Bloomsbury has increased its dividend after the company reported strong revenue growth due to continued “exceptional performance” of sales of titles by Sarah J. Maas and other authors.
The London Stock Exchange-listed publishing giant recommended a final dividend of 10.99 pence per share, bringing the full-year dividend to 14.69 pence per share, an increase of 25 percent year-on-year.
In its full-year 2024 trading update, the company reported a 30 percent year-on-year increase in revenue to £342.7 million, while pre-tax profits rose 57 percent to £49 million.
For the company, it was “an outstanding year … with exceptional sales resulting in the highest revenue and profit in Bloomsbury’s 37-year history.”
“This dramatic increase is the result of our corporate diversification strategy, which has produced a portfolio of portfolios that combines consumer and academic publications across different formats, territories and subject areas – a robust model that promises long-term success,” said Managing Director Nigel Newton.
“In recognition of this performance and in line with our progressive dividend policy, the Board recommends a final dividend of 10.99 pence per share,” he added.
Consumer revenues rose 49 percent, driven by literary successes, particularly sales of J. Maas’ fantasy novels, which grew 161 percent last year.
Other important factors were authors Katherine Rundell and Samantha Shannon and the continued popularity of JK Rowling’s Harry Potter, 26 years after its first publication.
“Sarah J. Maas is a publishing phenomenon and we are very fortunate to have signed her with her first book 14 years ago,” said Newton.
“Her books have captivated a huge audience, supported by major advertising campaigns from Bloomsbury, which have generated strong word of mouth, particularly through social media channels.”
“The expectations for 2024/25 reflect the exceptional performance in 2023/24 and that we do not expect to publish a new title by Sarah J. Maas in the year ending February 28, 2025,” Newton said, sending shares falling more than eight percent on Thursday.
“When Bloomsbury says there will be no new Sarah J. Maas title in the current financial year, investors are understandably concerned,” said Russ Mould, investment director at AJ Bell.
“Bloomsbury can talk all it wants about having a wide range of authors and activities to strengthen its educational arm, but the market expects the star authors to keep bringing out new titles,” he added.
Bloomsbury’s revenue from digital resources rose two percent to £26.6 million and the company said it remained on track to meet its revenue target of around £37 million in 2027-2028.
Trading profit for the year ending February 2025 is expected to be slightly above current consensus expectations of revenue of £283.6m and profit before tax and highlighted items of £35.4m.
Bloomsbury also announced that its chairman, Sir Richard Lambert, who led the company for seven years, intends to step down from his position and resign as a director of the company following the annual general meeting on 16 July 2024.
John Bason, currently an independent non-executive director, is set to replace Lambert as chairman.
