Bloomsbury Publishing : Preliminary Results 2024

Bloomsbury Publishing Plc

R e s u l t s f o r t h e ye a r e n d e d 2 9 Fe b r u a r y 2 0 2 4

Record results

"Exceptional performance with revenue up 30%, profit up 57% and dividend up 25%"

Our strategy of diversification has forged a portfolio of portfolios; a resilient model for long-term success

2023/24 exceptional performance delivering the highest revenue and profit in Bloomsbury's history

Revenue up 30% to £342.7m and profit up 57% to £48.7m with margin up to 14.2% from 11.8%

Total dividend increased by 25% to 14.69p per share

Reiterating Bloomsbury Digital Resources (BDR) target of c.£37m turnover and 40% organic revenue growth over five years to 2027/28

Flywheel effect: Investment in high quality content driving strong customer demand, generating cash to fund further investment, acquisitions and cash returns

Bloomsbury Publishing | FY2023/24 Results

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Exceptional Growth

Bloomsbury has delivered bestselling and award-winning titles across its portfolio with proven ability to build global brands

Record revenue of £342.7m, with 30% growth year-on-year

Exceptional

Consumer performance: revenue up 49%

Profit before		Strong operational
taxation and		gearing with
highlighted items		margin
of £48.7m with		improvement to
57% growth year-		14.2%
on-year

Dividend growth		Successful
25% year-on-		diversification and
year with 9.7%		digital strategy
CAGR over the
last 10 years

Bloomsbury Publishing | FY2023/24 Results

Financial Highlights

Our strategy of diversification has forged a portfolio of portfolios, a resilient model delivering long- term success

			Growth	Growth
£m	2023/24	2022/23	%	CER3 %
Revenue	342.7	264.1	30%	33%
Pre-tax profit margin1	14.2%	11.8%
Pre-tax profit1	48.7	31.1	57%	62%
Effective tax rate2	21.0%	18.9%
Diluted EPS	46.62p	30.56p	53%	59%
Net cash	65.8	51.5	28%	32%
Full year dividend per share	14.69p	11.75p	25%

Notes:

1. The above results are adjusted by excluding highlighted items, comprising legal and professional costs relating to ongoing and completed acquisitions and restructuring costs (£2.4m) and amortisation of acquired intangible assets (£4.9m), which are shown on slide 29
2. The effective tax rate is the adjusted rate used to calculate adjusted EPS. The reported rate in the year is 22% (2022/23: 20%)
3. CER is results at constant exchange rates calculated by applying monthly average exchange rates for 2022/23 to the monthly results for 2023/24

Bloomsbury Publishing | FY2023/24 Results

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Diversified

Revenue

Channels

Growth across main channels

Demand for digital content with 29% growth

Excellent growth in accelerating audio content

£m		2023/24	2022/23	Growth %
Print		246.2	186.0	32%
ebooks		52.2	35.5	47%
Audio		6.9	4.6	50%
BDR		26.6	26.2	2%
Digital		85.7	66.3	29%
Total book sales		331.9	252.3	32%
Rights and services		10.7	11.8	(9)%
Total revenue		342.7	264.1	30%
R&S 3%			R&S 5%
BDR 8%		BDR 10%
Audio 2%	Audio 2%
Print 72%			Print 70%
Ebooks 15%	Ebooks 13%
2023/24				2022/23

Bloomsbury Publishing | FY2023/24 Results

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Strong

Balance

Sheet

Robust balance sheet to support future growth

£m	29 February	28 February
	2024	2023
Goodwill & acquired	71.4	77.7
intangibles
Internally generated	8.9	9.2
intangibles
Property, plant & equipment	2.2	2.5
Tax balances: deferred &	9.8	6.4
current
Working capital (excl tax)	47.4	43.2
Net impact of IFRS 16	(1.3)	(1.5)
Other	(1.7)	(1.2)
	136.7	136.3
Net cash	65.8	51.5
Net assets	202.5	187.8

Finished goods inventory reduces by 26% (£10m)

Includes £35m advances and £37m inventory

Strong cash generation

Bloomsbury Publishing | FY2023/24 Results

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Cashflow

Strong cash generation supporting capital allocation to drive growth

2023/24

£m

48.7(1.9)(12.9)

(5.8)

51.5

(11.3)

(2.5)

65.8

Opening balance 28	PBTA	FX movement	Tax	Capex	Dividends	Other Working Capital Closing balance 29
Feb 2023						Feb 2024

Key working capital movements:

Advances paid of £19.8m (2022/23: £14.8m)

Royalty payments of £31.3m (2022/23: £33.2m)

Bloomsbury Publishing | FY2023/24 Results

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Outstanding

Dividend

Growth

Final dividend increases by 6%

Progressive dividend policy: aim to keep cover in excess of 2x

Full year dividend increased 25% reflecting exceptional performance

14.69

11.75

10.74

9.78

8.86

7.96

8.17

7.51

6.10

6.40

6.70

share

5.82

5.50

5.20

5.00

per

4.43

3.60

3.66

4.00

4.22

Pence

3.00

31 Dec 04

31 Dec 05

31 Dec 06

31 Dec 07

31 Dec 08

31 Dec 09

14 months to 28 Feb 11*

29 Feb 12

28 Feb 13

28 Feb 14

28 Feb 15

29 Feb 16

28-Feb-17

28-Feb-18

28-Feb-19

29-Feb-20 **

28-Feb-21

28-Feb-21 Special dividend

28-Feb-22

28-Feb-23

29-Feb-24

Year ended

Year ended

Notes: * Dividend for 14 months ended 28 February 2011 included 0.28 pence per share for the two months ended 28 February 2011

**

Dividend for the year ended 29 February 2020 was made up of 1.28 pence per share of cash and 6.89 pence per share bonus issue value

Bloomsbury Publishing | FY2023/24 Results

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Bloomsbury

Investment

Case

Diversified portfolio: markets, channels and territories

Valuable IP from high calibre authors

Strong balance sheet

Flywheel effect of successful long term strategy

• Unique portfolio of Consumer and Academic publishing
• Success of diversified strategy: across channels, markets and territories
• Investment in content driving strong demand, generating cash to fund further investment
• 222% growth in adjusted diluted EPS over 5 years to 2023/24

Progressive dividend policy

• Long term growth
• Strong cash cover
• Rebalance of interim and final dividend to reflect success of portfolio strategy

Acquisitions

• Using our strong financial position to fund further acquisitions
• Scale through selective and strategic acquisitions
• Actively targeting and assessing opportunities in line with long-term growth strategy
• 33 acquisitions completed since inception

Bloomsbury Publishing | FY2023/24 Results

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Diversified Strategy

Successfully diversified portfolio of publishing portfolios through international expansion, our digital strategy and growth of our Non-Consumer business

Channels

	•	Digital products, print,
		eBooks and audio
	•	Easy and complementary
		customer access
Channels	Territory
	• Global expansion, with 77% of
Territory		revenue international
•	Global reach of key authors
	• US, UK, Australia and India
	Markets
Markets	• Unique combination of Academic
	and Consumer publishing
	•	Publishing portfolio diversified
		across consumer and academic
		markets

Bloomsbury Publishing | FY2023/24 Results

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