Vision Group Posts UGX 9.7bn Loss, Auditor General Flags Cash Flow and Covenant Breaches

Vision Group has reported a loss of UGX 9.727 billion for the financial year ending 30 June 2025, alongside negative operating cash flows amounting to UGX 11.829 billion, raising fresh concerns about the company’s financial sustainability.

The figures are contained in the December 2025 Auditor General’s report, in which Auditor General Edward Akol notes that the company’s weak cash position resulted in non-compliance with loan covenants, exposing the media house to heightened financial risk.

According to the report, Vision Group’s operations failed to generate sufficient cash to meet its day-to-day obligations. As a result, the company delayed payments to suppliers, leading to accrued interest costs, while also incurring fines and penalties arising from late settlement of statutory obligations.

The Auditor General highlights that persistent operating losses and deteriorating cash flows have continued to strain the group’s balance sheet, limiting its ability to service debt and finance operations without relying on external support.

Structural and Operational Pressures

Vision Group’s financial challenges reflect broader pressures facing traditional media businesses, including declining print circulation, weakened advertising revenues, and high operating costs. Despite efforts to diversify revenue streams beyond print media, the report indicates that these initiatives have not yet generated sufficient returns to offset losses from core operations.

The negative cash flow position suggests that revenues collected during the year were insufficient to cover operating expenses, a situation that undermines liquidity and raises questions about the company’s ability to meet short-term obligations without restructuring or additional financing.

Leadership and Governance Concerns

Under the leadership of Managing Director Don Wanyama, Vision Group has previously announced turnaround strategies aimed at stabilising finances and restoring profitability. However, the latest audit findings indicate that these efforts have so far failed to reverse the company’s downward financial trajectory.

The Auditor General’s report underscores the need for stronger financial controls, improved cash management, and a clear, measurable turnaround strategy to address the group’s recurring losses and compliance risks.

Outlook

The combination of multi-billion-shilling losses, negative operating cash flows, loan covenant breaches, and additional costs from penalties and interest places Vision Group in a vulnerable financial position. Without decisive corrective action, the company risks further erosion of shareholder value and increased dependence on lenders and state support.

The audit findings are expected to prompt closer scrutiny from Parliament, shareholders, and regulators as Vision Group seeks to stabilise its finances in a rapidly changing media and advertising landscape.