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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Bloomsbury Publishing Plc | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| -2.00 | -0.38% | 530.00 | 526.00 | 532.00 | 532.00 | 526.00 | 526.00 | 37,840 | 12:13:14 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Books: Pubg, Pubg & Printing | 264.1M | 20.24M | 0.2497 | 21.31 | 431.23M |
From May 2019 to May 2024
TIDMBMY
RNS Number : 3822U
Bloomsbury Publishing PLC
24 October 2017
24 October 2017
BLOOMSBURY PUBLISHING Plc
("Bloomsbury" or the "Group")
Unaudited Interim Results for the six months ended 31 August 2017
The Group saw strong growth in the first half and is trading in line with the Board's expectations for the full year. Traditionally, sales of trade titles peak for Christmas and sales of academic titles at the beginning of the academic year in the autumn. We therefore expect our sales to be second-half weighted, as in past years.
Group financial highlights
-- Total revenues up 15% to GBP72.1 million (2016: GBP62.7 million) -- Digital revenues up 15% to GBP8.9 million (2016: GBP7.7 million) -- Print revenues up 16% to GBP60.1 million (2016: GBP51.7 million) -- Adjusted* profit before tax up 74% to GBP2.5 million (2016: GBP1.5 million) -- Profit before tax GBP1.7 million (2016: GBP0.1 million) -- Net cash up 85% to GBP16.9 million (2016: GBP9.1 million) -- Interim dividend up 5% to 1.15 pence per share (2016: 1.10 pence per share) -- Adjusted* diluted earnings per share up 70% to 2.81 pence (2016: 1.65 pence) -- Diluted earnings per share 1.87 pence (2016: 0.15 pence)
Consumer division
-- Revenues increased 20% to GBP44.7 million (2016: GBP37.3 million), driven by Children's Trade where revenues increased 33% to GBP31.7 million
-- J.K. Rowling's Harry Potter titles continue to sell strongly, including the Harry Potter Box Set and the new House Editions of Harry Potter and the Philosopher's Stone, which celebrate the 20(th) anniversary of the title first being published
-- Sarah J. Maas title revenues grew 47% including the publication of A Court of Wings and Ruin
-- Lincoln in the Bardo by George Saunders won the Man Booker prize last Tuesday. Tom Kerridge's Dopamine Diet reached number one on the Sunday Times Original Non-Fiction list simultaneously with Neil Gaiman's Norse Mythology being number one on the Sunday Times Original Fiction list. Kid Normal by Greg James and Chris Smith, published in the UK in July, went to number one in the total consumer market chart for children's books in the UK (source: Nielsen BookScan)
Non-Consumer division
-- Revenues up 8% to GBP27.4 million (2016: GBP25.4 million)
-- Academic & Professional digital resources revenues grew 10% to GBP2.2 million (2016: GBP2 million) including 17% growth in Bloomsbury Professional Online
-- Bloomsbury 2020 digital resources growth strategy on track with launch of Bloomsbury Design Library and Bloomsbury Cultural History
-- Bestselling titles from the Non-Consumer division include Wisden Cricketers' Almanack 2017 and Douglas Murray's The Strange Death of Europe
-- Creation of new imprint, Bloomsbury China, to publish, in English, works about China and for China, by Chinese, Western and other writers
Note: *Adjusted results are calculated before deducting highlighted items. Highlighted items comprise amortisation of acquired intangible assets and, in the prior year, costs relating to acquisitions and major restructuring.
Commenting on the results, Nigel Newton, Chief Executive of Bloomsbury Publishing, said:
'It has been a very strong six months for Bloomsbury. Revenues are up 15%, with good growth in each of our territories. The Children's Trade division delivered another outstanding performance, increasing revenues by 33%.
The Group is trading in line with the Board's expectations for the full year. We have a strong second half list including the Illustrated Edition of Harry Potter and the Prisoner of Azkaban, the Illustrated Edition of Fantastic Beasts and Where to Find Them and two major books to accompany the British Library's Harry Potter exhibition, which was launched last Thursday to huge public acclaim. Our cookery list for the second half includes A Baker's Life by Paul Hollywood, Lose Weight for Good by Tom Kerridge and River Cottage Much More Veg by Hugh Fearnley-Whittingstall. October is the peak period for academic book sales and Christmas for the sales of consumer books. We therefore expect our results to continue to be second-half weighted, as in past years.
We have successfully launched two new major digital resources this period and are on track to launch a further two new resources this year, one more than originally planned in the Bloomsbury 2020 growth plan.'
For further information, please contact:
Bloomsbury Publishing Plc +44 (0) 20 7631 5630 Nigel Newton, Chief Executive Wendy Pallot, Group Finance Director FTI Consulting +44 (0) 203 727 1000 Charles Palmer / Dwight Burden / Emma Hall SCBloomsbury@fticonsulting.com / Leah Dudley
Overview
It has been a very strong six months for Bloomsbury. Revenues for the period to 31 August 2017 were up 15% to GBP72.1 million, with good growth in each of our territories. Adjusted profit before taxation was up 74% to GBP2.5 million (2016: GBP1.5 million). Reported profit before tax was GBP1.7 million (2016: GBP0.1 million).
The Children's Trade division was a major contributor to this growth, with revenues up 33% on the previous period driven by several key titles including the Harry Potter Box Set, the new House Editions of Harry Potter and the Philosopher's Stone, which celebrate the 20th anniversary of the title first being published, and A Court of Wings and Ruin by Sarah J. Maas.
Group print revenues grew 16% to GBP60.1 million (2016: GBP51.7 million) and made up 87% of the Group's total book revenues in the period, demonstrating an on-going demand for books in print format. Group e-book revenues grew 16% to GBP6.6 million. We are making good progress with our strategic growth initiative to significantly accelerate the growth of digital revenues with an accelerated digital publishing plan to strengthen our position as a non-consumer publisher in the B2B academic and professional information market. Digital resources revenues in the period grew 14% to GBP2.3 million. Rights and services revenues were GBP3.1 million (2016: GBP3.3 million). Revenues from digital services within Bloomsbury 2020 grew by 16%. Foreign exchange movements in the period have increased revenues by 3% or GBP2.2 million, and reduced profits by GBP0.1 million. Using constant exchange rates, total revenues increased by 12% to GBP69.9 million, with print revenues increasing by 12% and total digital revenues up by 13%.
The highlighted item in the period of GBP0.8 million is the amortisation of acquired intangible assets. The effective rate of tax reduced to 19% (2016: 25%), it includes the benefit of a GBP0.4m tax refund following the resolution of a tax loss claim from 2006. The adjusted effective rate of tax was 16% (2016:15%). Adjusted diluted earnings per share were up 70% to 2.81 pence (2016: 1.65 pence). Diluted earnings per share for the period were 1.87 pence (2016: 0.15 pence). The business continues to have a strong balance sheet with GBP16.9 million of net cash at 31 August 2017 (31 August 2016: GBP9.1 million), following excellent results and good working capital inflows.
The Directors have declared an interim dividend of 1.15 pence per share which is a 5% increase on the dividend paid for the six months ended 31 August 2016 of 1.10 pence per share. The dividend will be paid on 30 November 2017 to shareholders on the register at close of business on 3 November 2017.
Consumer division
Revenues in Consumer publishing increased 20% to GBP44.7 million in the six months ended 31 August 2017 (2016: GBP37.3 million). This excellent performance meant that the Consumer division's adjusted operating profit increased to GBP2.9 million from GBP1.8 million. Prior year divisional results have been restated to reflect a change in how Group shared service costs are allocated. This restatement has no effect on overall Group results, but provides a better understanding of divisional performance. This change saw a reallocation of GBP0.5 million of costs out of the Consumer division into the Non-Consumer division.
Children's
The growth in profit in the division came from Children's Trade, where revenues were up by 33% to GBP31.7 million. J.K. Rowling's Harry Potter titles continue to sell strongly, with revenues growing 40% in the period. Harry Potter and the Philosopher's Stone celebrated its 20th anniversary in June 2017 with the publication of four House Editions of the title - Gryffindor, Slytherin, Hufflepuff and Ravenclaw - the hardback of which had sprayed striped edges.
Other top selling titles in the period included two by Sarah J. Maas; A Court of Wings and Ruin, the third book in the A Court of Thorns and Roses series which went to number one on the New York Times Children's Series Best Sellers list and stayed on the list for five weeks, and Tower of Dawn, a companion novel to the Throne of Glass series which went to number two in that list. Sarah J. Maas revenues grew 47% in this period. We currently have seven more titles contracted with Sarah J. Maas.
Kid Normal by Greg James and Chris Smith published in the UK in July and went to number one in the total consumer market chart for children's books in the UK (source: Nielsen BookScan). This strong debut in the UK has seen sales of over 45,000 books since July. The book launches in the US early next year. Fantastically Great Women Who Changed the World by Kate Pankhurst is the strongest selling UK non-fiction children's title this year so far (source: Nielsen BookScan), with over 50,000 copies sold year to date. Neil Gaiman's Norse Mythology reached number one on the Sunday Times Original Fiction list.
During the period the children's division was shortlisted for the Independent Publisher's Guild Children's Publisher of the Year and the British Book Award Children's Publisher of the Year.
Adult
Adult revenues were GBP13 million (2016: GBP13.4 million), with flat print book sales and a 10% reduction in higher margin e-book sales. According to statistics from the Publishers Association's Annual Yearbook, UK sales of trade e-books fell by 17% in 2016. Although our Children's division e-book sales continue to outperform due to the strength of Young Adult authors like Sarah J. Mass, our Adult division is showing the effects of the general industry-wide weakness. This change in sales mix, together with a GBP0.1 million incremental overhead investment following the strategic changes made recently in the division, have adversely impacted the result in the period.
The US list performed well. Successes in the US include Dreamland: The True Tale of America's Opiate Epidemic by Sam Quinones and White Rage: The Unspoken Truth of Our Racial Divide by Carol Anderson, which was the winner of the National Book Critics Award for Criticism and reached number seven on the New York Times Non-fiction paperback bestseller list.
In the UK Tom Kerridge's Dopamine Diet reached number one on the Sunday Times Original Non-Fiction list. Lincoln in the Bardo by George Saunders won the Man Booker Prize last Tuesday. Home Fire by Kamila Shamsie was longlisted for the Man Booker Prize. Why I'm No Longer Talking to White People about Race by Reni Eddo Lodge was longlisted for the Baillie Gifford Prize. It has also been shortlisted in the Best Cover/Jacket Design category of the British Book Design and Production Awards 2017.
Non-Consumer division
Total revenues in the division were up 8% to GBP27.4 million (2016: GBP25.4 million) and the adjusted operating loss was GBP0.4 million (2016: Loss of GBP0.4 million), where the prior year has been restated for a change in allocation of Group shared service costs as noted above. The result in the non-consumer division is weighted to the second half of the year, given the autumn sales of academic titles at the beginning of the academic year.
Academic & Professional
Academic & Professional revenues make up 61% of total division revenues. Core Academic & Professional revenues were up by 2% in the period, reflecting the growth in its digital portfolio. Including the Children's Educational sub-division, divisional sales were flat at GBP16.6 million on the back of strong education rights sales in the previous period.
Academic & Professional digital resources revenues grew 10% to GBP2.2 million (2016: GBP2 million). Digital revenues, including e-books, now represent 24% of total book revenues in the division (2016: 21%). The net investment in the income statement for digital resources in the period to 31 August 2017 was GBP0.6 million (2016: GBP0.3 million profit). We are on track to deliver four major new digital resources this year, one more than originally planned. Bloomsbury Design Library launched in July 2017 with our highest number of new product trials to date. Three new Drama Online modules have also gone live in this period: Aurora Metro, Playwrights Canada Press, and Bloomsbury Scholarly Collection: Critical Studies and Performance Practice. The Bloomsbury Food Library launched in September, and Bloomsbury Cultural History and Bloomsbury Encyclopaedia of Philosophers launch later this year. Following on from the FutureBook win for Platform of the Year last year, Bloomsbury Fashion Central won the IPG Ingram Content Group Digital Publishing Award. There is now a full global team in place to support Bloomsbury Digital Resources, with customer numbers and trials both seeing significant growth. We have a strong programme of products in development, our guidance on future investment levels is unchanged and we continue to target revenues rising to GBP15 million and profits of GBP5m from our digital resource publishing by financial year 2021/22.
Hart, Bloomsbury's academic law business, continues to show steady growth reflecting its increased publishing output and growing digital sales. Bloomsbury Professional's online subscription revenue increased by 17% following the launch of a number of new services this year. In the period Methuen Drama playwright David Ireland won the prestigious James Tait Black Prize for Drama for his play Cyprus Avenue and Rotterdam by Jon Brittain won the Olivier Award for Outstanding Achievement in an Affiliate Theatre. Carolyn Cocca's Superwomen: Gender, Power, and Representation won the Will Eisner Award for Best Academic/Scholarly Work. Animated Landscapes, edited by Chris Pallant, won the prestigious McLaren-Lambart award for Best Book on the Subject of Animation.
Special Interest
There was particular strength in the period from the special interest list where revenues grew 25% to GBP10.1 million (2016: GBP8.1 million). Key titles included Douglas Murray's The Strange Death of Europe which sold over 78,000 copies in five months and Wisden Cricketers' Almanack 2017. Green Tree, our new Health and Wellbeing list got off to a great start, its successes include Sod Sitting, Get Moving! by Diana Moran and Muir Gray and Jeannette Hyde's The Gut Makeover.
This month we announced the creation of a new imprint, Bloomsbury China, to publish, in English, works about China and for China, by Chinese, Western and other writers. In partnership with Chinese publishers and with Western and Chinese universities, Bloomsbury aims to develop sophisticated digital products to supplement and enhance print editions and will use the latest digital marketing and sales tools to maximise discovery, readership and sales. Bloomsbury China will launch in February 2018 with the publication of The Complete Dramatic Works of Tang Xianzu, who is known as the 'Shakespeare of the East' and China's greatest playwright. This is the first time his complete collected works have been translated into English and made available outside of China. They will subsequently be made available on Bloomsbury's award-winning Drama Online digital platform.
Content Services
Having secured new clients at the end of the last fiscal year, including Freshfields Bruckhaus Deringer, Royal Bank of Canada and ICAEW, Bloomsbury Content Services successfully delivered associated content services projects this first half. The largest managed service project, the IZA World of Labor, continues to grow with hundreds of peer-reviewed papers focused on labour economics reaching an expanding audience of policy makers, advisors and the media. Bloomsbury's Business list continues on its growth trajectory, with strong sales of titles such as Leading Organisations and The 100 Year Life, and the launch of new titles Fully Connected and Dear CEO.
Outlook
A very strong autumn Harry Potter list features the Illustrated Edition of Harry Potter and the Prisoner of Azkaban, the Illustrated Edition of Fantastic Beasts and Where to Find Them and two colour titles to accompany the British Library's Harry Potter exhibition; Harry Potter - A History of Magic: The Book of The Exhibition and Harry Potter - A Journey Through A History of Magic. Other key titles being published in the second half of the year include A Baker's Life by Paul Hollywood, Lose Weight for Good by Tom Kerridge and River Cottage Much More Veg by Hugh Fearnley-Whittingstall. Our new crime imprint, Raven Books, launches its second title The Silent Companions by Laura Purcell in October.
A new Illustrated Edition of The Tales of Beedle the Bard by J.K. Rowling will be published in October 2018. Chris Riddell, who has won the Kate Greenaway Medal three times, most recently for his illustrations in Neil Gaiman's The Sleeper and the Spindle, has been chosen as the illustrator.
Following the successful launch of two new major digital resources so far this year, we are on track to exceed the original plan of three major launches, with two further launches scheduled for the second half of the year; Bloomsbury Cultural History and Bloomsbury Encyclopaedia of Philosophers.
As in previous years, the Group is targeting a number of new contracts from which we expect to deliver rights and services income in the second half of our financial year. October is the peak period for academic book sales and Christmas for sales of consumer books. We therefore expect our results to continue to be second-half weighted, as in previous years. Since the period end the Group continues to trade in line with the Board's expectations for the full year.
Condensed Consolidated Interim Income Statement
For the six months ended 31 August 2017
Hot Features
Premium
6 months 6 months Year
ended ended ended
31 August 31 August 28 February
2017 2016 2017
Notes GBP'000 GBP'000 GBP'000
---------------------------------------- ------ ----------- ------------ -------------
Revenue 3 72,113 62,672 142,564
Cost of sales (35,417) (31,259) (67,686)
---------------------------------------- ------ ----------- ------------ -------------
Gross profit 36,696 31,413 74,878
Marketing and distribution costs (11,029) (9,798) (20,977)
Administrative expenses (23,987) (21,562) (44,499)
---------------------------------------- ------ ----------- ------------ -------------
Operating profit before highlighted
items 2,474 1,362 11,997
Highlighted items 4 (794) (1,309) (2,595)
---------------------------------------- ------ ----------- ------------ -------------
Operating profit 1,680 53 9,402
Finance income 55 111 138 Finance costs - (17) (96) ---------------------------------------- ------ ----------- ------------ ------------- Profit before taxation and highlighted items 2,529 1,456 12,039 Highlighted items 4 (794) (1,309) (2,595) ---------------------------------------- ------ ----------- ------------ ------------- Profit before taxation 3 1,735 147 9,444 Taxation (332) (37) (2,091) ---------------------------------------- ------ ----------- ------------ ------------- Profit for the period attributable to owners of the Company 1,403 110 7,353 ---------------------------------------- ------ ----------- ------------ ------------- Earnings per share attributable to owners of the Company Basic earnings per share 6 1.88p 0.15p 9.83p Diluted earnings per share 6 1.87p 0.15p 9.81p ---------------------------------------- ------ ----------- ------------ -------------
The accompanying notes form an integral part of this condensed consolidated interim financial report.
Condensed Consolidated Interim Statement of Comprehensive Income
For the six months ended 31 August 2017
6 months 6 months Year
ended ended ended
31 August 31 August 28 February
2017 2016 2017
GBP'000 GBP'000 GBP'000
------------------------------------------- ----------- ----------- -------------
Profit for the period 1,403 110 7,353
Other comprehensive income
Items that may be reclassified to the
income statement:
Exchange differences on translating
foreign operations (1,387) 2,288 4,587
Items that may not be reclassified
to the income statement:
Remeasurements on the defined benefit
pension scheme 3 (174) (58)
------------------------------------------- ----------- ----------- -------------
Other comprehensive income for the
period net of tax (1,384) 2,114 4,529
------------------------------------------- ----------- ----------- -------------
Total comprehensive income for the
period attributable to owners of the
Company 19 2,224 11,882
------------------------------------------- ----------- ----------- -------------
Items in the statement above are disclosed net of tax.
Condensed Consolidated Interim Statement of Financial Position
At 31 August 2017
Notes 31 August 31 August 28 February
2017 2016 2017
GBP'000 GBP'000 GBP'000
------------------------------------- ------ ---------- ---------- ------------
Assets
Goodwill 42,385 42,321 42,548
Other intangible assets 20,402 21,934 21,214
Investments 300 - -
Property, plant and equipment 2,134 2,254 2,248
Deferred tax assets 4,707 3,151 4,808
Trade and other receivables 7 1,692 1,119 1,951
------------------------------------- ------ ---------- ---------- ------------
Total non-current assets 71,620 70,779 72,769
------------------------------------- ------ ---------- ---------- ------------
Inventories 28,034 28,929 28,611
Trade and other receivables 7 75,865 73,010 75,808
Cash and cash equivalents 16,853 9,092 15,478
------------------------------------- ------ ---------- ---------- ------------
Total current assets 120,752 111,031 119,897
------------------------------------- ------ ---------- ---------- ------------
Total assets 192,372 181,810 192,666
------------------------------------- ------ ---------- ---------- ------------
Liabilities
Retirement benefit obligations 251 442 255
Deferred tax liabilities 2,197 2,674 2,225
Other payables 947 942 2,191
Provisions 43 43 43
------------------------------------- ------ ---------- ---------- ------------
Total non-current liabilities 3,438 4,101 4,714
------------------------------------- ------ ---------- ---------- ------------
Trade and other payables 48,945 42,635 47,365
Current tax liabilities 631 - 1,265
Provisions 22 22 23
------------------------------------- ------ ---------- ---------- ------------
Total current liabilities 49,598 42,657 48,653
------------------------------------- ------ ---------- ---------- ------------
Total liabilities 53,036 46,758 53,367
------------------------------------- ------ ---------- ---------- ------------
Net assets 139,336 135,052 139,299
------------------------------------- ------ ---------- ---------- ------------
Equity
Share capital 942 942 942
Share premium 39,388 39,388 39,388
Translation reserve 10,243 9,331 11,630
Other reserves 6,323 6,698 6,274
Retained earnings 82,440 78,693 81,065
------------------------------------- ------ ---------- ---------- ------------
Total equity attributable to owners
of the Company 139,336 135,052 139,299
------------------------------------- ------ ---------- ---------- ------------
Condensed Consolidated Interim Statement of Changes in Equity
At 31 August 2017
Own
Capital Share-based shares
Share Share Translation Merger redemption payment held by Retained Total
capital premium reserve reserve reserve reserve the EBT earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
At 1 March 2017 942 39,388 11,630 1,803 22 5,492 (1,043) 81,065 139,299
Profit for the
period - - - - - - - 1,403 1,403
Other comprehensive
income
Exchange
differences on
translating
foreign
operations - - (1,387) - - - - - (1,387)
Remeasurements
on the defined
benefit
pension scheme - - - - - - - 3 3
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
Total comprehensive
income for the
period - - (1,387) - - - - 1,406 19
Transactions with
owners
Deferred tax on
share-based
payment
transactions - - - - - - - (31) (31)
Share-based
payment
transactions - - - - - 49 - - 49
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
Total transactions
with owners of the
Company - - - - - 49 - (31) 18
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
At 31 August 2017 942 39,388 10,243 1,803 22 5,541 (1,043) 82,440 139,336
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
At 1 March 2016 939 39,388 7,043 1,386 22 5,428 (7) 78,768 132,967
Profit for the period - - - - - - - 110 110
Other comprehensive income
Exchange differences on translating
foreign operations - - 2,288 - - - - - 2,288
Remeasurements on the defined benefit
pension scheme - - - - - - - (174) (174)
----------------------------------------------- ---- ------- ------ ------ --- ------ ------ ------- --------
Total comprehensive income for the period - - 2,288 - - - - (64) 2,224
Transactions with owners
Issue of shares 3 - - 417 - - - - 420
Purchase of Shares by the Employee Benefit
Trust - - - - - - (570) - (570)
Deferred tax on share-based payment
transactions - - - - - - - (11) (11)
Share-based payment transactions - - - - - 22 - - 22
----------------------------------------------- ---- ------- ------ ------ --- ------ ------ ------- --------
Total transactions with owners of the Company 3 - - 417 - 22 (570) (11) (139)
----------------------------------------------- ---- ------- ------ ------ --- ------ ------ ------- --------
At 31 August 2016 942 39,388 9,331 1,803 22 5,450 (577) 78,693 135,052
----------------------------------------------- ---- ------- ------ ------ --- ------ ------ ------- --------
Own
Capital Share-based shares
Share Share Translation Merger redemption payment held by Retained Total
capital premium reserve reserve reserve reserve the EBT earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
At 1 March 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)
Dividend 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
-------------------- -------- -------- ------------ --------- ----------- ------------ -------- --------- --------
Condensed Consolidated Interim Statement of Cash Flows
For the six months ended 31 August 2017
6 months 6 months ended Year ended
ended
31 August 31 August 28 February
2017 2016 2017
GBP'000 GBP'000 GBP'000
------------------------------------------- ---------- --------------- ------------
Cash flows from operating activities
Profit before taxation 1,735 147 9,444
Finance income (55) (111) (138)
Finance costs - 17 96
------------------------------------------- ---------- --------------- ------------
Operating profit 1,680 53 9,402
Adjustments for:
Depreciation of property, plant
and equipment 220 314 541
Amortisation of intangible assets 1,995 1,978 3,988
Share-based payment charges 49 29 73
------------------------------------------- ---------- --------------- ------------
3,944 2,374 14,004
(Increase)/decrease in inventories (43) (292) 1,334
(Increase)/decrease in trade and
other receivables (180) 958 (2,873)
Increase in trade and other payables 1,256 2,563 7,318
------------------------------------------- ---------- --------------- ------------
Cash generated from operating activities 4,977 5,603 19,783
Income taxes (paid)/received (1,776) 10 (1,009)
------------------------------------------- ---------- --------------- ------------
Net cash generated from operating
activities 3,201 5,613 18,774
------------------------------------------- ---------- --------------- ------------
Cash flows from investing activities
Purchase of property, plant and
equipment (122) (98) (267)
Purchases of intangible assets (1,239) (1,666) (2,628)
Purchase of other investments (300) - -
Interest received 55 111 120
Net cash used in investing activities (1,606) (1,653) (2,775)
------------------------------------------- ---------- --------------- ------------
Cash flows from financing activities
Purchase of shares by the Employee
Benefit Trust - (570) (1,196)
Equity dividends paid - - (4,819)
Interest paid - (17) (72)
Net cash used in financing activities - (587) (6,087)
------------------------------------------- ---------- --------------- ------------
Net increase in cash and cash equivalents 1,595 3,373 9,912
Cash and cash equivalents at beginning
of period 15,478 5,166 5,166
Exchange (loss)/gain on cash and
cash equivalents (220) 553 400
------------------------------------------- ---------- --------------- ------------
Cash and cash equivalents at end
of period 16,853 9,092 15,478
------------------------------------------- ---------- --------------- ------------
Notes to the Condensed Consolidated Interim Financial Statements
1. Reporting entity
Bloomsbury Publishing Plc (the "Company") is a Company domiciled in the United Kingdom. The condensed consolidated interim financial statements of the Company as at and for the six months ended 31 August 2017 comprise the Company and its subsidiaries (together referred to as the "Group"). The Group is primarily involved in the publication of books and other related services.
2. Significant accounting policies a) Basis of preparation
These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34 'Interim Financial Reporting' as adopted by the European Union ("EU"). They are unaudited and do not constitute statutory accounts. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the last annual consolidated financial statements as at and for the year ended 28 February 2017.
Except as described below, the condensed set of financial statements have been prepared on a consistent basis with the financial statements for the year ended 28 February 2017 and should be read in conjunction with the Annual Report 2017. The annual consolidated financial statements of the Group are prepared in accordance with International Financial Reporting Standards ("IFRS") and International Financial Reporting Interpretations Committee ("IFRIC") pronouncements as adopted by the EU. The 2017 Annual Report refers to other new standards effective from 1 March 2017. None of these standards have had a material impact in these financial statements.
The comparative financial information for the year ended 28 February 2017 does not constitute statutory accounts for that financial year. This information was extracted from the statutory accounts for the year ended 28 February 2017, a copy of which has been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified and did not include a reference to any matters to which the auditor drew attention by way of emphasis of matter and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.
The condensed consolidated interim financial statements were approved and authorised for issue by the Board of Directors on 24 October 2017.
b) Going concern
The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and therefore continue to adopt the going concern basis of accounting in preparing the condensed consolidated interim financial statements. The factors taken into account in developing this expectation include the level of cash within the business, the Group's bank facilities, continuing sources of revenue and principal risks including the impact of Brexit. The Group's bank facilities consist of a GBP10 million to GBP14 million committed revolving loan facility (amount dependent on time during the year to match Bloomsbury's cash flow cycle) which expires in May 2021, an uncommitted incremental term loan facility of up to GBP6 million and a GBP2 million overdraft facility renewable annually.
c) Uses of estimates and judgments
The preparation of condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets liabilities, income and expenses. Actual results may differ from these estimates. Critical judgments and areas where the use of estimates is significant are set out in the 2017 Annual Report.
3. 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 reallocated 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 analysis by segment is shown below:
* The results for the six months ended 31 August 2016 and 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.
Children's Adult Consumer Academic Special Content Non-Consumer Unallocated Total
Trade Trade & Interest Services
Professional
Six months GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
ended 31 August
2017 GBP'000 GBP'000 GBP'000
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
External
revenue 31,687 13,008 44,695 16,608 10,093 717 27,418 - 72,113
Cost of sales (15,666) (7,699) (23,365) (6,774) (5,047) (231) (12,052) - (35,417)
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
Gross profit 16,021 5,309 21,330 9,834 5,046 486 15,366 - 36,696
Marketing and
distribution
costs (5,070) (2,389) (7,459) (2,008) (1,505) (57) (3,570) - (11,029)
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
Contribution
before
administrative
expenses 10,951 2,920 13,871 7,826 3,541 429 11,796 - 25,667
Administrative
expenses
excluding
highlighted
items (6,243) (4,712) (10,955) (8,572) (3,177) (489) (12,238) - (23,193)
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
Operating
profit/(loss)
before
highlighted
items/ segment
results 4,708 (1,792) 2,916 (746) 364 (60) (442) - 2,474
Amortisation of
acquired
intangible
assets - (9) (9) (691) (91) (3) (785) - (794)
Other - - - - - - - - -
highlighted
items
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
Operating
profit /(loss) 4,708 (1,801) 2,907 (1,437) 273 (63) (1,227) - 1,680
Finance income - - - - - - - 55 55
Finance costs - - - - - - - - -
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
Profit/(loss)
before
taxation 4,708 (1,801) 2,907 (1,437) 273 (63) (1,227) 55 1,735
Taxation - - - - - - - (332) (332)
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
Profit/(loss)
for the period 4,708 (1,801) 2,907 (1,437) 273 (63) (1,227) (277) 1,403
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
Operating
profit /
(loss)
before
highlighted
items/
segment
results 4,708 (1,792) 2,916 (746) 364 (60) (442) - 2,474
Depreciation 76 45 121 61 34 4 99 - 220
Amortisation of
internally
generated
intangibles 135 97 232 836 121 12 969 - 1,201
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
EBITDA before
highlighted
items 4,919 (1,650) 3,269 151 519 (44) 626 - 3,895
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
* Restated
--------- ------------- ---------
Children's Adult Consumer Academic Special Content Non-Consumer Unallocated Total
Trade Trade & Interest Services
Professional
Six months GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
ended 31 August
2016 GBP'000 GBP'000 GBP'000
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
External
revenue 23,897 13,381 37,278 16,651 8,069 674 25,394 - 62,672
Cost of sales (12,025) (7,594) (19,619) (6,858) (4,427) (355) (11,640) - (31,259)
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
Gross profit 11,872 5,787 17,659 9,793 3,642 319 13,754 - 31,413
Marketing and
distribution
costs (3,882) (2,652) (6,534) (2,085) (1,106) (73) (3,264) - (9,798)
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
Contribution
before
administrative
expenses 7,990 3,135 11,125 7,708 2,536 246 10,490 - 21,615
Administrative
expenses
excluding
highlighted
items (4,772) (4,593) (9,365) (7,418) (3,017) (453) (10,888) - (20,253)
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
Operating
profit/(loss)
before
highlighted
items/ segment
results 3,218 (1,458) 1,760 290 (481) (207) (398) - 1,362
Amortisation of
acquired
intangible
assets - (9) (9) (778) (91) (3) (872) - (881)
Other
highlighted
items - - - - - - - (428) (428)
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
Operating
profit /(loss) 3,218 (1,467) 1,751 (488) (572) (210) (1,270) (428) 53
Finance income - - - - - - - 111 111
Finance costs - - - - - - - (17) (17)
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
Profit/(loss)
before
taxation 3,218 (1,467) 1,751 (488) (572) (210) (1,270) (334) 147
Taxation - - - - - - - (37) (37)
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
Profit/(loss)
for the period 3,218 (1,467) 1,751 (488) (572) (210) (1,270) (371) 110
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
Operating
profit /
(loss)
before
highlighted
items/
segment
results 3,218 (1,458) 1,760 290 (481) (207) (398) - 1,362
Depreciation 94 61 155 97 56 6 159 - 314
Amortisation of
internally
generated
intangibles 132 95 227 637 222 11 870 - 1,097
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
EBITDA before
highlighted
items 3,444 (1,302) 2,142 1,024 (203) (190) 631 - 2,773
---------------- ----------- -------- --------- ------------- --------- --------- ------------- ------------ ---------
*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 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
---------------- ----------- --------- --------- ------------- --------- --------- ------------- ------------ ---------
Due to the seasonality of the business, the Group's sales and divisional results are weighted towards the second half of the year.
External revenue by product type
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2017 2016 2017
GBP'000 GBP'000 GBP'000
-------------------- ---------- ---------- ------------
Print 60,122 51,719 117,261
Digital 8,876 7,695 16,036
Rights and services 3,115 3,258 9,267
-------------------- ---------- ---------- ------------
Total 72,113 62,672 142,564
-------------------- ---------- ---------- ------------
Rights and services revenue includes revenue from copyright and trademark licences, management contracts, advertising and publishing services.
Total assets 31 August 31 August 28 February
2017 2016 2017
GBP'000 GBP'000 GBP'000
------------------------- ---------- --------------------- ------------
Children's Trade 9,890 8,724 9,057
Adult Trade 7,893 8,052 8,282
Academic & Professional 56,559 59,739 58,709
Special Interest 13,481 13,813 13,416
Content Services 196 190 198
Unallocated 104,353 91,292 103,004
------------------------- ---------- --------------------- ------------
Total assets 192,372 181,810 192,666
------------------------- ---------- --------------------- ------------
Unallocated primarily represents centrally held assets including system development, property, plant and equipment, receivables and cash.
4. Highlighted items
Six months Six months Year ended
ended ended 28 February
31 August 31 August 2017
2017 2016 GBP'000
GBP'000 GBP'000
------------------------------------- ----------- ----------- -------------
Legal and other professional - - -
fees
Restructuring costs - 428 881
Other - - 31
Other highlighted items - 428 912
Amortisation of acquired intangible
assets 794 881 1,683
------------------------------------- ----------- ----------- -------------
Total highlighted items 794 1,309 2,595
------------------------------------- ----------- ----------- -------------
Highlighted items charged to operating profit comprise significant non-cash charges and the cost of 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.
For the six months ended 31 August 2016 and year ended 28 February 2017 restructuring costs of GBP428,000 and GBP881,000 were primarily incurred as a result of strategic restructuring of the Bloomsbury US business.
5. Dividends
Six months Six months
ended ended Year ended
31 August 31 August 28 February
2017 2016 2017
GBP'000 GBP'000 GBP'000
--------------------------------- ----------- ----------- ------------
Amounts arising in respect
of the period
Interim dividend for the period 859 823 823
Final dividend for the year - - 4,182
--------------------------------- ----------- ----------- ------------
Total dividend for the period 859 823 5,005
--------------------------------- ----------- ----------- ------------
The proposed interim dividend of 1.15 pence per ordinary share will be paid to the equity shareholders on 30 November 2017 to shareholders registered at close of business on 3 November 2017. The final dividend for 28 February 2017 was paid on 20 September 2017.
6. Earnings per share
The basic earnings per share for the six months ended 31 August 2017 is calculated using a weighted average number of Ordinary Shares in issue of 74,677,559 (31 August 2016: 74,834,869 and 28 February 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.
6 months ended 6 months ended Year ended
31 August 31 August 28 February
2017 2016 2017
Number Number Number
Weighted average shares in
issue 74,677,559 74,834,869 74,820,311
Dilution 410,787 112,842 111,762
--------------------------------- --------------- --------------- ------------
Diluted weighted average shares
in issue 75,088,346 74,947,711 74,932,073
--------------------------------- --------------- --------------- ------------
GBP'000 GBP'000 GBP'000
--------------------------------- --------------- --------------- ------------
Profit after tax attributable
to owners of the Company 1,403 110 7,353
--------------------------------- --------------- --------------- ------------
Basic earnings per share 1.88p 0.15p 9.83p
Diluted earnings per share 1.87p 0.15p 9.81p
--------------------------------- --------------- --------------- ------------
Adjusted profit attributable
to owners of the Company 2,112 1,236 9,465
--------------------------------- --------------- --------------- ------------
Adjusted basic earnings per
share 2.83p 1.65p 12.65p
Adjusted diluted earnings
per share 2.81p 1.65p 12.63p
--------------------------------- --------------- --------------- ------------
Adjusted profit is derived as follows:
Profit before tax 1,735 147 9,444 Amortisation of acquired intangible assets 794 881 1,683 Other highlighted items - 428 912 ------------------------------------- ------ ------ ------- Adjusted profit before tax 2,529 1,456 12,039 ------------------------------------- ------ ------ ------- Tax expense 332 37 2,091 Deferred tax movements on goodwill and acquired intangible assets 85 97 321 Tax expense on other highlighted items - 86 162 Adjusted tax 417 220 2,574 ----------------------------------- ---- ---- ------ Adjusted profit 2,112 1,236 9,465 ----------------- ------ ------ ------
The Group includes the benefit of tax amortisation of intangible assets in the calculation of adjusted tax as this more accurately aligns the adjusted tax charge with the expected cash tax payments.
7. Trade and other receivables
31 August 31 August 28 February
2017 2016 2017
Non-current GBP'000 GBP'000 GBP'000
------------------------------------------ ----------- ----------- -------------
Prepayments and accrued income 1,692 1,119 1,951
------------------------------------------ ----------- ----------- -------------
Non-current trade and other receivables 1,692 1,119 1,951
------------------------------------------ ----------- ----------- -------------
Current
Gross trade receivables 51,682 46,780 50,326
Less: provision for impairment
of receivables (683) (534) (621)
Less: provision for returns (6,143) (5,629) (6,536)
------------------------------------------ ----------- ----------- -------------
Net trade receivables 44,856 40,617 43,169
Income tax recoverable 811 840 401
Other receivables 2,547 1,852 1,961
Prepayments and accrued income 4,172 6,927 5,472
Royalty advances 23,479 22,774 24,805
------------------------------------------ ----------- ----------- -------------
Current trade and other receivables 75,865 73,010 75,808
------------------------------------------ ----------- ----------- -------------
Total trade and other receivables 77,557 74,129 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.
Royalty advances have been separated out from prepayments and accrued income to enable a user to get a better understanding of the business. 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 31 August 2017 GBP5,781,000 (31 August 2016 GBP5,651,000 and 28 February 2017 GBP6,371,000) of royalty advances relate to titles expected to publish after more than 12 months.
8. Related parties
The Group has no related party transactions in the period other than key management remuneration.
Responsibility Statement of the Directors in Respect of the Interim Financial Statements
Directors
-------------------- -------------------------------------
Sir Richard Lambert Independent Non-Executive Chairman
-------------------- -------------------------------------
Nigel Newton Chief Executive
-------------------- -------------------------------------
John Warren Independent Non-Executive Director
Senior Independent Director
Chair of the Audit Committee
-------------------- -------------------------------------
Jill Jones Independent Non-Executive Director
Chair of the Remuneration Committee
-------------------- -------------------------------------
Steven Hall Independent Non-Executive Director
-------------------- -------------------------------------
Richard Charkin Executive Director
-------------------- -------------------------------------
Jonathan Glasspool Executive Director
-------------------- -------------------------------------
Wendy Pallot Group Finance Director
-------------------- -------------------------------------
We confirm that to the best of our knowledge:
-- The condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.
-- The interim management report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.
By order of the Board
Nigel Newton Wendy Pallot
24 October 2017
Principal risks and uncertainties
Bloomsbury has a systematic and embedded risk management process for identifying and addressing the short to long-term risks and uncertainties for its operations worldwide. The strategy implemented by the Board aims to mitigate the main risks and exploit opportunities to create sustainable returns for shareholders. A summary of the principal risks and uncertainties to the business for the remaining six months of the financial year are as follows:
-- The profit from trade publishing depends significantly on the unpredictable sales of a small number of front-list titles especially around the Christmas period.
-- The timing for completing rights and services deals depends on third parties.
-- Group results are affected by changing exchange rates, although print costs are largely under fixed long term contracts.
A full list of risks and uncertainties is included in the 2017 Annual Report and Accounts.
INDEPENDENT REVIEW REPORT TO BLOOMSBURY PUBLISHING PLC
Conclusion
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 August 2017 which comprises condensed consolidated interim income statement, condensed consolidated interim statement of comprehensive income, condensed consolidated interim statement of financial position, condensed consolidated interim statement of changes in equity and condensed interim statement of cash flows and the related explanatory notes.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 August 2017 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and the Disclosure Guidance and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the half-yearly financial report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA.
The annual financial statements of the group are prepared in accordance with International Financial Reporting Standards as adopted by the EU. The directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the company in accordance with the terms of our engagement to assist the company in meeting the requirements of the DTR of the UK FCA. Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.
John Bennett
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London
E14 5GL
24 October 2017
This information is provided by RNS
The company news service from the London Stock Exchange
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