Bloomsbury Publishing Plc

1
Bloomsbury Publishing Plc
Interim ResultsSix months to 30 June 2005
2
Highlights

• Strong titles
• Harry Potter continues to be biggest selling
  series of books in the world
• Successful return on investment in new authors
• Justin Cartwright - The Promise of Happiness
• Sheila Hancock - The Two of Us
• Gabrielle Zevin - Elsewhere
• International expansion
• - Berlin coming on line as a profit centre
• - US operation integration almost complete for
  next phase of growth
• Well positioned for further growth

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2005 Interim Financial Highlights

• Revenue increased by 14.3 to 35.37m
  (2004, 30.94m)
• Pre-tax profit before exceptional gain increased
  by 12.4 to 4.08m (2004, 3.63m)
• Basic earnings per share before exceptional gain
  increased by 9.0 to 3.99 pence (2004, 3.66
  pence)
• Dividend increased by 15.0 to 0.60 pence (2004,
  0.52 pence)
• Note Prepared under IFRS

4
Revenue
Gross Profit
35.37m
17.58m
30.94m
14.05m
14.3
25.1
5
Operating Profit
Pre-tax Profit
4.08m
3.63m
3.44m
3.08m
11.7
12.4
The figures are stated before exceptional gain.
6
Financial SummaryConsolidated Balance Sheet
December
June
2004
2005
m
m
50.9
Stocks
21.6
Debtors
Cash
-16.7
39.1
Creditors
3.3
Shareholders funds
Cash on deposit is net of 0.353m (2004,
0.445m) loan notes.
7
Cash Flow
June
June
8
Childrens Division

• Harry Potter and the Half-Blood Prince sells over
  2 million copies on day 1
• Biggest first day sales in publishing history
• Ongoing sales still strong
• Sales of previous books increased
• Film of Goblet of Fire to be released in November
• Christmas season

9
Childrens Division

• Childrens series proving very popular
• Magyk
• The Fang Gang
• Digory the Dragon Slayer
• Sales of backlist stimulated by new publications
  in the series
• Second half
• Alexander McCall Smith backlist
• Alfred Kropp
• Elsewhere

10
Adult Division

• Successful return on investment in authors
• Khaled Hosseini, The Kite Runner
• Justin Cartwright, The Promise of Happiness
• Continue to attract established authors
• Richard Ford
• Douglas Coupland
• High profile publishing director moving to
  Bloomsbury
• Develop revenue stream for non-fiction
• Author migration
• Gravitas to non-fiction list

11
Adult Division

• Second half
• Paperback
• The Two of Us
• Jonathan Strange Mr Norrell
• Hardback
• John Irving Until I find you
• Schotts Almanac
• Peter Prince - Adam Runaway
• Anna Pavord - The Naming of Names

12
Reference Division

• Group integration completed in first half
• Will enable greater marketing focus
• Expanded publishing program 2006 2008
• Greater access to niche markets
• Maximising backlist revenues

13
Reference Division

• Second half
• Whitakers revenues continue to grow
• Whitakers World of Facts
• 320 pages and 500 illustrations
• Sunday Times Rich List
• Book and CD
• Reeds Nautical Almanac
• Everything a girl needs to know about football

14
International Expansion Bloomsbury USA / Walker

• Scale and visibility established
• Turnover H2 weighted
• Walker integration close to completion
• Both childrens and adult divisions working
  closely together
• New distribution operating well

15
International Expansion Bloomsbury USA / Walker

• Continued success from exploiting world rights
• Strong second half
• Paperback
• The Line of Beauty
• Jonathan Strange Mr Norrell
• Hardback
• Schotts Sporting Gaming and Idling Miscellany
• Thieves of Baghdad

16
International Expansion Berlin Verlag

• Bloomsburys English language books now being
  sold by Berlins sales force
• Books distributed direct from German distributor
• Greater market penetration
• Harry Potter sales of The Half-Blood Prince
  considerably exceeded previous editions
• Bloomsbury Berlin list launched in September 2004
  continues to grow
• Childrens list continues to grow

17
International Expansion Berlin Verlag

• New management implementing additional cost
  saving schemes such as print contracts to improve
  margins
• New distributor operating well
• Lower distribution charges
• Berlin Verlag expected to reach profitability in
  second half

18
Summary and Outlook

• Well positioned for strong second half
• Excellent paperback list for the autumn
• Harry Potter continuing to sell through in the UK
  and export markets
• Childrens fiction has longevity

19
Summary and Outlook

• Continued success from exploiting world rights
• Strong balance sheet to enable continued organic
  and acquisition growth
• Satisfactory outlook to year Profit Before Tax
  of not less than 20m
• Prospects into 2006 and beyond are strong
  expansion of publishing list and international
  development