The Bookseller.com

2nd December 2008

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Profile upbeat, despite profits fall

11.08.08 Catherine Neilan

Profile Books is upbeat about its prospects, despite recording a 64% decline in operating profit in its latest financial year. The publisher said that without a number one bestseller in the period the results did not match the previous year’s exceptional figures: operating profit fell to £770,000 in the year to end-March 2008, compared with the £2.1m profit recorded a year earlier. Sales also fell, by 17%.

Last year's result was driven by its New Scientist tie-ins, particularly the second title, Why Don't Penguins' Feet Freeze?, as well as the acquisition of Serpent's Tail. But the third in the series, How to Fossilize Your Hamster, failed to repeat the success of the previous two editions, switching to a new format and selling about a third as many as the second book

Profile's turnover fell from £9.1m to £7.6m over the period. But Profile described its profit level, at 10%, as "heartening”, with growth in net assets from £4.1m to £4.9m, and cash from £4.2m to £4.7m.

Andrew Franklin, managing director of Profile, described the overall figures as "very pleasing". He said: "Some years we publish a runaway bestseller and it’s a fabulous bonus when we do, but even without one these results show that we are maintaining our success in what has been a tough trading environment."

Franklin said he was "extremely proud" of the books that had been published under Profile, and its imprint Serpent's Tail, such as Lionel Shriver’s We Need To Talk About Kevin and Jonathan Trigell's Boy A , and was "optimistic about the future”. "Our balance sheet is strong enough to support us even if times continue to grow harder,” he added.

Profile is to return to the Q&A format for its fourth New Scientist tie-in title, Do Polar Bears Get Lonely?, on 9th October.

Publisher Financial Profile Books Serpent's Tail Andrew Franklin Home Catherine Neilan