REG - BloomsburyPublishing - Unaudited Interim Results
24/10/2024 07:00
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RNS Number : 3849J Bloomsbury Publishing PLC 24 October 2024
BLOOMSBURY PUBLISHING PLC
Unaudited Interim Results for the six months ended 31 August 2024
Upgrading full year expectations after record first half revenue and profit
Bloomsbury Publishing Plc (LSE: BMY, "Bloomsbury" or "the Company"), the
leading independent publisher, today announces unaudited results for the six
months ended 31 August 2024.
Commenting on the results, Nigel Newton, Chief Executive, said:
"Bloomsbury's strong results reflect implementation of the recently announced
Bloomsbury 2030 vision, focused on our growth, portfolio and people. We have
achieved our fifth consecutive double-digit growth in the first half with
revenue growth of 32% to £179.8m, an increase of £43.1m, and profit(1)
growth of 50% to £26.6m, an increase of £8.9m. We have acquired Rowman &
Littlefield, significantly strengthening our academic portfolio. We have been
awarded the Great Place to Work Certification(TM) recognising the motivation
and commitment of the people who work at Bloomsbury. Bloomsbury was admitted
to the FTSE 250 on 1 August. Finally, we have risen to be the 39(th) largest
publisher in the world up from 51(st) in 2020 according to the recent Global
Publishing Ranking league table.
Consumer division revenue growth of 47% was driven by the continued success of
our fantasy fiction and a wide range of bestsellers from cookery to novels.
Bloomsbury was voted Children's Publisher of the Year 2024 at the British Book
Awards and our international success was recognised by winning the British
Book Award for Export. In the Academic division, we achieved revenue growth of
6%; the integration of Rowman & Littlefield is progressing well, its sales
are on target and Bloomsbury Digital Resources ("BDR") grew by 2%. Rowman
& Littlefield will accelerate BDR's growth, as Bloomsbury applies its
proven ability to create digital revenues to Rowman & Littlefield's market
leading titles.
Following our strong performance in the first half of this year and good
trading in September and October, we now expect trading for full year 2024/25
to be ahead of the current consensus(2) expectation."
Operational Highlights
Consumer Division
· Consumer revenue up 47% to £131.3m (H1 2023/24: £89.4m) and profit before
taxation and highlighted items(3) up 91% to £21.4m (H1 2023/24: £11.2m)
· Sarah J. Maas' sales grew by 102% (H1 2023/24: 79%)
· J.K. Rowling's Harry Potter series continues to be a bestseller 27 years after
publication
· Bloomsbury won Children's Publisher of the Year and the Export Award at the
British Book Awards
Non-Consumer Division
· Non-Consumer revenue growth of 3% to £48.5m (H1 2023/24: £47.3m) and profit
before taxation and highlighted items(3) of £5.2m (H1 2023/24: £5.9m)
· Academic & Professional revenue grew by 6% to £38.5m (H1 2023/24:
£36.4m) and profit before taxation and highlighted items(3) grew by 3% to
£6.0m (H1 2023/24: £5.9m) with margin of 16%
· Academic & Professional organic revenue declined 14% mainly due to current
UK and US budgetary pressures and the accelerated shift from print to digital,
against a background of student numbers being projected to grow worldwide(4)
· Rowman & Littlefield has traded in line with our expectations,
contributing £7.2m revenue
· We have started to implement efficiencies in the enlarged Academic division
and the Rowman & Littlefield integration is progressing well
· BDR revenue increased organically to £13.7m (H1 2023/24: £13.3m) and remains
on track for the target c.£41m revenue in 2027/28
Financial Highlights
First Half Results 2024/25 2023/24 2022/23 '25 vs '24 '25 vs '23
Revenue £179.8m £136.7m £122.9m 32% 46%
Organic revenue(5) £172.6m £136.7m £122.9m 26% 40%
Profit before taxation and highlighted items(3) £26.6m £17.7m £15.9m 50% 67%
Profit before taxation £22.1m £14.0m £12.9m 58% 71%
Adjusted diluted earnings per share 24.68p 17.47p 15.30p 41% 61%
Diluted earnings per share 20.10p 13.66p 12.30p 47% 63%
Net cash £9.7m £39.1m £41.5m (75)% (77)%
Interim dividend per share 3.89p 3.70p 1.41p 5% 176%
Notes
1 Profit before taxation and highlighted items.
2 The Board considers consensus market expectations (before this publication)
for the year ending 28 February 2025 to be revenue of £319.3m and profit
before taxation and highlighted items of £37.5m.
3 Highlighted items comprise amortisation of acquired intangible assets and
legal and other professional costs relating to ongoing and completed
acquisitions, integration and restructuring costs.
4 World Bank estimates that globally there will be 380m higher education
students by 2030 up 73% from 220m in 2021.
5 Organic revenue for H1 2024/25 is defined as total revenue of £179.8m less
revenue attributable to the acquisition of Rowman & Littlefield in the
period.
( )
For further information, please contact:
Bloomsbury Publishing Plc
Tamsin Garrity, Head of Investor Relations tamsin.garrity@bloomsbury.com (mailto:tamsin.garrity@bloomsbury.com)
Hudson Sandler +44 (0) 20 7796 4133
Dan de Belder / Hattie Dreyfus / Emily Brooker bloomsbury@hudsonsandler.com (mailto:bloomsbury@hudsonsandler.com)
Disclaimer
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 achieved the highest first half revenue and profit in its history
in the six months to 31 August 2024. In May, we announced the Bloomsbury 2030
vision which is focused on our growth, our portfolio and our people. We are
achieving our initial growth ambitions with the fifth consecutive double-digit
growth in revenue and profit in the first half with revenue growth of 32% to
£179.8m and profit growth of 50% to £26.6m. In May, we significantly
strengthened our academic portfolio with the acquisition of Rowman &
Littlefield. Turning to our people, we are proud to have earned the coveted
Great Place to Work Certification(TM).
Within the Consumer division, the continued success of our authors in the
fantasy genre, particularly Sarah J. Maas, alongside a wide range of other
bestsellers, combined to achieve Consumer revenue growth of 47%.
Academic & Professional revenue increased by 6% and profit before taxation
and highlighted items grew by 3%. Within this, Rowman & Littlefield is
performing well and BDR increased sales organically by 2% to £13.7m, on track
to meet our recently increased target of c.£41m BDR sales in 2027/28. While
the academic market is experiencing budget pressure in the UK and parts of the
US, we are well positioned given our long-term strategic focus on the shift
from print to digital with BDR and having further deepened and broadened our
subject areas with the acquisition of the 41,000 titles of Rowman &
Littlefield. Since completion, we have identified and are implementing actions
to enhance efficiencies in the newly enlarged division. Our positioning and
strategy underpin our confidence in our academic division.
We are exploring the opportunity to monetise content through AI deals in a
responsible and ethical manner.
Bloomsbury welcomes the passing into law of the Digital Markets Competition
and Consumer Act 2024 to ensure a more level playing field between online
retailers and publishers and authors than at present. With great power comes
great responsibility but a regulator is essential to enforce it.
We are progressing with key infrastructure changes announced in the Bloomsbury
2030 vision to support growth and profitability. We have previously announced
projects to change our UK distribution and warehousing arrangements and
implement our new global royalties system; we are also strengthening our sales
infrastructure with the creation of the US key account sales team replacing a
third party commission sales arrangement. These initiatives are all on track.
We have successfully pursued our long-term strategy of combining general and
academic publishing and have diversified across formats and territories. This
strategy has created a portfolio of portfolios - a model that continues to
provide the company with resilient growth and strong cash generation.
Group Financials
Bloomsbury achieved revenue growth of 32%, of which 26% was organic, to
£179.8m (H1 2023/24: £136.7m). Group profit before taxation and highlighted
items increased by 50% to £26.6m (H1 2023/24: £17.7m). Profit before
taxation increased by 58% to £22.1m (H1 2023/24: £14.0m).
The acquisition of Rowman & Littlefield, completed on 28 May 2024,
contributed revenue of £7.2m in the period, in line with our expectations.
The acquisition drove an increase in highlighted items to £4.5m (H1 2023/24:
£3.7m), consisting of the amortisation of acquired intangible assets of
£3.7m (H1 2023/24: £2.5m) and one-off legal and other professional fees
relating to acquisitions, integration and restructuring costs of £0.8m (H1
2023/24: £1.2m).
The effective rate of tax for the six months was 25% (H1 2023/24: 20%). The
adjusted effective rate of tax, excluding highlighted items, was 23% (H1
2023/24: 19%).
Diluted earnings per share, excluding highlighted items, grew 41% to 24.68p
(H1 2023/24: 17.47p). Including highlighted items, profit before tax
increased to £22.1m (H1 2023/24: £14.0m) and diluted earnings per share grew
47% to 20.10p (H1 2023/24: 13.66p). The interim dividend will increase by 5%
increase to 3.89p per share (H1 2023/24: 3.70p).
Consumer Division
The Consumer division, which consists of Adult, Young Adult and Children's
publishing, has had a stellar period, generating revenue growth of 47% to
£131.3m (H1 2023/24: £89.4m). Profit before taxation and highlighted items
increased by 91% to £21.4m (H1 2023/24: £11.2m). Profit before taxation
increased to £21.2m (H1 2023/24: £11.0m).
The success of Sarah J. Maas continued with her new book, Crescent City: House
of Flame and Shadow, which became a global No.1 bestseller on publication on
30 January 2024 and drove significant sales in her 15 backlist titles. The
momentum continued with Sarah J. Maas' sales growth of 102% in the first half
compared to the first half of 2023/24. As previously disclosed, we are not
publishing a new frontlist Sarah J. Maas title in the second half of this
year, therefore our exceptional Consumer performance in the second half of the
last financial year provides a tough comparative. Bloomsbury has six future
books under contract with Sarah J. Maas and will publish the paperback of
Crescent City: House of Flame and Shadow in 2025/26.
Harry Potter title sales remain strong 27 years after first publication,
demonstrating the enduring appeal of this classic series. The forthcoming
Harry Potter TV series will introduce the books to new readers: Warner
Brothers Discovery has announced that it is planning a seven season run of a
new Harry Potter streaming series, based on the original seven books, to be
broadcast on the Max streaming service.
The Three Body Problem by Cixin Liu, first published sixteen years ago, has
seen strong sales in H1 2024/25, driven by the release of the Netflix series
in March. Second and third seasons have been commissioned by Netflix, which we
expect to drive further sales of the trilogy.
Bloomsbury was awarded Children's Publisher of the Year at the British Book
Awards in May 2024. Katherine Rundell was recognised as the 'pre-eminent
children's author of her generation' in being awarded Author of the Year and
Book of the Year - Children's Fiction for Impossible Creatures. Bloomsbury
author Atinuke was awarded Book of the Year - Children's Non-Fiction for
Brilliant Black British History and Bloomsbury won The British Book Award for
Export for the second time in four years.
Commercial and literary recognition for our authors continued, notably:
· Sarah J. Maas titles were in bestseller lists globally, including more than
200 appearances in the New York Times bestseller list. Bloomsbury has sold
more than 55m of Sarah's books in English worldwide;
· Anne Michaels' Held has been shortlisted for the Booker Prize 2024, her
Fugitive Pieces having previously won the Orange Prize;
· Katya Balen's Foxlight was awarded the 2024 Wainwright Prize for Children's
Nature and Conservation Writing;
· Bloomsbury authors were medalists in this year's Independent Publisher Book
Awards: Jennifer Croft, Samantha Shannon, Tan Twan Eng, Roz Chast, Rachel
Louise Snyder, Justine Pucella Winans, Gabi Burton and Trang Thanh Tran;
· Hugh Fearnley-Whittingstall's How to Eat 30 Plants a Week was a No. 1 Sunday
Times bestseller;
· Georgina Hayden's Greekish was a Sunday Times bestseller;
· Poppy O'Toole's Poppy Cooks: The Actually Delicious Air Fryer Cookbook was a
Sunday Times bestseller;
· Ann Patchett's Tom Lake was a Sunday Times bestseller;
· The Bunny Adventures Sunday Times bestselling series continued with Martha
Mumford and Cherie Zamazing's Hooray! It's our First Day;
· In the US, Jesmyn Ward was presented the Preston Award for Distinguished
Service to the literary community, Trang Thanh Tran won the 2023 Stoker Award
for superior achievement in a Young Adult Novel and Roz Chast was awarded the
First Thurber Prize for American Humor in Cartoon Art;
· The US National Independent Bestseller list included The Extinction of Irena
Rey by Jennifer Croft, A Day of Fallen Night by Samantha Shannon and Welcome
to the Hyunam-Dong Bookshop by Hwang Bo-reum.
Non-Consumer Division
The Non-Consumer division consists of Academic & Professional, including
Bloomsbury Digital Resources, and Special Interest. Non-Consumer division
revenue grew by 3% to £48.5m (H1 2023/24: £47.3m). Profit before taxation
and highlighted items was £5.2m (H1 2023/24: £5.9m). Profit before taxation
was £1.7m (H1 2023/24: £3.6m).
Non-Consumer Division: Academic & Professional
Academic & Professional revenue increased by 6% to £38.5m (H1 2023/24:
£36.4m), within which Rowman & Littlefield contributed £7.2m revenue in
the three months since acquisition; organic revenue reduced by 14%. Profit
before taxation and highlighted items increased to £6.0m (H1 2023/24: £5.9m)
with margin of 16% (H1 2023/24: 16%). Profit before taxation was £2.7m (H1
2023/24: £3.7m).
The Academic & Professional market is experiencing budget pressures in the
UK and parts of the US, against a background of student numbers being
projected to grow worldwide.(1) Budgetary pressure in UK higher education
institutions has been driven by a decrease in international students. In the
US, pressure on small to mid-sized institutions has been driven by lower
enrolment, to which contributing factors are demographics, the strong jobs
market and high cost of living. However, demand from larger US institutions,
which are major customers of ours, remains strong. Further, the shift from
print to digital has continued to accelerate, resulting in lower sales of
print academic books.
We have built Bloomsbury Digital Resources precisely to be ahead of this
digital trend and digital sales are now 52% of division revenue. We have
identified and are implementing actions to protect profitability and margin
across the division, and we are adapting to the market with the broadening and
deepening of our offering through the integration of Rowman &
Littlefield's market leading titles and the expansion of subject areas,
particularly business and psychology.
BDR revenue grew 2% organically to £13.7m (H1 2023/24: £13.3m). Our BDR
growth strategy continues to build high margin, high quality, repeatable
digital revenue from our market leading Academic & Professional IP. The
strategically important acquisition of Rowman & Littlefield will
accelerate BDR's growth, as Bloomsbury applies its proven ability to create
digital revenues to Rowman & Littlefield's market leading titles,
expanding BDR products and driving innovation. We reiterate our increased BDR
target to reach c.£41m of revenue in 2027/28.
The integration of Rowman & Littlefield is progressing well. We are
utilising our extensive experience of previous acquisitions in the integration
of people and the IP, and trading since the acquisition has been in line with
our expectations. Since completion, we have identified and are implementing
actions to enhance efficiencies in the newly enlarged division.
Bloomsbury's Academic business combined with Rowman & Littlefield
publishes c.97,000 titles, cementing Bloomsbury's strong market position in
core subject areas and strengthening areas where the Group is building a
presence including business and psychology. The acquisition enables us to
focus the combined Bloomsbury Academic business on deeper global market
penetration, subject area expansion and continued innovation in digital
scholarship and learning. The actions undertaken and strength of our offering
underpin our confidence in our Academic strategy.
Non-Consumer Division: Special Interest
Special Interest revenue was £10.0m (H1 2023/24: £10.9m) and loss before
taxation and highlighted items was £0.8m (H1 2023/24: profit of £0.0m). This
follows a strong performance last year. The Sunday Times Cycling Book of the
Year 2024 was awarded to 1923: The Mystery of Lot 212 and a Tour de France
Obsession by Ned Boulting and The People's Book Prize for Non-Fiction 2023/24
was awarded to Fearless: Adventures with Extraordinary Women by Louise
Minchin. The British Book Awards highly commended Start-Up Century by James
Wise. The 2024 Wainwright Prize for Writing on Conservation highly commended
Chantal Lyons' Groundbreakers: The Return of Britain's Wild Boar. Regular
publications such as Wisden Cricketers' Almanack and Reeds Nautical Almanac
remain loved by enthusiasts.
Acquisitions
The acquisition of Rowman & Littlefield's academic publishing assets for
$83m on 28 May 2024 has significantly accelerated and strengthened
Bloomsbury's academic publishing in North America and will benefit BDR in
particular.
Bloomsbury has a successful track record in strategic acquisitions, with 34
completed. We will assess further acquisition opportunities in line with our
long-term growth strategy, particularly within Academic.
Cash and Financing
Bloomsbury's cash generation was strong with net cash as at 31 August 2024 of
£9.7m (H1 2023/24: £39.1m).
The Group has an unsecured term loan with Lloyds Bank Plc, used for the
acquisition of Rowman & Littlefield alongside cash. This comprises a
committed term loan of $37.5m and runs for 3 years to May 2027.
The Group has an unsecured revolving credit facility with Lloyds Bank Plc. The
facility comprises a committed revolving credit facility of £20m and an
uncommitted incremental term loan facility of up to £20m. The agreement runs
to November 2026. At 31 August 2024, the Group had no draw down (H1 2023/24:
£nil) of this facility.
Both 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.
Dividend
The interim dividend will increase by 5% to 3.89p per share (H1 2023/24
3.70p). Bloomsbury has a progressive dividend policy and reiterates its
intention to increase the dividend for the full year in-line with the Board's
expectations.(2) The interim dividend will be paid on 29 November 2024 to
Shareholders on the register on the record date of 1 November 2024.
Future Publishing
Our strong list for H2 2024/25 includes:
· Gillian Anderson's Want, published on 5 September 2024, which was a No. 1
Sunday Times bestseller;
· Poppy O'Toole's Poppy Cooks' Actually Delicious Slow Cooker Cookbook was
published 12 September 2024 and also reached No. 1 in the Sunday Times
bestseller list;
· The Golden Road: How Ancient India Transformed the World by William Dalrymple,
the co-host of the chart topping Empire podcast, was published on 5 September
2024 and became a Sunday Times bestseller;
· Fred Sirieix's new title Seriously British: A Frenchman's love letter to
Britain was published on 12 September 2024;
· Dan Jones' Henry V waspublished on 12 September 2024, which was a Sunday Times
bestseller;
· Blind Spots by Marty Makary published on 17 September 2024, which was a New
York Times bestseller;
· Christmas at Hogwarts: a new Harry Potter illustrated gift book published on
15 October 2024, with text drawn directly from Harry Potter and the
Philosopher's Stone;
· Gino's Air Fryer Cook Book by Gino D'Acampo published on 24 October 2024;
· Ghosts Brought to Life: The Making of a Classic published on 24 October 2024;
· The official companion book to the BBC TV series Gladiators Ready!will be
published on 7 November 2024; and
· Samantha Shannon's The Dark Mirror, the fifth book in the hugely successful
Bone Season series, which will be published on 25 February 2025.
Current Trading & Outlook
Following our strong performance in the first half of this year and good
trading in September and October, we now expect trading for full year 2024/25
to be ahead of the current consensus expectation.(3)
Note
1. World Bank estimates that globally there will be 380m higher
education students by 2030 up 73% from 220m in 2021.
2. The Board considers consensus market expectation for the year
ending 28 February 2025 to be 5% dividend growth.
3. The Board considers consensus market expectation (before this
publication) for the year ending 28 February 2025 to be revenue of £319.3m
and profit before taxation and highlighted items of £37.5m.
Condensed Consolidated Interim Income Statement
For the six months ended 31 August 2024
Notes 6 months ended Year
31 August 6 months ended ended
2024 31 August 29 February
£'m 2023 2024
£'m £'m
Revenue 3 179.8 136.7 342.7
Cost of sales (76.2) (59.0) (148.1)
Gross profit 103.6 77.7 194.6
Marketing and distribution costs (27.6) (17.3) (49.8)
Administrative expenses (53.8) (46.8) (104.2)
Share of result of joint venture (0.1) - -
Operating profit before highlighted items 26.6 17.3 47.9
Highlighted items 4 (4.5) (3.7) (7.3)
Operating profit 22.1 13.6 40.6
Finance income 0.7 0.6 1.3
Finance costs (0.7) (0.2) (0.4)
Profit before taxation and highlighted items 26.6 17.7 48.8
Highlighted items 4 (4.5) (3.7) (7.3)
Profit before taxation 3 22.1 14.0 41.5
Taxation (5.5) (2.8) (9.2)
Profit for the period attributable to owners of the Company 16.6 11.2 32.3
Earnings per share attributable to owners of the Company
Basic earnings per share 6 20.38p 13.81p 39.77p
Diluted earnings per share 6 20.10p 13.66p 39.11p
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 2024
6 months ended 6 months Year
31 August ended ended
2024 31 August 29 February
£'m 2023 2024
£'m £'m
Profit for the period 16.6 11.2 32.3
Other comprehensive income
Items that may be reclassified to the income statement:
Exchange differences on translating foreign operations (5.0) (5.1) (4.7)
Other comprehensive income for the period net of tax (5.0) (5.1) (4.7)
Total comprehensive income for the period attributable to owners of the 11.6 6.1 27.6
Company
Items in the statement above are disclosed net of tax.
Condensed Consolidated Interim Statement of Financial Position
At 31 August 2024
Notes 31 August 31 August 29 February
2024 2023 2024
£'m £'m £'m
Assets
Goodwill 75.0 48.2 48.3
Other intangible assets 62.5 35.1 32.0
Property, plant and equipment 1.9 2.2 2.2
Right-of-use assets 6.7 8.4 7.5
Deferred tax assets 15.2 11.2 13.7
Trade and other receivables 8 0.8 0.8 0.8
Total non-current assets 162.1 105.9 104.5
Inventories 48.8 40.4 36.6
Trade and other receivables 8 142.6 121.7 164.8
Cash and cash equivalents 38.1 39.1 65.8
Total current assets 229.5 201.2 267.2
Total assets 391.6 307.1 371.7
Liabilities
Deferred tax liabilities 3.0 3.4 2.7
Lease liabilities 5.7 7.4 6.5
Borrowings 28.4 - -
Provisions 0.6 0.3 0.5
Total non-current liabilities 37.7 11.1 9.7
Trade and other liabilities 145.9 108.3 152.0
Lease liabilities 2.2 2.4 2.4
Current tax liabilities 2.0 0.9 4.0
Provisions 1.2 0.9 1.1
Total current liabilities 151.3 112.5 159.5
Total liabilities 189.0 123.6 169.2
Net assets 202.6 183.5 202.5
Equity
Share capital 1.0 1.0 1.0
Share premium 47.3 47.3 47.3
Translation reserve 5.9 10.5 10.9
Other reserves 12.9 10.0 12.8
Retained earnings 135.5 114.7 130.5
Total equity attributable to owners of the Company 202.6 183.5 202.5
Condensed Consolidated Interim Statement of Changes in Equity
At 31 August 2024
Share capital Share premium Translation Other reserves Share-based payment reserve Own shares held by the EBT Retained Total equity
reserve earnings
£'m £'m £'m £'m £'m £'m £'m £'m
At 1 March 2024 1.0 47.3 10.9 1.8 11.7 (0.7) 130.5 202.5
Profit for the period - - - - - - 16.6 16.6
Other comprehensive income
Exchange differences on translating foreign operations - - (5.0) - - - - (5.0)
Total comprehensive income for the period - - (5.0) - - - 16.6 11.6
Transactions with owners
Dividends to equity holders of the Company - - - - - - (9.0) (9.0)
Purchase of shares by the Employee Benefit Trust - - - - - (3.0) - (3.0)
Share options exercised - - - - - 2.3 (2.2) 0.1
Deferred tax on share-based payment transactions - - - - - - (0.4) (0.4)
Share-based payment transactions - - - - 0.8 - - 0.8
Total transactions with owners of the Company - - - - 0.8 (0.7) (11.6) (11.5)
At 31 August 2024 1.0 47.3 5.9 1.8 12.5 (1.4) 135.5 202.6
Share capital Share premium Translation Other reserves Share-based payment reserve Own shares held by the EBT Retained Total equity
reserve earnings
£'m £'m £'m £'m £'m £'m £'m £'m
At 1 March 2023 1.0 47.3 15.6 1.8 10.7 (1.6) 113.0 187.8
Profit for the period - - - - - - 11.2 11.2
Other comprehensive income
Exchange differences on translating foreign operations - - (5.1) - - - - (5.1)
Total comprehensive income for the period - - (5.1) - - - 11.2 6.1
Transactions with owners
Dividends to equity holders of the Company - - - - - - (8.3) (8.3)
Purchase of shares by the Employee Benefit Trust - - - - - (2.8) - (2.8)
Share options exercised - - - - - 1.3 (1.3) -
Share options cancelled - - - - (0.2) - - (0.2)
Deferred tax on share-based payment transactions - - - - - - 0.1 0.1
Share-based payment transactions - - - - 0.8 - - 0.8
Total transactions with owners of the Company - - - - 0.6 (1.5) (9.5) (10.4)
At 31 August 2023 1.0 47.3 10.5 1.8 11.3 (3.1) 114.7 183.5
Share capital Share premium Translation Share-based payment reserve Own shares held by the EBT Retained Total equity
reserve earnings
Other reserves
£'m £'m £'m £'m £'m £'m £'m £'m
At 1 March 2023 1.0 47.3 15.6 1.8 10.7 (1.6) 113.0 187.8
Profit for the year - - - - - - 32.3 32.3
Other comprehensive income
Exchange differences on translating foreign operations - - (4.7) - - - - (4.7)
Total comprehensive income for the year - - (4.7) - - - 32.3 27.6
Transactions with owners
Dividends to equity holders of the Company - - - - - - (11.3) (11.3)
Purchase of shares by the Employee Benefit Trust - - - - - (2.8) - (2.8)
Share options exercised - - - - - 3.7 (3.3) 0.4
Share options cancelled - - - - - - (0.6) (0.6)
Deferred tax on share-based payment transactions - - - - - - (0.2) (0.2)
Share-based payment transactions - - - - 1.0 - 0.6 1.6
Total transactions with owners of the Company - - - - 1.0 0.9 (14.8) (12.9)
At 29 February 2024 1.0 47.3 10.9 1.8 11.7 (0.7) 130.5 202.5
Condensed Consolidated Interim Statement of Cash Flows
For the six months ended 31 August 2024
6 months ended 6 months Year
ended ended
31 August 31 August 29 February
2024 2023 2024
£'m £'m £'m
Cash flows from operating activities
Profit for the period 16.6 11.2 32.3
Adjustments for:
Depreciation of property, plant and equipment 0.7 0.4 0.9
Depreciation of right-of-use assets 1.0 1.0 2.0
Amortisation of intangible assets 5.7 4.8 10.4
Loss on disposal of property, plant and equipment - - 0.2
Loss on disposal on intangible assets - - 0.2
Finance income (0.7) (0.6) (1.3)
Finance costs 0.7 0.2 0.4
Share of loss of joint venture 0.1 - -
Share-based payment charges 1.1 0.9 1.8
Tax expense 5.5 2.8 9.2
30.7 20.7 56.1
(Increase)/decrease in inventories (11.0) 0.9 4.9
Decrease/(increase) in trade and other receivables 19.1 (12.7) (54.4)
(Decrease)/increase in trade and other liabilities (5.1) 0.1 43.9
Cash generated from operating activities 33.7 9.0 50.5
Income taxes paid (8.8) (4.7) (12.9)
Net cash generated from operating activities 24.9 4.3 37.6
Cash flows from investing activities
Purchase of property, plant and equipment (0.4) (0.1) (0.8)
Purchases of intangible assets (2.4) (2.6) (5.1)
Purchase of business, net of cash acquired (64.8) - -
Purchase of share in a joint venture (0.1) - -
Interest received 0.7 0.6 1.3
Net cash used in investing activities (67.0) (2.1) (4.6)
Cash flows from financing activities
Equity dividends paid (9.0) (8.3) (11.3)
Purchase of shares by the Employee Benefit Trust (3.0) (2.8) (2.8)
Proceeds from exercise of share options 0.1 - 0.4
Cancellation of share options - (0.2) (0.6)
Repayment of lease liabilities (1.3) (1.1) (2.2)
Lease liabilities interest paid (0.2) (0.2) (0.3)
Receipt of borrowings 29.4 - -
Other interest paid (0.6) - -
Net cash generated from / (used in) financing activities 15.4 (12.6) (16.8)
Net (decrease)/increase in cash and cash equivalents (26.7) (10.4) 16.2
Cash and cash equivalents at beginning of period 65.8 51.5 51.5
Exchange loss on cash and cash equivalents (1.0) (2.0) (1.9)
Cash and cash equivalents at end of period 38.1 39.1 65.8
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 2024 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 29 February
2024.
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 29 February 2024 and should be read in conjunction with the Annual
Report 2024. 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 2024 Annual Report refers to
other new standards effective from 1 March 2024. None of these standards
have had a material impact in these financial statements.
The comparative financial information for the year ended 29 February 2024 does
not constitute statutory accounts for that financial year. This information
was extracted from the statutory accounts for the year ended 29 February 2024,
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 23 October 2024.
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 2026/2027;
· Digital revenues are reduced by 20%, with recovery during 2026/2027;
· Print costs are increased by 2% from 2025/2026 and staff costs are
increased by 2% from 2025/2026;
· Downside assumptions about extended debtor days, with recovery during
2025/2026; and
· Cash preservation measures implemented and variable costs reduced.
At 31 August 2024, the Group had available liquidity of £58.1m, comprising
central cash balances and its undrawn £20.0m Revolving Credit Facility
("RCF"). The RCF agreement is to November 2026. 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 2024, the Group had £nil draw down (H1 2023/24: £nil) of this
facility with £20.0 million of undrawn borrowing facilities (H1 2023/24:
£10.0 million) available. The facility comprises a committed revolving credit
facility of £20 million, and an uncommitted incremental term loan facility of
up to £20 million.
In May 2024, the Group entered into an unsecured term loan facility with
Lloyds Bank Plc. The facility comprises a committed term loan facility of
$37.5 million and runs for 3 years to May 2027.
Both 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 2024 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.
Previously, the Consumer division was further split out into two operating
segments: Children's Trade and Adult Trade. During the period the Children's
Trade and Adult Trade operating results have been combined into a single
Consumer category for reporting regularly reviewed by the Chief Operating
Decision Maker. This change reflects how the division is managed with the
strategic focus on the consumer market as a whole. Comparative information
for prior periods has been restated to reflect this change. Non-Consumer
continues to be split between two operating segments: Academic &
Professional and Special Interest.
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:
Consumer Academic & Professional Special Interest Non-Consumer Unallocated Total
Six months ended 31 August 2024 £'m £'m £'m £'m £'m £'m
External revenue 131.3 38.5 10.0 48.5 - 179.8
Cost of sales (60.5) (10.6) (5.1) (15.7) - (76.2)
Gross profit 70.8 27.9 4.9 32.8 - 103.6
Marketing and distribution costs (22.8) (3.1) (1.7) (4.8) - (27.6)
Contribution before administrative expenses 48.0 24.8 3.2 28.0 - 76.0
Administrative expenses excluding highlighted items (26.5) (18.8) (4.0) (22.8) - (49.3)
Share of joint venture result - - - - (0.1) (0.1)
Operating profit/(loss) before highlighted items/ segment results 21.5 6.0 (0.8) 5.2 (0.1) 26.6
Amortisation of acquired intangible assets (0.2) (3.3) (0.2) (3.5) - (3.7)
Other highlighted items - - - - (0.8) (0.8)
Operating profit/(loss) 21.3 2.7 (1.0) 1.7 (0.9) 22.1
Finance income - - - - 0.7 0.7
Finance costs (0.1) - - - (0.6) (0.7)
Profit/(loss) before taxation and highlighted items 21.4 6.0 (0.8) 5.2 - 26.6
Amortisation of acquired intangible assets (0.2) (3.3) (0.2) (3.5) - (3.7)
Other highlighted items - - - - (0.8) (0.8)
Profit/(loss) before taxation 21.2 2.7 (1.0) 1.7 (0.8) 22.1
Taxation - - - - (5.5) (5.5)
Profit/(loss) for the period 21.2 2.7 (1.0) 1.7 (6.3) 16.6
Consumer Academic & Professional Special Interest Non-Consumer Unallocated Total
Six months ended 31 August 2023 (restated*) £'m £'m £'m £'m £'m £'m
External revenue 89.4 36.4 10.9 47.3 - 136.7
Cost of sales (42.2) (11.2) (5.6) (16.8) - (59.0)
Gross profit 47.2 25.2 5.3 30.5 - 77.7
Marketing and distribution costs (13.1) (2.8) (1.4) (4.2) - (17.3)
Contribution before administrative expenses 34.1 22.4 3.9 26.3 - 60.4
Administrative expenses excluding highlighted items (22.8) (16.4) (3.9) (20.3) (43.1)
Share of joint venture result - - - - - -
Operating profit before highlighted items/ segment results 11.3 6.0 - 6.0 - 17.3
Amortisation of acquired intangible assets (0.2) (2.2) (0.1) (2.3) - (2.5)
Other highlighted items - - - - (1.2) (1.2)
Operating profit/(loss) 11.1 3.8 (0.1) 3.7 (1.2) 13.6
Finance income - - - - 0.6 0.6
Finance costs (0.1) (0.1) - (0.1) - (0.2)
Profit/(loss) before taxation and highlighted items 11.2 5.9 - 5.9 0.6 17.7
Amortisation of acquired intangible assets (0.2) (2.2) (0.1) (2.3) - (2.5)
Other highlighted items - - - - (1.2) (1.2)
Profit/(loss) before taxation 11.0 3.7 (0.1) 3.6 (0.6) 14.0
Taxation - - - - (2.8) (2.8)
Profit/(loss) for the period 11.0 3.7 (0.1) 3.6 (3.4) 11.2
Consumer Academic & Professional Special Interest Non-Consumer Unallocated Total
Year ended 29 February 2024 (restated*) £'m £'m £'m £'m £'m £'m
External revenue 249.2 70.5 23.0 93.5 - 342.7
Cost of sales (115.3) (22.0) (10.8) (32.8) - (148.1)
Gross profit 133.9 48.5 12.2 60.7 - 194.6
Marketing and distribution costs (40.6) (5.9) (3.3) (9.2) - (49.8)
Contribution before administrative expenses 93.3 42.6 8.9 51.5 - 144.8
Administrative expenses excluding highlighted items (55.3) (33.2) (8.4) (41.6) - (96.9)
Share of joint venture result - - - - - -
Operating profit before highlighted items/ segment results 38.0 9.4 0.5 9.9 - 47.9
Amortisation of acquired intangible assets (0.4) (4.4) (0.1) (4.5) - (4.9)
Other highlighted items - - - - (2.4) (2.4)
Operating profit/(loss) 37.6 5.0 0.4 5.4 (2.4) 40.6
Finance income - - - - 1.3 1.3
Finance costs (0.2) (0.1) - (0.1) (0.1) (0.4)
Profit before taxation and highlighted items 37.8 9.3 0.5 9.8 1.2 48.8
Amortisation of acquired intangible assets (0.4) (4.4) (0.1) (4.5) - (4.9)
Other highlighted items - - - - (2.4) (2.4)
Profit/(loss) before taxation 37.4 4.9 0.4 5.3 (1.2) 41.5
Taxation - - - - (9.2) (9.2)
Profit/(loss) for the year 37.4 4.9 0.4 5.3 (10.4) 32.3
Consumer Academic & Professional Special Interest Non-Consumer Unallocated Total
Six months ended 31 August 2024 £'m £'m £'m £'m £'m £'m
Operating profit/(loss) before highlighted items/segment results 21.5 6.0 (0.8) 5.2 (0.1) 26.6
Depreciation 1.1 0.4 0.2 0.6 - 1.7
Amortisation of internally generated intangibles 0.7 1.1 0.2 1.3 - 2.0
EBITDA before highlighted items 23.3 7.5 (0.4) 7.1 (0.1) 30.3
Consumer Academic & Professional Special Interest Non-Consumer Unallocated Total
Six months ended 31 August 2023 (restated*) £'m £'m £'m £'m £'m £'m
Operating profit before highlighted items/segment results 11.3 6.0 - 6.0 - 17.3
Depreciation 0.9 0.4 0.1 0.5 - 1.4
Amortisation of internally generated intangibles 0.6 1.5 0.2 1.7 - 2.3
EBITDA before highlighted items 12.8 7.9 0.3 8.2 - 21.0
Consumer Academic & Professional Special Interest Non-Consumer Unallocated Total
Year ended 29 February 2024 (restated*) £'m £'m £'m £'m £'m £'m
Operating profit before highlighted items/segment results 38.0 9.4 0.5 9.9 - 47.9
Depreciation 1.8 0.8 0.3 1.1 - 2.9
Amortisation of internally generated intangibles 1.2 3.2 0.4 3.6 - 4.8
EBITDA before highlighted items 41.0 13.4 1.2 14.6 - 55.6
External revenue by product type
Six months Six months Year
ended ended ended
31 August 31 August 29 February
2024 2023 2024
£'m £'m £'m
Print 124.4 92.7 246.2
Digital 50.8 38.7 85.8
Rights and services 4.6 5.3 10.7
Total 179.8 136.7 342.7
Rights and services revenue includes revenue from copyright and trademark
licences, management contracts, advertising and publishing services.
Total assets (restated*) 31 August 31 August 29 February 2024
2024 2023 £'m
£'m £'m
Consumer 40.9 34.9 29.3
Academic & Professional 130.0 72.3 71.2
Special Interest 12.2 12.7 13.0
Unallocated 208.5 187.2 258.2
Total assets 391.6 307.1 371.7
( )
Unallocated primarily represents centrally held assets including system
development, property, plant and equipment, right-of-use assets, receivables
and cash.
* Restated to show the Consumer division as one operating segment.
4. Highlighted items
Six months ended Six months ended Year
31 August 31 August ended
2024 2023 29 February
£'m £'m 2024
£'m
Legal and other professional fees 0.7 0.1 0.7
Integration and restructuring costs 0.1 1.1 1.7
Other highlighted items 0.8 1.2 2.4
Amortisation of acquired intangible assets 3.7 2.5 4.9
Total highlighted items 4.5 3.7 7.3
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 2024, legal and other professional fees of
£0.7m were incurred as a result of the Rowman & Littlefield
acquisition. Integration and restructuring costs of £0.1m were incurred
as a result of the integration of the Red Globe Press and ABC-CLIO, LLC
acquisitions.
For the six months ended 31 August 2023, legal and other professional fees of
£0.1m were incurred as a result of acquisitions including the ABC-CLIO, LLC
acquisition. Integration and restructuring costs of £1.1m were incurred
as a result of the integration of the ABC-Clio, LLC acquisition and
restructuring.
For the year ended 29 February 2024, legal and other professional fees of
£0.7m were incurred as a result of the Group's completed acquisitions and the
ongoing Rowman & Littlefield acquisition. Integration and restructuring
costs primarily relate to the integration of the ABC-CLIO, LLC and Head of
Zeus Limited acquisitions and restructuring.
5. Dividends
Six months ended Six months ended Year
ended
31 August 31 August 29 February
2024 2023 2024
£'m £'m £'m
Amounts paid in the period
Prior period final dividend 9.0 8.3 8.3
Interim dividend - - 3.0
Total dividend payments in the period 9.0 8.3 11.3
Amounts arising in respect of the period
Interim dividend for the period 3.2 3.0 3.0
Final dividend for the year - - 9.0
Total dividend for the period 3.2 3.0 12.0
The proposed interim dividend of 3.89 pence per ordinary share will be paid to
the equity Shareholders on 29 November 2024 to Shareholders registered at
close of business on 1 November 2024.
6. Earnings per share
The basic earnings per share for the six months ended 31 August 2024 is
calculated using a weighted average number of Ordinary Shares in issue of
81,404,081 (31 August 2023: 81,058,723 and 29 February 2024: 81,212,654) 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 29 February
2024 2023 2024
Number Number Number
Weighted average shares in issue 81,404,081 81,058,723 81,212,654
Dilution 1,141,205 890,550 1,353,296
Diluted weighted average shares in issue 82,545,286 81,949,273 82,565,950
£'m £'m £'m
Profit after tax attributable to owners of the Company 16.6 11.2 32.3
Basic earnings per share 20.38p 13.81p 39.77p
Diluted earnings per share 20.10p 13.66p 39.11p
Adjusted profit attributable to owners of the Company 20.4 14.3 38.5
Adjusted basic earnings per share 25.02p 17.66p 47.40p
Adjusted diluted earnings per share 24.68p 17.47p 46.62p
( )
Adjusted profit is derived as follows:
Profit before tax 22.1 14.0 41.5
Amortisation of acquired intangible assets 3.7 2.5 4.9
Other highlighted items 0.8 1.2 2.4
Adjusted profit before tax 26.6 17.7 48.8
Tax expense 5.5 2.8 9.2
Deferred tax movements on goodwill and acquired intangible assets 0.6 0.4 0.7
Tax expense on other highlighted items 0.1 0.2 0.4
Adjusted tax 6.2 3.4 10.3
Adjusted profit 20.4 14.3 38.5
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. Business Combinations
On 28 May 2024, the Group acquired the academic publishing business of the
Rowman & Littlefield Publishing Group. The transaction was structured as
a sale and purchase agreement for the acquisition of certain assets which make
up the academic publishing business of the Rowman & Littlefield Publishing
Group, Inc. ("Rowman & Littlefield"). The consideration was $83 million
(£65 million), of which $76 million (£60 million) has been satisfied in cash
on completion and up to $7 million (£5 million), held in escrow, will be
satisfied in cash post completion. The consideration is subject to a working
capital adjustment and assignment of certain contracts.
Rowman & Littlefield is one of the most respected independent publishers
in the US Academic market. It is the biggest acquisition by Bloomsbury to
date, and significantly accelerates and strengthens Bloomsbury's academic
and digital presence in North America. The business will operate in the
Academic & Professional division.
The table below summarises the provisional fair value to the Group included in
the consolidated statement of financial position of the major categories of
assets and liabilities of Rowman & Littlefield at the date of acquisition.
Provisional fair value to the Group
£'m
Net assets acquired
Assets
Other intangible assets 35.6
Total non-current assets 35.6
Inventories 2.5
Trade and other receivables 0.5
Total current assets 3.0
Total assets 38.6
Liabilities
Trade and other liabilities 1.6
Total current liabilities 1.6
Total liabilities 1.6
Identifiable net assets 37.0
Goodwill 27.8
Total 64.8
Identifiable intangible assets of £35.6 million consist of publishing rights,
imprints, ebook and POD production files. The publishing rights have useful
lives ranging from 3 to 9 years, the imprints have a useful life of 10 years
and the ebook and print on demand ("POD") production files have a useful life
of 3 years. The goodwill arising of £27.8 million is attributable to the
expected profitability of the acquired business and the synergies expected to
arise after the acquisition.
Transaction costs of £0.7 million have been expensed in the period within
administrative expenses.
From 28 May 2024, revenue of £7.2 million and profit attributable to owners
of the Company of £0.6 million have been included in the consolidated income
statement for the period ended 31 August 2024 in relation to Rowman &
Littlefield.
If the acquisition had occurred on 1 March 2024, the revenue and profit
attributable to shareholders of the combined entity for the current period
would have been £186.3 million and £16.6 million respectively.
8. Trade and other receivables
31 August 31 August 29 February
2024 2023 2024
Non-current £'m £'m £'m
Contract assets 0.8 0.8 0.8
Current
Gross trade receivables 92.4 77.2 115.6
Less: loss allowance (3.1) (3.5) (3.6)
Net trade receivables 89.3 73.7 112.0
Income tax recoverable 2.3 1.2 2.9
Other receivables 3.0 2.9 3.5
Prepayments 3.9 2.4 3.1
Contract assets 8.0 6.1 8.2
Royalty advances 36.1 35.4 35.1
Total current trade and other receivables 142.6 121.7 164.8
Total trade and other receivables 143.4 122.5 165.6
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 2024 £11.8 million (31 August 2023 £10.1 million and
29 February 2024 £9.0 million) of royalty advances relate to titles expected
to be published in more than 12 months' time.
9. 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
John Bason Independent Non-Executive Chairman
Chair of the Nominations Committee
Leslie-Ann Reed Chair of the Remuneration Committee
Senior Independent Director
Chair of the Audit Committee
Baroness Lola Young of Hornsey Independent Non-Executive Director
Nigel Newton Chief Executive
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
23 October 2024
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 2024 Annual Report and Accounts.
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