Longhorn Publishers Ltd has announced its first-half financials for the period ending 31st December 2017.
Sales declined 25 percent on a year-to-year basis in what the company attributes to a new procurement framework by the Government that caused a shift in buying patterns.
Operating expenses declined 12 percent on a year-to-year basis. Operating margin improved by 150bps depicting improved operational efficiency by the firm.
In line with the publisher’s strategy to have a regional footprint, LKL expects to improve sales from contracts to supply Rwanda and South Sudan Governments as well as supplies to Senegal later in 2018.
LKL is also looking to grow its digital space, riding on the implementation of ICT in Primary Education which will increase readership while cutting on costs eg distribution costs.
“We expect to see stronger full-year results on the back of an expected robust second half if LKL is able to meet all its supplying obligations. The board of Directors does not recommend paying for an interim period. The counter is currently trading at KES 5.35 and continues to attract retail investors,” said analysts from Genghis Capital.