Bloomsbury Publishing .Bloomsbury Publishing Plc Annual Report and ... Both revenue and profit...

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  • 24695 14 June 2016 10:24 AM Pass for Press

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    Bloomsbury Publishing Plc50 Bedford Square, London WC1B 3DP

    Telephone +44 (0) 20 7631 5600www.bloomsbury.com

    www.bloomsbury-ir.co.ukStock code: BMY

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  • Bloomsbury Publishing Plc Annual Report and Accounts 2016

    24695 14 June 2016 10:24 AM Pass for Press

    IntroductionBloomsbury Publishing is an independent global publisher listed on the London Stock Exchange with offices in London, Oxford, New York, New Delhi and Sydney. Over its 30-year history, Bloomsburys mission has been to publish works of excellence and originality. Bloomsbury has built up a valuable portfolio of content and rights-based intellectual property assets.

    A long track record of dividend growth can be seen as a hallmark of a high quality and resilient business. It shows a company has been able to prosper in good times and bad and might be able to keep on doing so.

    But investors also need to be wary. Sometimes management can become slaves to a dividend policy and pay dividends which arent sustainable. Investors need to keep an eye on the levels of dividend cover and whether a company might be borrowing to pay its dividend due to a lack of cash flow.

    Phil Oakley, analyst at SharePad, said:

    Why these are Britains best dividend shares

    Research for Telegraph Money by SharePad, a portfolio analysis tool, filtered the UK stock market for companies that have grown dividends every year for at least two decades.

    It looked at every share in the FTSE All Share, excluding investment trusts. In applying the screen some shares, such as Royal Dutch Shell which has not cut its dividends since 1945, do not feature. This is because there has been at least one year when the dividend was maintained rather than increased.

    A total of ten shares qualified as dividend kings:

    Share Name Industry Dividend Cover Dividend Yield

    Vodafone Telecoms 5.2% 0.5

    Cranswick Food 1.8% 2.8

    SSE Energy 6.2% 1.2

    RPC Plastics specialist 2.2% 2.6

    Fuller Smith & Turner Brewer and pubs 1.6% 3.2

    Halma Health and safety devices 1.4% 2.7

    Bloomsbury Publishing 4.3% 2.2PZ Cussons Household goods 2.7% 2.1

    Capita Outsourcing 3.3% 2.2

    Mitie Group Outsourcing 4.6% 2.0

    Source: SharePad. Please note data used is the forecast dividend yield, based on analysts expectations in one years time.

    This cover is calculated by comparing profits and dividends. As a rule of thumb, a low dividend cover score, around one or lower, suggests dividends are vulnerable, as the company is using most, if not all, of its profits to fund the dividend. A figure of two or more is comfortable.

    An extract of an article in Telegraph Money by Kyle Caldwell, 27 March 2016.

    The full article is found at http://www.telegraph.co.uk/investing/shares/why-these-are-britains-best-dividend-shares/

    Telegraph Money

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  • www.bloomsbury.com

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    Stock Code: BMY

    Revenue m

    Total dividend pence

    123.

    7

    111.

    1

    109.

    5

    2014 2015 2016

    6.40

    6.10

    5.82

    2014 2015 2016

    Profit before tax m

    Adjusted profit1 m

    10.4

    9.6

    9.5

    2014 2015 2016

    13.0

    12.1

    12.0

    2014 2015 2016

    Adjusted diluted EPS2 m

    Diluted EPS m

    15.2

    4

    14.7

    3

    12.8

    0

    2014 2015 2016

    12.9

    3

    11.9

    0

    10.4

    3

    2014 2015 2016

    Contents

    STRATEGIC REPORT

    Performance Overview

    Highlights 2

    Chairmans Statement 3

    Chief Executives Review 4

    Group Overview

    Group Strategic Summary 14

    Academic & Professional 16

    Children's & Educational 18

    Adult 20

    Bloomsbury Information 23

    Group Functions 24

    Financial Review 25

    Risk Factors 32

    Corporate Responsibility 36

    GOVERNANCE

    Board of Directors 42

    Directors Report 44

    Corporate Governance 49

    Directors Remuneration Report 58

    FINANCIAL STATEMENTS

    Independent Auditors Report 75

    Consolidated Income Statement 79

    Consolidated Statement of Comprehensive Income 80

    Consolidated Statement of Financial Position 81

    Consolidated Statement of Changes in Equity 82

    Consolidated Statement of Cash Flows 83

    Notes to the Consolidated Financial Statements 84

    Company Statement of Financial Position 118

    Company Statement of Changes in Equity 119

    Company Statement of Cash Flows 120

    Notes to the Company Financial Statements 121

    COMPANY INFORMATION

    Five Year Financial Summary 130

    Company Information 131

    Explanation of the Annual General Meeting 132

    Notice of the Annual General Meeting 135

    Notes:

    1. Adjusted profit is profit before taxation, amortisation of acquired intangible assets and other highlighted items. 2014 has been restated to add back internally generated intangible asset amortisation to adjusted profit.

    2. Adjusted diluted EPS is calculated from adjusted profit with taxation on adjusted profit deducted. Again 2014 has been restated to reflect the change in treatment of internally generated intangible asset amortisation.

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  • 2 Bloomsbury Publishing Plc Annual Report and Accounts 2016

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    Highlights

    Financial Highlights

    Operational HighlightsChildrens & Educational

    Revenue for the year increased by 57% to 41.8 million

    (2015: 26.6 million)

    Sales of Harry Potter in the year grew by 133%, including Harry

    Potter and the Philosophers Stone Illustrated Edition by J. K.

    Rowling and Jim Kay, which is being published to great acclaim

    A Court of Mist and Fury by Sarah J. Maas hit number one on the

    New York Times bestseller list in May 2016. Sales of Sarah J. Maas

    titles, which included A Court of Thorns and Roses, grew by 184%

    Adult division

    Revenue increased by 3% year on year to 46.0 million

    (2015: 44.7 million)

    Osprey Publishing, which was acquired in December 2014,

    generated revenue of 7.2 million (2015: 1.5 million)

    Focus on special interest niches paying off, representing 14%

    of total Bloomsbury sales (2015: 10%)

    Academic & Professional

    Revenue for the year was 32.7 million (2015: 36.0 million),

    slightly lower as expected due to a strong rights and services

    comparator last year

    Digital revenues grew by 24% year on year to 5.3 million, more

    than treble the industry growth rate (Source: Publishing Association: Digital Sales Monitor)

    Revenue grew by 11% to 123.7 million (2015: 111.1 million)

    Profit before taxation and highlighted items increased by 8% to 13.0 million (2015: 12.1 million)

    Both revenue and profit benefited from the successful integration of Osprey Publishing acquired in December 2014

    Final dividend per share of 5.34 pence (2015: 5.08 pence) making a total dividend of 6.4 pence for the year (2015: 6.1 pence)

    Diluted earnings per share, excluding highlighted items, were 15.24 pence (2015: 14.73 pence)

    Strategic Developments Bloomsbury 2020 launched in May 2016, moving Bloomsbury further into the area of B2B digital publishing; a significant growth plan

    for Bloomsbury Digital Resources Publishing, a new range of scholarly digital resources aimed at academic libraries worldwide whose

    collective budgets are approximately $5 billion

    Announcement in May 2016 of reorganisation of Bloomsbury from four to two divisions: Consumer and Non-Consumer, to reflect the

    increasing emphasis on our Non-Consumer businesses

    Digital now represents 16% of total revenues in the division

    (2015: 12%)

    Acquisition of the definitive family law list for net consideration

    of 0.5m

    Bloomsbury Information

    Revenue for the year was 3.2 million (2015: 3.9 million)

    Operating profit before highlighted items was up 9% to

    1.2 million (2015: 1.1 million)

    From 2016, Bloomsbury is providing publishing services to the

    Arcadian Library, one of the finest collections of books about

    relations between the West and the Arab and Islamic worlds

    Strong list for the year ahead

    Harry Potter and the Chamber of Secrets Illustrated Edition by

    J. K. Rowling and Jim Kay

    Two front list Sarah J. Maas titles

    New cookery titles from Tom Kerridge and Hugh Fearnley-

    Whittingstall

    New content from J. K. Rowling for the new edition of Fantastic

    Beasts & Where to Find Them

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