UK Educational Publishing Industry

Publication Date	March 2006
Publisher	RocSearch
Product Type	Report
Pages	46
ISBN Number	not applicable
Product Code	ROC00161

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Summary

One of the UK's oldest industries, publishing began with books in the 16th century, followed by newspapers in the 17th century and periodicals in the 18th. A major difference between the publishing industry of the early 21st century and that in the late 20th century is that it has become more specialized, with players now intensively focusing on niche segments. Large bookstore chains offer discounts on educational titles throughout the year and this has made the market very price-sensitive. Publishers, in fact, question the policy of offering discounts on books that are being sold in large numbers. Leading UK publishers are investing heavily in technological initiatives such as sophisticated search engine algorithms that enhance the navigability of their databases. Kinks in the supply chain in the form of logistics and overstocking are now assuming alarming proportions in the industry's battle for survival. Improved forecasting models, along with a reduction in distribution costs by consolidating operations, present ways to tackle such challenges.

This report analyzes the UK educational publishing industry, taking into perspective the changing demand patterns and technological developments. PEST and SWOT analyses have been employed to present a clear picture of the functioning of this industry. The report examines factors driving change in UK educational publishing. It assesses the competitive landscape comprising key players such as Pearson Education, Harcourt Education International, Nelson Thornes and Hodder Headline. It also captures important trends and growth drivers shaping the outlook for this industry. The increasing numbers of school-going children and rising enrolments in higher education have added to the demand for educational books. The concept of online books is also gaining popularity due to easier access and lower costs. The UK government's 'Curriculum Online' program has also helped drive demand for online titles. Some of the key findings include:

The US is the single-most important market for UK publishers
China presents a potential opportunity for the UK publishing industry
A 6-8% rise in paper prices in 2006 due to rising energy costs will severely impact small publishers in the UK

Content

1. Industry Overview 1.1 Market Definition The educational publishing industry covers books purchased by schools, academic institutions and professional bodies through academic and professional book specialists, specialist book suppliers, or via the internet. 1.2 Market Segmentation Academic/Professional books School books 1.3 Market Overview The global market for educational instruction materials is estimated at US$13 billion. The market is split into publications for higher education and those for the elementary and high school constituents. 1.4 Economic Trends Collaboration between Public and Private SectorsGDP Growth Spurs Education Spends Enrolment on the Rise at UK Schools 2. Market Dynamics 2.1 Market Size 2.2 Market Trends High Exposure to US Dollar E-Books Gaining Foothold at the Cost of Traditional Publishing Pricing and Profits Causing Concern 2.3 Growth Drivers Online Curriculum Program Aids Educational Publishers Rising US Education Spend Set to Boost UK Publishing Increased Expenditure on Higher Education 3. PEST Analysis 3.1 Political Factors Favorable government policies Rising public spend on education Focus on vocational education 3.2 Economic Factors Consumer spending 3.3 Social Factors Ageing population 3.4 Technological Factors Internet A key growth opportunity Encroachment by global search engines 4. Supply Chain Analysis It describes the supply chain in the educational publishing industry along with the challenges that arise in the supply chain like overspending on logistics, huge overstock and low consolidation among distributors. It also gives an overview of making the supply chain more efficient. 5. SWOT Analysis 5.1 Strengths Strong Competitive Positioning Favorable Regulatory Environment 5.2 Weaknesses High Reliance upon the American Market 5.3 Opportunities Expansion into high- growth Chinese Market Diversification into Podcasting 5.4 Threats Rising Paper Prices 6. Competitor Analysis 6.1 Competitive Landscape It includes companies like Pearson Education, Harcourt Education International, Hodder Headline and Nelson Thornes and compares them on the basis of growth rates, financial performance, geographical presence and employee strength. 6.2 Pearson Education UK 6.2.1 Overview 6.2.2 Types of Products 6.2.3 Number of Employees 6.2.4 Key People 6.2.5 Brands Key brands include Allyn & Bacon, Cisco Press, FT Prentice-Hall, Peachpit Press, QUE Publishing and SAMS Publishing. 6.2.6 Partnerships 6.2.7 Profit & Loss Account 6.2.8 Balance Sheet 6.2.9 Financial Ratios It includes ratios like Current Ratio, Credit Period, Return on Capital, Return on Assets, Pre-Tax Margin, Return on Shareholders Funds, Sales by Tangible Assets, Quick Ratio, Stock Turnover and Working Capital by Sales. 6.2.10 Growth Rates It includes figures for Total Turnover, Gross Profit, Cost of Sales, Retained Earnings, Retained Profit/Loss, Total Assets, Total Current Liabilities, Cash at Bank and Total Fixed Asset. 6.2.11 Industry Averages It includes Average Remuneration, Sales per Employee, Sales/Total Assets (%), Pre-tax Profit/Total Assets (%), Pre-tax Profit/Capital Employed (%), Pre-tax Profit/Sales (%)Credit Period (days), Wages/Turnover (%) and Current Ratio. 6.3 Harcourt Education International 6.3.1 Overview 6.3.2 Types of Products 6.3.3 Number of Employees 6.3.4 Key People 6.3.5 Exports 6.3.6 Brands Some of its brands include Heinemann Primary, Heinemann Secondary, Ginn, Payne-Gallway 6.3.7 Partnerships 6.3.8 Profit & Loss Account 6.3.9 Balance Sheet 6.3.10 Financial Ratios 6.3.11 Growth Rates 6.3.12 Industry Averages 6.4 Nelson Thornes 6.4.1 Overview 6.4.2 Types of Products 6.4.3 Number of Employees 6.4.4 Key People 6.4.5 Brands The key brand for Nelson Thornes is EXP Maths 6.4.6 Partnerships 6.4.7 Profit & Loss Account 6.4.8 Balance Sheet 6.4.9 Financial Ratios 6.4.10 Growth Rates 6.4.11 Industry Averages 6.5 Hodder Headline 6.5.1 Overview 6.5.2 Types of Products 6.5.3 Market Share 6.5.4 Key People 6.5.5 UK Subsidiaries 6.5.6 Acquisitions 6.5.7 Brands Key brands include Headline, Hodder & Stoughton, Hachette Childrens, Hodder & Stoughton Religious and Hodder Education 6.5.8 Profit & Loss Account 6.5.9 Balance Sheet 6.5.10 Financial Ratios 6.5.11 Growth Rates 6.5.12 Industry Averages 7. Industry Prospects The UK book publishing market is expected to increase in value by 8.2% during 2005-08. In the UK, the number of overseas students is also increasing; the fastest growth in the number of students is among those from China. List of Tables/Figures Tab 1.1 Total UK Education Book Market, (in US$ million); 2001 & 2003 Tab 1.2 Public Spending on Education (as % of GDP)*; 2000-01 to 2004-05E Tab 2.1 Change in ASPs* of Academic Books (US and UK); 2000-01 to 2003-04 Tab 2.2 Federal Funding for US Schools; 2003-2005 Tab 6.1 Competitive landscape Tab 6.2 Profit & Loss Account Pearson Education 2000-2004 Tab 6.3 Balance Sheet figures-Pearson Education 2000-2004 Tab 6.4 Financial Ratios- Pearson Education 2000-2004 Tab 6.5 Growth Rates- Pearson Education 2000-2004 Tab 6.6 Industry Averages- Pearson Education 2000-2004 Tab 6.7 Profit & Loss Account-Harcourt Education International 2000-2004 Tab 6.8 Balance Sheet figures-Harcourt Education International 2000-2004 Tab 6.9 Financial Ratios-Harcourt Education International 2000-2004 Tab 6.10 Growth Rates-Harcourt Education International 2000-2004 Tab 6.11 Industry Average-Harcourt Education International 2000-2004 Tab 6.12 Profit & Loss Account-Nelson Thornes 2000-2004 Tab 6.13 Balance Sheet figures-Nelson Thornes 2000-2004 Tab 6.14 Financial Ratios-Nelson Thornes 2000-2004 Tab 6.15 Growth Rates-Nelson Thornes 2000-2004 Tab 6.16 Industry Average- Nelson Thornes 2000-2004 Tab 6.17 UK Subsidiaries-Hodder Headline 2004 Tab 6.18 Profit & Loss Account-Hodder Headline 2000-2004 Tab 6.19 Balance Sheet figures-Hodder Headline 2000-2004 Tab 6.20 Financial Ratios-Hodder Headline 2000-2004 Tab 6.21 Growth Rates- Hodder Headline 2000-2004 Tab 6.22 Industry Average- Hodder Headline 2000-2004 Fig 1.1 Industry Segments Fig 1.2 Total Book Exports from UK, 2000-2004 Fig 1.3 % Change in Average Book Prices 2003-2004 over 2002-2003 Fig 2.1 UK Publishing Industry, 2003 Fig 2.2 Sources of Purchase by Volume 2003 Fig 2.3 12-month Relative Share Price Performance 2004-2005 Fig 3.1 UK Education Spend as a Proportion of Total Consumer Expenditure 1995-2004 Fig 3.2 Break-Up of UK Population by Age 1971-2004 Fig 4.1 Supply Chain of UK Educational Publishing Industry Fig 6.1 Number of Employees-Pearson Education UK, 2000-2004 Fig 6.2 Number of Employees- Harcourt Education International, 2000-2004 Fig 6.3 Exports - Harcourt Education International, 2000-2004 Fig 6.4 Number of Employees- Nelson Thornes, 2000-2004 Fig 7.1 UK Book Publishing Market Forecast by Value 2005-2008