25th Jul 2014 09:24
LONDON (Alliance News) - Media group Future PLC said Friday that it has exchanged contracts to sell its portfolio of auto titles and 'Triathlon Plus' publications to Kelsey Publishing Ltd for a total of GBP2.1 million in cash and retained revenue.
The company said Kelsey will pay GBP1.8 million in cash, while Future also will retain GBP300,000 in magazine subscriptions revenue. This is cash that has already been received in advance of future issues, due to customers paying upfront for subscriptions.
Additionally, a further GBP800,000 deferred consideration will be payable by September 30, 2015, based on revenue performance. It expects to complete the sale by the end of August.
It will use the net proceeds of the sale to reduce its external borrowings, it said.
The portfolio generated pretax profit of GBP300,000 in the year to end-September 2013, on revenue of GBP5.0 million.
"The sale of this portfolio to Kelsey Publishing is another step in our strategy to focus the business on our core vertical markets," said Chief Executive Zillah Byng-Maddick in a statement.
Shares in Future were trading up 3.0% at 8.50 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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