Longhorn Publishers Issues Profit Warning

Longhorn Publishers Plc has issued a profit warning for the year ending June 30, 2023.

In a statement, the publishers attributed the dip in profits to the increased cost of paper among other reasons.

“Longhorn Publishers Plc makes this announcement to the shareholders, our partners and the general public pursuant to the provisions of the Fifth Schedule of the Capital  Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002,” the statement read in part.

“The Board of Directors, having reviewed the Company’s performance forecast, has determined that the earnings for the financial year ending 30 June 2023 will be lower than the earnings for the previous year by at least twenty-five per cent.”

Longhorn says the cost of paper has increased by over 75 per cent in the last 12 months which has been the major factor for profit drops.

Other reasons given by the publisher include currency depreciation, lifting of the interest rate restrictions in the second half of the financial year, shrinkage of consumer wallets arising from the rising cost of living and a general slowdown in business during the election period.  

“The company continues to take the necessary actions during this challenging period to ensure operations continue in a cost-efficient manner and the implementation of the strategic initiatives remains on course,” the publisher added.

Some of the cost-cutting measures proposed by Longhorn management include exiting markets with low economic prospects, focusing on high-margin products and lean operating model in all countries.