Bloomsbury magic without Potter

DESPITE the lack of a new Harry Potter title this year (and no word yet as to when it will appear), publisher Bloomsbury looks on course to have another strong year with a second-half publishing list that is virtually guaranteed to produce a string of best-sellers.

Already heading to the top of the lists this month is the first novel from Susanna Clarke, Jonathan Strange and Mr Norrell.

Next month sees the keenly-awaited The Two of Us, the memoirs of Sheila Hancock and her life with John Thaw now being serialised in the Daily Mail.

Also, the third version of Schott's Miscellany on Sporting and Gaming will surely be destined for many a Christmas stocking.

Chief executive Nigel Newton said the group's moves into the US and Germany are already reaping rewards. By retaining rights in these countries, he said, the margins can be up to four times greater than from simply licensing them to other publishers.

Jonathan Strange is the number three best-seller in New York and number one in San Francisco - the first time any Bloomsbury novel has gone so high in either chart. Schott's Original Miscellany is number nine in Germany.

The paperback edition of JK Rowling's fifth Harry Potter novel about the young wizard, which was launched in July, is already the best-selling children's book of the year in Britain.

Profits before tax and goodwill amortisation rose 4.5% to £3.72m in the six months to the end of June on the back of sales up by 6.7% at £29m. The dividend rises 10% to 0.522p.

With net cash up 11% to £31.7m, some analysts had been hoping Bloomsbury might announce a return of cash to shareholders through a share buyback.

But Newton said: 'We have a number of interesting opportunities on the acquisition front which could take some of that cash.'

In a sign of its growing maturity, the publisher announced corporate governance changes today.

The main Bloomsbury board is halved from 12 to six and Newton has agreed to give up his three-year contract for a 12-month rolling contract.

The shares rose 1 1/2p to 249p. Over the next few months Bloomsbury will expand its children's book division, increasing its editorial, design and marketing staff both here and in the US.