Longhorn via The Board Chairperson FT Nyammo on Tuesday announced a profit warning for its financial year ending June 30, 2020, citing the closure of schools in Kenya and other regional markets where it operates owing to the coronavirus pandemic.
“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,” the statement read.
“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.”
This will mark the first time in five years for the NSE-listed firm to fail to record profit growth.
The firm has, however, said that it is focusing on scaling and fully optimizing its digital learning solutions to support recovery of the group’s earnings.
In 2019, Longhorn recorded a profit before tax of Sh92.2 million. Due to the coronavirus pandemic, Schools in Kenya are expected to re-open at the beginning of September after closing for five months.
This was after President Uhuru Kenyattaannounced schhols are expected to progressive resume by September 1 and directed the Education Ministry to consult with the Health experts to come up with a new calendar by mid-August.
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