TIDMBMY
RNS Number : 5903C
Bloomsbury Publishing PLC
18 June 2019
18 June 2019
Annual Financial Report
Bloomsbury Publishing Plc (the "Company")
The Company released its Preliminary Announcement of annual
results for the year ended 28 February 2019 on 21 May 2019. Further
to the Preliminary Announcement, the Company can confirm that the
Annual Report for the year ended 28 February 2019 ("2019 Annual
Report") and the Notice of Annual General Meeting ("Notice of AGM")
is now being mailed to Shareholders. The 2019 Annual Report and the
Notice of AGM are also available on the Company's website at
www.bloomsbury-ir.co.uk.
AGM
The Company's Annual General Meeting will be held on Wednesday
17 July 2019 at 12.00 noon at 50 Bedford Square, London WC1B 3DP.
Shareholders are recommended to vote online at
www.signalshares.com.
National Storage Mechanism
Pursuant to Listing Rule 9.6.1, the 2019 Annual Report and the
Notice of AGM have been submitted to the National Storage Mechanism
and will shortly be available for inspection at
http://www.morningstar.co.uk/uk/NSM.
Additional Information
In accordance with Disclosure Guidance and Transparency Rule
6.3.5(2)(b), additional information is set out in the appendices to
this announcement. The directors' responsibility statement, a
description of the principal risks and uncertainties and details of
related party transactions are set out below in full unedited text
extracted from the 2019 Annual Report. The text below should be
read in conjunction with the Company's final results for the period
ended 28 February 2019 which were announced in unedited full text
on 21 May 2019. This information is not a substitute for reading
the 2019 Annual Report.
Enquiries:
Maya Abu-Deeb
Group General Counsel & Company Secretary
Bloomsbury Publishing Plc
Telephone +44(0)20 7631 5627
APPIX 1: Directors' Responsibilities Statement
The following directors' responsibility statement is extracted
from the 2019 Annual Report (page 46)
Statement of Directors' responsibilities
The Directors are responsible for preparing the Annual Report
and the Group and parent Company financial statements in accordance
with applicable law and regulations.
Company law requires the Directors to prepare Group and parent
Company financial statements for each financial year. Under that
law they are required to prepare the Group financial statements in
accordance with International Financial Reporting Standards as
adopted by the European Union ("IFRSs as adopted by the EU") and
applicable law and have elected to prepare the parent Company
financial statements on the same basis.
Under Company Law, the Directors must not approve the financial
statements unless they are satisfied that they give a true and fair
view of the state of affairs of the Group and parent Company and of
their profit or loss for that period. In preparing each of the
Group and parent Company financial statements, the Directors are
required to:
-- select suitable accounting policies and then apply them consistently;
-- make judgements and estimates that are reasonable, relevant and reliable;
-- state whether they have been prepared in accordance with IFRSs as adopted by the EU;
-- assess the Group and parent Company's ability to continue as
a going concern, disclosing, as applicable, matters related to
going concern; and
-- use the going concern basis of accounting unless they either
intend to liquidate the Group or the parent Company or to cease
operations, or have no realistic alternative but to do so.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the parent
Company's transactions and disclose with reasonable accuracy at any
time the financial position of the parent Company and enable them
to ensure that its financial statements comply with the Companies
Act 2006. They are responsible for such internal control as they
determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to
fraud or error, and have general responsibility for taking such
steps as are reasonably open to them to safeguard the assets of the
Group and to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also
responsible for preparing a Strategic Report, Directors' Report,
Directors' Remuneration Report and Corporate Governance Statement
that complies with that law and those regulations. The Directors
are responsible for the maintenance and integrity of the corporate
and financial information included on the Company's website,
www.bloomsbury-ir.co.uk. Legislation in the United Kingdom ("UK")
governing the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
Safe harbour
Under the Companies Act 2006, a safe harbour limits the
liability of Directors in respect of statements in and omissions
from the Strategic Report and the Directors' Report. Pages 1 to 145
of the Annual Report, and the front and back covers to the Annual
Report, are included within the Directors' Report by reference and
so are included within the safe harbour.
Responsibility statement of the Directors in respect of the
annual financial report
We confirm that to the best of our knowledge:
-- the financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view
of the assets, liabilities, financial position and profit or loss
of the Company and the undertakings included in the consolidation
taken as a whole; and
-- the Strategic Report includes a fair review of the
development and performance of the business and the position of the
issuer and the undertakings included in the consolidation taken as
a whole, together with a description of the principal risks and
uncertainties that they face.
We consider the Annual Report and Accounts, taken as a whole, is
fair, balanced and understandable and provides the information
necessary for Shareholders to assess the Group's position and
performance, business model and strategy.
Legislation in the UK governing the preparation and
dissemination of financial statements may differ from legislation
in other jurisdictions.
The Strategic Report and Directors' Report were approved by the
Board on 21 May 2019.
APPIX 2: Principal Risks and Uncertainties
The following description of the principal risks and
uncertainties that the Company faces is extracted from the 2019
Annual Report (pages 26 to 29)
Principal Risks
The table below provides a description of risk factors that
management considers relevant to the Group's business. Other
factors besides those listed could also affect the Group.
During the financial year ended 28 February 2019, the Principal
Risks have not changed substantially, save that the volatility of
paper material costs and Brexit have been added as Principal
Risks.
Key area Risk Description Mitigation
1. Market Volatility Sales of books to Develop special interest,
of consumer the consumer market academic and professional
book sales can be seasonal publishing where revenues
and volatile. are less volatile.
Develop other revenue
streams, including
from rights and services,
increasing the scope
to enter annually renewing
agreements.
-------------------- --------------------------- --------------------------------
Increased Readers might not Grow expert marketing
dependence discover, and so teams skilled in internet
on buy, Bloomsbury's sales.
internet print and e-books Engage with multiple
retailing sold through internet internet retailers.
retailers who may Increase focus on developing
control discoverability. other marketing opportunities
and other revenue streams,
e.g. Academic & Professional
digital products, rights
and services.
-------------------- --------------------------- --------------------------------
2. Rights Dependence The timing for completing Increase the number
and services on timing high margin rights of rights and services
of closing and services deals deals to reduce the
rights and can depend on the dependency on individual
services performance by multiple deals.
deals parties including
the main customer.
-------------------- --------------------------- --------------------------------
Generating The pipeline of Increase the portfolio
new/ new products and of products and agreements
non-renewal agreements might to grow income and
of be uneven. reduce the dependency
subscription A customer or partner on individual agreements.
and might not renew Senior managers are
services larger agreements responsible for ensuring
agreements that generate significant strong performance
ongoing income. by Bloomsbury of its
obligations and strong
customer care.
-------------------- --------------------------- --------------------------------
Entrepreneurial A deal may require Similar to ordinary
risk upfront staff time publishing risks: increase
and costs but fail the portfolio of deals
to close, resulting to leverage economies
in lost investment. of scale and reduce
volatility.
-------------------- --------------------------- --------------------------------
3. Financial Judgemental Significant assets Consistent and evidence-based
valuations valuation and provisions in approach to assumptions.
of assets the balance sheet Board approval of key
and provisions depend on judgemental assumptions.
assumptions, e.g. Rigorous audit of valuations.
goodwill, advances,
intangible rights,
inventory and returns
provisions.
-------------------- --------------------------- --------------------------------
4. Information Productivity Continuing to improve Board level representation
and of IT systems staff efficiency on steering IT strategy,
technology and data depends on the IT implementation and
systems systems and data IT operations.
keeping pace with
the needs of the
business.
-------------------- --------------------------- --------------------------------
Cybersecurity Unauthorised access Clear responsibility
could be made to for systems, increasing
Bloomsbury's systems use of the cloud, monitoring
to perpetrate a security risks, internal
fraud or cause damage. control reviews of
the systems and up-to-date
anti-virus software
are amongst the measures
in place.
-------------------- --------------------------- --------------------------------
5. Growth Digital development Unforeseen hold-ups Develop high-quality
of digital may delay development online content services
of new online content in markets we understand
services and revenue well.
for the services Standardise the digital
may not grow in delivery platform to
line with our stretching simplify and speed
targets. up the development
and implementation
of new online content
services.
-------------------- --------------------------- --------------------------------
Development Consumer e-book Continue to supply
of the prices may not hold books in all formats
digital book up in the longer through multiple digital
market term. Possible emergence delivery systems aligned
of not yet known with the demands of
reading technology. readers.
Ensure the Group is
positioned to take
advantage of e-book
and audio book (or
any new format) growth
in international markets.
Use social media and
other digital marketing
to encourage direct
sales to consumers.
Develop Non-Consumer
offering where revenues
are less volatile and
there is a direct relationship
with the customers.
-------------------- --------------------------- --------------------------------
Rise of alternative US readers may license Develop digital platforms
book supply books from retailers to deliver, on a subscription
arrangements for a limited period basis, the content
at a lower cost that readers demand.
to buying books,
with no revenues
or royalty paid
to the publisher.
-------------------- --------------------------- --------------------------------
6. Title High advances Agents seek high Publish more special
acquisition sought by advances for some interest trade books.
agents authors.
-------------------- --------------------------- --------------------------------
World rights Agents prefer to Focus acquisition on
not split territorial titles where world
acquired rights for English English rights are
language publishing available.
between US and UK. Concentrate on academic
publishing where world
rights are the norm.
-------------------- --------------------------- --------------------------------
7. Reputation Product and Errors in books Careful selection and
service and digital content. rigorous review of
quality titles by broad teams
of experienced publishers,
and planning of the
title pipeline to focus
on publishing strengths.
Rigorous production
procedures and planning
of titles and digital
resource content.
-------------------- --------------------------- --------------------------------
Information Being hacked and Security awareness
security theft of intellectual in teams and additional
property, e.g. key security measures to
illustrations before protect high value
publication. assets and data.
-------------------- --------------------------- --------------------------------
Investor City confidence Diversify the portfolio
confidence undermined by events of products and services
outside of Bloomsbury's to reduce dependencies
control, e.g. collapse on individual customers,
of a retailer. sales channels and
markets.
-------------------- --------------------------- --------------------------------
8. IP and Erosion of Erosion of traditional Continue policy of
copyright copyright copyrights. support for copyright
Erosion of territorial and intellectual property
copyrights as a rights as a fundamental
result of global facet of publishing.
internet retailing. Continue to police
Open access. infringements of the
Group's territorial
copyrights and take
appropriate action
to enforce such rights.
Develop digital services
that deliver mixed
open access and proprietary
content in the form
that customers demand
and will continue to
pay for.
-------------------- --------------------------- --------------------------------
Piracy Piracy of titles Adopt robust anti-piracy
in print or digital policies.
form. Ensure good digital
rights management protection
of e-books and digital
formats.
Participate in key
industry anti-piracy
initiatives.
-------------------- --------------------------- --------------------------------
9. Overseas Overseas Growing offices One Global Bloomsbury
operations offices in the US, India structure of global
and Australia may publishing divisions
increase the operational supported by Group
risks and demands functions provides
on management. an effective internal
control framework and
oversight of the overseas
offices. Keep under
review the management
resources deployed
within this structure
as the business evolves.
-------------------- --------------------------- --------------------------------
10. Volatility Increased A contracting print Provision for production
of paper production market and increases variances are factored
material costs to the costs of into the Group's budget
costs paper around the at the beginning of
world due to various each fiscal year.
factors including The Group's contracts
increased regulation with its printers typically
may result in higher fix prices for printing
production costs work for a period of
for the Group. See time, and include provisions
also below for the to control the extent
potential impact to which increases
of Brexit on the in the costs of paper
costs of paper materials. may be passed on to
the Group.
-------------------- --------------------------- --------------------------------
11. Brexit Impact on Falls in the value The Group's contracts
the cost of sterling may with its printers typically
of result in increased fix prices for printing
paper materials production costs work for a period of
due to increases time, and include provisions
in the costs of to control the extent
paper sourced by to which increases
the in the costs of paper
Group's printers. may be passed on to
the Group. Production
costs are paid by the
Group in a mix of local
and foreign currencies
and falls in sterling
will not impact on
all production costs
-------------------- --------------------------- --------------------------------
Impact on Disruptions to the Measures to mitigate
supply supply chain may the risk of disruption
chains and impact on sales to supply chains include
ensuring if the delivery building in additional
delays in of product is delayed. time to production
delivering Logistics costs schedules and placing
product to may increase as orders for additional
market a result of measures paper supplies with
taken to counter Bloomsbury's printers.
delays and as a
result of increased
complexities surrounding
the movement of
goods across the
UK/EU border.
-------------------- --------------------------- --------------------------------
APPIX 3: Related Party Transactions
The following details of 'Related party transactions' are shown
in note 27 to the consolidated financial statements on page 127 of
the 2019 Annual Report.
27. Related party transactions
The Group has no related party transactions other than key
management remuneration as disclosed in note 5.
The following detail on staff costs is extracted from note 5
(pages 105 to 106).
5. Staff costs
The Group considers key management personnel as defined under
IAS 24 "Related Party Disclosures" to be the Directors of the
Company, this includes Non-Executive Directors, and those Directors
of the global divisions, major geographic regions and departments
who are actively involved in strategic decision-making.
Total emoluments for Executive Directors and other key
management personnel were:
Year ended Year ended
28 February 29 February
2019 2018
GBP'000 GBP'000
Short-term employee
benefits 4,022 3,567
Post-employment benefits 209 219
Share-based payment
charge 410 128
Total 4,641 3,914
The following detail on related parties is extracted from note
47 (page 143)
47. Related parties
Trading transactions
During the year the Company entered into the following
transactions and had the following balances with its
subsidiaries:
28 February 28 February
2019 2018
GBP'000 GBP'000
Sale of goods to subsidiaries 8,553 10,759
Management recharges 9,667 9,843
Commission payable to subsidiaries (5) -
Finance income from subsidiaries 77 232
Amounts owed by subsidiaries
at year end 12,209 10,045
Amounts owed to subsidiaries
at year end 46,890 45,583
All amounts outstanding are unsecured and will be settled in
cash. No provisions have been made for doubtful debts in respect of
the amounts owed by subsidiaries.
Key management remuneration is disclosed in note 5.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACSLIFLDRDITLIA
(END) Dow Jones Newswires
June 18, 2019 03:21 ET (07:21 GMT)
Bloomsbury Publishing (LSE:BMY)
Historical Stock Chart
From Apr 2024 to May 2024
Bloomsbury Publishing (LSE:BMY)
Historical Stock Chart
From May 2023 to May 2024