Dorling books another rise
Fuelled by its enviable success in the fast-expanding multimedia sector, which now accounts for 12 per cent of sales, and by its growing presence in the all-important US market, the company is on its way to another record year.
Can the trend be sustained? It certainly appears so, judging by the sales of its new CD-Rom titles, its expanding foreign-language editions and its early dabbling on the Internet. The City expects profits to rise by at least 20 per cent year-on-year in 1996 and 1997. Margins are still healthy, despite growing competition in the CD-Rom market, while the appetite of American consumers, who account for a third of DK's sales, looks nearly insatiable.
The keys to the company's strategy have been quality (lavishly illustrated books, imaginative interactive CD-Roms) and marketing. Fears that the departure of Microsoft as a strategic investor late last year would slow things down have yet to be realised.
DK has also been careful to build its library of titles, and to be prepared to adapt them to any successful distribution platform.
There is no other company quite like it in the UK, and the traditional methods of valuation aren't much use. The shares now trade at a heady multiple of 36 times forecast earnings in the year to June 1996, on an average estimate of pounds 16m (13.8p a share). No other media company promises such impressive earnings growth, but at that price there is little room for error.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...