NSE Kenya listed Publisher, Longhorn has recorded a 70% growth in after-tax profit of Ksh 67.8 Million for the six months ended December 2015 against Ksh 39.9 Million posted the previous year in the similar period.
The jump in profits was mainly attributed to a 56 per cent jump in turnover whereby it recorded sales worth Ksh 831 Million compared to Ksh 531 Million posted in the same period in 2014.
The publisher also says the increased earnings was due to the diversification to produce digital learning tools and content.
“The board is optimistic that the company will achieve positive results in the second half of the year following demand for increased digital offering as well as progressive growth in performance of subsidiary companies” Read a statement from the board
Longhorn’s current assests stood at Ksh 1.69 Billion against 2014’s valuation of Ks 1.01Billion.
The board did not recommend any dividend.
Share Price Performance
Longhorn which became the first publishing firm in Africa to be listed at a securities exchange in 2012 listed 58.5 million shares at an introductory price of Sh14 per share.
Looking at the chart below, counter is currently down by 43.85% YTD at a price of Ksh 5.25
However, with Centum Investment as one of its major shareholders,Longhorn will adapt to the changes in the market and perform in the long run.
The drop in share price could be attributed to Longhorn the missing out Kenya Government project to supply, instal and commission the Digital Learning Solution — laptops — for the 22,000 public primary schools and investors are worried about Longhorn’s plan to raise Sh500 million through a rights issue to fund its product and regional expansion plans.
