Regulatory announcements

Record first half earnings
Interim dividend increased

Bloomsbury, the leading independent publisher, today announces unaudited results for the six months ended 31 August 2022.

Commenting on the results, Nigel Newton, Chief Executive, said:

“Bloomsbury achieved very strong results in the first half with year-on-year revenue growth of 22% to £122.9 million and profit growth of 23% to £15.9 million. 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, our growth of digital revenues and our global diversification.

Throughout this cost of living crisis, books remain an affordable treat. Reading offers a form of escapism and an ideal – and inexpensive – therapy for dealing with the stresses and strains of day-to-day life.

The success of Bloomsbury Digital Resources (“BDR”) accelerated, with revenue growth of 69% driven by organic and acquired assets. This drove the Non-Consumer division’s revenue growth of 24% and a 54% increase in profit before tax and highlighted items¹ to £7.1 million. Resilient demand saw the Consumer division revenue grow by 21%, achieving a 6% increase in profit before tax and highlighted items¹ to £8.9 million.

Our financial position is strong, with net cash of £41.5 million. This gives us significant opportunities for further acquisitions and investment in organic growth.

In recognition of our performance and in line with our dividend policy, we are announcing a 5% increase in our interim dividend to 1.41 pence per share.

The strong first half performance means that we are confident of achieving the Board’s expectations for the year ending 28 February 2023.* The strength and resilience of Bloomsbury’s strategy and financial position means the Board is confident in its ability to achieve continued success. Bloomsbury plans to invest in further acquisitions and organic growth.”

Financial Highlights

Operational Highlights

Non-Consumer Division

• Non-Consumer revenue growth of 24% to £46.6 million (2021: £37.8 million). Organic revenue growth was 2%
• Non-Consumer profit before taxation and highlighted items¹ increased by 54% to £7.1 million (2021: £4.6 million)
• Academic & Professional revenue growth of 38% to £36.5 million (2021: £26.4 million) and profit before taxation and highlighted items¹ up 85% to £7.3 million (2021: £3.9 million)
• Bloomsbury Digital Resources (“BDR”) revenue growth of 69% to £13.6 million (2021: £8.0 million) and profit of £6.6 million (2021: £2.8 million)
• On track for our new BDR target of 50% organic growth and 30% margin over the next five years
• ABC-CLIO LLC (“ABC-CLIO”) and Red Globe Press (“RGP”) contributed £9.9 million revenue (2021: £1.7 million) to Academic & Professional

Consumer Division

• Strong Consumer revenue growth of 21% to £76.3 million (2021: £62.9 million). Organic revenue growth was 19%
• Consumer profit before taxation and highlighted items¹ increased by 6% to £8.9 million (2021: £8.4 million)
• Adult Trade revenue up 7% to £25.7 million (2021: £23.9 million) and profit before taxation and highlighted items¹ was £0.2 million (2021: £1.3 million)
• Children’s Trade revenue growth of 30% to £50.6 million (2021: £39.0 million) and profit before taxation and highlighted items¹ up 23% to £8.7 million (2021: £7.1 million)
• Sales growth of Sarah J. Maas’ titles of 45%; Harry Potter sales increased by 35% during the 25^th anniversary year
• Head of Zeus Limited (“HoZ”), acquired in June 2021, contributed £4.9 million revenue (2021: £2.7 million) to Adult Trade

Notes

¹ Highlighted items comprise amortisation of acquired intangible assets and legal and other professional costs relating to ongoing and completed acquisitions and restructuring costs.

² Organic revenue for the half year is defined as total revenue of £122.9m (2021: £100.7m) less revenue attributable to the acquisitions of HoZ, RGP and ABC-CLIO.

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The information in this announcement has not been audited or otherwise independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein.  None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this announcement, or its contents, or otherwise arising in connection with this announcement.

Certain statements, statistics and projections in this announcement are or may be forward looking. By their nature, forward‑looking statements involve a number of risks, uncertainties or assumptions that may or may not occur and actual results or events may differ materially from those expressed or implied by the forward-looking statements. Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement. Accordingly, forward-looking statements contained in this announcement regarding past trends or activities should not be taken as representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which are based on the knowledge and information available only at the date of this announcement’s preparation.

The Company does not undertake any obligation to update or keep current the information contained in this announcement, including any forward‑looking statements, or to correct any inaccuracies which may become apparent and any opinions expressed in it are subject to change without notice.

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