Longhorn 1H14 EPS climbs 78.2% to KES 0.52 (vs 1H13 EPS 0.29).

Local publisher Longhorn Kenya released its 1H14 performance figures returning with sales rising 6.2% to KES 558m. Sales were driven by government tenders to supply books in Malawi, Rwanda, Tanzania and Uganda. Direct expenses rose 16.5% to KES 276.8m. Marketing as well as school-to-school distribution costs led expenses higher. The business was helped by a reduction in provisions for trading losses which fell 75% to KES 33m. Employee, operational and administrative expenses climbed 64.5% to KES 188m. The company is particularly investing for long term growth and thus its hiring of more personnel, whose benefits are expected in the medium to long term. The Kenya market has continued to face challenges with the introduction of 16% VAT in September 2013 as it widened the textbook to child ratio. In a bid to expand its product offering, Longhorn publishers acquired an additional 43 titles from one of the largest local publishers of revision and other primary and secondary school books, Malkiat Singh in late 2013. Such acquisitions along with electronic publishing are some of the measures that the company hopes will sustain future growth. (Company filing, Standard Investment Bank)