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Profit and turnover revive at CGP

17.07.08 Caroline Horn

Study guides publisher Coordination Group Publications has made a dramatic comeback following a disappointing performance in 2006. CGP's post-tax profits topped £1.8m for the year to end–August 2007, up from £116,978 the previous year. Turnover increased by 7.2% to £14.9m, which CGP attributed to its strategy to extend the depth of GCSE revision guide ranges it offers. It said the improvement in profits was down to improved operating margins and a reduction in payroll costs.

M.d. Graham Servanté said the turnaround was the result of better performances from staff, and a reduced need for investments in 2007. "We had a big year of investment in 2006, including our move into the textbook market in the US, and big changes to the curricula in the UK in science and maths—our major markets." The two changes "were badly managed by us", said Servanté, "but those mistakes are now behind us".

While US sales are not included in the figures, Servanté said that CGP's textbooks were being adopted by a number of districts in the US. "We see the US textbook project as a success and we are looking at what we can do next. This is our first US venture and it has shown us that we can produce quality textbooks that people want." A textbook programme for the UK market is "under consideration", he added.

CGP acknowledged that increased competition in the revision guide market would "continue to be a major challenge", but said that its continued investment in extending its product range, and recruiting further "top quality people", would enable it to improve its "already strong" market position.

The period to end–August 2007 saw CGP cut employees back to 136 from 151 the previous year, but Servanté said staff levels were now up to 165. "We are growing as fast as we can sensibly." He expects the company to achieve some growth in the current year, and to maintain its level of
profitability.

Nielsen BookScan figures show that CGP grew its share of the school textbooks market by 4% to 18% in 2007 compared to 2006. Market leader Letts Educational had 23.4% of the market in 2007.

Financial Caroline Horn education children's CGP

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