22nd Nov 2013 08:17
LONDON (Alliance News) - Future PLC reinstated its dividend as it reported a five-fold increase in pretax profit Friday, as it reduced costs in the UK and as rising digital revenues offset declining traditional print revenues.
The digital publisher and media company posted a dividend of 0.2 pence per share. Future suspended dividend payments in 2011, but the company said that improvements in performance and encouraging trends now have justified the reinstatement of its dividend.
For the full year ended September 30 the company posted a pretax profit of GBP5.8 million, up from GBP1.1 million in the previous year. Revenue was GBP112.3 million, down from GBP123.5 million.
Digital revenues rose to GBP34.7 million from GBP29.0 million, boosted by increases in digital circulation and online advertising. However, traditional print revenues declined 3.2% to GBP72.2 million from GBP74.6 million in the previous year.
The company has been moving towards increasing its digital offering over the past two years as it seeks to reduce its dependence on traditional print. Digital revenues are now one third of the business. As part of this transition, the company also reduced its costs in the UK by cutting its headcount by 4%.
During the first three quarters of the year a decline in the electronic games market, ahead of the launch of the next generation of games console, hampered the business. However by the fourth quarter, this market had recovered and trading was stronger across all other sectors, Future said. Second half performance also benefited from the restructuring activities in the UK.
The company posted exceptional items of GBP2.5 million, as profits from the sale of its UK assets and the subletting of office space in San Francisco offset restructuring costs of GBP1.4 million.
"Overall, these are good results after difficult trading conditions earlier in the year, thanks to stronger trading across all areas in the fourth quarter," said Chief Executive Mark Wood in a statement. "Looking forward, we see the encouraging Q4 trends continuing with forward advertising bookings up year-on-year, and revenue momentum across all sectors."
Shares in Future were trading up 7.8% at 17.25 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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