Losses in the book publishing side of the firm has led to a fall in profits at a Scottish publisher, with significant levels of debt and a fall in other sales also contributing.
According to Dundee-based DC Thomson, group revenue has fallen from £272 million in March 2012, to £252 million in the last reported financial results. This has led to a drop in profits of over £7 million, from £31.1 million to £23.7 million.
The valuation of the group has subsequently been written down to £37 million, from its earlier level of £62 million.
The major issue for the group in the year has been its book sales, which has been particularly affected by competitors selling low priced stocks. Falling trade across Australia in particular has also had a detrimental effect.
Sales in Europe have also been hit, whilst the firm famous for the Beano has said its European customers are responsible for:
“significant bad debts”
It is a picture which resonates clearly with a number of firms in Scotland. Glasgow factoring brokers are helping many consolidate though; helping companies to better manage their cash flow amid late invoice payment.
DC Thomson has also been affected by falling turnover with its periodical publishing too, from £127 million to £122 million. Revenue has largely been sustained though, with price increases offsetting to fall in demand for printed media.
An aggressive diversification process is under way at the firm, as it moves away from its traditional core business. It wants to be the largest database for ancestry searches in the UK and the US for example.