Learn Africa Plc (NGX: LEARNAFRCA), formerly Longman Nigeria Plc has posted a profit after taxation of N429.53mn for the financial year ended 31 March, 2023.
Also read; List of Dividends announced in 2023, qualification and payment dates
A review of the financial statements posted on The Nigerian Exchange showed that the company, which is primarily engaged in the business of publishing and distribution of educational materials, achieved a 7% growth in profit after tax for the year, despite a 6% drop in its turnover.
While its turnover dropped from N3.69bn to N3.47bn, its profit after taxation grew from N401.58mn to N429.53mn.
The Directors, in submitting to the shareholders the financial statements for the year ended 31 March 2023, proposed the payment of a dividend of 25 kobo per ordinary share of 50 kobo each for the year ended 31 March 2023.
For the 2022 financial year, the publishing company paid out a total of N115.71mn as dividend, and will be increasing it by 33% in 2022 with the proposed 25 kobo dividend which will amount to N154.29mn.
In 2022, the company declared and paid a final dividend of 20 kobo per 50 kobo ordinary share for the financial year ended 31 March 2022.
Review of the Financial Statements
Income Statement:
- Turnover/Revenue: The company’s turnover dropped by 6% from N3.69bn to N3.47bn. The revenue was earned from four geographical markets according to the report; Western Zone – N1.19mn (2022: N883.91mn) Head office – N932.40mn (2022: N1.57mn), Northern Zone – N756.35mn (2022: N703.89mn) and Eastern Zone – N590.93mn (2022: N537.76mn).
- Cost of sales: Learn Africa spent N1.56bn on sales cost, a drop from the N1.96bn it spent in the preceding year. A significant portion of this cost was the cost of publications which too N1.26bn (2022: N1.69bn), followed by royalties which took N278.97mn (2022: N212.71mn).
- Distribution and selling expenses: N652.22mn was sent on this item, an significant increase from the N480.37mn spent in the preceding year. Employee benefits and advert & publicity were the highest expense items with N287.08mn (2022: N178.79mn) and N103.79mn (2022: N87.51mn) respectively. The employee benefit expenses consisted of N213.49mn salaries and allowances, N64.53mn performance incentives, and N9.05mn pension contribution.
- Administrative Expenses: The administrative expenses decrease year on year from N725.86mn in 2022 to N693.81mn in 2023. Employee benefits was again the biggest item on the expense list with N216.45mn (2022: N336.21mn).
- Profit Before Income Tax: N606.73mn, a 6% growth from the N574.23mn posted in 2022.
- Profit After Tax: N429.53 million, compared to N401.58 Million in 2022.
- Earnings Per Share: N0.56, compared to N0.52 in 2022.
Balance Sheet:
- Total Assets: N5.19 billion, compared to N4.94 billion as at 31st March 2022, a 5% increase. Inventories contributed N2.22bn to the total assets while cash and cash equivalents contributed N1.05bn. Trade and other receivables accounted for N799.40mn.
- Total Liabilities: N1.40 billion, compared to N1.42 billion as at 31st March 2022. Trade and other payables accounted for N1.01bn of the total liabilities. The only debt the company is a current borrowing of only N2.28mn on its books.
- Shareholders’ Fund: stood at N3.78 billion, compared to N3.51 billion as at 31st March 2022.
- Retained earnings: N1.39 billion, against N1.12bn as at 31st Mar. 2022.
Cashflow:
- Operating activities: net cash of N1.13 billion was generated from operating activities, against N22.35 million used in 2022.
- Investing activities: net cash of N191.12 million was used in investing activities, against N59.75 illion used for the same activity in 2022.
- Financing activities: net cash of N166.23 million was used in financing activities, against N151. 82 million used in 2022.
- Cash and cash equivalents at the end of the period was N1.05 billion.
About the Company
Learn Africa Plc is a leading learning resource business in Nigeria, with a history spanning over 50 years. The company was established in 1961 as Longman Nigeria – a book publishing firm wholly owned by Longman Group UK Limited, now Pearson Education.
On July 23, 1996, the shares of Longman Nigeria Plc were listed on the Nigerian Stock Exchange. In 2008, the company became a subsidiary of Pearson Plc following the latter’s increase in its shareholding from 29 to 51 percent.
In 2011, however, Pearson and Longman Nigeria mutually agreed to become separate corporate entities in Nigeria. The main business of Learn Africa Plc is the publication and marketing of textbooks for the entire gamut of the educational system – nursery, primary, secondary and tertiary.
The registered office is located at 52, Oba Akran Avenue, Ikeja, Lagos in Nigeria.
Learn Africa has 771,450,000 Outstanding shares of 50 kobo each.
The Register of Members shows that as at 31 March 2023, only three persons held more than 5% of the Company’s shares; one person Iwerebon Emeke Felix held 13.73%, Mr Fredrick E. Ijewere held 6.23% and Estate of Ade-Ajayi Jacobs Festus held 5.50% of the Company’s shares while fourteen (14) members held between 1% and 5%. Other shareholders held less than 1% respectively.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
