TIDMBMY
RNS Number : 4065N
Bloomsbury Publishing PLC
20 May 2020
BLOOMSBURY PUBLISHING PLC
("Bloomsbury" or "the Company")
Unaudited Preliminary Results for the year ended 29 February
2020
Strong Non-Consumer profit growth and delivery of diversified
strategy
Strengthened balance sheet and improved liquidity
Bloomsbury, the leading independent publisher, today announces
unaudited results for the year ended 29 February 2020, in line with
expectations.
Commenting on the results, Nigel Newton, Chief Executive, said
:
"I am pleased to report a year of further progress at Bloomsbury
resulting in 9% growth in profit before tax and highlighted items.
Our Non-Consumer division delivered an excellent result with profit
before tax and highlighted items up by 85% to GBP6.7 million,
including outstanding revenue growth of 32% from Bloomsbury Digital
Resources, which moved into profit this year, and the Adult
Consumer division achieved 77% growth in profit before tax and
highlighted items. These performances demonstrate the underlying
strength and resilience of our diversified, international
strategy.
Over the past five years, the successful execution of this
strategy has delivered Company revenue growth of 32% and profit
before tax and highlighted items growth of 21%, with digital
revenue as a proportion of total revenue increasing from 10% to
15%.
Since the year end, the coronavirus pandemic has led to
significant disruption across all our key markets. The impact may
be substantial. Orders for print books, which comprised 79% of the
Company's revenue for the year ended 29 February 2020, are being
affected in all our markets. Our UK, US and Australia warehouses
remain open and continue supply to customers. Our strategy of
expanding and leveraging our digital rights and products means that
we are well placed to benefit from increased demand for our digital
resources, audio and e-books .
There is no immediate certainty around the severity and duration
of the impact on our business and therefore the Board is unable to
provide guidance for the year ending 28 February 2021 at this
time.
In response to the pandemic, the Board has taken swift measures
to strengthen Bloomsbury's balance sheet and increase liquidity to
ensure we have sufficient working capital to weather the impact of
coronavirus and avoid damaging our business in the long-term.
I would like to thank our staff, authors, illustrators and
suppliers for their resilience and determination over a challenging
period. Their ability to adapt to the rapidly changing conditions,
together with the strength of our strategy supported by our solid
financial position, gives me confidence that Bloomsbury will emerge
stronger from this crisis."
Financial Highlights
-- Profit before taxation and highlighted items* grew by 9% to
GBP15.7 million, up from GBP14.4 million in 2018/19
-- Revenues increased to GBP162.8 million (2018/19: GBP162.7
million) despite the impact of coronavirus on our Chinese sales in
January and February
-- Profit before taxation grew by 10% to GBP13.2 million (2018/19: GBP12.0 million)
-- Diluted earnings per share, excluding highlighted items*,
grew by 12% to 16.77p (2018/19: 14.97p)
-- Diluted earnings per share grew by 13% to 13.84p (2018/19: 12.25p)
-- Net cash of GBP31.3 million at 29 February 2020, up 14% (2018: GBP27.6 million)
-- Cash conversion of 96% (2018/19: 128%), excluding the
acquisition of the rights of Oberon Books Ltd ("Oberon")
-- Subject to shareholder approval, proposed bonus issue, in
lieu of, and with a value equivalent to, proposed final dividend of
6.89p per share
Operational Highlights
Non-Consumer Division
-- Excellent Academic & Professional performance, with
profit before taxation and highlighted items* up by 58% to GBP4.8
million (2018/19: GBP3.0 million) and revenue up 4%
-- Non-Consumer profit before taxation and highlighted items* up
by 85% to GBP6.7 million and revenues grew by 4% to GBP66.0 million
(2018/19: GBP63.4 million)
-- Non-Consumer profit before taxation grew by 159% to GBP5.0 million (2018/19: GBP1.9 million)
-- Bloomsbury Digital Resources ("BDR") revenues up 32% to GBP8.3 million and moves into profit
-- Digital format sales now comprise 22% of Non-Consumer revenues, a CAGR of 18% over four years
-- Acquisition of Oberon's rights in December 2019 completed for
GBP1.2 million, strengthening our digital resources with its high
quality drama IP
-- BDR partnerships with Human Kinetics launched and Taylor
& Francis in development as well as the new National Theatre
collection included in Drama Online
Consumer Division
-- Profit before taxation and highlighted items* of GBP8.9 million (2018/19: GBP10.7 million)
-- Consumer revenue of GBP96.8 million (2018/19: GBP99.3 million)
-- Strong Adult Trade performance, with revenue up 12% to
GBP37.4 million (2018/19: GBP33.5 million) and profit before
taxation and highlighted items* of GBP1.6 million (2018/19: GBP0.9
million)
-- Children's Trade delivered profit before taxation and
highlighted items* of GBP7.3 million (2018/19: GBP9.8 million) and
revenue of GBP59.4 million (2018/19: GBP65.8 million)
-- Resilient sales of Harry Potter titles, in line with last year
-- Children's revenue affected by the timing of and fewer frontlist titles from Sarah J Maas
-- Excellent audio performance from our new Audio division, with
an expert team delivering 190% revenue growth by focusing on
production of key titles and delivering bestsellers
-- Appointment of Paul Baggaley as Editor-In-Chief of Bloomsbury
Adult, one of the most highly regarded figures in the industry who
joined us from Macmillan in March 2020
Notes
* Highlighted items comprise amortisation of acquired intangible
assets and legal, other professional costs and restructuring costs
relating to ongoing and completed acquisitions and one-off costs
relating to the coronavirus.
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 / Hattie Dreyfus bloomsbury@hudsonsandler.com
The information in this announcement has not been audited or
otherwise independently verified and no representation or warranty,
express or implied, is made as to, and no reliance should be placed
on, the fairness, accuracy, completeness or correctness of the
information or opinions contained herein. None of the Company or
any of its affiliates, advisors or representatives shall have any
liability whatsoever (in negligence or otherwise) for any loss
whatsoever arising from any use of this announcement, or its
contents, or otherwise arising in connection with this
announcement.
This announcement does not constitute or form part of any offer
or invitation to sell, or any solicitation of any offer to purchase
any shares in the Company, nor shall it or any part of it or the
fact of its distribution form the basis of, or be relied on in
connection with, any contract or commitment or investment decisions
relating thereto, nor does it constitute a recommendation regarding
the shares of the Company.
Certain statements, statistics and projections in this
announcement are or may be forward looking. By their nature,
forward--looking statements involve a number of risks,
uncertainties or assumptions that may or may not occur and actual
results or events may differ materially from those expressed or
implied by the forward-looking statements. Accordingly, no
assurance can be given that any particular expectation will be met
and reliance should not be placed on any forward-looking statement.
Accordingly, forward-looking statements contained in this
announcement regarding past trends or activities should not be
taken as representation that such trends or activities will
continue in the future. You should not place undue reliance on
forward-looking statements, which are based on the knowledge and
information available only at the date of this announcement's
preparation.
The Company does not undertake any obligation to update or keep
current the information contained in this announcement, including
any forward--looking statements, or to correct any inaccuracies
which may become apparent and any opinions expressed in it are
subject to change without notice.
References in this announcement to other reports or materials,
such as a website address, have been provided to direct the reader
to other sources of information on Bloomsbury Publishing Plc which
may be of interest. Neither the content of Bloomsbury's website nor
any website accessible by hyperlinks from Bloomsbury's website nor
any additional materials contained or accessible thereon, are
incorporated in, or form part of, this announcement.
Chief Executive's statement
Overview
The year ended 29 February 2020 saw a robust performance by
Bloomsbury, particularly given the impact of coronavirus in China
in the last two months of the financial year. Group profit before
tax and highlighted items increased by 9% to GBP15.7 million
(2018/19: GBP14.4 million). Group profit before tax increased by
10% to GBP13.2 million (2018/19: GBP12.0 million).
Our BDR digital growth strategy continues to perform very well,
delivering 32% revenue growth year -on-year and generating profit.
This strong growth demonstrated the demand for and quality of our
digital content, platforms and infrastructure. There was healthy
revenue growth both from increased sales of existing products, as
well as new partnerships and new products.
In December 2019 we acquired the drama publisher Oberon for
GBP1.2 million, further strengthening our presence as the leading
publisher in drama and the performing arts. Also in December 2019,
we entered the domestic Chinese market with Bloomsbury China, a new
joint venture with China Youth Publishing Group and Roaring Lion
Media. Continuing our international growth is a key part of our
strategy, and this partnership enables the business to further
accelerate that goal.
Performance was in line with the Board's expectations and so
there was no management bonus for the year (2018/19: GBP2.3
million). The highlighted items of GBP2.5 million consist of the
amortisation of acquired intangible assets of GBP1.7 million
(2018/19: GBP1.7 million), one-off restructuring costs and legal
and other professional fees relating to the acquisitions of GBP0.6
million (2018/19: GBP0.6 million) and one-off costs relating to the
coronavirus of GBP0.2 million. The effective rate of tax for the
year was 21% (2018/19: 23%). The adjusted effective rate of tax,
excluding highlighted items, was 19% (2018/19: 21%). Diluted
earnings per share, excluding highlighted items, grew 12% to 16.77
pence (2018/19: 14.97 pence). Including highlighted items, profit
before tax was GBP13.2 million (2018/19: GBP12.0 million) and
diluted earnings per share grew 13% to 13.84 pence (2018/19: 12.25
pence).
Cash and financing
Bloomsbury's cash generation continued to be robust with cash at
the year end of GBP31.3 million, up GBP3.8 million. During the year
we invested GBP1.8 million of capital expenditure in BDR and the
GBP1.2 million cash consideration for the acquisition of Oberon was
paid on completion in December 2019.
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. Subsequent to the year
end, the maturity of the facility was extended to May 2022 and the
covenants were amended to exclude IFRS 16.
Strategy
Delivering the Bigger Bloomsbury Initiatives
We delivered good results on the eight initiatives announced in
May 2019, with highlights including:
-- Growing the profits of the Academic & Professional
division: Delivered GBP1.8 million (58%) growth in profit before
taxation and highlighted items.
-- Maximising the success of Bloomsbury Digital Resources: Moved
into profit for the first time and delivered 32% growth in BDR
revenue.
-- Growing the profits of the Adult division: Delivered GBP1.6
million profit before taxation and highlighted items, up GBP0.7
million.
-- Reducing our finished goods stock further: Further 1%
reduction in inventories on a like-for-like basis.
-- Growing the revenues of acquisitions: 49% growth in IB Tauris
revenues, acquired in May 2018, contributing to the Non-Consumer
growth.
-- Increasing the focus on Bloomsbury's nine biggest assets,
starting with Harry Potter, Sarah J. Mass and Tom Kerridge:
Delivered 23 bestsellers globally.
-- Accelerating the growth of Bloomsbury's sales in the USA,
Australia and India: International sales 63% of revenue.
-- Increasing employee engagement through strategic initiatives:
Good progress in engagement and delivery of key initiatives.
Following the success of the Bigger Bloomsbury initiatives, we
are now renewing our focus on Bloomsbury's long-term growth
strategy which is aimed at diversifying into digital channels and
building quality revenues, increasing earnings and building on the
strategic success of the last five 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. These
are characterised by higher, more predictable margins and greater
digital and global opportunities: 2019/20: delivered 85% growth in
profit before tax and highlighted items and revenue growth of
4%.
o Achieve BDR revenue of GBP15 million and profit of GBP5
million for 2021/22: 2019/20: delivered GBP8.3 million revenue, up
32%.
-- Consumer
o Discover, nurture, champion and retain high quality authors
and illustrators in our Consumer division, while looking at new
ways to leverage existing title rights. 2019/2020: Sunday Times
bestsellers included Such a Fun Age by Kiley Reid, The Anarchy by
William Dalrymple, City of Girls by Elizabeth Gilbert, Three Women
by Lisa Taddeo and The Dutch House by Ann Patchett.
o Grow our key authors through effective publishing across all
formats alongside strategic sales and marketing. 2019/2020:
Crescent City: House of Earth and Blood by Sarah J. Maas was Number
One on the New York Times bestseller list, and we established our
Specialist Audio division.
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. 2019/20: Harry Potter and the Philosopher's Stone was the
10(th) bestselling Children's title on Nielsen BookScan in the UK,
22 years after first publication
-- International Expansion
o Expand international revenues and reduce reliance on UK
market: 2019/20: delivered overseas revenues of 63% of Group
revenue; achieved BDR international sales growth of 31% this
year.
-- Employee Experience and Engagement
Our colleagues are amongst our most important assets, and our
success is driven by their 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, so
adding cultural value to our business operations and
performance.
o Focus on targeted initiatives to create an environment that
nurtures talent, stimulates creativity and collaboration, is
respectful of difference and supports well-being.
o 2019/2020 Progress: continuing focus on employee engagement
and development initiatives, including Employee Voice Meetings,
Management Development Programme, mentoring scheme, formation of
Diversity and Inclusion ("D&I") Networks which complement and
inform the activities of our D&I Focus Group, and introduction
of Core Hours to support flexible working.
-- Sustainability
o Maximise our use of sustainable resources whilst seeking to
reduce carbon emissions. 2019/2020 Progress: Increased use of
print-on demand technology to over 20,000 titles, implementation of
Sustainability Working Group to promote positive environmental
actions and reduced greenhouse gas emissions from fuel and
electricity use.
Underpinning our strategy, our strengthened balance sheet will
help to ensure we have sufficient working capital to weather the
impact of coronavirus and to ensure we are able to fulfil our
long-term growth plans. We have already implemented cost savings
while balancing the need to retain our staff and acquire future
titles, as Bloomsbury's proven business model is to commission
titles one to two years ahead of publication.
Acquisitions
As previously announced, in December 2019, we acquired the
rights of drama publisher Oberon Books Limited for GBP1.2 million,
all of which was satisfied in cash on completion. This acquisition
further strengthens our presence as the leading publisher in drama
and the performing arts.
Also in December 2019, we entered the domestic Chinese market
with Bloomsbury China, a new joint venture with China Youth
Publishing Group and Roaring Lion Media. The investment is de
minimis.
Post year end in March 2020, as previously announced, we
acquired certain assets of Zed Books Limited, the London-based
academic and non-fiction publisher. The consideration was GBP1.75
million, of which GBP0.875 million was satisfied in cash on
completion and the remainder to be paid within 12 months. Zed will
operate within Bloomsbury's Academic & Professional
division.
Dividend
Bloomsbury had intended to declare a final dividend for year of
6.89 pence per share. This would have resulted in a total dividend
for the year of 8.17 pence per share, up 3% on the previous year.
As previously announced, Bloomsbury has decided in light of
coronavirus to conserve cash and therefore will not be paying a
cash dividend. It is now proposed, subject to shareholder proposal,
that the dividend is instead settled through the issuance of new
ordinary shares by way of bonus issue to shareholders, with a value
equivalent to the proposed final dividend.
Subject to Shareholder approval at our AGM on 21 July 2020, the
bonus issue will be made on 28 August 2020 to Shareholders on the
register on the record date of 31 July 2020.
Bloomsbury is proud of its strong track record of 24 years of
consecutive dividend growth. Our intention would be to reintroduce
cash dividend payments as soon as market conditions allow us to do
so.
Non-Consumer Division
The Non-Consumer division consists of Academic &
Professional and Special Interest. Revenues in the division
increased by 4% to GBP66.0 million (2018/19: GBP63.4 million).
Within this, Academic & Professional revenues grew by 4% to
GBP43.1 million (2018/19: GBP41.5 million). Profit before taxation
and highlighted items for the Non-Consumer division increased by
85% to GBP6.7 million (2018/19: GBP3.6 million). Profit before
taxation grew by 159% to GBP5.0 million (2018/19: GBP1.9 million).
The profit growth reflects improved Academic & Professional and
Special Interest profitability and the GBP0.7 million increase in
BDR profit.
In the second half, the Special Interest division took over
publishing part of our Content Services division, to generate
further synergies following the successful restructure of the
Special Interest division. Digital projects, including IZA World of
Labor, moved to the Academic & Professional division.
Comparatives have been restated to reflect this.
The strategic growth initiative BDR has made Bloomsbury into a
leading B2B publisher in the academic and professional information
market and significantly accelerated the growth of its digital
revenues. Key achievements during the year, which demonstrate the
opportunities to further leverage content and market other services
on our digital platforms and through the sales infrastructure we
have developed, were:
o Launch of five new digital resources during the year as
planned;
o Growth of Bloomsbury Collections to over 9,000 front and
backlist Bloomsbury Academic titles; over 20% higher than last
year. These include titles from IB Tauris, the British Film
Institute and our newly expanded frontlist collections;
o Launch of the new content partnership with Human Kinetics, the
world's leading sports science publisher;
o Development of our content partnership with Taylor &
Francis;
o Launch of our content partnership with the National Theatre in
September 2019, further endorsing and significantly expanding the
video offering of our award-winning Drama Online platform; and
o Continuing our customer retention rate above 90%.
Within Special Interest, profit before taxation and highlighted
items has increased by 227% to GBP1.9 million (2018/19: GBP0.6
million) and revenue was 4% higher at GBP22.9 million (2018/19:
GBP21.9 million). These results demonstrate the impact of the
restructuring under the new Head of Special Interest Publishing,
with a clear focus on publishing for key communities and reduced
overheads.
Consumer Division
The Consumer division consists of Adult and Children's trade
publishing. The Consumer division generated revenue of GBP96.8
million (2018/19: GBP99.3 million). Profit before taxation and
highlighted items was GBP8.9 million (2018/19: GBP10.7 million).
Profit before taxation was GBP8.8 million (2018/19: GBP10.7
million). The strong performance from the Adult division and
resilient Harry Potter sales were tempered by the impact of timing
and fewer frontlist titles from Sarah J Maas.
Adult Trade
The Adult division achieved very strong growth with a 12%
increase in revenue to GBP37.4 million (2018/19: GBP33.5 million)
and profit before taxation and highlighted items increasing by 77%
to GBP1.6 million (2018/19: GBP0.9 million), from success in front
and backlist titles, and the continued impact of strategic changes
in the division.
Bestsellers in the year included Dishoom: From Bombay with Love
Love by Shamil Thakrar, Kavi Thakrar and Naved Nasir, Tom
Kerridge's Lose Weight & Get Fit, the global bestseller, The
Anarchy by William Dalrymple, the number one Sunday Times
bestseller Three Women by Lisa Taddeo, the Sunday Times bestsellers
The Dutch House by Ann Patchett and City of Girls by Elizabeth
Gilbert, and the New York Times bestsellers Elderhood by Louise
Aronson and No Visible Bruises by Rachel Louise Snyder.
Children's Trade
Children's sales were GBP59.4 million (2018/19: GBP65.8
million). Sales of the Harry Potter titles were in line with last
year, with the Harry Potter and the Goblet of Fire Illustrated
Edition by J.K. Rowling and Jim Kay published in October. The
standard edition of Harry Potter and the Philosopher's Stone was
the tenth bestselling children's book of the year on UK Nielsen
Bookscan, twenty two years after it was first published - every
year these classics reach a new generation of readers.
Sarah J. Maas' new bestselling title, Crescent City: House of
Earth and Blood, was published at the end of the financial year,
compared to two new frontlist hardback titles in the previous year,
and total sales for this author were 32% lower than last year.
Other highlights on the Children's list included the second in
Brigid Kemmerer's Cursebreaker series, A Heart So Fierce and
Broken, the latest title in the Fantastically Great Women series by
Kate Pankhurst, and backlist titles We're Going on an Egg Hunt by
Laura Hughes, Norse Mythology by Neil Gaiman, Holes by Louis Sachar
and The Explorer by Katharine Rundell, alongside her new novel The
Good Thieves.
Audio
Bloomsbury's new Audio division has delivered 190% revenue
growth by focusing on production of key titles, distributed through
an exclusive deal with Audible. This expert team has enabled us to
produce 131 titles to date, launching with the Audible bestseller,
The Madness of Crowds by Douglas Murray, as well as The Dutch House
by Ann Patchett and Three Women by Lisa Taddeo.
Charitable Initiatives
As part of Bloomsbury's ongoing commitment to the wider
communities in which we operate, we are proud to support a wide
range of charitable initiatives. Highlights include:
-- National Literacy Trust: Our three-year partnership with the
National Literacy Trust with a particular focus on Hastings, one of
the UK's most deprived local authority areas;
-- Publishing Children's books in partnership with three leading
UK charities: the RSPB, Royal Botanic Gardens, Kew and The Woodland
Trust;
-- World Book Day: We are extremely proud to support World Book
Day, the most important, inclusive reading initiative in the
UK;
-- Pathways Project: Aiming to increase the representation of
underrepresented groups in children's illustration; Bloomsbury led
workshops and mentoring;
-- Book Aid International and The Soho Center US: Book donations to these charities;
-- EmpathyLab: Working closely with this charity and many of our
authors we ensure that children and the books they read support the
teaching of empathy;
-- 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.
IFRS 16
During the year IFRS 16, Leases ("IFRS 16"), was introduced.
Adoption of this standard has reduced the amount of rent and lease
charges, increased depreciation charges and finance costs and
increased the value of assets and liabilities. The net reduction to
profit before taxation for the year ended 29 February 2020 was
GBP0.2 million. The impact on EBITDA was an increase of GBP2.1
million and the impact on operating profit was an increase of
GBP0.3 million.
Throughout this announcement we have used profit before tax and
amortisation as this provides the fairest profit comparison between
the results to 29 February 2020, which include IFRS 16, and the
previous year's results, which have not been restated.
Board Changes
As previously announced, Jonathan Glasspool, Executive Director
and Managing Director for the Non-Consumer division, is retiring
and will leave Bloomsbury at the end of July 2020, after twenty
years' service.
I would like to thank Jonathan for his exceptional contribution
to Bloomsbury, building the major Academic & Professional
publisher that Bloomsbury sought to add to its trade portfolio. The
Academic & Professional division is now an impressive,
award-winning business in its own right.
We are delighted that Jenny Ridout, Bloomsbury's Global Head of
Academic Publishing, has been promoted to be the new Managing
Director of the Non-Consumer division. Jenny's knowledge of digital
and academic publishing and her proven commercial abilities, are a
very strong basis for achieving the growth expectations we have for
this part of the business. Jenny has been with Bloomsbury for over
15 years, since the inception of the division in 2008, and will
continue her role as Global Head of Academic Publishing. Jenny also
joins Bloomsbury's Executive Committee.
Management Action
People
In response to the coronavirus pandemic, management acted
quickly to implement proactive measures to protect our staff and
continue working effectively with our authors, illustrators,
customers and suppliers. Staff globally are working safely and
effectively from home.
Financing
We have extended the maturity of our facilities with Lloyds Bank
Plc from May 2021 to May 2022 and amended covenants to exclude IFRS
16.
Cost Savings
Management has also taken the following proactive measures to
conserve cash and reduce costs:
- Board taking salary or board fee reductions of 30%, saving GBP0.03 million per month;
- Salary reductions across the majority of staff, weighted to
more senior staff, saving GBP0.2 million per month;
- Participating in Government schemes in the UK and US to
support staff and businesses, saving GBP0.7 million per month for
the first two months and GBP0.1 million thereafter;
- Recruitment freeze and furloughing 14 staff, with top-up
salaries for the majority of those affected, saving GBP0.03 million
per month;
- Reducing discretionary spend to a minimum, including marketing
and non-essential capital expenditure, saving an average of GBP0.9
million per month.
Equity Placing
On 17 April 2020, Bloomsbury announced the successful completion
of the non-pre-emptive placing of 5.0% of ordinary shares, raising
gross proceeds of GBP8.4 million. Acting in the long-terms
interests of all stakeholders, this placing strengthened our
balance sheet to ensure we have sufficient working capital to
weather the impact of coronavirus without damaging Bloomsbury's
business; being able to retain our staff and acquire future titles
is a crucial part of this.
Future Publishing
Our publishing list for 2020/21 includes Quidditch Through the
Ages Illustrated Edition by J.K. Rowling and Emily Gravett,
Fantastic Beasts and the Wonder of Nature in association with the
Natural History Museum exhibition, Sarah J. Maas' number one New
York Times bestseller Crescent City: House of Earth and Blood,
Humankind by Rutger Bregman, Susanna Clarke's Piranesi, Brigid
Kemmerer's A Vow so Bold and Deadly, and the authorised History of
GCHQ, Behind the Enigma, by Professor John Ferris.
Outlook
There is no immediate certainty around the severity and duration
of the impact of the coronavirus pandemic on our business and
therefore the Board is unable to provide guidance for the year
ending 28 February 2021 at this time.
The coronavirus crisis and imposition of government lockdowns
and restrictions and retail closures continue to impact all our key
markets of the UK, US, Australia and India as well as many other
important markets. Orders for print books, which comprised 79% of
the Company's revenue for the year ended 29 February 2020, are
being affected in all our markets. Our UK, US and Australia
warehouses remain open and continue supply to customers. We have
positive sales prospects through Amazon, even as they prioritise
essential crisis services, with strong growth in demand for
e-books.
April 2020 year-to-date revenue is 3% below last year, with
print revenues at 87% of last year's sales and academic digital
revenues up over 52% year-on-year.
Our strategy of expanding and leveraging our digital rights and
products means that we are well placed to benefit from increased
demand for our digital resources, audio and e-books as we are with
direct supply from Amazon, Bloomsbury.com, Waterstones.com and most
internet retailers selling print books. Strong digital growth
continues from academic institutional customers as libraries pivot
swiftly to digital resources and reduce print purchases to support
remote learning for students. However, academic institutions face
major uncertainties over student recruitment, particularly
international students, and when students will be allowed to
return. This could bring financial uncertainty for many of our
digital resource customers.
The Board has modelled a severe but plausible downside scenario,
including the impact of coronavirus. This assumes:
-- Print revenues are reduced by 60%-65% for the three months of
expected global restrictions to July 2020 and gradual recovery
through to March 2021;
-- Downside assumptions about extended debtor days to the end of 2021;
-- In this scenario, we extend the cost reduction measures
already implemented, as set out above.
Under this pessimistic downside scenario, we expect our business
model to be able to manage these downside assumptions and stay
within the headroom of our current banking facilities.
Should a prolonged downside scenario not materialise the equity
placing proceeds will be used for future growth opportunities.
Bloomsbury has a successful track record of acquisitive growth via
26 strategic acquisitions and we continue to see opportunities in
the Academic markets.
Unaudited Consolidated Income Statement
FOR THE YEARED 29 FEBRUARY 2020
Year ended Year ended
29 February 28 February
2020 2019
Notes GBP'000 GBP'000
---------------------------------------- ------ ------------ ------------
Revenue 2 162,772 162,679
Cost of sales (74,978) (74,922)
---------------------------------------- ------ ------------ ------------
Gross profit 87,794 87,757
Marketing and distribution costs (21,373) (22,053)
Administrative expenses (52,949) (53,735)
---------------------------------------- ------ ------------ ------------
Operating profit before highlighted
items 15,947 14,294
Highlighted items 3 (2,475) (2,325)
---------------------------------------- ------ ------------ ------------
Operating profit 13,472 11,969
Finance income 270 130
Finance costs (513) (50)
---------------------------------------- ------ ------------ ------------
Profit before taxation and highlighted
items 15,704 14,374
Highlighted items 3 (2,475) (2,325)
---------------------------------------- ------ ------------ ------------
Profit before taxation 13,229 12,049
Taxation 4 (2,728) (2,802)
---------------------------------------- ------ ------------ ------------
Profit for the year attributable
to owners of the Company 10,501 9,247
---------------------------------------- ------ ------------ ------------
Earnings per share attributable to
owners of the Company
Basic earnings per share 6 14.03p 12.37p
Diluted earnings per share 6 13.84p 12.25p
---------------------------------------- ------ ------------ ------------
Unaudited Consolidated Statement of Comprehensive Income
FOR THE YEARED 29 FEBRUARY 2020
Year ended Year ended
29 February 28 February
2020 2019
GBP'000 GBP'000
------------------------------------------------------ ------------ ------------
Profit for the year 10,501 9,247
Other comprehensive income
Items that may be reclassified to the income
statement:
Exchange differences on translating foreign
operations 856 964
Items that may not be reclassified to the
income statement:
Remeasurements on the defined benefit pension
scheme (115) (5)
------------------------------------------------------ ------------ ------------
Other comprehensive income for the year net
of tax 741 959
Total comprehensive income for the year attributable
to the owners of the Company 11,242 10,206
------------------------------------------------------ ------------ ------------
Items in the statement above are disclosed net of tax.
Unaudited Consolidated Statement of Financial Position
AS AT 29 FEBRUARY 2020
29 February 28 February
2020 2019
Notes GBP'000 GBP'000
---------------------------------------- ------ ------------ ------------
Assets
Goodwill 45,030 44,895
Other intangible assets 21,630 21,890
Investments 516 300
Property, plant and equipment 1,914 2,110
Right-of-use assets 13,343 -
Deferred tax assets 2,756 2,376
Trade and other receivables 7 1,237 1,360
---------------------------------------- ------ ------------ ------------
Total non-current assets 86,426 72,931
---------------------------------------- ------ ------------ ------------
Inventories 27,164 26,076
Trade and other receivables 7 84,805 80,506
Cash and cash equivalents 31,345 27,580
---------------------------------------- ------ ------------ ------------
Total current assets 143,314 134,162
---------------------------------------- ------ ------------ ------------
Total assets 229,740 207,093
---------------------------------------- ------ ------------ ------------
Liabilities
Retirement benefit obligations 185 121
Deferred tax liabilities 2,347 2,360
Lease liabilities 12,945 -
Provisions 182 147
---------------------------------------- ------ ------------ ------------
Total non-current liabilities 15,659 2,628
---------------------------------------- ------ ------------ ------------
Trade and other liabilities 61,844 60,644
Lease liabilities 1,585 -
Current tax liabilities 328 -
Provisions 651 83
Total current liabilities 64,408 60,727
---------------------------------------- ------ ------------ ------------
Total liabilities 80,067 63,355
---------------------------------------- ------ ------------ ------------
Net assets 149,673 143,738
---------------------------------------- ------ ------------ ------------
Equity
Share capital 942 942
Share premium 39,388 39,388
Translation reserve 9,507 8,651
Other reserves 7,778 7,118
Retained earnings 92,058 87,639
---------------------------------------- ------ ------------ ------------
Total equity attributable to owners of
the Company 149,673 143,738
---------------------------------------- ------ ------------ ------------
Unaudited Consolidated Statement of Changes in Equity
AS AT 29 FEBRUARY 2020
Own
Capital Share-based 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
2018 (restated*) 942 39,388 7,687 1,803 22 5,673 (1,043) 84,034 138,506
------------------------- ------- ------- ----------- -------- ---------- ----------- ------- -------- -------
Profit for the
year - - - - - - - 9,247 9,247
Other comprehensive
income
Exchange differences
on translating
foreign operations - - 964 - - - - - 964
Remeasurements
on the defined
benefit pension
scheme - - - - - - - (5) (5)
------------------------- ------- ------- ----------- -------- ---------- ----------- ------- -------- -------
Total comprehensive
income for the
year - - 964 - - - - 9,242 10,206
Transactions with
owners
Dividends to equity
holders of the
Company - - - - - - - (5,655) (5,655)
Unclaimed dividends
Share options exercised - - - - - - - 12 12
- - - - - - 241 (27) 214
Deferred tax on
share-based payment
transactions - - - - - - - 33 33
Share-based payment
transactions - - - - - 422 - - 422
------------------------- ------- ------- ----------- -------- ---------- ----------- ------- -------- -------
Total transactions
with owners of
the Company - - - - - 422 241 (5,637) (4,974)
------------------------- ------- ------- ----------- -------- ---------- ----------- ------- -------- -------
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 - - - - - - - (6,009) (6,009)
Company
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 28 February
2020 942 39,388 9,507 1,803 22 6,724 (771) 92,058 149,673
------------------------- ------- ------- ----------- -------- ---------- ----------- ------- -------- -------
* The Group has applied IFRS 15 'Revenue from Contracts with
Customers' and IFRS 9 'Financial Instruments' at 1 March 2018. The
cumulative impact of adoption has been recognised as a decrease to
opening retained earnings as at 28 February 2018.
Unaudited Consolidated Statement of Cash Flows
FOR THE YEARED 29 FEBRUARY 2020
Year ended Year ended
29 February 28 February
2020 2019
GBP'000 GBP'000
--------------------------------------------------- ------------ ------------
Cash flows from operating activities
Profit for the year 10,501 9,247
Adjustments for:
Depreciation of property, plant and equipment 502 470
Depreciation of right-of-use assets 1,775 -
Amortisation of intangible assets 4,301 4,139
Finance income (270) (130)
Finance costs 513 50
Share of loss of Joint Venture 7 -
Share-based payment charges 761 498
Tax expense 2,728 2,802
--------------------------------------------------- ------------ ------------
20,818 17,076
(Increase)/decrease in inventories (620) 2,315
(Increase)/decrease in trade and other receivables (4,385) 5,834
Increase/(decrease) in trade and other liabilities 2,489 (7,702)
--------------------------------------------------- ------------ ------------
Cash generated from operating activities 18,302 17,523
Income taxes paid (1,706) (2,529)
--------------------------------------------------- ------------ ------------
Net cash generated from operating activities 16,596 14,994
--------------------------------------------------- ------------ ------------
Cash flows from investing activities
Purchase of property, plant and equipment (294) (456)
Purchase of intangible assets (3,137) (2,898)
Purchase of business, net of cash acquired (310) (4,004)
Purchase of rights to assets (1,213) -
Purchase of joint ventures
Interest received (223) -
---------------------------------------------------
254 116
--------------------------------------------------- ------------ ------------
Net cash used in investing activities (4,923) (7,242)
--------------------------------------------------- ------------ ------------
Cash flows from financing activities
Equity dividends paid (6,009) (5,655)
Proceeds from exercise of share options 27 214
Repayment of overdraft - (201)
Repayment of lease liabilities (1,531) -
Lease liability interest paid (492) -
Interest paid (3) (34)
--------------------------------------------------- ------------ ------------
Net cash used in financing activities (8,008) (5,676)
--------------------------------------------------- ------------ ------------
Net increase in cash and cash equivalents 3,665 2,076
Cash and cash equivalents at beginning of year 27,580 25,428
Exchange gain on cash and cash equivalents 100 76
--------------------------------------------------- ------------ ------------
Cash and cash equivalents at end of year 31,345 27,580
--------------------------------------------------- ------------ ------------
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 29 February 2020
and 28 February 2019. The financial information for 2019 is derived
from the statutory accounts for 2019 which have been delivered to
the registrar of companies. The auditor has reported on the 2019
accounts; their report was (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 statutory accounts for 2020 will be finalised on the
basis of the financial information presented by the directors in
this preliminary announcement and will be delivered to the
registrar of companies in due course.
The Group's financial statements have been prepared in
accordance with IFRS and International Financial Reporting
Interpretations Committee ("IFRIC") interpretations adopted by the
European Union ("EU") at the time of preparing the Group's
financial statements and those parts of the Companies Act 2006
applicable to companies reporting under IFRS. Except as described
below, the accounting policies applied in the year ended 29
February 2020 are consistent with those applied in the financial
statements for year ended 28 February 2019 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 60%-65% for the three months of
expected global coronavirus restrictions to July 2020 and gradual
recovery through to March 2021;
-- Downside assumptions about extended debtor days to the end of 2021;
-- Cost reduction measures already implemented including salary
reductions and reducing discretionary spend including marketing and
non-essential capital expenditure.
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. Subsequent to the year
end, the maturity of the facility was extended to May 2022 and the
covenants were amended to exclude IFRS 16.
At 29 February 2020, the Group had no draw down of this
facility.
c) Change of accounting policy: IFRS 16
The Group has adopted IFRS 16 Leases from 1 March 2019 and
applied the modified retrospective approach. Comparatives for 2019
have not been restated and there is no adjustment to equity at the
date of application.
On transition the Group elected not to reassess whether a
contract is, or contains, a lease, instead relying on the
assessment already made applying IAS 17 'Leases' and IFRIC 4
'Determining whether and Arrangement contains a Lease'. In
addition, the Group applied the available practical expedients as
follows:
-- Reliance on assessment as to whether leases are onerous on 1
March 2019 with no impact identified;
-- Exclude leases of low value assets and short term leases of
less than 12 months from the application of IFRS 16, with payment
for these leases continuing to be expensed directly to the income
statement as operating leases;
-- The use of hindsight in determining the lease term where the
contract contains options to extend or terminate the lease; and
-- Exclusion of initial direct costs for the measurement of the
right-of-use asset at the date of initial application.
The major class of lease impacted by the new standard is
property leases. The lease liability has been measured at the
present value of the remaining lease payments, discounted using the
incremental borrowing rate at transition. The right-of-use assets
are set to equal the lease liability adjusted for any prepaid or
accrued lease payments.
The weighted average incremental borrowing rate ("IBR") applied
to the lease liabilities on 1 March 2019 was 3.3%. A single IBR has
been applied to a portfolio of leases when these have shared
similar characteristics including location, duration and nature of
the leases. The approach to use an IBR to discount leases has been
followed since the transition date as the interest rate implicit in
individual leases cannot be readily determined.
At 1 March 2019 transition date adoption of IFRS 16 resulted in
the Group recognising right-of-use assets of GBP13.6 million and
lease liabilities of GBP14.5 million. There is a reduction of
GBP0.3 million for prepaid rental amounts now netted against the
right-of-use assets and a reduction of GBP1.2 million to
liabilities for deferred rent-free amounts netted against the
right-of-use asset.
The impact on the income statement for the year ended 29
February 2020 is as follows:
Year ended
29 February
2020
GBP'000
------------------------------------ ------------
Decrease in administrative expenses 2,055
--------------------------------------- ------------
EBITDA benefit 2,055
Increase in depreciation (1,775)
--------------------------------------- ------------
Operating profit benefit 280
Increase in finance costs (492)
Profit before tax reduction (212)
--------------------------------------- ------------
Prior to the adoption of IFRS 16 rental payments were charged to
the income statement on a straight-line basis. Under IFRS 16 rental
costs in the income statement are replaced with depreciation on the
right-of-use asset and interest charges on the lease liability. The
adoption of IFRS 16 gives rise to a net GBP212,000 charge in the
profit before tax for the year ended 29 February 2020. At operating
profit, the adoption of IFRS 16 gives a benefit of GBP280,000. The
impact is the same for both the statutory profit before tax and
adjusted profit before tax.
There is no overall impact on the Group's cash and cash
equivalents although there is a change to the classification of
cash flows in the cash flow statement with lease payments
previously categorised as net cash used in operations now being
split between the principal element (categorised in financing
activities) and the interest element (categorised as interest paid
in financing activities). The impact on the cash flow statement for
the year ended 29 February 2020 is as follows:
Repayment
Pre IFRS of lease Interest Post IFRS
16 liabilities paid 16
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- ---------- ------------ -------- ---------
Net cash used in operating
activities 14,573 1,531 492 16,596
--------------------------- ---------- ------------ -------- ---------
Net cash used in financing
activities (5,985) (1,531) (492) (8,008)
--------------------------- ---------- ------------ -------- ---------
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 further split out
into two operating segments; Children's Trade and Adult Trade, and
Non-Consumer is split between two operating segments; Academic
& Professional and Special Interest.
Each reportable segment represents a cash-generating unit for
the purpose of impairment testing. We have allocated goodwill
between reportable segments. These divisions are the basis on which
the Group primarily reports its segment information. Segments
derive their revenue from book publishing, sale of publishing and
distribution rights, management and other publishing services.
The analysis by segment is shown below:
Children's Adult Consumer Academic Special Non-Consumer Unallocated Total
Trade Trade & Interest
Professional
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 - 20,788
---------------- ----------- --------- --------- ------------- ---------- ------------ ---------
Children's Adult Consumer Academic Special Non-Consumer Unallocated Total
Trade Trade & Interest(1)
Professional(1)
Year ended 28 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
February 2019 GBP'000 GBP'000 GBP'000
---------------- ----------- --------- --------- ---------------- ------------ ------------- ------------ ---------
External
revenue 65,800 33,454 99,254 41,514 21,911 63,425 - 162,679
Cost of sales (32,671) (16,937) (49,608) (14,813) (10,501) (25,314) - (74,922)
---------------- ----------- --------- --------- ---------------- ------------ ------------ ---------
Gross profit 33,129 16,517 49,646 26,701 11,410 38,111 - 87,757
Marketing and
distribution
costs (9,039) (5,231) (14,270) (4,878) (2,905) (7,783) - (22,053)
---------------- ----------- --------- --------- ---------------- ------------ ------------ ---------
Contribution
before
administrative
expenses 24,090 11,286 35,376 21,823 8,505 30,328 - 65,704
Administrative
expenses
excluding
highlighted
items (14,306) (10,395) (24,701) (18,780) (7,929) (26,709) - (51,410)
---------------- ----------- --------- --------- ---------------- ------------ ------------ ---------
Operating
profit before
highlighted
items/ segment
results 9,784 891 10,675 3,043 576 3,619 - 14,294
Amortisation of
acquired
intangible
assets - (18) (18) (1,482) (214) (1,696) - (1,714)
Other
highlighted
items - - - - - - (611) (611)
---------------- ----------- --------- --------- ---------------- ------------ ------------ ---------
Operating
profit/(loss) 9,784 873 10,657 1,561 362 1,923 (611) 11,969
Finance income - - - - - - 130 130
Finance costs - - - - - - (50) (50)
---------------- ----------- --------- --------- ---------------- ------------ ------------ ---------
Profit before
taxation and
highlighted
items 9,784 891 10,675 3,043 576 3,619 80 14,374
Amortisation of
acquired
intangible
assets - (18) (18) (1,482) (214) (1,696) - (1,714)
Other
highlighted
items - - - - - - (611) (611)
---------------- ----------- --------- --------- ---------------- ------------ ------------ ---------
Profit/(loss)
before
taxation 9,784 873 10,657 1,561 362 1,923 (531) 12,049
Taxation - - - - - - (2,802) (2,802)
---------------- ----------- --------- --------- ---------------- ------------ ------------ ---------
Profit/(loss)
for the year 9,784 873 10,657 1,561 362 1,923 (3,333) 9,247
---------------- ----------- --------- --------- ---------------- ------------ ------------- ------------ ---------
Operating
profit before
highlighted
items/ segment
results 9,784 891 10,675 3,043 576 3,619 - 14,294
Depreciation 185 83 268 131 71 202 - 470
Amortisation of
internally
generated
intangibles 373 177 550 1,638 237 1,875 - 2,425
---------------- ----------- --------- --------- ---------------- ------------ ------------ ---------
EBITDA before
highlighted
items 10,342 1,151 11,493 4,812 884 5,696 - 17,189
---------------- ----------- --------- --------- ---------------- ------------ ------------ ---------
(1) The Content Services division has been moved into the
Special Interest Division; with digital projects moved to the
Academic & Professional division.
The reconciliation of operating profit to EBITDA, both before
highlighted items, for the year ended 29 February 2020 includes the
impact of IFRS 16. The comparative year reconciliation has not been
restated for IFRS 16. Note 1b) explains the impact of IFRS 16 on
EBITDA for the year ended 29 February 2020.
External revenue by destination
Source
United
Kingdom North America Australia India Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ -------- ------------- --------- -------- --------
Destination
Year ended 29 February
2020
United Kingdom (country
of domicile) 60,724 74 - - 60,798
------------------------ -------- ------------- --------- -------- --------
North America 15,352 40,064 - - 55,416
Continental Europe 16,782 1,683 - - 18,465
Australasia 1,320 - 11,107 - 12,427
Middle East and Asia 7,435 190 - 4,799 12,424
Rest of the world 2,827 404 - 11 3,242
------------------------ -------- ------------- --------- -------- --------
Overseas countries 43,716 42,341 11,107 4,810 101,974
------------------------ -------- ------------- --------- -------- --------
Total 104,440 42,415 11,107 4,810 162,772
------------------------ -------- ------------- --------- -------- --------
Year ended 28 February
2019
United Kingdom (country
of domicile) 58,407 54 - - 58,461
------------------------ -------- ------------- --------- -------- --------
North America 13,248 43,478 - - 56,726
Continental Europe 17,802 1,594 - - 19,396
Australasia 1,463 - 11,586 - 13,049
Middle East and Asia 7,317 289 - 4,244 11,850
Rest of the world 2,722 431 - 44 3,197
------------------------ -------- ------------- --------- -------- --------
Overseas countries 42,552 45,792 11,586 4,288 104,218
------------------------ -------- ------------- --------- -------- --------
Total 100,959 45,846 11,586 4,288 162,679
------------------------ -------- ------------- --------- -------- --------
During the year sales to one customer exceeded 10% of Group
revenue (2019: one customer). The value of these sales was
GBP43,405,000 (2019: GBP37,483,000).
External revenue by product type
Children's Adult Academic Special
Year ended 29 February Trade Trade Consumer & Professional Interest Non-Consumer Total
2020 GBP'000 GBP'000 GBP'000 GBP000 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
----------------------- ---------- -------- -------- --------------- --------- ------------ --------
Children's Adult Academic Special
Year ended 28 February Trade Trade Consumer & Professional(2) Interest(2) Non-Consumer Total
2019 GBP'000 GBP'000 GBP'000 GBP000 GBP'000 GBP'000 GBP'000
----------------------- ---------- -------- -------- ------------------ ------------ ------------ --------
Print 58,288 27,568 85,856 29,087 18,367 47,454 133,310
Digital 4,157 4,887 9,044 10,083 1,746 11,829 20,873
Rights and Services(1) 3,355 999 4,354 2,344 1,798 4,142 8,496
Total 65,800 33,454 99,254 41,514 21,911 63,425 162,679
----------------------- ---------- -------- -------- ------------------ ------------ ------------ --------
(1) Rights and Services revenue includes revenue from copyright
and trademark licences, management contracts, advertising and
publishing services.
(2) The Content Services division has been moved into the
Special Interest Division; with digital projects moved to the
Academic & Professional division.
Total assets
29 February 28 February
2020 2019
GBP'000 GBP'000
------------------------- ------------ ------------
Children's Trade 11,016 9,939
Adult Trade 6,747 7,218
Academic & Professional 59,128 58,466
Special Interest 13,492 14,328
Unallocated 139,357 117,142
Total assets 229,740 207,093
------------------------- ------------ ------------
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
29 February 28 February
2020 2019
GBP'000 GBP'000
------------------------------------- ----------- -----------
United Kingdom (country of domicile) 75,839 65,802
North America 7,638 4,669
Other 193 84
Total 83,670 70,555
------------------------------------- ----------- -----------
3. Highlighted items
Year ended Year ended
29 February 28 February
2020 2019
GBP'000 GBP'000
------------------------------------- ------------ ------------
Legal and other professional
fees 461 223
Coronavirus onerous costs 180 -
Restructuring costs 98 388
Other highlighted items 739 611
Amortisation of acquired intangible
assets 1,736 1,714
-------------------------------------- ------------ ------------
Total highlighted items 2,475 2,325
-------------------------------------- ------------ ------------
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 29 February 2020 Legal and other professional
fees of GBP461,000 were incurred as a result of the Group's
acquisition of rights, primarily that of Oberon Books Limited and
the joint venture; Beijing CYP & Gakken Education Development
Co., Ltd. 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.
For the year ended 28 February 2019 Legal and other professional
fees of GBP223,000 and restructuring costs of GBP388,000 were
incurred as a result of the Group's acquisition of 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%
(2019: 19.00%). The reasons for this are explained below:
Year ended Year ended
29 February 28 February
2020 2019
GBP'000 % GBP'000 %
--------------------------------------------- -------- ------ ------------ ------
Profit before taxation 13,229 100.0 12,049 100.0
--------------------------------------------- -------- ------ ------------ ------
Profit on ordinary activities multiplied
by the standard rate of corporation
tax in the UK of 19.00% (2019: 19.00%) 2,514 19.0 2,289 19.0
Effects of:
Non-deductible revenue expenditure 153 1.1 117 1.0
Movement in unrecognised temporary
differences 47 0.4 132 1.1
Different rates of tax in foreign
jurisdictions 142 1.1 308 2.6
Tax losses utilised (124) (0.9) (36) (0.3)
Adjustment to tax charge in respect
of prior years
Current tax (33) (0.3) (21) (0.2)
Deferred tax (57) (0.4) (24) (0.2)
--------------------------------------------- -------- ------ ------------ ------
Tax charge for the year before disallowable
costs on highlighted items 2,642 20.0 2,765 23.0
Highlighted items:
Disallowable costs 86 0.6 37 0.3
--------------------------------------------- -------- ------ ------------ ------
Tax charge for the year 2,728 20.6 2,802 23.3
--------------------------------------------- -------- ------ ------------ ------
Non-deductible revenue expenditure mainly relates to
disallowable foreign exchange and entertainment expenses. 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.
We are not aware of any significant unprovided exposures that
are considered likely to materialise.
5. Dividends
Year ended Year ended
29 February 28 February
2020 2019
GBP'000 GBP'000
----------------------------------------- ------------ ------------
Amounts paid in the year
Prior period final 6.75p dividend per
share (2019: 6.36p) 5,051 4,749
Interim 1.28p dividend per share (2019:
1.21p) 958 906
----------------------------------------- ------------ ------------
Total dividend payments in the year 6,009 5,655
----------------------------------------- ------------ ------------
Amounts arising in respect of the year
Interim 1.28p dividend per share for
the year (2019: 1.21p) 958 906
Proposed final dividend per share for
the year (2019: 6.75p) - 5,051
----------------------------------------- ------------ ------------
Total dividend 1 .28p per share for
the year (2019: 7.96p) 958 5,957
----------------------------------------- ------------ ------------
Absent of coronavirus, Bloomsbury would have declared a final
cash dividend for the year to 29 February 2020 of 6.89 pence per
share, which would have resulted in a total dividend for the year
of 8.17 pence per share, up 3% on the previous year. As previously
announced, Bloomsbury has decided in view of coronavirus to
prioritise cash conservation at the current time and therefore will
not be paying a cash dividend. Bloomsbury will instead, subject to
shareholder approval at the Annual General Meeting, be making a
bonus issue to shareholders in lieu of, and with a value equivalent
to, its proposed final dividend. This bonus issue will be provided
on 28 August 2020 to Shareholders on the register on the record
date of 31 July 2020.
6. Earnings per share
The basic earnings per share for the year ended 29 February 2020
is calculated using a weighted average number of Ordinary shares in
issue of 74,830,714 (2019: 74,741,083) 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
29 February 28 February
2020 2019
Number Number
Weighted average shares in issue 74,830,714 74,741,083
Dilution 1,026,939 756,547
------------------------------------- ------------ ------------
Diluted weighted average shares
in issue 75,857,653 75,497,630
------------------------------------- ------------ ------------
GBP'000 GBP'000
------------------------------------- ------------ ------------
Profit after tax attributable to
owners of the Company 10,501 9,247
Basic earnings per share 14.03p 12.37p
------------------------------------- ------------ ------------
Diluted earnings per share 13.84p 12.25p
------------------------------------- ------------ ------------
GBP'000 GBP'000
------------------------------------- ------------ ------------
Adjusted profit attributable to
owners of the Company 12,720 11,299
Adjusted basic earnings per share 17.00p 15.12p
------------------------------------- ------------ ------------
Adjusted diluted earnings per share 16.77p 14.97p
------------------------------------- ------------ ------------
Adjusted profit is derived as follows:
Year ended Year ended
29 February 28 February
2020 2019
GBP'000 GBP'000
Profit before taxation 13,229 12,049
Amortisation of acquired intangible
assets 1,736 1,714
Other highlighted items 739 611
------------------------------------- ------------ ------------
Adjusted profit before tax 15,704 14,374
------------------------------------- ------------ ------------
Tax expense 2,728 2,802
Deferred tax movements on goodwill
and acquired intangible assets 202 194
Tax expense on other highlighted
items 54 79
Adjusted tax 2,984 3,075
------------------------------------ ------ ------
Adjusted profit 12,720 11,299
----------------- ------- --------
7. Trade and other receivables
29 February 29 February
2020 2019
GBP'000 GBP'000
Non-current
Prepayments and accrued income 1,237 1,360
------------------------------------------- ------------ ------------
Current
Gross trade receivables 54,252 52,115
Less: provision for impairment of
receivables (1,832) (2,102)
------------------------------------------- ------------ ------------
Net trade receivables 52,420 50,013
Income tax recoverable 481 1,340
Other receivables 1,510 1,803
Prepayments and accrued income 5,551 4,683
Royalty advances 24,843 22,667
Total current trade and other receivables 84,805 80,506
------------------------------------------- ------------ ------------
Total trade and other receivables 86,042 81,866
------------------------------------------- ------------ ------------
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 29 February 2020, GBP5,604,000
(2019: GBP5,434,000) of royalty advances are expected to be
recovered after more than 12 months.
8. Annual General Meeting
The Annual General Meeting will be held on 21 July 2020.
9. 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR EANSNFLKEEFA
(END) Dow Jones Newswires
May 20, 2020 02:00 ET (06:00 GMT)
Bloomsbury Publishing (LSE:BMY)
Historical Stock Chart
From Sep 2024 to Oct 2024
Bloomsbury Publishing (LSE:BMY)
Historical Stock Chart
From Oct 2023 to Oct 2024
