Harry Potter’s protective spell over Bloomsbury (BLPU.L) is losing none of its power. Sales of JK Rowling’s tales of teenage wizardry surged 7% over the last year as children and adults alike sought escape from the reality of lockdowns. Publisher Bloomsbury in turn posted a 31% rise in annual pre-tax profit to 17.3 million pounds read more . The 280 million pound London-based firm’s shares jumped 10% to a 15-year high after it announced a special dividend. That provides Bloomsbury with ample protection against would-be corporate predators. Since the Harry Potter phenomenon kicked off 23 years ago, Bloomsbury has delivered 16% total annualised returns to shareholders, including dividends, compared to 4.9% for Britain’s benchmark FTSE 100 Index. The problem for Bloomsbury is what happens when that Potter magic fades. With the stock now trading at around 19 times forward earnings, up from just over 15 times before the pandemic, its valuation is flying as high as a Nimbus 2000. (By Ed Cropley) On Twitter http://twitter.com/breakingviews Capital Calls - More concise insights on global finance: Ferrero takes a $500 mln ride on Wagon Wheels read more Macau’s eager gamblers offer glimpse of the future read more IPOs give new meaning to Down Under read more Blackstone crashes its own hotel party read more Greensill burns U.S. coal boss read more