TIDMBMY
RNS Number : 5050A
Bloomsbury Publishing PLC
02 June 2021
BLOOMSBURY PUBLISHING PLC
("Bloomsbury" or "the Company")
Audited Preliminary Results for the year ended 28 February
2021
Excellent revenue and profit performance
Third profit upgrade
Special dividend declared
Bloomsbury, the leading independent publisher, today announces
audited results for the year ended 28 February 2021, ahead of
expectations.
Commenting on the results, Nigel Newton, Chief Executive, said
:
"The popularity of reading has been a ray of sunshine in an
otherwise very dark year. In an outstanding year for Bloomsbury, we
delivered record results with sales up 14% to GBP185.1 million
compared to the industry which was up 2%(1) . Our profit before tax
and highlighted items(4) of GBP19.2 million showed an increase of
22% over the prior year. These results are ahead of expectations
and represent our third upgrade this year. These performances
demonstrate the strength and resilience of our strategy of
publishing for both the general and academic market.
Our Consumer division delivered a stellar performance, with
profit before tax and highlighted items(4) up by 61% to GBP14.2
million, including excellent revenue growth of 22% across the Adult
and Children's divisions. Our diverse Consumer portfolio included
backlist titles which really struck a chord with readers throughout
the pandemic on themes such as humanity, social inclusion,
escapism, fantasy, cookery and baking.
In our Non-Consumer division, Bloomsbury Digital Resources
achieved phenomenal growth of 49%, with GBP12.4 million revenue.
Our academic digital growth also significantly outperformed the UK
market, with our digital resource strategy, conceived six years
ago, ahead of and benefitting from the structural shift to online
learning.
In light of our strong financial position and cash generation,
and the importance of delivering attractive shareholder returns in
accordance with our dividend policy, the Board proposes an increase
of 10% to our final dividend(2) . The Board greatly appreciates the
support of our shareholders during such unprecedented circumstances
last year, and we are also proposing a special dividend of 9.78
pence per share.
Since the year end, we have achieved another key step in the
delivery of our long term growth strategy expanding our
Non-Consumer business, with the acquisition of the Red Globe Press
list. Acquiring these complementary lists accelerates our digital
growth and our significant presence in humanities and social
sciences academic publishing.
Considering the ongoing momentum and strength of our business,
Bloomsbury expects revenue to be ahead and profit to be comfortably
ahead of market expectations for the year ended 28 February 2022(3)
.
I would like to express my thanks to our staff, authors,
illustrators, printers, distributors and suppliers for their
outstanding work and profound resilience over the last year. Our
ability to adapt to the rapidly changing conditions, together with
the strength of our strategy supported by our strong financial
position, has enabled Bloomsbury to emerge even stronger from this
crisis and deliver this excellent performance."
Financial Highlights
-- Revenues increased by 14% to GBP185.1 million (2019/20: GBP162.8 million)
-- Profit before taxation and highlighted items(4) grew by 22%
to GBP19.2 million, up from GBP15.7 million in 2019/20
-- Profit before taxation grew by 31% to GBP17.3 million (2019/20: GBP13.2 million)
-- Diluted earnings per share, excluding highlighted items(4) ,
grew by 15% to 18.68 pence (2019/20: 16.23 pence)(5)
-- Diluted earnings per share grew by 25% to 16.71 pence (2019/20: 13.40 pence)(5)
-- Net cash of GBP54.5 million at 28 February 2021, up 74% (2020: GBP31.3 million)
-- Cash conversion of 142% (2019/20: 111%)
-- Final dividend of 7.58 pence per share (2020: bonus issue
with a value equivalent to 6.89 pence per share(2) )
-- Special dividend of 9.78 pence per share
Operational Highlights
Consumer Division
-- Outstanding Consumer revenue growth of 22% to GBP118.3 million (2019/20: GBP96.8 million)
-- Consumer profit before taxation and highlighted items(4)
increased by 61% to GBP14.2 million (2019/20: GBP8.9 million)
-- Very strong Adult Trade performance, with revenue up 17% to
GBP43.7 million (2019/20: GBP37.4 million) and profit before
taxation and highlighted items(4) up 145% to GBP3.9 million
(2019/20: GBP1.6 million)
-- Excellent Children's Trade performance, with revenue growth
of 26% to GBP74.6 million (2019/20: GBP59.4 million) and profit
before taxation and highlighted items(3) up 42% to GBP10.4 million
(2019/20: GBP7.3 million)
-- Sales of Sarah J. Maas' titles grew by 129% and Harry Potter sales grew by 7%
-- Appointment of Ian Hudson as Managing Director, Consumer
Publishing, and Paul Baggaley, Editor-in-Chief, Adult Consumer
Publishing; an industry leading team to drive our ambitious growth
plans
Non-Consumer Division
-- Resilient Non-Consumer performance, with revenue growth of 1%
to GBP66.8 million (2019/20: GBP66.0 million)
-- Non-Consumer profit before taxation and highlighted items(4)
of GBP5.4 million (2019/20: GBP6.7 million)
-- Bloomsbury Digital Resources ("BDR") revenues growth of 49%
to GBP12.4 million (2019/20: GBP8.3 million) and profit of GBP2.9
million (2019/20: GBP0.7 million)
-- Digital format sales now comprise 33% of Non-Consumer revenues, a CAGR of 31% over four years
-- Good Academic & Professional performance, with revenue
growth of 3% to GBP44.3 million (2019/20: GBP43.1 million) and
profit before taxation and highlighted items(4) of GBP4.3 million
(2019/20: GBP4.8 million)
-- Acquisition of Red Globe Press' assets in April 2021 for
GBP3.7 million, accelerating our digital growth and our significant
presence in humanities and social sciences academic publishing
-- Voted Academic Publisher of the Year at the 2021 British Book Awards
-- BDR partnerships with Taylor & Francis and Human Kinetics
launched and new partnerships with Yale University Press, Liverpool
University Press and the Stratford Festival
Notes
(1) Publishers Association: 2020 UK market up 2% year-on-year.
(2) 2019/20: bonus issue in lieu of, and with a value equivalent
to, proposed final dividend of 6.89 pence per share.
(3) The Board considers current consensus market expectation for
the year ending 28 February 2022 to be revenue of GBP177.5 million
and profit before taxation and highlighted items of GBP17.4
million.
(4) Highlighted items comprise amortisation of acquired
intangible assets, legal and other professional costs relating to
ongoing and completed acquisitions and restructuring costs, and a
grant under the US Government Paycheck Protection Program.
(5) Restatement of earnings per share due to bonus issue of shares in the year.
For further information, please contact:
Bloomsbury Publishing Plc
Nigel Newton, Chief Executive nigel.newton@bloomsbury.com
Penny Scott-Bayfield, Group Finance penny.scott-bayfield@bloomsbury.com
Director
Hudson Sandler +44 (0) 20 7796 4133
Dan de Belder / Rebekah Chapman bloomsbury@hudsonsandler.com
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
The popularity of reading has been a ray of sunshine in an
otherwise very dark year. The year ended 28 February 2021 saw an
outstanding performance by Bloomsbury, with 14% revenue growth to
GBP185.1 million (2019/20: GBP162.8 million) and a 22% increase in
profit before taxation and highlighted items to GBP19.2 million
(2019/20: GBP15.7 million). Profit before taxation increased by 31%
to GBP17.3 million (2019/20: GBP13.2 million).
The strength of demand for our titles, in print, e-book and
audio, and the surge in sales of our digital products, demonstrate
the strength of our long-term growth strategy.
Our Bloomsbury Digital Resources ("BDR") strategy positioned us
well to deliver further growth from the accelerated shift to
digital learning, with a 73% increase in the number of Academic
customers during the year. BDR delivered 49% revenue growth
year-on-year and generated profit of GBP2.9 million (2019/20:
GBP0.7 million).
The highlighted items of GBP1.8 million (2019/20: GBP2.5
million) consist of the amortisation of acquired intangible assets
of GBP1.8 million (2019/20: GBP1.7 million), one-off legal and
other professional fees relating to the acquisitions and
restructuring costs of GBP1.3 million (2019/20: GBP0.6 million) and
a one-off US government grant under the Paycheck Protection Program
of (GBP1.3 million). The effective rate of tax for the year was 21%
(2019/20: 21%). The adjusted effective rate of tax, excluding
highlighted items, was 20% (2019/20: 19%). Diluted earnings per
share, excluding highlighted items, grew 15% to 18.68 pence
(2019/20: 16.23 pence). Including highlighted items, profit before
tax was GBP17.3 million (2019/20: GBP13.2 million) and diluted
earnings per share grew 25% to 16.71 pence (2019/20: 13.40
pence).
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 six years. To
achieve this, we are focused on a number of long-term strategic
objectives, which include:
-- Non-Consumer
o Grow Bloomsbury's portfolio in Non-Consumer publishing.
Non-Consumer publishing is characterised by higher, more
predictable margins and greater digital and global opportunities.
2020/21: delivered 52% growth in Non-Consumer digital.
o Achieve BDR revenue of GBP15 million and profit of GBP5
million for 2021/22. 2020/21: delivered GBP12.4 million revenue, up
49%, and profit of GBP2.9 million, up GBP2.2 million.
-- Consumer
o Discover, nurture, champion and retain high-quality authors
and illustrators, while looking at new ways to leverage existing
title rights. 2020/21: Bestsellers included Why I'm No Longer
Talking to White People About Race by Reni Eddo-Lodge, Such a Fun
Age by Kiley Reid, Piranesi by Susanna Clarke and Humankind by
Rutger Bregman.
o Grow our key authors through effective publishing across all
formats alongside strategic sales and marketing. 2020/21: 129%
growth in sales of Sarah J. Maas title sales, with both new titles:
Crescent City: House of Earth and Blood and A Court of Silver
Flames reaching Number One on the New York Times bestseller
list.
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: 7% growth in Harry Potter title sales, 23 years
after first publication.
-- International Expansion
o Expand international revenues and reduce reliance on UK
market: 2020/21: increased overseas revenues to 64% of Group
revenue; 81% of Academic BDR sales are international.
-- Employee Experience and Engagement
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
promotes diversity, nurtures talent, stimulates creativity and
collaboration, supports well-being and is respectful of
difference.
o 2020/21: Expanded our Diversity and Inclusion ("D&I")
Working Groups, supported by our nine employee-led network
groups;
o Appointed Baroness Young to the Board to help Bloomsbury
improve our D&I practices;
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
intend to monitor our publishing so we can ensure our list balance
is representative of the societies we live in, and partner with
organisations that can help us achieve these aims;
o Continued focus on employee engagement and development
initiatives, including Employee Voice Meetings, monthly online Town
Halls and our apprenticeship and mentoring schemes; and
o Increased flexible working to support employees.
-- Sustainability
o Continue to switch to renewable energy across all sites, with
the goal of Net Zero emissions in line with the Paris
Agreement.
o 2020/2021: Measured scope 1 and 2 emissions, our operational
footprint, and set reduction targets in line with the Paris
Agreement. Measured scope 3 emissions for the first time and set
targets; we are committed to working with our suppliers to make
further significant emissions reductions across our supply chain.
Our scope 1, 2 and 3 targets have been submitted to the SBTi for
validation;
o Bloomsbury was recognised by the Financial Times' 'Europe's
Climate Leaders 2021' - the 300 companies that achieved the
greatest reduction in their greenhouse gas emissions intensity
between 2014 and 2019, aligned with revenue growth;
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 Consumer division generated outstanding revenue
growth of 22% to GBP118.3 million (2019/20: GBP96.8 million).
Profit before taxation and highlighted items increased by 61% to
GBP14.2 million (2019/20: GBP8.9 million). Profit before taxation
increased to GBP14.2 million (2019/20: GBP8.8 million). The
excellent performance was from both the Adult and Children's
divisions, across front and backlist titles.
Bloomsbury's Consumer growth outperformed the rest of the UK
market, in both print and digital formats; the Publishers
Association reported Consumer growth of 7% for 2020.
Adult Trade
The Adult division achieved very strong growth with a 17%
increase in revenue to GBP43.7 million (2019/20: GBP37.4 million)
and profit before taxation and highlighted items increasing by 145%
to GBP3.9 million (2019/20: GBP1.6 million). This was driven by
bestsellers from our front and backlist.
Bestsellers in the year from our backlist included the Sunday
Times and New York Times bestseller Why I'm No Longer Talking to
White People About Race by Reni Eddo-Lodge, the Sunday Times
bestsellers Such a Fun Age by Kiley Reid, Lose Weight and Get Fit
by Tom Kerridge and Three Women by Lisa Taddeo. New York Times
bestsellers included White Rage by Carol Anderson and Women Rowing
North by Mary Pipher. Further backlist bestsellers included
Dishoom: From Bombay with Love by Shamil Thakrar, Kavi Thakrar and
Naved Nasir and The Song of Achilles by Madeline Miller.
Frontlist success came from new titles including Humankind by
Rutger Bregman, the New York Times bestsellers Piranesi by Susanna
Clarke and Outlawed by Anna North , The Book of Trespass by Nick
Hayes, We Are Bellingcat by Eliot Higgins and The Mask Falling by
Samantha Shannon.
Children's Trade
Children's sales also delivered excellent growth, with a 26%
increase to GBP74.6 million (2019/20: GBP59.4 million). Profit
before taxation and highlighted items increased by 42% to GBP10.4
million (2019/20: GBP7.3 million). Sales of the Harry Potter titles
were 7% ahead of last year. Harry Potter and the Philosopher's
Stone was the third bestselling children's book of the year on UK
Nielsen Bookscan. Harry Potter and the Philosopher's Stone, Harry
Potter and the Chamber of Secrets and Harry Potter and the
Half-Blood Prince were all Sunday Times bestsellers in the year,
showing the reach of this classic series, twenty three years after
it first began.
Sarah J. Maas' sales grew by 129% compared to last year, with
two new New York Times and Sunday Times bestselling titles
published during the year: Crescent City: House of Earth and Blood,
in March 2020, and A Court of Silver Flames, in February 2021, and
strong backlist sales. Other highlights on the Children's list
included the third in Brigid Kemmerer's Cursebreaker trilogy, A Vow
So Bold and Deadly, Skysteppers by Katherine Rundell, Cinderella is
Dead by Kaylynn Bayron, The World Made a Rainbow by Michelle
Robinson, illustrated by Emily Hamilton, and Ways to Make Sunshine
and Love is a Revolution by Renee Watson.
Non-Consumer Division
The Non-Consumer division consists of Academic &
Professional, including Bloomsbury Digital Resources, and Special
Interest. Revenues in the division increased by 1% to GBP66.8
million (2019/20: GBP66.0 million). Profit before taxation and
highlighted items for the Non-Consumer division was GBP5.4 million
(2019/20: GBP6.7 million). Profit before taxation was GBP3.6
million (2019/20: GBP5.0 million).
Academic & Professional revenues increased by 3% to GBP44.3
million (2019/20: GBP43.1 million) and profit before taxation and
highlighted items was GBP4.3 million (2019/20: GBP4.8 million). The
accelerated demand for digital products and swift adoption of
digital learning by academic institutions helped drive excellent
performance of BDR and accelerated demand for e-books, which offset
reduced print sales. Our Academic digital growth outperformed the
rest of the UK market, with our BDR digital strategy, conceived six
years ago, ahead of and benefitting from the market changes. Our
achievements were recognised at the 2021 British Book Awards,
winning Academic Publisher of the Year.
We are focused on delivering further digital growth from
accelerating our established and most successful digital products,
including the award-winning Drama Online, building partnerships and
launching new products. Key achievements during the year,
demonstrating the opportunities to further leverage our digital
platforms and content, were:
o 73% increase in the number of Academic customers during the
year ;
o Maintaining our customer renewal rate above 90%;
o Growth of Bloomsbury Collections to over 13,000 front and
backlist Bloomsbury Academic titles; over 40% higher than last
year. These include titles from our acquisitions of Oberon and
Zed;
o Launch of the new content partnerships with Taylor &
Francis and Human Kinetics;
o New partnerships with Yale University Press, Liverpool
University Press and the Stratford Festival.
Special Interest revenue was GBP22.5 million (2019/20: GBP22.9
million), and profit before taxation and highlighted items was
GBP1.1 million (2019/20: GBP1.9 million), with resilient demand for
wildlife titles, Wisden and Osprey games during the year.
Acquisitions
In March 2020, we acquired certain assets of Zed Books Limited,
the academic and non-fiction publisher. The consideration was
GBP1.7 million, of which GBP1.5 million was satisfied in cash on
completion and during the year and the remainder paid in March
2021. Zed has been integrated into Bloomsbury's Academic &
Professional division.
During the year we also integrated Oberon Books Ltd ("Oberon"),
acquired in December 2019, into the Academic & Professional
division, and included its key titles in Drama Online.
Since the year end, in April 2021, we have achieved another key
step in the delivery of our strategic growth strategy and driving
our Non-Consumer business, with the acquisition of certain assets
of Red Globe Press ("RGP"), the academic imprint, from Springer
Nature Group as previously announced. The consideration was GBP3.7
million, GBP1.8 million of which was satisfied in cash on
completion in June 2021. The acquired RGP titles are a good
strategic fit, strengthen Bloomsbury's existing academic
publishing, and establish new areas of academic publishing in
Business and Management, Study Skills and Psychology. RGP's three
digital products will be migrated to BDR's own platform and its
content added to Bloomsbury Collections.
Bloomsbury has a strong and successful track record in strategic
acquisitions, with 17 acquisitions completed since 2008. We are
actively targeting further acquisition opportunities in line with
our long-term growth strategy.
Cash and financing
Bloomsbury's cash generation was strong with cash at the year
end of GBP54.5 million, up GBP23.1 million, and cash conversion of
142% (2019/20: 111%). During the year we invested GBP1.1 million of
capital expenditure in BDR and GBP1.5 million of the GBP1.7 million
cash consideration for the acquisition of Zed Books Limited.
The Group has an unsecured revolving credit facility with Lloyds
Bank Plc. The facility comprises a committed revolving loan
facility of GBP8 million in the first half and an additional GBP4
million in the second half, totalling GBP12 million, to match
Bloomsbury's cashflow cycle, and an uncommitted incremental term
loan facility of up to GBP6 million. At 28 February 2021, the Group
had no draw down (2020: GBPnil) of this facility.
Dividend
The Group has a progressive dividend policy aiming to keep
dividend earnings cover in excess of two times, supported by strong
cash cover. The Board is recommending a final dividend of 7.58
pence per share, totalling GBP6.2 million. Together with the
interim dividend, this makes a total dividend for the year ended 28
February 2021 of 8.86 pence per share, an 8% increase on the 8.17
pence value of the dividend for the year ended 29 February
2020.
The Board greatly appreciates the support of our shareholders
during such unprecedented circumstances last year and we are also
proposing a special dividend of 9.78 pence per share, totalling
GBP8.0 million.
Subject to Shareholder approval at our AGM on 21 July 2021, the
final and special dividend will be paid on 27 August 2021 to
Shareholders on the register on the record date of 30 July
2021.
Including the proposed 2020/21 final dividend, over the past ten
years, the dividend has increased at a compound annual growth rate
of 6.5%.
Social Initiatives
As part of Bloomsbury's ongoing commitment to our wider
communities, and in addition to our focus on promoting literature,
literacy and education, we actively support numerous organisations
worldwide. We published The Book of Hopes: Words and Picture to
Comfort, Inspire and Entertain Children, edited by Katherine
Rundell, with contributions from more than 110 children's writers
and illustrators. A donation from the sale of each book is made to
NHS Charities Together. We also published The World Made a Rainbow,
by Michelle Robinson and Emily Hamilton, with a donation from the
sale of each book being made to Save the Children. In addition to
our donation to Black Lives Matter, in partnership with Waterstones
in July 2020, we donated 10% of profits of sales of Reni
Eddo-Lodge's Why I'm No Longer Talking to White People About Race
to BTEG and Inquest.
We also supported the Society of Authors emergency appeal fund
and The Trussell Trust's network of foodbanks. These initiatives
are in addition to our three-year partnership with the National
Literacy Trust, which included our financial support for their
emergency appeal to help support children, parents, teachers and
schools through the pandemic, our educational resources and
activity ideas made available through their website and donation of
over 60,000 books. 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.
Coronavirus Victims
We also share the sad news of the loss of two colleagues in
India from coronavirus. Yogesh Sharma, Senior Vice President for
Sales and Marketing, who passed away in May, was a founding member
of Bloomsbury India and his contribution to the growth of the
company was vital. Aravind Murthy, Bloomsbury's India's Regional
Sales Manager-South, passed away in April. Aravind was an amazing
sales manager, very dependable, hardworking, focused, and
passionate about his work. We will miss them deeply and send our
sympathy and support to the families of Aravind and Yogesh and to
our colleagues in India.
Board Changes
As announced in December 2020, Baroness Lola Young of Hornsey
joined the Board as a Non-Executive Director on 1 January 2021.
Baroness Young also became a member of the Nomination
Committee.
In addition, John Warren will step down from the Board at the
conclusion of Bloomsbury's 2021 AGM taking place on 21 July 2021.
John joined the Board in 2015 and is the Senior Independent
Director and Chair of the Audit Committee. It is intended that John
will be succeeded by Leslie-Ann Reed as Chair of the Audit
Committee and Senior Independent Director.
Sir Richard Lambert, Chairman of Bloomsbury, said: "On behalf of
myself, the Chief Executive, Nigel Newton, and the Board, I would
like to thank John for his tremendous contribution to Bloomsbury
during his six-year tenure. John has been a wonderful colleague -
rigorous, shrewd and good humoured. He will be much missed."
Future Publishing
Our BDR strategic initiatives include the launch of a new Drama
Online collection from the market-leading US drama publisher
Theatre Communications Group, expanding Bloomsbury Collections to
include more than 7,000 Red Globe Press titles and the migration of
Red Globe Press' three digital products to BDR's own platform.
Our strong Consumer publishing list for 2021/22 includes Tom
Kerridge's Outdoor Cooking: The Ultimate Modern Barbeque Bible,
Lost Focus by Johan Hari, Gino's Italian Family Adventure by Gino
D'Acampo and Animal by Lisa Taddeo.
We will be publishing the Sarah J. Maas' second Crescent City
title, House of Sky and Breath, in January 2022. Our Children's
frontlist for 2021/22 includes Harry Potter - A Magical Year: The
Illustrations of Jim Kay, a beautiful new gift book with a moment
for every day of the year, Defy the Night , the much-anticipated
new series from Brigid Kemmerer, and Renée Watson 's new book Ways
To Grow Love.
Outlook
The start of our 2021/22 has seen a continuation of strong
trading. Whilst the Board remains mindful of the external
environment, the outstanding performance in 2020/21 increases our
confidence in the strength of the business and long-term
strategy.
At this early stage of the new financial year, and considering
the ongoing momentum and strength of our business, Bloomsbury
expects revenue to be ahead and profit to be comfortably ahead of
market expectations for the year ended 28 February 2022.*
* The Board considers current consensus market expectation for
the year ending 28 February 2022 to be revenue of GBP177.5 million
and profit before taxation and highlighted items of GBP17.4
million.
Audited Consolidated Income Statement
FOR THE YEARED 28 FEBRUARY 2021
Year ended Year ended
28 February 29 February
2021 2020
Notes GBP'000 GBP'000
---------------------------------------- ------ ------------ ------------
Revenue 2 185,136 162,772
Cost of sales (85,533) (74,978)
---------------------------------------- ------ ------------ ------------
Gross profit 99,603 87,794
Marketing and distribution costs (23,393) (21,373)
Administrative expenses (58,267) (52,949)
Share of result of joint venture (110) -
---------------------------------------- ------ ------------ ------------
Operating profit before highlighted
items 19,637 15,947
Highlighted items 3 (1,804) (2,475)
---------------------------------------- ------ ------------ ------------
Operating profit 17,833 13,472
Finance income 120 270
Finance costs (604) (513)
---------------------------------------- ------ ------------ ------------
Profit before taxation and highlighted
items 19,153 15,704
Highlighted items 3 (1,804) (2,475)
---------------------------------------- ------ ------------ ------------
Profit before taxation 17,349 13,229
Taxation 4 (3,652) (2,728)
---------------------------------------- ------ ------------ ------------
Profit for the year attributable
to owners of the Company 13,697 10,501
---------------------------------------- ------ ------------ ------------
Earnings per share attributable to
owners of the Company
Basic earnings per share 6 16.94p 13.58p
Diluted earnings per share 6 16.71p 13.40p
---------------------------------------- ------ ------------ ------------
Audited Consolidated Statement of Comprehensive Income
FOR THE YEARED 28 FEBRUARY 2021
Year ended Year ended
28 February 29 February
2021 2020
GBP'000 GBP'000
------------------------------------------------------ ------------ ------------
Profit for the year 13,697 10,501
Other comprehensive income
Items that may be reclassified to the income
statement:
Exchange differences on translating foreign
operations (2,877) 856
Items that may not be reclassified to the
income statement:
Remeasurements on the defined benefit pension
scheme 89 (115)
------------------------------------------------------ ------------ ------------
Other comprehensive income for the year net
of tax (2,788) 741
Total comprehensive income for the year attributable
to the owners of the Company 10,909 11,242
------------------------------------------------------ ------------ ------------
Items in the statement above are disclosed net of tax.
Audited Consolidated Statement of Financial Position
AS AT 28 FEBRUARY 2021
28 February 29 February
2021 2020
Notes GBP'000 GBP'000
---------------------------------------- ------ ------------ ------------
Assets
Goodwill 44,688 45,030
Other intangible assets 21,337 21,630
Investments 162 516
Property, plant and equipment 1,846 1,914
Right-of-use assets 11,433 13,343
Deferred tax assets 3,904 2,756
Trade and other receivables 7 1,005 1,237
---------------------------------------- ------ ------------ ------------
Total non-current assets 84,375 86,426
---------------------------------------- ------ ------------ ------------
Inventories 26,774 27,164
Trade and other receivables 7 93,542 84,805
Cash and cash equivalents 54,466 31,345
---------------------------------------- ------ ------------ ------------
Total current assets 174,782 143,314
---------------------------------------- ------ ------------ ------------
Total assets 259,157 229,740
---------------------------------------- ------ ------------ ------------
Liabilities
Retirement benefit obligations 14 185
Deferred tax liabilities 2,386 2,347
Lease liabilities 11,135 12,945
Provisions 232 182
---------------------------------------- ------ ------------ ------------
Total non-current liabilities 13,767 15,659
---------------------------------------- ------ ------------ ------------
Trade and other liabilities 74,341 61,844
Lease liabilities 1,808 1,585
Current tax liabilities 456 328
Provisions 536 651
Total current liabilities 77,141 64,408
---------------------------------------- ------ ------------ ------------
Total liabilities 90,908 80,067
---------------------------------------- ------ ------------ ------------
Net assets 168,249 149,673
---------------------------------------- ------ ------------ ------------
Equity
Share capital 1,020 942
Share premium 47,319 39,388
Translation reserve 6,630 9,507
Other reserves 9,623 7,778
Retained earnings 103,657 92,058
---------------------------------------- ------ ------------ ------------
Total equity attributable to owners of
the Company 168,249 149,673
---------------------------------------- ------ ------------ ------------
Audited Consolidated Statement of Changes in Equity
AS AT 28 FEBRUARY 2021
Capital Share-based Own shares
Share Share Translation Merger redemption payment held by Retained Total
capital premium reserve reserve reserve reserve EBT earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- -------- -------- ----------- --------- ----------- ----------- ---------- --------- --------
At 28 February
2019 942 39,388 8,651 1,803 22 6,095 (802) 87,639 143,738
--------------- -------- -------- ----------- --------- ----------- ----------- ---------- --------- --------
Profit for the
year - - - - - - - 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
year - - 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
--------------- -------- -------- ----------- --------- ----------- ----------- ---------- --------- --------
Profit for the
year - - - - - - - 13,697 13,697
Other
comprehensive
income
Exchange
differences
on translating
foreign
operations - - (2,877) - - - - - (2,877)
Remeasurements
on the defined
benefit
pension
scheme - - - - - - - 89 89
--------------- -------- -------- ----------- --------- ----------- ----------- ---------- --------- --------
Total
comprehensive
income for the
year - - (2,877) - - - - 13,786 10,909
Transactions
with
owners
Issue of share
capital 47 7,931 - - - - - - 7,978
Bonus issue of
share capital 31 - - - - - - (31) -
Dividends to
equity
holders of the
Company
Purchase of
shares
by the - - - - - - - (1,045) (1,045)
Employee
Benefit Trust - - - - - - (674) - (674)
Share options
exercised - - - - - - 1,298 (1,114) 184
Deferred tax on
share-based
payment
transactions - - - - - - - 3 3
Share-based
payment
transactions - - - - - 1,221 - - 1,221
--------------- -------- -------- ----------- --------- ----------- ----------- ---------- --------- --------
Total
transactions
with owners of
the Company 78 7,931 - - - 1,221 624 (2,187) 7,667
--------------- -------- -------- ----------- --------- ----------- ----------- ---------- --------- --------
At 28 February
2021 1,020 47,319 6,630 1,803 22 7,945 (147) 103,657 168,249
--------------- -------- -------- ----------- --------- ----------- ----------- ---------- --------- --------
Audited Consolidated Statement of Cash Flows
FOR THE YEARED 28 FEBRUARY 2021
Year ended Year ended
28 February 29 February
2021 2020
GBP'000 GBP'000
-------------------------------------------------- ------------ ------------
Cash flows from operating activities
Profit for the year 13,697 10,501
Adjustments for:
Depreciation of property, plant and equipment 473 502
Depreciation of right-of-use assets 1,806 1,775
Amortisation of intangible assets 5,485 4,301
Impairment of investments 300 -
Finance income (120) (270)
Finance costs 604 513
Share of loss of Joint Venture 110 7
Share-based payment charges 1,416 761
Tax expense 3,652 2,728
-------------------------------------------------- ------------ ------------
27,423 20,818
Increase in inventories (357) (620)
Increase in trade and other receivables (11,281) (4,385)
Increase in trade and other liabilities 13,789 2,489
-------------------------------------------------- ------------ ------------
Cash generated from operating activities 29,574 18,302
Income taxes paid (4,406) (1,706)
-------------------------------------------------- ------------ ------------
Net cash generated from operating activities 25,168 16,596
-------------------------------------------------- ------------ ------------
Cash flows from investing activities
Purchase of property, plant and equipment (422) (294)
Purchase of intangible assets (3,804) (3,137)
Purchase of business, net of cash acquired - (310)
Purchase of rights to assets (1,547) (1,213)
Purchase of joint ventures
Interest received (56) (223)
--------------------------------------------------
110 254
-------------------------------------------------- ------------ ------------
Net cash used in investing activities (5,719) (4,923)
-------------------------------------------------- ------------ ------------
Cash flows from financing activities
Equity dividends paid (1,045) (6,009)
Purchase of shares by the Employee Benefit Trust (674) -
Proceeds from exercise of share options 184 27
Proceeds from share issue 7,978 -
Repayment of lease liabilities (1,451) (1,531)
Lease liability interest paid (442) (492)
Interest paid (149) (3)
-------------------------------------------------- ------------ ------------
Net cash from/ (used) in financing activities 4,401 (8,008)
-------------------------------------------------- ------------ ------------
Net increase in cash and cash equivalents 23,850 3,665
Cash and cash equivalents at beginning of year 31,345 27,580
Exchange (loss)/gain on cash and cash equivalents (729) 100
-------------------------------------------------- ------------ ------------
Cash and cash equivalents at end of year 54,466 31,345
-------------------------------------------------- ------------ ------------
NOTES
1. Accounting policies
a) Basis of Preparation
The financial information set out above does not constitute the
company's statutory accounts for the years ended 28 February 2021
or 29 February 2020 but is derived from those accounts. Statutory
accounts for 2020 have been delivered to the registrar of
companies, and those for 2021 will be delivered in due course. The
auditor has reported on those accounts; their reports were (i)
unqualified, (ii) did not include a reference to any matters to
which the auditor drew attention by way of emphasis without
qualifying their report and (iii) did not contain a statement under
section 498 (2) or (3) of the Companies Act 2006.
The Group financial statements were prepared in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006 and the Group financial
statements were also prepared in accordance with international
financial reporting standards ("IFRS") adopted pursuant to
Regulation (EC) No 1606/2002 as it applies in the European Union.
Except as described below, the accounting policies applied in the
year ended 28 February 2021 are consistent with those applied in
the financial statements for year ended 29 February 2020 with the
exception of a number of new accounting standards and amendments
which have not had a material impact on the Group's results.
b) Going concern
The Directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence at least 12
months from the date of this preliminary announcement, being the
period of the detailed going concern assessment reviewed by the
Board, and therefore continue to adopt the going concern basis of
accounting in preparing the condensed consolidated financial
statements.
The Board has modelled a severe but plausible downside scenario,
including the impact of coronavirus. This assumes:
-- Print revenues are reduced by 25% - 50% during 2021/22, with recovery during 2022/23;
-- Downside assumptions about extended debtor days during
2021/22, with recovery during 2022/23;
-- Cash preservation measures implemented and variable costs reduced.
Under this severe but plausible downside scenario, the Group has
sufficient liquidity to be able to manage these downside
assumptions.
The Group has an unsecured revolving credit facility with Lloyds
Bank Plc. The facility comprises a committed revolving loan
facility of GBP8 million in the first half and an additional GBP4
million in the second half, totalling GBP12 million, to match
Bloomsbury's cashflow cycle, and an uncommitted incremental term
loan facility of up to GBP6 million. The facilities are subject to
two covenants, being a maximum net debt to EBITDA ratio of 2.5x and
a minimum interest cover covenant of 4x. The agreement is to May
2022.
At 28 February 2021, the Group had no draw down of this
facility.
2. Revenue and segmental analysis
The Group is comprised of two worldwide publishing divisions:
Consumer and Non-Consumer, reflecting the core customers for our
different operations. The Consumer division is split into two
operating segments: Children's Trade and Adult Trade, and
Non-Consumer is split into 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
Year ended 28 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
February 2021 GBP'000 GBP'000 GBP'000
---------------- ----------- --------- --------- ------------- ---------- ------------- ------------ ---------
External
revenue 74,599 43,761 118,360 44,307 22,469 66,776 - 185,136
Cost of sales (37,128) (20,812) (57,940) (16,767) (10,826) (27,593) - (85,533)
---------------- ----------- --------- --------- ------------- ---------- ------------ ---------
Gross profit 37,471 22,949 60,420 27,540 11,643 39,183 - 99,603
Marketing and
distribution
costs (9,386) (6,278) (15,664) (4,678) (3,051) (7,729) - (23,393)
---------------- ----------- --------- --------- ------------- ---------- ------------ ---------
Contribution
before
administrative
expenses 28,085 16,671 44,756 22,862 8,592 31,454 - 76,210
Administrative
expenses
excluding
highlighted
items (17,543) (12,706) (30,249) (18,494) (7,420) (25,914) (300) (56,463)
Share of result
of joint
venture - - - - - - (110) (110)
---------------- ----------- --------- --------- ------------- ---------- ------------ ---------
Operating
profit/(loss)
before
highlighted
items/ segment
results 10,542 3,965 14,507 4,368 1,172 5,540 (410) 19,637
Amortisation of
acquired
intangible
assets - (17) (17) (1,578) (214) (1,792) - (1,809)
Other
highlighted
items - - - - - - 5 5
---------------- ----------- --------- --------- ------------- ---------- ------------ ---------
Operating
profit/(loss) 10,542 3,948 14,490 2,790 958 3,748 (405) 17,833
Finance income - - - 51 - 51 69 120
Finance costs (161) (105) (266) (117) (59) (176) (162) (604)
---------------- ----------- --------- --------- ------------- ---------- ------------ ---------
Profit/(loss)
before
taxation
and
highlighted
items 10,381 3,860 14,241 4,302 1,113 5,415 (503) 19,153
Amortisation of
acquired
intangible
assets - (17) (17) (1,578) (214) (1,792) - (1,809)
Other
highlighted
items - - - - - - 5 5
---------------- ----------- --------- --------- ------------- ---------- ------------ ---------
Profit/(loss)
before
taxation 10,381 3,843 14,224 2,724 899 3,623 (498) 17,349
Taxation - - - - - - (3,652) (3,652)
---------------- ----------- --------- --------- ------------- ---------- ------------ ---------
Profit/(loss)
for the year 10,381 3,843 14,224 2,724 899 3,623 (4,150) 13,697
---------------- ----------- --------- --------- ------------- ---------- ------------- ------------ ---------
Operating
profit/(loss)
before
highlighted
items/ segment
results 10,542 3,965 14,507 4,368 1,172 5,540 (410) 19,637
Depreciation 912 528 1,440 556 283 839 - 2,279
Amortisation of
internally
generated
intangibles 446 383 829 2,586 261 2,847 - 3,676
---------------- ----------- --------- --------- ------------- ---------- ------------ ---------
EBITDA before
highlighted
items 11,900 4,876 16,776 7,510 1,716 9,226 (410) 25,592
---------------- ----------- --------- --------- ------------- ---------- ------------ ---------
Children's Adult Consumer Academic Special Non-Consumer Unallocated Total
Trade Trade & Interest
Professional
Year ended 29 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
February 2020 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 before
highlighted
items/ segment
results 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 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
---------------- ----------- --------- --------- ------------- ---------- ------------- ------------ ---------
Operating
profit before
highlighted
items/ segment
results 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
---------------- ----------- --------- --------- ------------- ---------- ------------ ---------
External revenue by source
United
Kingdom North America Australia India Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ -------- ------------- --------- -------- --------
Year ended 28 February
2021 117,429 53,872 11,084 2,751 185,136
------------------------ -------- ------------- --------- -------- --------
Year ended 29 February
2020 104,440 42,415 11,107 4,810 162,772
------------------------ -------- ------------- --------- -------- --------
During the year sales to one customer exceeded 10% of Group
revenue (2020: one customer). The value of these sales was
GBP68,597,000 (2020: GBP43,405,000).
External revenue by product type
Children's Adult Academic Special
Year ended 28 February Trade Trade Consumer & Professional Interest Non-Consumer Total
2021 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- ---------- -------- -------- --------------- --------- ------------ --------
Print 63,708 34,644 98,352 23,267 18,200 41,467 139,819
Digital 7,636 8,298 15,934 19,015 2,730 21,745 37,679
Rights and Services(1) 3,255 819 4,074 2,025 1,539 3,564 7,638
Total 74,599 43,761 118,360 44,307 22,469 66,776 185,136
----------------------- ---------- -------- -------- --------------- --------- ------------ --------
Children's Adult Academic Special
Year ended 29 February Trade Trade Consumer & Professional Interest Non-Consumer Total
2020 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- ---------- -------- -------- --------------- --------- ------------ --------
Print 52,646 29,460 82,106 28,438 18,571 47,009 129,115
Digital 3,029 6,772 9,801 12,099 2,235 14,334 24,135
Rights and Services(1) 3,679 1,184 4,863 2,586 2,073 4,659 9,522
Total 59,354 37,416 96,770 43,123 22,879 66,002 162,772
----------------------- ---------- -------- -------- --------------- --------- ------------ --------
(1) Rights and Services revenue includes revenue from copyright
and trademark licences, management contracts, advertising and
publishing services.
Total assets
28 February 29 February
2021 2020
GBP'000 GBP'000
------------------------- ------------ ------------
Children's Trade 10,361 11,016
Adult Trade 7,495 6,747
Academic & Professional 58,527 59,128
Special Interest 12,773 13,492
Unallocated 170,001 139,357
Total assets 259,157 229,740
------------------------- ------------ ------------
Unallocated primarily represents centrally held assets including
system development, property plant and equipment, right-of-use
assets, receivables and cash.
Analysis of non-current assets (excluding deferred tax assets)
by geographic location
28 February 29 February
2021 2020
GBP'000 GBP'000
------------------------------------- ----------- -----------
United Kingdom (country of domicile) 73,711 75,839
North America 6,633 7,638
Other 127 193
Total 80,471 83,670
------------------------------------- ----------- -----------
3. Highlighted items
Year ended Year ended
28 February 29 February
2021 2020
GBP'000 GBP'000
------------------------------------- ------------ ------------
Legal and other professional
fees 203 461
Coronavirus onerous costs - 180
Restructuring costs 1,076 98
Paycheck Protection Program (1,284) -
grant
Other highlighted items (5) 739
Amortisation of acquired intangible
assets 1,809 1,736
-------------------------------------- ------------ ------------
Total highlighted items 1,804 2,475
-------------------------------------- ------------ ------------
Highlighted items charged to operating profit comprise
significant non-cash charges and major one-off initiatives which
are highlighted in the income statement because, in the opinion of
the Directors, separate disclosure is helpful in understanding the
underlying performance and future profitability of the
business.
All highlighted items are included in administrative expenses in
the income statement.
For the year ended 28 February 2021, legal and other
professional fees of GBP203,000 were incurred as a result of the
Group's ongoing and completed acquisitions, including certain
assets of Red Globe Press and Zed Books Limited. Restructuring
costs primarily relate to restructuring in both divisions. The
Paycheck Protection Program grant was received from the US
Government's Small Business Administration.
For the year ended 29 February 2020 Legal and other professional
fees of GBP461,000 were incurred as a result of the Group's ongoing
and completed acquisitions, including those of Oberon Books Limited
and our joint venture, Beijing CYP & Gakken Education
Development Co., Ltd. Coronavirus onerous costs of GBP180,000 are
irrecoverable costs crystallised in the year associated with book
fairs and conferences that have been cancelled due to the
coronavirus. Restructuring costs relate to the acquisition of
Oberon Books Limited and I.B. Tauris & Co. Limited.
4. Taxation
Factors affecting tax charge for the year
The tax on the Group's profit before tax differs from the
standard rate of corporation tax in the United Kingdom of 19.00%
(2020: 19.00%). The reasons for this are explained below:
Year ended Year ended
28 February 29 February
2021 2020
GBP'000 % GBP'000 %
--------------------------------------------- -------- ------ ------------ ------
Profit before taxation 17,349 100.0 13,229 100.0
--------------------------------------------- -------- ------ ------------ ------
Profit on ordinary activities multiplied
by the standard rate of corporation
tax in the UK of 19.00% (2020: 19.00%) 3,296 19.0 2,514 19.0
Effects of:
Non-deductible revenue expenditure 80 0.5 153 1.1
Non-taxable income (131) (0.8) - -
Movement in unrecognised temporary
differences (52) (0.3) 47 0.4
Different rates of tax in foreign
jurisdictions 444 2.6 142 1.1
Tax losses 217 1.2 (124) (0.9)
Movement in deferred tax rate 132 0.8 - -
Adjustment to tax charge in respect
of prior years
Current tax 289 1.7 (33) (0.3)
Deferred tax (391) (2.3) (57) (0.4)
--------------------------------------------- -------- ------ ------------ ------
Tax charge for the year before disallowable
costs on highlighted items 3,884 22.4 2,642 20.0
Highlighted items:
Disallowable costs 38 0.2 86 0.6
Disallowable credits (270) (1.6) - -
--------------------------------------------- -------- ------ ------------ ------
Tax charge for the year 3,652 21.0 2,728 20.6
--------------------------------------------- -------- ------ ------------ ------
Different rates of tax in foreign jurisdictions is where we are
paying tax at higher rates in the US and Australia as well as
paying state taxes in the US.
Adjustments to prior periods primarily arise where an outcome is
obtained on certain tax matters which differs from expectations
held when the related provision was made. Where the outcome is more
favourable than the provision made, the difference is released,
lowering the current year tax charge. Where the outcome is less
favourable than our provision, an additional charge to current year
tax will occur.
The disallowable credits relate to the US Government Paycheck
Protection Program grant.
We are not aware of any significant unprovided exposures that
are considered likely to materialise.
5. Dividends
Year ended Year ended
28 February 29 February
2021 2020
GBP'000 GBP'000
----------------------------------------- ------------ ------------
Amounts paid in the year
Prior period final dividend per share
(2020: 6.75p) - 5,051
Interim 1.28p dividend per share (2020:
1.28p) 1,045 958
----------------------------------------- ------------ ------------
Total dividend payments in the year 1,045 6,009
----------------------------------------- ------------ ------------
Amounts arising in respect of the year
Interim 1.28p dividend per share for
the year (2020: 1.28p) 1,045 958
Proposed 7.58p final dividend per share
for the year (2020: nil) 6,182 -
Proposed 9.78p special dividend per
share for the year (2020: nil) 7,976 -
----------------------------------------- ------------ ------------
Total dividend 18 .64p per share for
the year (2020: 1.28p) 15,203 958
----------------------------------------- ------------ ------------
The Directors are recommending a final dividend of 7.58 pence
per share and a special dividend of 9.78 pence per share, which,
subject to Shareholder approval at the Annual General Meeting, will
be paid on 27 August 2021 to Shareholders on the register on the
record date of 30 July 2021.
For the year ended 29 February 2020, Bloomsbury made a bonus
issue to Shareholders in lieu of, and with a value equivalent to,
it's proposed final cash dividend of 6.89 pence per ordinary
share.
6. Earnings per share
The basic earnings per share for the year ended 28 February 2021
is calculated using a weighted average number of Ordinary shares in
issue of 80,867,938 (2020: 77,344,388) after deducting shares held
by the Employee Benefit Trust.
The diluted earnings per share is calculated by adjusting the
weighted average number of Ordinary shares to take account of all
dilutive potential Ordinary shares, which are in respect of
unexercised share options and the Performance Share Plan.
Year ended Year ended
28 February 29 February
2021 2020
Number
Number Restated*
Weighted average shares in issue 80,867,938 77,344,388
Dilution 1,082,577 1,026,939
------------------------------------- ------------ ------------
Diluted weighted average shares
in issue 81,950,515 78,371,327
------------------------------------- ------------ ------------
GBP'000 GBP'000
------------------------------------- ------------ ------------
Profit after tax attributable to
owners of the Company 13,697 10,501
Basic earnings per share 16.94p 13.58p
------------------------------------- ------------ ------------
Diluted earnings per share 16.71p 13.40p
------------------------------------- ------------ ------------
GBP'000 GBP'000
------------------------------------- ------------ ------------
Adjusted profit attributable to
owners of the Company 15,310 12,720
Adjusted basic earnings per share 18.93p 16.45p
------------------------------------- ------------ ------------
Adjusted diluted earnings per share 18.68p 16.23p
------------------------------------- ------------ ------------
Adjusted profit is derived as follows:
Year ended Year ended
28 February 29 February
2021 2020
GBP'000 GBP'000
Profit before taxation 17,349 13,229
Amortisation of acquired intangible
assets 1,809 1,736
Other highlighted items (5) 739
------------------------------------- ------------ ------------
Adjusted profit before tax 19,153 15,704
------------------------------------- ------------ ------------
Tax expense 3,652 2,728
Deferred tax movements on goodwill
and acquired intangible assets (41) 202
Tax expense on other highlighted
items 232 54
Adjusted tax 3,843 2,984
------------------------------------ ------ ------
Adjusted profit 15,310 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
28 February 29 February
2021 2020
GBP'000 GBP'000
Non-current
Accrued income 1,005 1,237
------------------------------------------- ------------ ------------
Current
Gross trade receivables 61,897 54,252
Less: loss allowance (3,230) (1,832)
------------------------------------------- ------------ ------------
Net trade receivables 58,667 52,420
Income tax recoverable 171 481
Other receivables 3,623 1,510
Prepayments 1,072 1,350
Accrued income 5,219 4,201
Royalty advances 24,790 24,843
Total current trade and other receivables 93,542 84,805
------------------------------------------- ------------ ------------
Total trade and other receivables 94,547 86,042
------------------------------------------- ------------ ------------
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 title advances which may not be fully earned down by
anticipated future sales. As at 28 February 2021, GBP7,786,000
(2020: GBP5,604,000) of royalty advances are expected to be
recovered after more than 12 months.
8. Restatement of earnings per share due to the bonus issue of
shares in the year
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.
Year ended
29 February Year ended
2020 29 February
Restated 2020
--------------------------------------------------------------------------------- ------------ ------------
Basic earnings per share 13.58p 14.03p
Diluted earnings per share 13.40p 13.84p
Adjusted basic earnings per share 16.45p 17.00p
Adjusted diluted earnings per share 16.23p 16.77p
Weighted average number of shares used in basic earnings per share calculation 77,344,388 74,830,714
Weighted average number of shares used in diluted earnings per share calculation 78,371,327 75,857,653
--------------------------------------------------------------------------------- ------------ ------------
9. Post Balance Sheet Events
On 23 April 2021, the Group announced the acquisition of certain
assets of Red Globe Press ("RGP"), the academic imprint, from
Macmillan Education Limited, a part of Springer Nature Group. The
transaction completed on 1 June 2021. The consideration is GBP3.7
million, of which GBP1.8 million was satisfied in cash at
completion and up to GBP1.9 million will be paid post-completion,
subject to assignment of certain contracts.
RGP specialises in high-quality publishing for Higher Education
students globally in Humanities and Social Sciences, Business and
Management, and Study Skills. RGP has a backlist of more than 7,000
titles and publishes more than 100 new titles per year, with
content including digital platforms, textbooks, research-driven
materials and general academic publishing. The acquired RGP titles
are a good strategic fit, strengthen Bloomsbury's existing academic
publishing, and establish new areas of academic publishing in
Business and Management, Study Skills and Psychology. RGP's three
digital products will be migrated to Bloomsbury Digital Resources'
own platform and its content added to Bloomsbury Collections. The
business will operate within Bloomsbury's Academic &
Professional division. There are opportunities for profit
enhancements following the integration of the business into
Bloomsbury.
The Group will take on inventories, advances and intangible
assets associated with taking on the titles, imprint and digital
products. No cash or trade receivables will transfer as part of the
acquisition. Given the timing of the acquisition in relation to the
date these accounts were signed no further information is available
for disclosure.
10. Annual General Meeting
The Annual General Meeting will be held on 21 July 2021.
11. Report and Accounts
Copies of the Annual Report and Financial Statements will be
circulated to shareholders in July and can be viewed after the
posting date on the Bloomsbury website.
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END
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