Longhorn Publishers has recorded Ksh15 million before tax for the six months ended December 31, 2021, turning around from Ksh145 million loss for the corresponding period in December 2020.
Revenue for the six-month period recovered robustly with an increase of Ksh672 million, representing a 233 percent growth, compared to the previous period. This was primarily driven by the expansion into new geographical markets.
Operating expenses grew from Ksh143 million to Ksh236 million in the period under review. The increase in operating expenses was mainly attributed to the reinstatement of staff benefits that had been reviewed as a response to the Covid pandemic.
Finance costs reduced by 31 percent from the prior period on account of a 22 percent reduction in borrowings, in line with the strong performance in operational cash generation. Cashflows from operations amounted to Ksh301 million compared to outflows of Ksh167 million in the prior period. This is reflective of increased collections from customers as the markets recover.
“The business is pursuing strategic partnerships for its digital portfolio. This is a strategy that will allow our current and new business to scale up as we partner with like-minded Venture Builders, Venture Capitalists and other relevant alliances. The focus is to ensure that the business fully exploits the huge potential in EdTech across the continent. Longhorn is uniquely positioned to maximize on this potential,” said Group chairman Francis Nyammo.
The group has announced new additional title approvals secured in the first half of the financial year, such as CBC Grade 6 and Set books in Kenya, 51 secondary titles in Uganda and nine titles in the Democratic Republic of Congo (DRC)
“We are now looking forward to a major launch of the revised Kamusi Kuu in Tanzania, approvals for CBC Grade 7 and complementary titles in Kenya and several titles in Cameroon,” added Nyammo.
“Our successful market entry into Cameroon followed by DRC and Ghana adds significant coverage to our existing markets. This will position the Group as the main Pan-African platform to access over 100 million learners across the continent. Our digital solutions will further enable us to scale the range of solutions provided in the market. The recent addition of new businesses segments (Language Services, Publishing Services and international titles distribution) will broaden our reach outside the textbook business. It will also create a network of interdependent
businesses that leverage on the existing value chain. This integration of several solutions across Africa is the key to unlocking the full potential of our Group.”