Longhorn Publishers Plc has reported a net loss of Sh949.7 million for the financial year ended June 30, 2026, despite recording a 21 per cent increase in revenue, as curriculum-related impairment charges and higher operating expenses weighed on its financial performance.
The Nairobi Securities Exchange-listed publisher's audited financial results show that revenue increased to Sh811 million from Sh672.1 million in the previous financial year, supported by expanded market coverage and improved sales.
However, the company's net loss after tax widened from Sh261.4 million in the year ended June 2025 to Sh949.7 million in the latest period.
Its total comprehensive loss, which includes other comprehensive income and expenses, stood at approximately Sh1.046 billion, compared with Sh5.3 million in the previous financial year.
Longhorn attributed much of the deterioration to impairment losses arising from changes in the education curriculum and the derecognition of previously recognised deferred tax assets.
In its commentary, the company said the financial year was characterised by continued implementation of the revised curriculum in its key markets, delays in institutional procurement and constrained funding for the business.
Despite the challenges, it said it had continued to strengthen its market presence, expand customer reach and position the business for renewed growth.
“Revenue for the year increased by Shs 139 million, representing growth of 21 per cent compared to the previous year, driven primarily by expanded market coverage and improved sales performance,” the company said.
The publisher's cost of sales increased substantially, reflecting the impact of impairment charges on its financial position. The company reported impairment losses of about Sh460 million associated with curriculum-related investments.
The charges contributed to a gross loss of approximately Sh102.8 million, reversing the gross profit of Sh151.1 million recorded in the previous financial year.
However, excluding the impairment losses, Longhorn said its gross profit improved to Sh357.5 million from Sh288.6 million in 2025.
Operating expenses also rose by 23 per cent, mainly due to increased promotional expenditure aimed at supporting revenue growth and impairment losses linked to curriculum changes.
The company maintained that its underlying operating performance had improved when the exceptional impairment charges were excluded, moving from an operating loss in the previous year to an operating profit.
Finance costs declined to approximately Sh182.2 million from Sh203.9 million, although the reduction was insufficient to offset the impact of the other expenses.
Longhorn said the impairment of investments tied to the previous curriculum had affected its reported results but was necessary to complete the transition and establish a stronger foundation for future growth.
“While the impairment of old curriculum-related investments impacted the reported results for the year, it represents an important step in completing the transition and creating a cleaner platform for the next phase of growth.”
The financial results come against the backdrop of changes in Kenya's education system, which have required publishers to revise learning materials and develop content aligned with the Competency-Based Education.
Longhorn has previously faced financial pressure associated with curriculum transitions, including the cost of developing new learning materials and delays in institutional procurement.
The latest results also reveal pressure on its balance sheet. Total assets declined to approximately Sh1.33 billion from Sh2.23 billion in June 2025, while shareholders' equity moved from a positive Sh18.1 million to a deficit of about Sh1.03 billion.
Cash and bank balances fell sharply to approximately Sh4.2 million from Sh89 million a year earlier. The group also recorded a net cash outflow from operating activities of Sh36.7 million, compared with a net inflow of Sh337.3 million in 2025.
Looking ahead, Longhorn said it would focus on operational discipline, product diversification and expanding its market reach.
It also plans to grow its digital learning solutions through LoHo Learning, broaden its customer base and strengthen its portfolio of curriculum-aligned intellectual property.
The company said the completion of key curriculum revisions provided a platform for renewed sales momentum, while product innovation and improved subsidiary performance were expected to support revenue growth and cash generation.