Bloomsbury Publishing PLC (LSE:BMY) printed its best ever sales and profits in the first half of 2021 as it successfully mitigated print supply chain challenges and booksellers significantly increased stock levels.
The independent publisher announced a 5% increase to the interim dividend to 1.34p per share and said with net cash of £43.7mln and continued cash generation it is eyeing further acquisitions and investment in organic growth.
Revenue hit £100.7mln for the six months to 31 August, up 29% on the same period last year. The Consumer arm grew 29% to £62.9mln and Non-Consumer by 27% to £37.7mln, both helped by acquisitions completed during the period.
Underlying profit before taxation soared 220% to £12.9mln, while reported pretax profit was up 265% to £11.1mln.
Chief executive Nigel Newton said: “These are our highest ever first half sales and profits. These results demonstrate the strength and resilience of our strategy of publishing for both the consumer and academic markets, and our growth of digital revenues.”
He said supply chain issues were sidestepped by measures including earlier printing, well in advance of usual peaks pre-Christmas and the start of the academic term, and more flexibility over where printing was carried out.
Bestsellers during the period included Tom Kerridge's Outdoor Cooking, Piranesi by Susanna Clarke, A Court of Silver Flames by Sarah J. Maas, The Priory of the Orange Tree by Samantha Shannon and The Song of Achilles by Madeline Miller.
In the early weeks of the second half, Bloomsbury authors Abdulrazak Gurnah and Susanna Clarke won the Nobel Prize in Literature and The Women's Prize respectively.
“Retailers and online booksellers have significantly increased stock levels over previous years to ensure they have sufficient stock for Christmas given the supply chain problems,” said Newton.
“Our first half revenues have therefore been boosted by customers ordering earlier than in previous years.”
But, mindful of potential external challenges, including in the supply chain and increased returns from stock ordered early, Newton and the board said the strength of the performance meant they were confident of achieving market expectations for the full year, where currently the consensus forecast is for revenue of £193.4mln and underlying PBT of £19.3mln.