Longhorn Publishers Plc will not pay dividends for FY21 to its shareholders even after posting a net profit of KSh15 million in the year ended December compared with a Ksh 145 million loss in 2020.
Sadly for the shareholders, there is no certainty if the firm will pay a dividend.
The improved growth in profit is being attributed to higher sales which surged to KSh960.9 million due to increased purchase of books and other learning materials.
“Across our various markets, we have seen a gradual improvement in the trading environment which supported the overall positive half-year performance of the Group,” Longhorn said in a statement.
“In Kenya, the government’s support for uninterrupted learning in schools, the new school calendar year in July 2021 and a gradual economic recovery drove the recovery of sales in our largest market.”
“This was primarily driven by the expansion into new geographical markets. This growth is sustainable as we realise the investments previously made to develop new markets and as restrictions ease.”
Operating expenses increased by 65 per cent to KSh236.1 million, mainly attributed to the reinstatement of staff benefits that had been cut as a response to the pandemic’s economic crisis.
We are on Telegram. Click here to join our channel and stay updated with the latest East African business news and updates.