Bloomsbury Publishers Financial Report
And I gotta say, I find this stat. astounding: "Unprecedented ebook sales growth ebook sales in the six months to 31 August 2011 increased by 564% to £2.5 million (2010: £0.4m)"
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RNS Number : 9204QBloomsbury Publishing PLC27 October 2011
BLOOMSBURY PUBLISHING Plc
("Bloomsbury" or "the Group")
Unaudited Interim Results for the six months ended 31 August 2011
Bloomsbury Publishing Plc today announces six month results for the period ended 31 August 2011.
Financial highlights
The highlights for the six months ended 31 August 2011 include:
· Turnover up 16% to £44.9 million (2010: £38.6 million)
· Pre-tax profit, adjusted for highlighted items*, up 52% to £2.2 million (2010: £1.4 million)
· Pre-tax profit of £0.3 million (2010: £0.8 million)
· Interim dividend increased by 10% to 0.89 pence per share (2010: 0.81 pence)
· Basic earnings per share, adjusted for highlighted items*, up 31% to 2.07 pence (2010: 1.58 pence)
· Basic earnings per share of 0.30 pence (2010: 0.76 pence)
Operating highlights
· Unprecedented ebook sales growth
o ebook sales in the six months to 31 August 2011 increased by 564% to £2.5 million (2010: £0.4m)
· Strengthened management team
o Appointment of new Group Finance Director and Managing Director of new Children's & Educational division
· Significant development of Academic & Professional division
o Acquisition of leading Academic publisher Continuum for cash consideration of £20.1 million
o Purchase of National Archives Publishing programme backlist
o Drama online project with Faber & Faber
o Contract to publish PricewaterhouseCoopers Manual of Accounting series
o Licensing deal with Practical Law Company
· Bestsellers across the Group:
o The Finkler Question - Howard Jacobson
o Eat Pray Love - Elizabeth Gilbert
o Harry Potter series - JK Rowling
· Strong list for the second half
o River Cottage Veg Everyday! - Hugh Fearnley-Whittingstall
o Heston at Home - Heston Blumenthal
o Pigeon English - Stephen Kelman
o The Wombles - Elizabeth Beresford
* Highlighted items include amortization of intangible assets, acquisition costs, restructuring and relocation costs.
Commenting on the results, Nigel Newton, Chief Executive, said:
"We have enjoyed a strong first half to the year with both the UK and US performing above expectations. 2011 remains the year of the ebook, with our sales in the first half surging by 564%. Our early-mover advantage and the investment we have made, means we are well positioned to benefit from continued digital growth. Our Academic & Professional division was bolstered by the transforming acquisition of Continuum in July, providing us with more stable and predictable income streams.
We believe that our restructured business of one global Bloomsbury has a firm foundation and an excellent management team, which, combined with continuing ebook growth and our strong content, will enable us to deliver results in line with our expectations. In our 25th anniversary year, we believe our global strategy provides Bloomsbury with a firm foundation on which to continue to grow the business."
For further information, please contact:
Daniel de Belder/Rosanne Perry, Pelham Bell Pottinger
+44 (0) 20 7861 3232
Nigel Newton, Chief Executive, Bloomsbury Publishing Plc
+44 (0) 20 7631 5630
Chief Executive's Review
Six months ended 31 August 2011
Overview
We have had a strong first half to our financial year. Profit before tax, before taking account of highlighted items, was up 52% in the six month period to £2.2 million (2010: £1.4 million). Profit before tax was £0.3 million (2010: £0.8 million).
The UK and the US have performed above expectations, with a robust second quarter following a slow first quarter. There are huge changes taking place in the way people discover, purchase and use intellectual property and much of our success has come from managing the switch from print to ebooks and digital communities. Ebooks saw dramatic growth with year on year group ebook sales increasing 564% in the six month period to £2.5 million, representing 5.5% of total Group sales.
We are making good progress in integrating the Continuum International Publishing ("Continuum") business into Bloomsbury, following its acquisition in July 2011 and are on track to deliver our forecast synergies.
Summary of results
Profit before tax, before highlighted items, was up 52% in the six month period to £2.2 million (2010: £1.4 million). Profit before tax was £0.3 million (2010: £0.8 million). Total turnover, including the results of Continuum, which we acquired in July this year, was up 16.3% to £44.9 million. Excluding the results of Continuum, like for like turnover was up 11.9% to £43.2 million.
All four publishing divisions increased their turnover year on year for the six month period. Increased licensing and rights activity in the period contributed to a 32% increase in other income to £2.9 million, demonstrating the value inherent in our content.
The profit margin, before investment income, finance costs, tax and highlighted items, increased from 3.4% to 4.5% year on year. Within this the gross margin went down slightly year on year, but marketing and distribution and administrative costs (excluding highlighted items) were all a lower percentage of revenue year on year.
Highlighted items of £1.8 million (2010: £0.6 million) include £0.7 million (2010: £0.6 million) for the recurring amortisation of intangible assets, £0.4 million (2010: nil) of costs for the relocation of our group headquarters and £0.4 million (2010: nil) of restructuring costs relating to the strategic global reorganisation of the Group.
The effective rate of tax for the period was 32% (2010: 31%).
Adjusted earnings per share, which exclude highlighted items, were up by 31% year on year to 2.07 pence (2010: 1.58 pence). Basic earnings per share for the period were 0.30 pence (2010: 0.76 pence).
Cash reduced by £27.4 million in the six month period to 31 August 2011, mainly reflecting a net cash outflow related to the acquisition of Continuum of £19.2 million, capital expenditure of £2.8 million, payment of a dividend of £2.8 million and an outflow of £2.0 million to acquire Bloomsbury Publishing shares for the Employee Benefit Trust.
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