BJP business plan.pdf

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BUSINESSPLANStrictly private and confidential

EIS approved

Marc Hartog Founder & CEOApptitude Media

Zetland House, 5-25 Scrutton StreetShoreditch

London EC2A [email protected]

Linked-In

mailto:marc%40apptitudemedia.co.uk%20?subject=BJP%20Invest

https://uk.linkedin.com/in/marchartog

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3 Executive Summary

5 A brief history of BJP

7 Key Audience Statistics

8 British Journal of Photography Team

9 Awards

11 New Commercial Opportunities

12 Partnerships

14 Use of Funds

15 Investor Rewards

16 Exit Strategy & Valuation

17 Summary

19 Product Appendices

20 In Print – Redesign 2016

21 Digital & Social Channels

22 Portrait of Britain

23 International Photography Awards

24 Breakthrough Student Season

25 Archive

27 Financial Appendices

28 BJP Financial Performance 31 AML Financial Perfomance

34 Contact

CONTENTS

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EXECUTIVE SUMMARY PAGE ONE OF TWO

British Journal of Photography (BJP) is the world’s longest continually running and most influential photography publication, and has defined the future of the medium since 1854. Now independent, we’re looking to the future.

We’ve already reimagined our print magazine, launched award-winning apps and created popular and profitable new events. Next we want to monetise our global digital audience, expand on our competitions and events, and sell access to our unique 160+ year archive.

Since becoming independent we have diversified and grown BJP’s revenue from £0.8m to a forecast of £1.24m (+58%) in 2016. BJP’s profit has increased from £22k

reported in 2013 to £236k in 2015 (11x), with £291k forecast in 2016.

We’re already profitable in our print and app editions from a combination of

subscription sales, issue sales and advertising.

We now intend to monetise the wider global audience that we reach via the web and our 650,000+ social media followers. UK digital ad spend is worth £8.6bn and PwC1 recently reported the fastest growth in 7 years with 50%+ growth in each of mobile advertising, video, and branded/native content – all areas that will form part of our focus, alongside three core product areas:

• BJP’s photo competitions are growing year-on-year, with over 4,000 paid-for entries in 2015, and a competition run in partnership with JCDecaux – Portrait of Britain – in 2016. We believe there is huge potential for further growth, particularly in delivering branded awards for partners.

• Many entrants to our competitions have stated an interest in selling their work as limited-edition prints. The online art market is worth $3bn and grew 24% in 2015.2 With access to hundreds of thousands of potential buyers and partnerships with leading professional printers we are uniquely positioned to deliver this service.

• BJP’s archive, stretching back to 1854, is a treasure-trove of photographic history covering every major advance, revolutionary product and generation-defining artist since photography began. We already hold both images and text of every page, and we plan to monetise this as both a subscriber incentive and standalone product.

1 Internet Advertising Bureau UK report conducted by PwC2 Hiscox 2016 Art Trade Report

http://www.bjp-online.com/

http://www.portraitofbritain.uk

http://www.iabuk.net/about/press/archive/digital-adspend-grows-at-fastest-rate-for-seven-years

https://www.hiscox.co.uk/online-art-trade-report/docs/hiscox-online-art-trade-report-2016.pdf

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Art photography, once the preserve of a small clique, is now enjoyed by millions in world-leading museums, and hundreds of millions more who creatively engage with photography in their daily lives.

“Image-sharing social media has fueled a boom in audiences for photography exhibitions”, wrote The Art Newspaper in 2013, reporting 5,000 daily visitors to ‘Henri Cartier-Bresson’ in Paris, while 394,592 attended ‘New Photography’ at MoMA New York, and 311,760 saw the V&A’s ‘Light from the Middle East’. The growing number of photography festivals (over 160) and degree courses (nearly 200 in the UK alone) is further evidence of this interest.

BJP sits in a unique space between camera magazines such as Amateur Photographer, which are more focused on products than images, and more academic titles such as Aperture or Foam, which are published less frequently and get state or foundation support.

Against declining sales for print magazines globally, we are riding the crest of a new wave of smartly-designed indie magazines, increasing our international subscription base by 70% over 3 years while building a wider international readership via our apps and online.

And while BJP has an unparalleled legacy, it has never been in ruder health or better poised to capitalise on its reputation and increased profitability. With a new and improved design, fully digitised archive, groundbreaking new events, enviable partners and a potential digital reach of over 1m creatives every month, British Journal of Photography is peerless.

To accelerate our plans and achieve our ambitions for BJP investment is required, and we’ve decided to offer BJP’s loyal following a chance to own a part of this historic product via a crowd-funding campaign. We aim to raise a minimum of £200,000 against a valuation of £2.5m.

Revenue in 5 years is forecast to be £2.3m and BJP’s profit (before central overheads) approaching £1m, which will form the basis of future valuation. Apptitude Media Ltd, publisher of BJP, is EIS approved.

EXECUTIVE SUMMARY PAGE TWO OF TWO

http://www.apptitudemedia.co.uk

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1988 1990 1993 1996 2000 2005 2010 2015 2016

FIRST PUBLISHED ON 14TH JANUARY 1854 AS LIVERPOOL PHOTOGRAPHIC JOURNAL MONTHLY UNTIL JUNE 1864 WHEN NAME CHANGED TO BRITISH JOURNAL OF PHOTOGRAPHY, AND FREQUENCY TO WEEKLY WEEKLY PRODUCTION FOR NEXT 146 YEARS UNTIL REDESIGN TO PREMIUM MONTHLY TITLE IN MARCH 2010 JUST 17 EDITORS IN TOTAL WITH SIMON BAINBRIDGE’S CURRENT EDITORSHIP IN ITS 14TH YEAR HISTORICAL WRITERS INCLUDE THE LIKES OF SIR ARTHUR CONAN DOYLE AND GEORGE BERNARD SHAW LONG-STANDING REPUTATION WITHIN GLOBAL PHOTOGRAPHIC COMMUNITY AS THE AUTHORITATIVE VOICE LUCIE AWARDS INTERNATIONAL MAGAZINE OF THE YEAR 2012 ‘OSCARS’ OF THE PHOTOGRAPHIC COMMUNITY ACQUIRED BY BJP SENIOR TEAM VIA MANAGEMENT BUYOUT IN FEB 2013 TO FORM APPTITUDE MEDIA LTD BESPOKE MONTHLY IPAD AND WEEKLY IPHONE APPS LAUNCHED MAY 2013 MULTIPLE AWARDS 2013-2015 FOR INNOVATION, TEAM, PRINT, IPAD AND IPHONE EDITIONS

INTERNATIONAL PHOTOGRAPHY AWARDS NOW IN ITS 11TH EDITION, DOUBLED (PAID FOR) ENTRIES IN 2015 BREAKTHROUGH STUDENT ENGAGEMENT (PAID FOR) AWARDS & SEASON LAUNCHED 2015 (PROFITABLE Y1) BJP REACHED 500,000 FACEBOOK FOLLOWERS FEBRUARY 2016, COMBINED REACH 1,000,000+ NEW PARTNERSHIPS WITH MAGNUM PHOTO AND WETRANSFER SECURED FOR 2016 NEW EVENTS LAUNCHING IN 2016 INCLUDING PORTRAIT OF BRITAIN WHICH WILL BE SEEN BY MILLIONS UK-WIDE PRINT MAGAZINE REDESIGNED IN MARCH 2016 WITH 50% INCREASE IN PAGINATION AND ENHANCED PRODUCTION VALUES PRINT EDITION PRICE INCREASED TO £9.99 WITH STRATEGIC FOCUS ON GROWING SUBSCRIPTIONS – NEXT GENERATION AND INTERNATIONAL READERS IN PARTICULAR 160+ YEAR ARCHIVE DIGITISATION PROJECT ALMOST COMPLETE, INDEXED AND SEARCHABLE FRONT END REQUIRES INVESTMENTINFORMATION ABOUT RECENT EDITIONS AND REDESIGN: BJP.PHOTO/INPRINT

A BRIEF HISTORY OF BJP

1854 18991875 1905 1925 1932 1941 1960 1972

http://www.bjp-online.com/category/editions/

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“ WITH AN IMPRESSIVE HERITAGE AND A HISTORY EVEN LONGER THAN OURS, BJP IS AN AUTHORITY IN ALL THINGS PHOTOGRAPHIC. JASON HEWARD, MANAGING DIRECTOR, LEICA CAMERA LTD

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• Stable subscriber base ~4,500 print, ~2,000 app

• Subs renewal rates (print): Direct Debit ~90%, Overall ~84%

• High student penetration (BJP is required reading and held in institution libraries)

• Retained and referenced – average reading time 2hrs, magazines kept average 2-3 years

• Newsstand (2015) UK ~1,500; Overseas ~400; Direct ~80

• Premium cover price – increased by 14% to £9.99 with redesign, and sales are up issue on issue

• Social Media ~650k (Facebook 500k, Instagram 43k, Twitter 84k, LinkedIn 13k) organically grown & highly engaged

• Online ~185k visits pm, ~265k page impressions pm (23% UK, 17% USA, 45% mobile, 40% female, 68% 18-44, 45% 18-34)

KEY AUDIENCE STATISTICS

• Higher than average CPM yields & click-through rates (no networked or programmatic ads, all direct)

• Email database ~30k, growing c.200 per day with recently implemented changes to data collection strategy

• Paid-for award entries (2015) ~4k (3k International Photography Awards (IPA), 1k Breakthrough)

• Competition microsite visitors: IPA 2015-16 125k visitors, 355k page views (4x higher traffic yr-on-yr); Breakthrough 2016 190k visits, 319k page views (5x higher traffic yr-on-yr)

• For significantly more detail see Product Appendices and/or download our media pack from bjp.photo/mediapacks [password: BJPmediapacks]

https://www.facebook.com/BJPhoto

https://www.instagram.com/bjp1854/

https://twitter.com/1854

https://www.linkedin.com/groups/1938639

http://www.bjpipa.com/


http://www.bjpbreakthrough.com/

http://bjp.photo/mediapacks


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• Founder & CEO Marc Hartog was formerly Finance Director of a £120m+ media business before leading and financing a management buyout to form Apptitude Media in 2013, subsequently raising £375k at a £1.5m valuation from his existing network under EIS. He has a track record of investing in and advising startups, most notably Work Digital, leaders in social recruitment technology, where having introduced and brokered a Series A he subsequently advised the board to a successful exit delivering a 25x return to seed and 10x return to Series A investors

• BJP is supported by a passionate and world-class team in all disciplines, some of whom have worked together for many years, others recruited into new roles to grow events, digital & social footprint, and new commercial opportunities

• Simon Bainbridge is an editor of 25 years experience and a respected figure in the global photo community, serving as a judge and nominator for international awards, a portfolio reviewer at festivals, and having curated exhibitions in the UK and overseas. Supported by Diane Smyth, Executive Editor and Tom Seymour who joined as Social Media & Online Editor in 2014

• Creative Director Mick Moore has led the design of the BJP brand for over 20 years, through its redesign into a luxury print title, its expansion into app editions and its recent ‘undesign’ to attract a new generation of creative professionals.

• Monica Chopra leads the sales team, supported by one classified and one senior sales executive. Monica has 12 years of sales experience having worked for some of the largest media companies in the UK

• Marc Ghione leads marketing and circulation, supported by one marketing executive. Marc is a superb and insightful marketer with fearsome negotiation skills, and oversees all aspects of BJP’s marketing strategy, for all channels

• Lisa Farrell was appointed in 2015 to build BJP’s events portfolio. With a background in photography and having launched major events for itsnicethat, Lisa has been a major asset and already delivered two profitable events as well as securing WeTransfer, Magnum and other important partners. Lisa is supported by one junior apprentice

• We recently created a new Digital Producer role for Brennavan Sritharan, a talented millennial who was undertaking an editorial internship. The role brings an editorial tone to house marketing and branded content campaigns, enhances social growth and engagement, and supports the sales, marketing, events and editorial functions

• In addition, a number of freelance sub-editors and world-class writers contribute to BJP on a regular basis

BRITISH JOURNAL OF PHOTOGRAPHY TEAM

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• Digital Company of the Year – Business Excellence Awards 2015

• Most Innovative Publishing Company – Innovation & Excellence Awards 2015

• New Talent Sales Team of the Year – PPA New Talent Awards, 2015

• Digital Publisher of the Year 2014, – Business Excellence Awards

• Marc Hartog, Publishing Innovator of the Year 2013 – PPA Awards

• App of the Year – PPA Awards, 2013

• Most Effective Tablet Application – Mobile Marketing Awards Nov 2013

• Marc Hartog, Acquisition International Visionary of the Year – 2013

• Digital Publisher of the Year 2013 – Business Excellence Awards

• Photography Magazine of the Year – Lucie Awards Oct 2012

• Best Use of Mobile – British Media Awards 2012

AWARDS

The Lucie statue, collected by BJP, October 2012 in Los Angeles. The Lucie is truly a photographic icon. Curator and photographer Graham Howe conceived its form after works by two of the 20th century’s most important photographers: EO Hoppé (1878-1972), whose “Margot Fonteyn, dancer, Saddler’s Wells Ballet,” 1935 and František Drtikol (1883-1961) whose “Dark Waves,” 1925, were figuratively combined to give us Lucie – the goddess of light. The design was modelled in three dimensions by Studio 1030 Architects.

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“ BJP IS A LONG-STANDING, WELL-RESPECTED INSTITUTION IN THE PHOTOGRAPHIC INDUSTRY, AND IS HELD IN VERY HIGH ESTEEM BY NIKON.” JEREMY GILBERT, GROUP MARKETING MANAGER, NIKON UK

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• Portrait of Britain is a brand new and unique collaboration with JCDecaux. With 100 images showing the face of Britain on nationwide digital advertising screens, we believe this will be the most ambitious outdoor photography exhibition ever staged

• The BJP archive represents a significant revenue and traffic driving opportunity, with 160 years of content now scanned and the next steps to create a standalone subscription portal

• Selling images online in collaboration with photographers: with BJP’s reputation for unearthing talent coupled with high quality online editorial and a highly visually literate audience there is a significant opportunity to create a new and potentially very substantial revenue stream

• Branded content: Recently appointed Digital Producer, starting to create bespoke and tailored campaign proposals to take to market

• e-Commerce: www.thebjpshop.com has just been completely redeveloped to sell current & back issues, tote bags and other merchandise. First stage rollout completed, next stage Q3 2016 will enable direct subscription sales and more varied product offerings

• Recruitment: BJP has long history of being ‘the place to get a job in photography’ and still commands a premium for recruitment ads. The jobs page is well trafficked (~3k visits pm, ~30% direct) and results are excellent. With a jobs portal and resource BJP could be the No1 destination for multimedia jobs

• Video channel: in 2015 BJP started creating editorially-led videos as well as using video to promote its own editions and events. The media pack outlines a sole sponsorship opportunity including pre- and post-rolls, and bespoke video creation for clients

• Subscriber benefits: Leveraging partnerships to increase loyalty and acquisitions

• Increase in frequency: 13th edition and special themed bookazines

• Magnum workshops: collaboration with Magnum Photos with substantial joint marketing effort (Magnum has 1.6m+ social media following). First workshop sold out at premium price (£275)

NEW COMMERCIAL OPPORTUNITIES



http://www.thebjpshop.com

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• In 2015-16 we focused on securing strategic partners to increase BJP’s presence in the UK and overseas, at a minimal cost. Due to its unique market-leading position BJP has been able to open doors and is often approached for collaborations

• Magnum Photos was secured as an events partner, with a 50:50 joint venture creating paid-for professional practice workshops hosted in the Magnum print room, with Magnum photographers and other carefully selected speakers

• WeTransfer was secured as media partner for BJP’s Breakthrough and IPA events. As a platinum partner BJP exposure will be significantly greater than in 2015 with both the calls-to-entry and winning images presented as full page (top 5) wallpapers. WeTransfer serves 70 million transfers per month. We have recently signed an additional deal guaranteeing 10 million impressions for each of three new campaigns

• JCDecaux was secured as exclusive partner for Portrait of Britain, one of the largest scale outdoor exhibition concepts ever attempted. Aside from being a considerable branding opportunity for BJP this event represents a commercial opportunity from both sponsorship and entry fee income

• theprintspace was secured as print partner for BJP’s exhibition events, covering the cost of printing and framing, and offering a significant marketing effort towards its growing high-end client base

• The Positive View Foundation, BJP’s philanthropic partner, presented Beckham: The Man in March 2016, with BJP as media partner, resulting in exclusive images and front cover of David Beckham, and association with the ongoing global exhibition tour

• Festivals – BJP is or has been on the agenda at Photo España and Rencontres d’Arles, and is in discussions with Paris Photo, Unseen Amsterdam, Dubai Photo, Photo London, and more

PARTNERSHIPS

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“ BJP’S HERITAGE, CREDIBILITY IN THE PHOTOGRAPHY WORLD AND PASSION FOR INNOVATION MADE IT THE IDEAL PARTNER FOR OUR ‘PORTRAIT OF BRITAIN’ INITIATIVE.”JANET GUEST, EDITORIAL DIRECTOR, JC DECAUX

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• Ground-up redevelopment of BJP’s online presence to enable a better user experience and better monetisation from embedded content and commercial partnerships, video, mobile, micro-payments, data collection, archive access, recruitment and sale of presented images

• Build stand-alone subscription portal and microsite for BJP’s 162 year old archive, with control to connect to the BJP subscriber database and built-in monetisation options

• Increased editorial resources, focused on increasing quantity and diversification of online content, content marketing and social media engagement

• Investment in the tools and resources to measure, test and track performance of editorial and commercial digital campaigns

• Investment in building our international subscription base and presence in international galleries and museums

• Building on partnership strategy to leverage the BJP brand to create new commercial opportunities

• Increased resources and new appointments within business development, marketing and digital teams to support new activities

USE OF FUNDS

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£While we are certain that the idea of owning part of a historic brand and the potential to earn a healthy and tax-efficient return are significant rewards in themselves, we appreciate that everybody likes something a little extra. As such we are offering the following rewards, depending on the level of investment you decide to commit to. Please take advice as to whether these rewards impact on your EIS status.

£100• BJP tote bag with mystery back issue and

letter from BJP Editor Simon Bainbridge.

£1,000• Networking reception for investors with the

BJP team

• One year subscription to print & app editions

• 10% discount in BJP shop

£5,000• Networking reception for investors with the

BJP team

• Ongoing annual subscription for duration of share ownership

• Free entry to all BJP competitions for duration of share ownership

• 20% discount in BJP shop.

£10,000All of the £5k rewards plus

• Limited edition leather-bound reprint of BJP 1st edition from 1854;

• Full voting shares;

• 30% discount in BJP shop.

£25,000All of the £10k rewards plus

• Exclusive photography experience in a choice of stunning destinations with professional photographers and an inspirational itinerary with BJP’s experience partner, Frui.*

£100,000All of the £25k rewards plus a seat at the boardroom table, subject to board approval.

Investments in excess of £10,000 will be issued Class A shares with full voting rights.

* See frui.co.uk for an overview of their photography packages (including terms & conditions, flights not included)

INVESTOR REWARDS

http://frui.co.uk


We started the business in 2013, following a management buyout of BritishJournal of Photography, led and financed by Apptitude’s CEO Marc Hartog. We subsequently raised £375k via an EIS round which has allowed us to completely reimagine our brand and print product, to invest in our apps and to set up infrastructure for our online services.

Our plan for this second round is to further diversify the business, with a focus on commercial digital opportunities, our competitions and archive, growing our events and building on the success of our print and app products internationally.

With businesses like Vice Media and Buzzfeed attracting significant private equity involvement to fuel growth, this represents a potential exit opportunity for

investors, alongside the possibility of a full or partial future trade sale.

The current value of Apptitude Media is in the BJP asset, and a future exit if based on a sale would dispense with most of the central overheads and central management costs, which exist as an infrastructure and mechanism to grow the core brands EBITDA and therefore enterprise value.

Using a weighted average of BJP’s profit on a sliding scale in favour of current and past trading, and a conservative median multiple as defined by Berkery Noyes in April 2016, BJP has an indicative market value of £3.2m. Valuing on a fully costed basis including all Apptitude Media Ltd overheads and a more evenly weighted average EBITDA, AML has an indicative market value of £1.9m.

The reality is that a fair market valuation sits somewhere in-between these two methods and a pre-money valuation of £2,555,064 has been placed on the business, being the median point.

Since 2013 we have diversified and grown BJP’s revenue from £0.8m to a forecast of £1.24m (+59%) in 2016. BJP’s profit has increased from £22k reported in 2013 to £236k in 2015 (11x), with £291k forecast in 2016.

Revenue in 5 years is forecast to be £2.3m (2.5x 2015) and BJP’s profit approaching £1m (4x 2015), which will likely form the basis of future valuation, alongside ~£2m cash forecast to be in the business.

It should be noted that whilst the forecasts include growth for current planned business aspects and existing events, there are likely to be new revenue streams and events over and above this so we consider the outlined revenue and EBITDA projections to have significant potential upside.

EXIT STRATEGY& VALUATION

-500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

202120202019201820172016201520142013

BJP REVENUE BJP PROFIT AML EBITDA

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BJP stands alone within the fabric of the global photographic community, looked to for inspiration by photographers, curators, students, festival directors, critics and photo editors the world over. As Jason Heward, MD of Leica, put it: “BJP is an authority in all things photographic”.

And whilst BJP has over 160 years of unparalleled legacy, it has never been in ruder health or better poised to capitalise on its reputation and increased profitability. With a new and improved beautiful design, fully digitised archive, groundbreaking new events, enviable partners and potential digital reach of over 1,000,000 creative individuals every month, British Journal of Photography is a brand in ascent.

To unlock the potential, accelerate growth and achieve its ambitions as outlined in this document, investment is required and, because of the loyal following BJP has, the management team felt that giving its readers and followers the opportunity to own a piece of this British institution via a top equity crowd-funding platform would be appropriate.

Please feel free to get in touch with any questions or register for updates at bjp.photo/invest

Contact: Marc Hartog [email protected] +44 (0)207 193 2654

SUMMARY

http://invest.bjp-online.com/

mailto:marc%40apptitude.media?subject=BJP%20fundraising%20opportunity

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“ BJP IS THE ONLY PUBLICATION THAT IS TAKEN SERIOUSLY BY PROFESSIONALS, ARTISTS, SEMI-PROS AND PROSUMERS.” STUART WAPLINGTON, MANAGING DIRECTOR, THEPRINTSPACE

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Media packs are all available to download from the link below

and following the pages outline BJP’s existing print, digital and live channels

www.bjp.photo/mediapacks

(password BJPmediapacks)

Download folder includes:BJP main media packPortrait of BritainInternational Photography AwardsBreakthrough Student Season

PRODUCT APPENDICES

http://www.bjp.photo/mediapacks




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IN PRINTREDESIGN 2016

• 8-month redesign/undesign project led by Editor and Creative Director

• First redesigned issue, April 2016 (on sale March), showing early signs of being very well received

• Capitalising on resurgence of print with an even more beautiful, tactile magazine experience

• 50% increase in pagination, introduction of dense uncoated cover and multiple (silk/glossy/uncoated) paper sections

• Completely new visual identity, retaining the heritage, pedigree and authority of BJP but in a more contemporary context

• More content, more images, more pages – a more sophisticated and immersive experience

• Cover price increased to £9.99 per month, annual subscription price increased to £74.99, margin on both enhanced

• Introducing new monthly subscription option (£8.99pm)

• New client opportunities created, with strong feedback from key manufacturers and clients

• Several new subscriber benefits planned, including digital edition access, archive access and partner offers

• New strategy for overseas, maintaining UK subscription price for anywhere in the world (significant price reduction for a much enhanced product), and an overseas marketing campaign to promote the offers planned

• iPad app edition redesigned to reflect layout and typography changes, maintaining but simplifying bespoke design strategy, with no change to price to protect existing subscription renewals

• iPhone app strategy shift towards mobile-first content. Still weekly bite-sized chunks at a lower edition price, but content from upcoming print issue rather than current issue

• Copies of recent print editions are available from www.thebjpshop.com or from most WHSmiths. App editions can be found by searching BJP+ in the iOS App Store

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• www.bjp-online.com relaunch Phase 1 completed to fully responsive site

• Updated daily with high quality content from dedicated editor

• 45% of traffic now coming from mobile devices

• Social Media ~650k (Facebook 500k, Instagram 43k, Twitter 84k, LinkedIn 13k) organically grown & highly engaged

• Online ~185k unique visitors pm, ~265k page impressions pm and truly international with 23% of traffic from the UK, 17% USA, 60% Rest of World

• Well balanced online demographic: 40% female, 68% 18-44

DIGITAL: ONLINE & SOCIAL MEDIA

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Portrait of Britain

• Brand new original and unique collaboration with JCDecaux (JCD), UK’s No1 outdoor advertising company

• Paid-for competition inviting contemporary portraits of everyday people living in the UK

• 100 winning images exhibited nationwide in a 5-week campaign in September 2016, across the JCD digital screen network, with substantial BJP branding on all screens

• Design, competition website, idea and IP owned by BJP

• Guaranteed reach ~10 million people through rail and mall networks.

• Reach is likely to be significantly higher with airport towers and roadside included, if available

• Launched in April 2016 with multi-channel campaign inviting calls for entry, including stunning full screen ‘calls for entry’ takeovers within JCDecaux digital screen network

• Portrait of Britain will, we believe, be the most ambitious outdoor exhibition ever staged, with significant positive BJP brand penetration throughout the UK

• The October edition of BJP (on sale September) will be thematically linked to the exhibition

• BJP intends to offer images for sale (permission dependent) in a digital gallery, with a BJP revenue share

• For significantly more detail download our media pack from bjp.photo/mediapacks [password: BJPmediapacks]

PORTRAIT OF BRITAIN



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International Photography Awards

• IPA 11th edition calls for entry run from August – November 2016, exhibition Feb-March 2017

• Internationally recognised awards, with history of launching careers and attracting elite judging panel

• 2015-16 edition doubled (paid-for) entries (~3k) and more than doubled fee income following an increase in entry price, which remains competitive

• 2016-17 entries expected to increase further with significant momentum, more comprehensive marketing plan, and WeTransfer platinum partnership

• More than 125k visitors to the microsite in 2015 (4x higher than 2014), expected to increase in 2016

• Entries from 93 countries: 40% entries from UK; 60% overseas including 9% USA

• Winners receive London exhibition plus WeTransfer showcase and exposure in BJP

• TJ Boulting secured as gallery partner, theprintspace as print partner and WeTransfer as media partner



INTERNATIONAL PHOTOGRAPHY AWARDSFrom the series Joyce, 2015. Image © Juno Calypso, winner IPA 2016.



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Breakthrough Student Season

• BJP Breakthrough season launched in 2015 to engage the student community

• Paid-for awards with winners pop-up exhibition in East London and series of talks, events & workshops

• Sponsored by Olympus in 2015, tiered opportunities being pitched currently

• Over 1,000 paid entries in year 1, with limited marketing build-up

• Profitable in year 1

• Entry fee increased for 2016 season, calls to entry launched in March 2016, traffic 5x higher than in launch year primarily driven through WeTransfer partnership

• Built database and engaged with all Universities and colleges as part of ‘grass roots’ campaign of engagement with BJP’s next generation of readers



BREAKTHROUGH STUDENT SEASON

Winner: Breakthrough Awards Undergraduate Single Image – Adama Jalloh, You fit the description.



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• Two+ year project to source, organise and index BJP’s 160 year physical archive is close to completion

• Partnered with Proquest to undertake scanning, and receive revenue share from license sales to institutions

• BJP is free to commercialise its archive outside the Proquest institutional arrangement

• Currently testing potential beta front-end with highly regarded UK partner, significant development required

• Represents immense online presence and marketing / traffic-driving opportunity

• Stand-alone portal creates new sponsorship and advertising opportunities

• Archive will be sold on a stand-alone subscription basis through a bespoke portal

• Some or all of the archive will be made available to subscribers to increase acquisitions and loyalty

BJP ARCHIVE

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“ THE BJP’S LONG HISTORY GIVES IT AN UNRIVALLED INSIGHT INTO THE WORLD OF PHOTOGRAPHY” DR MICHAEL PRITCHARD, DIRECTOR-GENERAL, THE ROYAL PHOTOGRAPHIC SOCIETY, UK

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Apptitude Media Ltd (AML) is a multiple award-winning media business formed in February 2013 following the management buyout of British Journal of Photography (BJP) by its core team, who all remain with the business. Following three successive years of BJP revenue diversification with turnover, profitability and audience growth, and BJP having represented over 80% of AML’s turnover in 2015, all non-BJP activities have now been ceased or divested and the focus of this business plan is the recent successes and exciting growth plans for this 162-year-old British institution. The following pages present both BJP ’s financial projections and AML’s fully-costed financial projections, and should be read in conjunction with the financial snapshots which includes the FCA risk warning.

Apptitude Media Ltd has EIS status in place from its initial fundraising in 2013 following the management buyout.

FINANCIAL APPENDICES

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BJP FINANCIAL PERFORMANCE & FORECAST

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2015 2016 2017 2018 2019 2020 2021 £’000 £’000 £’000 £’000 £’000 £’000 £’000

PRINT READER 501,464 537,644 573,571 596,353 620,235 645,280 671,553DIGITAL READER 76,772 110,875 244,198 272,163 304,968 343,545 389,013PRINT ADVERTISING 134,950 160,619 173,979 182,678 191,812 201,403 211,473DIGITAL ADVERTISING 137,398 146,501 234,000 257,400 281,820 308,616 338,022EVENTS 99,925 287,504 380,345 446,129 519,935 602,425 699,264INCLUDING DELEGATE AND AWARDS ENTRY FEES

PUBLISHING REVENUE 950,509 1,243,142 1,606,093 1,754,723 1,918,770 2,101,269 2,309,325 PUBLISHING PRODUCTION 265,505 349,670 411,840 436,302 464,032 495,632 531,826PRODUCTION COSTS 265,505 349,670 411,840 436,302 464,032 495,632 531,826 GROSS PROFIT 685,003 893,472 1,194,253 1,318,421 1,454,738 1,605,638 1,777,498GROSS PROFIT MARGIN +72% +72% +74% +75% +76% +76% +77% PERMANENT STAFF 298,047 445,661 524,352 541,342 558,969 577,262 596,257FREELANCE & INTERNS 70,350 77,200 94,983 96,407 97,853 99,321 100,811CIRCULATION & MARKETING 76,716 71,488 97,702 101,670 105,836 110,210 114,803OTHER DIRECT 4,111 7,740 7,856 7,974 8,094 8,215 8,338DIRECT COSTS 449,225 602,089 724,893 747,394 770,752 795,009 820,210 PROFIT 235,778 291,384 469,360 571,027 683,987 810,629 957,289PROFIT MARGIN +25% +23% +29% +33% +36% +39% +41%

BJP 2016 BUDGET & 5 YEAR FORECAST

29


REVENUE MIX TREND 2013 2016 2021

■■■■ PRINT SUBSCRIPTIONS 32% 25% 17%■■■■ PRINT ISSUE SALES 30% 18% 12%■■■■ DIGITAL SUBSCRIPTIONS 10% 7% 7%■■■■ IMAGE SALES 0% 2% 10%■■■■ PRINT ADVERTISING 15% 13% 9%■■■■ DIGITAL ADVERTISING 13% 12% 15%■■■■ EVENT SPONSORSHIP 0% 8% 9%■■■■ EVENT PARTICIPATION 1% 15% 21%■■■■ TOTAL 100% 100% 100%

Event participation

Event sponsorship

Digital advertising

Print advertising

Image sales

Digital subscriptions

Print issue sales

Print subscriptions

Event participation

Event sponsorship

Digital advertising

Print advertising

Image sales

Digital subscriptions

Print issue sales

Print subscriptions

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

202120130

500,000

1,000,000

1,500,000

2,000,000

2,500,000

202120130

500,000

1,000,000

1,500,000

2,000,000

2,500,000

20212013

30


• BJP total revenue grown from £782k in 2013 to £951k in 2015. New events and archive launch in Q4 of 2016 main drivers of growth to £1.24m this year

• Conservative estimates based on existing and imminently planned new revenue streams will grow BJP revenue to upwards of £2m within 5 years

• Profit was grown from a marginal £22k in 2013 (note this is for 11 months of Apptitude ownership) to £262k in 2014. The margin was impacted in 2015 due to investments in the redesign and new events, which continues into 2016 with margin growth forecast from 2017 onwards

• Profit will continue to grow in line with revenue at an increasingly enhanced margin due to economies of scale and high incremental profit from digital revenue streams, targeting £1m+ in the next 4/5 years.

• Strategy to diversify revenue streams is already apparent with further diversification planned by leveraging the brand, building on events and creating new digital revenue streams

• Reducing reliance on print reader revenue, though it will remain important, predictable and extremely profitable

• Digital subscriptions growth primarily driven by conservative estimates of online archive subscriptions

• Image sales based solely on competition entry prints being made available, significant upside if this is implemented throughout broader editorial channels

• Print advertising growth predicated on enhanced product, new advertisers and investment in additional sales resource

• Digital advertising growth driven by brand campaigns and recruitment

• Events is the main driver of revenue growth having quadrupled revenue from 2014 to 2015. 2016 sees the launch of Portrait of Britain and Magnum series, and continued growth of IPA’s and Breakthrough.

• No other new events are in plan despite having several worked-up concepts. Highly profitable awards entry income is the primary driver of growth

• Production cost increases in line with increased print distribution as well as events and digital production cost increases to support revenue growth

• Investment in staff resource following the fundraising within editorial, marketing and sales functions

• Marketing budget is greatly supplemented by contra activity via partners (see ‘Partnership’ section)

NOTES TO FINANCIAL PERFORMANCE

31


AML FINANCIAL PERFORMANCE & FORECAST

31

2015 2016 2017 2018 2019 2020 2021 £’000 £’000 £’000 £’000 £’000 £’000 £’000

PRINT READER 501,464 537,644 573,571 596,353 620,235 645,280 671,553DIGITAL READER 86,447 115,727 244,198 272,163 304,968 343,545 389,013PRINT ADVERTISING 134,950 160,619 173,979 182,678 191,812 201,403 211,473DIGITAL ADVERTISING 139,573 148,601 234,000 257,400 281,820 308,616 338,022EVENTS 126,226 306,854 380,345 446,129 519,935 602,425 699,264 PUBLISHING REVENUE 988,660 1,269,445 1,606,093 1,754,723 1,918,770 2,101,269 2,309,325 TOTAL BUSINESS REVENUE 1,237,928 1,383,596 1,606,093 1,754,723 1,918,770 2,101,269 2,309,325 PUBLISHING PRODUCTION 288,577 359,173 411,840 436,302 464,032 495,632 531,826TOTAL PRODUCTION COSTS 300,668 366,598 411,840 436,302 464,032 495,632 531,826 GROSS PROFIT 937,261 1,016,998 1,194,253 1,318,421 1,454,738 1,605,638 1,777,498GROSS PROFIT MARGIN +76% +74% +74% +75% +76% +76% +77% PERMANENT STAFF (INC ADMIN & MANAGEMENT) 532,504 667,046 657,981 719,663 746,931 775,421 805,203FREELANCE & INTERNS 73,500 77,200 94,983 96,407 97,853 99,321 100,811CIRCULATION & MARKETING 80,942 71,488 97,702 101,670 105,836 110,210 114,803OTHER DIRECT 28,205 20,390 18,980 19,432 19,895 20,370 20,858

STAFF & DIRECT COSTS 715,152 836,124 869,646 937,172 970,515 1,005,323 1,041,675 PROFIT 222,108 180,874 324,607 381,249 484,223 600,314 735,823PROFIT MARGIN +18% +13% +20% +22% +25% +29% +32% PROPERTY 86,961 70,272 41,400 47,610 49,991 52,490 55,115IT 14,143 13,030 10,290 10,598 10,916 11,244 11,581OFFICE 8,784 6,700 6,489 6,684 6,884 7,091 7,303FINANCE & GENERAL 45,011 38,030 26,282 27,331 28,213 29,129 30,080

OVERHEAD COSTS 154,899 128,032 84,460 92,223 96,004 99,954 104,079 TOTAL BUSINESS COSTS 1,170,719 1,330,755 1,365,946 1,465,697 1,530,551 1,600,908 1,677,581 EBITDA 67,209 52,842 240,147 289,026 388,219 500,361 631,744EBITDA MARGIN +5% +4% +15% +16% +20% +24% +27%

AML 2016 BUDGET & 5 YEAR FORECAST

32


• AML made an anticipated loss in its first year of trading, broke even in 2014 and delivered its first profitable year in 2015 with statutory P&L stating turnover of £1.24m and overall EBITDA of £64k

• This included overheads and management costs of £306k: 2015 profit excluding central costs is £374k

• In 2016 AML is divesting or ceasing all non-BJP activities to coincide with this fundraising effort, to focus on delivering the strategy outlined in this plan

• 2016 will include ~£140k of non-BJP revenue achieved pre-divestment with nominal fully costed profit. The 2017 onwards forecasts do not include any of this activity. 2016 forecast turnover is £1.38m with EBITDA of £53k. EBITDA forecast excluding central overheads is £356k – this assumes investment in staff and other activities noted in this plan following suuccessful completion of this investment round

• Central costs comprise management, admin staff, property, IT, legal, financial and professional fees

• With BJP as the sole driver of growth as described in the BJP financial performance summary, turnover is forecast to be £2.3m in 5 years with EBITDA of £632k, £957k excluding central costs

NOTES TO FINANCIAL PERFORMANCE

33


“ BJP IS ALIVE & KICKING AS IT BUILDS AND ENRICHES AN ENTIRE GENERATION... IT’S A NO-BRAINER.” FATMA GENÇ, BRAND & PR DIRECTOR, WETRANSFER

34


Marc Hartog, Founder & CEO

[email protected]

+44 (0) 207 193 2654

Skype am_marchartog

@marchartog

CONTACT

mailto:marc%40apptitude.media%20?subject=BJP%20investment%20opportunity

BJP business plan.pdf

Documents

Transcript of BJP business plan.pdf