RNS Number : 2653F
Future PLC
22 May 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


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


Consolidated statement of changes in equity

for the six months ended 31 March 2013                                                 

 


 

 

Issued share capital

Share

premium

account

Merger reserve

Treasury reserve

Cash flow hedge reserve

Accumulated losses

Total equity


Note

£m

£m

£m

£m

£m

£m

£m

Balance at 1 October 2012


3.3

24.8

109.0

(0.3)

-

(74.2)

62.6

Loss for the period


-

-

-

-

-

(0.6)

(0.6)

Currency translation differences


-

-

-

-

-

(0.1)

(0.1)

Other comprehensive loss for the period


-

-

-

-

-

(0.1)

(0.1)

Total  comprehensive loss for the period


-

-

-

-

-

(0.7)

(0.7)

Share schemes

- Value of employees' services

5

 

-

 

-

 

-

 

-

 

-

 

0.1

 

0.1

Balance at 31 March 2013


3.3

24.8

109.0

(0.3)

-

(74.8)

62.0










Balance at 1 October 2011


3.3

24.5

109.0

(0.3)

(0.1)

(73.1)

63.3

Loss for the period


-

-

-

-

-

(1.1)

(1.1)

Cash flow hedges

-reclassified to income statement


 

-

 

-

 

-

 

-

 

0.1

 

-

 

0.1

Other comprehensive income for the period


-

-

-

-

0.1

-

0.1

Total comprehensive income/(loss) for the period


 

-

 

-

 

-

 

-

 

0.1

 

(1.1)

 

(1.0)

Interim dividend relating to 2011

8

-

-

-

-

-

(1.6)

(1.6)

Share schemes

- Value of employees' services

5

 

-

 

-

 

-

 

-

 

-

 

0.1

 

0.1

New share capital subscribed


-

0.1

-

-

-

-

0.1

Balance at 31 March 2012


3.3

24.6

109.0

(0.3)

-

(75.7)

60.9










Balance at 1 October 2011


3.3

24.5

109.0

(0.3)

(0.1)

(73.1)

63.3

Profit for the year


-

-

-

-

-

0.2

0.2

Currency translation differences


-

-

-

-

-

0.1

0.1

Cash flow hedges

-reclassified to income statement


-

-

-

-

0.1

-

0.1

Other comprehensive income for the year


-

-

-

-

0.1

0.1

0.2

Total comprehensive income for the year


 

-

 

-

 

-

 

-

 

0.1

 

0.3

 

0.4

Interim dividend relating to 2011

8

-

-

-

-

-

(1.6)

(1.6)

Share schemes

- Value of employees' services

 

5

 

-

 

-

 

-

 

-

 

-

 

0.2

 

0.2

New share capital subscribed


-

0.3

-

-

-

-

0.3

Balance at 30 September 2012


3.3

24.8

109.0

(0.3)

-

(74.2)

62.6



Consolidated balance sheet

as at 31 March 2013

 

 



31 March 2013

31 March 2012

30 September 2012


Note

£m

£m

£m

Assets





Non-current assets





Property, plant and equipment

10

2.6

3.2

2.8

Intangible assets - goodwill


86.4

92.6

92.3

Intangible assets - other


2.8

2.6

3.0

Deferred tax


0.8

1.0

0.8

Total non-current assets


92.6

99.4

98.9






Current assets





Inventories


2.1

3.0

1.9

Trade and other receivables


18.4

19.8

20.3

Cash and cash equivalents


6.6

9.0

8.5

Assets classified as held for sale

11

6.2

-

-

Total current assets


33.3

31.8

30.7

Total assets


125.9

131.2

129.6






Equity and liabilities





Equity





Issued share capital

12

3.3

3.3

3.3

Share premium account


24.8

24.6

24.8

Merger reserve


109.0

109.0

109.0

Treasury reserve


(0.3)

(0.3)

(0.3)

Accumulated losses


(74.8)

(75.7)

(74.2)

Total equity


62.0

60.9

62.6






Non-current liabilities





Financial liabilities - interest-bearing loans and borrowings


 

4.9

 

3.3

 

1.7

Financial liabilities - derivatives


0.1

0.3

0.2

Deferred tax


1.3

1.8

1.3

Provisions


3.4

1.6

4.1

Other non-current liabilities


1.5

1.9

1.3

Total non-current liabilities


11.2

8.9

8.6






Current liabilities





Financial liabilities - interest-bearing loans and borrowings


 

18.4

 

21.8

 

20.9

Financial liabilities - derivatives


0.2

0.3

0.2

Trade and other payables


27.6

32.8

31.0

Corporation tax payable


5.8

6.5

6.3

Liabilities directly associated with assets classified as held for sale

 

11

 

0.7

 

-

 

-

Total current liabilities


52.7

61.4

58.4

Total liabilities


63.9

70.3

67.0

Total equity and liabilities


125.9

131.2

129.6

 



Consolidated cash flow 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



£m

£m

£m

Cash flows from operating activities





Cash generated from/(used in) operations


0.6

(1.5)

2.1

Interest paid


(0.7)

(0.7)

(1.4)

Tax paid


(0.8)

(0.2)

(1.0)

Net cash used in operating activities


(0.9)

(2.4)

(0.3)






Cash flows from investing activities





Purchase of property, plant and equipment


(0.3)

(0.5)

(0.5)

Purchase of magazine titles, websites and trademarks


 

-

 

-

 

(0.1)

Purchase of computer software and website development


 

(1.0)

 

(1.0)

 

(1.9)

Disposal of magazine titles and trademarks


-

1.8

2.7

Costs of business disposals


-

(0.6)

(0.6)

Net cash used in investing activities


(1.3)

(0.3)

(0.4)






Cash flows from financing activities





Proceeds from issue of Ordinary share capital


-

0.1

0.3

Draw down of bank loans


2.5

16.9

17.9

Repayment of bank loans


(1.9)

(15.7)

(19.3)

Fees for restatement of bank facility


(0.3)

(0.4)

(0.5)

Repayment of finance leases


(0.1)

(0.1)

(0.1)

Equity dividends paid


-

(1.6)

(1.6)

Net cash generated from/(used in) financing activities


 

0.2

 

(0.8)

 

(3.3)






Net decrease in cash and cash equivalents


(2.0)

(3.5)

(4.0)

Cash and cash equivalents at beginning of period


8.5

12.5

12.5

Exchange adjustments


0.1

-

-

Cash and cash equivalents at end of period


6.6

9.0

8.5

 



Notes to the consolidated cash flow statement

for the six months ended 31 March 2013

 

A. Cash generated from/(used in) operations

 

The reconciliation of (loss)/profit for the period to cash flows generated from/(used in) operations is set out below:

 

 


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

Adjustments for:





Depreciation charge


0.5

0.5

1.1

Amortisation of intangible assets


1.0

0.8

1.5

Profit on disposal of magazine titles and trademarks


-

(0.4)

(1.2)

Share schemes

- Value of employees' services


 

0.1

 

0.1

 

0.2

Net finance costs


1.0

0.9

2.1

Tax charge


0.3

0.4

0.9

Profit before changes in working capital and provisions


 

2.3

 

1.2

 

4.8

Movement in provisions


(0.9)

(0.5)

1.8

(Increase)/decrease in inventories


(0.2)

0.5

1.6

Decrease in trade and other receivables


2.1

2.8

2.3

Decrease in trade and other payables


(2.7)

(5.5)

(8.4)

Cash generated from/(used in) operations


0.6

(1.5)

2.1

 

 

B. Analysis of net debt

 


1 October

2012

Cash flows

Non-cash changes

Exchange movements

31 March 2013


£m

£m

£m

£m

£m

Cash and cash equivalents

8.5

(2.0)

-

0.1

6.6

Debt due within one year

(20.9)

(0.5)

3.3

(0.3)

(18.4)

Debt due after more than one year

(1.7)

-

(3.2)

-

(4.9)

Net debt

(14.1)

(2.5)

0.1

(0.2)

(16.7)

 

 

 C. Reconciliation of movement in net debt

 


6 months to 31 March 2013

£m

6 months to 31 March 2012

£m

12 months to 30 September 2012

£m

Net debt at start of period

(14.1)

(11.8)

(11.8)

Decrease in cash and cash equivalents

(2.0)

(3.5)

(4.0)

Movement in borrowings

(0.5)

(0.7)

1.5

Non-cash changes

0.1

(0.2)

-

Exchange movements

(0.2)

0.1

0.2

Net debt at end of period

(16.7)

(16.1)

(14.1)

 



Basis of preparation

 

This unaudited condensed interim financial information for the six months ended 31 March 2013 has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' as adopted by the European Union, and in accordance with the Disclosure and Transparency Rules of the Financial Services Authority.

 

The interim financial information contained in the Interim Report should be read in conjunction with the Annual Report for the year ended 30 September 2012.

 

The Interim Report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006 and has not been audited.  A copy of the statutory financial statements for the year ended 30 September 2012 has been filed with the Registrar of Companies.  The auditors' report on those accounts was unqualified; it did not contain an emphasis of matter and did not contain any statements under section 498(2) or section 498(3) of the Companies Act 2006.  The auditors have carried out a review of the Interim Report and their review report is set out on page 26. 

 

Having considered the Group's funding position and latest forecasts, the Directors believe that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis in preparing the condensed interim financial information.

 

The accounting policies adopted, methods of computation and presentation are consistent with those set out in the Group's statutory accounts for the financial year ended 30 September 2012.

 

There has been no material impact from the adoption of new standards, amendments to standards or interpretations which are relevant to the Group.

 

 

 

 



Notes to the financial information

for the six months ended 31 March 2013

 

 

1.         Segmental reporting

The Group is organised and arranged primarily by geographical segment. The executive Directors consider the performance of the business from a geographical perspective, namely the UK and the US. The Australian business is considered to be part of the UK segment and is not separately reported due to its size.

 

Segment revenue


6 months to

31 March 2013

£m

6 months to

31 March 2012

£m

12 months to

30 September

2012

£m

UK

45.7

47.9

99.1

US

9.2

13.5

25.1

Revenue between segments

(0.3)

(0.3)

(0.7)

Total segment revenue

54.6

61.1

123.5

Transactions between segments are carried out at arm's length.

 

Segment EBITE


6 months to

31 March 2013

£m

6 months to

31 March 2012

£m

12 months to

30 September 2012

£m

UK

2.3

3.7

9.7

US

(1.6)

(2.5)

(2.9)

Total segment EBITE

0.7

1.2

6.8

EBITE is used by the executive Directors to assess the performance of each segment.

 

A reconciliation of total segment EBITE to (loss)/profit before tax is provided as follows:


6 months to

31 March 2013

£m

6 months to

31 March 2012

£m

12 months to

30 September 2012

£m

Total segment EBITE

0.7

1.2

6.8

Exceptional items

-

(1.0)

(3.6)

Net finance costs

(1.0)

(0.9)

(2.1)

(Loss)/profit before tax

(0.3)

(0.7)

1.1

 


Notes to the financial information

for the six months ended 31 March 2013

 

 

2.         Revenue

An additional analysis of the Group's revenue is shown below:


6 months to 31 March 2013

£m

6 months to 31 March 2012

£m

12 months to

30 September 2012

£m

Circulation

32.4

35.8

72.5

Advertising

16.0

18.6

37.1

Customer publishing

4.0

4.5

8.6

Licensing, events & other

2.2

2.2

5.3

Total

54.6

61.1

123.5

 

3.         Operating profit


6 months to

31 March 2013

£m

6 months to

31 March 2012

£m

12 months to

30 September 2012

£m

Revenue

54.6

123.5

Cost of sales

(39.1)

(43.5)

(84.5)

Gross profit

15.5

17.6

39.0

Distribution expenses

(4.0)

(5.0)

(9.6)

Administration expenses

(10.8)

(11.4)

(22.6)

Exceptional items

-

(1.0)

(3.6)

Operating profit

0.7

0.2

3.2

 

4.         Exceptional items


6 months to

31 March 2013

£m

6 months to

31 March 2012

£m

12 months to

30 September 2012

£m

Property costs

-

2.7

Restructuring and redundancy costs

-

1.4

2.1

Profit on disposal of magazine titles and trademarks

-

(0.4)

(1.2)

Total

-

1.0

3.6

 

The property costs relate to vacant property provisions made against surplus office space in the UK and US.

 

The restructuring and redundancy costs relate mainly to staff termination payments following the restructuring of the UK and US businesses in line with the Group's strategy.

 

The profit on disposal relates to the sale of the New York Music titles on 12 January 2012 and the sale of two UK based titles, Trucking and Truckstop News, on 18 May 2012.

 

 



Notes to the financial information

for the six months ended 31 March 2013

 

5.         Employees


6 months to

31 March 2013

£m

6 months to

31 March 2012

£m

12 months to

30 September 2012

£m

Wages and salaries

19.0

22.0

41.1

Social security costs

2.5

2.2

5.4

Other pension costs

0.5

0.5

0.9

Share schemes

- Value of employees' services

 

0.1

 

0.1

 

0.2

Total

22.1

24.8

47.6

 

IFRS 2 'Share-based Payment' requires an expense for equity instruments granted to be recognised over the appropriate vesting period, measured at their fair value at the date of grant.

 

The fair value has been calculated using the Monte Carlo and Black-Scholes models, using the most appropriate model for each scheme. Assumptions have been made in these models for expected volatility, risk-free rates and dividend yields.

 

The expense for the six months ended 31 March 2013 of £0.1m (2012: £0.1m) has been credited to reserves.

 

Key management personnel compensation


6 months to

31 March 2013

£m

6 months to

31 March 2012

£m

12 months to

30 September 2012

£m

Salaries and other short-term employee benefits

0.4

0.4

1.0

Termination benefits

-

0.9

0.8

Share schemes

- Value of employees' services

0.1

-

0.1

Total

0.5

1.3

1.9

 

Key management personnel are deemed to be the members of the Board of Future plc. It is this Board which has responsibility for planning, directing and controlling the activities of the Group.

 

6.         Net finance costs


6 months to

31 March 2013

£m

6 months to

31 March 2012

£m

12 months to

30 September 2012

£m

Interest payable on interest-bearing loans and borrowings

(0.6)

(1.5)

Fair value gain on interest rate derivatives

0.1

0.1

0.2

Amortisation of bank loan arrangement fees

(0.4)

(0.2)

(0.5)

Other finance costs

(0.1)

-

(0.3)

Net finance costs

(1.0)

(0.9)

(2.1)

 

In line with the Board's policy of hedging interest rate risk, the Group has entered into an interest rate derivative to reduce its exposure on a proportion of the outstanding debt under its committed facility. The valuation of this interest rate derivative at 31 March 2013 resulted in a gain for the six months ended 31 March 2013 of £0.1m (2012: £0.1m).



Notes to the financial information

for the six months ended 31 March 2013

 

7.         Tax on (loss)/profit

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.

 

Consistent with prior periods the Group corporation tax provision reflects management's estimation of the amount of tax payable for fiscal years with open tax computations where liabilities remain to be agreed with Her Majesty's Revenue and Customs and other tax authorities.

 

8.         Dividends

 

 

Equity dividends

6 months to

31 March 2013

6 months to

31 March 2012

12 months to

30 September 2012

Number of shares in issue at end of period (million)

333.2

330.8

333.0

Dividends paid and payable in period (pence per share)

-

0.5

0.5

Dividends paid and payable in period (£m)

-

1.6

1.6

 

Interim dividends are recognised in the period in which they are paid and final dividends are recognised in the period in which they are approved.

 

The dividends totalling £1.6m paid and payable during the period ended 31 March 2012 and the year ended 30 September 2012 relate to the interim dividend for the six-month period to 31 March 2011 of 0.5 pence per share.

 

9.         Earnings per share

Basic earnings per share are calculated using the weighted average number of Ordinary shares in issue during the period.  Diluted earnings per share have been calculated by taking into account the dilutive effect of shares that would be issued on conversion into Ordinary shares of awards held under employee share schemes.

 

The adjusted earnings per share removes the effect of exceptional items and any related tax effects from the calculation as follows:

 

Adjustments to (loss)/profit after tax


6 months to 31 March 2013

£m

6 months to

31 March

2012

£m

12 months to

30 September

2012

£m

(Loss)/profit after tax

(0.6)

(1.1)

0.2

Add: Exceptional items

-

1.0

3.6

Tax effect of the above adjustment

-

(0.2)

(0.3)

Adjusted (loss)/profit after tax

(0.6)

(0.3)

3.5

 

 

 

 

 



Notes to the financial information

for the six months ended 31 March 2013

 

9.         Earnings per share (continued)

 


6 months to 31 March 2013

6 months to

31 March

2012

12 months to

30 September

2012

Weighted average number of shares in issue during the period:




- Basic

331,726,589

327,859,514

329,101,739

- Dilutive effect of share awards

9,192,807

3,692,623

3,751,837

- Diluted

340,919,396

331,552,137

332,853,576

Basic (loss)/earnings per share (in pence)

(0.2)

(0.3)

0.1

Adjusted basic (loss)/earnings per share (in pence)

(0.2)

(0.1)

1.1

Diluted (loss)/earnings per share (in pence)

(0.2)

(0.3)

0.1

Adjusted diluted (loss)/earnings per share (in pence)

(0.2)

(0.1)

1.1

 

The share options do not have a dilutive effect where there is a loss.

 

The adjustments to (loss)/profit have the following effect:


6 months to 31 March 2013

pence

6 months to

31 March

2012

pence

12 months to

30 September

2012

pence

Basic (loss)/earnings per share

(0.2)

            (0.3)

0.1

Exceptional items

-

             0.3

1.1

Tax effect of the above adjustments

-

            (0.1)

(0.1)

Adjusted basic (loss)/earnings per share

(0.2)

            (0.1)

1.1




Diluted (loss)/earnings per share

(0.2)

            (0.3)

0.1

Exceptional items

-

             0.3

1.1

Tax effect of the above adjustments

-

            (0.1)

(0.1)

Adjusted diluted (loss)/earnings per share

(0.2)

            (0.1)

1.1

 

 

 

10. Property, plant and equipment

During the six months ended 31 March 2013, property, plant and equipment additions totalled £0.3m

(31 March 2012: £0.4m). The £0.3m is attributable to: land and buildings £nil (31 March 2012: £0.1m); plant and machinery £0.3m (31 March 2012: £0.2m); equipment, fixtures and fittings of £nil (31 March 2012: £0.1m).

 

There were no commitments for capital expenditure contracted for but not provided at 31 March 2013

(31 March 2012: £nil).

 

The depreciation charge for the period totalled £0.5m (31 March 2012: £0.5m). The £0.5m is attributable to: land and buildings £0.1m (31 March 2012: £0.1m); plant and machinery £0.3m (31 March 2012: £0.3m); equipment, fixtures and fittings £0.1m (31 March 2012: £0.1m).



Notes to the financial information

for the six months ended 31 March 2013

 

11.        Current assets held for sale

 

As a result of the Group's decision to dispose of its UK Rock titles, various assets and associated liabilities have been presented as held for sale in the Group balance sheet at 31 March 2013. The major classes of assets and liabilities of the UK Rock titles at the end of the reporting period are as follows:

 


31 March 2013

£m

Goodwill

6.2

Assets classified as held for sale

6.2





Subscription liabilities

(0.7)

Liabilities directly associated with assets classified as held for sale

(0.7)

 

The Group has not recognised any impairment losses on reclassification of the UK Rock titles as held for sale.

 

The Group completed the sale of the UK Rock titles on 17 April 2013.

 

 

12. Issued share capital

During the period 233,046 Ordinary shares (31 March 2012: 1,967,492) with a nominal value of £2,330 (31 March 2012: £19,675) were issued by the Company for a total cash commitment of £15,744 (31 March 2012: £77,376), pursuant to share scheme exercises.

 

As at 31 March 2013 there were 333,215,218 Ordinary shares in issue (31 March 2012: 330,772,252).

 

 

13. Contingent assets and contingent liabilities

At 31 March 2013 there were no material contingent assets or contingent liabilities (31 March 2012: £nil).  

 

 



Statement of Directors' responsibilities

 

The Directors confirm that to the best of their knowledge the condensed interim financial information contained in the Interim Report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and that the Interim Management Report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely: an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; a description of the principal risks and uncertainties for the remaining six months of the financial year; and material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.

 

The Directors of Future plc are listed in the Future plc Annual Report for the year to 30 September 2012.

 

On behalf of the Board

 

 

 

 

 

Graham Harding

Chief Financial Officer

22 May 2013

 

Directors

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

 

 

The maintenance and integrity of the Future plc website is the responsibility of the Directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

 

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

 

 

 

 



Independent review report to Future plc

 

Introduction

 

We have been engaged by the Company to review the condensed interim financial information in the half-yearly financial report for the six months ended 31 March 2013, which comprises the Consolidated income statement, Consolidated statement of comprehensive income, Consolidated statement of changes in equity, Consolidated balance sheet, Consolidated cash flow statement, Notes to the consolidated cash flow statement, Basis of preparation and related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

 

Directors' responsibilities

 

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

 

As disclosed in the Basis of preparation, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

 

Our responsibility

 

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of the Disclosure and Transparency Rules of the Financial Conduct Authority and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

 

Scope of review

 

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

Conclusion

 

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 March 2013 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

 

 

 

PricewaterhouseCoopers LLP
Chartered Accountants

Bristol
22 May 2013

 

 



Normalised results

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

49.4

50.1

103.7






Operating (loss)/profit before exceptional items (EBITE)

1

(0.5)

0.1

3.8

 

 

 

Adjusted earnings per 1p Ordinary share (normalised)

 


 

 

 

Note

6 months to 31 March

2013

pence

6 months to 31 March 2012

pence

12 months to 30 September 2012

pence

Adjusted basic (loss)/earnings per share

2

(0.5)

(0.3)

0.4

 

 

Normalised results are presented to reflect better 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 of activities closed or divested between 1 October 2011 and 17 April 2013, but include any new activities launched in that period.

 

Adjusted earnings per share are based on normalised results, but exclude exceptional items and related tax effects.

 

  



Notes to the normalised results

for the six months ended 31 March 2013

 

1.        Normalised segmental reporting

 

a)          Revenue by segment

 

 

 

6 months to

31 March 2013

£m

6 months to

31 March

2012

£m

12 months to

30 September

2012

£m

UK

41.3

41.3

85.5

US

8.4

9.1

18.9

Revenue between segments

(0.3)

(0.3)

(0.7)

Total normalised revenue

49.4

50.1

103.7

 

b)         EBITE by segment

 


6 months to

31 March 2013

£m

6 months to

31 March

 2012

£m

12 months to

30 September 2012

£m

UK

1.3

2.4

6.7

US

(1.8)

(2.3)

(2.9)

Total normalised EBITE

(0.5)

0.1

3.8

 

 

Additional analysis of the Group's normalised revenue by type is set out below:

 

i)          Revenue by type

 


6 months to 31 March 2013

£m

6 months to

31 March

2012

£m

12 months to

30 September 2012

£m

Circulation

28.8

29.5

60.2

Advertising

14.8

15.0

31.5

Customer publishing

3.7

3.7

7.2

Licensing, events and other

            2.1

1.9

4.8

Total normalised revenue

49.4

50.1

103.7

 

 

 



Notes to the normalised results

for the six months ended 31 March 2013

 

2.        Reconciliation of statutory results to normalised results

 

a)         Reconciliation of statutory revenue to normalised revenue

 


6 months to 31 March 2013

6 months to

 31 March

2012

12 months to 30 September 2012


£m

£m

£m

Statutory revenue

54.6

61.1

123.5

Adjustment: UK closed and divested activities

(4.4)

(6.6)

(13.6)

Adjustment: US closed and divested activities

(0.8)

(4.4)

(6.2)

Normalised revenue

49.4

50.1

103.7

 

 

b)         Reconciliation of statutory operating profit before exceptional items (EBITE) to normalised EBITE

 


6 months to 31 March 2013

6 months to

31 March

 2012

12 months to 30 September 2012


£m

£m

£m

EBITE

0.7

            1.2

            6.8

Adjustment: UK closed and divested activities

(1.0)

(1.3)

(3.0)

Adjustment: US closed and divested activities

(0.2)

0.2

-

Normalised EBITE

(0.5)

0.1

3.8

 

c)         Reconciliation of basic (loss)/earnings per share to normalised adjusted basic (loss)/earnings per share

 


6 months to 31 March 2013

6 months to

31 March

 2012

12 months to 30 September 2012


pence

pence

pence

Basic (loss)/earnings per share

(0.2)

(0.3)

            0.1

UK closed and divested activities

(0.2)

(0.3)

(1.0)

US closed and divested activities

(0.1)

-

-

Exceptional items

-

0.4

1.4

Tax effect of the above adjustment

-

(0.1)

(0.1)

Adjusted basic (loss)/earnings per share

(0.5)

(0.3)

0.4

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange