NAIROBI: Listed publishing firm, Longhorn Publishers Limited, has recorded an after-tax operating profit of Sh71.7m against the previous year’s profit of Sh94.9 million.
“The reduction in the turnover was mitigated by significant saving in the company’s selling and distribution costs in the export markets," the board said in a statement jointly signed by the chairman and the group’s managing director Simon Ngigi.
"Despite a significant growth in the bottom line in Kenya, the group sales revenue dropped to Sh848m, compared to the previous year’s Shs1.396b. The 39 per cent dip was driven by low performance in the Tanzania and Uganda subsidiaries as well as reduced book purchases in the regional market,” they explained.
The firm has, however, developed strategies centered on creating sustainable growth through product diversification and geographical growth to secure better profits in future.
"To this end, the company has acquired exclusive distribution rights for three core products, namely the Cambridge Learners Dictionary and Cambridge Advanced Learners Dictionary as well as School RSV Bibles from Bible Society of Kenya,’’ added the statement. The firm has made strategic regional investments in Uganda and Rwanda by acquiring new premises to serve as permanent office blocks.
"This continues to demonstrate Longhorn’s commitment in growing its operations within these two countries.’’
The directors explained that significant investments had been made to support the selling process that will see the group record positive sales growth and profitability next year.
"Longhorn has reinforced its digital publishing section as it continues to grow the e-learning section of the business. All Longhorn books are currently available in digital format and the company is working closely with its technology partners to ensure that there is a high penetration of our e-learning material within Africa and beyond,’’ explained the directors.
