Bloomsbury Publishing saw a 16 per cent share price drop following a 22 per cent fall in pre-tax profits despite a revenue increase, as the company confronts challenges in academic publishing and looks to Asia for growth.
Bloomsbury Publishing recently experienced a considerable drop in its share price, plummeting 16 per cent to 547p, marking it as the FTSE 250's poorest performer on Thursday. This downturn followed the company’s announcement of a 22 per cent decrease in pre-tax profits, which fell to £32.5 million for the fiscal year ending 28 February 2023. Despite a 5 per cent increase in overall revenue to £361 million, largely attributed to the acquisition of academic publisher Rowman & Littlefield, market reactions were negative.
The decline in profits was particularly evident in its consumer sector, where figures dropped to £31 million, sharply contrasting with the previous year’s impressive figure of £37.4 million, fuelled by the popularity of titles from authors like Sarah J. Maas. The dependency on a few bestselling authors raises questions regarding the sustainability of Bloomsbury’s financial performance, especially as market analysts express concerns over future earnings without new works from these high-profile names.
The acquisition of Rowman & Littlefield, valued at £65 million, was described as a 'game-changer' by Nigel Newton, Bloomsbury’s founder and chief executive. This strategic move aimed to diversify the company’s portfolio and bolster its presence in the academic publishing market, which has faced significant challenges. Notably, more British universities are grappling with fiscal deficits due to rising National Insurance contributions and a decline in overseas student enrolments resulting from regulatory changes. Concurrently, US institutions are contending with dwindling enrolments, a trend associated with lower birth rates impacting the pool of college-age individuals.
These market pressures have deeply influenced Bloomsbury’s organic revenue, particularly in the academic and professional publishing divisions, which suffered a 10 per cent decline last year. The company is now casting its gaze towards Asia, planning to establish a new office in Singapore later this year. This initiative aims to leverage the continent's burgeoning student population, which the World Bank predicts will account for over 60 per cent of the estimated 600 million higher education students globally by 2040. Newton expressed optimism regarding this focus, asserting it positions Bloomsbury favourably to benefit from both student growth and the ongoing shift towards digital learning.
In the immediate future, Bloomsbury has a series of notable titles set for release, including Sally Smith's crime novel A Case of Life and Limb and Paul Hollywood's baking book, Celebrate: Joyful Baking All Year Round, alongside the paperback release of Gillian Anderson's Want. Despite the recent profit decline, Newton remains confident, highlighting the resilience of demand for Bloomsbury's titles and touting the strength of their long-term growth strategy. He anticipates that the trading figures for the 2026 financial year will align closely with consensus forecasts, projecting a turnover of £349.2 million and pre-tax profits rising to £45.1 million.
As Bloomsbury navigates the currents of a challenging publishing landscape, marked by changing educational environments and shifting consumer preferences, the company's ability to adapt and innovate will be crucial for its continued growth and market relevance.
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Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
7
Notes:
The narrative presents recent financial data for Bloomsbury Publishing, including a 16% drop in share price and a 22% decrease in pre-tax profits to £32.5 million for the fiscal year ending 28 February 2023. This information aligns with Bloomsbury's official announcement dated 31 May 2023, which reported record sales and profits for the same period. ([bloomsbury-ir.co.uk](https://www.bloomsbury-ir.co.uk/media/press_releases/2023/310523?utm_source=openai)) The discrepancy in reported profits (£31.1 million in the official release vs. £32.5 million in the narrative) suggests potential inaccuracies or updates in the data. Additionally, the narrative mentions a 5% increase in overall revenue to £361 million, which does not match the £264.1 million reported in the official release. The presence of these inconsistencies, along with the lack of corroboration from other reputable sources, raises concerns about the freshness and accuracy of the information. The narrative also includes detailed analyses of Bloomsbury's strategic initiatives, such as the acquisition of Rowman & Littlefield and plans to establish an office in Singapore. These elements are not found in the official release, indicating that the narrative may be based on a press release or internal communications. Press releases typically warrant a higher freshness score due to their timely nature, but the lack of external verification and the presence of discrepancies suggest caution. Furthermore, the narrative's publication date is not provided, making it challenging to assess its timeliness. The absence of a clear publication date and the presence of unverified claims contribute to a lower freshness score.
Quotes check
Score:
8
Notes:
The narrative includes direct quotes attributed to Nigel Newton, Bloomsbury’s founder and chief executive, such as describing the acquisition of Rowman & Littlefield as a 'game-changer' and expressing optimism about the company's focus on Asia. A search for these specific quotes yields no exact matches in publicly available sources, suggesting they may be original or exclusive to the narrative. However, the lack of external verification raises questions about their authenticity. The absence of identical quotes in earlier material suggests originality, but the lack of corroboration from other reputable sources warrants caution.
Source reliability
Score:
4
Notes:
The narrative originates from the Daily Mail, a publication known for sensationalist reporting and a history of inaccuracies. The lack of corroboration from other reputable outlets and the presence of discrepancies in reported financial figures further undermine the reliability of the source. The absence of a clear publication date and the presence of unverified claims contribute to a lower reliability score.
Plausability check
Score:
6
Notes:
The narrative presents plausible claims regarding Bloomsbury's financial performance and strategic initiatives, such as the acquisition of Rowman & Littlefield and plans to establish an office in Singapore. However, the discrepancies in reported financial figures and the lack of corroboration from other reputable sources raise questions about the accuracy of these claims. The absence of a clear publication date and the presence of unverified claims contribute to a lower plausibility score.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative presents financial data and strategic initiatives related to Bloomsbury Publishing that are inconsistent with official reports and lack corroboration from reputable sources. The discrepancies in reported profits and revenue, along with the absence of a clear publication date and the presence of unverified claims, raise significant concerns about the accuracy and reliability of the information. Given these issues, the overall assessment is a 'FAIL' with high confidence.
