Future posts operating loss as transition to digital continues

29th May 2014 08:33

- Disappointing results as firm transitions to digital publication- Disposal of Sport and Craft titles - Streamlining business, and focus on consumer technology marketsMedia group and digital publisher Future said it was disappointed with its interim results, as it battles against difficult trading conditions, and announced the sale of Sport and Craft titles to Immediate Media for up to £24m pounds. The Bath-based publisher posted an operating loss, pre exceptional items of £2.4m, for the half-year ended March 31st 2014 versus a profit of £0.7m a year earlier. Revenue for the period fell to £48.7m from £54.6m.The group booked an impairment charge of £26m in the period on the carrying value of print assets. Future, which sold 24m magazines last year, said UK revenues, which represent 85% of group revenue, rose 2% to £41.5m. US revenue tumbled 14% to £7.3m. Future saw strong growth in Digital and Diversified revenues, which rose 9% to £16.8m.Chairman Peter Allen said: "Whilst the board is disappointed with the results for the first half of the year, we have already taken significant actions to address the fundamental issues. Since appointing Zillah Byng-Maddick as Chief Executive Officer April 1st we have completed a thorough review of the organisation. "In the UK we are currently consulting with staff on a transformative restructuring programme which the board believes will simplify our business, allowing it to thrive in an increasingly digital and mobile age, with a renewed focus on revenue and margin growth in core sectors."Future has agreed to sell a number of its Sport titles and the Craft titles to Immediate Media Company Bristol for £24m as it streamlines the business and focuses on consumer technology markets.Net debt reduced to £7.8m from £16.7m a year earlier. CJ