20th Mar 2020 09:35
(Alliance News) - Future PLC said Friday any declines in its travel magazine portfolio have been offset by its grocery titles, resulting in "strong" digital audience numbers.
Shares in the media company were 28% higher in London on Friday morning at 770.00 pence each.
"The period started well with exceptionally strong digital audience numbers with the resultant beneficial flow through to eCommerce and digital advertising," Future said.
As a result, the company expects its results for the six months to the end of March to be in line with internal expectations.
"The recent weeks have been unprecedented. However, our business has continued to trade robustly, with the diversified strategy working well. As of today, we have seen limited impact on our digital revenues," Future said.
Despite the "robust" trading, Future said it is implementing some profit protection measures.
Future also said business continues to be highly cash generative and is guiding half-year cash to be in line with expectations.
As at the end of the half year, Future expects to have a cash balance of between GBP47 million and GBP53 million.
Future is hoping to complete the TI transaction in the coming few weeks, subject to the CMA agreement.
As a result, the consideration of GBP140 million will become due, which would leave the company with headroom of about GBP30 million to GBP40 million with a combined net debt to last-twelve-months pro-forma Ebitda ratio of about 1.0 pro-forma versus its covenant of 3.0.
By Paul McGowan; [email protected]
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