REG - Future PLC - Interim Management Statement 16 July <Origin Href="QuoteRef">FUTR.L</Origin>

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06/09/2014 16:39

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RNS Number : 4171M
Future PLC
16 July 2014 
 
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 
 
This information is provided by RNS
The company news service from the London Stock Exchange