Upgrades from book publisher Bloomsbury (BMY) helped lift the shares 11.3% to 316p and within sight of the mid-noughties highs it reached at the height of the initial Harry Potter craze.
The company lifted its annual profit and revenue expectations thanks to strong performance in its consumer division amid a surge in reading during the Covid-19 lockdowns.
For the 12 months ending 28 February 2021, revenue was expected to be ahead and profit before tax and highlighted items ‘well ahead’ of market expectations of £161.8 million and £12.1 million, respectively, the company said.
‘This follows continued strong trading in the consumer division, for both adult and children's publishing,’ the company said.
BOOK BESTSELLERS
‘Standout bestsellers in the second half to date include the new titles Eat Better Forever by Hugh Fearnley-Whittingstall, Outlawed, Joe Biden - American Dreamer and Humankind, as well as strong backlist sales of Harry Potter, Sarah J. Maas, Why I'm No Longer Talking to White People About Race, Such A Fun Age and Dishoom,’ it added.
Investec commented: ‘The Covid-19 crisis has provided a clear demonstration of the demand from customers for Bloomsbury’s content, with potential risks more centred around the ability to fulfil this demand through particular distribution channels.
‘The company continues to outperform expectations, and we believe this should focus investor attention on the fundamental value of its content.’
