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Dawson book sales fall

05.12.07 Alison Flood

Sales at Dawson Books, the book supply arm of Dawson Holdings, fell £1.2m to £44.5m in the year to 29th September 2007 following "tough trading conditions". Operating profit was also down over the period to £1.8m from £2m the previous year.

Dawson said profits at its book arm were held back by the implementation of a new IT system in February and of dawsonera, its ebooks platform, in September. The supplier said: "Though these initiatives held profits back in 2007, their successful deployment positions the business to reinforce its UK market leadership status by marketing an integrated print and digital offering and also to enter new overseas markets."

It added that sales levels, set against a backdrop of "tough trading conditions", were "largely maintained", with an "exceptionally strong" start to the year followed by a slowing down in the middle period of its financial year, "though by year end sales had recovered to anticipated levels".

The year saw "significant" renewals in Dawson Books' core UK academic sector, with renewed consortia contracts including the Midlands Universities Academic Libraries, the Scottish Consortium for Academic Book Supply and the Welsh Further Education Purchasing Consortium. The Scottish Parliament and the Scottish Executive also renewed contracts with Dawson Books over the period.

The period also saw Dawson dispose of its "non core" US subsidiary Quality Books, which it said "provided a favourable outcome for Dawson Books and the QB employees".

Overall, underlying turnover at Dawson Holdings over the year rose to £773.3m up from £715.1m the previous period, while underlying pre tax profit was maintained at £9m. Dawson said the rise in turnover was "entirely attributable" to Dawson News.

Commenting on the results, c.e.o. Peter Harris said: "During the year, we have made substantial progress in line with our strategy of restoring the margins in Dawson News and growing our three smaller businesses; progress that is already flowing through to improved profitability and which will underpin future growth.

"In our core newspaper and magazine distribution business, we are building upon our stable, contracted revenue base by efficiency improvements across the branch network and through successful acquisitions. In each of our smaller businesses we have now established a platform for expansion-both organic and through selective, synergistic acquisitions.

"As a group, therefore, we are back on course and in better shape than ever to deliver growth."

Financial Alison Flood Dawson

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