16th Jul 2014 09:08
LONDON (Alliance News) - Future PLC said Wednesday that trading in the three months to June 2014 continued to be in line with trends seen in its first-half while the expected slowdown in print sales continued.
In an interim management statement for the period from October 1, 2013 to July 16, incorporating the Group's third quarter for the three months ended June 30, 2014, the company said that despite slowing print copy sales, normalised digital and diversified revenues were up 10% year-on-year.
The company has been focusing on a transformational programme which commenced in the second quarter of the year as it works to reduce its cost base. The collective consultation process has now been completed, said Future. The programme is set to headcount by more than 170 roles in the UK in addition to over 40 roles already exited in the US.
Future said it expects to reduce its cost base through these cuts and other cost savings across the group by some GBP6 million in the next financial year.
Net debt as of June 30, 2014 was GBP14.2 million. However, Future said that following the receipt of funds from the disposal of Sport and Craft titles,it expects to be in a net cash position by the end of the year.
During the period a major US print magazines distributor filed for Chapter 11 bankruptcy protection, hitting Future with an exceptional charge of GBP1.5 million, largely arising from bad debts, in the second-half of 2014.
Future said it has also agreed a new revised facility of up to GBP12 million, running to December 31, 2015.
The company said that near-term trading continues to be challenging, with minimal forward visibility and subsequently does not foresee a change in its financial performance this financial year. Future said the impact of the transformation programme is not expected to be material until 2015.
"We have taken the necessary action to strengthen the balance sheet and secured new debt facilities to enable the business to be fundamentally restructured. As a result, the Group is now in a much more stable position," said Future CEO Zillah Byng-Maddick. "We are making good progress - in line with our original plans - but organisational change of this scale takes time. Against a backdrop of a difficult trading environment, we don't expect to see any material uplift in our financial performance until the next financial year."
Shares in Future were trading 10.12% lower at 7.55 pence per share Wednesday, amongst the top fallers on the London market.
By Alice Attwood; [email protected]; @AliceAtAlliance
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