02 April 2013
Future plc
Sale of Classic Rock and Metal Hammer
Future plc (LSE: FUTR), the international media group and leading digital publisher, today announces an agreement for the sale of its UK rock titles Classic Rock, Metal Hammer and associated brand extensions to Team Rock Limited for a gross consideration of £10.2m, to be satisfied in cash on completion. The sale will be made on a cash-free and debt-free basis. Completion will occur on 16 April 2013.
As well as Classic Rock and Metal Hammer magazines, the sale includes associated periodicals Prog and AOR, as well as branded events The Golden Gods and The Classic Rock Roll of Honour.
The sale of these activities is consistent with Future's strategy of active portfolio management and will be followed by a further review of the cost base of the business. Future generates nearly 25% of its revenues from digital markets and has prioritised the development of international digital brands in Technology, Leisure and Sport.
The net sale proceeds will be used to reduce the level of bank debt and provide additional headroom under the Group's new credit facility for further strategic digital investment. Future retains a portfolio of music-making titles and the musicradar.com website.
For the year ended 30 September 2012, the revenue, gross contribution and adjusted pre-tax profit attributable to these brands were £8.6m, £1.8m and £0.2m respectively. At 30 September 2012, the gross assets relating to these brands were £6.6m.
Mark Wood, Future's Chief Executive, said: "Classic Rock and Metal Hammer generate revenues predominantly from print. Their sale is in line with Future's strategy of prioritising products which are international and digital. These two iconic print brands have not been central to that strategy and will thrive within a broader music business."
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Note:
Adjusted pre-tax profit is calculated as the gross contribution from the relevant assets less an allocation of central overheads and net interest payable based on the pro rata revenues arising from the assets.
Enquiries
Future plc
Mark Wood, Chief Executive Tel: 020 7042 4007
Graham Harding, Chief Financial Officer Tel: 01225 788101
Chris Taylor, Director of Communications Tel: 020 7042 4033/07980 221942
Brunswick Group
Jon Coles / Andy Rivett-Carnac Tel: 020 7404 5959
Numis Securities, Financial Adviser and Broker
Lorna Tilbian/Nick Westlake/Mark Lander Tel: 020 7260 1345
Team Rock Ltd
Billy Anderson, Chief Executive Tel: 07813 061 577
About Future plc:
· Future plc is an international media group and leading digital publisher, listed on the London Stock Exchange (symbol: FUTR).
· We have operations in the UK, US and Australia creating 200 publications, apps, websites and events.
· We hold market-leading positions in Technology, Entertainment, Guitar, Creative and Sport & Auto sectors.
· We attract more than 50 million monthly global unique users to our websites, which include techradar.com, gamesradar.com, bikeradar.com and musicradar.com.
· Future sells more than 24 million magazines every year, that's 45 magazines sold every minute. Our most well-known brands include T3, Cycling Plus, Total Film and Official Xbox Magazine.
· We deliver over 100 digital editions, selling over three million products powered by our own app creation software, FutureFolio.
· Future exports or syndicates over 200 publications to over 90 countries, making us the UK's number one exporter and licensor of magazine content.
· Future is currently Consumer Digital Publisher of the Year for both the Association of Online Publishers and the Professional Publishers Association.
