TIDMBMY
RNS Number : 2557D
Bloomsbury Publishing PLC
27 October 2020
BLOOMSBURY PUBLISHING PLC
("Bloomsbury" or "the Company")
Unaudited Interim Results for the six months ended 31 August
2020
Record first half earnings performance
Interim dividend declared
Bloomsbury, the leading independent publisher, today announces
unaudited results for the six months ended 31 August 2020.
Commenting on the results, Nigel Newton, Chief Executive, said
:
"Bloomsbury experienced excellent trading in the first half with
year-on-year profit growth of 60% to GBP4.0 million. This has
delivered our highest first half earnings since 2008 and exceeded
the Board's expectations.
Online book sales and e-book revenues were significantly
higher.
The Consumer division had an excellent performance with 17%
revenue growth and a GBP2.1 million increase in profit before tax
and highlighted items to GBP2.7 million. Stand-out bestsellers
during the period included Why I'm No Longer Talking to White
People about Race, Crescent City: House of Earth and Blood, White
Rage, Humankind and Such A Fun Age.
In the Non-Consumer division, our strategy of developing online
academic resources, conceived five years ago, meant we were well
placed to benefit from the accelerated shift by academic
institutions to digital products to support remote learning. We saw
47% growth in sales of Bloomsbury Digital Resources as a
result.
Bloomsbury is in a strong financial position, with net cash of
GBP44.1 million at 31 August 2020, as a result of excellent trading
in the first half and the swift measures taken by the Board to
control costs and strengthen Bloomsbury's balance sheet. The
strength of our financial position meant that we continued to
operate effectively, invest in new content, and build a strong
pipeline of authors and titles. Bloomsbury is well positioned for
the future, with sufficient working capital and significant
headroom for acquisitions opportunities.
In light of our strong financial position and the importance of
our dividend policy, we are resuming an interim dividend of 1.28
pence per share, in line with last year.
I would like to thank our staff, authors, illustrators,
distributors and suppliers for their resilience, initiative and
determination. They continue to be motivated, adaptable and
effective, which is demonstrated by the strength of our first half
performance. This, together with the strength of our publishing
strategy supported by our solid financial position, gives me
confidence in Bloomsbury's future performance."
Financial Highlights
-- Revenues increased by 10% to GBP78.3 million (2019: GBP71.3 million)
-- Profit before taxation and highlighted items(1) grew by 60%
to GBP4.0 million (2019: GBP2.5 million)
-- Profit before taxation grew by GBP1.7 million to GBP3.0 million (2019: GBP1.3 million)
-- Diluted earnings per share, excluding highlighted items(1) ,
grew by 55% to 4.13 pence (2019: 2.66 pence)(2)
-- Diluted earnings per share grew by 131% to 2.87 pence (2019: 1.24 pence)(2)
-- Net cash of GBP44.1 million at 31 August 2020, up GBP24.0
million from last year (2019: GBP20.1 million)
-- Interim dividend of 1.28 pence per share (2019: 1.28 pence per share)
Operational Highlights
Consumer Division
-- Consumer revenue growth of 17% to GBP48.6 million (2019: GBP41.5 million)
-- Consumer profit before taxation and highlighted items (1)
increase of GBP2.1 million to GBP2.7 million (2019: GBP0.6
million)
-- Excellent Adult Trade performance, with revenue up 16% to
GBP18.8 million (2019: GBP16.2 million) and profit before taxation
and highlighted items (1) of GBP1.1 million (2019: GBP0.1 million
loss)
-- Excellent Children's Trade performance, with revenue up 18%
to GBP29.8 million (2019: GBP25.3 million) and profit before
taxation and highlighted items (1) of GBP1.7 million (2019: GBP0.8
million)
-- Strong sales of Sarah J. Maas front and backlist titles;
Harry Potter sales were robust; encouraging growth in other
Children's titles
Non-Consumer Division
-- Non-Consumer revenues of GBP29.7 million (2019: GBP29.9 million)
-- Resilient Academic & Professional performance, with
Non-Consumer revenue within 1% of 2019 and profit before taxation
and highlighted items (1) of GBP1.4 million (2019: GBP1.8
million)
-- Bloomsbury Digital Resources ("BDR") revenues up 47% to GBP5.6 million
-- Strong growth in BDR products and Academic e-books, offset by
an expected reduction in print sales
Note
(1) Highlighted items comprise amortisation of acquired
intangible assets and legal and other professional costs and
restructuring costs relating to ongoing and completed
acquisitions.
(2) Restatement of earnings per share due to bonus issue of
shares in the period.
For further information, please contact:
Bloomsbury Publishing Plc
Nigel Newton, Chief Executive nigel.newton@bloomsbury.com
Penny Scott-Bayfield, Group penny.scott-bayfield@bloomsbury.com
Finance Director
Hudson Sandler +44 (0) 20 7796 4133
Dan de Belder / Hattie Dreyfus bloomsbury@hudsonsandler.com
The information in this announcement has not been audited or
otherwise independently verified and no representation or warranty,
express or implied, is made as to, and no reliance should be placed
on, the fairness, accuracy, completeness or correctness of the
information or opinions contained herein. None of the Company or
any of its affiliates, advisors or representatives shall have any
liability whatsoever (in negligence or otherwise) for any loss
whatsoever arising from any use of this announcement, or its
contents, or otherwise arising in connection with this
announcement.
This announcement does not constitute or form part of any offer
or invitation to sell, or any solicitation of any offer to purchase
any shares in the Company, nor shall it or any part of it or the
fact of its distribution form the basis of, or be relied on in
connection with, any contract or commitment or investment decisions
relating thereto, nor does it constitute a recommendation regarding
the shares of the Company.
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 has had an excellent first half of the year. Revenue
grew by 10% to GBP78.3 million (2019: GBP71.3 million), and profit
before taxation and highlighted items increased by 60% to GBP4.0
million (2019: GBP2.5 million). Profit before taxation was GBP3.0
million (2019: GBP1.3 million).
The strength of demand for our titles, in print and e-book, and
the surge in sales of our digital products demonstrates the
strength of our long-term growth strategy.
Bloomsbury Digital Resources ("BDR") is performing very well,
with 47% revenue growth year-on-year. This has positioned us well
to deliver growth from the accelerated shift to digital learning,
with a threefold increase in the number of new customers in the
first half. The combination of excellent digital products and the
strength and range of our partnerships enable us to continue to
deliver growth from the high quality platforms and infrastructure
we have built.
The highlighted items of GBP1.0 million (2019: GBP1.2 million)
consist of the amortisation of acquired intangible assets of GBP0.9
million (2019: GBP0.9 million) and legal and other professional
fees relating to acquisitions of GBP0.1 million (2019: GBP0.3
million). The effective rate of tax for the period was 23.6% (2019:
25.6%). The effective rate of tax, excluding highlighted items, was
17.3% (2019: 17.7%). Diluted earnings per share for the period,
excluding highlighted items, was 4.13 pence (2019: 2.66 pence).
Including highlighted items, profit before taxation was GBP3.0
million (2019: GBP1.3 million) and diluted earnings per share was
2.87 pence (2019: 1.24 pence).
Balance sheet and liquidity
The Board believes our strong balance sheet ensures we have
sufficient working capital to fulfil our long-term goals and
deliver on our growth strategy.
At 31 August 2020, Bloomsbury held net cash of GBP44.1 million
(2019: GBP20.1 million). During the first half, our cash generation
was stronger than expected, due to the combination of better than
anticipated trading, reduced costs, continued focus on working
capital with a GBP3.7 million (14%) reduction in inventory and good
cash collection. We also received a GBP1.3 million loan from the US
Government under the Paycheck Protection Program ("PPP"). This
resulted in a net cash inflow, excluding the equity placing,
dividends, PPP loan and acquisitions, of GBP4.8 million (2019: net
outflow of GBP2.1 million). In addition, the net equity placing was
GBP8.0 million (2019: nil) and the final dividend was settled by
way of a bonus issue (2019: final dividend of GBP5.1 million).
Dividend
The Group's dividend policy is supported by strong cash cover.
The Board has declared an interim dividend of 1.28 pence per share,
in line with the interim dividend for the six months ended 31
August 2019. The dividend will be paid on 4 December 2020 to
Shareholders on the register on the record date of 6 November
2020.
Acquisitions
With trading having been stronger than expected, the Board
expects to be able to use the proceeds of the equity placing for
future growth opportunities. We are actively considering
acquisition opportunities in line with our long-term growth
strategy of growing our Non-Consumer portfolio.
During the period we successfully completed the integration of
Oberon Books Limited, acquired in December 2019, and the assets of
Zed Books Limited, acquired in March 2020. Bloomsbury has a
successful track record in strategic acquisitions, with 16
acquisitions completed since 2008.
Long-term growth strategy
Bloomsbury's long-term growth strategy is aimed at diversifying
into digital channels and building quality revenues, increasing
earnings and building on the success of the last five years. This
has meant that we have been well placed to benefit from recent
changes, including the accelerated shift to digital products to
support remote learning and consumer demand for titles across
multiple platforms.
Our long-term objectives include:
Non-Consumer
o Growing Bloomsbury's portfolio in Non-Consumer publishing.
These are characterised by higher, more predictable margins and
greater digital and global opportunities: 2020/21 H1 Progress:
delivered 47% growth in Non-Consumer digital revenues
o Achieve BDR revenue of GBP15 million and profit of GBP5
million for 2021/22: 2020/21 H1 Progress: delivered GBP5.6 million
revenue, up 47%, and GBP1.2m profit, up GBP1.1m
Consumer
o Discover, nurture, champion and retain high quality authors
and illustrators in our Consumer division, while looking at new
ways to leverage our backlist. 2020/21 H1 Progress: UK and US
bestsellers included Why I'm No Longer Talking to White People
about Race by Reni Eddo-Lodge, White Rage by Carol Anderson,
Humankind by Rutger Bregman and Such a Fun Age by Kiley Reid
o Grow our key authors through effective publishing across all
formats alongside strategic sales and marketing. 2020/21 H1
Progress: Sales of Sarah J. Maas' titles increased by 131%
o As the originating publisher of J.K. Rowling's Harry Potter,
to ensure that new children discover and read it for pleasure every
year. 2020/21 H1 Progress: Sales of Harry Potter titles were robust
and the paperback edition of Harry Potter and the Philosopher's
Stone was the fifth bestselling children's book of the year to date
on UK Nielsen Bookscan, twenty-three years after it was first
published
International Expansion
o Expand international revenues and reduce reliance on UK
market: 2020/21 H1 Progress: delivered overseas revenue of 67% of
Group revenue; 70% of Academic BDR revenue is international
Employee Experience and Engagement, Diversity and Inclusion
Our success is driven by our colleagues' expertise, passion and
commitment. We understand the importance of attracting, supporting
and engaging colleagues wherever they work.
o To be an attractive employer for all individuals seeking a
career in publishing regardless of background or identity;
o Focus on targeted initiatives to create an environment that
nurtures talent, stimulates creativity and collaboration, is
respectful of difference and supports well-being; and
o Bloomsbury is committed to equality, diversity and inclusion.
We condemn systemic racism in society in all its forms. We are
dedicated to finding ways to improve our industry's practices and
our own company.
o 2020/21 H1 Progress:
o We have expanded our Diversity and Inclusion networks
globally, to ensure engagement with our staff on these vital
topics;
o Working in partnership with the Black Writers' Guild to
increase diversity in staff and authors;
o With our staff, we are working on recruitment, staff
engagement, training and our networks;
o With our publishing, we seek to publish diverse voices. We
continue to look for books that will ensure our lists represent the
societies we live in. We intend to monitor our publishing so we can
ensure that our list balance is representative of those societies;
and partner with organisations that can help us achieve these aims;
and
o Increased our focus on employee engagement, with more frequent
communication across Bloomsbury, including Town Hall meetings, and
continued employee voice meetings. Having transitioned to remote
working we have designed our long-term strategy for flexible
working.
Sustainability
Continue to switch to renewable energy across all sites, with
the goal of Net Zero emissions in line with the Paris Agreement
o 2020/21 H1 Progress: We appointed a Head of Sustainability,
working with the Executive Committee Sponsor, to oversee green
initiatives across Bloomsbury worldwide. Our focus in H2 is to
establish our targets to reduce Scope 1, 2 and 3 emissions. Scope 1
and 2 emissions are already being measured and we have appointed
Trucost to further measure Scope 3 emissions. Furthermore, we have
introduced our long-term flexible working policy to reduce
emissions from staff travel; and
o Supporting the Woodland Trust and Reforest'Action for three
years.
Consumer Division
The Consumer division consists of Adult and Children's trade
publishing. The division delivered excellent revenue growth of 17%
to GBP48.6 million (2019: GBP41.5 million). Profit before taxation
and highlighted items increased by GBP2.1 million to GBP2.7 million
(2019: GBP0.6 million). These very strong results reflect robust
demand across both print and digital for front and backlist titles,
and the growth and effectiveness of online sales channels.
Frontlist highlights included Sarah J. Maas' bestselling Crescent
City: House of Earth and Blood and the Sunday Times bestseller,
Humankind by Rutger Bregman. Reni Eddo-Lodge's Why I'm No Longer
Talking to White People about Race was the number one paperback
Sunday Times bestseller for seven weeks and White Rage by Carol
Anderson reached number eight on the New York Times bestseller
list.
Our excellent publishing has been recognised with a number of
awards, with Such a Fun Age by Kiley Reid and Apeirogon by Colum
McCann being longlisted for the Booker Prize. Ka te Summerscale's
The Haunting of Alma Fielding: A True Ghost Story was shortlisted
for the Baillie Gifford Prize . The Raven Books crime and thriller
imprint was shortlisted for the second year in a row for best Crime
and Mystery Publisher by the Crime Writers Association ('CWA'), and
Between Two Evils by Eva Dolan and The Anarchists' Club by Alex
Reeve shortlisted for the prestigious CWA Dagger awards. In
addition, we have been shortlisted for the Books Are My Bag Reader
Awards with The Devil and the Dark Water by Stuart Turton,
Humankind by Rutger Bregman, Cinderella is Dead by Kalynn Bayron,
and Kiley Reid, the author of Such a Fun Age. Harry Potter and the
Philosopher's Stone won the Best Book of the last 30 years at the
British Book Awards in July. In addition, Bloomsbury won the IPG
Award for Education Publisher of the Year for the second year in a
row in September 2020.
Our excellent bestseller list performance in the last six months
has continued to build the positive profile and momentum of our
consumer publishing, positioning us well with a strong pipeline of
authors and titles in the future.
Adult Trade
The Adult team delivered growth with a 16% increase in revenue
to GBP18.8 million and a GBP1.2 million increase in profit before
taxation and highlighted items to GBP1.1 million (2019: loss of
GBP0.1 million).
Sunday Times bestsellers in the period included Humankind by
Rutger Bregman and Kiley Reid's Such a Fun Age. Reni Eddo-Lodge's
Why I'm No Longer Talking to White People about Race was the number
one paperback Sunday Times bestseller for seven weeks and White
Rage by Carol Anderson reached number eight on the New York Times
bestseller list. Cookery success on the front and backlist included
A Table for Friends, by Skye McAlpine, Dishoom, and Tom Kerridge's
Lose Weight for Good.
Children's Trade
Children's sales increased by 18% to GBP29.8 million (2019:
GBP25.3 million). There was strong demand for our classic titles,
led by J.K. Rowling's Harry Potter series, as well as Sarah J.
Maas' latest bestseller, Crescent City: House of Earth and
Blood.
Sales of Harry Potter titles were robust. Harry Potter and the
Philosopher's Stone was the UK's fifth bestselling children's book
of the year to date, twenty-three years after it was first
published. We are delighted that every year these classics reach a
new generation of readers. UK print sales of Harry Potter books
increased by 8% between mid-July and the end of September,
according to Nielsen Bookscan.
Sarah J. Maas revenues grew by 131%, reflecting her new
bestselling hardback title, Crescent City: House of Earth and Blood
and strong sales of her backlist titles. Last year there were no
new titles in the first half. We will publish two new titles this
financial year: Crescent City: House of Earth and Blood, published
in March 2020, and one in the second half: A Court of Silver
Flames, publishing in February 2021.
Revenues for the rest of the Children's division grew by 6%
year-on-year. H ighlights in the Children's list included The Wild
Way Home by Sophie Kirtley, The Great Godden by Meg Rosoff and the
fourth in the bestselling series, Kid Normal and the Final Five by
Greg James and Chris Smith, illustrated by Erica Salcedo.
Non-Consumer Division
The Non-Consumer division consists of Academic &
Professional and Special Interest. Revenues in the division were
within 1% of last year at GBP29.7 million (2019: GBP29.9 million).
Profit before taxation and highlighted items for the Non-Consumer
division was GBP1.4 million (2019: GBP1.8 million).
Academic & Professional revenues increased by 1% to GBP20.1
million (2019: GBP19.6 million) and profit was GBP1.8 million
(2019: GBP1.8 million). The accelerated demand for digital products
and swift adoption of digital learning by academic institutions
helped drive the excellent performance of BDR and accelerated
demand for e-books, which offset reduced print sales.
We are focused on delivering growth from accelerating our
established and most successful products, including the
award-winning Drama Online, building partnerships and launching new
products. We delivered a 297% increase in the number of new
customers year-on-year, and maintained our existing customer
retention rate at over 90%. With Taylor & Francis we have
delivered two modules and with Human Kinetics, we delivered the new
product and a further module will be launched in the second half.
New partnerships include the Yale University Press, the Liverpool
University Press and the Stratford Festival. In total, we delivered
two new products and two new modules in the first half and are on
track to launch a further four new modules in the second half as
planned.
Special Interest generated revenues of GBP9.6 million (2019:
GBP10.0 million), with resilient demand for wildlife titles, Wisden
and Osprey games during the period. The result was a GBP0.3 million
loss (2019: breakeven).
Social initiatives
As part of Bloomsbury's ongoing commitment to the wider
community, we have undertaken further charitable initiatives. We
published The Book of Hopes: Words and Pictures to Comfort, Inspire
and Entertain Children , edited by Katherine Rundell, with
contributions from more than 110 children's writers and
illustrators. Free to read online, this collection of short
stories, poems, essays and pictures is also published as a hardback
gift edition, with a donation from the sale of each book going to
NHS Charities Together. During Waterstones' Book of the Month
promotion, we donated 10% of their sales of Reni Eddo-Lodge's Why
I'm No Longer Talking to White People About Race between BTEG and
Inquest. These new initiatives are in addition to our three-year
partnership with the National Literacy Trust with a particular
focus on Hastings, one of the UK's most deprived local authority
areas. We gave many copies of Harry Potter and the Philosopher's
Stone through the National Literacy Trust in Hastings. In addition,
for every copy of Dishoom: From Bombay with Love sold, we donate
towards the price of a meal for a hungry child to both of Dishoom's
chosen charities, Magic Breakfast and The Akshaya Patra
Foundation.
Recent trading and outlook
Our results for the first half were excellent and demonstrate
the strength of our long-term strategy and resilient demand for our
titles, in both print and digital formats.
Bloomsbury is in a strong financial position, with net cash of
GBP44.1 million, thanks to the support of our shareholders, robust
cash generation and stronger than anticipated trading in the first
half. We are actively considering acquisition opportunities, in
line with our long-term growth strategy.
We have continued to trade well during the first six weeks of
the second half. In previous years, our revenue and earnings have
been weighted towards the second half, with sales of trade titles
rising for Christmas and sales of academic titles being strongest
at the beginning of the academic year in the Autumn.
Our strong Consumer book list for the second half includes
Quidditch Through the Ages by J.K. Rowling, illustrated by Emily
Gravett, Fantastic Beasts and the Wonder of Nature in association
with the Natural History Museum exhibition, Sarah J. Maas' A Court
of Silver Flames, the fourth in the Court of Thorns and Roses
series and GCHQ: Behind the Enigma - The Authorised History of GCHQ
by John Ferris. Front and backlist Sunday Times bestsellers in the
second half to date include Piranesi by Susanna Clarke - also a
Washington Post bestseller - and the paperback editions of Why I'm
No Longer Talking to White People about Race by Reni Eddo-Lodge,
Three Women by Lisa Taddeo, The Madness of Crowds by Douglas Murray
and The Anarchy by William Dalrymple. Highlights in Children's
include the third in Brigid Kemmerer's Cursebreaker series, A Vow
so Bold and Deadly.
We are confident about the future of publishing. The short-term
is difficult to predict because of the pandemic.
Condensed Consolidated Interim Income Statement
For the six months ended 31 August 2020
6 months 6 months Year
ended ended ended
31 August 31 August 29 February
2020 2019 2020
Notes GBP'000 GBP'000 GBP'000
---------------------------------------- ------ ----------- ------------ -------------
Revenue 3 78,287 71,341 162,772
Cost of sales (37,051) (34,512) (74,978)
---------------------------------------- ------ ----------- ------------ -------------
Gross profit 41,236 36,829 87,794
Marketing and distribution costs (9,842) (9,779) (21,373)
Administrative expenses (28,013) (25,580) (52,949)
Share of result of joint venture (39) - -
Operating profit before highlighted
items 4,343 2,684 15,947
Highlighted items 4 (1,001) (1,214) (2,475)
---------------------------------------- ------ ----------- ------------ -------------
Operating profit 3,342 1,470 13,472
Finance income 71 75 270
Finance costs (378) (244) (513)
---------------------------------------- ------ ----------- ------------ -------------
Profit before taxation and highlighted
items 4,036 2,515 15,704
Highlighted items 4 (1,001) (1,214) (2,475)
---------------------------------------- ------ ----------- ------------ -------------
Profit before taxation 3 3,035 1,301 13,229
Taxation (715) (333) (2,728)
---------------------------------------- ------ ----------- ------------ -------------
Profit for the period attributable
to owners of the Company 2,320 968 10,501
---------------------------------------- ------ ----------- ------------ -------------
Earnings per share attributable
to owners of the Company
Basic earnings per share (1) 6 2.89p 1.25p 13.58p
Diluted earnings per share(1) 6 2.87p 1.24p 13.40p
---------------------------------------- ------ ----------- ------------ -------------
The accompanying notes form an integral part of this condensed
consolidated interim financial report.
(1) Restatement of earnings per share due to the bonus issue of
shares (note 8).
Condensed Consolidated Interim Statement of Comprehensive
Income
For the six months ended 31 August 2020
6 months 6 months Year
ended ended ended
31 August 31 August 29 February
2020 2019 2020
GBP'000 GBP'000 GBP'000
------------------------------------------- ----------- ----------- -------------
Profit for the period 2,320 968 10,501
Other comprehensive income
Items that may be reclassified to the
income statement:
Exchange differences on translating
foreign operations (1,176) 3,550 856
Items that may not be reclassified
to the income statement:
Remeasurements on the defined benefit
pension scheme 4 (112) (115)
------------------------------------------- ----------- ----------- -------------
Other comprehensive income for the
period net of tax (1,172) 3,438 741
------------------------------------------- ----------- ----------- -------------
Total comprehensive income for the
period attributable to owners of the
Company 1,148 4,406 11,242
------------------------------------------- ----------- ----------- -------------
Items in the statement above are disclosed net of tax.
Condensed Consolidated Interim Statement of Financial
Position
At 31 August 2020
Notes 31 August 31 August 29 February
2020 2019 2020
GBP'000 GBP'000 GBP'000
------------------------------------- ------ ---------- ---------- ------------
Assets
Goodwill 44,865 45,254 45,030
Other intangible assets 21,881 21,048 21,630
Investments 477 300 516
Property, plant and equipment 1,774 2,020 1,914
Right-of-use assets 12,333 13,052 13,343
Deferred tax assets 2,960 2,579 2,756
Trade and other receivables 7 1,092 1,338 1,237
------------------------------------- ------ ---------- ---------- ------------
Total non-current assets 85,382 85,591 86,426
------------------------------------- ------ ---------- ---------- ------------
Inventories 26,375 31,204 27,164
Trade and other receivables 7 85,734 85,959 84,805
Cash and cash equivalents 44,058 20,090 31,345
------------------------------------- ------ ---------- ---------- ------------
Total current assets 156,167 137,253 143,314
------------------------------------- ------ ---------- ---------- ------------
Total assets 241,549 222,844 229,740
------------------------------------- ------ ---------- ---------- ------------
Liabilities
Retirement benefit obligations 139 217 185
Deferred tax liabilities 2,435 2,328 2,347
Borrowings 12,698 12,679 12,945
Provisions 202 148 182
------------------------------------- ------ ---------- ---------- ------------
Total non-current liabilities 15,474 15,372 15,659
------------------------------------- ------ ---------- ---------- ------------
Trade and other payables 64,347 62,589 61,844
Borrowings 2,442 1,650 1,585
Current tax liabilities - - 328
Provisions 665 43 651
------------------------------------- ------ ---------- ---------- ------------
Total current liabilities 67,454 64,282 64,408
------------------------------------- ------ ---------- ---------- ------------
Total liabilities 82,928 79,654 80,067
------------------------------------- ------ ---------- ---------- ------------
Net assets 158,621 143,190 149,673
------------------------------------- ------ ---------- ---------- ------------
Equity
Share capital 1,020 942 942
Share premium 47,319 39,388 39,388
Translation reserve 8,331 12,201 9,507
Other reserves 8,682 7,201 7,778
Retained earnings 93,269 83,458 92,058
------------------------------------- ------ ---------- ---------- ------------
Total equity attributable to owners
of the Company 158,621 143,190 149,673
------------------------------------- ------ ---------- ---------- ------------
Condensed Consolidated Interim Statement of Changes in
Equity
At 31 August 2020
Own
Capital Share-based shares
Share Share Translation Merger redemption payment held by Retained Total
capital premium reserve reserve reserve reserve the EBT earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
At 1 March 2020 942 39,388 9,507 1,803 22 6,724 (771) 92,058 149,673
Profit for the
period - - - - - - - 2,320 2,320
Other comprehensive
income
Exchange
differences on
translating
foreign
operations - - (1,176) - - - - - (1,176)
Remeasurements
on the defined
benefit
pension scheme - - - - - - - 4 4
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
Total comprehensive
income for the
period - - (1,176) - - - - 2,324 1,148
Transactions with
owners
Issue of share
capital 47 7,931 - - - - - - 7,978
Bonus issue of
share capital 31 - - - - - - (31) -
Purchase of
shares by the
Employee
Benefit Trust - - - - - - (536) - (536)
Share options
exercised - - - - - - 1,017 (1,017) -
Deferred tax on
share-based
payment
transactions - - - - - - - (65) (65)
Share-based
payment
transactions - - - - - 423 - - 423
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
Total transactions
with owners of the
Company 78 7,931 - - - 423 481 (1,113) 7,800
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
At 31 August 2020 1,020 47,319 8,331 1,803 22 7,147 (290) 93,269 158,621
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
Own
Capital Share-based shares
Share Share Translation Merger redemption payment held by Retained Total
capital premium reserve reserve reserve reserve the EBT earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
At 1 March 2019 942 39,388 8,651 1,803 22 6,095 (802) 87,639 143,738
Profit for the
period - - - - - - - 968 968
Other comprehensive
income
Exchange
differences on
translating
foreign
operations - - 3,550 - - - - - 3,550
Remeasurements
on the defined
benefit
pension scheme - - - - - - - (112) (112)
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
Total comprehensive
income for the
period - - 3,550 - - - - 856 4,406
Transactions with
owners
Dividends to
equity holders
of the Company - - - - - - - (5,051) (5,051)
Share options
exercised - - - - - - 2 - 2
Deferred tax on
share-based
payment
transactions - - - - - - - 14 14
Share-based
payment
transactions - - - - - 81 - - 81
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
Total transactions
with owners of the
Company - - - - - 81 2 (5,037) (4,954)
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
At 31 August 2019 942 39,388 12,201 1,803 22 6,176 (800) 83,458 143,190
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
Own
Capital Share-based shares
Share Share Translation Merger redemption payment held by Retained Total
capital premium reserve reserve reserve reserve the EBT earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------------ -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
At 1 March 2019 942 39,388 8,651 1,803 22 6,095 (802) 87,639 143,738
Profit for the period - - - - - - - 10,501 10,501
Other comprehensive income
Exchange differences on translating foreign
operations - - 856 - - - - - 856
Remeasurements on the defined benefit
pension scheme - - - - - - - (115) (115)
------------------------------------------------ -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
Total comprehensive income for the period - - 856 - - - - 10,386 11,242
Transactions with owners
Dividends to equity holders of the Company - - - - - - - (6,009) (6,009)
Share options exercised - - - - - - 31 (4) 27
Deferred tax on share-based payment
transactions - - - - - - - 46 46
Share-based payment transactions - - - - - 629 - - 629
------------------------------------------------ -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
Total transactions with owners of the Company - - - - - 629 31 (5,967) (5,307)
------------------------------------------------ -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
At 29 February 2020 942 39,388 9,507 1,803 22 6,724 (771) 92,058 149,673
------------------------------------------------ -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
Condensed Consolidated Interim Statement of Cash Flows
For the six months ended 31 August 2020
6 months 6 months ended Year ended
ended
31 August 31 August 29 February
2020 2019 2020
GBP'000 GBP'000 GBP'000
----------------------------------------- ---------- --------------- ------------
Cash flows from operating activities
Profit for the period 2,320 968 10,501
Adjustments for:
Depreciation 226 247 502
Depreciation of right-of-use assets 908 860 1,775
Amortisation of intangible assets 2,402 2,149 4,301
Finance income (71) (75) (270)
Finance costs 378 244 513
Share of loss of joint venture 39 - 7
Share-based payment charges 456 100 761
Tax expense 715 333 2,728
----------------------------------------- ---------- --------------- ------------
7,373 4,826 20,818
Decrease/(increase) in inventories 874 (3,571) (620)
Increase in trade and other receivables (1,029) (2,638) (4,385)
Increase in trade and other payables 2,800 1,310 2,489
----------------------------------------- ---------- --------------- ------------
Cash generated from/(used in) operating
activities 10,018 (73) 18,302
Income taxes paid (1,910) (622) (1,706)
----------------------------------------- ---------- --------------- ------------
Net cash generated from/(used in)
operating activities 8,108 (695) 16,596
----------------------------------------- ---------- --------------- ------------
Cash flows from investing activities
Purchase of property, plant and
equipment (89) (131) (294)
Purchases of intangible assets (1,299) (1,226) (3,137)
Purchase of business, net of cash
acquired - (310) (310)
Purchase of rights to assets (1,490) - (1,213)
Purchase of share of joint venture - - (223)
Interest received 71 75 254
Net cash used in investing activities (2,807) (1,592) (4,923)
----------------------------------------- ---------- --------------- ------------
Cash flows from financing activities
Equity dividends paid - (5,051) (6,009)
Purchase of shares by the Employee (536) - -
Benefit Trust
Proceeds from exercise of share
options - 2 27
Proceeds from share issue 7,978 - -
New loan advances 1,450 - -
Repayment of lease liabilities (583) (560) (1,531)
Lease liabilities interest paid (235) (242) (492)
Other interest paid (143) (2) (3)
Net cash generated from/(used in)
financing activities 7,931 (5,853) (8,008)
----------------------------------------- ---------- --------------- ------------
Net increase/(decrease) in cash
and cash equivalents 13,232 (8,140) 3,665
Cash and cash equivalents at beginning
of period 31,345 27,580 27,580
Exchange (loss)/gain on cash and
cash equivalents (519) 650 100
----------------------------------------- ---------- --------------- ------------
Cash and cash equivalents at end
of period 44,058 20,090 31,345
----------------------------------------- ---------- --------------- ------------
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 2020 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' as adopted by the European
Union ("EU"). 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 2020.
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 2020 and should
be read in conjunction with the Annual Report 2020. The annual
consolidated financial statements of the Group are prepared in
accordance with International Financial Reporting Standards
("IFRS") and International Financial Reporting Interpretations
Committee ("IFRIC") pronouncements as adopted by the EU. The 2020
Annual Report refers to other new standards effective from 1 March
2020. None of these standards have had a material impact in these
financial statements.
The comparative financial information for the year ended 29
February 2020 does not constitute statutory accounts for that
financial year. This information was extracted from the statutory
accounts for the year ended 29 February 2020, 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 27
October 2020.
b) Going concern
The Directors are confident that the Group has adequate
resources to continue in operational existence and will have
sufficient funds to meet its liabilities as they fall due for at
least 12 months from the date of approval of the condensed
consolidated interim financial statements and therefore have
prepared the condensed consolidated interim financial statements on
a going concern basis. The factors taken into account in developing
this expectation include the level of cash within the business, the
Group's bank facilities, continuing sources of revenue and
principal risks including the impact of coronavirus.
The Board has modelled a severe but plausible pessimistic
downside scenario, including the continued impact of coronavirus.
This assumes:
-- Print sales drop by 25% due to continued uncertainty in the
retail sector and economic pressure;
-- Digital sales 5% lower due to economic pressure; and
-- Downside assumptions about extended debtor days to February
2022.
Under this severe but plausible downside scenario, the Group has
sufficient liquidity to be able to manage these downside
assumptions. This process supports the view that for the period to
28 February 2022, the Group is expected to be able to operate
within the level of its current financing and meet its covenant
requirements.
The Group's bank facilities consist of a GBP8 million to GBP12
million committed revolving loan facility (amount dependent on time
during the year to match Bloomsbury's cash flow cycle) which
expires in May 2022 and an uncommitted incremental term loan
facility of up to GBP6 million. At 31 August 2020, the Group had
not drawn the facility.
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 2020 Annual Report.
3. Segmental analysis
The Group is comprised of two worldwide publishing divisions:
Consumer and Non-Consumer, reflecting the core customers for our
different operations. The Consumer division is further split out
into two operating segments: Children's Trade and Adult Trade.
Non-Consumer is split between two operating segments: Academic
& Professional and Special Interest.
Each reportable segment represents a cash-generating unit for
the purpose of impairment testing. We have allocated goodwill
between reportable segments.
These divisions are the basis on which the Group primarily
reports its segment information. Segments derive their revenue from
book publishing, sale of publishing and distribution rights,
management and other publishing services. The analysis by segment
is shown below:
Children's Adult Consumer Academic Special Non-Consumer Unallocated Total
Trade Trade & Interest
Professional
Six months GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
ended 31 August
2020 GBP'000 GBP'000 GBP'000
---------------- ----------- -------- --------- ------------- --------- ------------- ------------ ---------
External
revenue 29,767 18,836 48,603 20,083 9,601 29,684 - 78,287
Cost of sales (16,002) (9,205) (25,207) (7,014) (4,830) (11,844) - (37,051)
---------------- ----------- -------- --------- ------------- --------- ------------ ---------
Gross profit 13,765 9,631 23,396 13,069 4,771 17,840 - 41,236
Marketing and
distribution
costs (3,824) (2,647) (6,471) (1,945) (1,426) (3,371) - (9,842)
---------------- ----------- -------- --------- ------------- --------- ------------ ---------
Contribution
before
administrative
expenses 9,941 6,984 16,925 11,124 3,345 14,469 - 31,394
Administrative
expenses
excluding
highlighted
items (8,212) (5,887) (14,099) (9,273) (3,640) (12,913) - (27,012)
Share of joint
venture - - - - - - (39) (39)
---------------- ----------- -------- --------- ------------- --------- ------------ ---------
Operating
profit/(loss)
before
highlighted
items 1,729 1,097 2,826 1,851 (295) 1,556 (39) 4,343
Amortisation of
acquired
intangible
assets - (9) (9) (767) (107) (874) - (883)
Other
highlighted
items - - - - - - (118) (118)
---------------- ----------- -------- --------- ------------- --------- ------------ ---------
Operating
profit /(loss) 1,729 1,088 2,817 1,084 (402) 682 (157) 3,342
Finance income - - - 26 - 26 45 71
Finance costs (51) (43) (94) (98) (42) (140) (144) (378)
---------------- ----------- -------- --------- ------------- --------- ------------ ---------
Profit/(loss)
before
taxation
and
highlighted
items 1,678 1,054 2,732 1,779 (337) 1,442 (138) 4,036
Amortisation of
acquired
intangible
assets - (9) (9) (767) (107) (874) - (883)
Other
highlighted
items - - - - - - (118) (118)
---------------- ----------- -------- --------- ------------- --------- ------------ ---------
Profit/(loss)
before
taxation 1,678 1,045 2,723 1,012 (444) 568 (256) 3,035
Taxation - - - - - - (715) (715)
---------------- ----------- -------- --------- ------------- --------- ------------ ---------
Profit/(loss)
for the period 1,678 1,045 2,723 1,012 (444) 568 (971) 2,320
---------------- ----------- -------- --------- ------------- --------- ------------- ------------ ---------
Children's Adult Consumer Academic Special Non-Consumer Unallocated Total
Trade Trade & Interest(1)
Professional(1)
Six months GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
ended 31 August
2019 GBP'000 GBP'000 GBP'000
---------------- ----------- -------- --------- ---------------- ------------ ------------- ------------ ---------
External
revenue 25,280 16,187 41,467 19,866 10,008 29,874 - 71,341
Cost of sales (13,981) (8,913) (22,894) (6,521) (5,097) (11,618) - (34,512)
---------------- ----------- -------- --------- ---------------- ------------ ------------ ---------
Gross profit 11,299 7,274 18,573 13,345 4,911 18,256 - 36,829
Marketing and
distribution
costs (3,665) (2,600) (6,265) (2,179) (1,335) (3,514) - (9,779)
---------------- ----------- -------- --------- ---------------- ------------ ------------ ---------
Contribution
before
administrative
expenses 7,634 4,674 12,308 11,166 3,576 14,742 - 27,050
Administrative
expenses
excluding
highlighted
items (6,753) (4,768) (11,521) (9,297) (3,548) (12,845) - (24,366)
---------------- ----------- -------- --------- ---------------- ------------ ------------ ---------
Operating
profit/(loss)
before
highlighted
items 881 (94) 787 1,869 28 1,897 - 2,684
Amortisation of
acquired
intangible
assets - (9) (9) (748) (107) (855) - (864)
Other
highlighted
items - - - - - - (350) (350)
---------------- ----------- -------- --------- ---------------- ------------ ------------ ---------
Operating
profit /(loss) 881 (103) 778 1,121 (79) 1,042 (350) 1,470
Finance income - - - 33 - 33 42 75
Finance costs (89) (49) (138) (71) (33) (104) (2) (244)
---------------- ----------- -------- --------- ---------------- ------------ ------------ ---------
Profit/(loss)
before
taxation
and
highlighted
items 792 (143) 649 1,831 (5) 1,826 40 2,515
Amortisation of
acquired
intangible
assets - (9) (9) (748) (107) (855) - (864)
Other
highlighted
items - - - - - - (350) (350)
---------------- ----------- -------- --------- ---------------- ------------ ------------ ---------
Profit/(loss)
before
taxation 792 (152) 640 1,083 (112) 971 (310) 1,301
Taxation - - - - - - (333) (333)
---------------- ----------- -------- --------- ---------------- ------------ ------------ ---------
Profit/(loss)
for the period 792 (152) 640 1,083 (112) 971 (643) 968
---------------- ----------- -------- --------- ---------------- ------------ ------------- ------------ ---------
Children's Adult Consumer Academic Special Non-Consumer Unallocated Total
Trade Trade & Interest(1)
Professional(1)
Year ended 29 February 2020 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------- ----------- --------- --------- ---------------- ------------ ------------- ------------ ---------
External revenue 59,354 37,416 96,770 43,123 22,879 66,002 - 162,772
Cost of sales (30,840) (19,627) (50,467) (13,606) (10,905) (24,511) - (74,978)
------------------------------------- ----------- --------- --------- ---------------- ------------ ------------ ---------
Gross profit 28,514 17,789 46,303 29,517 11,974 41,491 - 87,794
Marketing and distribution
costs (8,269) (5,619) (13,888) (4,636) (2,849) (7,485) - (21,373)
------------------------------------- ----------- --------- --------- ---------------- ------------ ------------ ---------
Contribution before administrative
expenses 20,245 12,170 32,415 24,881 9,125 34,006 - 66,421
Administrative expenses excluding
highlighted items (12,845) (10,503) (23,348) (19,975) (7,151) (27,126) - (50,474)
------------------------------------- ----------- --------- --------- ---------------- ------------ ------------ ---------
Operating profit/(loss) before
highlighted items 7,400 1,667 9,067 4,906 1,974 6,880 - 15,947
Amortisation of acquired intangible
assets - (18) (18) (1,504) (214) (1,718) - (1,736)
Other highlighted items - - - - - - (739) (739)
------------------------------------- ----------- --------- --------- ---------------- ------------ ------------ ---------
Operating profit /(loss) 7,400 1,649 9,049 3,402 1,760 5,162 (739) 13,472
Finance income - - - 116 - 116 154 270
Finance costs (110) (94) (204) (201) (88) (289) (20) (513)
------------------------------------- ----------- --------- --------- ---------------- ------------ ------------ ---------
Profit/(loss) before taxation
and highlighted items 7,290 1,573 8,863 4,821 1,886 6,707 134 15,704
Amortisation of acquired intangible
assets - (18) (18) (1,504) (214) (1,718) - (1,736)
Other highlighted items - - - - - - (739) (739)
------------------------------------- ----------- --------- --------- ---------------- ------------ ------------ ---------
Profit/(loss) before taxation 7,290 1,555 8,845 3,317 1,672 4,989 (605) 13,229
Taxation - - - - - - (2,728) (2,728)
------------------------------------- ----------- --------- --------- ---------------- ------------ ------------ ---------
Profit/(loss) for the year 7,290 1,555 8,845 3,317 1,672 4,989 (3,333) 10,501
------------------------------------- ----------- --------- --------- ---------------- ------------ ------------- ------------ ---------
(1) The Content Services division has been moved into the
Special Interest Division; digital projects moved to the Academic
& Professional division.
Children's Adult Consumer Academic Special Non-Consumer Unallocated Total
Trade Trade & Professional Interest
Six months GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
ended 31 August
2020 GBP'000 GBP'000 GBP'000
---------------- ----------- -------- --------- --------------- ---------- ------------- ------------ --------
Operating
profit /
(loss)
before
highlighted
items 1,729 1,097 2,826 1,851 (295) 1,556 (39) 4,343
Depreciation 303 228 531 411 192 603 - 1,134
Amortisation of
internally
generated
intangibles 228 166 394 988 137 1,125 - 1,519
---------------- ----------- -------- --------- --------------- ---------- ------------ --------
EBITDA before
highlighted
items 2,260 1,491 3,751 3,250 34 3,284 (39) 6,996
---------------- ----------- -------- --------- --------------- ---------- ------------ --------
Children's Adult Consumer Academic Special Non-Consumer Unallocated Total
Trade Trade & Interest(1)
Professional(1)
Six months GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
ended 31
August
2019 GBP'000 GBP'000 GBP'000
-------------- ----------- -------- --------- ---------------- ------------ ------------- ------------ --------
Operating
profit /
(loss)
before
highlighted
items 881 (94) 787 1,869 28 1,897 - 2,684
Depreciation 387 253 640 319 148 467 - 1,107
Amortisation
of
internally
generated
intangibles 186 95 281 909 95 1,004 - 1,285
-------------- ----------- -------- --------- ---------------- ------------ ------------ --------
EBITDA before
highlighted
items 1,454 254 1,708 3,097 271 3,368 - 5,076
-------------- ----------- -------- --------- ---------------- ------------ ------------ --------
Children's Adult Consumer Academic Special Non-Consumer Unallocated Total
Trade Trade & Interest(1)
Professional(1)
Year ended 29 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
February 2020 GBP'000 GBP'000 GBP'000
-------------- ----------- -------- --------- ---------------- ------------ ------------- ------------ --------
Operating
profit /
(loss)
before
highlighted
items 7,400 1,667 9,067 4,906 1,974 6,880 - 15,947
Depreciation 821 515 1,336 626 315 941 - 2,277
Amortisation
of
internally
generated
intangibles 360 210 570 1,817 178 1,995 - 2,565
-------------- ----------- -------- --------- ---------------- ------------ ------------ --------
EBITDA before
highlighted
items 8,581 2,392 10,973 7,349 2,467 9,816 - 20,789
-------------- ----------- -------- --------- ---------------- ------------ ------------ --------
(1) The Content Services division has been moved into the
Special Interest Division; digital projects moved to the Academic
& Professional division.
External revenue by product type
Six months Six months Year
ended ended ended
31 August 31 August 29 February
2020 2019 2020
GBP'000 GBP'000 GBP'000
-------------------- ---------- ---------- ------------
Print 57,687 56,609 129,115
Digital 17,625 11,264 24,135
Rights and services 2,975 3,468 9,522
-------------------- ---------- ---------- ------------
Total 78,287 71,341 162,772
-------------------- ---------- ---------- ------------
Rights and services revenue includes revenue from copyright and
trademark licences, management contracts, advertising and
publishing services.
Total assets 31 August 31 August 29 February
2020 2019(1) 2020
GBP'000 GBP'000 GBP'000
------------------------- ---------- --------------------- ------------
Children's Trade 9,312 13,086 11,016
Adult Trade 7,469 7,782 6,747
Academic & Professional 59,109 59,210 59,128
Special Interest 13,800 14,479 13,492
Unallocated 151,859 128,287 139,357
------------------------- ---------- --------------------- ------------
Total assets 241,549 222,844 229,740
------------------------- ---------- --------------------- ------------
Unallocated primarily represents centrally held assets including
system development, property, plant and equipment, receivables and
cash.
(1) The Content Services division has been moved into the
Special Interest Division; digital projects moved to the Academic
& Professional division.
4. Highlighted items
Six months Six months Year
ended ended ended
31 August 31 August 29 February
2020 2019 2020
GBP'000 GBP'000 GBP'000
------------------------------------- ----------- ----------- -------------
Legal and other professional fees 87 350 461
Coronavirus onerous costs - - 180
Restructuring costs 31 - 98
Other highlighted items 118 350 739
Amortisation of acquired intangible
assets 883 864 1,736
------------------------------------- ----------- ----------- -------------
Total highlighted items 1,001 1,214 2,475
------------------------------------- ----------- ----------- -------------
Highlighted items charged to operating profit comprise
significant non-cash charges and the cost of 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 of the business and future
profitability of the business.
For the six months ended 31 August 2020 legal and other
professional fees of GBP87,000 were incurred as a result of the Zed
Books acquisition (six months ended 31 August 2019: GBP350,000 and
year ended 29 February 2020: GBP461,000 has been incurred as a
result of the Group's acquisition of rights, primarily that of
Oberon Books Limited and the joint venture; Beijing CYP &
Gakken Education Development Co., Ltd).
For the six months ended 31 August 2020, restructuring costs of
GBP31,000 were incurred as a result of the acquisition of Oberon
Books Limited and Zed Books (year ended 29 February 2020
restructuring costs of GBP98,000 relate to the acquisition of
Oberon Books Limited and I.B. Tauris & Co. Limited).
For the year ended 29 February 2020, Coronavirus onerous costs
of GBP180,000 are irrecoverable costs crystallised in the year
associated with book fairs and conferences that were cancelled due
to the coronavirus.
5. Dividends
Six months Six months Year
ended ended ended
31 August 31 August 29 February
2020 2019 2020
GBP'000 GBP'000 GBP'000
--------------------------------- ----------- ----------- ------------
Amounts paid in the period
Prior period final dividend - 5,051 5,051
Interim dividend - - 958
--------------------------------- ----------- ----------- ------------
Total dividend payments in the
period - 5,051 6,009
Amounts arising in respect of
the period
Interim dividend for the period 1,045 958 958
Final dividend for the year - - -
--------------------------------- ----------- ----------- ------------
Total dividend for the period 1,045 958 958
--------------------------------- ----------- ----------- ------------
The proposed interim dividend of 1.28 pence per ordinary share
will be paid to the equity Shareholders on 4 December 2020 to
Shareholders registered at close of business on 6 November
2020.
For the year ended 29 February 2020, Bloomsbury made a bonus
issue to Shareholders in lieu of, and with a value equivalent to,
its proposed final cash dividend of 6.89 pence per ordinary
share.
6. Earnings per share
The basic earnings per share for the six months ended 31 August
2020 is calculated using a weighted average number of Ordinary
Shares in issue of 80,190,832 (31 August 2019: 77,343,137 and 29
February 2020: 77,345,922) 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
2020 2019 2020
Number Number
Number restated* restated*
Weighted average shares in
issue 80,190,832 77,343,137 77,345,922
Dilution 725,819 640,005 1,026,939
--------------------------------- --------------- --------------- ------------
Diluted weighted average shares
in issue 80,916,651 77,983,142 78,372,861
--------------------------------- --------------- --------------- ------------
GBP'000 GBP'000 GBP'000
--------------------------------- --------------- --------------- ------------
Profit after tax attributable
to owners of the Company 2,320 968 10,501
--------------------------------- --------------- --------------- ------------
Basic earnings per share 2.89p 1.25p 13.58p
Diluted earnings per share 2.87p 1.24p 13.40p
--------------------------------- --------------- --------------- ------------
Adjusted profit attributable
to owners of the Company 3,339 2,071 12,720
--------------------------------- --------------- --------------- ------------
Adjusted basic earnings per
share 4.16p 2.68p 16.45p
Adjusted diluted earnings
per share 4.13p 2.66p 16.23p
--------------------------------- --------------- --------------- ------------
Adjusted profit is derived as follows:
Profit before tax 3,035 1,301 13,229
Amortisation of acquired intangible
assets 883 864 1,736
Other highlighted items 118 350 739
------------------------------------- ------ ------ -------
Adjusted profit before tax 4,036 2,515 15,704
------------------------------------- ------ ------ -------
Tax expense 715 333 2,728
Deferred tax movements on
goodwill and acquired intangible
assets (21) 110 202
Tax expense on other highlighted
items 3 1 54
Adjusted tax 697 444 2,984
----------------------------------- ----- ---- ------
Adjusted profit 3,339 2,071 12,720
----------------- ------ ------ -------
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.
*Restatement of earnings per share due to the bonus issue of
shares (note 8).
7. Trade and other receivables
31 August 31 August 29 February
2020 2019 2020
Non-current GBP'000 GBP'000 GBP'000
------------------------------------------ ----------- ----------- -------------
Prepayments and accrued income 1,092 1,338 1,237
------------------------------------------ ----------- ----------- -------------
Non-current trade and other receivables 1,092 1,338 1,237
------------------------------------------ ----------- ----------- -------------
Current
Gross trade receivables 56,292 54,803 54,252
Less: loss allowance (3,371) (1,682) (1,832)
------------------------------------------ ----------- ----------- -------------
Net trade receivables 52,921 53,121 52,420
Income tax recoverable 1,108 1,582 481
Other receivables 2,740 1,607 1,510
Prepayments and accrued income 4,067 4,289 5,551
Royalty advances 24,898 25,360 24,843
------------------------------------------ ----------- ----------- -------------
Current trade and other receivables 85,734 85,959 84,805
------------------------------------------ ----------- ----------- -------------
Total trade and other receivables 86,826 87,297 86,042
------------------------------------------ ----------- ----------- -------------
Trade receivables principally comprise amounts receivable from
the sale of books due from distributors. Most 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 2020 GBP6,239,000 (31
August 2019 GBP6,389,000 and 29 February 2020 GBP5,604,000) of
royalty advances relate to titles expected to publish after more
than 12 months.
8. Restatement of earnings per share due to the bonus issue of shares in the period
On 28 August 2020 a bonus issue in lieu of final dividend of
2,513,674 Ordinary Shares of 1.25 pence each, were provided to
Shareholders on the register on the record date of 31 July 2020.
This bonus issue was made to Shareholders in lieu of, and with a
value equivalent to, the final dividend Bloomsbury would have
declared in the absence of coronavirus.
Six months Six months Year Year
ended ended
31 August 31 August ended ended
2019 2019 29 February 29 February
(restated) 2020 2020
(restated)
--------------------------------- ------------ ----------- ------------- -------------
Basic earnings per share 1.25p 1.29p 13.58p 14.03p
Diluted earnings per share 1.24p 1.28p 13.40p 13.84p
Adjusted basic earnings
per share 2.68p 2.77p 16.45p 17.00p
Adjusted diluted earnings
per share 2.66p 2.74p 16.23p 16.77p
Weighted average number
of shares used in basic
earnings per share calculation 77,343,137 74,828,480 77,345,922 74,830,714
Weighted average number
of shares used in diluted
earnings per share calculation 77,983,142 75,468,485 78,372,861 75,857,653
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
--------------------- -------------------------------------
Sir Richard Lambert Independent Non-Executive Chairman
--------------------- -------------------------------------
Nigel Newton Chief Executive
--------------------- -------------------------------------
John Warren Independent Non-Executive Director
Senior Independent Director
Chair of the Audit Committee
--------------------- -------------------------------------
Leslie-Ann Reed Independent Non-Executive Director
--------------------- -------------------------------------
Steven Hall Independent Non-Executive Director
Chair of the Remuneration Committee
--------------------- -------------------------------------
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 IAS 34 Interim Financial Reporting as adopted by
the EU.
-- 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
27 October 2020
Principal risks and uncertainties
Bloomsbury has a systematic and embedded risk management process
for identifying and addressing the short to long-term risks and
uncertainties for its operations worldwide. The strategy
implemented by the Board aims to mitigate the main risks and
exploit opportunities to create sustainable returns for
shareholders. A summary of the principal risks and uncertainties to
the business are as follows:
-- Market: including market volatility due to the impact of the
coronavirus pandemic, increased dependence on internet retailing,
sales of used books and rental of text books;
-- Importance of digital publishing: BDR revenues and profit;
-- Acquisitions: Risk of delivering lower than expected return on investment;
-- Title acquisition: Commercial viability of titles acquired;
-- Information and technology systems: Cybersecurity and the
risk of malware attack, and the risk of inadequate internal access
controls or security measures;
-- Financial valuations: Judgemental valuation of assets and provisions;
-- Intellectual property: Erosion of copyright and infringement of IP by third parties;
-- Reliance on key counterparties: Failure of key counterparties
or breakdown in key counterparty relationships;
-- Talent management: Failure to retain key talent and create
the conditions in which employees can thrive;
-- Legal and compliance: Breach of key contracts by the Company
and failure to comply with applicable regulations; and
-- Reputation: Investor confidence.
Further information about the principal risks and mitigation of
those risks included in the 2020 Annual Report and Accounts.
INDEPENDENT REVIEW REPORT TO BLOOMSBURY PUBLISHING PLC
Conclusion
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 31 August 2020 which comprises the condensed
consolidated interim income statement, the condensed consolidated
interim statement of comprehensive income, the condensed
consolidated interim statement of financial position, the condenses
consolidated interim statement of changes in equity, the condensed
consolidated interim statement of cash flows and the related
explanatory notes.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 31
August 2020 is not prepared, in all material respects, in
accordance with IAS 34 Interim Financial Reporting as adopted by
the EU and the Disclosure Guidance and Transparency Rules ("the
DTR") of the UK's Financial Conduct Authority ("the UK FCA").
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Auditing Practices Board for use in the
UK. A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. We read the other information contained in the
half-yearly financial report and consider whether it contains any
apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the DTR of the UK FCA.
As disclosed in note 2, the annual financial statements of the
group are prepared in accordance with International Financial
Reporting Standards as adopted by the EU. The directors are
responsible for preparing the condensed set of financial statements
included in the half-yearly financial report in accordance with IAS
34 as adopted by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
The purpose of our review work and to whom we owe our
responsibilities
This report is made solely to the company in accordance with the
terms of our engagement to assist the company in meeting the
requirements of the DTR of the UK FCA. Our review has been
undertaken so that we might state to the company those matters we
are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the company for our
review work, for this report, or for the conclusions we have
reached.
Sarah Styant
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London
E14 5GL
27 October 2020
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