Longhorn Publishers has reported a profit after tax of kes 7.48 million for the first six months ended 30th June 2021 a significant improvement from the loss of Kes 225 million that was recorded during the previous year.
Revenue for the period recorded a 16% increase to Kes 1.244 billion attributed to the business model, strong brand, agile employees and ability to adapt to a changing operating environment.
The publisher reported that Kenya recorded an 18% revenue growth, Tanzania 8% while Uganda recorded 83% for the year.
Operating expenses for the year decreased by 53% to 0.3 billion during the first six months from Kes 0.63 billion recorded during a similar period in the previous year. The decline was attributed to cost containment measures implemented during the year such as renegotiation with suppliers and the streamlining of operations.
Finance costs in the publisher increased by 21% to 0.18 billion during the period ended 31st June 2021 from Kes 0.51 billion posted in 2020. Longhorn Publishers attributed the increase to the investments the Group continues to make in regional expansion, product diversification and the digital transformation journey.
Longhorn publishers also said borrowings and finance costs have reduced by approximately 30% in Q1 of FY 2022.
Profit before tax in the group stood at Kes 17.8 million compared to the prior-year loss before tax of Kes 295 million. This marked a significant turnaround in the business, confirming the resilience of Longhorn’s business model, strong brand, agile employees and ability to adapt to a changing operating environment.
Total assets in the publisher stood at Kes 2.88 billion an 18% increase from Kes 2.45 billion posted during the period ended 30th June 2020.
Longhorn Publishers Outlook
Longhorn publishers said it is upgrading its eLearning and eBook platforms which are anticipated to be launched in Q2 of FY 2022. New products such as SOMO are being developed to serve the ex-curriculum space.
Additionally, the Group stated it will continue to take advantage of opportunities and revenue is expected to grow in the African markets including the DRC and Cameroon, which they entered last year. Plans to enter the Ghana market are at advanced stages.
The board of directors did not recommend the payment of an interim dividend.