Longhorn Publishers Posts Pre-Tax Profit of Ksh 139.M

Longhorn Publishers (NSE: LKL) have posted a Pre-tax profit of KSH139 Million  for its Financial Year ended June compared to Ksh96.9 Million in 2015.

The turnover grew from Ksh848M to Ksh1,503M mainly attributed to good uptake of reference products.

Operating expenses were up by 59.79 percent to KSh 594.41M from Ksh 371.99M the previous year.

Gross profit was down 37.17 percent to Ksh 474.65M from Ksh 755.43M the previous year as a result of the cost of sales which edged up 100.17 percent to Ksh 748.08M.

The group also posted sales Ksh 1.50 billion compared to KSh 848.4 million in 2015 thus, recommending a payment of first and final dividend of Ksh 0.35 per share, payable on or before December 30, 2016 subject to the approval of its shareholders.

“The growth in both revenue and profit was attributed to the achievement of the company’s strategies of product and geographical diversification,” said Simon Ngigi, Group Managing Director in a statement.

“The board is happy that the company is on track with its strategic objectives.”

The company had a successful Rights issue in April 2016 whose proceeds raised have been used to increase the digital content offering, innovation and strategic alliance.

Product diversification also made the group to realize a 70 per cent increase in net profit of KSh 67.8 million net profit for the six months period ending December 31, 2015, compared to Sh 39.9 million posted similar period in the previous financial year.