Longhorn Publishers returns to profitability as schools reopen

Longhorn Publishers, a leading African educational content provider, has made a remarkable turnaround in its financial performance, reporting a net profit of 15 million Kenyan shillings in the six months ended December. This positive development marks a significant improvement from the previous year's loss of 145.3 million Kenyan shillings. In a recent interview with CNBC Africa, Group Managing Director and CEO Maxwell Wahome attributed this success to the reopening of schools following the easing of Covid-19 lockdown measures. Maxwell Wahome highlighted the challenging year the company faced due to the pandemic, which resulted in school closures across markets like Kenya and Uganda. However, with the resumption of school activities in Kenya and effective government partnerships in Uganda, Longhorn Publishers experienced a boost in revenue. Uganda, even during extended school closures, accounted for 30% of the total revenue in the six-month period. Tanzania also showed strong performance, contributing to year-on-year growth. Looking ahead, Longhorn Publishers is optimistic about a stronger second half of the year. While the company is not issuing interim dividends at the moment, Wahome emphasized the focus on building sustainable cash flows. The reduction in finance costs by 31% and borrowings by 22.3% reflects the company's efforts to improve its financial position. The generated cash from operations has seen a significant increase compared to the previous year, enabling the company to repay loans and reduce debt levels. In response to challenges such as rising costs of inputs like printing paper, ink, and freight, Longhorn Publishers, as a member of the Kenya Publishers Association, has engaged with the government to address these concerns. Wahome stressed the importance of adjusting book prices to ensure the sustainability of the business amidst cost fluctuations and currency depreciation. With a strategic focus on enhancing operations across its regional markets, including Cameroon, Longhorn Publishers is confident in its growth trajectory. The company's investments in the region are starting to yield positive results, setting the stage for a promising financial outlook. In conclusion, the resurgence of Longhorn Publishers from a period of losses to profitability underscores the resilience and adaptability of the company in navigating challenging business environments. As schools continue to reopen and educational activities resume, Longhorn Publishers is poised to capitalize on these opportunities and drive further growth in the educational content market.