Longhorn rises to profit, warns on VAT

Longhorn Publishers has returned to profit but warned that the recently enacted VAT law will hurt business going forward.

The bookmaker posted a profit of Sh93.9 million in the year ended June compared to a loss of Sh22.5 million same period last year.

The Nairobi bourse listed firm has warned that the introduction 16 per cent value added tax on books is set to slowdown growth and create low uptake of reading materials.

"The recently enacted VAT Act 2013 introduced tax on books. This is expected to slow down business and negatively impact on product volumes uptake," the firm said in a statement.

READ: Publishers raise book piracy alarm over VAT

The bookmaker attributed its performance to aggressive marketing strategies that lead to accelerated sales in Kenya and exports to Uganda, South Sudan, Tanzania and Rwanda.

It has recorded a 33 per cent growth in turnover of Sh1.03 billion from Sh775.6 million in 2012.

The firm will offer dividend of S0.80 per share.

Longhorn's shares has appreciated 37.25 per cent this year closing trading Thursday at Sh14.