Longhorn profits decline on poor regional sales

 

Longhorn Publishers Chairman Hon Francis Nyammo (left), Head of Finance and Strategy Nicholas Ouma (centre) and the Group Managing Director Simon Ngigi during the release of firm's financial results on September 24, 2015. PHOTO | DIANA NGILA | NATION MEDIA GROUP

In Summary

• The publishing group recorded a 24.4 per cent decline in an after-tax profit of Sh71.7 million against Sh94.9 million recorded over similar period last year.
• Its directors did not recommend dividend payments.
• The decline was driven by poor performance in its Tanzania and Uganda subsidiaries and overall reduced book purchases in the regional market.

By BRIAN NGUGI
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Longhorn Publishers has announced a profit dip for the year ending June 2015, in what management calls poor performance in subsidiaries in Uganda and Tanzania.

The publishing group recorded a 24.4 per cent decline in an after-tax profit of Sh71.7 million against Sh94.9 million recorded over a similar period last year.

The group sales revenue also dropped to Sh848 million, compared with the previous year’s Sh1.396 billion.

SUBSIDIARIES

The decline was driven by poor performance in its Tanzania and Uganda subsidiaries and overall reduced book purchases in the regional market.

“To secure better profits in future, the company has developed strategies centred on creating sustainable growth through product diversification and geographical growth,” explained Managing Director Simon Ngige.

In line with this, he said the company has acquired exclusive distribution rights for three core products: the Cambridge Learners Dictionary and the Cambridge Advanced Learners Dictionary as well as School RSV Bibles from the Bible Society of Kenya.

The company has also made strategic investments in Uganda and Rwanda by acquiring new premises to serve as Longhorn’s permanent office blocks.

“This continues to demonstrate Longhorn’s commitment in growing its operations within these two countries,” explained company chairman Francis Nyammo.

“Significant investments have also been made to support the selling process and we believe that with this and the aggressive sales strategy that has been adopted, the company will record positive sales growth and profitability in the coming year,” he added.

DIGITAL PUBLISHING

In an effort to boost its products, Longhorn has reinforced its digital publishing section as it continues to grow the e-learning section of the business.

Ngige disclosed that 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 its e-learning materials within Africa and beyond.

Its directors did not recommend dividend payments.