Longhorn bounces again to profit after colleges reopen

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Friday September 17 2021

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Longhorn Publishers Neighborhood Managing Director Maxwell Wahome. FILE PHOTO | NMG

Longhorn Publishers #ticker:LKL has swung again to profit utilizing on increased gross sales following the reopening of faculties after easing of Covid-19 lockdown measures.

The creator posted Sh7.5 million glean profit for the full year to June this year, making improvements to from Sh226 million loss in 2020.

The return to profitability came as revenues rose by 16.5 percent to Sh1.24 billion within the year supported by colleges reopening within the 2d half working between January and June, which noticed the increased distribution of competency-based fully mostly curriculum (CBC) books in Kenya and other studying materials.

“Kenya and Uganda began the year with colleges’ closure and motion restrictions as piece of the pandemic containment measures. Overall, the worldwide locations where Longhorn operates were adversely impacted by Covid-19,” acknowledged Longhorn.

Longhorn had sunk into a Sh145.3 million loss within the first half to December 2020 following the disruption of studying.

Regional gross sales

Uganda posted an 83 percent upward thrust in gross sales earnings of extra than Sh110 million as Kenya and Tanzania noticed a upward thrust of 18 percent and eight percent, respectively.

Longhorn board has frozen dividend payout for the 2d year following the industry efficiency within the Covid-19 atmosphere.

Finance costs increased by 21 percent to Sh183.2 million, mainly attributable to borrowings to pork up the regional expansion, product diversification and digital transformation.

“Administration intends to prick again the mortgage balances gradually because the Neighborhood’s efficiency improves. Borrowings and finance costs possess reduced by roughly 30 percent in Q1 of the financial year 2022,” acknowledged the creator.

Longhorn plans to expand its regional presence to Ghana after entry into the Democratic Republic of Congo and Cameroon final year.

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