, NAIROBI, Kenya, Sept 20 – Longhorn Kenya Limited has announced a Sh93.9 million full year net profit ending June 2013 from a loss of Sh22 million in 2012.
The local publisher says the return to profitability was highly driven by a 33.2 percent jump in sales to Sh1 billion.
The increase in sales was due to improved results from marketing activities in Kenya and export sales to Uganda, South Sudan, Tanzania and Rwanda.
Gross margins improved from Sh337 million to Sh471 million with a number of cost reductions in administrative, selling and distribution expenses weighing in positively on the net profit.
“The second half reignited the business momentum, spurred by growing middle class with disposable income and responsive donor funding in the regional markets,” the company said in a statement.
Going ahead, the firm announced plans to enter the Somalia market to cut dependence on Kenya that accounts for 80 percent of its sales.
The directors have recommended a first and final dividend payout of 80 cents amounting to Sh46.8 million.
Book’s closure for dividend will be on November 15, this year with payment being made in February 15, 2014.
While Longhorn Kenya Ltd sees the recently enacted VAT Act which introduced the tax on books as a damper to volume growth, the company expects this to be cushioned by a robust micro-environment in Kenya and the regional markets.
Longhorn is also positioning itself to tap into the Kenya governments focus on digitized content by investing on quality e-learning content and digital instructional materials.