Bloomsbury Publishing profits drop but revenue rises, dividend lifted

(Sharecast News) - Bloomsbury Publishing reported a drop in full-year profit on Thursday but revenue ticked higher and the Harry Potter publisher lifted its dividend. In the year to 28 February, pre-tax profit fell 22% to £32.5m, even as revenue ticked up 5% to £361m.

Pre-tax profit in the consumer division - which consists of Adult, Young Adult and Children's publishing - fell to £31.4m from £37.8m, while revenue edged up 3% to £256m.

In the non-consumer division, pre-tax profit rose to £11.4m from £9.8m, while revenue was 12% higher at £105m.

Founder and chief executive Nigel Newton said: "The success in the consumer division was based across our portfolio. In the non-consumer division growth has been driven by the acquisition of Rowman & Littlefield, where integration is progressing well. Bloomsbury Digital Resources sales increased 2% to £27m and our ambitious target remains at £41m revenue in 2027/28.

"In recognition of the achievements of this financial year and our confidence that the company is well positioned for further development, the board recommends a final dividend of 11.54 pence which contributes to a full year dividend of 15.43 pence per share, an increase of 5% year on year."

Bloomsbury said trading for 2025/26 is expected to be broadly in line with current consensus expectations for revenue of £349.2m and pre-tax profit of £45.1m.

The company also said on Thursday that group finance director Penny Scott-Bayfield plans to step down to pursue a portfolio career after seven years in the role. The search for her successor has already begun.

At 1115 BST, the shares were down 15% at 556p.

Broker Peel Hunt, which rates the shares at 'buy', said: "There were limited surprises from the results today, following the March trading update. The company benefits from its 'portfolio of portfolios,' and despite the prolonged softness in the academic publishing market, Consumer continued to deliver.

"Upcoming catalysts such as Sarah J. Maas's new book and the Harry Potter TV series could further drive Consumer performance, which we believe are not yet reflected in market expectations. The shares trade on 16x FY26E PE."