FTSE struggles for direction ahead of the Budget, Bloomsbury prints record results

“As often transpires, the contents of Rishi Sunak’s battered red briefcase were left looking like Westminster’s worst kept secret as today’s Budget enjoyed more trailers than the latest Marvel film ahead of its announcement,” says AJ Bell Investment Director Russ Mould.

“Certainly the FTSE 100 was in sleepy mood ahead of the Budget announcement and it remains to be seen if the Chancellor can wake investors up by pulling any rabbits out of the hat this lunchtime.

“Speculation that BT is looking to mount a defence against a potential takeover attempt did little for the share price, while elsewhere builders merchant Wickes became the latest firm to warn of possible margin pressures as it faced increased costs.

“Robust results from Microsoft, Google-owner Alphabet and Twitter overnight showed there’s some life in the US big tech growth story yet.”

Bloomsbury Publishing

“For a time publishing firm Bloomsbury was like a magician with only a single trick. To be fair it was a good one, with the Harry Potter series perhaps the biggest single phenomenon in book publishing history.

“However, once the series ended in the late noughties Bloomsbury’s share price and sales went into steady decline.

“After a few years of decent progress, building up a diversified business, the pandemic hit fast forward on Bloomsbury’s return to prominence as people picked up the book reading bug in large numbers.

“Today’s statement represents a continuation of the positive momentum and helps lift the shares to within touching distance of their recent highs and in line with the heights attained during the peak of Pottermania.

“A record first half showing suggests people are sticking with the reading habit. Bloomsbury saw success in its consumer-focused arm, driven by a range of bestsellers across different categories, and its academic publishing division, which has become an increasingly important part of the strategy in recent years as it looks to boost subscription-based revenue.

“Digital sales also form a growing chunk of the overall mix and acquisitions have done some of the lifting too.

“The company seems to have managed supply chain challenges quite effectively to date. Printing books early ahead of its usual peak periods in the run up to Christmas and the start of the academic year in the autumn.”

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