Closure of schools in its key markets pushed listed Longhorn Publishers Limited to a net loss of KSh 225.87 Million at the close of financial year ended 30th June, 2020.
This dismal performance is compared to the firm’s net profit of KSh 185.1 Million recorded in 2019.
The publisher has had its bottom line hit by containment measures introduced in its key markets in Africa to curb coronavirus spread, including the shut down of schools.
Longhorn is one of the foremost publishers that won tenders to supply learning materials for the newly introduced curriculum-based curriculum(CBC).
The firm recently won a tender to supply Christian Religious Education(CRE) to grade 5 pupils.
It is also a supplier of textbooks to pupils from grade one to four. Grade 5 of CBC was planned for a roll out in January 2020.
Longhorn’s end-year Gross Profit declined from KSh 905.8 Million to KSh 487.3 Million while its balance sheet increased its worth from KSh 2.3 Billion to KSh 2.5 Billion.
Cash and bank balances at close of the financial year was KSh 136.2 Million compared to KSh 95.3 Million at end of the previous period.
Revenue declined to KSh 1.1 Billion from KSh 1.6 Billion and a pre-tax loss of KSh 295.4 Million from a pre-tax profit of KSh 262.9 Million.
The firm made a Total comprehensive loss of KSh 227.9 Million from a Total comprehensive profit of KSh 177.5 Million.
Cash generated from operations declined to KSh 138.5 Million from KSh 177.5 Million in the previous period while cash at the end of the year rising to KSh 115.8 Million from KSh 73.1 Million.
The Group attributes its weak financials to suspension of learning in schools which adversely impacted the business.
The publisher’s revenue for the year decreased by 33% to KSh 1.1 Billion compared to the prior year. While revenue grew 4% in the first half of the year, the virus triggered a 62% decline in the second half.
Despite the challenging environment, Longhorn Publishers generated positive cashflows of KSh 138 Million from normal operations.
The Group has been scaling up its digital learning solutions and plans to roll out several products in the market over the coming months.
The first of these new products is SOMO which focuses on delivering real-world skills to a variety of learners from global experts.
Longhorn Publishers has advanced plans to make entry into DRC and Cameroon, which it says has significant potential.
The firm hopes to realise higher returns from its new products including supply new primary school titles in Uganda, approval of a number of CBC Grade 5 titles in Kenya, additional Tanzania Institute of Education approvals and ongoing delivery of its first orders in Cameroon.
The development of titles is ongoing in all the eight countries in which the publisher operates in.
Shareholders of Longhorn publishers will not receive any final dividend for the year ended 30th June 2020. The firm paid out a total of KSh 142 Million in 2019.
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