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 contracts.
As we embark on the new financial year, Longhorn continues to make significant investment in growing its digital product offering as well as expanding into new territories with special focus on Francophone countries, which Longhorn seeks to enter through strategic alliances. Longhorn remains committed to its vision to be the leading provider of innovative learning solutions in Africa.
The Directors are pleased to recommend the payment of a final dividend of Ksh 0.52 per share, totalling Ksh 142,548,000 for the year ended 30 June 2019. The dividend is subject to approval by the shareholders at the 2019 Annual General Meeting and will be paid on or before 26 February 2020.
Closure of register
The Register of Members will be closed at the close of business on Thursday, 28 November 2019 for purposes of determining shareholders’ entitlement of dividends.
Annual General Meeting
The Annual General Meeting will be held on Thursday,28 November 2019.
Hon.Francis T. Nyammo OGW,MBS