Interim results - half-year ended 31 March 2013

 

 

Future plc

Interim results for the half-year ended 31 March 2013

 

Future plc (LSE: FUTR), the international specialist media group and leading digital publisher,today announces its unaudited interim results for the half-year ended 31 March 2013. The analysis in this announcement is, except where it refers to statutory results, based on normalised results. An analyst presentation will be held today at 9am at the offices of Numis, 10 Paternoster Square, London EC4M 7LT.

 

Financial Highlights

 

	Statutory			Normalised*
	H1	H1	H1		H1
	2013	2012	2013		2012
	£m	£m	£m		£m
Revenue	54.6	61.1	49.4		50.1
EBITDAE**	2.2	2.5	1.0		1.3
Operating profit pre exceptional items (EBITE)***	0.7	1.2	(0.5)		0.1
Adjusted earnings per share****	(0.2)p	(0.1)p	(0.5)p		(0.3)p
Net debt	16.7	16.1

 

Summary

 

·      Group revenues down 1%, EBITDAE down 23%, impacted by cyclical decline in Games market

·      Group digital revenues up 33% year-on-year and now represent 25% of Group revenues

·      US operations on track to return to EBITDAE profitability in FY13

·      New credit facility for four years to February 2017

·      Sale of UK Rock titles in April for £10.2m strengthens the balance sheet to support continued investment in the transition to a predominantly digital business

 

Digital highlights

 

·      Unique users up 46% year-on-year to 51.4 million a month

·      Page views up 38% year-on-year to 299 million a month

·      Digital advertising now represents 57% of total advertising, up from 47% a year ago

·      Over five million digital editions sold across all platforms

·      Over 300,000 subscribers to digital editions, up over 75% since March 2012

·      FutureFolio signed up to power 80 digital magazines for third parties

 

Outlook

·      Momentum building for strong second half despite the macro environment remaining challenging

·      New initiatives adding to revenues in H2 and beyond

·      Full year statutory results on track to be broadly in line with our expectations

 

 

Mark Wood, Chief Executive, said:

 

"We experienced some difficult trading conditions in the first half, above all in the Games market, which has been in a trough ahead of new console releases from Microsoft and Sony. However, the first half figures mask tremendous progress towards a predominantly digital business, reflected in a 33% growth in digital revenues.

 

"Our refocusing of the US business is on track to meet our commitment to return the US to EBITDAE profitability this year.

 

"Despite continued challenging conditions, and the impact of the Games cycle, we are seeing increased momentum on commercial revenues, contributions from new initiatives and bottom line improvements from cost efficiencies. These all point to a strong performance in the second half of the year, much as we saw in FY12, and we believe we are on track to achieve results broadly in line with our expectations."

 

Enquiries:

Future plc
Mark Wood, Chief Executive                                           Tel: 020 7042 4007
Graham Harding, Chief Financial Officer                           Tel: 01225 788101/020 7042 4433
Chris Taylor, Director of Communications                         Tel: 020 7042 4033/07980 221942

Brunswick:
Jon Coles, Andy Rivett-Carnac                                        Tel: 020 7404 5959 

Notes
* Normalised results are presented to better reflect the current size and structure of the business and give a better indication of the performance of the ongoing business. The normalised results exclude revenues and costs relating to activities closed or divested between 1 October 2011 and 17 April 2013, the date of completion of the UK Rock titles, but include any new activities launched in that period. Activities closed or divested between 1 October 2011 and 17 April 2013 include Classic Rock & Metal Hammer, Trucking, Qore Digital Magazine, Xbox World, Nintendo Power, PlayStation US, and the US music titles Revolver, Guitar Aficionado & Guitar World. Closed or divested activities are not such that they fall to be classed as discontinued under IFRS.

** EBITDAE represents earnings before interest, tax, depreciation, amortisation and exceptional items.

*** EBITE represents earnings before interest, tax and exceptional items.

**** Adjusted earnings per share exclude only exceptional items and related tax effects.

 

The most significant foreign currency affecting the Group is the US Dollar. The average exchange rate for the period was $1.5801=£1 (2012: $1.5719=£1), representing a 1% weakening of the US Dollar against Sterling.

 

About Future:

·      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 more than 200 publications, apps, websites and events. 

·      We hold market-leading positions in Technology, Entertainment, Music, Creative and Sport & Auto sectors. 

·      We attract more than 51 million monthly global unique users to our websites, which include techradar.com, gamesradar.com, bikeradar.com and musicradar.com.

·      Future sold more than 24 million magazines last year, that's 45 magazines sold every minute. Our most well-known brands include T3, Cycling Plus, Total Film, Mollie Makes and Official Xbox Magazine. 

·      Future has developed its own app-creation software, FutureFolio. We produce over 100 digital editions, and have now sold over five million digital copies.

·      Future exports or syndicates 225 publications to over 89 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 and in May was named Media Company of the Year at the British Media Awards.

 

 

 

Contents

Chief Executive's Statement                                                                                        p4

Interim statement                                                                                                        p6

Consolidated income statement                                                                                  p12

Consolidated statement of comprehensive income                                                     p13

Consolidated statement of changes in equity                                                              p14

Consolidated balance sheet                                                                                        p15

Consolidated cash flow statement                                                                               p16

Notes to the consolidated cash flow statement                                                            p17

Basis of preparation                                                                                                    p18

Notes to the financial information                                                                               p19

Statement of Directors' responsibilities                                                                       p25

Independent review report to Future plc                                                                     p26

Normalised results                                                                                                       p27

Notes to the normalised results                                                                                   p28

Chief Executive's Statement

 

We faced difficult trading conditions in the first half, but the results mask further significant progress in the transition of Future towards becoming a predominantly digital business. Digital revenues grew by 33% and digital advertising now accounts for 57% of our total advertising revenue, up from 47% a year ago. In March we achieved a new record of $1.2m in sales of digital titles on tablets such as the iPad. 

 

Overall, Group revenues were down by 1% to £49.4m and EBITDAE was down £0.3m, or 23%. These figures reflect a challenging trading environment in the UK, above all in the Games market, which entered a trough ahead of new console launches by Microsoft and Sony in 2013 and 2014. We anticipate a steady recovery in this area of the business as those launches approach. This view is supported by forecasts in PricewaterhouseCoopers' 'Global Entertainment and Media Outlook Report: 2012-2016'. 

 

We are currently seeing a general build-up of momentum on commercial revenues across the business, including results from initiatives to diversify revenues across events, FutureFolio software licensing, brand marketing, programmatic ad trading and increased bookazine production. A number of these will contribute in the second half.

 

Our US operations now generate 43% of their overall revenues and 77% of their advertising revenues from digital markets, and remain on track to return to EBITDAE profitability in FY13. 

 

Following the sale of the UK Rock titles - Classic Rock and Metal Hammer - for £10.2m in April, we have undertaken a review of our operational structures to identify further efficiencies which will benefit the Group in the second half and beyond.

 

Net debt at the end of March was £16.7m before the cash inflow from the sale of the UK Rock titles. The sale proceeds, combined with the agreement of a new credit facility with Barclays and Santander, have enabled us to reduce our net debt position and interest payments and improve the balance sheet.

 

All these factors mean we expect a strong second half in FY13, much as we saw in FY12, and we remain on track to deliver results broadly in line with our expectations.

 

The Board has agreed that there will be no interim dividend but that a final dividend will be reviewed in the context of the financial performance of the Group in the second half of the financial year.

 

Positioning Future for Growth

 

Our twin-track digital growth strategy is based on growing our online audience and building revenues in the fast-expanding tablet markets. Visits to our websites have increased by 46% to 51.4 million a month over the past year and page views have increased by 38% to almost 300 million a month. More importantly, we have steadily improved monetisation of that global audience, reflected in the sustained growth in digital advertising revenues, which rose 18% year-on-year. We are now seeing some encouraging trends on key Games sites such as GamesRadar and PC Gamer in the US. In the UK our fastest traffic growth is on B2B sites such as TechRadar Pro, aimed at small and medium enterprises, and Creative Bloq, our website for digital design professionals, which has hit one million unique users a month.

 

Revenues from sales of digital editions on tablets like the iPad have increased by 56% year-on-year and we are planning further new releases in the coming months. Subscriber numbers have increased by over 75% to 311,000 and we have passed the milestone five million sales mark cumulatively. 

 

Future remains the biggest publisher on the iPad in the UK, producing 30 of the top-grossing 200 titles according to iTunes data in March. In the US, where our MacLife digital magazine sells almost 80,000 a month, Future accounts for 14 of the top 200 titles, putting it in third place behind Hearst and Time. Our recent launches have included Photography Week, which has been topping the category on Apple's Newsstand in the US. We are following that with LeNs, a US Photography monthly, which has already attracted strong pre-launch interest on social networks.

 

New Revenue Drivers

 

We have developed a number of new and complementary revenue drivers over the past year, some of which will contribute to performance in the second half.

 

As digital advertising evolves, Future has positioned itself as a leading innovator, creating a whole new business in high-end brand marketing campaigns and native content. We leverage our online reach, our multi-media production capability and our skills at increasing audience engagement. In the US we have managed major campaigns for Hyundai and Bethesda in the past year and are working with both again in 2013. In the UK we are working with Samsung, Tesco and O2.

 

We are developing our expertise in automated programmatic advertising, which at one level enables us to monetise unsold digital inventory but, at another, is a means for advertisers to reach target audiences with increased precision, generating higher returns. Our revenues from programmatic trading have grown over 60% year-on-year. 

 

A third new revenue stream is from events, where we are evolving new ways to engage and monetise our audiences. Conferences in core business areas such as technology for business and digital design are scheduled for the coming months and we will stage consumer-focused shows around Photography, Technology and Sport in the year ahead.  

 

FutureFolio, the software we developed to produce our own digital editions for the iPad, is now growing as a licensing business to third parties. FutureFolio is already used to produce digital magazines for Jamie Oliver and Auto Trader and recent new customer signings have included Ringier, the major European publisher.

 

In response to market demand, above all in Asia and North America, we have significantly increased production of bookazines, the timeless and premium-priced compendium titles which typically range from smartphone and tablet guides to tutorial material on photography, crafts, games and sports. Our production will increase significantly year-on-year in the second half and we are now printing in China for the Asian market.

 

Finally, we are focusing on developing content for women as a growth area of the business and have appointed Jo Morrell, a senior executive with almost twenty years' experience publishing leading brands for women, to lead this sector. As well as heading our female Creative division, Jo will focus on developing female content across other areas of the Future portfolio and growing the Mollie Makes brand as a global asset.

 

Outlook

 

Despite continued challenging conditions, and the impact of the Games cycle, we are seeing increased momentum on commercial revenues, contributions from new initiatives and bottom line improvements from cost efficiencies. These all point to a strong performance in the second half of the year, much as we saw in FY12, and we believe we are on track to achieve results broadly in line with our expectations. 

 

 

 

 

 

Interim statement

 

Statutory results for half-year to 31 March 2013

 

Statutory results for the period	2013 £m	2012 £m
Revenue	54.6	61.1
EBITDAE	2.2	2.5
Depreciation charge	(0.5)	(0.5)
Amortisation of intangible assets	(1.0)	(0.8)
EBITE	0.7	1.2
Exceptional items	-	(1.0)
EBIT (Operating profit)	0.7	0.2
Net finance costs	(1.0)	(0.9)
Pre-tax loss	(0.3)	(0.7)
Earnings per share (pence)	(0.2)	(0.3)
Adjusted earnings per share (pence)	(0.2)	(0.1)
Dividends relating to the period (pence per share)	-	-

 

 

Sale of Classic Rock and Metal Hammer

 

On 17 April 2013 we completed the sale of the UK Rock titles, Classic Rock, Metal Hammer and associated brand extensions, to Team Rock Limited for a gross consideration of £10.2m, satisfied in cash. As the profit on sale occurred after the end of the period under review it will be included in the results for the full year ending 30 September 2013.

 

In the meantime, and in order to provide a better indication of the performance of the ongoing business, we have excluded the results of the UK Rock titles at the gross contribution level from the normalised analysis set out below.

 

 

Normalised results for half-year to 31 March 2013

 

The normalised results for the Group, and a reconciliation to the statutory results above, are set out on pages 27 to 29.

 

Normalised results are presented to better reflect the current size and structure of the business. The normalised results exclude revenues and costs relating to activities closed or divested between 1 October 2011 and 17 April 2013, the date of completion of the sale of the UK Rock titles, but include any new activities launched in that period.

 

Normalised results for the period	2013 £m	2012 £m
Revenue	49.4	50.1
EBITDAE	1.0	1.3
Depreciation charge	(0.5)	(0.5)
Amortisation of intangible assets	(1.0)	(0.7)
EBITE	(0.5)	0.1
Exceptional items	-	(1.4)
EBIT (Operating profit)	(0.5)	(1.3)
Net finance costs	(1.0)	(0.9)
Pre-tax loss	(1.5)	(2.2)
Adjusted earnings per share (pence)	(0.5)	(0.3)

 

 

Review of operations

 

The review of operations is based primarily on a comparison of normalised half-year results for the six months ended 31 March 2013 with those for the six months ended 31 March 2012. Unless otherwise stated, change percentages relate to a comparison of these two periods. 

 

Key Performance Indicators

 

An update on the key performance indicators is given below:

 

	Half-year 2013	Half-year 2012	Year 2012
Corporate KPIs
EBITDAE	£1.0m	£1.3m	£6.3m
Year-on-year movement in EBITDAE	-23%	0%	85%
EBITE	(£0.5m)	£0.1m	£3.8m
Year-on-year movement in EBITE	-600%	-50%	192%
Digital KPIs
Number of unique users logging onto our websites per month (millions)	51	35	51
Year-on-year movement in digital revenues	33%	31%	25%
Number of digital magazines sold per month (thousands)	432	194	239
Digital subscriber base (thousands)	311	175	235
Print KPIs
Number of magazines sold per month (millions)	1.5	1.7	1.7
Print subscriber base (thousands)	681	791	727
Copies sold as a percentage of copies printed (including subscriptions)	52%	55%	54%
Year-on-year movement in print revenues	-9%	-10%	-10%

 

 

Analysis of revenue for half-year to 31 March

 

	2013 £m	2012 £m	Change %
Digital	12.4	9.3	+33%
Print	37.0	40.8	-9%
Total revenue	49.4	50.1	-1%

 

Whilst Group revenue overall fell by 1% (1% in constant currencies) to £49.4m, digital revenues generated from our UK- and US-based businesses continued to show strong growth and were up 33%. Digital revenues now represent 25% of the Group revenues, with digital advertising now representing 57% of our total advertising revenues. In contrast print-based revenues continued to decline in the UK and the US.

 

On a geographic basis, the revenues arising from the UK-based business, which now represents 83% of the Group in revenue terms, once again continued to be resilient in tough market conditions with increases in digital revenues offsetting the declines in print.

 

Revenue from the US-based business fell by 8% impacted by the continuing decline in print-related revenues arising from circulation and advertising. This decline was not unexpected and has been more than offset by planned reductions in the cost base.

 

	2013 £m	2012 £m	Change %
UK	41.3	41.3	-
US	8.4	9.1	-8%
Intra-group	(0.3)	(0.3)	-
Total revenue	49.4	50.1	-1%

 

 

 

 

 

Analysis of EBITDAE for half-year to 31 March

 

	2013 £m	2012 £m	Change %
UK	2.3	3.1	-26%
US	(1.3)	(1.8)	+28%
Total EBITDAE	1.0	1.3	-23%

 

Group EBITDAE fell by 23% in the half-year, with an improvement in the US-based business of £0.5m largely offsetting the shortfall in the UK-based business of £0.8m. Further detail on these movements is given in the following sections of the statement.

 

 

UK-based performance in half-year

 

	2013 £m	2012 £m	Change %
Circulation revenue	25.9	25.8	0%
Advertising revenue	11.2	11.3	-1%
Customer publishing	2.2	2.2	0%
Licensing, events and other	2.0	2.0	0%
Total revenue	41.3	41.3	0%
EBITDAE	2.3	3.1	-26%
EBITDAE margin	5.6%	7.5%
Depreciation	(0.4)	(0.4)	0%
Amortisation	(0.6)	(0.3)	+100%
EBITE	1.3	2.4	-46%
EBITE margin	3.1%	5.8%

 

UK revenues continued to be resilient and were flat for the half-year. Within this we saw digital revenues increase by 33%, offsetting the declines in print-related revenues overall, albeit at a lower margin at this point in the transition.

 

Circulation revenue was flat overall, with the largest negative impact arising from print newstrade, which was down 3% driven partly by the impact of Hurricane Sandy on our exports to the US. This decline was offset by increases in digital copy sales, which have increased to almost 10% of total circulation revenue in the half-year.

 

Advertising revenues overall were down 1%. Within this, digital advertising revenues increased by 17%, whilst print advertising fell 14%.

 

UK performance by sector is set out in the table below:

 

	2013 Revenue £m	2013 Contrib'n £m	2013 Margin %	2013 % of Revenue	2012 Revenue £m	2012 Contrib'n £m	2012 Margin %
Entertainment	8.7	1.7	20%	21%	10.2	2.7	26%
Technology	9.9	2.7	27%	24%	9.7	2.5	26%
Music	4.4	0.9	20%	11%	4.8	1.2	25%
Creative	10.6	2.6	25%	26%	9.4	2.7	29%
Sport & Auto	7.7	1.9	25%	18%	7.2	1.5	21%
	41.3	9.8	24%	100%	41.3	10.6	26%
Overheads		(7.5)				(7.5)
EBITDAE		2.3	6%			3.1	8%

 

Whilst the Entertainment sector has been tough as a result of the low levels of activity in games hardware and software, the Sport & Auto sector - which includes our Cycling activities - has continued to grow revenues, contribution and margin.

 

 

US-based performance in half-year

 

	2013 $m	2012 $m	Change %
Circulation revenue	4.6	5.7	-19%
Advertising revenue	5.7	5.7	0%
Customer publishing	2.5	2.4	+4%
Licensing, events and other	0.6	0.5	+20%
Total revenue	13.4	14.3	-6%
EBITDAE	(2.1)	(2.8)	+25%
EBITDAE margin	(15.7%)	(19.6%)
Depreciation	(0.2)	(0.2)	0%
Amortisation	(0.7)	(0.5)	+40%
EBITE	(3.0)	(3.5)	+14%
EBITE margin	(22.4%)	(24.5%)

 

US revenues totalled $13.4m, down 6% on the prior year. Within this, digital revenues were up 39% and now represent 43% of total revenues (up from 29% a year ago).

 

Circulation revenue overall fell by 19%, with the largest negative impact arising from print copy sales which were down 28% again partly impacted by Hurricane Sandy in October. Advertising revenues were flat, with a 26% increase in digital advertising offsetting a 41% fall in print advertising. Digital advertising in the US now represents 77% of total advertising revenues.

 

At the EBITDAE level, planned cost savings have more than offset the reduced revenues, which has resulted in the EBITDAE loss reducing by 25% year-on-year.

 

US performance by sector is set out in the table below:

 

	2013 Revenue $m	2013 Contrib'n $m	2013 Margin %	2013 % of Revenue	2012 Revenue $m	2012 Contrib'n $m	2012 Margin %
Entertainment	7.3	1.0	14%	55%	8.2	1.0	12%
Technology	4.6	-	0%	34%	4.8	0.5	10%
Music	-	-	-	-	0.1	(0.1)	(100%)
Creative	0.9	(0.2)	(22%)	7%	0.7	(0.2)	(29%)
Sport & Auto	0.6	(0.1)	(17%)	4%	0.5	(0.1)	(20%)
	13.4	0.7	5%	100%	14.3	1.1	8%
Overheads		(2.8)				(3.9)
EBITDAE		(2.1)	(16%)			(2.8)	(20%)

 

We have seen slightly reduced levels of contribution driven by the transition from print to digital particularly in the area of Technology. These reductions have been more than offset by the planned savings in overheads in the first half.

 

 

Seasonality of the business

 

In the last two years, the ratio of Group EBITDAE across H1:H2 has been 21%:79% (2012) and 38%:62% (2011). The weighting towards the second half of the year is expected to continue this year, driven by:

 

·      Phasing of commercial revenues, particularly in the US, driven by high-end brand marketing campaigns.

·      Volume of planned activity, including bookazines.

·      Seasonality of certain sectors of the business, eg Cycling.

 

 

Net finance costs

 

Net finance costs were £1.0m (2012: £0.9m) reflecting increased amortisation of bank fees relating to refinancing as a result of the new Credit Agreement signed on 22 February 2013.

 

Taxation

 

The tax charge for the six months ended 31 March 2013 is based on the effective rate, estimated on a full year basis by territory, being applied to the taxable profits or losses of each territory for the six months ended 31 March 2013.

 

 

Cash flow and net debt

 

Net debt at 30 September 2012 was £14.1m. During the period there was a cash inflow from operations before cash exceptional items of £1.9m (2012: cash inflow of £2.0m). Cash inflow from the sale of assets amounted to £nil (2012: £1.2m).

 

During the half-year cash outflows totalled £4.4m (2012: £7.9m) in respect of the following items:

 

·      £1.3m (2012: £3.5m) in exceptional costs

·      £1.3m (2012: £1.5m) in respect of capital expenditure

·      £0.7m (2012: £0.7m) in net interest payments

·      £0.8m (2012: £0.2m) in net taxation payments

·      £0.3m (2012: £0.4m) in bank arrangement fees

·      £nil (2012: £1.6m) in dividends payable

 

Exchange and other movements accounted for the balance of cash flows.

 

As a result of the above net debt at 31 March 2013 was £16.7m, an increase of 18% from September 2012.

 

 

Bank covenants

 

The Group was in compliance with all its covenants at 31 March 2013 as set out in the following table:

 

Covenant	31 March 2013	Limit
Net debt: EBITDA	1.87	Less than 2.5 times
EBITDA: Net interest	7.07	More than 4 times

 

The Group agreed a new four year £31m Credit Facility with Barclays and Santander on 22 February 2013. This was made up of a term loan of £6m and a revolving credit facility of £25m. Following the sale of the UK Rock titles in April 2013 the term loan has been repaid in full.

 

The fees relating to the new Credit Facility totalled £0.5m and will be amortised over the term of the facility. Interest payable under the Credit Facility is calculated as the cost of three month LIBOR plus an interest margin of between 2.0% and 3.25%, dependent on covenant ratio. The key covenants are set out in the following table:

 

Bank Covenant
Net debt/EBITDA	Less than 2.5 times at 31 March 2013 and 30 June 2013, less than 2.25 times at 30 September 2013 and 31 December 2013 and less than 2.0 times thereafter.
EBITDA/Interest	More than 4.0 times
Capital expenditure	125% of specific projected amounts for FY13 - FY17

 

 

Interim dividend

 

The Board has agreed that there will be no interim dividend but that a final dividend will be reviewed in the context of the financial performance of the Group in the second half of the financial year.

 

 

 

 

 

 

Risks that may impact the second half of the financial year

 

The principal risks and uncertainties that affect the Group on an ongoing basis are described in our Annual Report 2012 (on Pages 20 and 21), which is available at www.futureplc.com. 

 

The principal risks that may impact the Group's performance during the second half of the financial year, and which could cause actual results to differ from expected and historical results, are:

 

Macro-economic environment: the macro-economic environment continues to be challenging and, as highlighted above, 2013 trading conditions have remained tough, particularly in the Games sector. Digital sales growth could slow, or print sales declines could accelerate beyond those forecast.

 

Innovation: Future continues to innovate, particularly with its FutureFolio software for producing interactive tablet editions. Future has applied for patent protection in this crowded technology market but other similar technology exists and may also be developed further by third parties.

 

IT systems and security: Future is reliant on its IT systems for production of its magazines and operation of its websites. Future seeks to ensure that its systems comply with best practice as regards security, and is investing in its IT systems and security to minimise the likelihood of any website being hacked.

 

IP: digital piracy is a growing problem as tablet sales grow. However, Future has achieved good success in take-down of unauthorised copies of our magazines to date.

 

Property: we have been successful in sub-letting vacant property in New York. However, part of our San Francisco property and a property in Bath remain available for sub-letting in the second half and we are continuing to actively market these properties.

 

Peter Allen, Chairman

Mark Wood, Chief Executive

Graham Harding, Chief Financial Officer

Manjit Wolstenholme, Senior independent non-executive Director

Seb Bishop, Independent non-executive Director

Mark Whiteling, Independent non-executive Director                                                       

22 May 2013

 

 

Consolidated income statement

for the six months ended 31 March 2013

 

 

		6 months to 31 March 2013	6 months to 31 March 2012	12 months to 30 September 2012
	Note	£m	£m	£m
Revenue	1,2	54.6	61.1	123.5
Operating profit before exceptional items	1	0.7	1.2	6.8
Exceptional items	4	-	(1.0)	(3.6)
Operating profit	3	0.7	0.2	3.2
Net finance costs	6	(1.0)	(0.9)	(2.1)
(Loss)/profit before tax	1	(0.3)	(0.7)	1.1
Tax on (loss)/profit	7	(0.3)	(0.4)	(0.9)
(Loss)/profit for the period attributable to owners of the parent		(0.6)	(1.1)	0.2

 

 

 

Earnings per 1p Ordinary share

 

		6 months to 31 March 2013	6 months to 31 March 2012	12 months to 30 September 2012
	Note	pence	pence	pence
Basic (loss)/earnings per share	9	(0.2)	(0.3)	0.1
Diluted (loss)/earnings per share	9	(0.2)	(0.3)	0.1

 

Consolidated statement of comprehensive income

for the six months ended 31 March 2013

 

 

		6 months to 31 March 2013	6 months to 31 March 2012	12 months to 30 September 2012
		£m	£m	£m
(Loss)/profit for the period		(0.6)	(1.1)	0.2
Items that may be reclassified to the consolidated income statement
Currency translation differences		(0.1)	-	0.1
Cash flow hedges
- reclassified to income statement		-	0.1	0.1
Other comprehensive (loss)/income for the period		(0.1)	0.1	0.2
Total comprehensive (loss)/income for the period attributable to owners of the parent		(0.7)	(1.0)	0.4