Bloomsbury Publishing talks up second half after earning slide

The London-listed company said revenues for the six months ended 31 August slipped to £71.3m from £75.3m year-on-year, while profit before tax stood at £1.3m, falling from £1.6m.

Diluted earnings per share, excluding highlighted items, fell to 2.74p from 3.14p, while diluted earnings per share slid to 1.28p from 1.62p.

Cash rose by £3.1m to £20.1m at period end, and the board declared a 6% rise in the interim dividend per share to 1.28p.

On the operational front, in the non-consumer division Bloomsbury reported an “excellent” academic and professional performance, with revenue there up 9% and profit before taxation and highlighted items improving to £1.8m from £0.1m.

Total non-consumer revenues were 6% higher at £29.9m, while ‘Bloomsbury Digital Resources (BDR) 2020’ revenues were 73% higher at £3.8m, with that division moving into profit.

BDR 2020 partnerships with Taylor & Francis and Human Kinetics were said to be in development, with the new National Theatre collection included in Drama Online.

In the consumer division, Bloomsbury said its ‘consumer frontlist’ was 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 profit before tax and highlighted items fell to £0.6m from £3.1m year-on-year, while consumer revenue slipped to £41.5m from £47m.

The company said it saw a “good” adult trade performance, with revenue up 2% to £16.2m, although it swung to a loss before taxation and highlighted items of £0.1m from a profit of £0.4m year-on-year.

Its board said it was delivering a transformation in its adult sector, with revenue growth against a strong comparative last year, which included what it described as “exceptional” cookery backlist sales.

Children's trade delivered profit before taxation and highlighted items of £0.8m, dropping from £2.8m, and revenue of £25.3m, down from £31.1m.

In children's, Harry Potter and the Goblet of Fire Illustrated Edition by J.K. Rowling and Jim Kay, and Sarah J. Maas' Crescent City: House of Earth and Blood were to be in the second half.

Last year, the board noted that the first half included two Sarah J. Maas frontlist titles, compared to one this year.

Sales of Harry Potter titles remained strong following the 20th anniversary year in 2017-2018, with the board noting that in context, first half sales were 13% higher than in 2016-2017, and 16% below last year.

It highlighted its new audio division, with an expert team focusing on production of key titles, launching with the Audible bestseller, The Madness of Crowds, narrated by its author Douglas Murray.

The company also appointed Paul Baggaley as editor-in-chief of Bloomsbury Adult, describing him as “one of the most highly regarded figures” in the industry, joining the company from Picador.

“Bloomsbury had an encouraging first half,” said chief executive officer Nigel Newton

“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, Newton said the company’s “very strong” list for the second half, with 10 recent, current and potential bestsellers, included 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 £3.1m 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.”

Bloomsbury Publishing said it was performing in line with the board's expectations for the full year.

As at 1237 GMT, shares in Bloomsbury Publishing was down 4.04% at 249.50.