Share Name Share Symbol Market Type Share ISIN Share Description
Bloomsbury Pub. LSE:BMY London Ordinary Share GB0033147751 ORD 1.25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +2.00p +0.83% 242.00p 238.00p 240.00p 240.00p 235.00p 235.00p 158,679 16:35:01
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Media 161.5 11.6 12.2 19.9 182.30

Bloomsbury Publishing PLC Final Results

22/05/2018 11:43am

UK Regulatory (RNS & others)


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RNS Number : 7924O

Bloomsbury Publishing PLC

22 May 2018

22 May 2018

BLOOMSBURY PUBLISHING PLC

("Bloomsbury" or the "Group")

Audited Preliminary Results for the year ended 28 February 2018

Bloomsbury today announces audited results for the year ended 28 February 2018.

Financial Highlights

-- Total revenues grew by 13% to GBP161.5 million (2016/17: GBP142.6 million). Revenues from overseas customers grew by 16% to GBP101.2 million, and are now 63% of total revenues

-- Profit before taxation and highlighted items* grew by 10% to GBP13.2 million (2016/17: GBP12.0 million), above market expectations

-- Proposed final dividend of 6.36p per share, making a total dividend of 7.51p per share for the year, up 12% (2016/17: 6.7p per share)

-- Diluted earnings per share, excluding highlighted items*, grew by 10% to 13.92p (2016/17: 12.63p)

-- Strong cash conversion of 161% (2017: 180%), with net cash of GBP25.4m at 28 February 2018 (2017: GBP15.5m)

-- Strong autumn book list and acquisition of I. B. Tauris & Co. Ltd ("IBT") will mean performance for 2018/19 will be well ahead of our previous expectations

Operational Highlights

Consumer division

-- The Consumer division had an exceptional year, due primarily to a strong Children's and Cookery performance. Revenue increased 20% to GBP102.2m (2016/17: GBP85.4m) and operating profit before highlighted items increased by 21% to GBP11.4m (2016/17: GBP9.4m**)

-- Strong list for the year ahead includes A Court of Frost and Starlight by Sarah J. Maas, a major new cookery title from Tom Kerridge, the illustrated version of The Tales of Beedle the Bard by J.K. Rowling and the film tie-in edition of The Guernsey Literary and Potato Peel Pie Society

   --     Children's 

o Revenue for the year increased by 24% to GBP69.2m (2016/17: GBP55.9m)

o Sales of the Harry Potter series in the year grew by 31%, including Harry Potter and the Prisoner of Azkaban Illustrated Edition

o Strong sales of Sarah J. Maas titles included A Court of Wings and Ruin

   --     Adult 

o Revenue increased by 12% year on year to GBP33.1m (2016/17: GBP29.5m)

o Highlights included Tom Kerridge's Lose Weight for Good

Non-Consumer division

-- The Non-Consumer division saw revenues grow by 4% to GBP59.3m (2016/17: GBP57.2m). Operating profit before highlighted items was GBP1.7m (2016/17: GBP2.6m**) including GBP1.2m net more investment in Bloomsbury 2020, a foreign exchange charge that was GBP0.7 million higher year on year and a strong rights performance in the prior year

-- The Bloomsbury 2020 strategy to leverage our academic and professional assets into the academic library market, is delivering well with digital resource revenues up 20% to GBP4.7 million. Five major new digital resources were launched in the year, ahead of plan. On track to deliver targeted GBP5 million of profit and GBP15 million revenue in 2021/22

-- Acquisition of IB Tauris in April 2018 for GBP5.8 million. Its quality academic IP will enhance our digital resources

Bigger Bloomsbury

As Bloomsbury continues to focus on quality revenues and building upon the strong momentum achieved last year, we have a number of key growth initiatives that, together with our acquisition of IBT, the Board expects will lead to our performance for 2019/20 onwards being well ahead of our previous expectations. The main initiatives are:

   1.    Growing the profits of the Adult division; 
   2.    Growing the profits of the Academic & Professional division; 

3. Reducing our finished goods stock further by continuing to roll out globally efficiencies already made in the UK business;

4. Increasing the focus on Bloomsbury's nine biggest assets, starting with Harry Potter, Sarah J. Mass, Tom Kerridge and the lead title in each division from both the US and UK editorial lists to boost front list and back list performance;

   5.    Maximising the success of Bloomsbury Digital Resources; 
   6.    Accelerating the growth of Bloomsbury's sales in the USA, Australia and India; and 

7. Developing Bloomsbury China: China Global Publishing - publishing books, in English, as a publishing partner in the West for major Chinese publishers, following signing of Memorandum of Understanding in May 2018.

Commenting on the results, Nigel Newton, Chief Executive, said:

"I am delighted with the performance of our business over the last twelve months. It has been a great year that has put Bloomsbury in a very strong and exciting position. We have seen significant progress in both segments of our business.

In Consumer, we saw revenue growth of 20%, increasing across all territories, driven by Children's and Cookery titles. Tom Kerridge's Lose Weight for Good was a notable standout, selling the most copies in a week in January since records began. In the milestone twentieth anniversary year for Harry Potter we continued to demonstrate our ability to find inventive and engaging ways to bring the story to life for readers, publishing a House edition of Harry Potter and the Philosopher's Stone and the illustrated Harry Potter and the Prisoner of Azkaban and Fantastic Beasts and Where to Find Them. In Non-Consumer, our Academic & Professional division continues to benefit from the Bloomsbury 2020 strategic growth initiative as we look to accelerate digital revenues significantly and become a leading publisher in the B2B academic and professional market.

Bigger Bloomsbury marks the next exciting step in our growth, focussing on our key growth drivers with targeted strategies across the business to help grow our revenues and improve our margins over the next five years."

Notes

* Highlighted items comprise amortisation of acquired intangible assets and in the prior year other one-off significant non-cash charges and major one-off initiatives including legal and other professional costs relating to acquisitions and restructuring costs.

** Prior year divisional profits are amended to reflect a change in the allocation of central costs in order to provide a better understanding of underlying results. Group results are unaffected.

Forward-looking statements: Statements contained in this Annual Results Announcement are based on the knowledge and information available to the Company's directors at the date it was prepared and therefore the facts stated and views expressed may change after that date. By their nature, the statements concerning the risks and uncertainties facing the Company in this Annual Results Announcement involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. To the extent that this Annual Results Announcement contains any statement dealing with any time after the date of its preparation such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur. The Company undertakes no obligation to update these forward-looking statements.

For further information, please contact:

 
                                   +44 (0) 20 7631 
 Bloomsbury Publishing Plc          5630 
 Nigel Newton, Chief Executive 
  Wendy Pallot, Group Finance 
  Director 
                                   +44 (0) 203 727 
 FTI Consulting                     1000 
 Charles Palmer / Dwight Burden    SCBloomsbury@fticonsulting.com 
  / Emma Hall / Leah Dudley 
 

Chief Executive's statement

Overview

The year ended 28 February 2018 was an exceptional year for Bloomsbury Publishing. The Consumer and Non-Consumer divisions both grew revenues, resulting in total Group revenues being 13% ahead of last year at GBP161.5 million (2016/17: GBP142.6 million). This growth came particularly from Children's and Cookery titles. Group profit before tax and highlighted items increased 10% to GBP13.2 million (2016/17: GBP12.0 million). In 2016 we announced the Bloomsbury 2020 strategy to leverage our academic and professional IP assets into the academic library market, growing more high quality digital subscription income. This strategy is delivering well, with a 20% increase year on year in digital resource revenues to GBP4.7 million. We launched five major new digital resources in the year and four new modules attached to existing resources, ahead of plan. Group profit includes GBP1.2 million of net investment in Bloomsbury 2020 (2016/17: Nil).

We are focussed on making the best use of our capital and to this end, as well as investing in our digital resources, in April 2018 we acquired the academic publisher I. B. Tauris & Co. Ltd ("IBT") for GBP5.8 million. Additionally, with Bloomsbury's strong balance sheet, we have been able to recommend a 14% increase in final dividend.

Due to the strong trading in the year, the Group was able to make a management bonus provision of GBP2.3 million (2016/17: GBP1.0 million). The highlighted item of GBP1.6 million was the amortisation of acquired intangible assets. The effective rate of tax for the year, excluding highlighted items, was unchanged at 22%. Diluted earnings per share, excluding highlighted items, grew 10% to 13.92 pence (2016/17: 12.63 pence). Including highlighted items, profit before tax was GBP11.6 million (2016/17: GBP9.4 million) and diluted earnings per share was 12.06 pence (2016/17: 9.81 pence).

Strategy

Our strategy is to leverage new and our existing title rights to publish authors and works of excellence and originality, combining tradition and technology and establishing solid profit streams. Our main objectives are to:

   1.      Grow our Non-Consumer revenues so that they match or exceed our Consumer revenues. 

Non-Consumer revenues have higher margins, are a more predictable revenue stream, are less reliant on the high street customers and have greater digital opportunities. Non-Consumer revenues grew by 4%, although they have reduced from 40% of total revenues to 37% as a result of the exceptional growth in Consumer revenues in the year. The digital resources strategy leverages both existing and new IP and is on track to deliver the GBP5 million of profit and GBP15 million of revenue in 2021/22 to which we committed. Net investment in digital resources in the 2017/18 income statement was GBP1.2 million, less than previously guided, and was the year of maximum incremental investment in this strategy. The newly acquired IBT provides more quality academic IP to enhance our digital resources. IBT is expected to contribute GBP3.5m of revenue and about GBP0.3 million of profits in our ten months of ownership in 2018/19 (before highlighted acquisition and reorganisation costs). There will be significant synergies gained from integrating this business into Bloomsbury.

2. Expand internationally in English language markets reducing the Group's reliance on the UK market. The global English language market is growing each year as more people learn English as the world's medium of communication. Academic titles usually have global appeal, so our strategy to grow Non-Consumer revenues should increase overseas income. Overseas revenues by destination grew by 16% to GBP101.2 million and are now 63% of total Group revenues (2016/17: 61%). This is a key strength.

3. Continue to attract, spot and retain high quality talent in our Consumer division, and remain the home of some of the world's best loved and most exciting authors. While we recognise the importance of growing reliable Non-Consumer revenues, we will always strive to discover, nurture and champion brilliant Consumer talent. The division had a particularly strong year growing revenues across all territories, and a core part of our strategy will always focus on finding excellent works and looking at new ways to leverage existing title rights.

Cash

Cash generation was strong with cash at year end of GBP25.4 million (2017: GBP15.5 million) and cash conversion of 161% (2017: 180%). Our focus on working capital continues - inventories have reduced by 5% or GBP1.3 million year on year, on a like-for-like basis, despite the significant increase in revenues. We are working to achieve a 5% reduction in inventory, using constant currencies, in 2018/19, excluding additions from acquisitions. Our strategic priority for cash is organic investment to grow and enhance our existing business. Including GBP1.7 million of capital expenditure, during the year we invested a total of GBP2.9 million of cash in the Bloomsbury digital resources strategy. The GBP5.8 million consideration for the acquisition of IBT was paid after the year end. GBP5.0 million was paid in cash in April and May 2018 and the balance will be paid subject to working capital and other adjustments over up to two years. We continue to assess potential acquisitions actively.

Dividend

The Group has a progressive dividend policy while aiming to keep dividend earnings cover in excess of two. Investment in Bloomsbury Digital Resources is leading to earnings cover falling slightly below that level in the short-term, but the dividend is underpinned by strong cash cover. The Board has committed during this period of investment to maintain its progressive dividend policy on the basis that earnings cover will improve as the return on our investment accrues. The Directors are recommending a final dividend of 6.36 pence per share, which subject to Shareholder approval at our AGM on 18 July 2018, will be paid on 24 August 2018 to Shareholders on the register at the close of business on 27 July 2018. Together with the interim dividend, this makes a total dividend for the year ended 28 February 2018 of 7.51 pence per share, a 12% increase on the 6.7 pence dividend for the year ended 28 February 2017. The proposed increase in final dividend this year is higher than in previous years and moves the total dividend to a higher base, reflecting the Board's confidence in the success of its strategy, and in particular the growth in Digital Resource profits. Including the proposed 2017/18 dividend, over the past thirteen years the dividend has increased at a compound annual growth rate of 7.3%. We have also permanently brought forward the payment date for our final dividends by about a month compared to our historic timetable.

Consumer Division

The Consumer division, which consists of Adult and Children's trade publishing, has had an exceptional year with revenue for the division growing by 20% to GBP102.2 million (2016/17: GBP85.4 million). Operating profit before highlighted items increased by 21% to GBP11.4 million (2016/17: GBP9.4 million). There was good revenue growth in all territories: 29% in Australia, 23% in the US, 43% in India and 28% in the UK (all at constant currencies). Our excellent authors won the most important literary awards, notably the Man Booker Prize with Lincoln in the Bardo by George Saunders, the National Book Award with Sing, Unburied, Sing by Jesmyn Ward and the Costa Children's Book Award for The Explorer by Kate Rundell.

The adult trade team achieved 12% growth in Adult revenues to GBP33.1 million, with particular success in Cookery sales. Tom Kerridge's Lose Weight for Good was an extraordinary seller. It reached overall number one on UK Nielsen Bookscan for four weeks. The book sold the most copies in a week in January since Nielsen Bookscan records began. George Saunders' Lincoln in the Bardo achieved a total of twenty-eight recommendations as Book of the Year, including by the Sunday Times. Norse Mythology by Neil Gaiman has been in the Sunday Times paperback Fiction chart since its publication in February. Commonwealth by Ann Patchett was the bestselling paperback in the division in the year. It won International Book of the Year at the Australian Book Industry Awards. Our crime and thriller imprint Raven Books was launched in 2017 and now has five published titles; it opens a new fiction market to Bloomsbury. Our flagship debut novel The Silent Companions by Laura Purcell is selling well.

Children's sales growth of 24% to GBP69.2 million included a 31% growth in Harry Potter revenues. On 26 June 2017 we celebrated the twentieth anniversary of Harry Potter and the Philosopher's Stone by publishing special editions of Harry Potter and the Philosopher's Stone, the illustrated Harry Potter and the Prisoner of Azkaban and Fantastic Beasts and Where to Find Them, and two titles to tie in with the stunning British Library Harry Potter exhibition. The standard edition of Harry Potter and the Philosopher's Stone was the number ten bestselling children's book of the year on UK Nielsen Bookscan, twenty years after it was first published - every year these classics reach a new generation of readers.

Excluding Harry Potter, Children's sales grew by 14% year on year. Sarah J. Maas sales continue to grow with the original Throne of Glass selling over one million copies worldwide during 2017. She was number one on the New York Times bestseller list and the UK Nielsen Bookscan chart with the publication during the year of A Court of Wings and Ruin, the third book in this series. Other highlights on the Children's list included the bestselling children's fiction debut of 2017 on the UK Nielsen Bookscan - Kid Normal by Greg James and Chris Smith. Kate Pankhurst's Fantastically Great Women Who Changed the World was the bestselling children's general non-fiction title of 2017 on UK Nielsen Bookscan.

As a testament to our strength in this area, Bloomsbury won Children's Publisher of the Year at the British Book Awards in May.

Non-Consumer Division

The Non-Consumer division consists of Academic & Professional, Special Interest and Content Services. Revenues in the division increased by 4% to GBP59.3 million (2016/17: GBP57.2 million). Adjusted operating profits were GBP1.7 million (2016/17: GBP2.6 million). The reduction in profit reflects the ongoing investment in Bloomsbury's 2020 initiative, which peaked at a net GBP1.2 million in the 2017/18 income statement (2016/17: breakeven), a foreign exchange charge that was GBP0.7 million higher year on year and lower rights income. Academic & Professional revenues were 1% lower than prior year as a result of the strong number of rights deals in 2016/17 and a print market decline in the UK Education sector, which makes up 4% of the divisions revenues. Excluding rights and services, the division's revenues grew by 2%.

The strategic growth initiative Bloomsbury 2020 which we announced in May 2016 and is now known as Bloomsbury Digital Resources, will make Bloomsbury a leading non-consumer publisher in the B2B academic and professional information market and significantly accelerate the growth of digital revenues. During the year ended 28 February 2018, the focus of this plan was to expand the sales and marketing team, to deliver the budgeted number of new digital resource products on schedule and to roll-out back-office systems including Salesforce. All of this and more was achieved.

Geographically, 59% of digital resources revenue originated outside the UK, the largest territory being North America at 38% (2016/17: 33%), where revenue grew by 47% year on year. We launched five new digital resources during the year: Bloomsbury Design Library, Bloomsbury Cultural History, Bloomsbury Food Library, International Arbitration, and Bloomsbury Encyclopaedia of Philosophers - two more than originally planned. The pipeline is robust - over the next year we will be launching Screen Studies, Bloomsbury Early Years, Bloomsbury Architecture Library, Fashion Video Workshop, and Applied Visual Arts Library, as well as new modules to Drama Online. On August 31(st) to catch the start of the new university year we will be launching new more flexible ways for our customers to buy from us in the form of "Title by Title" acquisition and the Evidence Based Acquisition model. "Title by Title" will make available for the first time some 4,000 backlist Bloomsbury Academic titles as part of the digital resource programme. These titles are not currently in one of our forty existing Bloomsbury Collections subject areas, and therefore "Title by Title" unlocks an important new revenue stream.

In April 2018, Bloomsbury was appointed as publishing partner to the British Film Institute ("BFI") to develop and manage the BFI Publishing programme. Bloomsbury's unique position as a trade and academic publisher aligns perfectly with the range of the BFI Publishing programme and the BFI's strategic goals, to engage with young and diverse audiences and to help develop the next generation of British film talent. Bloomsbury will be able to extend the reach and awareness of BFI Publishing to students and scholars, as well as to the global film and television community. Bloomsbury has an established film and media list that perfectly complements the BFI programme, and has recently launched a digital resource for moving image studies, Screen Studies.

The Special Interest division focusses on publishing in print and in digital for selected communities of interest. It has enjoyed an exceptional year with its sub-divisions (wildlife, sport, reference, military, health and fitness, and religion) performing well. Stand-out titles include Douglas Murray's The Strange Death of Europe, Anita Bean's The Runner's Cookbook, Muir Gray and Diana Moran's Sod Sitting, Get Moving and Ian Herbert's Quiet Genius.

Our initiative to develop board games as part of Osprey has delivered good results with revenues up 10% to GBP1.5 million. Sales of the new edition of Escape from Colditz have exceeded 17,000 sets already. In May 2018, we signed a memorandum of understanding with China Youth Press of Beijing and their international division in London, for the creation of China Global Publishing, to promote, sell and distribute English language editions of titles for Chinese publishers. Our other new investment areas in Special Interest include Green Tree for health and fitness, Sigma for popular science, Conway for outdoor, adventure and activities, Herbert Press for ceramics and craft and the digital development of Writers & Artists.

Board changes

As announced, we welcome to the Board Penny Scott-Bayfield, who will be joining Bloomsbury as Group Finance Director on 16 July 2018, succeeding Wendy Pallot who will be leaving on 18 July 2018. There are no further details to disclose in respect of the appointment of Penny in accordance with Listing Rule LR9.6.13R. I would like to thank Wendy for her immense contribution to Bloomsbury. I shall miss her.

Richard Charkin is standing down from the Board and his executive responsibilities at the end of May 2018 and will continue to work for the Company as a consultant on a number of important strategic projects including Bloomsbury China which he initiated. I would like to thank Richard for his incomparable contribution to Bloomsbury over the last eleven years. We would not be the company we are today without him. I look forward to working with him on big projects in his new role for us.

Outlook

We expect to launch five further major digital resources in 2018/19 as well as making additions to existing modules. Our recently announced publishing partnerships with the British Film Institute and Spotify will also add value in the forthcoming year. Our strong book list this year includes the latest from Sarah J. Maas A Court of Frost and Starlight which went straight to Number 1 in the UK on 9(th) May, the illustrated version of The Tales of Beedle the Bard by J.K. Rowling, the twentieth anniversary edition of Harry Potter and the Chamber of Secrets, a tie-in with the release as a film of The Guernsey Literary and Potato Peel Pie Society, Sea Prayer by Khaled Hosseini and To Obama by Jeanne Marie Laskas. In addition, Bloomsbury is publishing a major new cookery book with Tom Kerridge.

As a result of these and an expected extra GBP0.3 million profit contribution from the acquisition of IBT (excluding highlighted acquisition and reorganisation costs) the Board believes the Group's performance will be well ahead of our previous expectations for the forthcoming 2018/19 year.

Bigger Bloomsbury

Our significant emphasis on adding shareholder value has crystallised in the "Bigger Bloomsbury" initiative, where we are focussing on our key growth drivers with targeted strategies across the business to help grow our revenues and improve profit margins. This, together with our acquisition of IBT, is expected to lead to performance for 2019/20 being well ahead of our previous expectations. The key growth drivers are as follows:

   1.    Growing the profits of the Adult division; 
   2.    Growing the profits of the Academic & Professional division; 

3. Reducing our finished goods stock further by continuing to roll out globally efficiencies already made in the UK business;

4. Increasing the focus on Bloomsbury's nine biggest assets, starting with Harry Potter, Sarah J. Mass, Tom Kerridge and the lead title in each division from both the US and UK editorial lists to boost back list and front list performance;

   5.    Maximising the success of Bloomsbury Digital Resources; 
   6.    Accelerating the growth of Bloomsbury's sales in the USA, Australia and India; and 

7. Developing Bloomsbury China: China Global Publishing - publishing books, in English, as a publishing partner in the West for major Chinese publishers, following signing of Memorandum of Understanding in May 2018.

Audited Consolidated Income Statement

FOR THE YEARED 28 FEBRUARY 2018

 
                                              Year ended    Year ended 
                                             28 February   28 February 
                                                    2018          2017 
                                     Notes       GBP'000       GBP'000 
----------------------------------  ------  ------------  ------------ 
 Revenue                               2         161,510       142,564 
 Cost of sales                                  (77,155)      (67,686) 
----------------------------------  ------  ------------  ------------ 
 Gross profit                                     84,355        74,878 
 Marketing and distribution 
  costs                                         (22,814)      (20,977) 
 Administrative expenses                        (50,000)      (44,499) 
----------------------------------  ------  ------------  ------------ 
 Operating profit before 
  highlighted items                               13,114        11,997 
 Highlighted items                     3         (1,573)       (2,595) 
----------------------------------  ------  ------------  ------------ 
 Operating profit                                 11,541         9,402 
 Finance income                                      151           138 
 Finance costs                                      (48)          (96) 
----------------------------------  ------  ------------  ------------ 
 Profit before taxation and 
  highlighted items                               13,217        12,039 
 Highlighted items                     3         (1,573)       (2,595) 
----------------------------------  ------  ------------  ------------ 
 Profit before taxation                           11,644         9,444 
 Taxation                              4         (2,574)       (2,091) 
----------------------------------  ------  ------------  ------------ 
 Profit for the year attributable 
  to owners of the Company                         9,070         7,353 
----------------------------------  ------  ------------  ------------ 
 
 
 Earnings per share attributable 
  to owners of the Company 
 Basic earnings per share              6          12.15p         9.83p 
 Diluted earnings per share            6          12.06p         9.81p 
----------------------------------  ------  ------------  ------------ 
 

Audited Consolidated Statement of Comprehensive Income

FOR THE YEARED 28 FEBRUARY 2018

 
                                                Year          Year 
                                               ended         ended 
                                         28 February   28 February 
                                                2018          2017 
                                             GBP'000       GBP'000 
--------------------------------------  ------------  ------------ 
 Profit for the year                           9,070         7,353 
 Other comprehensive income 
 Items that may be reclassified 
  to the income statement: 
 Exchange differences on translating 
  foreign operations                         (3,943)         4,587 
 Items that may not be reclassified 
  to the income statement: 
 Remeasurements on the defined 
  benefit pension scheme                          27          (58) 
--------------------------------------  ------------  ------------ 
 Other comprehensive income for 
  the year net of tax                        (3,916)         4,529 
 Total comprehensive income for 
  the year attributable to the owners 
  of the Company                               5,154        11,882 
--------------------------------------  ------------  ------------ 
 

Audited Consolidated Statement of Financial Position

AS AT 28 FEBRUARY 2018

 
                                           28 February   28 February 
                                                  2018          2017 
                                   Notes       GBP'000       GBP'000 
--------------------------------  ------  ------------  ------------ 
 Assets 
 Goodwill                                       42,139        42,548 
 Other intangible assets                        19,885        21,214 
  Investments                                      300             - 
 Property, plant and equipment                   2,083         2,248 
 Deferred tax assets                             2,092         4,808 
 Trade and other receivables         7           1,530         1,951 
--------------------------------  ------  ------------  ------------ 
 Total non-current assets                       68,029        72,769 
--------------------------------  ------  ------------  ------------ 
 
 Inventories                                    26,677        28,611 
 Trade and other receivables         7          76,857        75,808 
 Cash and cash equivalents                      25,428        15,478 
--------------------------------  ------  ------------  ------------ 
 Total current assets                          128,962       119,897 
--------------------------------  ------  ------------  ------------ 
 Total assets                                  196,991       192,666 
--------------------------------  ------  ------------  ------------ 
 
 Liabilities 
 Retirement benefit obligations                    170           255 
 Deferred tax liabilities                        1,993         2,225 
 Other payables                                      -         2,191 
 Provisions                                         57            43 
--------------------------------  ------  ------------  ------------ 
 Total non-current liabilities                   2,220         4,714 
--------------------------------  ------  ------------  ------------ 
 
 Trade and other payables                       55,185        47,365 
 Current tax liabilities                             -         1,265 
 Provisions                                         23            23 
 Total current liabilities                      55,208        48,653 
--------------------------------  ------  ------------  ------------ 
 Total liabilities                              57,428        53,367 
--------------------------------  ------  ------------  ------------ 
 Net assets                                    139,563       139,299 
--------------------------------  ------  ------------  ------------ 
 
 Equity 
 Share capital                                     942           942 
 Share premium                                  39,388        39,388 
 Translation reserve                             7,687        11,630 
 Other reserves                                  6,455         6,274 
 Retained earnings                              85,091        81,065 
--------------------------------  ------  ------------  ------------ 
 Total equity attributable to 
  owners of the Company                        139,563       139,299 
--------------------------------  ------  ------------  ------------ 
 

Audited Consolidated Statement of Changes in Equity

AS AT 28 FEBRUARY 2018

 
                                                                 Capital  Share-based  Own shares 
                    Share     Share  Translation     Merger   redemption      payment        held   Retained     Total 
                  capital   premium      reserve    reserve      reserve      reserve      by EBT   earnings    equity 
                  GBP'000   GBP'000      GBP'000    GBP'000      GBP'000      GBP'000     GBP'000    GBP'000   GBP'000 
---------------  --------  --------  -----------  ---------  -----------  -----------  ----------  ---------  -------- 
At 29 February 
 2016                 939    39,388        7,043      1,386           22        5,428         (7)     78,768   132,967 
---------------  --------  --------  -----------  ---------  -----------  -----------  ----------  ---------  -------- 
Profit for the 
 year                   -         -            -          -            -            -           -      7,353     7,353 
Other 
comprehensive 
income 
Exchange 
 differences 
 on translating 
 foreign 
 operations             -         -        4,587          -            -            -           -          -     4,587 
Remeasurements 
 on the defined 
 benefit 
 pension 
 scheme                 -         -            -          -            -            -           -       (58)      (58) 
---------------  --------  --------  -----------  ---------  -----------  -----------  ----------  ---------  -------- 
Total 
 comprehensive 
 income for the 
 year                   -         -        4,587          -            -            -           -      7,295    11,882 
Transactions 
 with owners 
Issue of shares         3         -            -        417            -            -           -          -       420 
Purchase of 
 shares by the 
 Employee 
 Benefit 
 Trust                  -         -            -          -            -            -     (1,196)          -   (1,196) 
Dividends to 
 equity holders 
 of the Company         -         -            -          -            -            -           -    (4,819)   (4,819) 
Share options 
 exercised              -         -            -          -            -            -         160      (160)         - 
Deferred tax 
 on share-based 
 payment 
 transactions           -         -            -          -            -            -           -       (19)      (19) 
Share-based 
 payment 
 transactions           -         -            -          -            -           64           -          -        64 
---------------  --------  --------  -----------  ---------  -----------  -----------  ----------  ---------  -------- 
Total 
 transactions 
 with owners 
 of the Company         3         -            -        417            -           64     (1,036)    (4,998)   (5,550) 
---------------  --------  --------  -----------  ---------  -----------  -----------  ----------  ---------  -------- 
At 28 February 
 2017                 942    39,388       11,630      1,803           22        5,492     (1,043)     81,065   139,299 
---------------  --------  --------  -----------  ---------  -----------  -----------  ----------  ---------  -------- 
Profit for the 
 year                   -         -            -          -            -            -           -      9,070     9,070 
Other 
comprehensive 
income 
Exchange 
 differences 
 on translating 
 foreign 
 operations             -         -      (3,943)          -            -            -           -          -   (3,943) 
Remeasurements 
 on the defined 
 benefit 
 pension 
 scheme                 -         -            -          -            -            -           -         27        27 
Total 
 comprehensive 
 income for the 
 year                   -         -      (3,943)          -            -            -           -      9,097     5,154 
Transactions 
 with owners 
Dividends to 
 equity holders 
 of the Company         -         -            -          -            -            -           -    (5,041)   (5,041) 
Deferred tax 
 on share-based 
 payment 
 transactions           -         -            -          -            -            -           -       (30)      (30) 
Share-based 
 payment 
 transactions           -         -            -          -            -          181           -          -       181 
---------------  --------  --------  -----------  ---------  -----------  -----------  ----------  ---------  -------- 
Total 
 transactions 
 with owners 
 of the Company         -         -            -          -            -          181           -    (5,071)   (4,890) 
---------------  --------  --------  -----------  ---------  -----------  -----------  ----------  ---------  -------- 
At 28 February 
 2018                 942    39,388        7,687      1,803           22        5,673     (1,043)     85,091   139,563 
---------------  --------  --------  -----------  ---------  -----------  -----------  ----------  ---------  -------- 
 

Audited Consolidated Statement of Cash Flows

FOR THE YEARED 28 FEBRUARY 2018

 
                                              Year ended    Year ended 
                                             28 February   28 February 
                                                    2018          2017 
                                                 GBP'000       GBP'000 
------------------------------------------  ------------  ------------ 
Cash flows from operating activities 
Profit for the year                                9,070         7,353 
Adjustments for: 
Depreciation of property, plant 
 and equipment                                       434           541 
Amortisation of intangible assets                  4,002         3,988 
Finance income                                     (151)         (138) 
Finance costs                                         48            96 
Share-based payment charges                          202            73 
Tax expense                                        2,574         2,091 
------------------------------------------  ------------  ------------ 
                                                  16,179        14,004 
Decrease in inventories                            1,399         1,334 
Increase in trade and other receivables          (2,529)       (2,873) 
Increase in trade and other payables               6,969         7,318 
------------------------------------------  ------------  ------------ 
Cash generated from operating activities          22,018        19,783 
Income taxes paid                                (3,049)       (1,009) 
------------------------------------------  ------------  ------------ 
Net cash generated from operating 
 activities                                       18,969        18,774 
------------------------------------------  ------------  ------------ 
Cash flows from investing activities 
Purchase of property, plant and equipment          (314)         (267) 
Purchases of intangible assets                   (2,808)       (2,628) 
Purchases of investments                                             - 
 Interest received                                 (300)           120 
------------------------------------------                ------------ 
                                                     139 
------------------------------------------  ------------  ------------ 
Net cash used in investing activities            (3,283)       (2,775) 
------------------------------------------  ------------  ------------ 
Cash flows from financing activities 
Equity dividends paid                            (5,041)       (4,819) 
Purchase of shares by the Employee 
 Benefit Trust                                         -       (1,196) 
Interest paid                                       (31)          (72) 
------------------------------------------  ------------  ------------ 
Net cash used in financing activities            (5,072)       (6,087) 
------------------------------------------  ------------  ------------ 
Net increase in cash and cash equivalents         10,614         9,912 
Cash and cash equivalents at beginning 
 of year                                          15,478         5,166 
Exchange (loss)/gain on cash and 
 cash equivalents                                  (664)           400 
------------------------------------------  ------------  ------------ 
Cash and cash equivalents at end 
 of year                                          25,428        15,478 
------------------------------------------  ------------  ------------ 
 

NOTES

1. Accounting policies

The above Audited financial information does not constitute statutory financial statements as defined in section 434 of the Companies Act 2006. The above figures for the year ended 28 February 2018 are an abridged version of the Group's financial statements which will be reported on by the Group's auditors before dispatch to the shareholders and filing with the Registrar of Companies and as such do not contain full disclosures under International Financial Reporting Standards ("IFRS"). The preliminary announcement was approved by the Board and authorised for issue on 22 May 2018.

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. The accounting policies applied in the year ended 28 February 2018 are consistent with those applied in the financial statements for year ended 28 February 2017 with the exception of a number of new accounting standards which have not had a material impact on the Group's results.

The Group's statutory financial statements for the year ended 28 February 2017 have been lodged with the Registrar of Companies. These financial statements received an audit report which was unqualified and did not include any reference to matters to which the auditors drew attention by way of emphasis without qualifying their report or a statement under section 498(2) or section 498(3) of the Companies Act 2006.

2. 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 four operating segments; Academic & Professional, Educational, Special Interest and Content Services. Educational has been aggregated with Academic & Professional to create one reportable segment. Both operating segments share very similar products, customers and sales behaviours.

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 results for the year ended 28 February 2017 have been restated to reflect a change in the allocation of central administration costs, in order to provide a better understanding of underlying divisional results. This change has not affected the consolidated Group result.

The analysis by segment is shown below:

 
                   Children's      Adult   Consumer       Academic    Special    Content   Non-Consumer   Unallocated      Total 
                        Trade      Trade                         &   Interest   Services 
                                                      Professional 
 Year ended 28        GBP'000               GBP'000                   GBP'000    GBP'000        GBP'000                  GBP'000 
 February 
 2018                            GBP'000                   GBP'000                                            GBP'000 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 External 
  revenue              69,150     33,071    102,221         36,517     21,308      1,464         59,289             -    161,510 
 Cost of sales       (34,128)   (18,264)   (52,392)       (14,834)    (9,491)      (438)       (24,763)             -   (77,155) 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 Gross profit          35,022     14,807     49,829         21,683     11,817      1,026         34,526             -     84,355 
 Marketing and 
  distribution 
  costs              (10,076)    (5,258)   (15,334)        (4,378)    (2,978)      (124)        (7,480)             -   (22,814) 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 Contribution 
  before 
  administrative 
  expenses             24,946      9,549     34,495         17,305      8,839        902         27,046             -     61,541 
 Administrative 
  expenses 
  excluding 
  highlighted 
  items              (13,323)    (9,777)   (23,100)       (17,666)    (6,614)    (1,047)       (25,327)             -   (48,427) 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 Operating 
  profit /(loss) 
  before 
  highlighted 
  items/ segment 
  results              11,623      (228)     11,395          (361)      2,225      (145)          1,719             -     13,114 
 Amortisation of 
  acquired 
  intangible 
  assets                    -       (18)       (18)        (1,368)      (182)        (5)        (1,555)             -    (1,573) 
 Other                      -          -          -              -          -          -              -             -          - 
 highlighted 
 items 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 Operating 
  profit /(loss)       11,623      (246)     11,377        (1,729)      2,043      (150)            164             -     11,541 
 Finance income             -          -          -              -          -          -              -           151        151 
 Finance costs              -          -          -              -          -          -              -          (48)       (48) 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 Profit/(loss) 
  before 
  taxation             11,623      (246)     11,377        (1,729)      2,043      (150)            164           103     11,644 
 Taxation                   -          -          -              -          -          -              -       (2,574)    (2,574) 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 Profit/(loss) 
  for 
  the year             11,623      (246)     11,377        (1,729)      2,043      (150)            164       (2,471)      9,070 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 Operating 
  profit /(loss) 
  before 
  highlighted 
  items/ segment 
  results              11,623      (228)     11,395          (361)      2,225      (145)          1,719             -     13,114 
 Depreciation             146         89        235            126         66          7            199             -        434 
 Amortisation of 
  internally 
  generated 
  intangibles             272        198        470          1,693        241         25          1,959             -      2,429 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 EBITDA before 
  highlighted 
  items                12,041         59     12,100          1,458      2,532      (113)          3,877             -     15,977 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 

*Restated

 
                   Children's      Adult   Consumer       Academic    Special    Content   Non-Consumer   Unallocated      Total 
                        Trade      Trade                         &   Interest   Services 
                                                      Professional 
 Year ended 28        GBP'000               GBP'000                   GBP'000    GBP'000        GBP'000                  GBP'000 
 February 
 2017                            GBP'000                   GBP'000                                            GBP'000 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 External 
  revenue              55,915     29,459     85,374         36,915     18,404      1,871         57,190             -    142,564 
 Cost of sales       (26,838)   (15,688)   (42,526)       (15,474)    (9,076)      (610)       (25,160)             -   (67,686) 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 Gross profit          29,077     13,771     42,848         21,441      9,328      1,261         32,030             -     74,878 
 Marketing and 
  distribution 
  costs               (8,751)    (5,034)   (13,785)        (4,600)    (2,455)      (137)        (7,192)             -   (20,977) 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 Contribution 
  before 
  administrative 
  expenses             20,326      8,737     29,063         16,841      6,873      1,124         24,838             -     53,901 
 Administrative 
  expenses 
  excluding 
  highlighted 
  items              (10,447)    (9,201)   (19,648)       (15,142)    (6,195)      (919)       (22,256)             -   (41,904) 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 Operating 
  profit /(loss) 
  before 
  highlighted 
  items/ segment 
  results               9,879      (464)      9,415          1,699        678        205          2,582             -     11,997 
 Amortisation of 
  acquired 
  intangible 
  assets                    -       (18)       (18)        (1,478)      (182)        (5)        (1,665)             -    (1,683) 
 Other 
  highlighted 
  items                     -          -          -              -          -          -              -         (912)      (912) 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 Operating 
  profit /(loss)        9,879      (482)      9,397            221        496        200            917         (912)      9,402 
 Finance income             -          -          -              -          -          -              -           138        138 
 Finance costs              -          -          -              -          -          -              -          (96)       (96) 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 Profit/(loss) 
  before 
  taxation              9,879      (482)      9,397            221        496        200            917         (870)      9,444 
 Taxation                   -          -          -              -          -          -              -       (2,091)    (2,091) 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 Profit/(loss) 
  for 
  the year              9,879      (482)      9,397            221        496        200            917       (2,961)      7,353 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 Operating 
  profit /(loss) 
  before 
  highlighted 
  items/ segment 
  results               9,879      (464)      9,415          1,699        678        205          2,582             -     11,997 
 Depreciation             162        109        271            162         98         10            270             -        541 
 Amortisation of 
  internally 
  generated 
  intangibles             268        194        462          1,454        365         24          1,843             -      2,305 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 EBITDA before 
  highlighted 
  items                10,309      (161)     10,148          3,315      1,141        239          4,695             -     14,843 
----------------  -----------  ---------  ---------  -------------  ---------  ---------  -------------  ------------  --------- 
 

Total assets

 
                            28 February   28 February 
                                   2018          2017 
                                GBP'000       GBP'000 
-------------------------  ------------  ------------ 
 Children's Trade                 9,163         9,057 
 Adult Trade                      7,788         8,282 
 Academic & Professional         55,302        58,709 
 Special Interest                13,349        13,416 
 Content Services                   162           198 
 Unallocated                    111,227       103,004 
 Total assets                   196,991       192,666 
-------------------------  ------------  ------------ 
 

Unallocated primarily represents centrally held assets including system development, property plant and equipment receivables and cash.

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 28 February 2018 
United Kingdom (country of 
 domicile)                            60,264             20          -         -    60,284 
----------------------------  --------------  -------------  ---------  --------  -------- 
  North America                        7,821         42,705          -         -    50,526 
  Continental Europe                  16,335            975          -         -    17,310 
  Australasia                            928              -     12,087         -    13,015 
  Middle East and 
   Asia                                7,038            518          -     3,621    11,177 
  Rest of the world                    8,935            263          -         -     9,198 
----------------------------  --------------  -------------  ---------  --------  -------- 
Overseas countries                    41,057         44,461     12,087     3,621   101,226 
----------------------------  --------------  -------------  ---------  --------  -------- 
 Total                               101,321         44,481     12,087     3,621   161,510 
----------------------------  --------------  -------------  ---------  --------  -------- 
 
Year ended 28 February 2017 
United Kingdom (country of 
 domicile)                            55,249             30          -         -    55,279 
----------------------------  --------------  -------------  ---------  --------  -------- 
  North America                        7,999         38,314          -         -    46,313 
  Continental Europe                  11,397             52          -         -    11,449 
  Australasia                            521            431     10,530         -    11,482 
  Middle East and 
   Asia                                5,700          1,625          -     2,802    10,127 
  Rest of the world                    7,819             95          -         -     7,914 
----------------------------  --------------  -------------  ---------  --------  -------- 
Overseas countries                    33,436         40,517     10,530     2,802    87,285 
----------------------------  --------------  -------------  ---------  --------  -------- 
 Total                                88,685         40,547     10,530     2,802   142,564 
----------------------------  --------------  -------------  ---------  --------  -------- 
 

During the year sales to one customer exceeded 10% of Group revenue (2017: one customer). The value of these sales was GBP39,721,000 (2017: GBP30,958,000).

External revenue by product type

 
                          Year ended   Year ended 
                         28 February  28 February 
                                2018         2017 
                             GBP'000      GBP'000 
-----------------------  -----------  ----------- 
Print                        134,808      117,261 
Digital                       18,048       16,036 
Rights and services(1)         8,654        9,267 
Total                        161,510      142,564 
-----------------------  -----------  ----------- 
 

1. Rights and services revenue includes revenue from copyright and trademark licences, management contracts, advertising and publishing services.

Analysis of non-current assets (excluding deferred tax assets) by geographic location

 
                                       28 February  28 February 
                                              2018         2017 
                                           GBP'000      GBP'000 
-------------------------------------  -----------  ----------- 
United Kingdom (country of domicile)        61,136       62,652 
North America                                4,699        5,168 
Other                                          102          141 
Total                                       65,937       67,961 
-------------------------------------  -----------  ----------- 
 

3. Highlighted items

 
                                          Year ended    Year ended 
                                         28 February   28 February 
                                                 201          2017 
                                             GBP'000       GBP'000 
-------------------------------------   ------------  ------------ 
 Restructuring costs                               -           881 
 Other                                             -            31 
 Other highlighted items                           -           912 
 Amortisation of acquired intangible 
  assets                                       1,573         1,683 
--------------------------------------  ------------  ------------ 
 Total highlighted items                       1,573         2,595 
--------------------------------------  ------------  ------------ 
 

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 of the business and future profitability of the business.

All highlighted items are included in administrative expenses in the income statement.

In 2017 restructuring costs of GBP881,000 were incurred primarily as a result of strategic restructuring of the Bloomsbury US business.

The other cost of GBP31,000 in 2017 relate to the final costs on the historic tax enquiry with HMRC.

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 19.08% (2017: 20.00%). The reasons for this are explained below:

 
 
                                            Year ended           Year ended 
                                           28 February          28 February 
                                               2018                 2017 
                                         GBP'000        %       GBP'000        % 
--------------------------------------  --------  -------  ------------  ------- 
 Profit before taxation                   11,644    100.0         9,444   100.00 
--------------------------------------  --------  -------  ------------  ------- 
 Profit on ordinary activities 
  multiplied by the standard 
  rate of corporation tax 
  in the UK of 19.08% (2017: 
  20.08%)                                  2,222     19.1         1,889     20.0 
 Effects of: 
   Non-deductible revenue expenditure        111      1.0           432      4.6 
   Non-qualifying depreciation                 -        -          (32)    (0.3) 
   Movement in unrecognised 
    temporary differences                   (16)    (0.1)          (71)    (0.8) 
   Different rates of tax in 
    foreign jurisdictions                    134      1.1           693      7.3 
   Tax losses utilised                         1        -         (104)    (1.1) 
   Movement in deferred tax 
    rate                                     864      7.4         (149)    (1.6) 
 Adjustment to tax charge 
  in respect of prior years 
   Current tax                           (1,910)   (16.4)         (238)    (2.5) 
   Deferred tax                            1,168     10.0         (349)    (3.7) 
--------------------------------------  --------  -------  ------------  ------- 
 Tax charge for the year 
  before disallowable costs 
  on highlighted items                     2,574     22.1         2,071     21.9 
 Highlighted items: 
  Disallowable costs                           -        -            20      0.2 
  Tax charge for the year                  2,574     22.1         2,091     22.1 
--------------------------------------  --------  -------  ------------  ------- 
 
 

Non-deductible revenue expenditure mainly relates to disallowable foreign exchange. Different rates of tax in foreign jurisdictions is where we are paying tax at higher rates in the US and Australia. The movement in deferred tax rate primarily relates to the reduction in the US Federal tax rate from 35% to 21% in January 2018.

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.

In 2017, the Group identified a potential tax exposure relating to the treatment of stock valuation adjustments in the US. Accordingly, a current tax provision was recognised for the potential exposure. Following finalisation of the appropriate tax treatment, it has been agreed with the IRS that any tax deductions associated with stock valuation adjustments will be payable over 3 years. Accordingly, the GBP1.3 million unpaid current tax provision has been reversed, and a corresponding deferred tax liability has been recognised due to the temporary difference that arises between the accounting and tax treatment. The GBP1.3 million deferred tax debit and GBP1.3 million current tax credit have been recognised as adjustment in respect of prior years in the above tax charge for the year table.

In 2018 there is a GBP576,000 UK current tax credit in respect of prior years relates to the carry back of double taxation relief to prior years and the settlement of an old claim with HMRC that was previously considered remote to materialise.

5. Dividends

 
                                       Year ended    Year ended 
                                      28 February   28 February 
                                             2018          2017 
                                          GBP'000       GBP'000 
-----------------------------------  ------------  ------------ 
 Amounts paid in the year 
 Prior period final 5.60p dividend 
  per share (2017: 5.34p)                   4,182         3,996 
 Interim 1.15p dividend per 
  share (2017: 1.10p)                         859           823 
-----------------------------------  ------------  ------------ 
 Total dividend payments in 
  the year                                  5,041         4,819 
-----------------------------------  ------------  ------------ 
 Amounts arising in respect 
  of the year 
 Interim 1.15p dividend per 
  share for the year (2017: 1.10p)            859           823 
 Proposed 6.36p final dividend 
  per share for the year (2017: 
  5.60p)                                    4,749         4,182 
-----------------------------------  ------------  ------------ 
 Total dividend 7.51p per share 
  for the year (2017: 6.70p)                5,608         5,005 
-----------------------------------  ------------  ------------ 
 

The Directors are recommending a final dividend of 6.36 pence per share, which, subject to Shareholder approval at the Annual General Meeting, will be paid on 24 August 2018 to Shareholders on the register at close of business on 27 July 2018.

6. Earnings per share

The basic earnings per share for the year ended 28 February 2018 is calculated using a weighted average number of Ordinary shares in issue of 74,677,559 (2017: 74,820,311) 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 
                                  28 February   28 February 
                                         2018          2017 
                                       Number        Number 
 Weighted average shares 
  in issue                         74,677,559    74,820,311 
 Dilution                             538,096       111,762 
-------------------------------  ------------  ------------ 
 Diluted weighted average 
  shares in issue                  75,215,655    74,932,073 
-------------------------------  ------------  ------------ 
 
                                      GBP'000       GBP'000 
-------------------------------  ------------  ------------ 
 Profit after tax attributable 
  to owners of the Company              9,070         7,353 
 Basic earnings per share              12.15p         9.83p 
-------------------------------  ------------  ------------ 
 Diluted earnings per 
  share                                12.06p         9.81p 
-------------------------------  ------------  ------------ 
 
                                      GBP'000       GBP'000 
-------------------------------  ------------  ------------ 
 Adjusted profit attributable 
  to owners of the Company             10,472         9,465 
 Adjusted basic earnings 
  per share                            14.02p        12.65p 
-------------------------------  ------------  ------------ 
 Adjusted diluted earnings 
  per share                            13.92p        12.63p 
-------------------------------  ------------  ------------ 
 

Adjusted profit is derived as follows:

 
                                Year ended    Year ended 
                               28 February   28 February 
                                      2018          2017 
                                   GBP'000       GBP'000 
 Profit before taxation             11,644         9,444 
 Amortisation of acquired 
  intangible assets                  1,573         1,683 
 Other highlighted items                 -           912 
----------------------------  ------------  ------------ 
 Adjusted profit before tax         13,217        12,039 
----------------------------  ------------  ------------ 
 
 
 Tax expense                          2,574   2,091 
 Deferred tax movements on 
  goodwill and acquired intangible 
  assets                                171     321 
 Tax expense on other highlighted 
  items                                   -     162 
 Adjusted tax                         2,745   2,574 
-----------------------------------  ------  ------ 
 
 
 Adjusted profit    10,472    9,465 
-----------------  -------  ------- 
 

7. Trade and other receivables

 
                                      28 February   28 February 
                                             2018          2017 
                                          GBP'000       GBP'000 
 Non-current 
 Prepayments and accrued income             1,530         1,951 
-----------------------------------  ------------  ------------ 
 
 Current 
 Gross trade receivables                   56,419        50,326 
 Less: provision for impairment 
  of receivables                            (931)         (621) 
 Less: provision for returns              (7,922)       (6,536) 
-----------------------------------  ------------  ------------ 
 Net trade receivables                     47,566        43,169 
 Income tax recoverable                       823           401 
 Other receivables                          1,311         1,961 
 Prepayments and accrued income             4,840         5,472 
 Royalty advances                          22,317        24,805 
 Total current trade and other 
  receivables                              76,857        75,808 
-----------------------------------  ------------  ------------ 
 Total trade and other receivables         78,387        77,759 
-----------------------------------  ------------  ------------ 
 

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 for the return of books by customers is made with reference to the historic rate of returns.

A provision is held against gross advances payable in respect of published titles advances which may not be fully earned down by anticipated future sales. As at 28 February 2018 GBP5,640,000 (2017: GBP6,371,000) 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 18 July 2018.

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

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