TIDMBMY
RNS Number : 0790B
Bloomsbury Publishing PLC
31 May 2023
BLOOMSBURY PUBLISHING PLC
("Bloomsbury" or "the Company")
Audited Preliminary Results for the year ended 28 February
2023
Record sales and profit ahead of recently upgraded
expectations
Final dividend up 10%
Bloomsbury Publishing Plc (LSE: BMY), the leading independent
publisher, today announces audited results for the year ended 28
February 2023.
Commenting on the results, Nigel Newton, Chief Executive, said
:
"We are delighted to have achieved these record results with
sales up 15% to GBP264.1 million and profit up 16% to GBP31.1
million. Compared to two years ago, sales are up 43% and profits up
62%. Our growth outperformed the industry which was up 4%(1) .
These results demonstrate the strength of our strategy to publish
for both the consumer and the academic markets, unusual in our
industry, and to grow digital revenues while expanding
globally.
In challenging economic times, readers are turning to books as
affordable as they cut back on more expensive forms of
diversion.
Our long-term strategy to invest in digital content, which has
delivered strong growth and cash, which enables future strategic
investment in both our academic and consumer markets and potential
acquisitions - the flywheel of Bloomsbury.
Bloomsbury Digital Resources ("BDR") continues to deliver high
margin, quality, repeatable revenues, with sales growth of 41%
driven by organic and acquired assets. This drove the Non-Consumer
division's revenue growth of 19% and a 43% increase in profit
before tax and highlighted items(2) to GBP13.1 million. Resilient
demand for our books saw the Consumer division revenue grow by 12%,
achieving a 2% increase in profit before tax and highlighted
items(2) to GBP18.1 million.
We have signed a further four book contract with Sarah J. Maas
on top of the three books already under contract, as announced in
March. Also, in April, HBO Max announced a new Harry Potter
television series, over a decade, with each season dedicated to one
of the seven books. A Bollywood streaming version of William
Dalrymple's The Anarchy is being planned and The Three-Body
Problem, the bestselling trilogy by Cixin Liu, is in production at
Netflix.
In recognition of our strong performance and in line with our
progressive dividend policy, the Board proposes a 10% increase in
our final dividend to 10.34 pence per share.
Trading for 2023/24 has started in line with the Board's
expectations and the Board is confident in its ability to achieve
continued long-term success. Bloomsbury plans to invest in further
acquisitions and organic growth."
Note
The Board considers current consensus market expectation for the
year ending 29 February 2024 to be revenue of GBP272.1 million and
profit before taxation and highlighted items of GBP32.2
million.
Financial Highlights
2022/23 2021/22 2020/21 Growth Growth
2022/23 2022/23
vs 2021/22 vs 2020/21
Revenue GBP264.1m GBP230.1m GBP185.1m 15% 43%
--------- --------- --------- ----------- -----------
Organic revenue(3) GBP231.6m GBP212.7m GBP185.1m 9% 25%
--------- --------- --------- ----------- -----------
Profit before taxation
and highlighted items(2) GBP31.1m GBP26.7m GBP19.2m 16% 62%
--------- --------- --------- ----------- -----------
Profit before taxation GBP25.4m GBP22.2m GBP17.3m 15% 46%
--------- --------- --------- ----------- -----------
Adjusted diluted earnings
per share 30.56p 25.94p 18.68p 18% 64%
--------- --------- --------- ----------- -----------
Diluted earnings per
share 24.54p 20.33p 16.71p 21% 47%
--------- --------- --------- ----------- -----------
Net cash GBP51.5m GBP41.2m GBP54.5m 25% (5)%
--------- --------- --------- ----------- -----------
Final dividend per share 10.34p 9.40p 7.58p 10% 36%
--------- --------- --------- ----------- -----------
Operational Highlights
Non-Consumer Division
-- Non-Consumer revenue growth of 19% to GBP97.4 million
(2021/22: GBP81.9 million). Organic revenue growth was 3%
-- Non-Consumer profit before taxation and highlighted items(2)
increased by 43% to GBP13.1 million (2021/22: GBP9.1 million)
-- Academic & Professional revenue growth of 28% to GBP75.7
million (2021/22: GBP59.3 million) and profit before taxation and
highlighted items(2) up 37% to GBP12.4 million (2021/22: GBP9.1
million), with prior year acquisitions contributing GBP21.5 million
revenue (2021/22: GBP8.4 million)
-- Bloomsbury Digital Resources ("BDR") revenue growth of 41% to
GBP26.2 million (2021/22: GBP18.6 million) driven by strong demand
for existing BDR products and growth from the acquisition of
ABC-CLIO. Organic revenue growth was 18%
-- New BDR target is to achieve further 40% organic revenue
growth over the five years to 2027/28, to reach turnover of
approximately GBP37 million
Consumer Division
-- Consumer revenue growth of 12% to GBP166.7 million (2021/22:
GBP148.2 million). Organic revenue growth was 12%, with the prior
year acquisition contributing GBP11.0 million revenue (2021/22:
GBP9.0 million) to Adult Trade
-- Consumer profit before taxation and highlighted items(2) up
2% to GBP18.1 million (2020/21: GBP17.8 million)
-- Adult Trade revenue up 5% to GBP57.8 million (2021/22:
GBP55.2 million) and profit before taxation and highlighted
items(2) of GBP1.0 million (2021/22: GBP2.0 million)
-- Children's Trade revenue growth of 17% to GBP108.9 million
(2021/22: GBP93.0 million) and profit before taxation and
highlighted items(2) up 9% to GBP17.2 million (2021/22: GBP15.8
million)
-- Sales growth of Sarah J. Maas' titles of 51%; Harry Potter
sales were strong 26 years after it was first published
Notes
(1) Publishers Association: 2022 UK market up 4%
year-on-year.
(2) Highlighted items comprise amortisation of acquired
intangible assets and legal and other professional costs relating
to ongoing and completed acquisitions and restructuring costs.
(3) Organic revenue for the year is defined as total revenue
less revenue attributable to the acquisitions of Head of Zeus
("HoZ"), Red Globe Press ("RGP") and ABC-CLIO LLC ("ABC-CLIO"),
completed during 2021/22.
For further information, please contact:
Bloomsbury Publishing Plc
Nigel Newton, Chief Executive nigel.newton@bloomsbury.com
Penny Scott-Bayfield, Group Finance penny.scott-bayfield@bloomsbury.com
Director
Hudson Sandler +44 (0) 20 7796 4133
Dan de Belder / Amelia Craddock / bloomsbury@hudsonsandler.com
Emily Brooker
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 achieved its best ever performance in the year ended
28 February 2023, with revenue growth of 15% to GBP264.1 million
(2021/22: GBP230.1 million) and a 16% increase in profit before
taxation and highlighted items to GBP31.1 million (2021/22: GBP26.7
million). Profit before taxation increased by 15% to GBP25.4
million (2021/22: GBP22.2 million).
Growth in organic revenue was 9%, with the three strategic
acquisitions completed during 2021/22, ABC-CLIO, RGP and HoZ,
contributing revenue of GBP32.5 million (2021/22: GBP17.4
million).
The strength of demand for Bloomsbury titles and the excellent
sales of our digital products, reflects our long-term growth
strategy, the publishing judgement of our editors and the quality
of our sales and marketing teams and infrastructure.
Our strategy of diversification, across channels and markets,
continues successfully. Our international revenues have increased
to 73% of total revenue - our highest ever. Our digital strategy
ensures increasing publishing through digital channels, and we
continue to expand our academic as well as consumer markets, most
recently to the lucrative US schools market.
We continue to deliver success with the Bloomsbury Digital
Resources ("BDR") growth strategy of building high margin, high
quality, repeatable revenues from our market leading Academic and
Professional IP. BDR achieved 41% year-on-year revenue growth, and
an 18% increase in organic revenue. This highly scalable business
has grown its sales from GBP4.7 million in 2017/18 to GBP26.2
million this year, through organic growth and strategic
acquisitions. Our academic customer renewal rate remained above
90%.
Our strategy enables us to continue to deliver growth from the
ongoing shift to digital learning, accelerating the breadth and
depth of our excellent digital products and the quality of our
platforms and infrastructure. In addition, we accelerated our
growth by leveraging last year's ac quisitions of ABC-CLIO and RGP,
through global sales as well as cross-selling existing digital
products to ABC-CLIO's US schools market. Given the momentum behind
the BDR strategy, Bloomsbury is setting a new growth target of
further 40% organic revenue growth over the five years to 2027/28,
to reach approximately GBP37 million turnover. Further acquisitions
would augment this growth. This new, ambitious, target reflects the
opportunities, synergies and integration of our acquisitions,
particularly ABC-CLIO.
Bloomsbury won the 2022 Master Investor Company of the Year
award.
The highlighted items of GBP5.7 million (2021/22: GBP4.6
million) consist of the amortisation of acquired intangible assets
of GBP5.2 million (2021/22: GBP2.8 million), one-off legal and
other professional fees relating to acquisitions and restructuring
costs of GBP0.5 million (2021/22: GBP1.8 million). The effective
rate of tax for the year was 20% (2021/22: 24%). The adjusted
effective rate of tax, excluding highlighted items, was 19%
(2021/22: 19%). Diluted earnings per share, excluding highlighted
items, grew 18% to 30.56 pence (2021/22: 25.94 pence). Including
highlighted items, profit before tax was GBP25.4 million (2021/22:
GBP22.2 million) and diluted earnings per share grew 21% to 24.54
pence (2021/22: 20.33 pence).
We have increased our international revenues, in particular from
the US, during the year. In 2022/23, changes in exchange rates,
mainly the relative strength of the US dollar, increased revenues
by GBP12.2 million and profit before taxation and highlighted items
by GBP2.2 million.
Strategy
Bloomsbury's long-term growth strategy is aimed at continuing
our success in investing in high-value intellectual property and
building digital channels, increasing quality revenues and
earnings. To achieve this, we are focused the following long-term
strategic objectives:
-- Non-Consumer
o Goal: Grow Bloomsbury's portfolio in Non-Consumer publishing.
Non-Consumer publishing is characterised by higher, more
predictable margins, is less reliant on retailers and presents
greater digital and global opportunities.
Achieved 2022/23: delivered 19% growth in Non-Consumer
revenue.
o Goal: New BDR target is to achieve further 40% organic revenue
growth over the five years to 2027/28, to reach approximately GBP37
million turnover.
Achieved 2022/23: Achieved 41% revenue growth, of which 18% was
organic.
-- Consumer
o Goal: Discover, nurture, champion and retain high-quality
authors and illustrators, while looking at new ways to leverage
existing title rights.
Achieved 2022/23: Delivered 12% growth in Consumer revenue.
Bestsellers included A Day of Fallen Night by Samantha Shannon,
Stolen Focus by Johann Hari, Bake by Paul Hollywood, Tom Kerridge's
Real Life Recipes and Trespasses by Louise Kennedy.
o Goal: Grow our key authors through effective publishing across
all formats alongside strategic sales and marketing.
Achieved 2022/23: 51% growth in sales of Sarah J. Maas title
sales and seven new titles contracted.
o Goal: As the originating publisher of J.K. Rowling's Harry
Potter series, ensure that new children discover and read it for
pleasure every year.
Achieved 2022/23: Harry Potter title sales remain strong, 26
years after first publication. Harry Potter and the Philosopher's
Stone was the 3(rd) bestselling children's book of the year on UK
Nielsen Bookscan.
-- International Expansion
o Goal: Expand international revenues. Continue our
international growth and take advantage of the biggest academic
market in the US.
Achieved 2022/23: Increased overseas revenues to 73% of Group
revenue. US revenues increased to 48% of Group revenue.
-- Employee Experience and Engagement; Diversity, Equity and Inclusion
Our success is driven by the expertise, passion and commitment
of our employees, highlighting the importance of attracting,
supporting and engaging our colleagues. We value diversity of
thought, perspectives and experience in shaping our culture and
strategy, driving our long-term success and informing the ways in
which we fulfil our social purpose.
o Goal: Be an attractive employer for individuals seeking a
career in publishing, regardless of background or identity, adding
cultural value to our business operations and performance.
o Goal: Focus on initiatives to create an environment that
promotes diversity, nurtures talent, stimulates creativity and
collaboration, supports well-being and is inclusive and respectful
of difference.
o Goal: Implement Bloomsbury's Diversity, Equity and Inclusion
Action Plan ("DEIAP").
Achieved 2022/23:
o All employees received a one-off GBP1,250 payment in February
2023, in addition to a permanent salary increase of GBP1,000 per
annum from 1 October 2022, to help with the cost of living.
o Shortlisted for the IPG Diversity and Inclusivity Award and
the LBF Inclusivity in Publishing Award for the second year
running.
o Shortlisted for the Small Cap Diversity, Inclusion &
Engagement award.
o Our DEIAP set targets for Black and minority ethnic groups to
represent 20% of new UK recruits and 35% of new US recruits by
2024. In 2022/23, Black and minority ethnic groups represented 31%
of UK applications and 20% of UK offers made. 15% of UK employees
are from ethnic minority groups (2021/22: 13%). In the US, Black
and minority ethnic groups represented 40% of applications and 59%
of offers made. 26% of our US employees are from ethnic minority
groups (2021/22: 20%).
o Official partner of The Runnymede Trust's Lit in Colour
initiative, supporting student access to books by writers of colour
and from minority ethnic backgrounds, drawing on our world-leading
drama list from Methuen Drama.
o Ran a series of 'In Conversation' author interviews for over
700 schools, with live interviews with our authors Tanika Gupta,
Benjamin Zephaniah and Khaled Hosseini.
o Founding signatory of the Publishers Association's Inclusivity
Action Plan, to promote equality, diversity and inclusion within
the industry's workforce.
-- Sustainability
o Goal: Maximise our use of sustainable resources while seeking
to reduce carbon emissions in line with our science-based targets.
We recognise our responsibility to conserve the Earth's resources
and we are committed to monitoring and improving the environmental
impact of our operations.
Achieved 2022/23:
o Awarded the IPG Sustainability Award and winner of the
inaugural London Book Fair Sustainability Initiative Award .
o Reduction of 80% in Scope 1 and 2 emissions from base year of
2019/20.
o Removed plastic shrink wrap from all Harry Potter paperback
boxsets, piloted removing dust jackets and plastic finishes and
introduced changes to backlist printing to reduce carbon
emissions.
o Completed the CDP Climate Change questionnaire, receiving the
second highest score of B, demonstrating our coordinated response
to climate change.
o Completed our quantitative analysis of select climate-related
risks and progressed our Task Force on Climate-Related Financial
Disclosures ("TCFD") reporting.
Non-Consumer Division
The Non-Consumer division consists of Academic &
Professional, including BDR, and Special Interest. Revenues in the
division grew by 19% to GBP97.4 million (2021/22: GBP81.9 million).
Profit before taxation and highlighted items for the Non-Consumer
division increased by 43% to GBP13.1 million (2021/22: GBP9.1
million). Profit before taxation increased by 25% to GBP8.2 million
(2021/22: GBP6.6 million). Organic revenue growth was 3% with
ABC-CLIO and RGP, acquired in December 2021 and June 2021
respectively, contributing GBP21.5 million revenue (2021/22: GBP8.4
million).
Academic & Professional
Academic & Professional revenues increased by 28% to GBP75.7
million (2021/22: GBP59.3 million) and profit before taxation and
highlighted items increased by 37% to GBP12.4 million (2021/22:
GBP9.1 million). Profit before taxation increased by 15% to GBP7.8
million (2021/22: GBP6.7 million). This was driven by the strength
of our BDR strategy, with a 41% increase in revenue from both
excellent organic growth in our existing digital products and
leveraging recent acquisitions. BDR organic growth was 18%.
Our BDR growth strategy is to build high margin, high quality,
repeatable digital revenue from our market leading Academic and
Professional IP. The acquisition of ABC-CLIO increased the depth
and breadth of our portfolio of digital products. Through this, we
accelerated growth through global sales as well as cross-selling
existing digital products to both schools and academic
institutions. We increased the number of academic institution
customers by 20% and maintained our existing customer retention
rate at over 90%. We continue to see significant opportunities for
further growth in both the global academic institution and US
school markets.
The Academic & Professional profit margin increased to 16%
(2021/22: 15%), predominantly driven by BDR growth and improved
sales mix. Our BDR success delivers high margin incremental
revenue, with gross margin of over 70%, created from our IP which
is also sold through print and ebooks.
Special Interest
Special Interest revenue was GBP21.7 million (2021/22: GBP22.6
million), and profit before taxation and highlighted items
increased to GBP0.6 million (2021/22: break even). Bestsellers
during the year included Wisden Cricketers Almanack, Reeds Nautical
Almanac, Putin's Wars by Mark Galeotti and Osprey Games' Undaunted:
Stalingrad and Stargrave.
Consumer Division
The Consumer division consists of Adult and Children's trade
publishing. The Consumer division generated revenue growth of 12%
to GBP166.7 million (2021/22: GBP148.2 million). Organic revenue
growth was 12%. Profit before taxation and highlighted items
increased by 2% to GBP18.1 million (2021/22: GBP17.8 million).
Profit before taxation increased by 2% to GBP17.8 million (2021/22:
GBP17.5 million). The strong performance was driven by the
Children's divisions, across front and backlist titles, and
includes GBP11.0 million revenue (2021/22: GBP9.0 million) from
HoZ, completed in June 2021.
Bloomsbury's Consumer growth outperformed the rest of the UK
market, in both print and digital formats; the Publishers
Association reported Consumer growth of 2% for 2022.
Adult Trade
The Adult division achieved a 5% increase in revenue to GBP57.8
million (2021/22: GBP55.2 million) and profit before taxation and
highlighted items of GBP1.0 million (2021/22: GBP2.0 million).
Profit before taxation was GBP0.6 million (2021/22: GBP1.7
million). Revenue growth was driven by the strength of the backlist
and includes GBP11.0 million (2021/22: GBP9.0 million) revenue from
HoZ, completed in June 2021.
Sunday Times bestsellers in the year included Stolen Focus by
Johann Hari, Bake by Paul Hollywood, Tom Kerridge's Outdoor Cooking
and Real Life Recipes, Trespasses by Louise Kennedy, Illuminations
by Alan Moore and A Visible Man by Edward Enninful. New York Times
bestsellers in the year included Bake by Paul Hollywood and
Dirtbag, Massachusetts by Isaac Fitzgerald.
Recognition for our authors continued with Louise Kennedy's
Trespasses shortlisted for the Women's Prize 2023 and winning the
British Book Awards 2023 Book of the Year - Debut Fiction, both
Olivia Sadjic and Saba Sams being named as Granta's best young
novelists, Tom Benn winning The Sunday Times Charlotte Aitken Young
Writer of the Year for Oxblood, and Isaac Blood winning the
National Book Critics Circle 2022 Award for Nonfiction for The
Method.
Children's Trade
Children's revenue increased by 17% to GBP108.9 million
(2021/22: GBP93.0 million). Profit before taxation and highlighted
items increased by 9% to GBP17.2 million (2021/22: GBP15.8
million). Profit before taxation was GBP17.2 million (2021/22:
GBP15.8 million). High demand for our strong titles continued the
momentum from last year, with excellent sales of Sarah J. Maas'
titles.
Sales of the Harry Potter titles were strong. Harry Potter and
the Philosopher's Stone was the 3(rd) bestselling children's book
of the year on UK Nielsen Bookscan, 26 years after it first began,
showing the enduring appeal of this classic series.
Sarah J. Maas' sales grew by 51%, reflecting her latest
bestselling frontlist title, Crescent City: House of Sky and
Breath, published in February 2022, and strong backlist sales.
House of Sky and Breath, House of Earth and Blood, A Court of
Silver Flames and the Throne of Glass series were all New York
Times bestsellers during the year. All 15 of Sarah J. Maas' titles
have been published by Bloomsbury since her first novel, Throne of
Glass, in 2012.
Revenues for the rest of the Children's division were also good.
Other highlights in the Children's list included October, October,
which won the Yoto Carnegie medal, Sunday Times bestsellers We're
Going on a Sleigh Ride, We're Going on an Egg Hunt and Five Little
Easter Bunnies, New York Times bestsellers This Wicked Fate by
Kalynn Bayron, Ways to Make Sunshine by Renee Watson and Forging
Silver into Stars and Defy the Dawn by Brigid Kemmerer.
Three Bloomsbury children's books were included in the BBC's
global poll of the best 100 books of all time: two of the Harry
Potter series and Neil Gaiman's The Graveyard Book.
Cash and Financing
Bloomsbury's cash generation was strong with cash at the year
end of GBP51.5 million (2022: GBP41.2 million) and cash conversion
of 107% (2021/22: 194%).
The Group has an unsecured revolving credit facility with Lloyds
Bank Plc. The facility comprises a committed revolving loan
facility of GBP10.0 million and an uncommitted incremental term
loan facility of up to GBP6.0 million. At 28 February 2023, the
Group had no draw down (2022: GBPnil) of this facility.
Acquisitions
Bloomsbury has a successful track record in strategic
acquisitions, with 19 completed since 2008. We are actively
targeting and assessing further acquisition opportunities in line
with our long-term growth strategy, particularly in Academic and
Professional.
Dividend
The Group has a progressive dividend policy aiming to keep
dividend earnings cover in excess of two times, supported by strong
cash cover. The Board is recommending a final dividend of 10.34
pence per share, totalling GBP8.4 million. Together with the
interim dividend, this makes a total dividend for the year ended 28
February 2023 of 11.75 pence per share, a 9% increase on the 10.74
pence value of the dividend for the year ended 28 February
2022.
Subject to Shareholder approval at our AGM on 18 July 2023, the
final dividend will be paid on 25 August 2023 to Shareholders on
the register on the record date of 28 July 2023.
Including the proposed 2022/23 final dividend, over the past ten
years, the dividend has increased at a compound annual growth rate
of 8%.
Future Publishing
In Non-Consumer, we are focused on our BDR growth by continuing
the global sales and marketing of ABC-CLIO's 34 databases. We have
successfully expanded the customer base for these in the global
academic market, as well as extending our reach in the US school
market, and we will increase our cross selling of existing school
and university level digital resources. We will expand Bloomsbury
Collections to include ABC-CLIO titles, as well as investing in new
ABC-CLIO high school products and expanding BDR products with
ABC-CLIO content.
Our strong Consumer publishing list for 2023/24 includes the
next new Sarah J. Maas novel, House of Flame and Shadow, the third
in the Crescent City series, which will be published in January
2024. The Harry Potter Wizarding Almanac, the official magical
companion to J.K. Rowling's Harry Potter books, will be published
in October 2023. We are also publishing The Earth Transformed by
Peter Frankopan, Pub Kitchen by Tom Kerridge, Impossible Creatures
by Katherine Rundell, Tom Lake by Ann Patchett, and the next titles
in our bestselling children's series, We're Going on a Ghost Hunt
and We're Going to a Birthday Party, by Martha Mumford and Cherie
Zamazing.
As previously announced, we have signed a further four book
contract with Sarah J. Maas, on top of the three books already
under contract.
Moreover, on 12 April 2023, HBO Max's streaming service
announced an original Harry Potter scripted television series with
Warner Bros. Discovery and J.K. Rowling as Executive Producer. The
series will be a faithful and authentic adaptation of the books and
will be available globally. The stories from J.K. Rowling's books
will become a decade-long series with each season dedicated to one
of the seven books, full of the much-loved characters that fans
have adored for over 25 years. A new cast will lead a new
generation of fandom, and the series will stand alongside the
original classic and beloved films. As with other high-profile
Harry Potter productions, we believe that the series will stimulate
further interest in Harry Potter titles.
Outlook
Our digital strategy continues apace and despite the economic
uncertainty, readers continue to turn to books. Bloomsbury is on
solid foundations, with significant financial resources available
to augment organic growth and invest in future acquisitions. We
have continued to expand globally, with almost 75% of our revenues
now generated internationally. Diversification in channels and
markets continues to serve us well. It is all these factors
combined - our customers, our consistent performance, and the scale
and resilience of our business - that underpin the confidence we
have in the future.
Trading for 2023/24 has started in line with the Board's
expectations.
Audited Consolidated Income Statement
FOR THE YEARED 28 FEBRUARY 2023
Year ended Year ended
28 February 28 February
2023 2022
Notes GBP'000 GBP'000
---------------------------------------- ------ ------------ ------------
Revenue 2 264,102 230,110
Cost of sales (119,191) (107,948)
---------------------------------------- ------ ------------ ------------
Gross profit 144,911 122,162
Marketing and distribution costs (32,529) (29,808)
Administrative expenses (86,551) (69,675)
Share of result of joint venture (228) (117)
---------------------------------------- ------ ------------ ------------
Operating profit before highlighted
items 31,286 27,112
Highlighted items 3 (5,683) (4,550)
---------------------------------------- ------ ------------ ------------
Operating profit 25,603 22,562
Finance income 270 105
Finance costs (458) (486)
---------------------------------------- ------ ------------ ------------
Profit before taxation and highlighted
items 31,098 26,731
Highlighted items 3 (5,683) (4,550)
---------------------------------------- ------ ------------ ------------
Profit before taxation 25,415 22,181
Taxation 4 (5,171) (5,291)
---------------------------------------- ------ ------------ ------------
Profit for the year attributable
to owners of the Company 20,244 16,890
---------------------------------------- ------ ------------ ------------
Earnings per share attributable
to owners of the Company
Basic earnings per share 6 24.94p 20.72p
Diluted earnings per share 6 24.54p 20.33p
---------------------------------------- ------ ------------ ------------
Audited Consolidated Statement of Comprehensive Income
FOR THE YEARED 28 FEBRUARY 2023
Year ended Year ended
28 February 28 February
2023 2022
GBP'000 GBP'000
----------------------------------------------- ------------ ------------
Profit for the year 20,244 16,890
Other comprehensive income
Items that may be reclassified to the income
statement:
Exchange differences on translating foreign
operations 7,464 1,497
Items that may not be reclassified to the
income statement:
Remeasurements on the defined benefit pension
scheme - (10)
----------------------------------------------- ------------ ------------
Other comprehensive income for the year net
of tax 7,464 1,487
Total comprehensive income for the year
attributable to the owners of the Company 27,708 18,377
----------------------------------------------- ------------ ------------
Items in the statement above are disclosed net of tax.
Audited Consolidated Statement of Financial Position
AS AT 28 FEBRUARY 2023
28 February 28 February
2023 2022
Notes GBP'000 GBP'000
------------------------------------- ------ ------------ ------------
Assets
Goodwill 48,656 47,910
Other intangible assets 38,243 40,323
Investments - 45
Property, plant and equipment 2,503 2,319
Right-of-use assets 9,126 10,628
Deferred tax assets 7,928 7,168
Trade and other receivables 7 934 923
------------------------------------- ------ ------------ ------------
Total non-current assets 107,390 109,316
------------------------------------- ------ ------------ ------------
Inventories 43,364 33,816
Trade and other receivables 7 112,819 104,879
Cash and cash equivalents 51,540 41,226
------------------------------------- ------ ------------ ------------
Total current assets 207,723 179,921
------------------------------------- ------ ------------ ------------
Total assets 315,113 289,237
------------------------------------- ------ ------------ ------------
Liabilities
Deferred tax liabilities 3,115 3,696
Lease liabilities 8,570 9,961
Provisions 334 297
------------------------------------- ------ ------------ ------------
Total non-current liabilities 12,019 13,954
------------------------------------- ------ ------------ ------------
Trade and other liabilities 111,620 103,028
Lease liabilities 2,082 2,265
Current tax liabilities 790 433
Provisions 764 588
Total current liabilities 115,256 106,314
------------------------------------- ------ ------------ ------------
Total liabilities 127,275 120,268
------------------------------------- ------ ------------ ------------
Net assets 187,838 168,969
------------------------------------- ------ ------------ ------------
Equity
Share capital 1,020 1,020
Share premium 47,319 47,319
Translation reserve 15,591 8,127
Other reserves 10,870 8,765
Retained earnings 113,038 103,738
------------------------------------- ------ ------------ ------------
Total equity attributable to owners
of the Company 187,838 168,969
------------------------------------- ------ ------------ ------------
Audited Consolidated Statement of Changes in Equity
AS AT 28 FEBRUARY 2023
Capital Share-based Own shares
Share Share Translation Merger redemption payment held by Retained Total
capital premium reserve reserve reserve reserve EBT earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- -------- -------- ----------- --------- ----------- ----------- ---------- --------- --------
At 28 February
2021 1,020 47,319 6,630 1,803 22 7,945 (147) 103,657 168,249
--------------- -------- -------- ----------- --------- ----------- ----------- ---------- --------- --------
Profit for the
year - - - - - - - 16,890 16,890
Other
comprehensive
income
Exchange
differences
on translating
foreign
operations - - 1,497 - - - - - 1,497
Remeasurements
on
the defined
benefit
pension scheme - - - - - - - (10) (10)
--------------- -------- -------- ----------- --------- ----------- ----------- ---------- --------- --------
Total
comprehensive
income for the
year - - 1,497 - - - - 16,880 18,377
Transactions
with
owners
Dividends to
equity
holders of the
Company
Purchase of
shares
by the - - - - - - - (15,157) (15,157)
Employee
Benefit Trust - - - - - - (4,489) - (4,489)
Share options
exercised - - - - - - 2,084 (2,050) 34
Deferred tax on
share-based
payment
transactions - - - - - - - 408 408
Share-based
payment
transactions - - - - - 1,547 - - 1,547
Total
transactions
with owners of
the
Company - - - - - 1,547 (2,405) (16,799) (17,657)
--------------- -------- -------- ----------- --------- ----------- ----------- ---------- --------- --------
At 28 February
2022 1,020 47,319 8,127 1,803 22 9,492 (2,552) 103,738 168,969
--------------- -------- -------- ----------- --------- ----------- ----------- ---------- --------- --------
Profit for the
year - - - - - - - 20,244 20,244
Other
comprehensive
income
Exchange
differences
on translating
foreign
operations - - 7,464 - - - - - 7,464
Remeasurements - - - - - - - - -
on
the defined
benefit
pension scheme
--------------- -------- -------- ----------- --------- ----------- ----------- ---------- --------- --------
Total
comprehensive
income for the
year - - 7,464 - - - - 20,244 27,708
Transactions
with
owners
Dividends to
equity
holders of the
Company
Purchase of
shares
by the - - - - - - - (8,752) (8,752)
Employee
Benefit Trust - - - - - - (1,669) - (1,669)
Share options
exercised - - - - - - 2,539 (2,273) 266
Deferred tax on
share-based
payment
transactions - - - - - - - 81 81
Share-based
payment
transactions - - - - - 1,235 - - 1,235
--------------- -------- -------- ----------- --------- ----------- ----------- ---------- --------- --------
Total
transactions
with owners of
the
Company - - - - - 1,235 870 (10,944) (8,839)
--------------- -------- -------- ----------- --------- ----------- ----------- ---------- --------- --------
At 28 February
2023 1,020 47,319 15,591 1,803 22 10,727 (1,682) 113,038 187,838
--------------- -------- -------- ----------- --------- ----------- ----------- ---------- --------- --------
Audited Consolidated Statement of Cash Flows
FOR THE YEARED 28 FEBRUARY 2023
Year ended Year ended
28 February 28 February
2023 2022
GBP'000 GBP'000
------------------------------------------------------ ------------ ------------
Cash flows from operating activities
Profit for the year 20,244 16,890
Adjustments for:
Depreciation of property, plant and equipment 659 512
Depreciation of right-of-use assets 2,114 1,889
Amortisation of intangible assets 9,687 7,505
Loss on disposal of property, plant and equipment 13 -
Loss on disposal on intangible assets 107 65
Finance income (270) (105)
Finance costs 458 486
Share of loss of joint venture 228 117
Share-based payment charges 1,601 2,054
Tax expense 5,171 5,291
------------------------------------------------------ ------------ ------------
40,012 34,704
(Increase) in inventories (7,557) (2,745)
(Increase)/decrease in trade and other receivables (3,226) 1,205
Increase in trade and other liabilities 4,033 14,572
------------------------------------------------------ ------------ ------------
Cash generated from operating activities 33,262 47,736
Income taxes paid (6,640) (7,927)
------------------------------------------------------ ------------ ------------
Net cash generated from operating activities 26,622 39,809
------------------------------------------------------ ------------ ------------
Cash flows from investing activities
Purchase of property, plant and equipment (818) (644)
Purchase of intangible assets (5,165) (3,693)
Purchase of business, net of cash acquired (72) (22,913)
Purchase of rights to assets (633) (3,650)
Purchase of share in a joint venture (183) -
Interest received
------------------------------------------------------
253 92
------------------------------------------------------ ------------ ------------
Net cash used in investing activities (6,618) (30,808)
------------------------------------------------------ ------------ ------------
Cash flows from financing activities
Equity dividends paid (8,752) (15,157)
Purchase of shares by the Employee Benefit Trust (1,669) (4,489)
Proceeds from exercise of share options 266 34
Repayment of borrowing - (1,097)
Repayment of lease liabilities (2,226) (1,862)
Lease liabilities interest paid (390) (419)
Other interest paid - (55)
------------------------------------------------------ ------------ ------------
Net cash used in financing activities (12,771) (23,045)
------------------------------------------------------ ------------ ------------
Net increase/ (decrease) in cash and cash equivalents 7,233 (14,044)
Cash and cash equivalents at beginning of year 41,226 54,466
Exchange gain on cash and cash equivalents 3,081 804
------------------------------------------------------ ------------ ------------
Cash and cash equivalents at end of year 51,540 41,226
------------------------------------------------------ ------------ ------------
NOTES
1. Accounting policies
a) Basis of Preparation
The financial information set out above does not constitute the
company's statutory accounts for the years ended 28 February 2023
or 28 February 2022 but is derived from those accounts. Statutory
accounts for 2022 have been delivered to the registrar of
companies, and those for 2023 will be delivered in due course. The
auditor has reported on those accounts; their reports were (i)
unqualified, (ii) did not include a reference to any matters to
which the auditor drew attention by way of emphasis without
qualifying their report and (iii) did not contain a statement under
section 498 (2) or (3) of the Companies Act 2006.
The Group financial statements were prepared in accordance with
UK-adopted international accounting standards ("UK-adopted IFRS")
and the requirements of the Companies Act 2006. Except as described
below, the accounting policies applied in the year ended 28
February 2023 are consistent with those applied in the financial
statements for year ended 28 February 2022 with the exception of a
number of new accounting standards and amendments which have not
had a material impact on the Group's results.
b) Going concern
The Directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence at least 12
months from the date of this preliminary announcement, being the
period of the detailed going concern assessment reviewed by the
Board, and therefore continue to adopt the going concern basis of
accounting in preparing the condensed consolidated financial
statements.
The Board has modelled a severe but plausible downside scenario.
This assumes:
-- Print revenues are reduced by 20% during 2023/2024, with recovery during 2024/2025;
-- Digital revenues are reduced by 20% during 2023/2024, with recovery during 2024/2025;
-- Print costs are increased by 3% from 2023/2024 and staff
costs are increased by 3% from 2023/2024;
-- Downside assumptions about extended debtor days during
2023/2024, with recovery during 2024/2025;
-- Cash preservation measures implemented and variable costs reduced.
At 28 February 2023, the Group had available liquidity of
GBP61.5m, comprising central cash balances and its undrawn GBP10.0m
Revolving Credit Facility (RCF). The RCF agreement is to October
2024. Under the severe but plausible downside scenario, the Group
would maintain sufficient liquidity headroom even before modelling
the mitigating effect of actions that management would take in the
event that these downside risks were to crystallise.
The Group has an unsecured revolving credit facility with Lloyds
Bank Plc. At 28 February 2023, the Group had GBPnil draw down
(2022: GBPnil) of this facility with GBP10.0 million of undrawn
borrowing facilities (2022: GBP10.0 million) available.
The facility comprises a committed revolving credit facility of
GBP10 million, and an uncommitted incremental term loan facility of
up to GBP6 million. The facilities are subject to two covenants,
being a maximum net debt to EBITDA ratio of 2.5x and a minimum
interest cover covenant of 4x.
2. Revenue and 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 split into two
operating segments: Children's Trade and Adult Trade, and
Non-Consumer is split into 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
Year ended 28 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
February 2023 GBP'000 GBP'000 GBP'000
---------------- ----------- --------- --------- ------------- --------- ------------- ------------ ----------
External
revenue 108,897 57,796 166,693 75,749 21,660 97,409 - 264,102
Cost of sales (56,205) (30,473) (86,678) (22,578) (9,935) (32,513) - (119,191)
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
Gross profit 52,692 27,323 80,015 53,171 11,725 64,896 - 144,911
Marketing and
distribution
costs (14,882) (9,455) (24,337) (5,364) (2,828) (8,192) - (32,529)
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
Contribution
before
administrative
expenses 37,810 17,868 55,678 47,807 8,897 56,704 - 112,382
Administrative
expenses
excluding
highlighted
items (20,497) (16,835) (37,332) (35,296) (8,240) (43,536) - (80,868)
Share of result
of joint
venture - - - - - - (228) (228)
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
Operating
profit/(loss)
before
highlighted
items/segment
results 17,313 1,033 18,346 12,511 657 13,168 (228) 31,286
Amortisation of
acquired
intangible
assets - (352) (352) (4,660) (214) (4,874) - (5,226)
Other
highlighted
items - - - - - - (457) (457)
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
Operating
profit/(loss) 17,313 681 17,994 7,851 443 8,294 (685) 25,603
Finance income - - - 50 - 50 220 270
Finance costs (144) (81) (225) (125) (40) (165) (68) (458)
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
Profit/(loss)
before
taxation
and
highlighted
items 17,169 952 18,121 12,436 617 13,053 (76) 31,098
Amortisation of
acquired
intangible
assets - (352) (352) (4,660) (214) (4,874) - (5,226)
Other
highlighted
items - - - - - - (457) (457)
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
Profit/(loss)
before
taxation 17,169 600 17,769 7,776 403 8,179 (533) 25,415
Taxation - - - - - - (5,171) (5,171)
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
Profit/(loss)
for the year 17,169 600 17,769 7,776 403 8,179 (5,704) 20,244
---------------- ----------- --------- --------- ------------- --------- ------------- ------------ ----------
Operating
profit/(loss)
before
highlighted
items/segment
results 17,313 1,033 18,346 12,511 657 13,168 (228) 31,286
Depreciation 930 659 1,589 950 234 1,184 - 2,773
Amortisation of
internally
generated
intangibles 487 629 1,116 3,023 322 3,345 - 4,461
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
EBITDA before
highlighted
items 18,730 2,321 21,051 16,484 1,213 17,697 (228) 38,520
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
Children's Adult Consumer Academic Special Non-Consumer Unallocated Total
Trade Trade & Interest
Professional
Year ended 28 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
February 2022 GBP'000 GBP'000 GBP'000
---------------- ----------- --------- --------- ------------- --------- ------------- ------------ ----------
External
revenue 93,039 55,157 148,196 59,328 22,586 81,914 - 230,110
Cost of sales (46,759) (29,106) (75,865) (20,945) (11,138) (32,083) - (107,948)
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
Gross profit 46,280 26,051 72,331 38,383 11,448 49,831 - 122,162
Marketing and
distribution
costs (12,812) (8,271) (21,083) (5,335) (3,390) (8,725) - (29,808)
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
Contribution
before
administrative
expenses 33,468 17,780 51,248 33,048 8,058 41,106 - 92,354
Administrative
expenses
excluding
highlighted
items (17,506) (15,732) (33,238) (23,907) (7,980) (31,887) - (65,125)
Share of result
of joint
venture - - - - - - (117) (117)
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
Operating
profit/(loss)
before
highlighted
items/ segment
results 15,962 2,048 18,010 9,141 78 9,219 (117) 27,112
Amortisation of
acquired
intangible
assets - (272) (272) (2,349) (214) (2,563) - (2,835)
Other
highlighted
items - - - - - - (1,715) (1,715)
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
Operating
profit/(loss) 15,962 1,776 17,738 6,792 (136) 6,656 (1,832) 22,562
Finance income - - - 62 - 62 43 105
Finance costs (162) (94) (256) (115) (48) (163) (67) (486)
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
Profit/(loss)
before
taxation
and
highlighted
items 15,800 1,954 17,754 9,088 30 9,118 (141) 26,731
Amortisation of
acquired
intangible
assets - (272) (272) (2,349) (214) (2,563) - (2,835)
Other
highlighted
items - - - - - - (1,715) (1,715)
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
Profit/(loss)
before
taxation 15,800 1,682 17,482 6,739 (184) 6,555 (1,856) 22,181
Taxation - - - - - - (5,291) (5,291)
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
Profit/(loss)
for the year 15,800 1,682 17,482 6,739 (184) 6,555 (7,147) 16,890
---------------- ----------- --------- --------- ------------- --------- ------------- ------------ ----------
Operating
profit/(loss)
before
highlighted
items/ segment
results 15,962 2,048 18,010 9,141 78 9,219 (117) 27,112
Depreciation 914 632 1,546 604 251 855 - 2,401
Amortisation of
internally
generated
intangibles 455 508 963 3,405 302 3,707 - 4,670
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
EBITDA before
highlighted
items 17,331 3,188 20,519 13,150 631 13,781 (117) 34,183
---------------- ----------- --------- --------- ------------- --------- ------------ ----------
External revenue by source
United
Kingdom North America Australia India Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- -------- ------------- --------- -------- --------
Year ended 28 February
2023 144,632 98,294 16,145 5,031 264,102
----------------------- -------- ------------- --------- -------- --------
Year ended 28 February
2022 143,192 69,651 13,133 4,134 230,110
----------------------- -------- ------------- --------- -------- --------
During the year sales to one customer exceeded 10% of Group
revenue (2022: one customer). The value of these sales was
GBP68,856,000 (2022: GBP67,811,000).
External revenue by product type
Children's Adult Academic Special
Year ended 28 February Trade Trade Consumer & Professional Interest Non-Consumer Total
2023 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- ---------- -------- -------- --------------- --------- ------------ --------
Print 90,481 44,702 135,183 32,942 17,841 50,783 185,966
Digital 13,599 11,374 24,973 39,051 2,293 41,344 66,317
Rights and Services(1) 4,817 1,720 6,537 3,756 1,526 5,282 11,819
Total 108,897 57,796 166,693 75,749 21,660 97,409 264,102
----------------------- ---------- -------- -------- --------------- --------- ------------ --------
Children's Adult Academic Special
Year ended 28 February Trade Trade Consumer & Professional Interest Non-Consumer Total
2022 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- ---------- -------- -------- --------------- --------- ------------ --------
Print 79,053 42,702 121,755 29,996 18,632 48,628 170,383
Digital 10,511 10,511 21,022 27,150 2,354 29,504 50,526
Rights and Services(1) 3,475 1,944 5,419 2,182 1,600 3,782 9,201
Total 93,039 55,157 148,196 59,328 22,586 81,914 230,110
----------------------- ---------- -------- -------- --------------- --------- ------------ --------
(1) Rights and Services revenue includes revenue from copyright
and trademark licences, management contracts, advertising and
publishing services.
Total assets
28 February 28 February
2023 2022
GBP'000 GBP'000
------------------------- ------------ ------------
Children's Trade 19,569 13,633
Adult Trade 14,493 13,513
Academic & Professional 77,918 78,096
Special Interest 14,381 13,170
Unallocated 188,752 170,825
Total assets 315,113 289,237
------------------------- ------------ ------------
Unallocated primarily represents centrally held assets including
system development, property plant and equipment, right-of-use
assets, receivables and cash.
Analysis of non-current assets (excluding deferred tax assets
and financial instruments) by geographic location
28 February 28 February
2023 2022
GBP'000 GBP'000
------------------------------------- ----------- -----------
United Kingdom (country of domicile) 71,311 79,708
North America 26,796 22,196
Other 421 244
Total 98,528 102,148
------------------------------------- ----------- -----------
3. Highlighted items
Year ended Year ended
28 February 28 February
2023 2022
GBP'000 GBP'000
------------------------------------- ------------ ------------
Legal and other professional
fees 93 1,317
Integration and restructuring
costs 364 398
Other highlighted items 457 1,715
Amortisation of acquired intangible
assets 5,226 2,835
-------------------------------------- ------------ ------------
Total highlighted items 5,683 4,550
-------------------------------------- ------------ ------------
Highlighted items charged to operating profit comprise
significant non-cash charges and major one-off initiatives which
are highlighted in the income statement because, in the opinion of
the Directors, separate disclosure is helpful in understanding the
underlying performance and future profitability of the
business.
All highlighted items are included in administrative expenses in
the income statement.
For the year ended 28 February 2023, legal and other
professional fees of GBP93,000 were incurred as a result of the
Group's acquisitions, including ABC-CLIO, LLC and certain assets of
UIT Cambridge. Integration and restructuring costs primarily relate
to the integration of the ABC-CLIO, LLC, Head of Zeus Limited
acquisitions and certain assets of Red Globe Press.
For the year ended 28 February 2022, legal and other
professional fees of GBP1,317,000 were incurred as a result of the
Group's acquisitions, including ABC-CLIO, LLC, Head of Zeus Limited
and certain assets of Red Globe Press. Integration and
restructuring costs primarily relate to the integration of the
above acquisitions including restructuring and other restructuring
in both divisions.
4. Taxation
Factors affecting tax charge for the year
The tax on the Group's profit before tax differs from the
standard rate of corporation tax in the United Kingdom of 19.0%
(2022: 19.0%). The reasons for this are explained below:
Year ended Year ended
28 February 28 February
2023 2022
GBP'000 % GBP'000 %
--------------------------------------------- -------- ------ ------------ ------
Profit before taxation 25,415 100.0 22,181 100.0
--------------------------------------------- -------- ------ ------------ ------
Profit on ordinary activities multiplied
by the standard rate of corporation
tax in the UK of 19.0% (2022: 19.0%) 4,829 19.0 4,214 19.0
Effects of:
Non-deductible revenue expenditure 67 0.3 16 0.1
Non-taxable income (323) (1.3) (383) (1.7)
Different rates of tax in foreign
jurisdictions 865 3.4 946 4.3
Tax losses 189 0.7 (212) (1.0)
Movement in deferred tax rate (65) (0.3) 144 0.7
Adjustment to tax charge in respect
of prior years
Current tax (1,123) (4.4) (173) (0.8)
Deferred tax 724 2.9 512 2.3
--------------------------------------------- -------- ------ ------------ ------
Tax charge for the year before disallowable
costs on highlighted items 5,163 20.3 5,064 22.9
Highlighted items:
Disallowable costs 8 - 227 1.0
Tax charge for the year 5,171 20.3 5,291 23.9
--------------------------------------------- -------- ------ ------------ ------
Different rates of tax in foreign jurisdictions is where we are
paying tax at higher rates in the US and Australia as well as
paying state taxes in the US.
Tax losses relate to the recognition of previously unrecognised
tax losses or losses in the year that have not been recognised as
deferred tax assets.
Adjustments to prior periods primarily arise where an outcome is
obtained on certain tax matters which differs from expectations
held when the related provision was made. Where the outcome is more
favourable than the provision made, the difference is released,
lowering the current year tax charge. Where the outcome is less
favourable than our provision, an additional charge to current year
tax will occur.
We are not aware of any significant unprovided exposures that
are considered likely to materialise.
5. Dividends
Year ended Year ended
28 February 28 February
2023 2022
GBP'000 GBP'000
------------------------------------------ ------------ ------------
Amounts paid in the year
Prior period 9.40p final dividend per
share (2022: 7.58 p) 7,604 6,141
Prior period special dividend per share
for the year (2022: 9.78p) - 7,923
Interim 1.41p dividend per share (2022:
1.34p) 1,148 1,093
------------------------------------------ ------------ ------------
Total dividend payments in the year 8,752 15,157
------------------------------------------ ------------ ------------
Amounts arising in respect of the year
Interim 1.41p dividend per share for
the year (2022: 1.34p) 1,148 1,093
Proposed 10.34p final dividend per share
for the year (2022: 9.40p) 8,397 7,671
------------------------------------------ ------------ ------------
Total dividend 11 .75p per share for
the year (2022: 10.74p) 9,545 8,764
------------------------------------------ ------------ ------------
The Directors are recommending a final dividend of 10.34 pence
per share, which, subject to Shareholder approval at the Annual
General Meeting, will be paid on 25 August 2023 to Shareholders on
the register at close of business on 28 July 2023.
6. Earnings per share
The basic earnings per share for the year ended 28 February 2023
is calculated using a weighted average number of Ordinary shares in
issue of 81,172,636 (2022: 81,532,620) after deducting shares held
by the Employee Benefit Trust.
The diluted earnings per share is calculated by adjusting the
weighted average number of Ordinary shares to take account of all
dilutive potential Ordinary shares, which are in respect of
unexercised share options and the Performance Share Plan.
Year ended Year ended
28 February 28 February
2023 2022
Number Number
Weighted average shares in issue 81,172,636 81,532,620
Dilution 1,336,878 1,530,573
----------------------------------- ------------ ------------
Diluted weighted average shares
in issue 82,509,514 83,063,193
----------------------------------- ------------ ------------
GBP'000 GBP'000
----------------------------------- ------------ ------------
Profit after tax attributable
to owners of the Company 20,244 16,890
Basic earnings per share 24.94p 20.72p
----------------------------------- ------------ ------------
Diluted earnings per share 24.54p 20.33p
----------------------------------- ------------ ------------
GBP'000 GBP'000
----------------------------------- ------------ ------------
Adjusted profit attributable to
owners of the Company 25,217 21,548
Adjusted basic earnings per share 31.07p 26.43p
----------------------------------- ------------ ------------
Adjusted diluted earnings per
share 30.56p 25.94p
----------------------------------- ------------ ------------
Adjusted profit is derived as follows:
Year ended Year ended
28 February 28 February
2023 2022
GBP'000 GBP'000
Profit before taxation 25,415 22,181
Amortisation of acquired intangible
assets 5,226 2,835
Other highlighted items 457 1,715
------------------------------------- ------------ ------------
Adjusted profit before tax 31,098 26,731
------------------------------------- ------------ ------------
Tax expense 5,171 5,291
Deferred tax movements on goodwill
and acquired intangible assets 631 (207)
Tax expense on other highlighted
items 79 99
Adjusted tax 5,881 5,183
------------------------------------ ------ ------
Adjusted earnings 25,217 21,548
------------------- ------- -------
The Group includes the benefit of tax amortisation of intangible
assets in the calculation of adjusted
tax as this more accurately aligns the adjusted tax charge with
the expected cash tax payments.
7. Trade and other receivables
28 February 28 February
2023 2022
GBP'000 GBP'000
Non-current
Accrued income 934 923
------------------------------------------- ------------ ------------
Current
Gross trade receivables 72,549 68,764
Less: loss allowance (3,334) (3,551)
------------------------------------------- ------------ ------------
Net trade receivables 69,215 65,213
Income tax recoverable 2,332 1,392
Other receivables 2,497 2,431
Prepayments 2,653 2,672
Accrued income 6,579 4,494
Royalty advances 29,543 28,677
Total current trade and other receivables 112,819 104,879
------------------------------------------- ------------ ------------
Total trade and other receivables 113,753 105,802
------------------------------------------- ------------ ------------
Non-current receivables relate to accrued income on long-term
rights deals.
Trade receivables principally comprise amounts receivable from
the sale of books due from distributors. The majority of trade
debtors are secured by credit insurance and in certain territories
by third party distributors.
A provision is held against gross advances payable in respect of
published title advances which may not be fully earned down by
anticipated future sales. As at 28 February 2023, GBP7,745,000
(2022: GBP7,145,000) of royalty advances relate to titles expected
to be published in more than 12 months' time.
8. Annual General Meeting
The Annual General Meeting will be held on 18 July 2023.
9. Report and Accounts
Copies of the Annual Report and Financial Statements will be
circulated to shareholders in June and can be viewed after the
posting date on the Bloomsbury website.
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