Chrysalis Sale Delayed
by Amanda-Jane Doran -- Publishers Weekly, 5/12/2003
The Chrysalis Group has announced that a sale of its book arm is "not a priority" following losses of £500,000 ($800,000) in the first half of 2003. Revenues are up 3.2%, to £14.8 million.
However, analysts predict that the sale of the book group will happen within the next 12 months, once the current value of approximately £25 million approaches the company's 2002 valuation of £40 million.
Chrysalis's interests include a television production company, music publishing and radio companies. Other loss-making ventures in the group have been closed down and speculation has been mounting that the book division, whose best-known imprints include Pavilion, Collins and Brown, Batsford, and Robson Books, was being dressed up for a sale.
Management changes and a strategic review at the end of 2002 have resulted in a big reduction in book production, and 15 imprints have been realigned to one brand, Chrysalis Books Group, with three core areas of activity: children's books, packaging and adult trade. Finance director Nigel Butterfield said that he expects the company to return to profitability in the second half of 2003.
