REG - BloomsburyPublishing - Annual Financial Report
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RNS Number : 6840J Bloomsbury Publishing PLC 22 May 2025
BLOOMSBURY PUBLISHING PLC
("Bloomsbury" or "the Company")
Audited Preliminary Results for the year ended 28 February 2025
Resilient results ahead of recently upgraded expectations; more dividend
growth; drive into Asian academic market; success of portfolio of portfolios
strategy
Bloomsbury Publishing Plc (LSE: BMY), the leading independent publisher, today
announces audited results for the year ended 28 February 2025.
Commenting on the results, Nigel Newton, Founder and Chief Executive, said:
"Bloomsbury is pleased to report revenue up £18m to £361m, up 5%, with
profit(1) of £42m. We are making significant progress in executing our
Bloomsbury 2030 vision focused on our growth, portfolio and people. In 2024/25
Bloomsbury acquired Rowman & Littlefield, strengthening our Academic
portfolio, entered the FTSE 250 in August 2024, earned the Great Place To Work
Certification(TM) and became the 39(th) largest publisher in the world(2).
The success in the Consumer Division was based across our portfolio. In the
Non-Consumer Division growth has been driven by the acquisition of Rowman
& Littlefield, where integration is progressing well. Bloomsbury Digital
Resources sales increased 2% to £27m and our ambitious target remains at
£41m revenue in 2027/28.
In recognition of the achievements of this financial year and our confidence
that the Company is well positioned for further development, the Board
recommends a final dividend of 11.54 pence which contributes to a full year
dividend of 15.43 pence per share, an increase of 5% year on year.
In 2025, we will be expanding our business in Asia by opening an office in
Singapore to further capitalise on the growing student population(3) in the
region, building on the success of our established offices in India and
Australia. Bloomsbury will be well placed geographically and structurally to
benefit from student growth alongside the continued shift to digital learning.
Bloomsbury was voted Publisher of the Year 2025 at the British Book Awards and
also won Publicity Campaign of the Year for Gillian Anderson's Want.
We are progressing opportunities to monetise academic content through AI deals
in our authors' best interests.
Trading for 2025/26 is expected to be broadly in line with current consensus
expectation(4) in constant currency.
Bloomsbury's diversification strategy has forged a portfolio of portfolios
combining consumer and academic publishing, a resilient model delivering
long-term success."
Operational Highlights
Consumer Division
● Consumer revenue growth of 3% to £256.0m (2023/24: £249.2m)
● Consumer profit before taxation and highlighted items(5) was £31.4m (2023/24:
£37.8m)
● Profit was in line with consensus expectation and follows high operational
gearing on exceptional sales in 2023/24
● Commercial and literary success across the portfolio.
Non-Consumer Division
● Non-Consumer revenue growth of 12% to £105.0m (2023/24: £93.5m)
● Non-Consumer profit before taxation and highlighted items(5) grew to £11.4m
(2023/24: £9.8m)
● Academic & Professional revenue growth of 18% to £83.3m (2023/24:
£70.5m) and profit before taxation and highlighted items(5) growth of 34% to
£12.5m (2023/24: £9.3m)
● Academic & Professional organic revenue(6) declined 10% following current
UK and US budgetary pressures and the accelerated shift from print to digital,
against a positive outlook of student numbers being projected to grow
worldwide(2)
● Rowman & Littlefield has traded in line with our expectations,
contributing £19.8m revenue
● We have implemented efficiencies in the enlarged Academic division and the
Rowman & Littlefield integration is progressing well
● Bloomsbury Digital Resources revenue growth of 2% to £27.0m (2023/24:
£26.6m) and our ambitious target remains at c.£41m of revenue in 2027/28.
Financial Highlights
2024/25 2023/24 2022/23 '25 vs '24 '25 vs '23
Revenue £361.0m £342.7m £264.1m 5% 37%
Organic revenue(6) £341.2m £342.7m £264.1m 0% 29%
Profit before taxation and highlighted items(5) £42.1m £48.8m £31.1m (14)% 35%
Profit before taxation £32.5m £41.5m £25.4m (22)% 28%
Adjusted diluted earnings per share 41.45p 46.62p 30.56p (11)% 36%
Diluted earnings per share 30.71p 39.11p 24.54p (21)% 25%
Net cash £17.0m(7) £65.8m £51.5m (74)% (67)%
Final dividend per share 11.54p 10.99p 10.34p 5% 12%
Total dividend per share 15.43p 14.69p 11.75p 5% 31%
Notes
1 Profit before taxation and highlighted items.
2 Source: The 2024 Global 50 Publishing Ranking www.wischenbart.com/ranking
(http://www.wischenbart.com/ranking)
3 World Bank estimates that globally there will be 380m higher education
students by 2030 up 73% from 220m in 2021. It is estimated that by 2040 there
could be 600m students with over 60% in Asia.
4 The Board considers consensus market expectations (before this publication)
for the year ending 28 February 2026 to be revenue of £349.2m and profit
before taxation and highlighted items of £45.1m.
5 Highlighted items comprise amortisation of acquired intangible assets and
legal and other professional costs relating to ongoing and completed
acquisitions, integration and restructuring costs.
6 Organic revenue for 2024/25 is defined as total revenue of £361.0m less
revenue attributable to the acquisition of Rowman & Littlefield in the
year of £19.8m.
7 Net cash is Cash and cash equivalents less borrowing and was £17m post
acquisition of Rowman & Littlefield for £65m.
For further information, please contact:
Bloomsbury Publishing Plc
Tamsin Garrity, Head of Investor Relations tamsin.garrity@bloomsbury.com
Hudson Sandler +44 (0) 20 7796 4133
Dan de Belder / Hattie Dreyfus / Emily Brooker 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
In May 2024, we announced the next stage in our Bloomsbury 2030 vision focused
on our growth, our portfolio and our people. In 2024/25 Bloomsbury achieved
revenue growth of 5% to £361.0m (2023/24: £342.7m), acquired Rowman &
Littlefield, strengthening our Academic portfolio, entered the FTSE 250, and
earned the Great Place To Work Certification(TM).
The resilience of demand for Bloomsbury titles and the excellent sales of our
digital products demonstrate the strength of our long-term growth strategy,
the publishing judgement of our editors, the reach of our sales and marketing
and value of our content.
Success in the Consumer Division was from across our portfolio. Consumer
revenue growth was 3%, a stellar performance considering a comparative of 49%
growth in 2023/24. We have expanded our Consumer portfolio, which includes
fantasy, romantasy, cosy crime, non-fiction lifestyle and cookery. We have
bestselling and award-winning fiction lists for adults and children.
The acquisition of Rowman & Littlefield in May 2024, where integration is
progressing well, drove growth in the Non-Consumer Division. Bloomsbury
Digital Resources (BDR) grew 2% to £27.0m for the full year despite
well-documented budgetary pressures, as highlighted at the interim results, in
our core UK and US academic markets. We remain confident in the long-term
trends. Our ambitious BDR target remains at c.£41m revenue in 2027/28.
Our geographical diversification has taken international revenues to 78% of
total revenue. Our diversification across formats has ensured the expansion
of publishing through digital channels. Our Audio revenue grew 57% in part
driven by our new commercial relationship with Spotify and the Audio team
continues its strong run of awards with the IPG Zebralution Audio Award for
the audio production of Want and was shortlisted in the British Book Awards.
We are progressing with key infrastructure changes as part of the Bloomsbury
2030 vision to support growth and profitability. We have made good progress
with announced projects having changed to Hachette UK Distribution in April
2025, started to implement our new global royalty system and strengthened our
sales infrastructure with the creation of the US key account sales team
replacing a third-party commission sales arrangement.
In 2025 we will be expanding our business in Asia by opening an office in
Singapore to further capitalise on the growth in the student population in the
region, building on the success of our established offices in India and
Australia. By 2040 it is estimated that there could be 600m higher education
students with over 60% in Asia. Bloomsbury will be well placed geographically
and structurally to benefit from student growth alongside the continued shift
to digital learning.
We have hired a Head of AI Innovation to lead the development and execution of
our AI Strategy, driving innovation and oversight of AI initiatives across
Bloomsbury. We are progressing opportunities to monetise academic content
through AI deals in our authors' best interests.
We have purposefully pursued a strategy of diversification across consumer and
academic publishing and within those have diversified across formats and
territories. This strategy has created a portfolio of portfolios - a model
that provides resilient growth and cash generation.
We continue to focus on capital allocation to accelerate the flywheel of
Bloomsbury:
(1) Fortifying our existing business by investing in our Company, authors
and employees;
(2) Enhancing the diversification of our business to drive future
profitability, organically and through acquisitions; and
(3) Retaining a strong balance sheet while rewarding Shareholders through
our dividend.
Group Financials
Bloomsbury achieved revenue growth of 5% to £361.0m (2023/24: £342.7m).
Group profit before taxation and highlighted items was £42.1m (2023/24:
£48.8m). Profit before taxation was £32.5m (2023/24: £41.5m). Highlighted
items of £9.6m (2023/24: £7.3m) consist of the amortisation of acquired
intangible assets of £8.4m (2023/24: £4.9m), one-off legal and other
professional fees relating to acquisitions, integration and restructuring
costs of £1.2m (2023/24: £2.4m). The effective rate of tax for the year was
21.9% (2023/24: 22.2%). The adjusted effective rate of tax, excluding
highlighted items, was 18.8% (2023/24: 21.0%).
Diluted earnings per share, excluding highlighted items, were 41.45 pence
(2023/24: 46.62 pence). Including highlighted items, profit before tax was
£32.5m (2023/24: £41.5m) and diluted earnings per share 30.71 pence
(2023/24: 39.11 pence). The Board recommends a 5% increase in our final
dividend to 11.54 pence per share, taking our full year dividend to 15.43
pence per share, an increase of 5% year on year.
Consumer Division
The Consumer Division, which consists of Adult, Young Adult and Children's
publishing, generated revenue growth of 3% to £256.0m (2023/24: £249.2m).
The success was broadly based across our portfolio. Profit before taxation and
highlighted items was £31.4m (2023/24: £37.8m). The Consumer profit margin
of 12% returned to a normalised level, in line with expectations, and
following an exceptional performance in 2023/24 which saw high operational
gearing on exceptional sales. Profit before taxation was £31.0m (2023/24:
£37.4m).
Last week, Bloomsbury was voted Publisher of the Year 2025 at the British Book
Awards and also won the British Book Awards Publicity Campaign of the Year for
Gillian Anderson's Want.
Our publishing list for 2025/26 is strong and includes:
· Tom Kerridge's The BBQ Book was published on 24 April 2025;
· Rutger Bregman's Moral Ambition was published on 24 April 2025;
· Katherine Stewart's Money, Lies and God, already published in the US and
became a New York Times bestseller, published in the UK on 22 May;
· Paul Hollywood's Celebrate: Joyful Baking All Year Round will be published on
5 June 2025;
· The paperback of Sarah J. Maas' House of Flame and Shadow will be published in
June 2025;
· The paperback of Gillian Anderson's Want will be published on 3 July 2025;
· Sally Smith's cosy crime A Case of Life and Limb will be published on 17 July
2025;
· The new Harry Potter series of Pocket Potters will commence in August 2025
with three titles - Harry Potter, Ron Weasley and Hermione Granger;
· Elizabeth Gilbert's new title All the Way to the River will be published on 9
September 2025;
· Poppy O'Toole's Poppy Cooks: Actually Delicious One Pot will be published on
25 September 2025;
· Samantha Shannon's Among the Burning Flowers will be published on 11 September
2025;
· Katherine Rundell's The Poisoned King, the second in the Impossible Creatures
series, will be published on 11 September 2025; and
· Founder of Wikipedia Jimmy Wales' The Seven Rules of Trust will be published
on 28 October 2025.
Non-Consumer Division
Revenue for the Non-Consumer Division, which consists of Academic &
Professional, including BDR, and Special Interest, grew by 12% to £105.0m
(2023/24: £93.5m). Profit before taxation and highlighted items for the
Non-Consumer Division grew by 15% to £11.4m (2023/24: £9.8m). Profit before
taxation was £3.4m (2023/24: £5.3m).
Non-Consumer Division: Academic & Professional
Academic & Professional revenue increased by 18% to £83.3m (2023/24:
£70.5m). Rowman & Littlefield contributed £19.8m revenue in the nine
months since acquisition driving overall growth; organic revenue reduced by
10%. Profit before taxation and highlighted items increased to £12.5m
(2023/24: £9.3m) with a margin of 15%. Profit before taxation was £4.8m
(2023/24: £4.9m).
The Academic & Professional market is experiencing budget pressures in the
UK and the US, against a positive outlook of student numbers being projected
to grow worldwide. Budgetary pressure in UK higher education institutions has
been driven by a decrease in international students and an increase in
employer National Insurance Contributions. In the US, funding changes and
lower enrolment are contributing to budgetary pressure for higher education
institutions. The shift from print to digital has continued to accelerate,
resulting in lower sales of print academic books.
We built Bloomsbury Digital Resources precisely to be ahead of this digital
trend. BDR revenue has grown from £6.4m in 2018/19 to £27.0m in 2024/25. 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 revenues were £27.0m with growth of 2% (2023/24: 2%, 2022/23: 41%). 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. Our ambitious BDR target
remains at c.£41m of revenue in 2027/28.
Non-Consumer Division: Special Interest
Special Interest revenue was £21.7m (2023/24: £23.0m) and loss before
taxation and highlighted items was £1.1m (2023/24: profit £0.5m).
Cash and Financing
Bloomsbury's cash generation was strong with net cash at the year-end of
£17.0m (2024: £65.8m) and cash conversion of 156% (2023/24: 110%). Net cash
is lower following the acquisition of Rowman & Littlefield for £64.8m in
May 2024.
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 three years to May 2027. The strong
cash generation has enabled us to pay down $7.5m of the debt associated with
the acquisition of Rowman & Littlefield ahead of schedule with the
remaining balance $30.0m.
The Group also 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 2027. As at 28 February 2025, the facility remains fully
undrawn (2024: fully undrawn).
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.
Acquisitions
The acquisition of Rowman & Littlefield's academic publishing assets for
£64.8m/$82.5m 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.
Dividend
Bloomsbury has a progressive dividend policy aiming to keep dividend earnings
cover in excess of two times, supported by strong cash cover. The Board is
recommending a final dividend of 11.54 pence per share, totalling £9.4m.
Together with the interim dividend, this makes a total dividend for 2024/25 of
15.43 pence per share, a 5% increase on the 14.69 pence dividend for 2023/24
and a 31% increase versus 2022/23.
Subject to Shareholder approval at our AGM on 16 July 2025, the final dividend
will be paid on 22 August 2025 to Shareholders on the register on the record
date of 25 July 2025.
Including the proposed 2024/25 final dividend, over the past ten years, the
dividend per share has increased at a compound annual growth rate of 9.7%.
Board Changes
Penny Scott-Bayfield was appointed Group Finance Director of Bloomsbury seven
years ago. Penny has informed the Board of her intention to step down from her
role at Bloomsbury to pursue a portfolio career. Penny will remain at
Bloomsbury to ensure a smooth process for the recruitment of her successor to
ensure an orderly handover. The search for Penny's successor has already
commenced.
John Bason, Bloomsbury's Chairman, said, "At this juncture, on behalf of all
of our colleagues, Nigel Newton and I would like to recognise her critical
contribution to the significant development of Bloomsbury over the last seven
years and to thank her enormously."
Bloomsbury was pleased to announce the appointment of Dame Heather Rabbatts to
its Board as a Non-Executive Director from 14 April 2025 and as a member of
the Audit, Remuneration and Nomination Committees. She is the Chair of M&C
Saatchi Group PLC, Senior Independent Director at Associated British Foods
plc, and was formerly a Non-Executive Director at Kier Group plc.
Current Trading and Outlook
We remain cognisant of the uncertain macroeconomic backdrop, however, books
remain exempt from US tariffs. Trading for 2025/26 is expected to be broadly
in line with the current consensus expectation(1) in constant currency.
The Board is confident in the resilience created through the portfolio of
portfolios strategy. We continue to execute our Bloomsbury 2030 vision focused
on our growth, portfolio and people. Our authors, customers, consistent
performance, and the scale and resilience of our business continue to underpin
the confidence we have in the future.
Note
1. The Board considers consensus market expectation (before this
publication) for the year ending 28 February 2026 to be revenue of £349.2m
and profit before taxation and highlighted items of £45.1m.
Audited Consolidated Income Statement
FOR THE YEAR ENDED 28 FEBRUARY 2025
Year ended Year ended
28 February 29 February
2025 2024
Notes £'m £'m
Revenue 2 361.0 342.7
Cost of sales (157.1) (148.1)
Gross profit 203.9 194.6
Marketing and distribution costs (54.6) (49.8)
Administrative expenses (115.9) (104.2)
Share of result of joint venture (0.1) -
Operating profit before highlighted items 42.9 47.9
Highlighted items 3 (9.6) (7.3)
Operating profit 33.3 40.6
Finance income 1.3 1.3
Finance costs (2.1) (0.4)
Profit before taxation and highlighted items 42.1 48.8
Highlighted items 3 (9.6) (7.3)
Profit before taxation 32.5 41.5
Taxation 4 (7.1) (9.2)
Profit for the year attributable to owners of the Company 25.4 32.3
Earnings per share attributable to owners of the Company
Basic earnings per share 6 31.14p 39.77p
Diluted earnings per share 6 30.71p 39.11p
Audited Consolidated Statement of Comprehensive Income
FOR THE YEAR ENDED 28 FEBRUARY 2025
Year ended Year ended
28 February 29 February
2025 2024
£'m £'m
Profit for the year 25.4 32.3
Other comprehensive income
Items that may be reclassified to the income statement:
Exchange differences on translating foreign operations 0.9 (4.7)
Other comprehensive income for the year net of tax 0.9 (4.7)
Total comprehensive income for the year attributable to the owners of the 26.3 27.6
Company
Items in the statement above are disclosed net of tax.
Audited Consolidated Statement of Financial Position
AS AT 28 FEBRUARY
2025
28 February 29 February
2025 2024
Notes £'m £'m
Assets
Goodwill 77.3 48.3
Other intangible assets 60.1 32.0
Property, plant and equipment 2.5 2.2
Right-of-use assets 7.6 7.5
Deferred tax assets 16.9 13.7
Trade and other receivables 8 0.7 0.8
Total non-current assets 165.1 104.5
Inventories 46.3 36.6
Trade and other receivables 8 133.3 164.8
Cash and cash equivalents 40.6 65.8
Total current assets 220.2 267.2
Total assets 385.3 371.7
Liabilities
Borrowings 23.6 -
Lease liabilities 7.3 6.5
Deferred tax liabilities 2.3 2.7
Provisions 0.9 0.5
Total non-current liabilities 34.1 9.7
Trade and other liabilities 133.0 152.0
Current tax liabilities - 4.0
Lease liabilities 1.5 2.4
Provisions 1.9 1.1
Total current liabilities 136.4 159.5
Total liabilities 170.5 169.2
Net assets 214.8 202.5
Equity
Share capital 1.0 1.0
Share premium 47.3 47.3
Translation reserve 11.8 10.9
Other reserves 13.6 12.8
Retained earnings 141.1 130.5
Total equity attributable to owners of the Company 214.8 202.5
Audited Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 28 FEBRUARY 2025
Share Share premium Translation reserve Merger reserves Share-based payment reserve Own shares held by EBT £'m Retained Total equity
capital £'m £'m £'m £'m Earnings £'m
£'m £'m
At 28 February 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
Profit for the year - - - - - - 25.4 25.4
Other comprehensive income
Exchange differences on translating foreign operations - - 0.9 - - - - 0.9
Total comprehensive income for the year - - 0.9 - - - 25.4 26.3
Transactions with owners
Dividends to equity holders of the Company - - - - - - (12.2) (12.2)
Purchase of shares by the Employee Benefit Trust - - - - - (3.8) - (3.8)
Share options exercised - - - - - 3.1 (2.7) 0.4
Deferred tax on share-based payment transactions - - - - - - 0.1 0.1
Share-based payment transactions - - - - 1.5 - - 1.5
Total transactions with owners of the Company - - - - 1.5 (0.7) (14.8) (14.0)
At 28 February 2025 1.0 47.3 11.8 1.8 13.2 (1.4) 141.1 214.8
Audited Consolidated Statement of Cash Flows
FOR THE YEAR ENDED 28 FEBRUARY 2025
Year ended Year ended
28 February 29 February
2025 2024
£'m £'m
Cash flows from operating activities
Profit for the year 25.4 32.3
Adjustments for:
Depreciation of property, plant and equipment 1.1 0.9
Depreciation of right-of-use assets 2.0 2.0
Amortisation of other intangible assets 12.5 10.4
Loss on disposal of property, plant and equipment - 0.2
Loss on disposal on other intangible assets - 0.2
Finance income (1.3) (1.3)
Finance costs 2.1 0.4
Share of loss of joint venture 0.1 -
Share-based payment charges 1.9 1.8
Tax expense 7.1 9.2
50.9 56.1
(Increase)/decrease in inventories (7.8) 4.9
Decrease/(increase) in trade and other receivables 32.8 (54.4)
(Decrease)/increase in trade and other liabilities (17.9) 43.9
Cash generated from operating activities 58.0 50.5
Income taxes paid (16.1) (12.9)
Net cash generated from operating activities 41.9 37.6
Cash flows from investing activities
Purchase of property, plant and equipment (1.4) (0.8)
Purchase of other intangible assets (4.8) (5.1)
Purchase of business, net of cash acquired (64.8) -
Purchase of share in a joint venture (0.1) -
Interest received 1.2 1.3
Net cash used in investing activities (69.9) (4.6)
Cash flows from financing activities
Equity dividends paid (12.2) (11.3)
Purchase of shares by the Employee Benefit Trust (3.8) (2.8)
Proceeds from exercise of share options 0.4 0.4
Cancellation of share options - (0.6)
Proceeds from borrowings 29.4 -
Repayment of borrowings (6.2) -
Interest paid on borrowings (1.6) -
Principal paid on lease liabilities (2.3) (2.2)
Interest paid on lease liabilities (0.3) (0.3)
Other interest paid (0.2) -
Net cash generated from/(used in) financing activities 3.2 (16.8)
Net (decrease)/increase in cash and cash equivalents (24.8) 16.2
Cash and cash equivalents at beginning of year 65.8 51.5
Exchange loss on cash and cash equivalents (0.4) (1.9)
Cash and cash equivalents at end of year 40.6 65.8
NOTES
1. Accounting policies
a) Basis of Preparation
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 28 February 2025 or 29 February 2024
but is derived from those accounts. Statutory accounts for 2024 have been
delivered to the registrar of companies, and those for 2025 will be delivered
in due course. The auditor has reported on those accounts; their reports were
(i) unqualified, (ii) did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
The Group financial statements were prepared in accordance with UK-adopted
international accounting standards and the requirements of the Companies Act
2006. Except as described below, the accounting policies applied in the year
ended 28 February 2025 are consistent with those applied in the financial
statements for year ended 29 February 2024 with the exception of a number of
new accounting standards and amendments which have not had a material impact
on the Group's results.
b) Going concern
The Directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence at least 12 months from the
date of this preliminary announcement, 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
financial statements.
The Board has modelled a severe but plausible downside scenario. This assumes:
· print revenues are reduced by 20% during 2025/2026, with recovery
during 2026/2027;
· digital revenues are reduced by 20% during 2025/2026, with recovery
during 2026/2027;
· print costs are increased by 2% from 2025/2026 and staff costs are
increased by 2% from 2026/2027;
· downside assumptions about extended debtor days during 2025/2026,
with recovery during 2026/2027; and
· cash preservation measures implemented and variable costs reduced.
At 28 February 2025, the Group had available liquidity of £60.6m, comprising
central cash balances and its undrawn £20.0m Revolving Credit Facility
("RCF"). The RCF agreement is to November 2027. 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.
As at 28 February 2025, the facility remains fully undrawn (2024: fully
undrawn) with £20.0m of undrawn committed borrowing facilities (2024:
£20.0m) available. The facility comprises a committed revolving credit
facility of £20m, and an uncommitted incremental term loan facility of up to
£20m.
Additionally, The Group has a term loan facility with a balance of $30m
(£23.6m) as at 28 February 2025. The loan is repayable at the Group's
discretion, with no fixed payment schedule. The facility runs for 3 years
until May 2027.
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.
2. Revenue and 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 year 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.
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:
Consumer Academic & Professional Special Interest Non-Consumer Unallocated Total
Year ended 28 February 2025 £'m £'m £'m £'m £'m £'m
External revenue 256.0 83.3 21.7 105.0 - 361.0
Cost of sales (122.4) (24.3) (10.4) (34.7) - (157.1)
Gross profit 133.6 59.0 11.3 70.3 - 203.9
Marketing and distribution costs (42.2) (8.7) (3.7) (12.4) - (54.6)
Contribution before administrative expenses 91.4 50.3 7.6 57.9 - 149.3
Administrative expenses excluding highlighted items (59.8) (37.8) (8.7) (46.5) - (106.3)
Share of joint venture result - - - - (0.1) (0.1)
Operating profit/(loss) before highlighted items/segment results 31.6 12.5 (1.1) 11.4 (0.1) 42.9
Amortisation of acquired intangible assets (0.4) (7.7) (0.3) (8.0) - (8.4)
Other highlighted items - - - - (1.2) (1.2)
Operating profit/(loss) 31.2 4.8 (1.4) 3.4 (1.3) 33.3
Finance income - 0.1 - 0.1 1.2 1.3
Finance costs (0.2) (0.1) - (0.1) (1.8) (2.1)
Profit/(loss) before taxation and highlighted items 31.4 12.5 (1.1) 11.4 (0.7) 42.1
Amortisation of acquired intangible assets (0.4) (7.7) (0.3) (8.0) - (8.4)
Other highlighted items - - - - (1.2) (1.2)
Profit/(loss) before taxation 31.0 4.8 (1.4) 3.4 (1.9) 32.5
Taxation - - - - (7.1) (7.1)
Profit/(loss) for the year 31.0 4.8 (1.4) 3.4 (9.0) 25.4
Operating profit/(loss) before highlighted items/segment results 31.6 12.5 (1.1) 11.4 (0.1) 42.9
Depreciation 2.1 0.8 0.2 1.0 - 3.1
Amortisation of internally generated intangibles 1.3 2.4 0.4 2.8 - 4.1
EBITDA before highlighted items 35.0 15.7 (0.5) 15.2 (0.1) 50.1
Consumer Academic & Professional Special Interest Non-Consumer Unallocated Total
Year ended 29 February 2024 £'m £'m £'m £'m £'m £'m
(restated*)
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
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 source
United Kingdom North America Australia India Total
£'m £'m £'m £'m £'m
Year ended 28 February 2025 143.6 194.7 16.8 5.9 361.0
Year ended 29 February 2024 143.7 177.3 16.3 5.4 342.7
During the year sales to one customer exceeded 10% of Group revenue (2024: one
customer). The value of these sales was £119.5m (2024: £106.2m).
External revenue by product type
Year ended 28 February 2025 Consumer Academic & Professional Special Non-Consumer £'m Total
£'m £'m Interest £'m
£'m
Print 194.1 37.9 17.7 55.6 249.7
Digital 53.5 42.2 2.4 44.6 98.1
Rights and Services(1) 8.4 3.2 1.6 4.8 13.2
Total 256.0 83.3 21.7 105.0 361.0
Year ended 29 February 2024 Consumer Academic & Professional Special Non-Consumer £'m Total
£'m £'m Interest £'m
£'m
Print 198.9 28.5 18.8 47.3 246.2
Digital 44.4 38.9 2.5 41.4 85.8
Rights and Services(1) 5.9 3.1 1.7 4.8 10.7
Total 249.2 70.5 23.0 93.5 342.7
(1) Rights and Services revenue includes revenue from copyright and trademark
licences management contracts, advertising and publishing services.
Total assets
28 February 29 February
2025 2024
(restated*)
£'m £'m
Consumer 41.2 29.3
Academic & Professional 127.5 71.2
Special Interest 11.6 13.0
Unallocated 205.0 258.2
Total assets 385.3 371.7
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.
Analysis of non-current assets (excluding deferred tax assets and financial
instruments) by geographic location
28 February 29 February
2025 2024
£'m £'m
United Kingdom (country of domicile) 65.3 67.8
North America 82.0 21.8
Other 0.2 0.4
Total 147.5 90.0
3. Highlighted items
Year ended Year ended
28 February 29 February
2025 2024
£'m £'m
Legal and other professional fees on acquisition 0.7 0.7
Integration and restructuring costs 0.5 1.7
Other highlighted items 1.2 2.4
Amortisation of acquired intangible 8.4 4.9
assets
Total highlighted items 9.6 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.
All highlighted items are included in administrative expenses in the income
statement.
For the year ended 28 February 2025, legal and other professional fees of
£0.7m were incurred as a result of the Rowman & Littlefield acquisition.
Integration and restructuring costs primarily relate to the integration of the
Rowman & Littlefield acquisition and restructuring.
For the year ended 29 February 2024, legal and other professional fees of
£0.7m were incurred as a result of completed and ongoing acquisitions.
Integration and restructuring costs primarily relate to the integration of the
ABC-CLIO, LLC and Head of Zeus Limited acquisitions and restructuring.
4. Taxation
Factors affecting tax charge for the year
The tax on the Group's profit before tax differs from the standard rate of
corporation tax in the United Kingdom of 25% (2024: 24.5%). The reasons for
this are explained below:
Year ended Year ended
28 February 2025 29 February 2024
£'m % £'m %
Profit before taxation 32.5 100.0 41.5 100.0
Profit on ordinary activities multiplied by the standard rate of corporation 8.1 25.0 10.2 24.5
tax in the UK of 25% (2024: 24.5%)
Effects of:
Non-deductible revenue expenditure 0.6 1.9 0.1 0.2
Non-taxable income (1.9) (5.9) (1.0) (2.3)
Different rates of tax in foreign jurisdictions 0.8 2.6 0.5 1.3
Tax losses - - (0.2) (0.5)
Movement in deferred tax rate - - (0.7) (1.6)
Adjustment to tax charge in respect of prior years
Current tax (1.0) (3.1) 0.6 1.4
Deferred tax 0.3 0.9 (0.5) (1.2)
Tax charge for the year before disallowable costs on highlighted items 6.9 21.4 9.0 21.8
Highlighted items:
Disallowable costs 0.2 0.5 0.2 0.4
Tax charge for the year 7.1 21.9 9.2 22.2
Non-taxable income mainly relates to tax deduction claims for foreign income.
Different rates of tax in foreign jurisdictions is where we are paying tax at
higher rates in the US (including paying state taxes) and Australia.
Adjustments to prior periods primarily arise where an outcome is obtained on
certain tax matters which differs from expectations held when the related
provision was made. Where the outcome is more favourable than the provision
made, the difference is released, lowering the current year tax charge. Where
the outcome is less favourable than our provision, an additional charge to
current year tax will occur.
We are not aware of any significant unprovided exposures that are considered
likely to materialise.
5. Dividends
Year ended Year ended
28 February 29 February
2025 2024
£'m £'m
Amounts paid in the year
Prior period 10.99p final dividend per share (2024: 10.34p) 9.0 8.3
Interim 3.2 3.0
3.89p dividend per share (2024: 3.70p)
Total dividend payments in the year 12.2 11.3
Amounts arising in respect of the year
Interim 3.89p dividend per share for the year (2024: 3.70p) 3.2 3.0
Proposed 11.54p final dividend per share for the year (2024: 10.99p) 9.4 9.0
Total dividend 15.43p per share for the year (2024: 14.69p) 12.6 12.0
The Directors are recommending a final dividend of 11.54 pence per share,
which, subject to Shareholder approval at the Annual General Meeting, will be
paid on 22 August 2025 to Shareholders on the register at close of business on
25 July 2025.
6. Earnings per share
The basic earnings per share for the year ended 28 February 2025 is calculated
using a weighted average number of Ordinary shares in issue of 81,420,330
(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.
Year ended Year ended
28 February 29 February
2025 2024
Number Number
Weighted average shares in issue 81,420,330 81,212,654
Dilution 1,147,233 1,353,296
Diluted weighted average shares in issue 82,567,563 82,565,950
£'m £'m
Profit after tax attributable to owners of the Company 25.4 32.3
Basic earnings per share 31.14p 39.77p
Diluted earnings per share 30.71p 39.11p
£'m £'m
Adjusted profit attributable to owners of the Company 34.2 38.5
Adjusted basic earnings per share 42.03p 47.40p
Adjusted diluted earnings per share 41.45p 46.62p
Adjusted profit is derived as follows:
Year ended Year ended
28 February 29 February
2025 2024
£'m £'m
Profit before taxation 32.5 41.5
Amortisation of acquired intangible assets 8.4 4.9
Other highlighted items 1.2 2.4
Adjusted profit before tax 42.1 48.8
Tax expense 7.1 9.2
Deferred tax movements on goodwill and acquired intangible assets 0.6 0.7
Tax expense on other highlighted items 0.2 0.4
Adjusted tax 7.9 10.3
Adjusted earnings 34.2 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 $83m (£65m),
of which $76m (£60m) was satisfied in cash on completion and $7m (£5m) was
satisfied in cash post completion. The consideration was 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 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.
Fair value
to the Group
Net assets acquired £'m
Assets
Other intangible assets 35.3
Total non-current assets 35.3
Inventories 2.0
Trade and other receivables 0.5
Total current assets 2.5
Total assets 37.8
Liabilities
Trade and other liabilities 1.6
Total current liabilities 1.6
Total liabilities 1.6
Identifiable net assets 36.2
Goodwill 28.6
Total 64.8
Identifiable intangible assets of £35.3m consist of publishing rights,
imprints, ebook and print on demand ("POD") production files. The publishing
rights have a useful life of ten years, the imprints have useful lives ranging
from three to nine years and the ebook and POD production files have a useful
life of three years. The goodwill arising of £28.6 million is attributable to
the expected profitability of the acquired business and the synergies expected
to arise after the acquisition. Transaction costs of £0.7m have been expensed
in the year within administrative expenses.
From 28 May 2024, revenue of £19.8m and loss attributable to owners of the
Company of £0.8m have been included in the consolidated income statement for
the period ended 28 February 2025 in relation to Rowman & Littlefield.
This loss includes the interest expense to service the loan taken out to
acquire Rowman & Littlefield, acquired intangible amortisation and other
highlighted items. If the acquisition had occurred on 1 March 2024, the
revenue and profit attributable to shareholders of the combined entity for the
current year would have been £367.5m and £25.4m respectively.
8. Trade and other receivables
28 February 29 February
2025 2024
£'m £'m
Non-current
Contract assets 0.7 0.8
Current
Gross trade receivables 82.1 115.6
Less: loss allowance (2.7) (3.6)
Net trade receivables 79.4 112.0
Income tax recoverable 4.1 2.9
Other receivables 3.6 3.5
Prepayments 4.0 3.1
Contract assets 7.1 8.2
Royalty advances 35.1 35.1
Total current trade and other receivables 133.3 164.8
Total trade and other receivables 134.0 165.6
Non-current receivables relate to contract assets 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
title advances which may not be fully earned down by anticipated future sales.
As at 28 February 2025, £7.1m (2024: £9.0m) of royalty advances relate to
titles expected to be published in more than 12 months' time.
9. Annual General Meeting
The Annual General Meeting will be held on 16 July 2025.
10. Report and Accounts
Copies of the Annual Report and Financial Statements will be circulated to
shareholders in June and can be viewed after the posting date on the
Bloomsbury website.
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