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 profit1 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 CertificationTM 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 39th largest publisher in the world up from 51st 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 consensus2 expectation."
Operational Highlights
Consumer Division
| · | Consumer revenue up 47% to £131.3m (H1 2023/24: £89.4m) and profit before taxation and highlighted items3 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 items3 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 items3 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 worldwide4 |
| · | 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 revenue5 | £172.6m | £136.7m | £122.9m | 26% | 40% |
| Profit before taxation and highlighted items3 | £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 | |
| Hudson Sandler | +44 (0) 20 7796 4133 |
| Dan de Belder / Hattie Dreyfus / Emily Brooker |
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 CertificationTM.
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 31 August 2024 £'m |
6 months ended 31 August 2023 £'m | Year ended 29 February 2024 £'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 31 August 2024 £'m | 6 months ended 31 August 2023 £'m | Year ended 29 February 2024 £'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 Company | 11.6 | 6.1 | 27.6 |
|
|
| | |
Items in the statement above are disclosed net of tax.
Condensed Consolidated Interim Statement of Financial Position
At 31 August 2024
| | Notes | 31 August 2024 £'m | 31 August 2023 £'m | 29 February 2024 £'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 reserve | Other reserves | Share-based payment reserve | Own shares held by the EBT | Retained earnings | Total equity |
|
| £'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 reserve | Other reserves | Share-based payment reserve | Own shares held by the EBT | Retained earnings | Total equity |
|
| £'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 reserve |
Other reserves | Share-based payment reserve | Own shares held by the EBT | Retained earnings | Total equity |
|
| £'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 ended | Year 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 Other highlighted items | (0.4) - | (4.4) - | (0.1) - | (4.5) - | - (2.4) | (4.9) (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 ended 31 August 2024 £'m | Six months ended 31 August 2023 £'m | Year ended 29 February 2024 £'m |
| | 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 2024 £'m | 31 August 2023 £'m | 29 February 2024 £'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 31 August 2024 £'m | Six months ended 31 August 2023 £'m | Year ended 29 February 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.
|
Net assets acquired | Provisional fair value to the Group £'m |
| 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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