Future plc
Interim Management Statement – 16 July
Future plc (LSE : FUTR), the international media group and leading digital business, today announces its Interim Management Statement for the period from 1 October 2013 to the date of this announcement, incorporating the Group's third quarter for the three months ended 30 June 2014.
Trading performance
In the three months to June 2014 trading continued to be in line with the trends seen in the first half of the financial year. The expected slowdown in print copy sales continued while normalised digital and diversified revenues are up 10% year on year.
During the period a major US print magazines distributor filed for Chapter 11 bankruptcy protection resulting in an exceptional charge of £1.5m, largely arising from bad debts, in H2 2014.
Financial position
Net debt at 30 June 2014 was £14.2m. Following the receipt of funds from the disposal of Sport and Craft titles, the Board expects to be in a net cash position at the year end.
The Group has finalised a new revised facility of up to £12m until 31 December 2015.
Transformation Programme and outlook
The Group continues to make good progress on the transformation programme which was initiated in Q2. The collective consultation process has now been completed. As previously reported, this is expected to result in a headcount reduction of over 170 roles in the UK in addition to over 40 roles already exited in the US.
Future expects to reduce its cost base following the headcount reductions and other cost savings across the Group by some £6m in the next financial year.
In the near term trading continues to be challenging, with minimal forward visibility. The business does not foresee a change in the financial performance this financial year with the impact of the transformation programme not expected to be material until 2015.
Zillah Byng-Maddick, Future plc Chief Executive, said:
"We have taken the necessary action to strengthen the balance sheet and secured new debt facilities to enable the business to be fundamentally restructured. As a result, the Group is now in a much more stable position.
"We are making good progress - in line with our original plans - but organisational change of this scale takes time. Against a backdrop of a difficult trading environment, we don't expect to see any material uplift in our financial performance until the next financial year."
Enquiries
Future plc:
Zillah Byng-Maddick, Chief Executive Tel: 020 7042 4433
Gemma Combellack, Communications Executive Tel: 020 7042 4036/07788 576505
About Future:
· Future plc is an international media group and leading digital business, listed on the London Stock Exchange (symbol: FUTR).
· Future has been named Consumer Digital Publisher of the Year for three years in a row by the Association of Online Publishers (2011, 2012, 2013) and has been named the Professional Publishers Association Digital Publisher of the Year for two consecutive years (2012, 2013).
· 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, Games, Guitar, Creative and Sport & Auto sectors.
· We attract more than 57 million monthly global unique users to our websites, which include techradar.com,gamesradar.com, bikeradar.com and musicradar.com.
· Future sold more than 19 million magazines last year, that's 37 magazines sold every minute. Our most well-known brands include T3, Cycling Plus, Total Film, Mollie Makes and Xbox: The Official Magazine.
· Future has developed its own app-creation software, FutureFolio. We produce over 100 digital editions, and have sold over 5 million digital issues in the last year.
· Future exports or syndicates 218 publications to over 92 countries, making us the UK's number one exporter and licensor of magazine content.
· Follow Future plc on Twitter at www.twitter.com/futureplc and on LinkedIn at www.linkedin.com/company/future-publishing
