Publishing Technology the AIM listed provider of content systems, audience development and content delivery software and services to international publishers, information providers and academic institutions, announces its audited results for the year ended 31 December 2012.
• Gross revenues up 9% to £16.3m (£14.9m 2011)
• EBITDA up 117% to £1.1m (£0.5m 2011)
• Gross profit up 2% to £5.9m (£5.8m 2011)
• Pre-tax profit of £0.3m (loss of £0.2m 2011)
• Earnings per share of 6.16p (0.84p 2011)
• £0.5m of net cash from operating activities (£nil m 2011)
• Global deal with HarperCollins to implement advanceProduct Manager, unifying editorial, marketing and business data around the world.
• Order to Cash, the final module in the advancesuite of products, is being installed at two major global publishers.
• One major implementation of pub2web went live in December 2012 and two more are due to go live early in 2013.
• 15 new publishers on ingentaconnect.
• Launch of Full Service Representation service selling the Churchill Archive and Drama Online for Bloomsbury Publishing.
• China: business licence received and launch of Chinese National Publishing Import Export Corporation (CNPIEC) partnership which includes the largest digital e-books gateway for Chinese researchers.
George Lossius, Chief Executive of Publishing Technology, commented:
"The company performed well this year, making inroads into new markets, signing high profile deals with some of the world's largest publishers and solidifying our position as the market leading content solutions provider in both trade and academic publishing. We've worked hard to build up our market position and brand, grow and improve our products and services and seek out new opportunities and partnerships across the globe. As the digitisation of publishing reaches critical mass, we are in a good position to build on our momentum."
Chief Executive's review
The publishing industry is changing and 2012 may well be seen as the beginning of a new era.
Publishers should be braced for change by investing in strong and efficient systems which will become an ever-more necessary foundation for secure and successful trading in an unpredictable globalised market place.
A changing environment is a good source of growth and revenue for Publishing Technology. The Company’s challenge is to be in the right position, with the right people, the right products and the right attitude to satisfy the obvious needs as change takes place. The Group has made progress towards this in 2012.
In PCG, the new full service representation (FSR) contracts began with the Churchill Archive in July and it has outsold expectations.
ingentaconnect continued to sell to new publishers and maintained high renewal rates over year end.
For pub2web, 2012 was a year of implementing the deals won at the end of 2011. One of these, the Institution of Engineering and Technology (IET) went live at the end of 2012 with the other sites due to go live early in 2013.
The recurring revenue stream from these implementations will elevate pub2web from the investment phase of its life cycle to the returns phase.
advance also had a good year with the go live of what is believed to be the largest royalties system anywhere in the world at McGraw Hill. The start up issues that dogged the company in 2011 are believed to have been ironed out now.
Towards the end of 2012 the Company announced a major international deal with HarperCollins to create their Global Product Manager system which will help transform advance in the same way as pub2web is changing, moving from investment to positive contribution.
Vista had a strong year, beating targets and challenging the theory that it was declining. It is clear Vista has a number of years of profitability ahead and it remains a major revenue and profit generator for the Group, allowing the continued investment in development and market creation for advance and pub2web.
Outlook for Publishing Technology
The Company’s strategy is to maintain the profitability of the mature products and services and build the profitability of their new products and services.
pub2web is set for a transformational year in 2013 with several large sites going live and beginning to generate recurring revenue.
advance will have a significant presence after the go-live of McGraw Hill and the other two major implementations currently in progress and with the HarperCollins deal now on-going, the future for advance looks to be secure.
Overall the industry continues to evolve and Publishing Technology is well positioned to continue to take a lead in the future of publishing.
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