The statement:
Trading performance
In the three months to June 2014 trading continued to be in line with the trends seen in the first half of the financial year. The expected slowdown in print copy sales continued while normalised digital and diversified revenues are up 10% year on year.
During the period a major US print magazines distributor filed for Chapter 11 bankruptcy protection resulting in an exceptional charge of £1.5m, largely arising from bad debts, in H2 2014.
Financial position
Net debt at 30 June 2014 was £14.2m. Following the receipt of funds from the disposal of Sport and Craft titles, the Board expects to be in a net cash position at the year end.
The Group has finalised a new revised facility of up to £12m until 31 December 2015.
Transformation Programme and outlook
The Group continues to make good progress on the transformation programme which was initiated in Q2. The collective consultation process has now been completed. As previously reported, this is expected to result in a headcount reduction of over 170 roles in the UK in addition to over 40 roles already exited in the US.
Future expects to reduce its cost base following the headcount reductions and other cost savings across the Group by some £6m in the next financial year.
In the near term trading continues to be challenging, with minimal forward visibility. The business does not foresee a change in the financial performance this financial year with the impact of the transformation programme not expected to be material until 2015.
Zillah Byng-Maddick, Future plc Chief Executive, said: "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.
"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."
