Bloomsbury Publishing Share Discussion Threads

[gswredland] 01/6/2023 16:27

Lots of stock with even better prospects are falling to

[panache1] 01/6/2023 16:22

Just bought some more

[panache1] 01/6/2023 16:20

Cannot understand it

[nigelog] 01/6/2023 15:55

A couple of weeks ago this was £4.50 per share, now looking like dropping below £4.00 why.

[elsa7878] 31/5/2023 19:08

How about a share buyback.....

SP did badly today as the market was down heavily. Nothing to do with BMY.

I always regretted selling a year or so ago and have been looking for an opportunity to buy back in.

[adamb1978] 31/5/2023 19:06

Looking at their numbers, they could easily spend £150m - £200m on acquisitions over the next year or two and it not be a problem...

[adamb1978] 31/5/2023 18:55

Hi Saltwood

I agree - I think we'll see an acquisition within a couple months and probably relatively material too. Perhaps £20m - £40m?

re AI: the main view which I've read is that because they sell to academic institutions rather than students its less of a risk for them. However worth asking via the Q&A on the IMC presentation.

Adam

[saltwood] 31/5/2023 18:37

These are great results from a very well run company and I am a happy long term holder. Unless I missed it I was surprised not to see any explicit response to the current AI debate. Does anyone have a view on this? Also, reading between the lines and given cash is now above £50m again, I’m assuming an imminent acquisition which may explain Mr Market’s shy response to today’s results!

[elsa7878] 31/5/2023 18:05

I like to strip out the net cash which is approx 62p per share, so reduce the share price to 350'ish and then on 30p eps(amortisation of acquired intangibles and goodwill is merely an accounting exercise - you don't pay for an acquisition twice), it puts it on a pe of under 12. Good value imho.

[adamb1978] 31/5/2023 16:26

Agreed EI. And as I mentioned above, BMY don't adjust out share based payments which a lot of companies do either

[essentialinvestor] 31/5/2023 16:25

pre exceptional is what I look at, some investors like Terry Smith say if
there are frequent exceptional charges it's not always a positive indicator.

But many companies now have frequent cost cutting and efficiency programs pretty
much ongoing.

[adamb1978] 31/5/2023 15:51

Trident

More people use investment decisions based on pre-exceptional EPS in my view. Take whichever approach you wish. Its also cheap on a FCF multiple basis, but I haven't checked your figures (i.e. generally use FCF yield and then normalise for working cap which can be +ve one year and -ve the next, and other lumpy items)

Adam

[trident5] 31/5/2023 10:33

Adam, EPS is 24.5p, adjusted EPS is 30.56p. It was you who wrongly quoted the EPS figure by omitting the word "adjusted", which seems far more misleading.

The adjustments amount to c£30m over the last 10 years (about half the dividend payout).

It consistently acquires companies and those costs should be considered when analysing its performance.

And yes lots of companies do it - Munger calls it BS earnings.

EV = c £284m
FCF = c £25m

So, it's on an EV/FCF multiple of about 11.

[nigelog] 31/5/2023 10:13

Not sure how it works but maybe Bloomsbury has sounded out its big investors about a large takeover, and a rights issue is coming? Because the share price is not going up as it should be with the results.

[adamb1978] 31/5/2023 09:03

Trident

Not sure whether you're being deliberately difficult but the announcement says:

Adjusted diluted earnings per share - 30.56p
Diluted earnings per share - 24.54p

The difference is predominantly amortisation of intangibles acquired in M&A deals.

You constantly quoting the 24.54p as though its a definitive, single answer comes across as an attempt to mis-lead people.

BMY's adjustments are already quite conservative as lots of companies adjust out share-based payments. These would add a further c.10% to EPS.

Adam

[trident5] 31/5/2023 08:44

Adam - EPS was 24.54p

[adamb1978] 31/5/2023 08:21

Yes, excellent results. ROCE now in the high teens % and ROE in mid-teens.

Dividend increase wasnt as generous as could have been and the cash balance is huge (15% of market cap) which makes me wonder whether they have a significant acquisition in the pipe...

One small wrinkle is admin costs which have gone up substantially. Need to have a read to try to understand why that might be

EPS of c30p implies PE of 14x. Given their track record, price looks very undemanding at 420p.

[trident5] 31/5/2023 08:13

18BT - EPS was 24.54p.

[nigelog] 31/5/2023 07:44

Cannot see any reason why the shares were down yesterday, no surprises in today’s announcement. The Harry Potter TV series has to be very good news for them.

[18bt] 31/5/2023 07:18

Slightly ahead of all main metrics than the market forecasts which were adjusted for the last positive ye update. EPS now above 30p, making share price of 410 look v good value IMHO.
Cash now above £50m out of market cap of only £335m. With rising interest income EBITDA now looks the wrong metric to use for a lot of companies.

[panache1] 31/5/2023 07:13

Excellent results (yet again)

[gswredland] 30/5/2023 16:09

Reporting tomorrow

[babbler] 30/5/2023 16:04

Depends if they decide to utilise it themselves...

[essentialinvestor] 30/5/2023 15:47

Before Chat Gpt grabbed news headlines a few weeks back this looked very strong,
as I don't work in publishing could not begin to fathom if AI possibly impacts
their educational publishing business medium to longer term?.

[panache1] 30/5/2023 15:36

420 now...what do others know that we don't ?