REG - BloomsburyPublishing - Preliminary Results <Origin Href="QuoteRef">BLPU.L</Origin> <Origin Href="QuoteRef">PFD.L</Origin> - Part 2
15/07/2015 18:14
- Part 2: For the preceding part double click ID:nRSS5712Na
(4,404) (53) - (14,890)
Contribution before administrative expenses 18,771 9,241 16,233 3,178 - 47,423
Administrative expenses excluding highlighted items (13,645) (7,359) (12,310) (2,124) - (35,438)
Operating profit before highlighted items / segment result 5,126 1,882 3,923 1,054 - 11,985
Amortisation of acquired intangible assets (179) (218) (1,308) (5) - (1,710)
Other highlighted items - - - - (765) (765)
Operating profit / (loss) 4,947 1,664 2,615 1,049 (765) 9,510
Finance income - - - - 49 49
Finance costs - - - - (80) (80)
Profit / (loss) before taxation 4,947 1,664 2,615 1,049 (796) 9,479
Taxation - - - - (1,776) (1,776)
Profit / (loss) for the year 4,947 1,664 2,615 1,049 (2,572) 7,703
Operating profit before highlighted items / segment results 5,126 1,882 3,923 1,054 - 11,985
Depreciation 289 135 173 27 - 624
Amortisation of internally generated intangibles 307 103 613 31 - 1,054
EBITDA before highlighted items 5,722 2,120 4,709 1,112 - 13,663
*See note 2
Total assets
28 February 28 February
2015 2014
£'000 £'000
Adult 22,402 16,372
Children's & Educational 11,473 11,478
Academic & Professional 56,756 55,940
Information 384 261
Unallocated 80,467 74,033
Total assets 171,482 158,084
Unallocated primarily represents centrally held assets including system
development, property plant and equipment receivables and cash.
External revenue by destination
Source
United Kingdom North America Australia India Total
£'000 £'000 £'000 £'000 £'000
Destination
Year ended 28 February 2015
United Kingdom (country of domicile) 53,815 - - - 53,815
North America 4,438 29,038 - - 33,476
Continental Europe 8,897 1 - - 8,898
Australasia 444 - 6,025 - 6,469
Middle East and Asia 3,555 - - 1,589 5,144
Rest of the world 3,206 117 - - 3,323
Overseas countries 20,540 29,156 6,025 1,589 57,310
Total 74,355 29,156 6,025 1,589 111,125
Year ended 28 February 2014
United Kingdom (country of domicile) 45,925 884 - - 46,809
North America 4,370 28,687 - - 33,057
Continental Europe 12,240 46 - - 12,286
Australasia 170 97 6,365 - 6,632
Middle East and Asia 4,057 - - 1,477 5,534
Rest of the world 4,907 271 - - 5,178
Overseas countries 25,744 29,101 6,365 1,477 62,687
Total 71,669 29,985 6,365 1,477 109,496
During the year sales to one customer exceeded 10% of Group revenue (2014: one
customer). The value of these sales was £21,986,000 (2014: £21,507,000).
External continuing revenue by product type
Year ended Year ended
28 February 28 February
2015 2014
£'000 £'000
Print 85,301 88,860
Digital 11,748 12,175
Rights and services1 14,076 8,461
Total 111,125 109,496
1 Rights and services revenue includes income from copyright and trademark
licences, management contracts, advertising and publishing services income.
Analysis of non-current assets (excluding deferred tax assets) by geographic
location
28 February 28 February
2015 2014
£'000 £'000
United Kingdom (country of domicile) 61,837 58,934
North America 5,027 4,962
Other 55 70
Total 66,919 63,966
4. Highlighted items
Year ended Year ended
28 February 28 February
2015 2014*
£'000 £'000
Legal and other professional fees 215 218
Restructuring costs 435 547
Other highlighted items 650 765
Amortisation of acquired intangible assets 1,825 1,710
Total highlighted items 2,475 2,475
See note 2)
Highlighted items charged to operating profit comprise significant non-cash
charges and non-recurring items which are highlighted in the income statement
because, in the opinion of the Directors, separate disclosure is helpful in
understanding the underlying performance of the business.
Legal and other professional fees of £215,000 arose mainly on the acquisition
of the Osprey Publishing Group, see note 7 (year ended 28 February 2014:
£218,000 was incurred in relation to the acquisition of Hart Publishing
Limited and the trade and assets of New Holland).
Restructuring costs of £435,000 were incurred as a result of the Group's
acquisition activities and the One Global Bloomsbury strategic reorganisation
(year ended 28 February 2014: £547,000).
5. Taxation
Factors affecting tax charge for the year
The tax on the Group's profit before tax differs from the standard rate of
corporation tax in the United Kingdom of 21.17% (2014: 23.08%). The reasons
for this are explained below:
Year ended Year ended
28 February 2015 28 February 2014
£'000 % £'000 %
Profit before taxation 9,604 100.00 9,479 100.00
Profit on ordinary activities multiplied by the standard rate of corporation tax in the UK of 21.17% (2014: 23.08%) 2,033 21.17 2,188 23.08
Effects of:
Non-deductible revenue expenditure 23 0.24 (42) (0.44)
Non-qualifying depreciation 18 0.19 21 0.22
Share-based payment transactions - - 22 0.23
Movement in unrecognised temporary differences 38 0.40 53 0.56
Different rates of tax in foreign jurisdictions 71 0.74 318 3.35
Tax losses utilised (583) (6.08) (260) (2.74)
Movement in deferred tax rate - - (268) (2.83)
Adjustment to tax charge in respect of prior years
Current tax 5 0.05 (484) (5.11)
Deferred tax (795) (8.27) 191 2.02
Tax charge for the year before disallowable costs on highlighted and other non-recurring items 810 8.44 1,739 18.34
Highlighted and other non-recurring items:
Disallowable costs incurred on acquisitions 46 0.48 37 0.39
Tax charge for the year 856 8.92 1,776 18.73
The £795,000 deferred tax adjustment in respect of prior years relates to
increased certainty over the recoverability of temporary differences in the
US.
6. Dividends
Year ended Year ended
28 February 28 February
2015 2014
£'000 £'000
Amounts paid in the year
Prior period final 4.84p dividend per share (2014: 4.56p) 3,531 3,326
Interim 1.02p dividend per share (2014: 0.98p) 745 715
Total dividend payments in the year 4,276 4,041
Amounts arising in respect of the year
Interim 1.02p dividend per share for the year (2014: 0.98p) 745 715
Proposed 5.08p final dividend per share for the year (2014: 4.84p) 3,797 3,531
Total dividend 6.10p per share for the year (2014: 5.82p) 4,542 4,246
The Directors are recommending a final dividend of 5.08 pence per share,
which, subject to shareholder approval at the Annual General Meeting, will be
paid on 23 September 2015 to shareholders on the register at close of business
on 28 August 2015. The ex-dividend date is 26 August 2015.
7. Acquisitions
Osprey Publishing Group
On 22 December 2014 the Group acquired the issued share capital of Osprey
Publishing Limited ('Osprey'), the Oxford-based military and natural history
publisher, from private equity ownership, principally The Third Alcuin Fund
LP, a fund managed by Alcuin Capital Partners LLP. The consideration of £4.6
million was satisfied by the payment of £3.2 million in cash on completion and
the issue of 869,054 new Bloomsbury Ordinary shares to the value of £1.4
million.
The acquisition of Osprey increases our presence in niche special interest
markets. It is complementary to, and will substantially enhance, our existing
lists; in particular increasing the division's expertise in natural history
and military history publishing, as well as international sales. Over 50% of
Osprey's revenue is generated outside the UK, thereby increasing Bloomsbury's
benefit from the global book market.
The table below summarises the fair values to the Group included in the
consolidated financial statements of the major categories of assets and
liabilities of Osprey at the date of acquisition.
Total fair value to
the Group
Net assets acquired £'000
Identifiable intangible assets 1,583
Property, plant and equipment 44
Inventories 1,848
Trade and other receivables 1,537
Cash and cash equivalents 309
Deferred tax liability (234)
Payables and provisions (2,022)
Total net assets acquired 3,065
Goodwill 1,581
Total 4,646
Satisfied by:
Cash consideration 3,250
Share consideration 1,396
Total consideration 4,646
Identifiable intangible assets of £1,583,000 consist of publishing rights of
£719,000, imprint of £782,000, customer relationships of £74,000 and software
of £8,000. The publishing rights and customer relationships have a useful life
of 12 years and imprint 20 years. The goodwill arising of £1,581,000 is
attributable to the expected profitability of the acquired business and the
synergies expected to arise after the acquisition.
The gross contractual trade receivable at acquisition is £1,644,000 of which
£46,000 is the best estimate of the contractual cash flows that are not
expected to be collected.
Transaction costs of £210,000 have been expensed in the year within
administrative expenses.
From 23 December 2014 revenue of £1,195,000 and profit before tax attributable
to owners of the Company of £26,000 has been included in the consolidated
income statement in relation to Osprey.
If the acquisition had occurred on 1 March 2014 the revenue and profit
attributable to shareholders of the combined entity for the current year would
have been £117.0 million and £8.3 million respectively. These pro forma
amounts do not include any possible synergies from the acquisition. The pro
forma information is provided for comparative purposes only and does not
necessarily reflect the actual results that would have occurred, nor is it
necessarily indicative of future results of operations of the combined
companies.
8. Earnings per share
The basic earnings per share for the year ended 28 February 2015 is calculated
using a weighted average number of Ordinary shares in issue of 73,250,139
(2014: 72,852,467) after deducting 268,293 (2014: 898,244) 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.
Year ended Year ended
28 February 28 February
2015 2014
Number Number
Weighted average shares in issue 73,250,139 72,852,467
Dilution 262,644 1,009,084
Diluted weighted average shares in issue 73,512,783 73,861,551
£'000 £'000
Profit after tax attributable to owners of the Company 8,748 7,703
Basic earnings per share 11.94p 10.57p
Diluted earnings per share 11.90p 10.43p
Year ended Year ended
28 February 28 February
2015 2014
£'000 £'000
Adjusted profit attributable to owners of the Company1 10,826 9,456
Adjusted basic earnings per share 14.78p 12.98p
Adjusted diluted earnings per share 14.73p 12.80p
Adjusted profit is derived as follows:
Year ended Year ended
28 February 28 February
2015 2014
(restated)1
£'000 £'000
Profit before tax 9,604 9,479
Amortisation of acquired intangible assets1 1,825 1,710
Other highlighted items 650 765
Adjusted profit before tax1 12,079 11,954
Tax expense 856 1,776
Deferred tax movements on goodwill and acquired intangible assets 305 582
Tax expense on other highlighted items 92 140
Adjusted tax 1,253 2,498
Adjusted profit 1 10,826 9,456
1Adjusted profit has been restated for the year ended 28 February 2014, see
note 2).
9. Trade and other receivables
28 February 28 February
2015 2014
£'000 £'000
Gross trade receivables 38,489 32,133
Less: provision for impairment of receivables (627) (498)
Less: provision for returns (6,057) (4,749)
Net trade receivables 31,805 26,886
Income tax recoverable 4 584
Other receivables 2,637 1,464
Prepayments and accrued income 27,254 27,849
Total trade and other receivables 61,700 56,783
As at 28 February 2015 £5,154,000 (2014: £5,120,000) of net advances are
expected to be recovered after more than 12 months.
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 for the return of books by customers is made with reference to the
historic rate of returns.
Prepayments and accrued income include net advances. 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.
10. Annual General Meeting
The Annual General Meeting will be held at on 23 July 2015.
11. Report and Accounts
Copies of the Annual Report and Financial Statements will be circulated to
shareholders in July and can be viewed after the posting date on the
Bloomsbury website.
This information is provided by RNS
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