Publisher DC Thomson pays £41m to exit book sector

Scotland's largest publishing company, DC Thomson, has reported a high cost from exiting the books sector despite a rise in profits.

Closure of its Bath-based Parragon imprint, including operations in the US and Australia, cost the firm £41m.

The Dundee-based owner of titles including The Courier and The Beano reported a revenue rise from £201.5m to £207.3m, in the year to March.

Companies House accounts showed pre-tax profits also up from £54m to £71.4m.

The family-owned business saw growth in its Brightsolid data storage subsidiary. Revenue was up by 23%, as it recruited clients to its Aberdeen data centre.

Women's titles

However, attempts to branch out into genealogy saw revenue flat at £17.7m.

It also diversified into the Wild and Wolf website, selling gift merchandise, but is expecting UK consumer sales to fall flat and is instead focussing on exports.

DC Thomson has tried to shift its dependence on news with recent forays into radio and the specialist magazine business, with the purchase of Aceville.

The publishing part of the business has shown declines of 5% in advertising revenue and 1.5% in circulation.

Newspapers were down 11% and the larger magazines business, including The Beano comic and women's titles, was down less than 2% at nearly £25m.

With £77m from circulation and £39m from advertising, the accounts also point to the strength of relying less than rivals on ad revenue at a time when the sector is being dominated by tech giants including Google and Facebook.