NAIROBI, Kenya, June 10-NSE listed company Longhorn Publishers has issued a profit warning for its financial year ending June 30, 2020.
The Board Chairperson Longhorn Publishers’ FT Nyammo on Tuesday linked the expected reduced earnings on the closure of schools owing to the coronavirus pandemic that has disrupted the business.
“The COVID-19 crisis and the related mitigating measures implemented by government in the regions where Longhorn operates, including the suspension of learning in schools, have had an adverse impact on the business on the performance of the year,” said Nyammo in a statement.
It is for this reason that the board of directors has been forced to revise its expectations for earnings generated by the end of the current financial year.
“The board of directors having reviewed the group’s performance forecast has determined that the earnings for the financial year ending June 30, 2020 will be lower than the earnings for the previous year,” reads the firm’s statement.
The company said that it is however focused towards scaling and fully optimizing its digital learning solutions to support recovery of the group’s performance.
For its 2018 results, the company recorded a profit before tax of Sh92.2 million in the second half of 2019.
This was driven by the significant rise in sales of products such as ‘Kamusi ya Karne’ and the Comprehensive Atlas due to the improvements made and aggressive marketing push over the last 12 months.
Schools in Kenya will re-open at the beginning of September after closing for five months due to COVID-19.
On Saturday, President Uhuru Kenyatta said he expects progressive normalcy to resume in the education sector by September 1 and has directed the Education Ministry to consult with the Health experts to come up with a new calendar by mid-August.