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BMY Bloomsbury Publishing Plc

528.00
8.00 (1.54%)
28 Mar 2024 - Closed
Delayed by 15 minutes
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
  8.00 1.54% 528.00 523.00 528.00 529.00 521.00 529.00 90,244 16:35:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Books: Pubg, Pubg & Printing 264.1M 20.24M 0.2497 20.87 422.32M

Bloomsbury Publishing PLC Unaudited Interim Results (2557D)

27/10/2020 7:00am

UK Regulatory


Bloomsbury Publishing (LSE:BMY)
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TIDMBMY

RNS Number : 2557D

Bloomsbury Publishing PLC

27 October 2020

BLOOMSBURY PUBLISHING PLC

("Bloomsbury" or "the Company")

Unaudited Interim Results for the six months ended 31 August 2020

Record first half earnings performance

Interim dividend declared

Bloomsbury, the leading independent publisher, today announces unaudited results for the six months ended 31 August 2020.

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

"Bloomsbury experienced excellent trading in the first half with year-on-year profit growth of 60% to GBP4.0 million. This has delivered our highest first half earnings since 2008 and exceeded the Board's expectations.

Online book sales and e-book revenues were significantly higher.

The Consumer division had an excellent performance with 17% revenue growth and a GBP2.1 million increase in profit before tax and highlighted items to GBP2.7 million. Stand-out bestsellers during the period included Why I'm No Longer Talking to White People about Race, Crescent City: House of Earth and Blood, White Rage, Humankind and Such A Fun Age.

In the Non-Consumer division, our strategy of developing online academic resources, conceived five years ago, meant we were well placed to benefit from the accelerated shift by academic institutions to digital products to support remote learning. We saw 47% growth in sales of Bloomsbury Digital Resources as a result.

Bloomsbury is in a strong financial position, with net cash of GBP44.1 million at 31 August 2020, as a result of excellent trading in the first half and the swift measures taken by the Board to control costs and strengthen Bloomsbury's balance sheet. The strength of our financial position meant that we continued to operate effectively, invest in new content, and build a strong pipeline of authors and titles. Bloomsbury is well positioned for the future, with sufficient working capital and significant headroom for acquisitions opportunities.

In light of our strong financial position and the importance of our dividend policy, we are resuming an interim dividend of 1.28 pence per share, in line with last year.

I would like to thank our staff, authors, illustrators, distributors and suppliers for their resilience, initiative and determination. They continue to be motivated, adaptable and effective, which is demonstrated by the strength of our first half performance. This, together with the strength of our publishing strategy supported by our solid financial position, gives me confidence in Bloomsbury's future performance."

Financial Highlights

   --    Revenues increased by 10% to GBP78.3 million (2019: GBP71.3 million) 

-- Profit before taxation and highlighted items(1) grew by 60% to GBP4.0 million (2019: GBP2.5 million)

   --    Profit before taxation grew by GBP1.7 million to GBP3.0 million (2019: GBP1.3 million) 

-- Diluted earnings per share, excluding highlighted items(1) , grew by 55% to 4.13 pence (2019: 2.66 pence)(2)

   --    Diluted earnings per share grew by 131% to 2.87 pence (2019: 1.24 pence)(2) 

-- Net cash of GBP44.1 million at 31 August 2020, up GBP24.0 million from last year (2019: GBP20.1 million)

   --    Interim dividend of 1.28 pence per share (2019: 1.28 pence per share) 

Operational Highlights

Consumer Division

   --    Consumer revenue growth of 17% to GBP48.6 million (2019: GBP41.5 million) 

-- Consumer profit before taxation and highlighted items (1) increase of GBP2.1 million to GBP2.7 million (2019: GBP0.6 million)

-- Excellent Adult Trade performance, with revenue up 16% to GBP18.8 million (2019: GBP16.2 million) and profit before taxation and highlighted items (1) of GBP1.1 million (2019: GBP0.1 million loss)

-- Excellent Children's Trade performance, with revenue up 18% to GBP29.8 million (2019: GBP25.3 million) and profit before taxation and highlighted items (1) of GBP1.7 million (2019: GBP0.8 million)

-- Strong sales of Sarah J. Maas front and backlist titles; Harry Potter sales were robust; encouraging growth in other Children's titles

Non-Consumer Division

   --    Non-Consumer revenues of GBP29.7 million (2019: GBP29.9 million) 

-- Resilient Academic & Professional performance, with Non-Consumer revenue within 1% of 2019 and profit before taxation and highlighted items (1) of GBP1.4 million (2019: GBP1.8 million)

   --    Bloomsbury Digital Resources ("BDR") revenues up 47% to GBP5.6 million 

-- Strong growth in BDR products and Academic e-books, offset by an expected reduction in print sales

Note

(1) Highlighted items comprise amortisation of acquired intangible assets and legal and other professional costs and restructuring costs relating to ongoing and completed acquisitions.

(2) Restatement of earnings per share due to bonus issue of shares in the period.

For further information, please contact:

 
 Bloomsbury Publishing Plc 
 Nigel Newton, Chief Executive     nigel.newton@bloomsbury.com 
 Penny Scott-Bayfield, Group       penny.scott-bayfield@bloomsbury.com 
  Finance Director 
 Hudson Sandler                    +44 (0) 20 7796 4133 
 Dan de Belder / Hattie Dreyfus    bloomsbury@hudsonsandler.com 
 

The information in this announcement has not been audited or otherwise independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this announcement, or its contents, or otherwise arising in connection with this announcement.

This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares of the Company.

Certain statements, statistics and projections in this announcement are or may be forward looking. By their nature, forward--looking statements involve a number of risks, uncertainties or assumptions that may or may not occur and actual results or events may differ materially from those expressed or implied by the forward-looking statements. Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement. Accordingly, forward-looking statements contained in this announcement regarding past trends or activities should not be taken as representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which are based on the knowledge and information available only at the date of this announcement's preparation.

The Company does not undertake any obligation to update or keep current the information contained in this announcement, including any forward--looking statements, or to correct any inaccuracies which may become apparent and any opinions expressed in it are subject to change without notice.

References in this announcement to other reports or materials, such as a website address, have been provided to direct the reader to other sources of information on Bloomsbury Publishing Plc which may be of interest. Neither the content of Bloomsbury's website nor any website accessible by hyperlinks from Bloomsbury's website nor any additional materials contained or accessible thereon, are incorporated in, or form part of, this announcement.

Chief Executive's statement

Overview

Bloomsbury has had an excellent first half of the year. Revenue grew by 10% to GBP78.3 million (2019: GBP71.3 million), and profit before taxation and highlighted items increased by 60% to GBP4.0 million (2019: GBP2.5 million). Profit before taxation was GBP3.0 million (2019: GBP1.3 million).

The strength of demand for our titles, in print and e-book, and the surge in sales of our digital products demonstrates the strength of our long-term growth strategy.

Bloomsbury Digital Resources ("BDR") is performing very well, with 47% revenue growth year-on-year. This has positioned us well to deliver growth from the accelerated shift to digital learning, with a threefold increase in the number of new customers in the first half. The combination of excellent digital products and the strength and range of our partnerships enable us to continue to deliver growth from the high quality platforms and infrastructure we have built.

The highlighted items of GBP1.0 million (2019: GBP1.2 million) consist of the amortisation of acquired intangible assets of GBP0.9 million (2019: GBP0.9 million) and legal and other professional fees relating to acquisitions of GBP0.1 million (2019: GBP0.3 million). The effective rate of tax for the period was 23.6% (2019: 25.6%). The effective rate of tax, excluding highlighted items, was 17.3% (2019: 17.7%). Diluted earnings per share for the period, excluding highlighted items, was 4.13 pence (2019: 2.66 pence). Including highlighted items, profit before taxation was GBP3.0 million (2019: GBP1.3 million) and diluted earnings per share was 2.87 pence (2019: 1.24 pence).

Balance sheet and liquidity

The Board believes our strong balance sheet ensures we have sufficient working capital to fulfil our long-term goals and deliver on our growth strategy.

At 31 August 2020, Bloomsbury held net cash of GBP44.1 million (2019: GBP20.1 million). During the first half, our cash generation was stronger than expected, due to the combination of better than anticipated trading, reduced costs, continued focus on working capital with a GBP3.7 million (14%) reduction in inventory and good cash collection. We also received a GBP1.3 million loan from the US Government under the Paycheck Protection Program ("PPP"). This resulted in a net cash inflow, excluding the equity placing, dividends, PPP loan and acquisitions, of GBP4.8 million (2019: net outflow of GBP2.1 million). In addition, the net equity placing was GBP8.0 million (2019: nil) and the final dividend was settled by way of a bonus issue (2019: final dividend of GBP5.1 million).

Dividend

The Group's dividend policy is supported by strong cash cover. The Board has declared an interim dividend of 1.28 pence per share, in line with the interim dividend for the six months ended 31 August 2019. The dividend will be paid on 4 December 2020 to Shareholders on the register on the record date of 6 November 2020.

Acquisitions

With trading having been stronger than expected, the Board expects to be able to use the proceeds of the equity placing for future growth opportunities. We are actively considering acquisition opportunities in line with our long-term growth strategy of growing our Non-Consumer portfolio.

During the period we successfully completed the integration of Oberon Books Limited, acquired in December 2019, and the assets of Zed Books Limited, acquired in March 2020. Bloomsbury has a successful track record in strategic acquisitions, with 16 acquisitions completed since 2008.

Long-term growth strategy

Bloomsbury's long-term growth strategy is aimed at diversifying into digital channels and building quality revenues, increasing earnings and building on the success of the last five years. This has meant that we have been well placed to benefit from recent changes, including the accelerated shift to digital products to support remote learning and consumer demand for titles across multiple platforms.

Our long-term objectives include:

Non-Consumer

o Growing Bloomsbury's portfolio in Non-Consumer publishing. These are characterised by higher, more predictable margins and greater digital and global opportunities: 2020/21 H1 Progress: delivered 47% growth in Non-Consumer digital revenues

o Achieve BDR revenue of GBP15 million and profit of GBP5 million for 2021/22: 2020/21 H1 Progress: delivered GBP5.6 million revenue, up 47%, and GBP1.2m profit, up GBP1.1m

Consumer

o Discover, nurture, champion and retain high quality authors and illustrators in our Consumer division, while looking at new ways to leverage our backlist. 2020/21 H1 Progress: UK and US bestsellers included Why I'm No Longer Talking to White People about Race by Reni Eddo-Lodge, White Rage by Carol Anderson, Humankind by Rutger Bregman and Such a Fun Age by Kiley Reid

o Grow our key authors through effective publishing across all formats alongside strategic sales and marketing. 2020/21 H1 Progress: Sales of Sarah J. Maas' titles increased by 131%

o As the originating publisher of J.K. Rowling's Harry Potter, to ensure that new children discover and read it for pleasure every year. 2020/21 H1 Progress: Sales of Harry Potter titles were robust and the paperback edition of Harry Potter and the Philosopher's Stone was the fifth bestselling children's book of the year to date on UK Nielsen Bookscan, twenty-three years after it was first published

International Expansion

o Expand international revenues and reduce reliance on UK market: 2020/21 H1 Progress: delivered overseas revenue of 67% of Group revenue; 70% of Academic BDR revenue is international

Employee Experience and Engagement, Diversity and Inclusion

Our success is driven by our colleagues' expertise, passion and commitment. We understand the importance of attracting, supporting and engaging colleagues wherever they work.

o To be an attractive employer for all individuals seeking a career in publishing regardless of background or identity;

o Focus on targeted initiatives to create an environment that nurtures talent, stimulates creativity and collaboration, is respectful of difference and supports well-being; and

o Bloomsbury is committed to equality, diversity and inclusion. We condemn systemic racism in society in all its forms. We are dedicated to finding ways to improve our industry's practices and our own company.

o 2020/21 H1 Progress:

o We have expanded our Diversity and Inclusion networks globally, to ensure engagement with our staff on these vital topics;

o Working in partnership with the Black Writers' Guild to increase diversity in staff and authors;

o With our staff, we are working on recruitment, staff engagement, training and our networks;

o With our publishing, we seek to publish diverse voices. We continue to look for books that will ensure our lists represent the societies we live in. We intend to monitor our publishing so we can ensure that our list balance is representative of those societies; and partner with organisations that can help us achieve these aims; and

o Increased our focus on employee engagement, with more frequent communication across Bloomsbury, including Town Hall meetings, and continued employee voice meetings. Having transitioned to remote working we have designed our long-term strategy for flexible working.

Sustainability

Continue to switch to renewable energy across all sites, with the goal of Net Zero emissions in line with the Paris Agreement

o 2020/21 H1 Progress: We appointed a Head of Sustainability, working with the Executive Committee Sponsor, to oversee green initiatives across Bloomsbury worldwide. Our focus in H2 is to establish our targets to reduce Scope 1, 2 and 3 emissions. Scope 1 and 2 emissions are already being measured and we have appointed Trucost to further measure Scope 3 emissions. Furthermore, we have introduced our long-term flexible working policy to reduce emissions from staff travel; and

o Supporting the Woodland Trust and Reforest'Action for three years.

Consumer Division

The Consumer division consists of Adult and Children's trade publishing. The division delivered excellent revenue growth of 17% to GBP48.6 million (2019: GBP41.5 million). Profit before taxation and highlighted items increased by GBP2.1 million to GBP2.7 million (2019: GBP0.6 million). These very strong results reflect robust demand across both print and digital for front and backlist titles, and the growth and effectiveness of online sales channels. Frontlist highlights included Sarah J. Maas' bestselling Crescent City: House of Earth and Blood and the Sunday Times bestseller, Humankind by Rutger Bregman. Reni Eddo-Lodge's Why I'm No Longer Talking to White People about Race was the number one paperback Sunday Times bestseller for seven weeks and White Rage by Carol Anderson reached number eight on the New York Times bestseller list.

Our excellent publishing has been recognised with a number of awards, with Such a Fun Age by Kiley Reid and Apeirogon by Colum McCann being longlisted for the Booker Prize. Ka te Summerscale's The Haunting of Alma Fielding: A True Ghost Story was shortlisted for the Baillie Gifford Prize . The Raven Books crime and thriller imprint was shortlisted for the second year in a row for best Crime and Mystery Publisher by the Crime Writers Association ('CWA'), and Between Two Evils by Eva Dolan and The Anarchists' Club by Alex Reeve shortlisted for the prestigious CWA Dagger awards. In addition, we have been shortlisted for the Books Are My Bag Reader Awards with The Devil and the Dark Water by Stuart Turton, Humankind by Rutger Bregman, Cinderella is Dead by Kalynn Bayron, and Kiley Reid, the author of Such a Fun Age. Harry Potter and the Philosopher's Stone won the Best Book of the last 30 years at the British Book Awards in July. In addition, Bloomsbury won the IPG Award for Education Publisher of the Year for the second year in a row in September 2020.

Our excellent bestseller list performance in the last six months has continued to build the positive profile and momentum of our consumer publishing, positioning us well with a strong pipeline of authors and titles in the future.

Adult Trade

The Adult team delivered growth with a 16% increase in revenue to GBP18.8 million and a GBP1.2 million increase in profit before taxation and highlighted items to GBP1.1 million (2019: loss of GBP0.1 million).

Sunday Times bestsellers in the period included Humankind by Rutger Bregman and Kiley Reid's Such a Fun Age. Reni Eddo-Lodge's Why I'm No Longer Talking to White People about Race was the number one paperback Sunday Times bestseller for seven weeks and White Rage by Carol Anderson reached number eight on the New York Times bestseller list. Cookery success on the front and backlist included A Table for Friends, by Skye McAlpine, Dishoom, and Tom Kerridge's Lose Weight for Good.

Children's Trade

Children's sales increased by 18% to GBP29.8 million (2019: GBP25.3 million). There was strong demand for our classic titles, led by J.K. Rowling's Harry Potter series, as well as Sarah J. Maas' latest bestseller, Crescent City: House of Earth and Blood.

Sales of Harry Potter titles were robust. Harry Potter and the Philosopher's Stone was the UK's fifth bestselling children's book of the year to date, twenty-three years after it was first published. We are delighted that every year these classics reach a new generation of readers. UK print sales of Harry Potter books increased by 8% between mid-July and the end of September, according to Nielsen Bookscan.

Sarah J. Maas revenues grew by 131%, reflecting her new bestselling hardback title, Crescent City: House of Earth and Blood and strong sales of her backlist titles. Last year there were no new titles in the first half. We will publish two new titles this financial year: Crescent City: House of Earth and Blood, published in March 2020, and one in the second half: A Court of Silver Flames, publishing in February 2021.

Revenues for the rest of the Children's division grew by 6% year-on-year. H ighlights in the Children's list included The Wild Way Home by Sophie Kirtley, The Great Godden by Meg Rosoff and the fourth in the bestselling series, Kid Normal and the Final Five by Greg James and Chris Smith, illustrated by Erica Salcedo.

Non-Consumer Division

The Non-Consumer division consists of Academic & Professional and Special Interest. Revenues in the division were within 1% of last year at GBP29.7 million (2019: GBP29.9 million). Profit before taxation and highlighted items for the Non-Consumer division was GBP1.4 million (2019: GBP1.8 million).

Academic & Professional revenues increased by 1% to GBP20.1 million (2019: GBP19.6 million) and profit was GBP1.8 million (2019: GBP1.8 million). The accelerated demand for digital products and swift adoption of digital learning by academic institutions helped drive the excellent performance of BDR and accelerated demand for e-books, which offset reduced print sales.

We are focused on delivering growth from accelerating our established and most successful products, including the award-winning Drama Online, building partnerships and launching new products. We delivered a 297% increase in the number of new customers year-on-year, and maintained our existing customer retention rate at over 90%. With Taylor & Francis we have delivered two modules and with Human Kinetics, we delivered the new product and a further module will be launched in the second half. New partnerships include the Yale University Press, the Liverpool University Press and the Stratford Festival. In total, we delivered two new products and two new modules in the first half and are on track to launch a further four new modules in the second half as planned.

Special Interest generated revenues of GBP9.6 million (2019: GBP10.0 million), with resilient demand for wildlife titles, Wisden and Osprey games during the period. The result was a GBP0.3 million loss (2019: breakeven).

Social initiatives

As part of Bloomsbury's ongoing commitment to the wider community, we have undertaken further charitable initiatives. We published The Book of Hopes: Words and Pictures to Comfort, Inspire and Entertain Children , edited by Katherine Rundell, with contributions from more than 110 children's writers and illustrators. Free to read online, this collection of short stories, poems, essays and pictures is also published as a hardback gift edition, with a donation from the sale of each book going to NHS Charities Together. During Waterstones' Book of the Month promotion, we donated 10% of their sales of Reni Eddo-Lodge's Why I'm No Longer Talking to White People About Race between BTEG and Inquest. These new initiatives are in addition to our three-year partnership with the National Literacy Trust with a particular focus on Hastings, one of the UK's most deprived local authority areas. We gave many copies of Harry Potter and the Philosopher's Stone through the National Literacy Trust in Hastings. In addition, for every copy of Dishoom: From Bombay with Love sold, we donate towards the price of a meal for a hungry child to both of Dishoom's chosen charities, Magic Breakfast and The Akshaya Patra Foundation.

Recent trading and outlook

Our results for the first half were excellent and demonstrate the strength of our long-term strategy and resilient demand for our titles, in both print and digital formats.

Bloomsbury is in a strong financial position, with net cash of GBP44.1 million, thanks to the support of our shareholders, robust cash generation and stronger than anticipated trading in the first half. We are actively considering acquisition opportunities, in line with our long-term growth strategy.

We have continued to trade well during the first six weeks of the second half. In previous years, our revenue and earnings have been weighted towards the second half, with sales of trade titles rising for Christmas and sales of academic titles being strongest at the beginning of the academic year in the Autumn.

Our strong Consumer book list for the second half includes Quidditch Through the Ages by J.K. Rowling, illustrated by Emily Gravett, Fantastic Beasts and the Wonder of Nature in association with the Natural History Museum exhibition, Sarah J. Maas' A Court of Silver Flames, the fourth in the Court of Thorns and Roses series and GCHQ: Behind the Enigma - The Authorised History of GCHQ by John Ferris. Front and backlist Sunday Times bestsellers in the second half to date include Piranesi by Susanna Clarke - also a Washington Post bestseller - and the paperback editions of Why I'm No Longer Talking to White People about Race by Reni Eddo-Lodge, Three Women by Lisa Taddeo, The Madness of Crowds by Douglas Murray and The Anarchy by William Dalrymple. Highlights in Children's include the third in Brigid Kemmerer's Cursebreaker series, A Vow so Bold and Deadly.

We are confident about the future of publishing. The short-term is difficult to predict because of the pandemic.

Condensed Consolidated Interim Income Statement

For the six months ended 31 August 2020

 
 
                                                     6 months      6 months           Year 
                                                        ended         ended          ended 
                                                    31 August     31 August    29 February 
                                                         2020          2019           2020 
                                           Notes      GBP'000       GBP'000        GBP'000 
----------------------------------------  ------  -----------  ------------  ------------- 
 
 Revenue                                       3       78,287        71,341        162,772 
 Cost of sales                                       (37,051)      (34,512)       (74,978) 
----------------------------------------  ------  -----------  ------------  ------------- 
 Gross profit                                          41,236        36,829         87,794 
 Marketing and distribution costs                     (9,842)       (9,779)       (21,373) 
 Administrative expenses                             (28,013)      (25,580)       (52,949) 
 Share of result of joint venture                        (39)             -              - 
 Operating profit before highlighted 
  items                                                 4,343         2,684         15,947 
 Highlighted items                             4      (1,001)       (1,214)        (2,475) 
----------------------------------------  ------  -----------  ------------  ------------- 
 Operating profit                                       3,342         1,470         13,472 
 Finance income                                            71            75            270 
 Finance costs                                          (378)         (244)          (513) 
----------------------------------------  ------  -----------  ------------  ------------- 
 Profit before taxation and highlighted 
  items                                                 4,036         2,515         15,704 
 Highlighted items                             4      (1,001)       (1,214)        (2,475) 
----------------------------------------  ------  -----------  ------------  ------------- 
 Profit before taxation                        3        3,035         1,301         13,229 
 Taxation                                               (715)         (333)        (2,728) 
----------------------------------------  ------  -----------  ------------  ------------- 
 Profit for the period attributable 
  to owners of the Company                              2,320           968         10,501 
----------------------------------------  ------  -----------  ------------  ------------- 
 
 Earnings per share attributable 
  to owners of the Company 
 Basic earnings per share (1)                  6        2.89p         1.25p         13.58p 
 Diluted earnings per share(1)                 6        2.87p         1.24p         13.40p 
----------------------------------------  ------  -----------  ------------  ------------- 
 

The accompanying notes form an integral part of this condensed consolidated interim financial report.

(1) Restatement of earnings per share due to the bonus issue of shares (note 8).

Condensed Consolidated Interim Statement of Comprehensive Income

For the six months ended 31 August 2020

 
                                                6 months     6 months           Year 
                                                   ended        ended          ended 
                                               31 August    31 August    29 February 
                                                    2020         2019           2020 
                                                 GBP'000      GBP'000        GBP'000 
-------------------------------------------  -----------  -----------  ------------- 
 Profit for the period                             2,320          968         10,501 
 
   Other comprehensive income 
   Items that may be reclassified to the 
   income statement: 
     Exchange differences on translating 
      foreign operations                         (1,176)        3,550            856 
 
 Items that may not be reclassified 
  to the income statement: 
     Remeasurements on the defined benefit 
      pension scheme                                   4        (112)          (115) 
-------------------------------------------  -----------  -----------  ------------- 
 Other comprehensive income for the 
  period net of tax                              (1,172)        3,438            741 
-------------------------------------------  -----------  -----------  ------------- 
 Total comprehensive income for the 
  period attributable to owners of the 
  Company                                          1,148        4,406         11,242 
-------------------------------------------  -----------  -----------  ------------- 
 
 

Items in the statement above are disclosed net of tax.

Condensed Consolidated Interim Statement of Financial Position

At 31 August 2020

 
                                        Notes   31 August   31 August   29 February 
                                                     2020        2019          2020 
                                                  GBP'000     GBP'000       GBP'000 
-------------------------------------  ------  ----------  ----------  ------------ 
 Assets 
    Goodwill                                       44,865      45,254        45,030 
    Other intangible assets                        21,881      21,048        21,630 
    Investments                                       477         300           516 
    Property, plant and equipment                   1,774       2,020         1,914 
    Right-of-use assets                            12,333      13,052        13,343 
    Deferred tax assets                             2,960       2,579         2,756 
    Trade and other receivables             7       1,092       1,338         1,237 
-------------------------------------  ------  ----------  ----------  ------------ 
 Total non-current assets                          85,382      85,591        86,426 
-------------------------------------  ------  ----------  ----------  ------------ 
 
    Inventories                                    26,375      31,204        27,164 
    Trade and other receivables             7      85,734      85,959        84,805 
    Cash and cash equivalents                      44,058      20,090        31,345 
-------------------------------------  ------  ----------  ----------  ------------ 
 Total current assets                             156,167     137,253       143,314 
-------------------------------------  ------  ----------  ----------  ------------ 
 Total assets                                     241,549     222,844       229,740 
-------------------------------------  ------  ----------  ----------  ------------ 
 
 Liabilities 
    Retirement benefit obligations                    139         217           185 
    Deferred tax liabilities                        2,435       2,328         2,347 
    Borrowings                                     12,698      12,679        12,945 
    Provisions                                        202         148           182 
-------------------------------------  ------  ----------  ----------  ------------ 
 Total non-current liabilities                     15,474      15,372        15,659 
-------------------------------------  ------  ----------  ----------  ------------ 
 
    Trade and other payables                       64,347      62,589        61,844 
    Borrowings                                      2,442       1,650         1,585 
    Current tax liabilities                             -           -           328 
    Provisions                                        665          43           651 
-------------------------------------  ------  ----------  ----------  ------------ 
 Total current liabilities                         67,454      64,282        64,408 
-------------------------------------  ------  ----------  ----------  ------------ 
 Total liabilities                                 82,928      79,654        80,067 
-------------------------------------  ------  ----------  ----------  ------------ 
 Net assets                                       158,621     143,190       149,673 
-------------------------------------  ------  ----------  ----------  ------------ 
 
 Equity 
    Share capital                                   1,020         942           942 
    Share premium                                  47,319      39,388        39,388 
    Translation reserve                             8,331      12,201         9,507 
    Other reserves                                  8,682       7,201         7,778 
    Retained earnings                              93,269      83,458        92,058 
-------------------------------------  ------  ----------  ----------  ------------ 
 Total equity attributable to owners 
  of the Company                                  158,621     143,190       149,673 
-------------------------------------  ------  ----------  ----------  ------------ 
 

Condensed Consolidated Interim Statement of Changes in Equity

At 31 August 2020

 
                                                                                                   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 2020           942    39,388         9,507      1,803           22         6,724     (771)     92,058   149,673 
 Profit for the 
  period                     -         -             -          -            -             -         -      2,320     2,320 
 Other comprehensive 
 income 
     Exchange 
      differences on 
      translating 
      foreign 
      operations             -         -       (1,176)          -            -             -         -          -   (1,176) 
     Remeasurements 
      on the defined 
      benefit 
      pension scheme         -         -             -          -            -             -         -          4         4 
--------------------  --------  --------  ------------  ---------  -----------  ------------  --------  ---------  -------- 
 Total comprehensive 
  income for the 
  period                     -         -       (1,176)          -            -             -         -      2,324     1,148 
 Transactions with 
 owners 
     Issue of share 
      capital               47     7,931             -          -            -             -         -          -     7,978 
     Bonus issue of 
      share capital         31         -             -          -            -             -         -       (31)         - 
     Purchase of 
      shares by the 
      Employee 
      Benefit Trust          -         -             -          -            -             -     (536)          -     (536) 
     Share options 
      exercised              -         -             -          -            -             -     1,017    (1,017)         - 
     Deferred tax on 
      share-based 
      payment 
      transactions           -         -             -          -            -             -         -       (65)      (65) 
     Share-based 
      payment 
      transactions           -         -             -          -            -           423         -          -       423 
--------------------  --------  --------  ------------  ---------  -----------  ------------  --------  ---------  -------- 
 Total transactions 
  with owners of the 
  Company                   78     7,931             -          -            -           423       481    (1,113)     7,800 
--------------------  --------  --------  ------------  ---------  -----------  ------------  --------  ---------  -------- 
 At 31 August 2020       1,020    47,319         8,331      1,803           22         7,147     (290)     93,269   158,621 
--------------------  --------  --------  ------------  ---------  -----------  ------------  --------  ---------  -------- 
 
 
                                                                                                   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 2019           942    39,388         8,651      1,803           22         6,095     (802)     87,639   143,738 
 Profit for the 
  period                     -         -             -          -            -             -         -        968       968 
 Other comprehensive 
 income 
     Exchange 
      differences on 
      translating 
      foreign 
      operations             -         -         3,550          -            -             -         -          -     3,550 
     Remeasurements 
      on the defined 
      benefit 
      pension scheme         -         -             -          -            -             -         -      (112)     (112) 
--------------------  --------  --------  ------------  ---------  -----------  ------------  --------  ---------  -------- 
 Total comprehensive 
  income for the 
  period                     -         -         3,550          -            -             -         -        856     4,406 
 Transactions with 
 owners 
     Dividends to 
      equity holders 
      of the Company         -         -             -          -            -             -         -    (5,051)   (5,051) 
     Share options 
      exercised              -         -             -          -            -             -         2          -         2 
     Deferred tax on 
      share-based 
      payment 
      transactions           -         -             -          -            -             -         -         14        14 
     Share-based 
      payment 
      transactions           -         -             -          -            -            81         -          -        81 
--------------------  --------  --------  ------------  ---------  -----------  ------------  --------  ---------  -------- 
 Total transactions 
  with owners of the 
  Company                    -         -             -          -            -            81         2    (5,037)   (4,954) 
--------------------  --------  --------  ------------  ---------  -----------  ------------  --------  ---------  -------- 
 At 31 August 2019         942    39,388        12,201      1,803           22         6,176     (800)     83,458   143,190 
--------------------  --------  --------  ------------  ---------  -----------  ------------  --------  ---------  -------- 
 
 
                                                                                                                               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 2019                                       942    39,388         8,651      1,803           22         6,095     (802)     87,639   143,738 
 Profit for the period                                   -         -             -          -            -             -         -     10,501    10,501 
 Other comprehensive income 
     Exchange differences on translating foreign 
      operations                                         -         -           856          -            -             -         -          -       856 
     Remeasurements on the defined benefit 
      pension scheme                                     -         -             -          -            -             -         -      (115)     (115) 
------------------------------------------------  --------  --------  ------------  ---------  -----------  ------------  --------  ---------  -------- 
 Total comprehensive income for the period               -         -           856          -            -             -         -     10,386    11,242 
 Transactions with owners 
     Dividends to equity holders of the Company          -         -             -          -            -             -         -    (6,009)   (6,009) 
      Share options exercised                            -         -             -          -            -             -        31        (4)        27 
     Deferred tax on share-based payment 
      transactions                                       -         -             -          -            -             -         -         46        46 
     Share-based payment transactions                    -         -             -          -            -           629         -          -       629 
------------------------------------------------  --------  --------  ------------  ---------  -----------  ------------  --------  ---------  -------- 
 Total transactions with owners of the Company           -         -             -          -            -           629        31    (5,967)   (5,307) 
------------------------------------------------  --------  --------  ------------  ---------  -----------  ------------  --------  ---------  -------- 
 At 29 February 2020                                   942    39,388         9,507      1,803           22         6,724     (771)     92,058   149,673 
------------------------------------------------  --------  --------  ------------  ---------  -----------  ------------  --------  ---------  -------- 
 
 
 Condensed Consolidated Interim Statement of Cash Flows 
  For the six months ended 31 August 2020 
                                             6 months   6 months ended    Year ended 
                                                ended 
                                            31 August        31 August   29 February 
                                                 2020             2019          2020 
                                              GBP'000          GBP'000       GBP'000 
-----------------------------------------  ----------  ---------------  ------------ 
 Cash flows from operating activities 
 
 Profit for the period                          2,320              968        10,501 
 Adjustments for: 
   Depreciation                                   226              247           502 
   Depreciation of right-of-use assets            908              860         1,775 
   Amortisation of intangible assets            2,402            2,149         4,301 
   Finance income                                (71)             (75)         (270) 
   Finance costs                                  378              244           513 
   Share of loss of joint venture                  39                -             7 
   Share-based payment charges                    456              100           761 
   Tax expense                                    715              333         2,728 
-----------------------------------------  ----------  ---------------  ------------ 
                                                7,373            4,826        20,818 
 Decrease/(increase) in inventories               874          (3,571)         (620) 
 Increase in trade and other receivables      (1,029)          (2,638)       (4,385) 
 Increase in trade and other payables           2,800            1,310         2,489 
-----------------------------------------  ----------  ---------------  ------------ 
 Cash generated from/(used in) operating 
  activities                                   10,018             (73)        18,302 
 Income taxes paid                            (1,910)            (622)       (1,706) 
-----------------------------------------  ----------  ---------------  ------------ 
 Net cash generated from/(used in) 
  operating activities                          8,108            (695)        16,596 
-----------------------------------------  ----------  ---------------  ------------ 
 Cash flows from investing activities 
 Purchase of property, plant and 
  equipment                                      (89)            (131)         (294) 
 Purchases of intangible assets               (1,299)          (1,226)       (3,137) 
 Purchase of business, net of cash 
  acquired                                          -            (310)         (310) 
 Purchase of rights to assets                 (1,490)                -       (1,213) 
 Purchase of share of joint venture                 -                -         (223) 
 Interest received                                 71               75           254 
 Net cash used in investing activities        (2,807)          (1,592)       (4,923) 
-----------------------------------------  ----------  ---------------  ------------ 
 Cash flows from financing activities 
 Equity dividends paid                              -          (5,051)       (6,009) 
 Purchase of shares by the Employee             (536)                -             - 
  Benefit Trust 
 Proceeds from exercise of share 
  options                                           -                2            27 
 Proceeds from share issue                      7,978                -             - 
 New loan advances                              1,450                -             - 
 Repayment of lease liabilities                 (583)            (560)       (1,531) 
 Lease liabilities interest paid                (235)            (242)         (492) 
 Other interest paid                            (143)              (2)           (3) 
 Net cash generated from/(used in) 
  financing activities                          7,931          (5,853)       (8,008) 
-----------------------------------------  ----------  ---------------  ------------ 
 Net increase/(decrease) in cash 
  and cash equivalents                         13,232          (8,140)         3,665 
 Cash and cash equivalents at beginning 
  of period                                    31,345           27,580        27,580 
 Exchange (loss)/gain on cash and 
  cash equivalents                              (519)              650           100 
-----------------------------------------  ----------  ---------------  ------------ 
 Cash and cash equivalents at end 
  of period                                    44,058           20,090        31,345 
-----------------------------------------  ----------  ---------------  ------------ 
 

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 2020 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 29 February 2020.

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 29 February 2020 and should be read in conjunction with the Annual Report 2020. 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 2020 Annual Report refers to other new standards effective from 1 March 2020. None of these standards have had a material impact in these financial statements.

The comparative financial information for the year ended 29 February 2020 does not constitute statutory accounts for that financial year. This information was extracted from the statutory accounts for the year ended 29 February 2020, 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 27 October 2020.

   b)     Going concern 

The Directors are confident that the Group has adequate resources to continue in operational existence and will have sufficient funds to meet its liabilities as they fall due for at least 12 months from the date of approval of the condensed consolidated interim financial statements and therefore have prepared the condensed consolidated interim financial statements on a going concern basis. 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 coronavirus.

The Board has modelled a severe but plausible pessimistic downside scenario, including the continued impact of coronavirus. This assumes:

-- Print sales drop by 25% due to continued uncertainty in the retail sector and economic pressure;

-- Digital sales 5% lower due to economic pressure; and

-- Downside assumptions about extended debtor days to February 2022.

Under this severe but plausible downside scenario, the Group has sufficient liquidity to be able to manage these downside assumptions. This process supports the view that for the period to 28 February 2022, the Group is expected to be able to operate within the level of its current financing and meet its covenant requirements.

The Group's bank facilities consist of a GBP8 million to GBP12 million committed revolving loan facility (amount dependent on time during the year to match Bloomsbury's cash flow cycle) which expires in May 2022 and an uncommitted incremental term loan facility of up to GBP6 million. At 31 August 2020, the Group had not drawn the facility.

   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 2020 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. Non-Consumer is split between two operating segments: Academic & Professional and Special Interest.

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 analysis by segment is shown below:

 
 
                   Children's     Adult   Consumer       Academic    Special   Non-Consumer   Unallocated      Total 
                        Trade     Trade                         &   Interest 
                                                     Professional 
 Six months           GBP'000              GBP'000                   GBP'000        GBP'000                  GBP'000 
 ended 31 August 
 2020                           GBP'000                   GBP'000                                 GBP'000 
----------------  -----------  --------  ---------  -------------  ---------  -------------  ------------  --------- 
 External 
  revenue              29,767    18,836     48,603         20,083      9,601         29,684             -     78,287 
 Cost of sales       (16,002)   (9,205)   (25,207)        (7,014)    (4,830)       (11,844)             -   (37,051) 
----------------  -----------  --------  ---------  -------------  ---------                 ------------  --------- 
 Gross profit          13,765     9,631     23,396         13,069      4,771         17,840             -     41,236 
 Marketing and 
  distribution 
  costs               (3,824)   (2,647)    (6,471)        (1,945)    (1,426)        (3,371)             -    (9,842) 
----------------  -----------  --------  ---------  -------------  ---------                 ------------  --------- 
 Contribution 
  before 
  administrative 
  expenses              9,941     6,984     16,925         11,124      3,345         14,469             -     31,394 
 Administrative 
  expenses 
  excluding 
  highlighted 
  items               (8,212)   (5,887)   (14,099)        (9,273)    (3,640)       (12,913)             -   (27,012) 
 Share of joint 
  venture                   -         -          -              -          -              -          (39)       (39) 
----------------  -----------  --------  ---------  -------------  ---------                 ------------  --------- 
 Operating 
  profit/(loss) 
  before 
  highlighted 
  items                 1,729     1,097      2,826          1,851      (295)          1,556          (39)      4,343 
 Amortisation of 
  acquired 
  intangible 
  assets                    -       (9)        (9)          (767)      (107)          (874)             -      (883) 
 Other 
  highlighted 
  items                     -         -          -              -          -              -         (118)      (118) 
----------------  -----------  --------  ---------  -------------  ---------                 ------------  --------- 
 Operating 
  profit /(loss)        1,729     1,088      2,817          1,084      (402)            682         (157)      3,342 
 Finance income             -         -          -             26          -             26            45         71 
 Finance costs           (51)      (43)       (94)           (98)       (42)          (140)         (144)      (378) 
----------------  -----------  --------  ---------  -------------  ---------                 ------------  --------- 
 Profit/(loss) 
  before 
  taxation 
  and 
  highlighted 
  items                 1,678     1,054      2,732          1,779      (337)          1,442         (138)      4,036 
 Amortisation of 
  acquired 
  intangible 
  assets                    -       (9)        (9)          (767)      (107)          (874)             -      (883) 
 Other 
  highlighted 
  items                     -         -          -              -          -              -         (118)      (118) 
----------------  -----------  --------  ---------  -------------  ---------                 ------------  --------- 
 Profit/(loss) 
  before 
  taxation              1,678     1,045      2,723          1,012      (444)            568         (256)      3,035 
 Taxation                   -         -          -              -          -              -         (715)      (715) 
----------------  -----------  --------  ---------  -------------  ---------                 ------------  --------- 
 Profit/(loss) 
  for the period        1,678     1,045      2,723          1,012      (444)            568         (971)      2,320 
----------------  -----------  --------  ---------  -------------  ---------  -------------  ------------  --------- 
 
 
 
 
                   Children's     Adult   Consumer          Academic       Special   Non-Consumer   Unallocated      Total 
                        Trade     Trade                            &   Interest(1) 
                                                     Professional(1) 
 Six months           GBP'000              GBP'000                         GBP'000        GBP'000                  GBP'000 
 ended 31 August 
 2019                           GBP'000                      GBP'000                                    GBP'000 
----------------  -----------  --------  ---------  ----------------  ------------  -------------  ------------  --------- 
 External 
  revenue              25,280    16,187     41,467            19,866        10,008         29,874             -     71,341 
 Cost of sales       (13,981)   (8,913)   (22,894)           (6,521)       (5,097)       (11,618)             -   (34,512) 
----------------  -----------  --------  ---------  ----------------  ------------                 ------------  --------- 
 Gross profit          11,299     7,274     18,573            13,345         4,911         18,256             -     36,829 
 Marketing and 
  distribution 
  costs               (3,665)   (2,600)    (6,265)           (2,179)       (1,335)        (3,514)             -    (9,779) 
----------------  -----------  --------  ---------  ----------------  ------------                 ------------  --------- 
 Contribution 
  before 
  administrative 
  expenses              7,634     4,674     12,308            11,166         3,576         14,742             -     27,050 
 Administrative 
  expenses 
  excluding 
  highlighted 
  items               (6,753)   (4,768)   (11,521)           (9,297)       (3,548)       (12,845)             -   (24,366) 
----------------  -----------  --------  ---------  ----------------  ------------                 ------------  --------- 
 Operating 
  profit/(loss) 
  before 
  highlighted 
  items                   881      (94)        787             1,869            28          1,897             -      2,684 
 Amortisation of 
  acquired 
  intangible 
  assets                    -       (9)        (9)             (748)         (107)          (855)             -      (864) 
 Other 
  highlighted 
  items                     -         -          -                 -             -              -         (350)      (350) 
----------------  -----------  --------  ---------  ----------------  ------------                 ------------  --------- 
 Operating 
  profit /(loss)          881     (103)        778             1,121          (79)          1,042         (350)      1,470 
 Finance income             -         -          -                33             -             33            42         75 
 Finance costs           (89)      (49)      (138)              (71)          (33)          (104)           (2)      (244) 
----------------  -----------  --------  ---------  ----------------  ------------                 ------------  --------- 
 Profit/(loss) 
  before 
  taxation 
  and 
  highlighted 
  items                   792     (143)        649             1,831           (5)          1,826            40      2,515 
 Amortisation of 
  acquired 
  intangible 
  assets                    -       (9)        (9)             (748)         (107)          (855)             -      (864) 
 Other 
  highlighted 
  items                     -         -          -                 -             -              -         (350)      (350) 
----------------  -----------  --------  ---------  ----------------  ------------                 ------------  --------- 
 Profit/(loss) 
  before 
  taxation                792     (152)        640             1,083         (112)            971         (310)      1,301 
 Taxation                   -         -          -                 -             -              -         (333)      (333) 
----------------  -----------  --------  ---------  ----------------  ------------                 ------------  --------- 
 Profit/(loss) 
  for the period          792     (152)        640             1,083         (112)            971         (643)        968 
----------------  -----------  --------  ---------  ----------------  ------------  -------------  ------------  --------- 
 
 
 
 
                                        Children's      Adult   Consumer          Academic       Special   Non-Consumer   Unallocated      Total 
                                             Trade      Trade                            &   Interest(1) 
                                                                           Professional(1) 
 Year ended 29 February 2020               GBP'000    GBP'000    GBP'000           GBP'000       GBP'000        GBP'000       GBP'000    GBP'000 
-------------------------------------  -----------  ---------  ---------  ----------------  ------------  -------------  ------------  --------- 
 External revenue                           59,354     37,416     96,770            43,123        22,879         66,002             -    162,772 
 Cost of sales                            (30,840)   (19,627)   (50,467)          (13,606)      (10,905)       (24,511)             -   (74,978) 
-------------------------------------  -----------  ---------  ---------  ----------------  ------------                 ------------  --------- 
 Gross profit                               28,514     17,789     46,303            29,517        11,974         41,491             -     87,794 
 Marketing and distribution 
  costs                                    (8,269)    (5,619)   (13,888)           (4,636)       (2,849)        (7,485)             -   (21,373) 
-------------------------------------  -----------  ---------  ---------  ----------------  ------------                 ------------  --------- 
 Contribution before administrative 
  expenses                                  20,245     12,170     32,415            24,881         9,125         34,006             -     66,421 
 Administrative expenses excluding 
  highlighted items                       (12,845)   (10,503)   (23,348)          (19,975)       (7,151)       (27,126)             -   (50,474) 
-------------------------------------  -----------  ---------  ---------  ----------------  ------------                 ------------  --------- 
 Operating profit/(loss) before 
  highlighted items                          7,400      1,667      9,067             4,906         1,974          6,880             -     15,947 
 Amortisation of acquired intangible 
  assets                                         -       (18)       (18)           (1,504)         (214)        (1,718)             -    (1,736) 
  Other highlighted items                        -          -          -                 -             -              -         (739)      (739) 
-------------------------------------  -----------  ---------  ---------  ----------------  ------------                 ------------  --------- 
 Operating profit /(loss)                    7,400      1,649      9,049             3,402         1,760          5,162         (739)     13,472 
 Finance income                                  -          -          -               116             -            116           154        270 
 Finance costs                               (110)       (94)      (204)             (201)          (88)          (289)          (20)      (513) 
-------------------------------------  -----------  ---------  ---------  ----------------  ------------                 ------------  --------- 
 Profit/(loss) before taxation 
  and highlighted items                      7,290      1,573      8,863             4,821         1,886          6,707           134     15,704 
 Amortisation of acquired intangible 
  assets                                         -       (18)       (18)           (1,504)         (214)        (1,718)             -    (1,736) 
 Other highlighted items                         -          -          -                 -             -              -         (739)      (739) 
-------------------------------------  -----------  ---------  ---------  ----------------  ------------                 ------------  --------- 
 Profit/(loss) before taxation               7,290      1,555      8,845             3,317         1,672          4,989         (605)     13,229 
 Taxation                                        -          -          -                 -             -              -       (2,728)    (2,728) 
-------------------------------------  -----------  ---------  ---------  ----------------  ------------                 ------------  --------- 
 Profit/(loss) for the year                  7,290      1,555      8,845             3,317         1,672          4,989       (3,333)     10,501 
-------------------------------------  -----------  ---------  ---------  ----------------  ------------  -------------  ------------  --------- 
 
 

(1) The Content Services division has been moved into the Special Interest Division; digital projects moved to the Academic & Professional division.

 
                   Children's     Adult   Consumer         Academic     Special   Non-Consumer   Unallocated     Total 
                        Trade     Trade              & Professional    Interest 
 Six months           GBP'000              GBP'000                      GBP'000        GBP'000                 GBP'000 
 ended 31 August 
 2020                           GBP'000                     GBP'000                                  GBP'000 
----------------  -----------  --------  ---------  ---------------  ----------  -------------  ------------  -------- 
 Operating 
  profit / 
  (loss) 
  before 
  highlighted 
  items                 1,729    1,097       2,826            1,851       (295)          1,556          (39)     4,343 
 Depreciation             303       228        531              411         192            603             -     1,134 
 Amortisation of 
  internally 
  generated 
  intangibles             228       166        394              988         137          1,125             -     1,519 
----------------  -----------  --------  ---------  ---------------  ----------                 ------------  -------- 
 EBITDA before 
  highlighted 
  items                 2,260     1,491      3,751            3,250          34          3,284          (39)     6,996 
----------------  -----------  --------  ---------  ---------------  ----------                 ------------  -------- 
 
 
                 Children's     Adult   Consumer          Academic       Special   Non-Consumer   Unallocated     Total 
                      Trade     Trade                            &   Interest(1) 
                                                   Professional(1) 
 Six months         GBP'000              GBP'000                         GBP'000        GBP'000                 GBP'000 
 ended 31 
 August 
 2019                         GBP'000                      GBP'000                                    GBP'000 
--------------  -----------  --------  ---------  ----------------  ------------  -------------  ------------  -------- 
 Operating 
  profit / 
  (loss) 
  before 
  highlighted 
  items                 881      (94)        787             1,869            28          1,897             -     2,684 
 Depreciation           387       253        640               319           148            467             -     1,107 
 Amortisation 
  of 
  internally 
  generated 
  intangibles           186        95        281               909            95          1,004             -     1,285 
--------------  -----------  --------  ---------  ----------------  ------------                 ------------  -------- 
 EBITDA before 
  highlighted 
  items               1,454       254      1,708             3,097           271          3,368             -     5,076 
--------------  -----------  --------  ---------  ----------------  ------------                 ------------  -------- 
 
 
                 Children's     Adult   Consumer          Academic       Special   Non-Consumer   Unallocated     Total 
                      Trade     Trade                            &   Interest(1) 
                                                   Professional(1) 
 Year ended 29      GBP'000              GBP'000                         GBP'000        GBP'000                 GBP'000 
 February 2020                GBP'000                      GBP'000                                    GBP'000 
--------------  -----------  --------  ---------  ----------------  ------------  -------------  ------------  -------- 
 Operating 
  profit / 
  (loss) 
  before 
  highlighted 
  items               7,400     1,667      9,067             4,906         1,974          6,880             -    15,947 
 Depreciation           821       515      1,336               626           315            941             -     2,277 
 Amortisation 
  of 
  internally 
  generated 
  intangibles           360       210        570             1,817           178          1,995             -     2,565 
--------------  -----------  --------  ---------  ----------------  ------------                 ------------  -------- 
 EBITDA before 
  highlighted 
  items               8,581     2,392     10,973             7,349         2,467          9,816             -    20,789 
--------------  -----------  --------  ---------  ----------------  ------------                 ------------  -------- 
 

(1) The Content Services division has been moved into the Special Interest Division; digital projects moved to the Academic & Professional division.

External revenue by product type

 
                      Six months  Six months          Year 
                           ended       ended         ended 
                       31 August   31 August   29 February 
                            2020        2019          2020 
                         GBP'000     GBP'000       GBP'000 
--------------------  ----------  ----------  ------------ 
Print                     57,687      56,609       129,115 
Digital                   17,625      11,264        24,135 
Rights and services        2,975       3,468         9,522 
--------------------  ----------  ----------  ------------ 
Total                     78,287      71,341       162,772 
--------------------  ----------  ----------  ------------ 
 

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

 
 Total assets               31 August              31 August   29 February 
                                 2020               2019(1)           2020 
                              GBP'000               GBP'000        GBP'000 
-------------------------  ----------  ---------------------  ------------ 
 Children's Trade               9,312                 13,086        11,016 
 Adult Trade                    7,469                  7,782         6,747 
 Academic & Professional       59,109                 59,210        59,128 
 Special Interest              13,800                 14,479        13,492 
 Unallocated                  151,859                128,287       139,357 
-------------------------  ----------  ---------------------  ------------ 
 Total assets                 241,549                222,844       229,740 
-------------------------  ----------  ---------------------  ------------ 
 

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

(1) The Content Services division has been moved into the Special Interest Division; digital projects moved to the Academic & Professional division.

   4.            Highlighted items 
 
                                        Six months   Six months           Year 
                                             ended        ended          ended 
                                         31 August    31 August    29 February 
                                              2020         2019           2020 
                                           GBP'000      GBP'000        GBP'000 
-------------------------------------  -----------  -----------  ------------- 
 
 Legal and other professional fees              87          350            461 
 Coronavirus onerous costs                       -            -            180 
 Restructuring costs                            31            -             98 
 Other highlighted items                       118          350            739 
 Amortisation of acquired intangible 
  assets                                       883          864          1,736 
-------------------------------------  -----------  -----------  ------------- 
 Total highlighted items                     1,001        1,214          2,475 
-------------------------------------  -----------  -----------  ------------- 
 

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 2020 legal and other professional fees of GBP87,000 were incurred as a result of the Zed Books acquisition (six months ended 31 August 2019: GBP350,000 and year ended 29 February 2020: GBP461,000 has been incurred as a result of the Group's acquisition of rights, primarily that of Oberon Books Limited and the joint venture; Beijing CYP & Gakken Education Development Co., Ltd).

For the six months ended 31 August 2020, restructuring costs of GBP31,000 were incurred as a result of the acquisition of Oberon Books Limited and Zed Books (year ended 29 February 2020 restructuring costs of GBP98,000 relate to the acquisition of Oberon Books Limited and I.B. Tauris & Co. Limited).

For the year ended 29 February 2020, Coronavirus onerous costs of GBP180,000 are irrecoverable costs crystallised in the year associated with book fairs and conferences that were cancelled due to the coronavirus.

   5.         Dividends 
 
                                    Six months   Six months          Year 
                                         ended        ended         ended 
                                     31 August    31 August   29 February 
                                          2020         2019          2020 
                                       GBP'000      GBP'000       GBP'000 
---------------------------------  -----------  -----------  ------------ 
 Amounts paid in the period 
 Prior period final dividend                 -        5,051         5,051 
 Interim dividend                            -            -           958 
---------------------------------  -----------  -----------  ------------ 
 Total dividend payments in the 
  period                                     -        5,051         6,009 
 Amounts arising in respect of 
  the period 
 Interim dividend for the period         1,045          958           958 
 Final dividend for the year                 -            -             - 
---------------------------------  -----------  -----------  ------------ 
 Total dividend for the period           1,045          958           958 
---------------------------------  -----------  -----------  ------------ 
 

The proposed interim dividend of 1.28 pence per ordinary share will be paid to the equity Shareholders on 4 December 2020 to Shareholders registered at close of business on 6 November 2020.

For the year ended 29 February 2020, Bloomsbury made a bonus issue to Shareholders in lieu of, and with a value equivalent to, its proposed final cash dividend of 6.89 pence per ordinary share.

   6.         Earnings per share 

The basic earnings per share for the six months ended 31 August 2020 is calculated using a weighted average number of Ordinary Shares in issue of 80,190,832 (31 August 2019: 77,343,137 and 29 February 2020: 77,345,922) 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   29 February 
                                              2020             2019          2020 
                                                             Number        Number 
                                            Number        restated*     restated* 
 Weighted average shares in 
  issue                                 80,190,832       77,343,137    77,345,922 
 Dilution                                  725,819          640,005     1,026,939 
---------------------------------  ---------------  ---------------  ------------ 
 Diluted weighted average shares 
  in issue                              80,916,651       77,983,142    78,372,861 
---------------------------------  ---------------  ---------------  ------------ 
 
                                           GBP'000          GBP'000       GBP'000 
---------------------------------  ---------------  ---------------  ------------ 
 Profit after tax attributable 
  to owners of the Company                   2,320              968        10,501 
---------------------------------  ---------------  ---------------  ------------ 
 Basic earnings per share                    2.89p            1.25p        13.58p 
 Diluted earnings per share                  2.87p            1.24p        13.40p 
---------------------------------  ---------------  ---------------  ------------ 
 
 Adjusted profit attributable 
  to owners of the Company                   3,339            2,071        12,720 
---------------------------------  ---------------  ---------------  ------------ 
 Adjusted basic earnings per 
  share                                      4.16p            2.68p        16.45p 
 Adjusted diluted earnings 
  per share                                  4.13p            2.66p        16.23p 
---------------------------------  ---------------  ---------------  ------------ 
 

Adjusted profit is derived as follows:

 
 Profit before tax                      3,035   1,301   13,229 
 Amortisation of acquired intangible 
  assets                                  883     864    1,736 
 Other highlighted items                  118     350      739 
-------------------------------------  ------  ------  ------- 
 Adjusted profit before tax             4,036   2,515   15,704 
-------------------------------------  ------  ------  ------- 
 
 
 Tax expense                           715   333   2,728 
 Deferred tax movements on 
  goodwill and acquired intangible 
  assets                              (21)   110     202 
 Tax expense on other highlighted 
  items                                  3     1      54 
 Adjusted tax                          697   444   2,984 
-----------------------------------  -----  ----  ------ 
 
 
 Adjusted profit    3,339   2,071   12,720 
-----------------  ------  ------  ------- 
 

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.

*Restatement of earnings per share due to the bonus issue of shares (note 8).

   7.         Trade and other receivables 
 
                                              31 August    31 August    29 February 
                                                   2020         2019           2020 
   Non-current                                  GBP'000      GBP'000        GBP'000 
------------------------------------------  -----------  -----------  ------------- 
  Prepayments and accrued income                  1,092        1,338          1,237 
------------------------------------------  -----------  -----------  ------------- 
  Non-current trade and other receivables         1,092        1,338          1,237 
------------------------------------------  -----------  -----------  ------------- 
 
  Current 
  Gross trade receivables                        56,292       54,803         54,252 
  Less: loss allowance                          (3,371)      (1,682)        (1,832) 
------------------------------------------  -----------  -----------  ------------- 
  Net trade receivables                          52,921       53,121         52,420 
  Income tax recoverable                          1,108        1,582            481 
  Other receivables                               2,740        1,607          1,510 
  Prepayments and accrued income                  4,067        4,289          5,551 
  Royalty advances                               24,898       25,360         24,843 
------------------------------------------  -----------  -----------  ------------- 
  Current trade and other receivables            85,734       85,959         84,805 
------------------------------------------  -----------  -----------  ------------- 
  Total trade and other receivables              86,826       87,297         86,042 
------------------------------------------  -----------  -----------  ------------- 
 

Trade receivables principally comprise amounts receivable from the sale of books due from distributors. Most trade debtors are secured by credit insurance and in certain territories by third party distributors.

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 2020 GBP6,239,000 (31 August 2019 GBP6,389,000 and 29 February 2020 GBP5,604,000) of royalty advances relate to titles expected to publish after more than 12 months.

   8.         Restatement of earnings per share due to the bonus issue of shares in the period 

On 28 August 2020 a bonus issue in lieu of final dividend of 2,513,674 Ordinary Shares of 1.25 pence each, were provided to Shareholders on the register on the record date of 31 July 2020. This bonus issue was made to Shareholders in lieu of, and with a value equivalent to, the final dividend Bloomsbury would have declared in the absence of coronavirus.

 
                                     Six months   Six months           Year           Year 
                                          ended        ended 
                                      31 August    31 August          ended          ended 
                                           2019         2019    29 February    29 February 
                                     (restated)                        2020           2020 
                                                                 (restated) 
---------------------------------  ------------  -----------  -------------  ------------- 
 
 Basic earnings per share                 1.25p        1.29p         13.58p         14.03p 
 Diluted earnings per share               1.24p        1.28p         13.40p         13.84p 
 Adjusted basic earnings 
  per share                               2.68p        2.77p         16.45p         17.00p 
 Adjusted diluted earnings 
  per share                               2.66p        2.74p         16.23p         16.77p 
 Weighted average number 
  of shares used in basic 
  earnings per share calculation     77,343,137   74,828,480     77,345,922     74,830,714 
 Weighted average number 
  of shares used in diluted 
  earnings per share calculation     77,983,142   75,468,485     78,372,861     75,857,653 
 
   9.         Related parties 

The Group has no related party transactions in the current or prior periods 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 
---------------------  ------------------------------------- 
 Leslie-Ann Reed        Independent Non-Executive Director 
---------------------  ------------------------------------- 
 Steven Hall            Independent Non-Executive Director 
                         Chair of the Remuneration Committee 
---------------------  ------------------------------------- 
 Penny Scott-Bayfield   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                                    Penny Scott-Bayfield 

27 October 2020

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 are as follows:

-- Market: including market volatility due to the impact of the coronavirus pandemic, increased dependence on internet retailing, sales of used books and rental of text books;

   --    Importance of digital publishing: BDR revenues and profit; 
   --    Acquisitions: Risk of delivering lower than expected return on investment; 
   --    Title acquisition: Commercial viability of titles acquired; 

-- Information and technology systems: Cybersecurity and the risk of malware attack, and the risk of inadequate internal access controls or security measures;

   --    Financial valuations: Judgemental valuation of assets and provisions; 
   --    Intellectual property: Erosion of copyright and infringement of IP by third parties; 

-- Reliance on key counterparties: Failure of key counterparties or breakdown in key counterparty relationships;

-- Talent management: Failure to retain key talent and create the conditions in which employees can thrive;

-- Legal and compliance: Breach of key contracts by the Company and failure to comply with applicable regulations; and

   --    Reputation: Investor confidence. 

Further information about the principal risks and mitigation of those risks included in the 2020 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 2020 which comprises the condensed consolidated interim income statement, the condensed consolidated interim statement of comprehensive income, the condensed consolidated interim statement of financial position, the condenses consolidated interim statement of changes in equity, the condensed consolidated 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 2020 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.

As disclosed in note 2, 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.

Sarah Styant

for and on behalf of KPMG LLP

Chartered Accountants

15 Canada Square

London

E14 5GL

27 October 2020

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