Bloomsbury Publishing - best known for the Harry Potter books - has reported steady annual profits and hopes for a boost from the new BBC adaptation of Susanna Clarke’s Jonathan Strange & Mr Norrell.
The company said revenues had risen 1.5% to £111.1m with profits edging up from £9.5m to £9.6m, helped by strong performances from the children’s and eductional divisions. Harry Potter sales grew by 29%, thanks to a reissue of the novels with new covers from Jonny Duddle.
Chief executive Nigel Newton said:
This has been a good year for Bloomsbury.It was characterised by a consistent development of the strategic aims of the business - in short, digital investment, a greater proportion of business generated from academic and professional publishing, a greater proportion of sales from non-traditional book retailers and a focus on marketing to discrete communities of interest.
Our focus remains on growing academic, professional, special interest and educational revenues to reduce the overall exposure of the business to the traditional book market.
We have started the new year well with some notable successes in our Adult and Children’s & Educational divisions, including this week’s New York Times Bestseller A Court of Thorns and Roses by Sarah J. Maas and the highly rated BBC1 tie-in to Jonathan Strange & Mr Norrell.
The company’s shares were steady at 178p, and Numis analyst Gareth Davies said:
Bloomsbury have reported results for 2015 that are broadly in line with our estimates. Adjusted earnings per share came in comfortably ahead, a result of an underlying tax charge in the year of 8.9% . Outlook comments confirm that 2015/16 has started well. Whilst our mix will shift a little, and tax charge down a touch (20% to 19%), we do not expect to make any material change to our 2015/16 pretax profit/adjusted earnings per share of £12.9m/13.8p and year end cash balance of £8.9m. We retain our hold recommendation and a blended multiples based target of 185p.
Peel Hunt said:
The second half sales grew around 7%, and the year as a whole was driven by a strong children’s list (well ahead of our forecast) offsetting a predictably slower adult performance. Currency will help full year 2016 revenue (a £3m benefit) as will the TV tie-ins for Johnathan Strange and Mr Norrell as well as the Harry Potter illustrated. The latter will derive revenues globally. Overall no change to pretax profit forecast for 2016. We maintain our 190p target price and buy recommendation.
