REG - BloomsburyPublishing - Unaudited Interim Results
26/10/2023 07:00
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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 £136.7 million and profit growth
of 11% to £17.7 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 £11.2 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 £5.9 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 £39.1 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 £273.1 million and profit before taxation
and highlighted items of £32.5 million.
Financial Highlights
2023 2022 2021 Growth 2023 vs 2022 Growth 2023 vs 2021
Revenue £136.7 million £122.9 million £100.7 million 11% 36%
Profit before taxation and highlighted items(1) £17.7 million £15.9 million £12.9 million 11% 37%
Profit before taxation £14.0 million £12.9 million £11.1 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%
Net cash £39.1 million £41.5 million £43.7 million (6)% (10)%
Interim dividend 3.70 pence per share 1.41 pence per share 1.34 pence per share 162% 176%
Operational Highlights
Consumer Division
· Strong Consumer revenue growth of 17% to £89.4 million (2022: £76.3
million)
· Consumer profit before taxation and highlighted items(1) increased by
26% to £11.2 million (2022: £8.9 million)
· Adult Trade revenue up 8% to £27.6 million (2022: £25.7 million) and
profit before taxation and highlighted items(1) of £0.1 million (2022: £0.2
million)
· Children's Trade revenue growth of 22% to £61.7 million (2022: £50.6
million) and profit before taxation and highlighted items(1) up 29% to £11.1
million (2022: £8.7 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 £47.3 million (2022: £46.6
million)
· Non-Consumer profit before taxation and highlighted items(1) of £5.9
million (2022: £7.1 million)
· Academic & Professional revenue of £36.4 million (2022: £36.5
million) and profit before taxation and highlighted items(1) of £5.9 million
(2022: £7.3 million)
· Bloomsbury Digital Resources ("BDR") revenue of £13.3 million (2022:
£13.6 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 (mailto:nigel.newton@bloomsbury.com)
Penny Scott-Bayfield, Group Finance Director penny.scott-bayfield@bloomsbury.com
(mailto:penny.scott-bayfield@bloomsbury.com)
Hudson Sandler +44 (0) 20 7796 4133
Dan de Belder / Emily Brooker bloomsbury@hudsonsandler.com (mailto: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 £136.7 million (2022: £122.9 million), and an 11% increase in profit
before taxation and highlighted items to £17.7 million (2022: £15.9
million). Profit before taxation grew by 8% to £14.0 million (2022: £12.9
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 £13.3 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 £37 million turnover.
The highlighted items of £3.7 million (2022: £3.0 million) consist of the
amortisation of acquired intangible assets of £2.5 million (2022: £2.7
million), one-off legal and other professional fees relating to ongoing and
completed acquisitions and restructuring costs of £1.2 million (2022: £0.3
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 £14.0 million (2022: £12.9 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 £47.3 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 £37 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 £47.3
million (2022: £46.6 million). Profit before taxation and highlighted items
for the Non-Consumer division was £5.9 million (2022: £7.1 million). Profit
before taxation was £3.6 million (2022: £4.6 million).
Academic & Professional
Academic & Professional revenues were £36.4 million (2022: £36.5
million) and profit before taxation and highlighted items was £5.9 million
(2022: £7.3 million). Profit before taxation was £3.7 million (2022: £4.9
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
£37 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 £10.9 million (2022: £10.1 million) and generated a small profit before taxation and highlighted items of £0.04 million (2022: £0.1 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 £89.4 million
(2022: £76.3 million). Profit before taxation and highlighted items increased
by 26% to £11.2 million (2022: £8.9 million). Profit before taxation
increased by 27% to £11.0 million (2022: £8.7 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 £27.6 million (2022:
£25.7 million) and profit before taxation and highlighted items of £0.1
million (2022: £0.2 million). Loss before taxation was £0.1 million (2022:
£0.1 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 £61.7 million (2022: £50.6 million).
Profit before taxation and highlighted items increased by 29% to £11.1
million (2022: £8.7 million). Profit before taxation increased by 29% to
£11.1 million (2022: £8.7 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
highlights 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 £39.1 million (2022: £41.5 million).
The Group has an unsecured revolving credit facility with Lloyds Bank Plc. The
facility comprises a committed revolving loan facility of £10.0 million and
an uncommitted incremental term loan facility of up to £6.0 million. At 31
August 2023, the Group had no draw down (2022: £nil) 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 £37 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 £273.1 million and profit before taxation
and highlighted items of £32.5 million.
Condensed Consolidated Interim Income Statement
For the six months ended 31 August 2023
Notes 6 months ended Year
31 August 6 months ended ended
2023 31 August 28 February
£'000 2022 2023
£'000 £'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 ended 6 months Year
31 August ended ended
2023 31 August 28 February
£'000 2022 2023
£'000 £'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 6,057 20,381 27,708
Company
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
£'000 £'000 £'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
Share capital Share premium Translation Capital redemption reserve Share-based payment reserve Own shares held by the EBT Retained Total equity
reserve earnings
Merger reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'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
Share capital Share premium Translation Capital redemption reserve Share-based payment reserve Own shares held by the EBT Retained Total equity
reserve earnings
Merger reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'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
Share capital Share premium Translation Capital redemption reserve Share-based payment reserve Own shares held by the EBT Retained Total equity
reserve earnings
Merger reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'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 ended 6 months Year
ended ended
31 August 31 August 28 February
2023 2022 2023
£'000 £'000 £'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 £49.1m, comprising
central cash balances and its undrawn £10.0m 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 £nil draw down (2022: £nil) of this facility
with £10.0 million of undrawn borrowing facilities (2022: £10.0 million)
available. The facility comprises a committed revolving credit facility of
£10 million, and an uncommitted incremental term loan facility of up to £6
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 Trade Adult Trade Consumer Academic & Professional Special Interest Non-Consumer Unallocated Total
Six months ended 31 August 2023 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'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 Trade Adult Trade Consumer Academic & Professional Special Interest Non-Consumer Unallocated Total
Six months ended 31 August 2022 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'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 Trade Adult Trade Consumer Academic & Professional Special Interest Non-Consumer Unallocated Total
Year ended 28 February 2023 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'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 Trade Adult Trade Consumer Academic & Professional Special Interest Non-Consumer Unallocated Total
Six months ended 31 August 2023 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'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 Trade Adult Trade Consumer Academic & Professional Special Interest Non-Consumer Unallocated Total
Six months ended 31 August 2022 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'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 Trade Adult Trade Consumer Academic & Professional Special Interest Non-Consumer Unallocated Total
Year ended 28 February 2023 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'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
£'000 £'000 £'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
2023 2022 £'000
£'000 £'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 ended Six months ended Year
31 August 31 August ended
2023 2022 28 February
£'000 £'000 2023
£'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
£131,000 were incurred as a result of acquisitions including the ABC-CLIO,
LLC acquisition. Integration and restructuring costs of £1,073,000 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
£111,000 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 £205,000 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
£93,000 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 ended Six months ended Year
ended
31 August 31 August 28 February
2023 2022 2023
£'000 £'000 £'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
£'000 £'000 £'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 £'000 £'000 £'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 £10,137,000 (31 August 2022 £8,909,000 and 28
February 2023 £7,745,000) 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 Young of Hornsey Independent Non-Executive Director
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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