Statement from Haymarket: The company has filed its annual report and financial statements for the 12 month period showing pre-tax profits reached £11.08m – reversing losses of £7.61m in the 18 month prior reporting period, on revenues of £187m. Underlying profits rose 3.3% on an annualised pro-forma basis from £17.2m to £17.8m.
As part of a strategic decision to reduce its bank debt, Haymarket disposed of office and residential property during the year, realising total proceeds of £31m and a profit of £17m.
During the reporting period Haymarket continued to develop its international business-to-business and consumer editorial businesses, digital platforms, data assets, and exhibitions operations. It also pursued a number of efficiency measures, reflecting weak economic activity at the start of the reporting period, to align overheads to demand.
Lord Heseltine, Chairman, said: “These figures are a testament to the continued operating strength of the Group, the benefits of our recapitalisation in recent years and a prudent approach to managing our property and asset portfolio. As a result, Haymarket is well positioned to harness growth opportunities amid an improving economic outlook in its core UK and US markets.”
In the course of the year, the Group undertook a major property review, culminating with a number of disposals. Since the year end, Haymarket has exchanged contracts for the sale of Teddington Studios for £85m. When the sale completes at the end of 2015, the proceeds will be used to reduce company debt significantly.
Haymarket has also made progress on the Richmond Education and Enterprise Campus in partnership with Richmond upon Thames College, Richmond Council, Harlequins F.C. and Clarendon School. The state of the art tech hub next to Richmond College will bring together education and enterprise, ensuring innovative curricula that exploit the latest technologies.
Kevin Costello, Chief Executive of Haymarket Media Group, said: “Despite continuing volatile advertising conditions and major changes in media consumption habits, the 12 months to June 2014 saw continued progress in the transformation of Haymarket to strengthen its balance sheet and focus on our core operations. We are cautiously optimistic that trading will remain stable.”
Business highlights
* Illustrating the growing importance of Haymarket’s digital and live events portfolio, the revenue breakdown from the major business segments was 48% from print (down from 53% in 2012/3), 27% from digital (up from 25%) and 18% from face-to-face (from 16%).
* There was significant investment in restructuring across the group and expansion in the United States which now accounts for 25% of the business. The acquisition of digital healthcare communications agency Group DCA in March 2015 will enable the US business to maintain its leadership in the healthcare communications sector and help accelerate growth.
* In the consumer businesses there was stand out success for Pistonheads, the online automotive news and classifieds site, which has quadrupled its audience since it was acquired by Haymarket in January 2007. Average monthly unique visitors today stand at 4.3m, up from 900,000 on acquisition.
