TIDMBMY
RNS Number : 3157R
Bloomsbury Publishing PLC
26 October 2023
BLOOMSBURY PUBLISHING PLC
("Bloomsbury" or "the Company")
Unaudited Interim Results for the six months ended 31 August
2023
Record first half earnings
Fourth consecutive double-digit growth in revenue and profit in
the first half
Interim dividend increased
Bloomsbury Publishing Plc (LSE: BMY), the leading independent
publisher, today announces unaudited results for the six months
ended 31 August 2023.
Commenting on the results, Nigel Newton, Chief Executive,
said:
"Bloomsbury achieved our fourth consecutive double-digit growth
in revenue and profit in the first half. These are also our highest
ever first half results, with year-on-year revenue growth of 11% to
GBP136.7 million and profit growth of 11% to GBP17.7 million. These
results demonstrate the strength of our strategy of publishing for
both the consumer and academic markets.
Fantasy is a huge and increasingly popular genre which has
driven forward our consumer division. Sales of Sarah J. Maas and
Samantha Shannon grew 79% and 169% respectively in the period and
demand for Harry Potter, 26 years after publication, remains
strong.
The Consumer division revenue grew by 17%, achieving a 26%
increase in profit before tax and highlighted items(1) to GBP11.2
million. Bloomsbury Digital Resources ("BDR") consolidated last
year's exceptional growth and increased subscription revenue to
47%. The Non-Consumer division's resilient performance with 2%
revenue growth and GBP5.9 million of profit before tax and
highlighted items(1) continued to demonstrate the strength of our
long term academic strategy.
Since the period end, Bloomsbury author Jon Fosse won the most
important prize in the literary world, The Nobel Prize in
Literature, becoming the eighth Nobel Prize winner on Bloomsbury's
Methuen Drama list.
Bloomsbury's successful strategy of diversifying across formats,
markets and territories has created a stronger and more balanced
business and a smoother earnings profile across the year.
Recognising this, and in view of a better balance between sales in
the first and second halves of the year than in the past when we
were more heavily weighted to the second half and the Christmas
market, we are increasing the proportion of the full year dividend
paid at the interim. In line with this rebalancing and our dividend
policy, the Board has increased the interim dividend to 3.70 pence
per share, compared to 1.41 pence per share for the six months
ended 31 August 2022. We maintain our overall dividend guidance for
the full year.
The strong first half performance means that we are confident of
achieving the Board's expectations for the year ending 29 February
2024. Our strong financial position, with net cash of GBP39.1
million, gives us significant opportunities for further
acquisitions and investment in organic growth.
Note
The Board considers current consensus market expectation for the
year ending 29 February 2024 to be revenue of GBP273.1 million and
profit before taxation and highlighted items of GBP32.5
million.
Financial Highlights
2023 2022 2021 Growth Growth
2023 2023
vs 2022 vs 2021
GBP136.7 GBP122.9 GBP100.7
Revenue million million million 11% 36%
----------------- ------------- ------------- --------- ---------
Profit before taxation
and highlighted items GBP15.9 GBP12.9
(1) GBP17.7 million million million 11% 37%
----------------- ------------- ------------- --------- ---------
GBP12.9 GBP11.1
Profit before taxation GBP14.0 million million million 8% 26%
----------------- ------------- ------------- --------- ---------
Diluted earnings per
share, excluding highlighted
items(1) 17.47 pence 15.30 pence 12.82 pence 14% 36%
----------------- ------------- ------------- --------- ---------
Diluted earnings per
share 13.66 pence 12.30 pence 10.41 pence 11% 31%
----------------- ------------- ------------- --------- ---------
GBP41.5 GBP43.7
Net cash GBP39.1 million million million (6)% (10)%
----------------- ------------- ------------- --------- ---------
3.70 pence 1.41 pence 1.34 pence
Interim dividend per share per share per share 162% 176%
----------------- ------------- ------------- --------- ---------
Operational Highlights
Consumer Division
-- Strong Consumer revenue growth of 17% to GBP89.4 million (2022: GBP76.3 million)
-- Consumer profit before taxation and highlighted items (1)
increased by 26% to GBP11.2 million (2022: GBP8.9 million)
-- Adult Trade revenue up 8% to GBP27.6 million (2022: GBP25.7
million) and profit before taxation and highlighted items(1) of
GBP0.1 million (2022: GBP0.2 million)
-- Children's Trade revenue growth of 22% to GBP61.7 million
(2022: GBP50.6 million) and profit before taxation and highlighted
items (1) up 29% to GBP11.1 million (2022: GBP8.7 million)
-- Sales growth of Sarah J. Maas' titles of 79%; Harry Potter
sales were strong 26 years after it was first published
Non-Consumer Division
-- Non-Consumer revenue growth of 2% to GBP47.3 million (2022: GBP46.6 million)
-- Non-Consumer profit before taxation and highlighted items(1)
of GBP5.9 million (2022: GBP7.1 million)
-- Academic & Professional revenue of GBP36.4 million (2022:
GBP36.5 million) and profit before taxation and highlighted
items(1) of GBP5.9 million (2022: GBP7.3 million)
-- Bloomsbury Digital Resources ("BDR") revenue of GBP13.3 million (2022: GBP13.6 million)
-- On track for our new BDR target of 40% organic revenue growth over the five years to 2027/28
Notes
(1) Highlighted items comprise amortisation of acquired
intangible assets and legal and other professional costs relating
to ongoing and completed acquisitions and restructuring costs.
For further information, please contact:
Bloomsbury Publishing Plc
Nigel Newton, Chief Executive nigel.newton@bloomsbury.com
Penny Scott-Bayfield, Group penny.scott-bayfield@bloomsbury.com
Finance Director
Hudson Sandler +44 (0) 20 7796 4133
Dan de Belder / Emily Brooker bloomsbury@hudsonsandler.com
The information in this announcement has not been audited or
otherwise independently verified and no representation or warranty,
express or implied, is made as to, and no reliance should be placed
on, the fairness, accuracy, completeness or correctness of the
information or opinions contained herein. None of the Company or
any of its affiliates, advisors or representatives shall have any
liability whatsoever (in negligence or otherwise) for any loss
whatsoever arising from any use of this announcement, or its
contents, or otherwise arising in connection with this
announcement.
Certain statements, statistics and projections in this
announcement are or may be forward looking. By their nature,
forward--looking statements involve a number of risks,
uncertainties or assumptions that may or may not occur and actual
results or events may differ materially from those expressed or
implied by the forward-looking statements. Accordingly, no
assurance can be given that any particular expectation will be met
and reliance should not be placed on any forward-looking statement.
Accordingly, forward-looking statements contained in this
announcement regarding past trends or activities should not be
taken as representation that such trends or activities will
continue in the future. You should not place undue reliance on
forward-looking statements, which are based on the knowledge and
information available only at the date of this announcement's
preparation.
The Company does not undertake any obligation to update or keep
current the information contained in this announcement, including
any forward--looking statements, or to correct any inaccuracies
which may become apparent and any opinions expressed in it are
subject to change without notice.
References in this announcement to other reports or materials,
such as a website address, have been provided to direct the reader
to other sources of information on Bloomsbury Publishing Plc which
may be of interest. Neither the content of Bloomsbury's website nor
any website accessible by hyperlinks from Bloomsbury's website nor
any additional materials contained or accessible thereon, are
incorporated in, or form part of, this announcement.
Chief Executive's statement
Overview
Bloomsbury delivered a strong first half performance, with
revenue growth of 11% to GBP136.7 million (2022: GBP122.9 million),
and an 11% increase in profit before taxation and highlighted items
to GBP17.7 million (2022: GBP15.9 million). Profit before taxation
grew by 8% to GBP14.0 million (2022: GBP12.9 million).
The strength of demand for Bloomsbury titles reflects our
long-term growth strategy and the breadth of our diversified
portfolio.
Our strategy of diversification, across channels and markets,
continues successfully. Our international revenues increased to 76%
of total revenue - our highest ever. Our digital strategy ensures
increasing publishing sales through digital channels, and we
continue to expand our consumer and academic markets.
We consolidated last year's exceptional 69% growth in Bloomsbury
Digital Resources ("BDR") with GBP13.3 million revenue, and
increased our BDR subscription revenue to 47% of the total (2022:
45%). The continued growth of subscription revenue underlines the
strength of our long term digital strategy of building high margin,
repeatable revenues. Our strategy enables us to continue to deliver
growth from the ongoing and accelerating shift to digital learning,
with the breadth and depth of our excellent digital products and
ebooks. We are pleased to have maintained renewal rates above 90%
and remain confident in our BDR target to achieve 40% organic
revenue growth over the five years to 2027/28, to reach
approximately GBP37 million turnover.
The highlighted items of GBP3.7 million (2022: GBP3.0 million)
consist of the amortisation of acquired intangible assets of GBP2.5
million (2022: GBP2.7 million), one-off legal and other
professional fees relating to ongoing and completed acquisitions
and restructuring costs of GBP1.2 million (2022: GBP0.3 million).
The effective rate of tax for the period was 20% (2022: 22%). The
adjusted effective rate of tax, excluding highlighted items, was
19% (2022: 21%). Diluted earnings per share for the period,
excluding highlighted items, grew by 14% to 17.47 pence (2022:
15.30 pence). Including highlighted items, profit before taxation
grew by 8% to GBP14.0 million (2022: GBP12.9 million) and diluted
earnings per share grew by 11% to 13.66 pence (2022: 12.30
pence).
Strategy
Bloomsbury's long-term growth strategy is aimed at continuing
our success in investing in high-value intellectual property and
building digital channels, increasing quality revenues and
earnings. To achieve this, we are focused on the following
long-term strategic objectives:
-- Non-Consumer
o Goal: Grow Bloomsbury's portfolio in Non-Consumer publishing.
Non-Consumer publishing is characterised by higher, more
predictable margins and greater digital and global
opportunities.
Achieved - H1 2023/24: delivered GBP47.3 million revenue,
growing both Academic & Professional and Special Interest
revenues.
o Goal: BDR target is to achieve 40% organic revenue growth over
the five years to 2027/28, to reach approximately GBP37 million
turnover.
Achieved - On track to deliver new BDR target.
-- Consumer
o Goal: Discover, nurture, champion and retain high-quality
authors and illustrators, while looking at new ways to leverage
existing title rights.
Achieved - H1 2023/24: Delivered 17% growth in Consumer revenue.
Bestsellers included Day of Fallen Night by Samantha Shannon, The
Earth Transformed by Peter Frankopan, Tom Lake by Ann Patchett and
Pub Kitchen by Tom Kerridge.
o Goal: Grow our key authors through effective publishing across
all formats alongside strategic sales and marketing.
Achieved - H1 2023/24: 79% growth in sales of Sarah J. Maas'
titles.
o Goal: As the originating publisher of J.K. Rowling's Harry
Potter, to ensure that new children discover and read it for
pleasure every year.
Achieved - H1 2023/24: Sales of Harry Potter titles remain
strong, 26 years after first publication. Harry Potter and the
Philosopher's Stone was the 4(th) bestselling children's book of
the year to date on UK Nielsen Bookscan.
-- International Expansion
o Goal: Expand international revenues. Continuing our
international growth and take advantage of the biggest academic
market in the US.
Achieved - H1 2023/24: increased overseas revenues to 76% of
Group revenue (2022/23 H1: 73%). US revenues increased to 46% of
Group revenue (2022/23 H1: 36%).
-- Employee Experience and Engagement; Diversity, Equity and Inclusion
Our success is driven by the expertise, passion and commitment
of our employees, highlighting the importance of attracting,
supporting and engaging our colleagues. We value diversity of
thought, perspectives and experience in shaping our culture and
strategy, driving our long-term success and informing the ways in
which we fulfil our social purpose.
o Goal: Be an attractive employer for individuals seeking a
career in publishing, regardless of background or identity, adding
cultural value to our business operations and performance.
o Goal: Focus on initiatives to create an environment that
promotes diversity, nurtures talent, stimulates creativity and
collaboration, supports well-being and is inclusive and respectful
of difference.
o Goal: Implement Bloomsbury's Diversity, Equity and Inclusion
Action Plan ("DEIAP").
Achieved - H1 2023/24:
o In recognition for our work, we won the Small Cap Diversity
& Inclusion Award;
o Delivered a new, comprehensive medical insurance plan for UK
employees;
o Launched the Bloomsbury Mentorship Programme, to support
unpublished, underrepresented fiction writers as they work to
establish careers in publishing;
o Launched the Academic & Professional Widening Access Fund
pilot, to provide financial support for authors who may not
otherwise be able to publish with us.
-- Sustainability
o Goal: Maximise our use of sustainable resources while seeking
to reduce carbon emissions in line with our science-based targets.
We recognise our responsibility to conserve the Earth's resources
and we are committed to monitoring and improving the environmental
impact of our operations.
Achieved - H1 2023/24:
o Implemented improvements including reducing plastic shrinkwrap
and components and increasing the sustainability of Osprey Games,
and changing the paper used in some Adult hardbacks to reduce raw
material and production resource, without affecting the quality of
our print titles;
o Increased engagement with our print suppliers to gather more
granular data on the paper used to produce our books, to enable
better oversight of our emissions as well as our impact on nature
and biodiversity;
o Supporting the Woodland Trust for three years.
Non-Consumer Division
The Non-Consumer division consists of Academic &
Professional, including BDR, and Special Interest. Revenues in the
division grew by 2% to GBP47.3 million (2022: GBP46.6 million).
Profit before taxation and highlighted items for the Non-Consumer
division was GBP5.9 million (2022: GBP7.1 million). Profit before
taxation was GBP3.6 million (2022: GBP4.6 million).
Academic & Professional
Academic & Professional revenues were GBP36.4 million (2022:
GBP36.5 million) and profit before taxation and highlighted items
was GBP5.9 million (2022: GBP7.3 million). Profit before taxation
was GBP3.7 million (2022: GBP4.9 million). Digital sales
accelerated, with ebook revenue growth of 23%.
The Academic & Professional profit margin was 16%, in line
with 2022/23 full year margin. This reflects a normalised level of
staff investment including the cost of living increases in the
second half of last year. Last year's first half margin of 20%
benefitted from positive exchange rate movements as well as lower
staffing.
Our BDR growth strategy is to build high margin, high quality,
repeatable digital revenue from our market leading Academic and
Professional IP. We consolidated last year's exceptional 69% growth
in the first half of the year and increased subscription revenue to
47% of the total (2022: 45%). Subscriptions to our high margin BDR
products deliver repeatable revenue, with renewal rates maintained
at over 90%.
Our strategy and acquisitions mean that we have been well placed
to capitalise on the market growth to date as Academic Institutions
pivoted at pace to digital learning, including in the US, where
Academic Institutions received one-off benefits of additional
government funding to support this. Notwithstanding the evolving
funding environment for Academic Institutions, including the
normalisation of funding in the US after the additional government
support during the pandemic, we are confident in demand from the
structural shift to digital learning and our BDR growth target of
further 40% organic revenue growth over the five years to 2027/28,
to reach approximately GBP37 million of sales.
Since the period end, Bloomsbury author Jon Fosse won The Nobel
Prize in Literature. We are proud to publish six collections of his
plays in the UK and US, making him the eighth Nobel Prize winner on
Bloomsbury's Methuen Drama list, joining Peter Handke, Dario Fo,
Toni Morrison, Wole Soyinka, Luigi Pirandello, John Galsworthy and
George Bernard Shaw.
Special Interest
Special Interest revenue increased by 7% to GBP10.9 million
(2022: GBP10.1 million) and generated a small profit before
taxation and highlighted items of GBP0.04 million (2022: GBP0.1
million loss before taxation and highlighted items). Bestsellers
during the period included Wisden Cricketers Almanack , Reeds
Nautical Almanac, Undaunted: Battle of Britain and The War Came To
Us by Christopher Miller.
Consumer Division
The Consumer division consists of Adult and Children's trade
publishing. The Consumer division achieved strong revenue growth of
17% to GBP89.4 million (2022: GBP76.3 million). Profit before
taxation and highlighted items increased by 26% to GBP11.2 million
(2022: GBP8.9 million). Profit before taxation increased by 27% to
GBP11.0 million (2022: GBP8.7 million). This strong performance was
driven by the Children's division, across backlist and frontlist
titles.
Adult Trade
The Adult division achieved revenue growth of 8% to GBP27.6
million (2022: GBP25.7 million) and profit before taxation and
highlighted items of GBP0.1 million (2022: GBP0.2 million). Loss
before taxation was GBP0.1 million (2022: GBP0.1 million profit).
Revenue growth was driven by the strength of the frontlist and
backlist.
Sunday Times bestsellers in the period included A Day of Fallen
Night and The Bone Season by Samantha Shannon, Tom Lake by Ann
Patchett, I Want to Die But I Want to Eat Tteokbokki by Baek Sehee,
The Book of Wilding by Isabella Tree and Charlie Burrell and
Trespasses by Louise Kennedy. New York Times bestsellers included A
Day of Fallen Night by Samantha Shannon.
Recognition for our authors continued with The House of Doors by
Tan Twan Eng longlisted for the Booker Prize, I Saw Death Coming by
Kidada E. Williams longlisted for the National Book Awards in
Nonfiction and Trespasses by Louise Kennedy winning the McKitterick
Prize as well as the British Book Awards 2023 Book of the Year -
Debut Fiction.
Children's Trade
Children's revenue increased by 22% to GBP61.7 million (2022:
GBP50.6 million). Profit before taxation and highlighted items
increased by 29% to GBP11.1 million (2022: GBP8.7 million). Profit
before taxation increased by 29% to GBP11.1 million (2022: GBP8.7
million). High demand for our strong titles continued the momentum
from last year, with excellent sales of Sarah J. Maas' titles.
Sales of the Harry Potter titles were strong. Harry Potter and
the Philosopher's Stone was the 4(th) bestselling children's book
of the year to date on UK Nielsen Bookscan, 26 years after it first
began, showing the enduring appeal of this classic series.
Sarah J. Maas sales grew by 79%, reflecting strong backlist
sales across all three series: Court of Thorns and Roses, Throne of
Glass and Crescent City. The Throne of Glass series were New York
Times bestsellers during the period. All 15 of Sarah J. Maas'
titles have been published by Bloomsbury since her first novel,
Throne of Glass, in 2012.
Revenues for the rest of the Children's division were also good.
Other h ighlights in the Children's list included Sunday Times
bestseller We're Going on an Egg Hunt by Martha Mumford and Laura
Hughes and New York Times bestsellers She is a Haunting by Trang
Thanh Tran and You're Not Supposed to Die Tonight by Kalynn
Bayron.
Cash and Financing
Bloomsbury's cash generation continued to be strong with cash at
31 August 2023 of GBP39.1 million (2022: GBP41.5 million).
The Group has an unsecured revolving credit facility with Lloyds
Bank Plc. The facility comprises a committed revolving loan
facility of GBP10.0 million and an uncommitted incremental term
loan facility of up to GBP6.0 million. At 31 August 2023, the Group
had no draw down (2022: GBPnil) of this facility.
Acquisitions
Bloomsbury has a successful track record in strategic
acquisitions, with 19 completed since 2008. We are actively
targeting and assessing further acquisition opportunities in line
with our long-term growth strategy, particularly in Academic and
Professional.
Dividend
The Group has a progressive dividend policy aiming to keep
dividend earnings cover in excess of two times, supported by strong
cash cover.
Bloomsbury's successful strategy of diversifying across formats,
markets and territories has created a stronger and more balanced
business and a smoother earnings profile across the year.
Recognising this, and in view of a better balance between sales in
the first and second halves of the year than in the past, when we
were more heavily weighted to the second half and the Christmas
market, we are increasing the proportion of the full year dividend
paid at the interim. This new balance of the two halves is one of
Bloomsbury's greatest strategic achievements of recent years and is
powered by our academic publishing.
In line with this rebalancing, the Board has declared an interim
dividend of 3.70 pence per share, compared to 1.41 pence per share
for the six months ended 31 August 2022.
The dividend will be paid on 1 December 2023 to Shareholders on
the register on the record date of 3 November 2023.
Executive Committee - Adrienne Vaughan
In August, we suffered the terrible blow of the death of
Adrienne Vaughan, President of Bloomsbury USA and member of
Bloomsbury's Executive Committee. Adrienne was a natural business
leader with a great future ahead of her. She was deeply loved by
colleagues due to her combination of great personal warmth with a
fierce determination to make the business succeed and grow. Her
business instincts were outstanding and she loved authors, readers
and her colleagues equally.
Our hearts go out to Adrienne's husband and children, parents,
family and friends. Bloomsbury continues to do everything possible
to support them.
Future Publishing
In Non-Consumer, we are focused on driving our digital - BDR and
ebook - growth as the Academic pivot from print to digital content
accelerates. Within BDR, we are continuing to expand the customer
base for ABC-CLIO's databases globally, expand Bloomsbury
Collections to include ABC-CLIO titles as well as Bloomsbury
frontlist, and expand BDR products with ABC-CLIO content.
Our strong Consumer publishing list for the second half includes
the next new Sarah J. Maas novel, House of Flame and Shadow, the
third in the Crescent City series, which will be published in
January 2024. The Harry Potter Wizarding Almanac, the official
magical companion to J.K. Rowling's Harry Potter books, is
published in October 2023. The second half also includes Pub
Kitchen by Tom Kerridge, Impossible Creatures by Katherine Rundell,
The Rest is History by Tom Holland and Dominic Sandbrook, Ghosts,
the companion book to the BBC's much loved television series, and
the next title in our bestselling children's series, We're Going on
a Ghost Hunt, by Martha Mumford and Cherie Zamazing.
Outlook
Bloomsbury is on solid foundations with significant financial
resources available to augment organic growth and invest in
acquisitions. Diversification in channels and markets continues to
serve us well. We have continued to expand globally, with 76% of
our revenue now generated outside the UK.
Our digital strategy anticipated the structural change in the
academic market from print to digital learning; a trend which has
accelerated and which gives us further confidence in our BDR
strategy. Our strategy and acquisitions mean that we have been well
placed to capitalise on the market growth to date as academic
institutions pivoted at pace to digital learning. Notwithstanding
the evolving funding environment for academic institutions,
including the normalisation of funding in the US after the
additional government support during the pandemic, we remain on
track and confident in our BDR growth target of further 40% organic
revenue growth over the five years to 2027/28, to reach
approximately GBP37 million turnover.
The combination of all these factors underpins the confidence we
have in the future. The strength of our first half performance
means that we are confident of achieving market expectations for
the year ending 29 February 2024.
The Board considers current consensus market expectation for the
year ending 29 February 2024 to be revenue of GBP273.1 million and
profit before taxation and highlighted items of GBP32.5
million.
Condensed Consolidated Interim Income Statement
For the six months ended 31 August 2023
6 months 6 months Year
ended ended ended
31 August 31 August 28 February
2023 2022 2023
Notes GBP'000 GBP'000 GBP'000
------------------------------------- ------ ----------- ------------ -------------
Revenue 3 136,682 122,910 264,102
Cost of sales (58,982) (56,804) (119,191)
------------------------------------- ------ ----------- ------------ -------------
Gross profit 77,700 66,106 144,911
Marketing and distribution costs (17,322) (14,886) (32,529)
Administrative expenses (46,798) (38,041) (86,551)
Share of result of joint venture - (67) (228)
Operating profit before highlighted
items 17,268 16,091 31,286
Highlighted items 4 (3,688) (2,979) (5,683)
------------------------------------- ------ ----------- ------------ -------------
Operating profit 13,580 13,112 25,603
Finance income 563 46 270
Finance costs (169) (213) (458)
------------------------------------- ------ ----------- ------------ -------------
Profit before taxation and
highlighted items 17,662 15,924 31,098
Highlighted items 4 (3,688) (2,979) (5,683)
------------------------------------- ------ ----------- ------------ -------------
Profit before taxation 3 13,974 12,945 25,415
Taxation (2,781) (2,834) (5,171)
------------------------------------- ------ ----------- ------------ -------------
Profit for the period attributable
to owners of the Company 11,193 10,111 20,244
------------------------------------- ------ ----------- ------------ -------------
Earnings per share attributable
to owners of the Company
Basic earnings per share 6 13.81p 12.49p 24.94p
Diluted earnings per share 6 13.66p 12.30p 24.54p
------------------------------------- ------ ----------- ------------ -------------
The accompanying notes form an integral part of this condensed
consolidated interim financial report.
Condensed Consolidated Interim Statement of Comprehensive
Income
For the six months ended 31 August 2023
6 months 6 months Year
ended ended ended
31 August 31 August 28 February
2023 2022 2023
GBP'000 GBP'000 GBP'000
------------------------------------------- ----------- ----------- -------------
Profit for the period 11,193 10,111 20,244
Other comprehensive income
Items that may be reclassified to
the income statement:
Exchange differences on translating
foreign operations (5,136) 10,270 7,464
Items that may not be reclassified
to the income statement:
Remeasurements on the defined benefit - - -
pension scheme
------------------------------------------- ----------- ----------- -------------
Other comprehensive income for the
period net of tax (5,136) 10,270 7,464
------------------------------------------- ----------- ----------- -------------
Total comprehensive income for the
period attributable to owners of the
Company 6,057 20,381 27,708
------------------------------------------- ----------- ----------- -------------
Items in the statement above are disclosed net of tax.
Condensed Consolidated Interim Statement of Financial
Position
At 31 August 2023
Notes 31 August 31 August 28 February
2023 2022 2023
GBP'000 GBP'000 GBP'000
---------------------------------- ------ ---------- ---------- ------------
Assets
Goodwill 48,259 48,868 48,656
Other intangible assets 35,105 40,329 38,243
Investments - 161 -
Property, plant and equipment 2,190 2,562 2,503
Right-of-use assets 8,371 10,022 9,126
Deferred tax assets 11,188 8,953 7,928
Trade and other receivables 7 833 1,008 934
---------------------------------- ------ ---------- ---------- ------------
Total non-current assets 105,946 111,903 107,390
---------------------------------- ------ ---------- ---------- ------------
Inventories 40,385 44,324 43,364
Trade and other receivables 7 121,660 114,921 112,819
Cash and cash equivalents 39,109 41,451 51,540
---------------------------------- ------ ---------- ---------- ------------
Total current assets 201,154 200,696 207,723
---------------------------------- ------ ---------- ---------- ------------
Total assets 307,100 312,599 315,113
---------------------------------- ------ ---------- ---------- ------------
Liabilities
Deferred tax liabilities 3,411 3,830 3,115
Lease liabilities 7,434 9,191 8,570
Provisions 348 318 334
---------------------------------- ------ ---------- ---------- ------------
Total non-current liabilities 11,193 13,339 12,019
---------------------------------- ------ ---------- ---------- ------------
Trade and other liabilities 108,326 112,797 111,620
Lease liabilities 2,373 2,388 2,082
Current tax liabilities 902 999 790
Provisions 851 982 764
---------------------------------- ------ ---------- ---------- ------------
Total current liabilities 112,452 117,166 115,256
---------------------------------- ------ ---------- ---------- ------------
Total liabilities 123,645 130,505 127,275
---------------------------------- ------ ---------- ---------- ------------
Net assets 183,455 182,094 187,838
---------------------------------- ------ ---------- ---------- ------------
Equity
Share capital 1,020 1,020 1,020
Share premium 47,319 47,319 47,319
Translation reserve 10,455 18,397 15,591
Other reserves 9,942 11,064 10,870
Retained earnings 114,719 104,294 113,038
---------------------------------- ------ ---------- ---------- ------------
Total equity attributable to
owners of the Company 183,455 182,094 187,838
---------------------------------- ------ ---------- ---------- ------------
Condensed Consolidated Interim Statement of Changes in
Equity
At 31 August 2023
Own
Capital Share-based shares
Share Share Translation Merger redemption payment held by Retained Total
capital premium reserve reserve reserve reserve the EBT earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- ---------
At 1 March 2023 1,020 47,319 15,591 1,803 22 10,727 (1,682) 113,038 187,838
Profit for the
period - - - - - - - 11,193 11,193
Other
comprehensive
income
Exchange
differences
on
translating
foreign
operations - - (5,136) - - - - - (5,136)
Total
comprehensive
income for the
period - - (5,136) - - - - 11,193 6,057
Transactions with
owners
Dividends to
equity
holders of
the Company - - - - - - - (8,336) (8,336)
Purchase of
shares by the
Employee
Benefit Trust - - - - - - (2,814) - (2,814)
Share options
exercised - - - - - - 1,317 (1,283) 34
Deferred tax
on
share-based
payment
transactions - - - - - - - 107 107
Share-based
payment
transactions - - - - - 768 - - 768
Share-based
payment
cancellations - - - - - (199) - - (199)
------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- ---------
Total transactions
with owners of
the Company - - - - - 569 (1,497) (9,512) (10,440)
------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- ---------
At 31 August 2023 1,020 47,319 10,455 1,803 22 11,296 (3,179) 114,719 183,455
------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- ---------
Own
Capital Share-based shares
Share Share Translation Merger redemption payment held by Retained Total
capital premium reserve reserve reserve reserve the EBT earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
At 1 March 2022 1,020 47,319 8,127 1,803 22 9,492 (2,552) 103,738 168,969
Profit for the
period - - - - - - - 10,111 10,111
Other
comprehensive
income
Exchange
differences
on
translating
foreign
operations - - 10,270 - - - - - 10,270
Total
comprehensive
income for the
period - - 10,270 - - - - 10,111 20,381
Transactions with
owners
Dividends to
equity
holders of
the Company - - - - - - - (7,604) (7,604)
Purchase of
shares by
the Employee
Benefit
Trust - - - - - - (375) - (375)
Share options
exercised - - - - - - 2,015 (2,014) 1
Deferred tax
on
share-based
payment
transactions - - - - - - - 63 63
Share-based
payment
transactions - - - - - 659 - - 659
------------------ -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
Total
transactions
with owners of
the Company - - - - - 659 1,640 (9,555) (7,256)
------------------ -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
At 31 August 2022 1,020 47,319 18,397 1,803 22 10,151 (912) 104,294 182,094
------------------ -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
Own
Capital Share-based shares
Share Share Translation Merger redemption payment held by Retained Total
capital premium reserve reserve reserve reserve the EBT earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
At 1 March 2022 1,020 47,319 8,127 1,803 22 9,492 (2,552) 103,738 168,969
Profit for the
year - - - - - - - 20,244 20,244
Other
comprehensive
income
Exchange
differences
on
translating
foreign
operations - - 7,464 - - - - - 7,464
Total
comprehensive
income for the
year - - 7,464 - - - - 20,244 27,708
Transactions with
owners
Dividends to
equity
holders of
the Company - - - - - - - (8,752) (8,752)
Purchase of
shares by
the Employee
Benefit
Trust - - - - - - (1,669) - (1,669)
Share options
exercised - - - - - - 2,539 (2,273) 266
Deferred tax
on
share-based
payment
transactions - - - - - - - 81 81
Share-based
payment
transactions - - - - - 1,235 - - 1,235
------------------ -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
Total
transactions
with owners of
the Company - - - - - 1,235 870 (10,944) (8,839)
------------------ -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
At 28 February
2023 1,020 47,319 15,591 1,803 22 10,727 (1,682) 113,038 187,838
------------------ -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
Condensed Consolidated Interim Statement of Cash Flows
For the six months ended 31 August 2023
6 months 6 months Year
ended ended ended
31 August 31 August 28 February
2023 2022 2023
GBP'000 GBP'000 GBP'000
------------------------------------------- ---------- ---------- ------------
Cash flows from operating activities
Profit for the period 11,193 10,111 20,244
Adjustments for:
Depreciation of property, plant and
equipment 414 314 659
Depreciation of right-of-use assets 1,026 902 2,114
Amortisation of intangible assets 4,825 4,774 9,687
Loss on disposal of property, plant
and equipment - - 13
Loss on disposal on intangible assets 3 - 107
Finance income (563) (46) (270)
Finance costs 169 213 458
Share of loss of joint venture - 67 228
Share-based payment charges 882 874 1,601
Tax expense 2,781 2,834 5,171
------------------------------------------- ---------- ---------- ------------
20,730 20,043 40,012
Decrease/(increase) in inventories 861 (6,886) (7,557)
Increase in trade and other receivables (12,712) (4,351) (3,226)
Increase in trade and other liabilities 77 3,640 4,033
------------------------------------------- ---------- ---------- ------------
Cash generated from operating activities 8,956 12,446 33,262
Income taxes paid (4,676) (3,970) (6,640)
------------------------------------------- ---------- ---------- ------------
Net cash generated from operating
activities 4,280 8,476 26,622
------------------------------------------- ---------- ---------- ------------
Cash flows from investing activities
Purchase of property, plant and equipment (131) (485) (818)
Purchases of intangible assets (2,582) (2,301) (5,165)
Purchase of business, net of cash
acquired - - (72)
Purchase of rights to assets - - (633)
Purchase of share in a joint venture - (182) (183)
Interest received 563 46 253
Net cash used in investing activities (2,150) (2,922) (6,618)
------------------------------------------- ---------- ---------- ------------
Cash flows from financing activities
Equity dividends paid (8,336) (7,604) (8,752)
Purchase of shares by the Employee
Benefit Trust (2,814) (375) (1,669)
Proceeds from exercise of share options 34 1 266
Cancellation of share options (199) - -
Repayment of lease liabilities (1,113) (990) (2,226)
Lease liabilities interest paid (169) (187) (390)
Other interest paid - (26) -
Net cash used in financing activities (12,597) (9,181) (12,771)
------------------------------------------- ---------- ---------- ------------
Net (decrease)/increase in cash
and cash equivalents (10,467) (3,627) 7,233
Cash and cash equivalents at beginning
of period 51,540 41,226 41,226
Exchange (loss)/gain on cash and
cash equivalents (1,964) 3,852 3,081
------------------------------------------- ---------- ---------- ------------
Cash and cash equivalents at end
of period 39,109 41,451 51,540
------------------------------------------- ---------- ---------- ------------
Notes to the Condensed Consolidated Interim Financial
Statements
1. Reporting entity
Bloomsbury Publishing Plc (the "Company") is a Company domiciled
in the United Kingdom. The condensed consolidated interim financial
statements of the Company as at and for the six months ended 31
August 2023 comprise the Company and its subsidiaries (together
referred to as the "Group"). The Group is primarily involved in the
publication of books and other related services.
2. Significant accounting policies
a) Basis of preparation
These condensed consolidated interim financial statements have
been prepared in accordance with International Accounting Standard
("IAS") 34 'Interim Financial Reporting'. They are unaudited and do
not constitute statutory accounts. Selected explanatory notes are
included to explain events and transactions that are significant to
an understanding of the changes in financial position and
performance of the Group since the last annual consolidated
financial statements as at and for the year ended 28 February
2023.
Except as described below, the condensed set of financial
statements have been prepared on a consistent basis with the
financial statements for the year ended 28 February 2023 and should
be read in conjunction with the Annual Report 2023. The annual
consolidated financial statements of the Group are prepared in
accordance with UK-adopted International Accounting Standards and
the requirements of the Companies Act 2006. The 2023 Annual Report
refers to other new standards effective from 1 March 2023. None of
these standards have had a material impact in these financial
statements.
The comparative financial information for the year ended 28
February 2023 does not constitute statutory accounts for that
financial year. This information was extracted from the statutory
accounts for the year ended 28 February 2023, a copy of which has
been delivered to the Registrar of Companies. The auditor's report
on those accounts was unqualified and did not include a reference
to any matters to which the auditor drew attention by way of
emphasis of matter and did not contain a statement under section
498(2) or (3) of the Companies Act 2006.
The condensed consolidated interim financial statements were
approved and authorised for issue by the Board of Directors on 25
October 2023.
b) Going concern
The Directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence for at
least 12 months from the date of approval of the condensed
consolidated interim financial statements, being the period of the
detailed going concern assessment reviewed by the Board, and
therefore continue to adopt the going concern basis of accounting
in preparing the condensed consolidated interim financial
statements.
The Board has modelled a severe but plausible downside scenario.
This assumes:
-- Print revenues are reduced by 20%, with recovery during 2025/2026;
-- Digital revenues are reduced by 20%, with recovery during 2025/2026;
-- Print costs are increased by 3% from 2023/2024 and staff
costs are increased by 3% from 2023/2024;
-- Downside assumptions about extended debtor days, with recovery during 2025/2026;
-- Cash preservation measures implemented and variable costs reduced.
At 31 August 2023, the Group had available liquidity of
GBP49.1m, comprising central cash balances and its undrawn GBP10.0m
Revolving Credit Facility (RCF). The RCF agreement is to October
2024. Under the severe but plausible downside scenario, the Group
would maintain sufficient liquidity headroom even before modelling
the mitigating effect of actions that management would take in the
event that these downside risks were to crystallise.
The Group has an unsecured revolving credit facility with Lloyds
Bank Plc. At 31 August 2023, the Group had GBPnil draw down (2022:
GBPnil) of this facility with GBP10.0 million of undrawn borrowing
facilities (2022: GBP10.0 million) available. The facility
comprises a committed revolving credit facility of GBP10 million,
and an uncommitted incremental term loan facility of up to GBP6
million. The facilities are subject to two covenants, being a
maximum net debt to EBITDA ratio of 2.5x and a minimum interest
cover covenant of 4x.
c) Uses of estimates and judgments
The preparation of condensed consolidated interim financial
statements requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and
the reported amounts of assets liabilities, income and expenses.
Actual results may differ from these estimates. Critical judgments
and areas where the use of estimates is significant are set out in
the 2023 Annual Report.
3. Segmental analysis
The Group is comprised of two worldwide publishing divisions:
Consumer and Non-Consumer, reflecting the core customers for our
different operations. The Consumer division is further split out
into two operating segments: Children's Trade and Adult Trade.
Non-Consumer is split between two operating segments: Academic
& Professional and Special Interest.
Each reportable segment represents a cash-generating unit for
the purpose of impairment testing. We have allocated goodwill
between reportable segments.
These divisions are the basis on which the Group primarily
reports its segment information. Segments derive their revenue from
book publishing, sale of publishing and distribution rights,
management and other publishing services. The analysis by segment
is shown below:
Children's Adult Consumer Academic Special Non-Consumer Unallocated Total
Trade Trade & Interest
Professional
Six months GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
ended 31 August
2023 GBP'000 GBP'000 GBP'000
---------------- ----------- --------- --------- ------------- --------- ------------- ------------ ---------
External
revenue 61,734 27,630 89,364 36,435 10,883 47,318 - 136,682
Cost of sales (27,858) (14,268) (42,126) (11,327) (5,529) (16,856) - (58,982)
---------------- ----------- --------- --------- ------------- --------- ------------ ---------
Gross profit 33,876 13,362 47,238 25,108 5,354 30,462 - 77,700
Marketing and
distribution
costs (8,848) (4,214) (13,062) (2,825) (1,435) (4,260) - (17,322)
---------------- ----------- --------- --------- ------------- --------- ------------ ---------
Contribution
before
administrative
expenses 25,028 9,148 34,176 22,283 3,919 26,202 - 60,378
Administrative
expenses
excluding
highlighted
items (13,826) (9,022) (22,848) (16,395) (3,867) (20,262) - (43,110)
Share of joint - - - - - - - -
venture result
---------------- ----------- --------- --------- ------------- --------- ------------ ---------
Operating
profit/(loss)
before
highlighted
items/ segment
results 11,202 126 11,328 5,888 52 5,940 - 17,268
Amortisation of
acquired
intangible
assets - (180) (180) (2,197) (107) (2,304) - (2,484)
Other
highlighted
items - - - - - - (1,204) (1,204)
---------------- ----------- --------- --------- ------------- --------- ------------ ---------
Operating
profit/(loss) 11,202 (54) 11,148 3,691 (55) 3,636 (1,204) 13,580
Finance income - - - 21 - 21 542 563
Finance costs (57) (46) (103) (49) (17) (66) - (169)
---------------- ----------- --------- --------- ------------- --------- ------------ ---------
Profit/(loss)
before
taxation
and
highlighted
items 11,145 80 11,225 5,860 35 5,895 542 17,662
Amortisation of
acquired
intangible
assets - (180) (180) (2,197) (107) (2,304) - (2,484)
Other
highlighted
items - - - - - - (1,204) (1,204)
---------------- ----------- --------- --------- ------------- --------- ------------ ---------
Profit/(loss)
before
taxation 11,145 (100) 11,045 3,663 (72) 3,591 (662) 13,974
Taxation - - - - - - (2,781) (2,781)
---------------- ----------- --------- --------- ------------- --------- ------------ ---------
Profit/(loss)
for the period 11,145 (100) 11,045 3,663 (72) 3,591 (3,443) 11,193
---------------- ----------- --------- --------- ------------- --------- ------------- ------------ ---------
Children's Adult Consumer Academic Special Non-Consumer Unallocated Total
Trade Trade & Interest
Professional
Six months GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
ended 31 August
2022 GBP'000 GBP'000 GBP'000
---------------- ----------- --------- --------- ------------- --------- ------------- ------------ ---------
External
revenue 50,607 25,685 76,292 36,481 10,137 46,618 - 122,910
Cost of sales (26,453) (13,809) (40,262) (11,529) (5,013) (16,542) - (56,804)
---------------- ----------- --------- --------- ------------- --------- ------------ ---------
Gross profit 24,154 11,876 36,030 24,952 5,124 30,076 - 66,106
Marketing and
distribution
costs (6,567) (3,995) (10,562) (2,929) (1,395) (4,324) - (14,886)
---------------- ----------- --------- --------- ------------- --------- ------------ ---------
Contribution
before
administrative
expenses 17,587 7,881 25,468 22,023 3,729 25,752 - 51,220
Administrative
expenses
excluding
highlighted
items (8,863) (7,617) (16,480) (14,739) (3,843) (18,582) (35,062)
Share of joint
venture result - - - - - - (67) (67)
---------------- ----------- --------- --------- ------------- --------- ------------ ---------
Operating
profit/(loss)
before
highlighted
items/ segment
results 8,724 264 8,988 7,284 (114) 7,170 (67) 16,091
Amortisation of
acquired
intangible
assets - (175) (175) (2,381) (107) (2,488) - (2,663)
Other
highlighted
items - - - - - - (316) (316)
---------------- ----------- --------- --------- ------------- --------- ------------ ---------
Operating
profit/(loss) 8,724 89 8,813 4,903 (221) 4,682 (383) 13,112
Finance income - - - 26 - 26 20 46
Finance costs (70) (37) (107) (59) (21) (80) (26) (213)
---------------- ----------- --------- --------- ------------- --------- ------------ ---------
Profit/(loss)
before
taxation
and
highlighted
items 8,654 227 8,881 7,251 (135) 7,116 (73) 15,924
Amortisation of
acquired
intangible
assets - (175) (175) (2,381) (107) (2,488) - (2,663)
Other
highlighted
items - - - - - - (316) (316)
---------------- ----------- --------- --------- ------------- --------- ------------ ---------
Profit/(loss)
before
taxation 8,654 52 8,706 4,870 (242) 4,628 (389) 12,945
Taxation - - - - - - (2,834) (2,834)
---------------- ----------- --------- --------- ------------- --------- ------------ ---------
Profit/(loss)
for the period 8,654 52 8,706 4,870 (242) 4,628 (3,223) 10,111
---------------- ----------- --------- --------- ------------- --------- ------------- ------------ ---------
Children's Adult Consumer Academic Special Non-Consumer Unallocated Total
Trade Trade & Interest
Professional
Year ended 28 February 2023 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------- --------------------- --------- --------- ------------- --------- ------------- ------------ ----------
External revenue 108,897 57,796 166,693 75,749 21,660 97,409 - 264,102
Cost of sales (56,205) (30,473) (86,678) (22,578) (9,935) (32,513) - (119,191)
------------------------------------- --------------------- --------- --------- ------------- --------- ------------ ----------
Gross profit 52,692 27,323 80,015 53,171 11,725 64,896 - 144,911
Marketing and distribution
costs (14,882) (9,455) (24,337) (5,364) (2,828) (8,192) - (32,529)
------------------------------------- --------------------- --------- --------- ------------- --------- ------------ ----------
Contribution before administrative
expenses 37,810 17,868 55,678 47,807 8,897 56,704 - 112,382
Administrative expenses excluding
highlighted items (20,497) (16,835) (37,332) (35,296) (8,240) (43,536) - (80,868)
Share of joint venture result - - - - - - (228) (228)
------------------------------------- --------------------- --------- --------- ------------- --------- ------------ ----------
Operating profit/(loss) before
highlighted items/ segment
results 17,313 1,033 18,346 12,511 657 13,168 (228) 31,286
Amortisation of acquired intangible
assets - (352) (352) (4,660) (214) (4,874) - (5,226)
Other highlighted items - - - - - - (457) (457)
------------------------------------- --------------------- --------- --------- ------------- --------- ------------ ----------
Operating profit/(loss) 17,313 681 17,994 7,851 443 8,294 (685) 25,603
Finance income - - - 50 - 50 220 270
Finance costs (144) (81) (225) (125) (40) (165) (68) (458)
------------------------------------- --------------------- --------- --------- ------------- --------- ------------ ----------
Profit/(loss) before taxation
and highlighted items 17,169 952 18,121 12,436 617 13,053 (76) 31,098
Amortisation of acquired intangible
assets - (352) (352) (4,660) (214) (4,874) - (5,226)
Other highlighted items - - - - - - (457) (457)
------------------------------------- --------------------- --------- --------- ------------- --------- ------------ ----------
Profit/(loss) before taxation 17,169 600 17,769 7,776 403 8,179 (533) 25,415
Taxation - - - - - - (5,171) (5,171)
------------------------------------- --------------------- --------- --------- ------------- --------- ------------ ----------
Profit/(loss) for the year 17,169 600 17,769 7,776 403 8,179 (5,704) 20,244
------------------------------------- --------------------- --------- --------- ------------- --------- ------------ ----------
Children's Adult Consumer Academic Special Non-Consumer Unallocated Total
Trade Trade & Professional Interest
Six months GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
ended 31 August
2023 GBP'000 GBP'000 GBP'000
---------------- ----------- -------- --------- --------------- ---------- ------------- ------------ --------
Operating
profit/(loss)
before
highlighted
items /segment
results 11,202 126 11,328 5,888 52 5,940 - 17,268
Depreciation 482 370 852 465 123 588 - 1,440
Amortisation of
internally
generated
intangibles 244 377 621 1,556 164 1,720 - 2,341
---------------- ----------- -------- --------- --------------- ---------- ------------ --------
EBITDA before
highlighted
items 11,928 873 12,801 7,909 339 8,248 - 21,049
---------------- ----------- -------- --------- --------------- ---------- ------------ --------
Children's Adult Consumer Academic Special Non-Consumer Unallocated Total
Trade Trade & Professional Interest
Six months GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
ended 31 August
2022 GBP'000 GBP'000 GBP'000
---------------- ----------- -------- --------- --------------- ---------- ------------- ------------ --------
Operating
profit/(loss)
before
highlighted
items /segment
results 8,724 264 8,988 7,284 (114) 7,170 (67) 16,091
Depreciation 429 229 658 440 118 558 - 1,216
Amortisation of
internally
generated
intangibles 223 292 515 1,428 168 1,596 - 2,111
---------------- ----------- -------- --------- --------------- ---------- ------------ --------
EBITDA before
highlighted
items 9,376 785 10,161 9,152 172 9,324 (67) 19,418
---------------- ----------- -------- --------- --------------- ---------- ------------ --------
Children's Adult Consumer Academic Special Non-Consumer Unallocated Total
Trade Trade & Professional Interest
Year ended 28 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
February 2023 GBP'000 GBP'000 GBP'000
---------------- ----------- -------- --------- --------------- ---------- ------------- ------------ --------
Operating
profit/(loss)
before
highlighted
items/segment
results 17,313 1,033 18,346 12,511 657 13,168 (228) 31,286
Depreciation 930 659 1,589 950 234 1,184 - 2,773
Amortisation of
internally
generated
intangibles 487 629 1,116 3,023 322 3,345 - 4,461
---------------- ----------- -------- --------- --------------- ---------- ------------ --------
EBITDA before
highlighted
items 18,730 2,321 21,051 16,484 1,213 17,697 (228) 38,520
---------------- ----------- -------- --------- --------------- ---------- ------------ --------
External revenue by product type
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2023 2022 2023
GBP'000 GBP'000 GBP'000
-------------------- ---------- ---------- ------------
Print 92,691 85,709 185,966
Digital 38,736 32,529 66,317
Rights and services 5,255 4,672 11,819
-------------------- ---------- ---------- ------------
Total 136,682 122,910 264,102
-------------------- ---------- ---------- ------------
Rights and services revenue includes revenue from copyright and
trademark licences, management contracts, advertising and
publishing services.
Total assets 31 August 31 August 28 February
2023 2022 2023
GBP'000 GBP'000 GBP'000
------------------------- ---------- --------------------- ------------
Children's Trade 21,541 21,337 19,569
Adult Trade 13,422 15,061 14,493
Academic & Professional 72,293 80,141 77,918
Special Interest 12,657 13,267 14,381
Unallocated 187,187 182,793 188,752
------------------------- ---------- --------------------- ------------
Total assets 307,100 312,599 315,113
------------------------- ---------- --------------------- ------------
Unallocated primarily represents centrally held assets including
system development, property, plant and equipment, right-of-use
assets, receivables and cash.
4. Highlighted items
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2023 2022 2023
GBP'000 GBP'000 GBP'000
------------------------------------- ----------- ----------- -------------
Legal and other professional fees 131 111 93
Integration and restructuring
costs 1,073 205 364
Other highlighted items 1,204 316 457
Amortisation of acquired intangible
assets 2,484 2,663 5,226
------------------------------------- ----------- ----------- -------------
Total highlighted items 3,688 2,979 5,683
------------------------------------- ----------- ----------- -------------
Highlighted items charged to operating profit comprise
significant non-cash charges and major one-off initiatives, which
are highlighted in the income statement because, in the opinion of
the Directors, separate disclosure is helpful in understanding the
underlying performance and future profitability of the
business.
For the six months ended 31 August 2023 legal and other
professional fees of GBP131,000 were incurred as a result of
acquisitions including the ABC-CLIO, LLC acquisition . Integration
and restructuring costs of GBP1,073,000 were incurred as a result
of the integration of the ABC-Clio, LLC acquisition and
restructuring.
For the six months ended 31 August 2022 legal and other
professional fees of GBP111,000 were incurred as a result of the
acquisition of certain assets of Red Globe Press and the ABC-CLIO,
LLC acquisition. Integration and restructuring costs of GBP205,000
were incurred as a result of the integration of the above
acquisitions and the Head of Zeus Limited acquisition.
For the year ended 28 February 2023, legal and other
professional fees of GBP93,000 were incurred as a result of the
Group's acquisitions, including ABC-CLIO, LLC and certain assets of
UIT Cambridge. Integration and restructuring costs primarily relate
to the integration of the ABC-CLIO, LLC, Head of Zeus Limited
acquisitions and certain assets of Red Globe Press.
5. Dividends
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2023 2022 2023
GBP'000 GBP'000 GBP'000
--------------------------------- ----------- ----------- ------------
Amounts paid in the period
Prior period final dividend 8,336 7,604 7,604
Interim dividend - - 1,148
--------------------------------- ----------- ----------- ------------
Total dividend payments in the
period 8,336 7,604 8,752
Amounts arising in respect of
the period
Interim dividend for the period 3,005 1,147 1,148
Final dividend for the year - - 8,397
Total dividend for the period 3,005 1,147 9,545
--------------------------------- ----------- ----------- ------------
The proposed interim dividend of 3.70 pence per ordinary share
will be paid to the equity Shareholders on 1 December 2023 to
Shareholders registered at close of business on 3 November
2023.
6. Earnings per share
The basic earnings per share for the six months ended 31 August
2023 is calculated using a weighted average number of Ordinary
Shares in issue of 81,058 ,723 (31 August 2022: 80,921,019 and 28
February 2023: 81,172,636) after deducting shares held by the
Employee Benefit Trust.
The diluted earnings per share is calculated by adjusting the
weighted average number of Ordinary Shares to take account of all
dilutive potential Ordinary Shares, which are in respect of
unexercised share options and the Performance share Plan.
6 months
ended 6 months ended Year ended
31 August 31 August 28 February
2023 2022 2023
Number Number Number
Weighted average shares in
issue 81,058,723 80,921,019 81,172,636
Dilution 890,550 1,314,336 1,336,878
------------------------------- ----------- --------------- ------------
Diluted weighted average
shares in issue 81,949,273 82,235,355 82,509,514
------------------------------- ----------- --------------- ------------
GBP'000 GBP'000 GBP'000
------------------------------- ----------- --------------- ------------
Profit after tax attributable
to owners of the Company 11,193 10,111 20,244
------------------------------- ----------- --------------- ------------
Basic earnings per share 13.81p 12.49p 24.94p
Diluted earnings per share 13.66p 12.30p 24.54p
------------------------------- ----------- --------------- ------------
Adjusted profit attributable
to owners of the Company 14,314 12,579 25,217
------------------------------- ----------- --------------- ------------
Adjusted basic earnings per
share 17.66p 15.54p 31.07p
Adjusted diluted earnings
per share 17.47p 15.30p 30.56p
------------------------------- ----------- --------------- ------------
Adjusted profit is derived as follows:
Profit before tax 13,974 12,945 25,415
Amortisation of acquired intangible
assets 2,484 2,663 5,226
Other highlighted items 1,204 316 457
------------------------------------- ------- ------- -------
Adjusted profit before tax 17,662 15,924 31,098
------------------------------------- ------- ------- -------
Tax expense 2,781 2,834 5,171
Deferred tax movements on
goodwill and acquired intangible
assets 368 484 631
Tax expense on other highlighted
items 199 27 79
Adjusted tax 3,348 3,345 5,881
----------------------------------- ------ ------ ------
Adjusted profit 14,314 12,579 25,217
----------------- ------- ------- -------
The Group includes the benefit of tax amortisation of intangible
assets in the calculation of adjusted tax as this more accurately
aligns the adjusted tax charge with the expected cash tax
payments.
7. Trade and other receivables
31 August 31 August 28 February
2023 2022 2023
Non-current GBP'000 GBP'000 GBP'000
------------------------------------ ----------- ----------- -------------
Accrued income 833 1,008 934
------------------------------------ ----------- ----------- -------------
Current
Gross trade receivables 77,207 75,666 72,549
Less: loss allowance (3,526) (3,463) (3,334)
------------------------------------ ----------- ----------- -------------
Net trade receivables 73,681 72,203 69,215
Income tax recoverable 1,205 1,967 2,332
Other receivables 2,923 2,645 2,497
Prepayments 2,429 2,469 2,653
Accrued income 6,073 3,992 6,579
Royalty advances 35,349 31,645 29,543
------------------------------------ ----------- ----------- -------------
Total current trade and other
receivables 121,660 114,921 112,819
------------------------------------ ----------- ----------- -------------
Total trade and other receivables 122,493 115,929 113,753
------------------------------------ ----------- ----------- -------------
Non-current receivables relate to accrued income on long-term
rights deals.
Trade receivables principally comprise amounts receivable from
the sale of books due from distributors. The majority of trade
debtors are secured by credit insurance and in certain territories
by third party distributors.
A provision is held against gross advances payable in respect of
published titles advances which may not be fully earned down by
anticipated future sales. As at 31 August 2023 GBP10,137,000 (31
August 2022 GBP8,909,000 and 28 February 2023 GBP7,745,000) of
royalty advances relate to titles expected to be published in more
than 12 months' time.
8. Related parties
The Group has no related party transactions in the current or
prior periods other than key management remuneration.
Responsibility Statement of the Directors in Respect of the
Interim Financial Statements
Directors
--------------------- -------------------------------------
Sir Richard Lambert Independent Non-Executive Chairman
Chair of the Nomination Committee
--------------------- -------------------------------------
Nigel Newton Chief Executive
--------------------- -------------------------------------
Leslie-Ann Reed Senior Independent Director
Chair of the Audit Committee
--------------------- -------------------------------------
John Bason Independent Non-Executive Director
Chair of the Remuneration Committee
--------------------- -------------------------------------
Baroness Lola Independent Non-Executive Director
Young of Hornsey
--------------------- -------------------------------------
Penny Scott-Bayfield Group Finance Director
--------------------- -------------------------------------
We confirm that to the best of our knowledge:
-- The condensed set of financial statements has been prepared
in accordance with UK-adopted International Accounting Standard 34
'Interim Financial Reporting'.
-- The interim management report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency
Rules, being an indication of important events that have occurred
during the first six months of the financial year and their impact
on the condensed set of financial statements; and a description of
the principal risks and uncertainties for the remaining six months
of the year; and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency
Rules, being related party transactions that have taken place in
the first six months of the current financial year and that have
materially affected the financial position or performance of the
entity during that period; and any changes in the related party
transactions described in the last annual report that could do
so.
By order of the Board
Nigel Newton Penny Scott-Bayfield
26 October 2023
Principal risks and uncertainties
Bloomsbury has a systematic and embedded risk management process
for identifying, evaluating and managing risk, with the goal of
supporting the Group in meeting its strategic and operational
objectives.
The principal risks for the Group's business are summarised as
follows:
-- Market: including market volatility, impact of economic
instability, increased dependence on internet retailing, open
access, sales of used books and rental of textbooks;
-- Importance of digital publishing: BDR revenues and profit;
-- Acquisitions: return on investment;
-- Title acquisition (Consumer publishing): Commercial viability;
-- Information and technology systems: Cybersecurity and malware
attack, and internal access controls or security measures;
-- Financial valuations: Judgemental valuation of assets and provisions;
-- Intellectual property: Erosion of copyright and infringement of Group IP by third parties;
-- Reliance on key counterparties and supply chain resilience:
Failure of key counterparties or breakdown in key counterparty
relationships;
-- Talent management: Failure to attract and retain key talent
and create an inclusive and supportive environment in which the
Group's employees can thrive;
-- Legal and compliance: Breach of key contracts by the Group
and failure to comply with applicable regulations;
-- Reputation: Investor confidence; and
-- Inflation: Print supply costs and staff costs.
Further information about the principal risks and risk
management is included in the 2023 Annual Report and Accounts.
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END
IR QELFLXBLEFBB
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