Below are some extracts. Click here for the full report.
Financial and operating headlines:
* Robust UK performance in line with previous guidance: EBITA up 5%, and margin improved
* US performance reflects further caution on estimates for unprecedented newsstand disruption as well as generic advertising weakness: revenue down 22%, EBITA turns from trading profit to loss
* Group EBITA reduction due to US profit shortfall, £1m increase in cost of provision for ageing receivables and continued investment in new products
* Continued progress in strategy:
- portfolio model resilience: subscriptions revenue up 7%, customer publishing revenue up 7%
- commercial partnerships expanded
- NPD investment maintained: in print, online, on-console
* Online now 23% of advertising (2008: 19%)
* Strong focus on cash generation and debt reduction:
- Cash conversion of more than 100%
- Net debt reduced by more than 50% in three years to £15.6m
- Continued focus on cost management
* Dividend reduced, but cover policy maintained
Stevie Spring (pictured), Future’s Chief Executive said:
“The scale, intensity and complexity of the challenges of 2009 were unprecedented. Given these factors, Future’s performance was remarkably resilient compared to its media sector peers: testament to the strength of our special-interest business and our clear operational focus.
The year was a tale of two markets. Our larger UK business out-performed the market, increasing profits despite a relatively modest revenue decline. Our US business experienced a very difficult year – hit by a general advertising market in freefall and unprecedented disruption at newsstand.
But we dealt with everything the economic maelstrom threw at us and we responded in a proportionate way. Furthermore, the Group made good progress in its strategy; we continued to invest appropriately in new commercial opportunities and in new talent; and we made milestone progress in reducing bank debt. These factors will serve us well in the future.
Our immediate priorities in 2010 are to carry through the measures we’ve introduced to strengthen our US business, and to navigate the near-term global economic challenges. Trading for the new financial year has continued to be challenging, both in the UK and the US and we expect conditions to remain difficult in 2010. So we’re taking a cautious view.
But our flexibility in the face of changing market dynamics, the robustness of our portfolio business and continued progress in our strategy, all give me confidence that Future is as well-positioned as it can be to see out the continuing storm and to benefit from recovery.”
