Bloomsbury revenues drop 5% in first half

Bloomsbury has announced an "encouraging" first half of the 2019/20 financial year, reporting revenues up 9% in its Academic & Professional division and up 73% for Bloomsbury Digital Resources. For the whole group, however, revenues are down 5.3% in the first half, from £75.3m to £71.3m, with pre-tax profit also lower at £1.3m (2018: £1.6m).

In the independent publisher's interim results for the six months up to 31st August 2019, the group said it delivered "an encouraging first half and performance" that was "in line with the Board’s expectations for the full year".

Revenues were £71.3m (2018: £75.3m); profit before taxation and highlighted items came in at £2.5m (2018: £2.9m) and profit before taxation was £1.3m (2018: £1.6m). It reported a "strong financial position" with a £3.1m increase in cash to £20.1m (2018: £16.9m).

Breaking it down, non-consumer revenues were up 6% to £29.9 million (2018: £28.3 million). As part of this, Bloomsbury's academic and professional division, revenues were up 9%, and profit before taxation and highlighted items was £1.8m (2018: £0.1m). Bloomsbury Digital Resources 2020 revenues were up 73% to £3.8m, and moved BDR 2020 into profit.

Whilst noting its consumer frontlist is “even more heavily weighted to the second half than in previous years” with its biggest titles published in the Autumn “including 10 recent, current and potential bestsellers”, consumer revenues dropped from £47m to £41.5m, with profit before taxation and highlighted items £0.6m (2018: £3.1m). Adult Trade revenues were up 2% to £16.2m (2018: £15.9 million), and loss before taxation and highlighted items was £0.1m (2018: £0.4m profit). Children’s Trade revenues dropped from £31.1m to £25.3m and delivered profit before taxation and highlighted items of £0.8m (2018: £2.8 million). Sales of the Harry Potter titles fell 16% but were said to “remain strong” considering they followed the 20th anniversary year in 2017/18 that had already bolstered first half sales 13%.

Commenting on the results, Nigel Newton, chief executive, said: "Bloomsbury had an encouraging first half. The Academic & Professional division delivered an excellent performance with 9% revenue growth and profit before tax and highlighted items up £1.8m. This included outstanding revenue growth of 73% from Bloomsbury Digital Resources, which has moved into profit. Drama Online is the premier reference resource in its field, and now includes our new partnership with the National Theatre.

"The robust growth of the Non-Consumer division’s revenue and profitability demonstrate the continued delivery of our diversified, international strategy. The Consumer division results are more heavily weighted to the second half this year, with our biggest titles, including the illustrated Harry Potter and the Goblet of Fire by J K Rowling and Jim Kay, published in October ahead of the peak Christmas period.

"In Consumer, our very strong list for the second half, with 10 recent, current and potential bestsellers, includes William Dalrymple’s The Anarchy, The Dutch House by Ann Patchett, the Dishoom cookbook, Tom Kerridge’s new blockbuster in December, Lose Weight and Get Fit, and Sarah J Maas’ Crescent City: House of Earth and Blood. These follow bestsellers in the first half including Three Women by Lisa Taddeo, which was number one on the Sunday Times bestseller list for four weeks, and Mudlarking by Lara Maiklem.

"Our strong financial position and good cash generation, with a £3.1 million increase in cash since 31 August 2018, give us significant opportunities for further acquisitions and investment in organic growth. With a proposed interim dividend increase of 6%, we are on track to deliver our 25th year of consecutive dividend growth. The Group is performing in line with the Board’s expectations for the full year."