Longhorn Publishers reported a net loss of Ksh571.33 million for the year ended June 2023, the worst since it was listed on the Nairobi Securities Exchange in May 2012.
The loss was nearly seven times higher than the restated loss of Ksh84.5 million in 2022, which was revised from a net profit of Ksh39.9 million.
According to the publisher, “Various macroeconomic headwinds over the past year have had a significant impact on our business. We have seen rising inflation, an increase in interest rates, currency depreciation, and a general economic slowdown across our markets which has resulted in a drop in spending on textbooks.”
Longhorn also faced delays in releasing its full-year results due to consultations on an accounting standard that had a material impact on its financial statements.
Its revenue declined by 27.3 per cent to Ksh1.07 billion, mainly due to delays in government procurement and restatements in previous years.
The publisher’s operating expenses increased by 49.5 per cent to Ksh637.8 million, as printing costs rose by 70 per cent and reduced its gross margins from 32 per cent to 18 per cent. It also incurred one-off costs such as goodwill impairment, restructuring costs and pre-publication costs write-offs from the old curriculum.
Longhorn’s finance costs rose by 37 per cent to Ksh182.18 million due to increased borrowings to fund curriculum development in the region and higher interest rates.
The publisher said it was investing in the new education curriculum and expected to reap economic benefits once the development is completed by 2026.
“We are confident that the business will recover in the coming year as we fully implement our lean business model and digital strategy,” said the publisher.
