Bloomsbury Publishing Plc Annual Report and Accounts 2021 Welcomecontinued to Bloomsbury’S 2021 Annual Report Overview
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Bloomsbury Publishing Plc Annual Report and Accounts 2021 Welcomecontinued to Bloomsbury’s 2021 Annual Report Overview Who we are Bloomsbury Publishing Plc is an entrepreneurial, independent, worldwide publisher listed on the London Stock Exchange, with offices in London, Oxford, New York, Sydney and New Delhi, and a joint venture in China. Bloomsbury was founded in 1986 by its Chief Executive Nigel Newton and three other publishers with the aim of establishing an independent, medium-sized publisher of books of editorial excellence and originality, publishing literary authors of the highest quality and sales potential to high standards of design and production. Following significant early successes, the Company floated on the main London Stock Exchange in 1994. In 2006, Bloomsbury entered the academic publishing market and embarked upon a strategy of expansion and diversification. This continues today and underpins the strength and resilience of our business. Since the Company’s inception we have acquired 27 publishers and imprints. Bloomsbury is the only major UK publisher to combine general and academic publishing, balancing the steady, high margins of academic publishing against the volatility of trade publishing with its explosive upside potential as demonstrated by bestsellers such as Harry Potter, the highest-selling children’s series of our time. We bring together the best talent in publishing by combining our dedicated, passionate colleagues and our bestselling authors. Through our single-minded commitment to quality, vigorous pursuit of growth, focus on digital publishing and our diversified, international strategy, Bloomsbury has grown to become one of the world’s leading independent publishers in academic and general consumer publishing. Contents Overview Engagement with Stakeholders 55 Consolidated Statement of 2020/2021 Highlights 2 Considering our Stakeholders through Financial Position 144 Bloomsbury’s Culture 4 the Covid-19 Pandemic 63 Consolidated Statement of Changes in Equity 145 Bloomsbury at a Glance 6 Corporate Responsibility 65 Consolidated Statement of Cash Flows 146 Bestsellers 2020/2021 8 Governance Notes to the Financial Statements 147 Chairman’s Statement 12 Chairman's Introduction to Corporate Company Statement of Strategic Report Governance 83 Financial Position 185 Corporate Governance Framework 85 Company Statement of Chief Executive’s Review 14 Board of Directors 86 Changes in Equity 186 Bloomsbury’s Marketplace 22 Directors’ Report 88 Company Statement of Cash Flows 187 Business Model 24 Corporate Governance Report 94 Notes to the Company Strategy 25 Nomination Committee Report 101 Financial Statements 188 Bloomsbury’s Strategic Priorities 26 Audit Committee Report 104 Key Performance Indicators 28 Additional Information Directors’ Remuneration Report 108 Divisional Overview Five Year Financial Summary 200 Section 172 Directors’ Duties Statement 129 – The Consumer Division 30 Company Information 201 – The Non-Consumer Division 38 Financial Statements Legal Notice 202 – Group Functions supporting Independent Auditor’s Report 132 Notice of the Annual General Meeting 203 our Publishing Divisions 42 Consolidated Income Statement 142 – Our International Offices 43 Consolidated Statement of Financial Review 44 Comprehensive Income 143 Principal Risks and Risk Management 48 Stock code: BMY Annual Report and Accounts 2021 1 2020/2021 Highlights Financial highlights Profit before tax and Revenue Dividend1 highlighted items2 £m pence per share £m £185.1m 18.64p £19.2m +14% +1356% +22% 18.64p £19.2m £185.1m £162.7m £162.8m £161.5m £15.7m £14.4m £142.6m £13.2m £12.0m 7.96p 7.51p 6.70p 1.28p 17 18 19 20 21 17 18 19 20 21 17 18 19 20 21 Profit before tax Adjusted diluted EPS3 4 Diluted EPS4 £m pence per share pence per share £17.3m 18.68p 16.71p +31% +15% +25% 18.68p 16.71p £17.3m 16.23p 13.40p 14.48p £13.2m 13.47p 11.85p 11.67p £12.0m 12.22p £11.6m 9.49p £9.4m 17 18 19 20 21 17 18 19 20 21 17 18 19 20 21 • Revenues increased by 14% to £185.1 million • Diluted earnings per share grew by 25% to 16.71 pence (2019/2020: £162.8 million) (2019/2020: 13.40 pence)4 • Profit before taxation and highlighted items2 grew by • Net cash of £54.5 million at 28 February 2021, up 74% 22% to £19.2 million, up from £15.7 million in 2019/2020 (2020: £31.3 million) • Profit before taxation grew by 31% to £17.3 million • Cash conversion of 142% (2019/2020: 111%) (2019/2020: £13.2 million) • Final dividend of 7.58 pence per share (2020: bonus issue • Diluted earnings per share, excluding highlighted items3, with a value equivalent to 6.89 pence per share6) 4 grew by 15% to 18.68 pence (2019/2020: 16.23 pence) • Special dividend of 9.78 pence per share Notes 1 For the year ended 29 February 2020, Bloomsbury had intended to declare a final dividend for the year of 6.89 pence per share. This would have resulted in a total dividend for the year of 8.17 pence per share. Bloomsbury decided in light of coronavirus to conserve cash and therefore made a bonus issue to Shareholders in lieu of, and with a value equivalent to, it’s proposed final cash dividend of 6.89 pence per ordinary share. The dividend for the year ended 28 February 2021 includes a special dividend of 9.78p pence per share in recognition of the boom in trading this year. 2 Highlighted items comprise amortisation of acquired intangible assets, legal and other professional costs relating to ongoing and completed acquisitions and restructuring costs, and a grant under the US Government Paycheck Protection Program. 3 Adjusted diluted EPS is calculated from profit before tax and highlighted items with taxation on profit before tax and highlighted items deducted. 4 Restatement of all prior periods earnings per share due to bonus issue of shares in the year. 5 Publishers association: 2020 Consumer Market up 7% year on year. 6 2019/2020: bonus issue in lieu of, and with a value equivalent to, proposed final dividend of 6.89 pence per share. 2 Bloomsbury Publishing Plc www.bloomsbury.com Overview Operational highlights Consumer division Non-Consumer division • Outstanding Consumer revenue growth of 22% to £118.3 • Resilient Non-Consumer performance, with revenue growth of million (2019/2020: £96.8 million) 1% to £66.8 million (2019/2020: £66.0 million) • Consumer profit before taxation and highlighted items2 • Non-Consumer profit before taxation and highlighted items2 increased by 61% to £14.2 million (2019/2020: £8.9 million) of £5.4 million (2019/2020: £6.7 million) • Very strong Adult Trade performance, with revenue up 17% • Bloomsbury Digital Resources (“BDR”) revenues growth of to £43.7 million (2019/2020: £37.4 million) and profit before 49% to £12.4 million (2019/2020: £8.3 million) and profit of taxation and highlighted items2 up 145% to £3.9 million £2.9 million (2019/2020: £0.7 million) (2019/2020: £1.6 million) • Digital format sales now comprise 33% of Non-Consumer • Excellent Children’s Trade performance, with revenue growth revenues, a CAGR of 31% over four years of 26% to £74.6 million (2019/2020: £59.4 million) and profit • Good Academic & Professional performance, with revenue 2 before taxation and highlighted items up 42% to £10.4 growth of 3% to £44.3 million (2019/2020: £43.1 million) and million (2019/2020: £7.3 million) profit before taxation and highlighted items2 of £4.3 million • Sales of Sarah J. Maas’ titles grew by 129% and Harry Potter (2019/2020: £4.8 million) sales grew by 7% • Acquisition of Red Globe Press assets in April 2021 for • Appointment of Ian Hudson as Managing Director, Consumer £3.7 million, accelerating our digital growth and our Publishing, and Paul Baggaley, Editor-in-Chief, Adult significant presence in humanities and social sciences Consumer Publishing; an industry leading team to drive our academic publishing ambitious growth plans • Voted “Academic, Educational and Professional Publisher of Read more in our performance the Year” at the 2021 British Book Awards section on pages 14 to 21 • BDR partnerships with Taylor & Francis and Human Kinetics launched, and new partnerships with Yale University Press, Liverpool University Press and the Stratford Festival Consumer revenue up by Bloomsbury Digital Resources 22%* revenue up by 49% Consumer profit up by Digital format sales comprise 61% 33% of Non-Consumer revenues * significantly outperforming the industry’s 7% growth5 Winner - Academic, Educational and Professional Publisher of the Year “This is Bloomsbury’s third win in this databases, backed by an effective Read category in nine years: testament to On campaign that promoted its support for consistently strong growth and innovation home study. There tends to be little overlap that not even a pandemic could disrupt. In between trade and academic publishing, fact, the closure of universities and schools, but in 2020 Bloomsbury showed a rare and a sudden shift to remote learning, mastery of both. “To grow sales in such a played to Bloomsbury’s strengths in digital tough year for all its staff, customers and resources, including its deep archives of partners is remarkable,” said the judges. specialist research content and e-books. “Bloomsbury is an all-round smart and It moved quickly to meet the needs of creative business with timely and topical students, teachers, academics and librarians, publishing… there’s a strategic element to opening up free access to a swathe of its everything it does”.“ Extract from The Bookseller — www.thebookseller.com/british-book-awards/academic-publisher-of-the-year Stock code: BMY Annual Report and Accounts 2021 3 Bloomsbury’s Culture Our mission discussions. Bloomsbury’s culture continues to evolve through Our mission is to be an entrepreneurial, independent publisher our HR initiatives and our work on diversity and inclusion which of works of excellence and originality to a worldwide audience.