Newton hails record first-half profits and sales at Bloomsbury

Bloomsbury has reported record sales of £100.7m in its interim half-year results with profit growth up by 220%, something c.e.o. Nigel Newton has attributed partly to continued lockdown reading habits and the “phenomenal” impact of TikTok. 

The unaudited interim results for the six months ended 31st August 2021 revealed year-on-year revenue growth of 29% to £100.7m from £78.3m in 2020 and profit growth before tax and highlighted items up to £12.9m from £4m the year before. Profit before taxation surged to £11.1m, up from £3m. 

“These are our highest ever first-half sales and profits,” Newton said. “These results demonstrate the strength and resilience of our strategy of publishing for both the consumer and academic markets, and our growth of digital revenues.” 

Newton also described how the company had dealt with the supply crisis that has been plaguing the industry over recent months. “During the first half, we successfully mitigated print supply chain challenges. This included earlier printing, well in advance of our usual peaks in the run up to Christmas and the beginning of the academic year in the autumn.” 

He told The Bookseller he is mindful of the uncertain situation over the supply chain: “Absolutely we are still monitoring this like everyone else. It has been difficult with the shipping delays, lack of containers and paper shortages, all these things that everybody is experiencing at the moment but I think the industry’s production departments, sales and operations have been taking it in their stride, planning and making changes so the impact has not been severe."

He added: “Fuel and rising energy costs are contributing to this significantly and this is particularly in relation to shipping goods on the seas.” 

In the results, he revealed how earlier ordering because of the situation had boosted revenues: “Retailers and online booksellers significantly increased stock levels over previous years to ensure they have sufficient stock for Christmas given the supply chain problems. Our first-half revenues have therefore been boosted by customers ordering earlier than in previous years.” 

Both the consumer and non-consumer divisions enjoyed “outstanding” performances, Newton said in his report.  

The consumer division showed 29% revenue growth, to £62.9m from £48.6m in 2020.  Profit before taxation and highlighted items for consumers increased to £8.4m from £2.7m in 2020. Bloomsbury’s recent acquisitions have also boosted the company. Growth in organic revenue was 23%, with the two purchases during the first half of the year, Red Globe Press and Head of Zeus, contributing revenue of £4.4m. 

There was a strong performance throughout with adult revenue up 27% to £23.9m (previously £18.8m) and profit before taxation and highlighted items up 23% to £1.3m, a rise from £1.1m. Bestsellers during the period included Tom Kerridge’s Outdoor Cooking, Women's Prize winner Piranesi by Susanna Clarke and The Song of Achilles by Madeline Miller. Newton told The Bookseller how TikTok had boosted Miller’s backlist in particular, saying: “It has been an absolute phenomenon, we’ve had both the hardback and paperback of hers in the bestseller list in recent weeks. It has been incredible and we’re very lucky to have it.” 

The children’s trade performance was even higher with revenue growth of 31% to £39m from £29.8m the previous year and profit before taxation and highlighted items up £5.4m to £7.1m, a rise from £1.7m in 2020. Key titles included Sarah J Maas' front and backlist titles, with 130% growth as well as The Priory of the Orange Tree by Samantha Shannon. 

Across the non-consumer division there was also an “excellent” performance, with revenue growth of 27% to £37.7m, up from £29.7m in 2020. Non-consumer profit before taxation and highlighted items rose by 220% to £4.6m compared to 2020 when it was £1.4m with Bloomsbury Digital Resources singled out for particular praise. Newton told The Bookseller: “On the academic side our sales have been outstanding particularly on Bloomsbury Digital Resources which has worked well as universities have pivoted online.” 

In the report, he wrote: “Bloomsbury Digital Resources achieved 44% revenue growth year on year and is on track to deliver our five-year target of £15m revenue for the full year. Our strategy enables us to deliver growth from the ongoing shift to digital learning, excellent digital products and the quality of platforms and infrastructure, with a 56% increase in the number of customers year on year.” 

Overall, Newton believes the altered reading habits from the pandemic has boosted the company’s fortunes. “It's a good set of results and all of us in the industry are lucky that the surge in reading is continuing even as the situation evolves,” he told The Bookseller.  

“I do think lockdown contributed to this. People being trapped at home and the boom in reading over the last 18 months and the fact that society has opened up somewhat doesn’t alter the fact that many people are planning to work from home three or even five days a week. The factors that led to the original surge will continue to prevail indefinitely because there is no reversing the old norms because even when eventually things hopefully settle down many office workers will still be working a few days a home each week... we’ll hang on to some growth.” 

Looking ahead, he will continue to monitor the supply chain issues particularly in regards to over-ordering. “There could be knock-on effects from the supply chain crisis with higher returns and earlier ordering than usual so we’re mindful of those possibilities but not unduly concerned at this stage.” 

He added: “My overall feeling is that we’ve been fortunate in book publishing to have benefitted in the lockdown and provided people with means of escape, education and inspiration in this unexpected way.” 

These results follow an "outstanding" financial year and “record results” reported in June, as preliminary audited figures showed sales rose 14% and profits before tax up 22% year on year in the 12 months to 28th February 2021.