Magazine publisher hit by 19 per cent fall in profits

Magazine and digital publisher Future saw profits  drop by 19 per cent over the last 12 months.

The Bath company made a profit before tax of a £138m over the last 12 months and saw revenues fall by four per cent to £788m.

The company said the fall in revenue was  due to organic decline but was partially offset by favourable foreign exchange rates and the contribution of acquisitions.

UK revenue declined by four per cent on an organic basis with strong growth in price comparison and greater resilience in digital advertising due to the leadership positions.

Future said profitability remained resilient, despite inflationary pressures, with adjusted operating profit margin⁴ of 32 per cent. only down one per cent year on year.

There were three acquisitions completed in the first half for a combined consideration of c.£45m, and a £45m share buyback programme launched with £13.1m completed at the end of September.

Meanwhile after over eight years at the group, Penny Ladkin-Brand, chief financial and strategy officer has decided to step down later next year.

Penny is subject to a twelve-month notice period and the board has started an external search for her successor.

Jon Steinberg, Future’s chief executive, said: “Looking back at the prior year, we have delivered a resilient performance amid a challenging market, with a resilient full-year profit performance and strong cash generation, reflecting the diversified nature of our business and the leadership positions we retain across verticals.

“Since joining as CEO in April this year, I have worked with the board and leadership team to review our strategy with the clear aim of ensuring we are optimally positioned for future growth for when the macro backdrop improves.

“Our Growth Acceleration Strategy leverages Future’s inherent strengths, strong financial characteristics and unique proposition, making active investments in targeted areas where we have clear growth opportunities. We are excited about executing on this strategy which is focused on growing a highly engaged and valuable audience, diversifying and increasing revenue per user, and optimising our portfolio.

“We are confident our strategy will continue to deliver significant value for shareholders, with our investment in our leading brands and capabilities underpinning our growth ambitions.”