Longhorn plunges into Sh145m half-year loss

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Longhorn publishers have plunged into an Sh145.3 million loss in the six months to December 2020. This loss is attributed to the disruption of learning that was a result of the Covid-19 pandemic.

The publisher reported a net profit of Sh68.96 million in the half-year to December 2019.

“The Group revenue declined compared to the same period last year mainly attributable to the closure of schools for the entire period,” Longhorn noted in a statement on Friday.

In Kenya, the closure of schools as a result of the first case of coronavirus in March 2020, negatively affected businesses that depended on schools being opened.

The publisher stated that the pandemic and the measures put in place by Kenya and other regional markets where Longhorn operates had an unfavorable impact on its business.

“The group operated under a challenging environment that resulted in a drop in the level of activity during the first half of the year,” it stated.

Nonetheless, in neighboring countries Uganda and Tanzania, sales revenue increased by 263 percent and 19 percent respectively since the education system was not heavily disrupted in the period.

Schools in Uganda were reopened for their candidates in October.

Following the reopening of schools in January, Longhorn expects significant sales in the second half of the year.

“The distribution of secondary school titles in Uganda and competency-based curriculum (CBC) Grade 5 titles in Kenya is scheduled before year-end.

“Tanzania is expected to surpass prior year revenue given the traction being made with various revised and new titles approved for the market,” said Longhorn.

The Nairobi Securities Exchange-listed firm reported an Sh225.9 million loss, the first in eight years, for its full-year to June 2020 net earnings as its revenues were affected by the measures put in place to curb Covid-19.

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Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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