The four acquisitions made since flotation in May 1998 have all been successfully integrated into our business and together with good organic growth from existing product lines, have contributed to the strong results for the year. 2000 was a period of completing the bedding down of the previous years’ acquisitions and integrating the International Journals Division of Scandinavian University Press (ScUP). During this year we have consolidated our position in our core markets and established a solid foundation and organisational structure in preparation for future growth. We have a well established structure which encourages creativity in journal and books publishing, supported by centralised services. This structure has been instrumental in the smooth integration of the acquired businesses and increases to their profitability.
The strategy to grow the business organically and through well planned earnings enhancing acquisitions has helped to increase turnover, operating profit and earnings per share. Consolidation in the global S(TM) market continued throughout 2000 and Taylor & Francis remains well positioned to participate in the outstanding opportunities this provides.
Central to the strategy of developing the Group’s e-business has been the use of technology partners and the positioning of our operations to exploit new technology. The main objective is to maximise the potential of our intellectual property rights whilst retaining control of them. All of these initiatives were achieved at minimal cost and should benefit the business in terms of enhanced revenue streams, market intelligence and publicity. Our response to technological developments remains flexible and cost effective and we will continue to cooperate with technology partners where we see suitable opportunities. Examples of the success of this approach are highlighted below.
In July 2000 the Group announced an arrangement with Versaware Inc, to digitise and make available in e-book formats the Group’s entire back list of 17,000 book titles. This initiative will enable the Group to take advantage of the development of new electronic publishing platforms whilst maintaining control of its content. To date over 3,500 backlist book titles have been digitised, with the balance to be completed during 2001, and we expect to generate revenues beginning from June 2001.
Allied to the Versaware initiative, the Group reached an agreement with ebrary to enable selected extracts of the Group’s books, including individual chapters, paragraphs or lines, to be sold on a pay per view basis, at rates which are set and controlled by the Group. This is another potential incremental revenue stream to Taylor & Francis in future years if and when the market responds. The project is in its very early stages and should be on line from September 2001. The service allows ebrary users the ability to view Taylor & Francis books and then pay to print or copy pages or sections, with automatic citations.
The Group has recently signed an agreement with NetLibrary to provide selected e-books to libraries. This is a tangible example of the potential income streams that can be generated by the application of the Versaware arrangement and the sale of e-books, with some revenue already being generated. During the last few months the Group has reached agreements around the world with major book retailers to sell our e-books. We continue to develop this new channel.
The Scholarly Article Research Alerting (SARA) online service to journal subscribers continues to be popular with academics and generate considerable interest, with over 140,000 subscriptions now registered, an increase of more than 100,000 since its relaunch in January 2000. This project has been beneficial in promoting Taylor & Francis and its products as well as providing a valuable and cost effective service to existing and potential journal subscribers.
During the year the Group successfully launched 25 subject specific ‘Arena’ internet portals which are now operational and have attracted considerable praise from users. These Arenas are continually being developed and should prove to be a valuable resource and marketing tool for the future.
CrossRef, which was launched by the principal academic publishers around the world to provide active links between research papers, continues to be an important initiative.
Commenting on the Group’s performance and prospects, Chief Executive Anthony Selvey said:
These results reflect strong underlying growth and a solid contribution from previous acquisitions. Journals maintained their good organic growth as expected and our books division had a stronger second half due to the increased publishing activity associated with the academic adoption season.
Our strategy remains to grow the business through well planned organic development and to take advantage of the fragmented nature of the scientific and academic publishing market to acquire companies such as Gordon & Breach, in markets we know and understand. The current year has started well and in line with our expectations. Strong journal renewals and good book sales coupled with ongoing efficiencies lead us to believe that 2001 will be another successful year.
