Interim Management Statement

RNS Number : 5985U

Bloomsbury Publishing PLC

16 May 2008

 



Bloomsbury Publishing Plc

Interim Management Statement

Bloomsbury Publishing Plc is issuing its first Interim Management Statement for 2008 as required by the UK Listing Authority's Disclosure and Transparency Rules in respect of the period from 1st January 2008 to date.

Financial Performance

Group operating performance for the period has been encouraging and is in line with management's expectations with no material events or transactions affecting the Group.

Specialist Publishing Division

The Specialist Publishing Division continues to perform to management's expectations. On 31 March we acquired Featherstone Education Limited for a net cash consideration of £1.0m. Featherstone is a publisher of educational materials for teachers and parents to use with children of up to seven years of age. This is a rapidly expanding market which is responding to the government's increased emphasis on, and funding for this sector. Sales are likely to be boosted by schools' implementation of the new 'Early Years Foundation Stage' in September 2008. Education is core to the Specialist Publishing Division and this acquisition extends our reach to the under seven age group, and to a wider range of customers. Featherstone has a highly effective direct mail system which will be of considerable benefit in increasing our direct sales to customers for educational and children's products. 

Trade Publishing Division

In the UK there have been continued strong performances from a number of titles such as The Kite Runner and A Thousand Splendid Suns by Khaled Hosseini. 

Bloomsbury USA continues to operate in a difficult market and we are managing the cost base to enable it to operate efficiently. The new imprint, Bloomsbury Press, has made a good start, led by the publication of Brian Fagan's The Great Warming: Climate Change and the Rise and Fall of Civilizations.

Our German operation Berlin Verlag continues to build on previous years' successes. Die Wohlgesinnten by Jonathan Littell was published in late February and is one of Berlin's major books in the first quarter. Sales for this title are strong and we are getting excellent press and media coverage. Berlin's paperback list is performing well with continued success from 1000 Strahlende Sonnen (A Thousand Splendid Suns) and Drachenläufer (The Kite Runner).

Financial Position

As a result of a tougher book acquisition policy, the cost control programme in progress across the Group and lower than expected returns for credit of unsold books, cash flow has been stronger than expected. 

Outlook for 2008

The Group continues to make progress in all areas. The measures that we are taking to reduce costs are already delivering positive results. Company acquisitions are very much at the forefront of the Group's growth strategy. We have a very strong balance sheet which puts us in a good position to take advantage of opportunities as they arise.

ENDS

For further information, please contact:

Bloomsbury Publishing Plc  

Nigel Newton, Chief Executive                                              Tel: [phone]

Bell Pottinger Corporate & Financial

Rosanne Perry                                                                      Tel: [phone]

 

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