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(Sharecast News) - Shares in Bloomsbury Publishing fell on Thursday, despite the Harry Potter publisher reiterating full-year guidance, after interim sales and profits fell sharply.
The London-listed business, which is also home to popular fantasy author Sarah J Maas, saw revenues fall in the six months to 31 August to £151.6m from £159.5m a year earlier. The margin narrowed nearly four percentage points to 11.1%, while adjusted profits fell to £16.8m from £24m.
Revenues in the specialist academic and professional division sparked 5.9% to £48.8m, with the unit showing "encouraging signs of recovery", Bloomsbury noted. But revenues in consumer fell to £102.8m from £113.4m.
Bloomsbury, which is currently undergoing a restructuring, said growth in its largest division was weighted to the second half, which had already got off to a "strong" start. It also confirmed it was on track to deliver full-year numbers in line with consensus, for adjusted profits of £49.9m on revenues of £354.3m.
Founder Nigel Newton, who became executive chair last month as part of a five-year leadership succession plan, said: "The board looks to the current year with confidence in delivering record results in 2026/27, in line with expectations."
He added that the first steps had been taken to "simplify and streamline our structure" since the restructuring was first announced in April. "This has enhanced agility, accountability and positions the company for continued expansion."
However, that did not stop the shares underperforming, and by 1030 BST, the stock had shed 4% at 645p.
Berenberg, which has a 'buy' rating on the stock, said: "The results imply a large second-half weighting, as we expected. However, the release schedule in consumer supports consensus. In fact, as we have flagged previously, we think that there is upside to consensus forecasts given Maas's two new releases in her ACOTAR [A Court of Thorns and Roses] series...and the release of the Harry Potter HBO series of Christmas Day."
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