Sport Media bullish despite losses
THE publisher of the Daily Sport today revealed multi-million pound losses after a turbulent year which has seen a sharp decline in sales.
But Manchester-based Sport Media is confident it has turned a corner following a restructure and the return of founder David Sullivan as honorary publisher.
In the 12 months to July 31, pre-tax losses narrowed to £7.7m from £18.2m. The underlying loss came in at £800,000 compared to a profit of £6m last time. However the group said it was hit with exceptional costs of £2.4m.
Sales at the group, which also publishes the Sunday Sport, numerous magazines and digital content for internet and mobile channels, fell 22% to £22.9m from £29.4m.
However the group said since the return of Mr Sullivan, who stumped up £1.68m to help the struggling firm during its refinancing negotiations, sales have risen 10% since the nadir in March.
Sport Media said it is now confident of the survival of the business, and the group is achieving consistent monthly profitability and positive cash generation.
It is also focused on reducing its £12.7m debt pile.
Andrew Fickling, chief executive officer, said: “With significant refinancing and restructuring now completed, and the management team able to focus all of their attention on the group’s future strategy, we are well positioned to build on our current profitability and deliver the potential that this group of companies has always promised – to become creator, owner and multi-platform distributor of exclusive content in the men’s lifestyle sector.”
The group announced that financial director Neil Robertson has been appointed to the board. Sport Media is also looking for a new chairman to replace David Bailey who will retire this year. It said it is hopeful of making an announcement in the near future.
