Longhorn Publishers has reported its fourth consecutive annual loss for the financial year ending 30 June 2025, as delays in approvals for Competency-Based Curriculum (CBC) materials severely hit sales.
Revenue tumbled 56% to KSh 680 million, down from KSh 1.54 billion, after final curriculum approvals in January 2025 pushed approximately KSh 463 million worth of anticipated orders into the next financial year.
The company’s net loss after tax widened to KSh 261 million, compared to KSh 238 million the previous year. Operating results also deteriorated, shifting from a KSh 165 million profit to a KSh 35 million loss, although the total comprehensive loss narrowed sharply to KSh 5 million, aided by foreign exchange translation gains.
Longhorn attributed the poor performance to substantial investments required for the transition from the 8-4-4 system to CBC. The publisher spent KSh 714 million on new content development, incurred KSh 254 million in asset impairments, and wrote off KSh 149 million tied to outdated materials. Additionally, the rationalisation of early CBC content led to the replacement of initial editions.
Financial Summary (FY2025 vs FY2024)
| Metric | FY2025 | FY2024 | YoY Change |
|---|---|---|---|
| Revenue & Other Income | KSh 679.9 Mn | KSh 1,538 Mn | ▼ 55.8% |
| Cost of Sales | KSh 521.0 Mn | KSh 1,208 Mn | ▼ 56.9% |
| Gross Profit | KSh 158.9 Mn | KSh 330.5 Mn | ▼ 51.9% |
| Operating Expenses | KSh 328.1 Mn | KSh 411.0 Mn | ▼ 20.2% |
| Finance Costs | KSh 203.9 Mn | KSh 204.6 Mn | ▼ 0.3% |
| Loss Before Tax | KSh 373.1 Mn | KSh 285.1 Mn | ▲ 30.9% |
| Income Tax Credit | KSh 111.7 Mn | KSh 47.2 Mn | ▲ 136.6% |
| Loss After Tax | KSh 261.4 Mn | KSh 237.9 Mn | ▲ 9.9% |
| Total Comprehensive Loss | KSh 5.3 Mn | KSh 266.4 Mn | ▼ 98.0% |
| Total Assets | KSh 2,231 Mn | KSh 2,070 Mn | ▲ 7.8% |
| Total Equity | KSh 18.1 Mn | KSh 23.4 Mn | ▼ 22.8% |
| Borrowings (Current) | KSh 442.4 Mn | KSh 1,039.5 Mn | ▼ 57.5% |
| Cash & Cash Equivalents | KSh 89.0 Mn | KSh 8.0 Mn | ▲ 1,008% |
Longhorn Cost Controls and Liquidity
Operating expenses dropped 20% to KSh 328 million, and finance costs remained stable at KSh 204 million. Current borrowings were slashed to KSh 442 million from KSh 1.04 billion following a successful debt restructuring that extended repayment timelines. Cash reserves surged more than tenfold to KSh 89 million.
Outlook
Management expects reduced content development expenditure in the coming year and anticipates a rebound in textbook sales as procurement schedules align with the updated CBC framework.
The company also reported steady growth in its digital learning platforms, now reaching over 300 schools and 50,000 learners, positioning its digital offerings as a complementary revenue stream alongside traditional print materials.
