BLOOMSBURY PUBLISHING PLC
Unaudited Interim Results for the six months
ended 31 August 2024
Upgrading full year expectations after record
first half revenue and profit
Bloomsbury Publishing Plc (LSE: BMY, "Bloomsbury" or
"the Company"), the leading independent
publisher, today announces unaudited results for the six
months ended 31 August 2024.
Commenting on the
results, Nigel Newton, Chief Executive, said:
"Bloomsbury's strong results reflect implementation
of the recently announced Bloomsbury 2030 vision, focused on our
growth, portfolio and people. We have achieved our fifth
consecutive double-digit growth in the first half with revenue
growth of 32% to £179.8m, an increase of £43.1m, and
profit1 growth of 50% to £26.6m, an increase of £8.9m.
We have acquired Rowman & Littlefield, significantly
strengthening our academic portfolio. We have been awarded the
Great Place to Work CertificationTM recognising the
motivation and commitment of the people who work at Bloomsbury.
Bloomsbury was admitted to the FTSE 250 on 1 August. Finally, we
have risen to be the 39th largest publisher in the world
up from 51st in 2020 according to the recent Global
Publishing Ranking league table.
Consumer division revenue growth of 47% was driven
by the continued success of our fantasy fiction and a wide range of
bestsellers from cookery to novels. Bloomsbury was voted Children's
Publisher of the Year 2024 at the British Book Awards and our
international success was recognised by winning the British Book
Award for Export. In the Academic division, we achieved revenue
growth of 6%; the integration of Rowman & Littlefield is
progressing well, its sales are on target and Bloomsbury Digital
Resources ("BDR") grew by 2%. Rowman & Littlefield will
accelerate BDR's growth, as Bloomsbury applies its proven ability
to create digital revenues to Rowman & Littlefield's market
leading titles.
Following our strong performance
in the first half of this year and good trading in September and
October, we now expect trading for full year 2024/25 to be ahead of
the current consensus2 expectation."
Operational
Highlights
Consumer
Division
|
·
|
Consumer revenue up 47% to £131.3m (H1 2023/24:
£89.4m) and profit before taxation and highlighted
items3 up 91% to £21.4m (H1 2023/24: £11.2m)
|
|
·
|
Sarah J. Maas' sales grew by 102% (H1 2023/24:
79%)
|
|
·
|
J.K. Rowling's Harry Potter series continues to be a
bestseller 27 years after publication
|
|
·
|
Bloomsbury won Children's Publisher of the Year and
the Export Award at the British Book Awards
|
Non-Consumer
Division
|
·
|
Non-Consumer revenue growth of 3% to £48.5m (H1
2023/24: £47.3m) and profit before taxation and highlighted
items3 of £5.2m (H1 2023/24: £5.9m)
|
|
·
|
Academic & Professional revenue grew by 6% to
£38.5m (H1 2023/24: £36.4m) and profit before taxation and
highlighted items3 grew by 3% to £6.0m (H1 2023/24:
£5.9m) with margin of 16%
|
|
·
|
Academic & Professional organic revenue declined
14% mainly due to current UK and US budgetary pressures and the
accelerated shift from print to digital, against a background of
student numbers being projected to grow worldwide4
|
|
·
|
Rowman & Littlefield has traded in line with our
expectations, contributing £7.2m revenue
|
|
·
|
We have started to implement efficiencies in the
enlarged Academic division and the Rowman & Littlefield
integration is progressing well
|
|
·
|
BDR revenue increased organically to £13.7m (H1
2023/24: £13.3m) and remains on track for the target c.£41m revenue
in 2027/28
|
Financial
Highlights
|
First Half
Results
|
2024/25
|
2023/24
|
2022/23
|
'25 vs '24
|
'25 vs '23
|
|
Revenue
|
£179.8m
|
£136.7m
|
£122.9m
|
32%
|
46%
|
|
Organic revenue5
|
£172.6m
|
£136.7m
|
£122.9m
|
26%
|
40%
|
|
Profit before taxation and highlighted
items3
|
£26.6m
|
£17.7m
|
£15.9m
|
50%
|
67%
|
|
Profit before taxation
|
£22.1m
|
£14.0m
|
£12.9m
|
58%
|
71%
|
|
Adjusted diluted earnings per share
|
24.68p
|
17.47p
|
15.30p
|
41%
|
61%
|
|
Diluted earnings per share
|
20.10p
|
13.66p
|
12.30p
|
47%
|
63%
|
|
Net cash
|
£9.7m
|
£39.1m
|
£41.5m
|
(75)%
|
(77)%
|
|
Interim dividend per share
|
3.89p
|
3.70p
|
1.41p
|
5%
|
176%
|
Notes
|
1
|
Profit before taxation and
highlighted items.
|
|
2
|
The Board considers consensus
market expectations (before this publication) for the year ending
28 February 2025 to be revenue of £319.3m and profit before
taxation and highlighted items of £37.5m.
|
|
3
|
Highlighted items comprise
amortisation of acquired intangible assets and legal and other
professional costs relating to ongoing and completed acquisitions,
integration and restructuring costs.
|
|
4
|
World Bank estimates that globally
there will be 380m higher education students by 2030 up 73% from
220m in 2021.
|
|
5
|
Organic revenue for H1 2024/25 is
defined as total revenue of £179.8m less revenue attributable to
the acquisition of Rowman & Littlefield in the
period.
|
For further information, please contact:
Disclaimer
Certain statements, statistics and
projections in this announcement are or may be forward looking. By
their nature, forward‑looking statements involve a number of risks,
uncertainties or assumptions that may or may not occur and actual
results or events may differ materially from those expressed or
implied by the forward-looking statements. Accordingly, no
assurance can be given that any particular expectation will be met
and reliance should not be placed on any forward-looking statement.
Accordingly, forward-looking statements contained in this
announcement regarding past trends or activities should not be
taken as representation that such trends or activities will
continue in the future. You should not place undue reliance on
forward-looking statements, which are based on the knowledge and
information available only at the date of this announcement's
preparation. The Company does not undertake any obligation to
update or keep current the information contained in this
announcement, including any forward‑looking statements, or to
correct any inaccuracies which may become apparent and any opinions
expressed in it are subject to change without notice. References in
this announcement to other reports or materials, such as a website
address, have been provided to direct the reader to other sources
of information on Bloomsbury Publishing Plc which may be of
interest. Neither the content of Bloomsbury's website nor any
website accessible by hyperlinks from Bloomsbury's website nor any
additional materials contained or accessible thereon, are
incorporated in, or form part of, this announcement.
Chief Executive's
Statement
Overview
Bloomsbury achieved the highest
first half revenue and profit in its history in the six months to
31 August 2024. In May, we announced the Bloomsbury 2030 vision
which is focused on our growth, our portfolio and our people. We
are achieving our initial growth ambitions with the fifth
consecutive double-digit growth in revenue and profit in the first
half with revenue growth of 32% to £179.8m and profit growth of 50%
to £26.6m. In May, we significantly strengthened our academic
portfolio with the acquisition of Rowman & Littlefield. Turning
to our people, we are proud to have earned the coveted Great Place
to Work CertificationTM.
Within the Consumer division, the
continued success of our authors in the fantasy genre, particularly
Sarah J. Maas, alongside a wide range of other bestsellers,
combined to achieve Consumer revenue growth of 47%.
Academic & Professional
revenue increased by 6% and profit before taxation and highlighted
items grew by 3%. Within this, Rowman & Littlefield is
performing well and BDR increased sales organically by 2% to
£13.7m, on track to meet our recently increased target of c.£41m
BDR sales in 2027/28. While the academic market is experiencing
budget pressure in the UK and parts of the US, we are well
positioned given our long-term strategic focus on the shift from
print to digital with BDR and having further deepened and broadened
our subject areas with the acquisition of the 41,000 titles of
Rowman & Littlefield. Since completion, we have identified and
are implementing actions to enhance efficiencies in the newly
enlarged division. Our positioning and strategy underpin our
confidence in our academic division.
We are exploring the opportunity to monetise content
through AI deals in a responsible and ethical manner.
Bloomsbury welcomes the passing into law of the
Digital Markets Competition and Consumer Act 2024 to ensure a more
level playing field between online retailers and publishers and
authors than at present. With great power comes great
responsibility but a regulator is essential to enforce it.
We are progressing with key infrastructure changes
announced in the Bloomsbury 2030 vision to support growth and
profitability. We have previously announced projects to change our
UK distribution and warehousing arrangements and implement our new
global royalties system; we are also strengthening our sales
infrastructure with the creation of the US key account sales team
replacing a third party commission sales arrangement. These
initiatives are all on track.
We have successfully pursued our long-term strategy
of combining general and academic publishing and have diversified
across formats and territories. This strategy has created a
portfolio of portfolios - a model that continues to provide the
company with resilient growth and strong cash generation.
Group
Financials
Bloomsbury achieved revenue growth of 32%, of which
26% was organic, to £179.8m (H1 2023/24: £136.7m). Group profit
before taxation and highlighted items increased by 50% to £26.6m
(H1 2023/24: £17.7m). Profit before taxation increased by 58% to
£22.1m (H1 2023/24: £14.0m).
The acquisition of Rowman &
Littlefield, completed on 28 May 2024, contributed revenue of £7.2m
in the period, in line with our expectations. The acquisition drove
an increase in highlighted items to £4.5m (H1 2023/24: £3.7m),
consisting of the amortisation of acquired intangible assets of
£3.7m (H1 2023/24: £2.5m) and one-off legal and other professional
fees relating to acquisitions, integration and restructuring costs
of £0.8m (H1 2023/24: £1.2m).
The effective rate of tax for the
six months was 25% (H1 2023/24: 20%). The adjusted effective rate
of tax, excluding highlighted items, was 23% (H1 2023/24:
19%).
Diluted earnings per share,
excluding highlighted items, grew 41% to 24.68p (H1 2023/24:
17.47p). Including highlighted items, profit before tax
increased to £22.1m (H1 2023/24: £14.0m) and diluted earnings per
share grew 47% to 20.10p (H1 2023/24: 13.66p). The interim dividend
will increase by 5% increase to 3.89p per share (H1 2023/24:
3.70p).
Consumer
Division
The Consumer division, which consists of Adult,
Young Adult and Children's publishing, has had a stellar period,
generating revenue growth of 47% to £131.3m (H1 2023/24: £89.4m).
Profit before taxation and highlighted items increased by 91% to
£21.4m (H1 2023/24: £11.2m). Profit before taxation increased to
£21.2m (H1 2023/24: £11.0m).
The success of Sarah J. Maas continued with
her new book, Crescent City:
House of Flame and Shadow, which became a global No.1
bestseller on publication on 30 January 2024 and drove significant
sales in her 15 backlist titles. The momentum continued with Sarah
J. Maas' sales growth of 102% in the first half compared to the
first half of 2023/24. As previously
disclosed, we are not publishing a new frontlist Sarah J. Maas
title in the second half of this year, therefore our exceptional
Consumer performance in the second half of the last financial year
provides a tough comparative. Bloomsbury has six
future books under contract with Sarah J. Maas and will publish the
paperback of Crescent City: House
of Flame and Shadow in 2025/26.
Harry Potter title sales remain strong 27 years
after first publication, demonstrating the enduring appeal of this
classic series. The forthcoming Harry Potter TV series will
introduce the books to new readers: Warner Brothers Discovery has
announced that it is planning a seven season run of a new Harry
Potter streaming series, based on the original seven books, to be
broadcast on the Max streaming service.
The Three Body
Problem by Cixin Liu, first published sixteen years ago, has
seen strong sales in H1 2024/25, driven by the release of the
Netflix series in March. Second and third seasons have been
commissioned by Netflix, which we expect to drive further sales of
the trilogy.
Bloomsbury was awarded Children's Publisher of the
Year at the British Book Awards in May 2024. Katherine Rundell was
recognised as the 'pre-eminent children's author of her generation'
in being awarded Author of the Year and Book of the Year -
Children's Fiction for Impossible
Creatures. Bloomsbury author Atinuke was awarded Book of the
Year - Children's Non-Fiction for Brilliant Black British History and
Bloomsbury won The British Book Award for Export for the second
time in four years.
Commercial and literary recognition for our authors
continued, notably:
|
·
|
Sarah J. Maas titles were in bestseller lists
globally, including more than 200 appearances in the New York Times bestseller list.
Bloomsbury has sold more than 55m of Sarah's books in English
worldwide;
|
|
·
|
Anne Michaels' Held has been shortlisted for the
Booker Prize 2024, her Fugitive
Pieces having previously won the Orange Prize;
|
|
·
|
Katya Balen's Foxlight was awarded the 2024
Wainwright Prize for Children's Nature and Conservation
Writing;
|
|
·
|
Bloomsbury authors were medalists in this year's
Independent Publisher Book Awards: Jennifer Croft, Samantha
Shannon, Tan Twan Eng, Roz Chast, Rachel Louise Snyder, Justine
Pucella Winans, Gabi Burton and Trang Thanh Tran;
|
|
·
|
Hugh Fearnley-Whittingstall's How to Eat 30 Plants a Week was a No.
1 Sunday Times
bestseller;
|
|
·
|
Georgina Hayden's Greekish was a Sunday Times bestseller;
|
|
·
|
Poppy O'Toole's Poppy Cooks: The Actually Delicious Air Fryer
Cookbook was a Sunday
Times bestseller;
|
|
·
|
Ann Patchett's Tom
Lake was a Sunday
Times bestseller;
|
|
·
|
The Bunny Adventures Sunday Times bestselling series
continued with Martha Mumford and Cherie Zamazing's Hooray! It's our First Day;
|
|
·
|
In the US, Jesmyn Ward was presented the Preston
Award for Distinguished Service to the literary community, Trang
Thanh Tran won the 2023 Stoker Award for superior achievement in a
Young Adult Novel and Roz Chast was awarded the First Thurber Prize
for American Humor in Cartoon Art;
|
|
·
|
The US National Independent Bestseller list included
The Extinction of Irena
Rey by Jennifer Croft, A
Day of Fallen Night by Samantha Shannon and Welcome to the Hyunam-Dong Bookshop by
Hwang Bo-reum.
|
Non-Consumer
Division
The Non-Consumer division consists of Academic &
Professional, including Bloomsbury Digital Resources, and Special
Interest. Non-Consumer division revenue grew by 3% to £48.5m (H1
2023/24: £47.3m). Profit before taxation and highlighted items was
£5.2m (H1 2023/24: £5.9m). Profit before taxation was £1.7m (H1
2023/24: £3.6m).
Non-Consumer Division: Academic &
Professional
Academic & Professional revenue increased by 6%
to £38.5m (H1 2023/24: £36.4m), within which Rowman &
Littlefield contributed £7.2m revenue in the three months since
acquisition; organic revenue reduced by 14%. Profit before taxation
and highlighted items increased to £6.0m (H1 2023/24: £5.9m) with
margin of 16% (H1 2023/24: 16%). Profit before taxation was £2.7m
(H1 2023/24: £3.7m).
The Academic & Professional market is
experiencing budget pressures in the UK and parts of the US,
against a background of student numbers being projected to grow
worldwide.1 Budgetary pressure in UK higher education
institutions has been driven by a decrease in international
students. In the US, pressure on small to mid-sized institutions
has been driven by lower enrolment, to which contributing factors
are demographics, the strong jobs market and high cost of living.
However, demand from larger US institutions, which are major
customers of ours, remains strong. Further, the shift from print to
digital has continued to accelerate, resulting in lower sales of
print academic books.
We have built Bloomsbury
Digital Resources precisely to be ahead of this digital trend and
digital sales are now 52% of division
revenue. We have identified and are
implementing actions to protect profitability and margin across the
division, and we are adapting to the market with the broadening and
deepening of our offering through the integration of Rowman &
Littlefield's market leading titles and the expansion of subject
areas, particularly business and psychology.
BDR revenue grew 2% organically to £13.7m (H1
2023/24: £13.3m). Our BDR growth strategy continues to build high
margin, high quality, repeatable digital revenue from our market
leading Academic & Professional IP. The strategically important
acquisition of Rowman & Littlefield will accelerate BDR's
growth, as Bloomsbury applies its proven ability to create digital
revenues to Rowman & Littlefield's market leading titles,
expanding BDR products and driving innovation. We reiterate our
increased BDR target to reach c.£41m of revenue in 2027/28.
The integration of Rowman & Littlefield is
progressing well. We are utilising our extensive experience of
previous acquisitions in the integration of people and the IP, and
trading since the acquisition has been in line with our
expectations. Since completion, we have identified and are
implementing actions to enhance efficiencies in the newly enlarged
division.
Bloomsbury's Academic business combined with Rowman
& Littlefield publishes c.97,000 titles, cementing Bloomsbury's
strong market position in core subject areas and strengthening
areas where the Group is building a presence including business and
psychology. The acquisition enables us to focus the combined
Bloomsbury Academic business on deeper global market penetration,
subject area expansion and continued innovation in digital
scholarship and learning. The actions undertaken and strength of
our offering underpin our confidence in our Academic strategy.
Non-Consumer Division: Special Interest
Special Interest revenue was £10.0m (H1 2023/24:
£10.9m) and loss before taxation and highlighted items was £0.8m
(H1 2023/24: profit of £0.0m). This follows a strong performance
last year. The Sunday
Times Cycling Book of the Year 2024 was awarded to
1923: The Mystery of Lot 212 and
a Tour de France Obsession by Ned Boulting and The People's
Book Prize for Non-Fiction 2023/24 was awarded to Fearless: Adventures with Extraordinary
Women by Louise Minchin. The British Book Awards highly
commended Start-Up Century
by James Wise. The 2024 Wainwright Prize for Writing on
Conservation highly commended Chantal Lyons' Groundbreakers: The Return of Britain's Wild
Boar. Regular publications such as Wisden Cricketers' Almanack and
Reeds Nautical Almanac
remain loved by enthusiasts.
Acquisitions
The acquisition of Rowman & Littlefield's
academic publishing assets for $83m on 28 May 2024 has
significantly accelerated and strengthened Bloomsbury's academic
publishing in North America and will benefit BDR in particular.
Bloomsbury has a successful track record in
strategic acquisitions, with 34 completed. We will assess further
acquisition opportunities in line with our long-term growth
strategy, particularly within Academic.
Cash and Financing
Bloomsbury's cash generation was
strong with net cash as at 31 August 2024 of £9.7m (H1 2023/24:
£39.1m).
The Group has an unsecured term loan with Lloyds
Bank Plc, used for the acquisition of Rowman & Littlefield
alongside cash. This comprises a committed term loan of $37.5m and
runs for 3 years to May 2027.
The Group has an unsecured revolving credit facility
with Lloyds Bank Plc. The facility comprises a
committed revolving credit facility of £20m and an uncommitted
incremental term loan facility of up to £20m. The agreement runs to November 2026. At 31
August 2024, the Group had no draw down (H1 2023/24: £nil) of this
facility.
Both facilities are subject to two
covenants, being a maximum net debt to EBITDA ratio of 2.5x and a
minimum interest cover covenant of 4x.
Dividend
The interim dividend will increase
by 5% to 3.89p per share (H1 2023/24 3.70p). Bloomsbury has a
progressive dividend policy and reiterates its intention to
increase the dividend for the full year in-line with the Board's
expectations.2
The interim dividend will be paid on 29 November
2024 to Shareholders on the register on the record date of 1
November 2024.
Future
Publishing
Our strong list for H2 2024/25
includes:
|
·
|
Gillian Anderson's Want, published on 5 September 2024,
which was a No. 1 Sunday
Times bestseller;
|
|
·
|
Poppy O'Toole's Poppy Cooks' Actually Delicious Slow Cooker
Cookbook was published 12 September 2024 and also reached
No. 1 in the Sunday Times
bestseller list;
|
|
·
|
The Golden Road: How Ancient India Transformed the
World by William Dalrymple, the
co-host of the chart topping Empire podcast, was published on 5
September 2024 and became a Sunday Times bestseller;
|
|
·
|
Fred Sirieix's new title
Seriously British: A Frenchman's
love letter to Britain was published on 12 September
2024;
|
|
·
|
Dan Jones' Henry V waspublished on 12 September 2024,
which was a Sunday
Times bestseller;
|
|
·
|
Blind Spots by Marty Makary
published on 17 September 2024, which was a New York Times bestseller;
|
|
·
|
Christmas at Hogwarts: a new
Harry Potter illustrated gift book published on 15 October 2024,
with text drawn directly from Harry Potter and the Philosopher's
Stone;
|
|
·
|
Gino's Air Fryer Cook Book by
Gino D'Acampo published on 24 October 2024;
|
|
·
|
Ghosts Brought to Life: The Making of a Classic
published on 24 October 2024;
|
|
·
|
The official companion book to the
BBC TV series Gladiators
Ready!will be published on 7 November 2024; and
|
|
·
|
Samantha Shannon's The Dark Mirror, the fifth book in the
hugely successful Bone Season series, which will be published on 25
February 2025.
|
Current Trading
& Outlook
Following our strong performance
in the first half of this year and good trading in September and
October, we now expect trading for full year 2024/25 to be ahead of
the current consensus expectation.3
Note
1. World
Bank estimates that globally there will be 380m higher education
students by 2030 up 73% from 220m in 2021.
2. The
Board considers consensus market expectation for the year ending 28
February 2025 to be 5% dividend growth.
3. The
Board considers consensus market expectation (before this
publication) for the year ending 28 February 2025 to be revenue of
£319.3m and profit before taxation and highlighted items of
£37.5m.
Condensed Consolidated Interim Income
Statement
For the six months ended 31 August 2024
|
|
Notes
|
6 months
ended
31 August
2024
£'m
|
6 months
ended
31
August
2023
£'m
|
Year
ended
29
February
2024
£'m
|
|
|
|
|
|
|
|
Revenue
|
3
|
179.8
|
136.7
|
342.7
|
|
Cost of sales
|
|
(76.2)
|
(59.0)
|
(148.1)
|
|
Gross profit
|
|
103.6
|
77.7
|
194.6
|
|
Marketing and distribution
costs
|
|
(27.6)
|
(17.3)
|
(49.8)
|
|
Administrative expenses
|
|
(53.8)
|
(46.8)
|
(104.2)
|
|
Share of result of joint
venture
|
|
(0.1)
|
-
|
-
|
|
Operating
profit before highlighted items
|
|
26.6
|
17.3
|
47.9
|
|
Highlighted items
|
4
|
(4.5)
|
(3.7)
|
(7.3)
|
|
Operating profit
|
|
22.1
|
13.6
|
40.6
|
|
Finance income
|
|
0.7
|
0.6
|
1.3
|
|
Finance costs
|
|
(0.7)
|
(0.2)
|
(0.4)
|
|
Profit before taxation and highlighted
items
|
|
26.6
|
17.7
|
48.8
|
|
Highlighted items
|
4
|
(4.5)
|
(3.7)
|
(7.3)
|
|
Profit before taxation
|
3
|
22.1
|
14.0
|
41.5
|
|
Taxation
|
|
(5.5)
|
(2.8)
|
(9.2)
|
|
Profit for the period attributable to owners of the
Company
|
|
16.6
|
11.2
|
32.3
|
|
|
|
|
|
|
|
Earnings per share attributable to owners of the
Company
|
|
|
|
|
|
Basic earnings per
share
|
6
|
20.38p
|
13.81p
|
39.77p
|
|
Diluted earnings per
share
|
6
|
20.10p
|
13.66p
|
39.11p
|
The accompanying notes form an integral part
of this condensed consolidated interim financial report.
Condensed
Consolidated Interim Statement of Comprehensive
Income
For the six
months ended 31 August 2024
|
|
6 months
ended
31 August
2024
£'m
|
6
months
ended
31
August
2023
£'m
|
Year
ended
29
February
2024
£'m
|
|
Profit for the period
|
16.6
|
11.2
|
32.3
|
|
Other
comprehensive income
Items that
may be reclassified to the income statement:
|
|
|
|
|
Exchange differences on translating foreign
operations
|
(5.0)
|
(5.1)
|
(4.7)
|
|
|
|
|
|
|
Other comprehensive income for the
period net of tax
|
(5.0)
|
(5.1)
|
(4.7)
|
|
Total comprehensive income for the period attributable to
owners of the Company
|
11.6
|
6.1
|
27.6
|
|
|
|
|
|
Items in the statement above are disclosed net
of tax.
Condensed Consolidated Interim Statement of
Financial Position
At 31 August 2024
|
|
Notes
|
31 August
2024
£'m
|
31 August
2023
£'m
|
29
February
2024
£'m
|
|
Assets
|
|
|
|
|
|
Goodwill
|
|
75.0
|
48.2
|
48.3
|
|
Other intangible assets
|
|
62.5
|
35.1
|
32.0
|
|
Property, plant and equipment
|
|
1.9
|
2.2
|
2.2
|
|
Right-of-use assets
|
|
6.7
|
8.4
|
7.5
|
|
Deferred tax assets
|
|
15.2
|
11.2
|
13.7
|
|
Trade and other receivables
|
8
|
0.8
|
0.8
|
0.8
|
|
Total
non-current
assets
|
|
162.1
|
105.9
|
104.5
|
|
|
|
|
|
|
|
Inventories
|
|
48.8
|
40.4
|
36.6
|
|
Trade and other receivables
|
8
|
142.6
|
121.7
|
164.8
|
|
Cash and cash equivalents
|
|
38.1
|
39.1
|
65.8
|
|
Total current
assets
|
|
229.5
|
201.2
|
267.2
|
|
Total
assets
|
|
391.6
|
307.1
|
371.7
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Deferred tax liabilities
|
|
3.0
|
3.4
|
2.7
|
|
Lease liabilities
|
|
5.7
|
7.4
|
6.5
|
|
Borrowings
|
|
28.4
|
-
|
-
|
|
Provisions
|
|
0.6
|
0.3
|
0.5
|
|
Total
non-current liabilities
|
|
37.7
|
11.1
|
9.7
|
|
|
|
|
|
|
|
Trade and other liabilities
|
|
145.9
|
108.3
|
152.0
|
|
Lease liabilities
|
|
2.2
|
2.4
|
2.4
|
|
Current tax liabilities
|
|
2.0
|
0.9
|
4.0
|
|
Provisions
|
|
1.2
|
0.9
|
1.1
|
|
Total current
liabilities
|
|
151.3
|
112.5
|
159.5
|
|
Total
liabilities
|
|
189.0
|
123.6
|
169.2
|
|
Net
assets
|
|
202.6
|
183.5
|
202.5
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Share capital
|
|
1.0
|
1.0
|
1.0
|
|
Share premium
|
|
47.3
|
47.3
|
47.3
|
|
Translation reserve
|
|
5.9
|
10.5
|
10.9
|
|
Other reserves
|
|
12.9
|
10.0
|
12.8
|
|
Retained earnings
|
|
135.5
|
114.7
|
130.5
|
|
Total equity
attributable to owners of the Company
|
|
202.6
|
183.5
|
202.5
|
Notes to the Condensed Consolidated Interim Financial
Statements
1. Reporting entity
Bloomsbury Publishing Plc (the "Company") is a
Company domiciled in the United Kingdom. The condensed
consolidated interim financial statements of the Company as at and
for the six months ended 31 August 2024 comprise the Company and
its subsidiaries (together referred to as the "Group"). The
Group is primarily involved in the publication of books and other
related services.
2. Significant accounting
policies
a) Basis of
preparation
These condensed consolidated interim financial
statements have been prepared in accordance with International
Accounting Standard ("IAS") 34 'Interim Financial Reporting'. They
are unaudited and do not constitute statutory accounts. Selected
explanatory notes are included to explain events and transactions
that are significant to an understanding of the changes in
financial position and performance of the Group since the last
annual consolidated financial statements as at and for the year
ended 29 February 2024.
Except as described below, the condensed set
of financial statements have been prepared on a consistent basis
with the financial statements for the year ended 29 February 2024
and should be read in conjunction with the Annual Report 2024. The
annual consolidated financial statements of the Group are prepared
in accordance with UK-adopted International Accounting Standards
and the requirements of the Companies Act 2006. The 2024 Annual
Report refers to other new standards effective from 1 March
2024. None of these standards have had a material impact in
these financial statements.
The comparative financial information for the
year ended 29 February 2024 does not constitute statutory accounts
for that financial year. This information was extracted from the
statutory accounts for the year ended 29 February 2024, a copy of
which has been delivered to the Registrar of Companies. The
auditor's report on those accounts was unqualified and did not
include a reference to any matters to which the auditor drew
attention by way of emphasis of matter and did not contain a
statement under section 498(2) or (3) of the Companies Act
2006.
The condensed consolidated interim financial
statements were approved and authorised for issue by the Board of
Directors on 23 October 2024.
b) Going
concern
The Directors have a reasonable expectation
that the Group has adequate resources to continue in operational
existence for at least 12 months from the date of approval of the
condensed consolidated interim financial statements, being the
period of the detailed going concern assessment reviewed by the
Board, and therefore continue to adopt the going concern basis of
accounting in preparing the condensed consolidated interim
financial statements.
The Board has modelled a severe but plausible
downside scenario. This assumes:
· Print
revenues are reduced by 20%, with recovery during 2026/2027;
· Digital
revenues are reduced by 20%, with recovery during 2026/2027;
· Print
costs are increased by 2% from 2025/2026 and staff costs are
increased by 2% from 2025/2026;
·
Downside assumptions about extended debtor days, with recovery
during 2025/2026; and
· Cash
preservation measures implemented and variable costs reduced.
At 31 August 2024, the Group had available liquidity
of £58.1m, comprising central cash balances and its undrawn £20.0m
Revolving Credit Facility ("RCF"). The RCF agreement is to November
2026. Under the severe but plausible downside scenario, the Group
would maintain sufficient liquidity headroom even before modelling
the mitigating effect of actions that management would take in the
event that these downside risks were to crystallise.
The Group has an unsecured revolving credit facility
with Lloyds Bank Plc. At 31 August 2024, the Group had £nil draw
down (H1 2023/24: £nil) of this facility with £20.0 million of
undrawn borrowing facilities (H1 2023/24: £10.0 million) available.
The facility comprises a committed revolving credit facility of £20
million, and an uncommitted incremental term loan facility of up to
£20 million.
In May 2024, the Group entered into an
unsecured term loan facility with Lloyds Bank Plc. The facility
comprises a committed term loan facility of $37.5 million and runs
for 3 years to May 2027.
Both facilities are subject to two covenants,
being a maximum net debt to EBITDA ratio of 2.5x and a minimum
interest cover covenant of 4x.
c) Uses of
estimates and judgments
The preparation of condensed consolidated
interim financial statements requires management to make judgments,
estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets liabilities, income and
expenses. Actual results may differ from these estimates. Critical
judgments and areas where the use of estimates is significant are
set out in the 2024 Annual Report.
3. Segmental
analysis
The Group is comprised of two worldwide
publishing divisions: Consumer and Non-Consumer, reflecting the
core customers for our different operations. Previously, the
Consumer division was further split out into two operating
segments: Children's Trade and Adult Trade. During the period
the Children's Trade and Adult Trade operating results have been
combined into a single Consumer category for reporting regularly
reviewed by the Chief Operating Decision Maker. This change
reflects how the division is managed with the strategic focus on
the consumer market as a whole. Comparative information for
prior periods has been restated to reflect this change.
Non-Consumer continues to be split between two operating segments:
Academic & Professional and Special Interest.
These divisions are the basis on which the
Group primarily reports its segment information. Segments derive
their revenue from book publishing, sale of publishing and
distribution rights, management and other publishing services. The
analysis by segment is shown below:
|
|
|
|
|
|
|
|
Consumer
|
Academic &
Professional
|
Special
Interest
|
Non-Consumer
|
Unallocated
|
Total
|
|
|
Six months
ended 31 August 2024
|
£'m
|
£'m
|
£'m
|
£'m
|
£'m
|
£'m
|
|
|
External
revenue
|
131.3
|
38.5
|
10.0
|
48.5
|
-
|
179.8
|
|
|
Cost of sales
|
(60.5)
|
(10.6)
|
(5.1)
|
(15.7)
|
-
|
(76.2)
|
|
|
Gross
profit
|
70.8
|
27.9
|
4.9
|
32.8
|
-
|
103.6
|
|
|
Marketing and distribution costs
|
(22.8)
|
(3.1)
|
(1.7)
|
(4.8)
|
-
|
(27.6)
|
|
|
Contribution
before administrative expenses
|
48.0
|
24.8
|
3.2
|
28.0
|
-
|
76.0
|
|
|
Administrative expenses excluding highlighted
items
|
(26.5)
|
(18.8)
|
(4.0)
|
(22.8)
|
-
|
(49.3)
|
|
|
Share of joint venture result
|
-
|
-
|
-
|
-
|
(0.1)
|
(0.1)
|
|
|
Operating
profit/(loss) before highlighted items/ segment
results
|
21.5
|
6.0
|
(0.8)
|
5.2
|
(0.1)
|
26.6
|
|
|
Amortisation of acquired intangible
assets
|
(0.2)
|
(3.3)
|
(0.2)
|
(3.5)
|
-
|
(3.7)
|
|
|
Other highlighted items
|
-
|
-
|
-
|
-
|
(0.8)
|
(0.8)
|
|
|
Operating
profit/(loss)
|
21.3
|
2.7
|
(1.0)
|
1.7
|
(0.9)
|
22.1
|
|
|
Finance income
|
-
|
-
|
-
|
-
|
0.7
|
0.7
|
|
|
Finance costs
|
(0.1)
|
-
|
-
|
-
|
(0.6)
|
(0.7)
|
|
|
Profit/(loss)
before taxation and highlighted items
|
21.4
|
6.0
|
(0.8)
|
5.2
|
-
|
26.6
|
|
|
Amortisation of acquired intangible
assets
|
(0.2)
|
(3.3)
|
(0.2)
|
(3.5)
|
-
|
(3.7)
|
|
|
Other highlighted items
|
-
|
-
|
-
|
-
|
(0.8)
|
(0.8)
|
|
|
Profit/(loss)
before taxation
|
21.2
|
2.7
|
(1.0)
|
1.7
|
(0.8)
|
22.1
|
|
|
Taxation
|
-
|
-
|
-
|
-
|
(5.5)
|
(5.5)
|
|
|
Profit/(loss)
for the period
|
21.2
|
2.7
|
(1.0)
|
1.7
|
(6.3)
|
16.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
Academic &
Professional
|
Special
Interest
|
Non-Consumer
|
Unallocated
|
Total
|
|
|
Six months
ended 31 August 2023 (restated*)
|
£'m
|
£'m
|
£'m
|
£'m
|
£'m
|
£'m
|
|
|
External
revenue
|
89.4
|
36.4
|
10.9
|
47.3
|
-
|
136.7
|
|
|
Cost of sales
|
(42.2)
|
(11.2)
|
(5.6)
|
(16.8)
|
-
|
(59.0)
|
|
|
Gross
profit
|
47.2
|
25.2
|
5.3
|
30.5
|
-
|
77.7
|
|
|
Marketing and distribution costs
|
(13.1)
|
(2.8)
|
(1.4)
|
(4.2)
|
-
|
(17.3)
|
|
|
Contribution
before administrative expenses
|
34.1
|
22.4
|
3.9
|
26.3
|
-
|
60.4
|
|
|
Administrative expenses excluding highlighted
items
|
(22.8)
|
(16.4)
|
(3.9)
|
(20.3)
|
|
(43.1)
|
|
|
Share of joint venture result
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
Operating
profit before highlighted items/ segment results
|
11.3
|
6.0
|
-
|
6.0
|
-
|
17.3
|
|
|
Amortisation of acquired intangible
assets
|
(0.2)
|
(2.2)
|
(0.1)
|
(2.3)
|
-
|
(2.5)
|
|
|
Other highlighted items
|
-
|
-
|
-
|
-
|
(1.2)
|
(1.2)
|
|
|
Operating
profit/(loss)
|
11.1
|
3.8
|
(0.1)
|
3.7
|
(1.2)
|
13.6
|
|
|
Finance income
|
-
|
-
|
-
|
-
|
0.6
|
0.6
|
|
|
Finance costs
|
(0.1)
|
(0.1)
|
-
|
(0.1)
|
-
|
(0.2)
|
|
|
Profit/(loss)
before taxation and highlighted items
|
11.2
|
5.9
|
-
|
5.9
|
0.6
|
17.7
|
|
|
Amortisation of acquired intangible
assets
|
(0.2)
|
(2.2)
|
(0.1)
|
(2.3)
|
-
|
(2.5)
|
|
|
Other highlighted items
|
-
|
-
|
-
|
-
|
(1.2)
|
(1.2)
|
|
|
Profit/(loss)
before taxation
|
11.0
|
3.7
|
(0.1)
|
3.6
|
(0.6)
|
14.0
|
|
|
Taxation
|
-
|
-
|
-
|
-
|
(2.8)
|
(2.8)
|
|
|
Profit/(loss)
for the period
|
11.0
|
3.7
|
(0.1)
|
3.6
|
(3.4)
|
11.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
Academic &
Professional
|
Special
Interest
|
Non-Consumer
|
Unallocated
|
Total
|
|
|
Year ended 29
February 2024 (restated*)
|
£'m
|
£'m
|
£'m
|
£'m
|
£'m
|
£'m
|
|
|
External
revenue
|
249.2
|
70.5
|
23.0
|
93.5
|
-
|
342.7
|
|
|
Cost of sales
|
(115.3)
|
(22.0)
|
(10.8)
|
(32.8)
|
-
|
(148.1)
|
|
|
Gross
profit
|
133.9
|
48.5
|
12.2
|
60.7
|
-
|
194.6
|
|
|
Marketing and distribution costs
|
(40.6)
|
(5.9)
|
(3.3)
|
(9.2)
|
-
|
(49.8)
|
|
|
Contribution
before administrative expenses
|
93.3
|
42.6
|
8.9
|
51.5
|
-
|
144.8
|
|
|
Administrative expenses excluding highlighted
items
|
(55.3)
|
(33.2)
|
(8.4)
|
(41.6)
|
-
|
(96.9)
|
|
|
Share of joint venture result
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
Operating
profit before highlighted items/ segment results
|
38.0
|
9.4
|
0.5
|
9.9
|
-
|
47.9
|
|
|
Amortisation of acquired intangible
assets
Other highlighted items
|
(0.4)
-
|
(4.4)
-
|
(0.1)
-
|
(4.5)
-
|
-
(2.4)
|
(4.9)
(2.4)
|
|
|
Operating
profit/(loss)
|
37.6
|
5.0
|
0.4
|
5.4
|
(2.4)
|
40.6
|
|
|
Finance income
|
-
|
-
|
-
|
-
|
1.3
|
1.3
|
|
|
Finance costs
|
(0.2)
|
(0.1)
|
-
|
(0.1)
|
(0.1)
|
(0.4)
|
|
|
Profit before
taxation and highlighted items
|
37.8
|
9.3
|
0.5
|
9.8
|
1.2
|
48.8
|
|
|
Amortisation of acquired intangible
assets
|
(0.4)
|
(4.4)
|
(0.1)
|
(4.5)
|
-
|
(4.9)
|
|
|
Other highlighted items
|
-
|
-
|
-
|
-
|
(2.4)
|
(2.4)
|
|
|
Profit/(loss)
before taxation
|
37.4
|
4.9
|
0.4
|
5.3
|
(1.2)
|
41.5
|
|
|
Taxation
|
-
|
-
|
-
|
-
|
(9.2)
|
(9.2)
|
|
|
Profit/(loss)
for the year
|
37.4
|
4.9
|
0.4
|
5.3
|
(10.4)
|
32.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
Academic &
Professional
|
Special
Interest
|
Non-Consumer
|
Unallocated
|
Total
|
|
Six months
ended 31 August 2024
|
£'m
|
£'m
|
£'m
|
£'m
|
£'m
|
£'m
|
|
Operating
profit/(loss) before highlighted items/segment results
|
21.5
|
6.0
|
(0.8)
|
5.2
|
(0.1)
|
26.6
|
|
Depreciation
|
1.1
|
0.4
|
0.2
|
0.6
|
-
|
1.7
|
|
Amortisation of internally generated
intangibles
|
0.7
|
1.1
|
0.2
|
1.3
|
-
|
2.0
|
|
EBITDA before
highlighted items
|
23.3
|
7.5
|
(0.4)
|
7.1
|
(0.1)
|
30.3
|
|
|
Consumer
|
Academic &
Professional
|
Special
Interest
|
Non-Consumer
|
Unallocated
|
Total
|
|
Six months
ended 31 August 2023 (restated*)
|
£'m
|
£'m
|
£'m
|
£'m
|
£'m
|
£'m
|
|
Operating
profit before highlighted items/segment results
|
11.3
|
6.0
|
-
|
6.0
|
-
|
17.3
|
|
Depreciation
|
0.9
|
0.4
|
0.1
|
0.5
|
-
|
1.4
|
|
Amortisation of internally generated
intangibles
|
0.6
|
1.5
|
0.2
|
1.7
|
-
|
2.3
|
|
EBITDA before
highlighted items
|
12.8
|
7.9
|
0.3
|
8.2
|
-
|
21.0
|
|
|
Consumer
|
Academic &
Professional
|
Special
Interest
|
Non-Consumer
|
Unallocated
|
Total
|
|
Year ended 29
February 2024 (restated*)
|
£'m
|
£'m
|
£'m
|
£'m
|
£'m
|
£'m
|
|
Operating profit
before highlighted items/segment results
|
38.0
|
9.4
|
0.5
|
9.9
|
-
|
47.9
|
|
Depreciation
|
1.8
|
0.8
|
0.3
|
1.1
|
-
|
2.9
|
|
Amortisation of internally generated
intangibles
|
1.2
|
3.2
|
0.4
|
3.6
|
-
|
4.8
|
|
EBITDA before
highlighted items
|
41.0
|
13.4
|
1.2
|
14.6
|
-
|
55.6
|
External revenue by
product type
|
|
Six months
ended
31 August
2024
£'m
|
Six months
ended
31 August
2023
£'m
|
Year
ended
29 February
2024
£'m
|
|
Print
|
124.4
|
92.7
|
246.2
|
|
Digital
|
50.8
|
38.7
|
85.8
|
|
Rights and services
|
4.6
|
5.3
|
10.7
|
|
Total
|
179.8
|
136.7
|
342.7
|
Rights and services revenue includes revenue
from copyright and trademark licences, management contracts,
advertising and publishing services.
|
Total assets
(restated*)
|
31 August
2024
£'m
|
31 August
2023
£'m
|
29 February
2024
£'m
|
|
Consumer
|
40.9
|
34.9
|
29.3
|
|
Academic & Professional
|
130.0
|
72.3
|
71.2
|
|
Special Interest
|
12.2
|
12.7
|
13.0
|
|
Unallocated
|
208.5
|
187.2
|
258.2
|
|
Total
assets
|
391.6
|
307.1
|
371.7
|
Unallocated primarily represents centrally
held assets including system development, property, plant and
equipment, right-of-use assets, receivables and cash.
* Restated to show the Consumer division as
one operating segment.
4. Highlighted items
|
|
Six months ended
31 August
2024
£'m
|
Six months
ended
31 August
2023
£'m
|
Year
ended
29
February
2024
£'m
|
|
|
|
|
|
|
Legal and other professional fees
|
0.7
|
0.1
|
0.7
|
|
Integration and restructuring costs
|
0.1
|
1.1
|
1.7
|
|
Other
highlighted items
|
0.8
|
1.2
|
2.4
|
|
Amortisation of acquired intangible
assets
|
3.7
|
2.5
|
4.9
|
|
Total
highlighted items
|
4.5
|
3.7
|
7.3
|
Highlighted items charged to
operating profit comprise significant non-cash charges and major
one-off initiatives, which are highlighted in the income statement
because, in the opinion of the Directors, separate disclosure is
helpful in understanding the underlying performance and future
profitability of the business.
For the six months
ended 31 August 2024, legal and other professional fees of £0.7m
were incurred as a result of the Rowman & Littlefield
acquisition. Integration and
restructuring costs of £0.1m were incurred as a result of the
integration of the Red Globe Press and ABC-CLIO, LLC
acquisitions.
For the six months
ended 31 August 2023, legal and other professional fees of £0.1m
were incurred as a result of acquisitions including the ABC-CLIO,
LLC acquisition. Integration
and restructuring costs of £1.1m were incurred as a result of the
integration of the ABC-Clio, LLC acquisition and
restructuring.
For the year ended 29 February
2024, legal and other professional fees of £0.7m were incurred as a
result of the Group's completed acquisitions and the ongoing Rowman
& Littlefield acquisition. Integration and restructuring
costs primarily relate to the integration of the ABC-CLIO, LLC and
Head of Zeus Limited acquisitions and restructuring.
5. Dividends
|
|
Six months
ended
|
Six
months ended
|
Year
ended
|
|
|
31 August
|
31
August
|
29
February
|
|
|
2024
|
2023
|
2024
|
|
|
£'m
|
£'m
|
£'m
|
|
Amounts paid in the
period
|
|
|
|
|
Prior period final dividend
|
9.0
|
8.3
|
8.3
|
|
Interim dividend
|
-
|
-
|
3.0
|
|
Total dividend
payments in the period
|
9.0
|
8.3
|
11.3
|
|
Amounts arising in respect of the period
|
|
|
|
|
Interim dividend for the
period
|
3.2
|
3.0
|
3.0
|
|
Final dividend for the
year
|
-
|
-
|
9.0
|
|
Total dividend for the period
|
3.2
|
3.0
|
12.0
|
The proposed interim dividend of 3.89 pence
per ordinary share will be paid to the equity Shareholders on 29
November 2024 to Shareholders registered at close of business on 1
November 2024.
6. Earnings per share
The basic earnings per share for the six
months ended 31 August 2024 is calculated using a weighted average
number of Ordinary Shares in issue of 81,404,081 (31 August 2023: 81,058,723 and 29 February 2024: 81,212,654)
after deducting shares held by the Employee Benefit
Trust.
The diluted earnings per share is calculated
by adjusting the weighted average number of Ordinary Shares to take
account of all dilutive potential Ordinary Shares, which are in
respect of unexercised share options and the Performance share
Plan.
|
|
6 months
ended
|
6 months
ended
|
Year
ended
|
|
|
31 August
|
31
August
|
29
February
|
|
|
2024
|
2023
|
2024
|
|
|
Number
|
Number
|
Number
|
|
Weighted average shares in issue
|
81,404,081
|
81,058,723
|
81,212,654
|
|
Dilution
|
1,141,205
|
890,550
|
1,353,296
|
|
Diluted weighted average shares in issue
|
82,545,286
|
81,949,273
|
82,565,950
|
|
|
|
|
|
|
|
£'m
|
£'m
|
£'m
|
|
Profit after tax attributable to owners of the
Company
|
16.6
|
11.2
|
32.3
|
|
Basic earnings per share
|
20.38p
|
13.81p
|
39.77p
|
|
Diluted earnings per share
|
20.10p
|
13.66p
|
39.11p
|
|
|
|
|
|
|
Adjusted profit attributable to owners of the
Company
|
20.4
|
14.3
|
38.5
|
|
Adjusted basic earnings per share
|
25.02p
|
17.66p
|
47.40p
|
|
Adjusted diluted earnings per share
|
24.68p
|
17.47p
|
46.62p
|
Adjusted profit is derived as
follows:
|
Profit before tax
|
22.1
|
14.0
|
41.5
|
|
Amortisation of acquired intangible
assets
|
3.7
|
2.5
|
4.9
|
|
Other highlighted items
|
0.8
|
1.2
|
2.4
|
|
Adjusted profit before tax
|
26.6
|
17.7
|
48.8
|
|
Tax expense
|
5.5
|
2.8
|
9.2
|
|
Deferred tax movements on goodwill
and acquired intangible assets
|
0.6
|
0.4
|
0.7
|
|
Tax expense on other highlighted
items
|
0.1
|
0.2
|
0.4
|
|
Adjusted tax
|
6.2
|
3.4
|
10.3
|
|
Adjusted profit
|
20.4
|
14.3
|
38.5
|
The Group includes the benefit of tax
amortisation of intangible assets in the calculation of adjusted
tax as this more accurately aligns the adjusted tax charge with the
expected cash tax payments.
7. Business Combinations
On 28 May 2024, the Group acquired the
academic publishing business of the Rowman & Littlefield
Publishing Group. The transaction was structured as a sale
and purchase agreement for the acquisition of certain assets which
make up the academic publishing business of the Rowman &
Littlefield Publishing Group, Inc. ("Rowman &
Littlefield"). The consideration was $83 million (£65
million), of which $76 million (£60 million) has been satisfied in
cash on completion and up to $7 million (£5 million), held in
escrow, will be satisfied in cash post completion. The
consideration is subject to a working capital adjustment and
assignment of certain contracts.
Rowman & Littlefield is one of the most
respected independent publishers in the US Academic market. It is
the biggest acquisition by Bloomsbury to date, and significantly
accelerates and strengthens Bloomsbury's academic and digital
presence in North America. The business will operate in the
Academic & Professional division.
The table below summarises the provisional
fair value to the Group included in the consolidated statement of
financial position of the major categories of assets and
liabilities of Rowman & Littlefield at the date of
acquisition.
|
Net assets
acquired
|
Provisional fair value to the
Group
£'m
|
|
Assets
|
|
|
Other intangible assets
|
35.6
|
|
Total
non-current assets
|
35.6
|
|
|
|
|
Inventories
|
2.5
|
|
Trade and other receivables
|
0.5
|
|
Total current
assets
|
3.0
|
|
Total
assets
|
38.6
|
|
|
|
|
Liabilities
|
|
|
Trade and other liabilities
|
1.6
|
|
Total current
liabilities
|
1.6
|
|
Total
liabilities
|
1.6
|
|
Identifiable
net assets
|
37.0
|
|
|
|
|
Goodwill
|
27.8
|
|
Total
|
64.8
|
Identifiable intangible assets of
£35.6 million consist of publishing rights, imprints, ebook and POD
production files. The publishing rights have useful lives ranging
from 3 to 9 years, the imprints have a useful life of 10 years and
the ebook and print on demand ("POD") production files have a
useful life of 3 years. The goodwill arising of £27.8 million is
attributable to the expected profitability of the acquired business
and the synergies expected to arise after the
acquisition.
Transaction costs of £0.7 million
have been expensed in the period within administrative
expenses.
From 28 May 2024, revenue of £7.2
million and profit attributable to owners of the Company of £0.6
million have been included in the consolidated income statement for
the period ended 31 August 2024 in relation to Rowman
& Littlefield.
If the acquisition had occurred on
1 March 2024, the revenue and profit attributable to shareholders
of the combined entity for the current period would have been
£186.3 million and £16.6 million respectively.
8. Trade and other
receivables
|
|
31 August
|
31
August
|
29
February
|
|
|
2024
|
2023
|
2024
|
|
Non-current
|
£'m
|
£'m
|
£'m
|
|
Contract assets
|
0.8
|
0.8
|
0.8
|
|
|
|
|
|
|
Current
|
|
|
|
|
Gross trade receivables
|
92.4
|
77.2
|
115.6
|
|
Less: loss allowance
|
(3.1)
|
(3.5)
|
(3.6)
|
|
Net trade receivables
|
89.3
|
73.7
|
112.0
|
|
Income tax recoverable
|
2.3
|
1.2
|
2.9
|
|
Other receivables
|
3.0
|
2.9
|
3.5
|
|
Prepayments
|
3.9
|
2.4
|
3.1
|
|
Contract assets
|
8.0
|
6.1
|
8.2
|
|
Royalty advances
|
36.1
|
35.4
|
35.1
|
|
Total current trade and other
receivables
|
142.6
|
121.7
|
164.8
|
|
Total trade and other receivables
|
143.4
|
122.5
|
165.6
|
Non-current receivables relate to
accrued income on long-term rights deals.
Trade receivables principally
comprise amounts receivable from the sale of books due from
distributors. The majority of trade debtors are secured by credit
insurance and in certain territories by third party
distributors.
A provision is held against gross
advances payable in respect of published titles advances which may
not be fully earned down by anticipated future sales. As at 31
August 2024 £11.8 million (31 August 2023 £10.1 million and 29
February 2024 £9.0 million) of royalty advances relate to titles
expected to be published in more than 12 months' time.
9. Related parties
The Group has no related party
transactions in the current or prior periods other than key
management remuneration.
Responsibility
Statement of the Directors in Respect of the Interim Financial
Statements
|
Directors
|
|
|
John Bason
|
Independent Non-Executive Chairman
Chair of the Nominations Committee
|
|
Leslie-Ann Reed
|
Chair of the Remuneration Committee
|
|
|
Senior Independent Director
Chair of the Audit Committee
|
|
Baroness Lola Young of Hornsey
|
Independent Non-Executive Director
|
|
Nigel Newton
|
Chief Executive
|
|
Penny Scott-Bayfield
|
Group Finance Director
|
We confirm that to the best of our knowledge:
· The condensed
set of financial statements has been prepared in accordance with
UK-adopted International Accounting Standard 34 'Interim Financial
Reporting'.
· The
interim management report includes a fair review of the information
required by:
(a) DTR 4.2.7R of the Disclosure
Guidance and Transparency Rules, being an indication of important
events that have occurred during the first six months of the
financial year and their impact on the condensed set of financial
statements; and a description of the principal risks and
uncertainties for the remaining six months of the year; and
(b) DTR 4.2.8R of the Disclosure
Guidance and Transparency Rules, being related party transactions
that have taken place in the first six months of the current
financial year and that have materially affected the financial
position or performance of the entity during that period; and any
changes in the related party transactions described in the last
annual report that could do so.
By order of the Board
Nigel
Newton
Penny Scott-Bayfield
23 October 2024
