Longhorn Publishers has projected revenues of Sh550 million from government contracts in the second half of its fiscal year, boosting its financial outlook. This projection stems from a total target of Sh815 million in government sales, as stated in the company's annual report.
The company's financial performance in the first half of the year was affected by macroeconomic headwinds, resulting in a net loss of Sh193.2 million, wider than the Sh119.6 million loss reported in the same period the previous year. Lower revenues and higher costs contributed to this performance.
Despite the lower revenue, Longhorn expects a strong second half driven by government contract revenue. The company emphasizes the government's role as its primary customer and the importance of government sales to its operations.
In the first half of the fiscal year, Longhorn's sales declined by 10.41%, largely due to accounting restatements and a delay in textbook distribution to the government. However, the company has implemented cost rationalization measures, resulting in a 25% reduction in operating expenses.
Looking ahead, Longhorn expresses confidence in its business recovery strategy, which involves lean operations, growth in CBC book market share, and digitalization. The company's financial performance will be closely monitored in the second half of the fiscal year, with the government contract revenue expected to play a significant role in its financial health.