directors therefore projects that the Group’s earnings for the year ended 31st December 2017 will be at least 25% lower than the level of earnings in the financial year 2016.”
However, acting CEO Orlando Lyomu has expressed his optimism that the media house will bounce back after developing strategic plans for sudden changed in the market.
“Meanwhile, roll-out of the medium strategic plans will ensure the group is insulated from sudden changes in the market in terms of revenue generation capacity going forward.”
The 25 per cent drop in profit would equate to Sh67.4 million thus meaning the company would end the year with a Sh202 million profit.
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