We have extracted a Chairman’s Statement from 2019 half year interim report for Longhorn Publishers Plc (LKL.ke), listed on the Nairobi Securities Exchange:
Longhorn has recorded a turnover of Ksh 1.60 billion against the previous year turnover of Ksh 1.69 billion. This reduction in revenue was attributed to a decline in government spending on textbooks. The profit after tax for the financial year ended 30 June 2019 was Ksh 185 Million, an increase from Ksh 183 Million from the previous financial year. This improved performance in profit, despite the reduction in revenue generated, was as a result of operational efficiencies achieved through improvements in the product cycle which has consequently reduced product origination and printing costs, resulting in a 7% increase in operating profit margins.
Regional markets contribution to overall revenue increased by 41%. This was brought about by the successful implementation of the 2018-2021 Strategic Plan which focuses on product diversification for the regional markets. The Company’s liquidity position remains strong with positive cash position of Ksh 73M. The cashflow position has decreased due to some significant receivables expected from recently concluded cont