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Longhorn half year profits jump 88pc on improved sales

Longhorn Publishers is currently undergoing a leadership transition
Longhorn Publishers is currently undergoing a leadership transition. FILE PHOTO | NMG 

Longhorn Publishers has announced 88.89 per cent growth in its net profit to Sh68.8 million for the six months of trading ended December 2018 lifted by increased sales.

Sales jumped by 35.9 per cent to Sh697.6 million compared to Sh513.46 million recorded in similar period last year. Group Managing Director Maxwell Wahome attributed this to god performance across all its markets.

“This is attributed to the growth of volumes in Kenya and the regional markets. The growth in the regional markets has been driven by continued development of materials for the specific markets,” said Mr Wahome.

Longhorn operates in regional markets such as Rwanda, Uganda, Tanzania, Malawi and Zambia, where it sells text books and referencing materials cutting across primary schools to tertiary level.

The results offer hope for more dividends to Longhorn’s investors who, at the end of this week, are set for Sh0.42 per share dividend totalling Sh115 million against the performance for the financial year ended June 2018.

Operating expenses rose by 24.4 per cent to Sh336.3 million during the half year period. However, the board says that there was improved efficiencies and higher sale of publishing rights in the regional markets which generated higher margins as compared to the normal book sales.

Longhorn has completed the distribution of close to 500,000 copies of text books to public Secondary schools across the country and the board says it is optimistic of a stronger second half.

“The performance for the second half is expected to be positive mainly due to the supply of competency-based curriculum materials for grades 1, 2 and 3,” said the CEO.

The firm has been digitizing most of its books under the digital transformation strategy which has led to packaging of content in mobile platforms, audio and video forms.

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