Longhorn Publishers Plc has posted a net loss of KES 261 million in the financial year ended June 30th, 2025. The net loss for the year is 10% higher than that posted in FY 2024. In FY 2025, revenue and other income declined by 56% to reach KES 680 million. The management attributed the decline in revenue to disruption in the private and government markets where the firm operates.
The cost of sales grew in parity with revenue at 57% to KES 521 million, which was equivalent to 77% of revenue and other income as compared to 79% in FY 2024. The gross profit for the year declined 52% to KES 159 million, bringing the gross margin to 23% from 22% in FY 2024.
Operating Expenses (OpEx) contracted by 20% to KES 328 million, while finance costs remained flat at KES 203 million. According to Longhorn Publishers’ report, the management had reduced the operating cost by 20% in the review period, but the company still recorded a loss of KES 35 million (excluding provisions and impairments) compared to an operating profit of KES 165 million in the prior year.
“Management reduced operating expenses by 20%, but the Company still recorded an operating loss of KES 35 million (excluding provisions and impairments) compared to an operating profit of KES 165 million in the previous year.” – Management Commentary.
Longhorn Publishers Operating Outlook
Longhorn Publishers also pointed out that to has experienced a tough market environment since the transition period from the 8-4-4 system to the Competency Based Curriculum (CBC) in 2018. The transition has necessitated significant investment, and the firm has had to invest KES 714 million in the development of CBC content.
“The pat seven years have been a testing period for the education sector and the company. The transition from the 8-4-4 system to the Competency-Based Curriculum (CBC) required significant investment and adaption. Between 2018 and 2025, the company invested over KES 714 million in CBC content development, absorbed KES 254 million in inventory and debtor impairments, and wrote off KES 149 million in development costs.” – Management Commentary.
During the transition period, the company had invested KES 714 million in CBC content development, absorbed KES 254 million in inventory and debtor impairments, and written off KES 149 million in debt cost.
Longhorn Publishers expects stability to return to the sector on account of curriculum rationalization and final CBC approvals, which will, in turn, bring down development costs and ultimately reinvigorate sales. Further, the company has secured government contracts and looks forward to robust uptake in the private markets. Particularly, the firm’s digital platforms provide the company with another expansion avenue, given that coverage and scope across these platforms are now in excess of 300 schools and 50,000 learners.
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