Final Results - PART 1
Future Network PLC
07 December 2004
7 December 2004
THE FUTURE NETWORK PLC
Preliminary results for the period ended 30 September 2004
The Future Network plc (LSE: FNET), the international special-interest consumer
magazine group, today announces its preliminary results for the nine months
ended 30 September 2004. These preliminary results also include pro forma
results for the twelve months ended 30 September 2003 and 2004. An analyst
presentation will be held at 10.00am at the offices of UBS, 2 Finsbury Avenue,
London EC2M 2PP.
Financial highlights
Pro forma adjusted* results for 12 months Reported Constant Currency
to 30 September 2004 compared with 2003 Change Change
Turnover £190.4m (2003: £177.7m) Up 7% Up 11%
Adjusted operating profit £23.6m (2003: Up 1% Up 6%
£23.3m)
Adjusted pre-tax profit £23.8m (2003: Up1% Up 6%
£23.5m)
Adjusted earnings per share 5.9p (2003: Up 13% Up 17%
5.2p)
Final dividend of 1.5p per share Up 20% Up 20%
*Definitions
Adjusted results are presented to provide a better indication of overall
financial performance and to reflect how the business is run on a day to day
basis. The only adjustment made is to remove goodwill amortisation.
Other highlights
Circulation revenue up 6%; advertising revenue up 10%
Magazines acquired in 2003 and 2004 make good progress
Expansion continues by magazine development, launch and acquisition
Re-energised UK business
US business continues to thrive
Excellent progress in Mainland Europe
Proposed change of company name to 'Future plc'
Statutory results for 9 months to 30 September 2004
Turnover £133.0m
Operating profit £0.4m
Pre-tax profit £0.6m
Basic loss per share (0.2)p
Final dividend of 1.5p per share
Statutory results for year ended 31 December 2003
Turnover £182.7m
Operating profit £9.5m
Pre-tax profit £9.7m
Basic earnings per share 0.8p
Final dividend of 1.25p per share
Commenting on the results, Greg Ingham, Future's Chief Executive said:
'I am delighted to report good trading progress, a successful change of
financial year, and a 20% increase in the level of dividend.
'The year to 30 September 2004 has been a good one for Future. We have succeeded
with a number of acquisitions, launched some interesting new titles, and
refreshed and improved a number of existing titles. We have strengthened the
management team in our largest business, the UK, where trading has exceeded our
previous expectation.
'Current trading is encouraging: we have made a very promising start to the
first quarter of our new financial year.'
Enquiries:
The Future Network plc
Greg Ingham, Chief Executive Tel: 01225 442244
John Bowman, Finance Director Tel: 01225 732281
Hogarth Partnership
James Longfield/Georgina Briscoe Tel: 020 7357 9477
Financial performance
These are Future's first results based on our new financial year, ending on 30
September.
For the 12 months to September 2004, the Group generated turnover of £190.4m and
an adjusted operating profit of £23.6m, producing an operating margin of 12.4%.
Adjusted earnings per share were 5.9p, readily enabling the Board to recommend
an increased dividend of 1.5p per share.
If approved at the Annual General Meeting to be held on 26 January 2005, the
final-only dividend of 1.5p per share will be paid on 31 January 2005 to
shareholders on the register on 31 December 2004. The ex-dividend date will be
29 December 2004.
Strategy overview
Future is a special-interest consumer magazine publisher serving a large number
of targeted audiences, rather than being in the general-interest consumer
publishing sector. This presents a huge opportunity as new communities of
interest are always emerging and evolving.
The Company has both the financial and management resources to acquire and
launch new titles. When appropriate opportunities arise, we will continue to
expand by both launch and acquisition. At 30 September 2004 Future had net cash
balances of £9.8m and unused bank facilities of a further £22.0m.
At present, our business comprises computing, games and entertainment titles.
The Board is investigating a large number of possible new magazines, most of
which would expand our portfolio in the entertainment sectors.
Current trading and prospects
The year to 30 September 2004 has been a good one for Future. We have succeeded
with a number of acquisitions, launched some interesting new titles and
refreshed and improved a number of existing titles. We have strengthened the
management team in our largest business, the UK, where trading has exceeded our
previous expectation.
Current trading is encouraging: we have made a very promising start to the first
quarter of our new financial year.
Our prospects are excellent. We are optimistic that our shareholders' continued
confidence in Future will be justified.
Proposed change of company name
We propose to shorten the Company's name to Future plc because we are so often
known simply as 'Future'. A resolution to make this change will therefore be put
to shareholders at the forthcoming Annual General Meeting.
Growth plan
This has been an important period of growth for Future - but not nearly as
important as the growth we are planning for the next four years. We are focused
on growing the business to enhance shareholder value. Our target is to double
the sales and profits of the business. We have the strategy, financial
capability, management strength and corporate desire to achieve that end.
Since 2001, Future's business has grown from £143m revenues and £10m of adjusted
operating profit to £190.4m and £23.6m for the year to September 2004. In less
than four years, Future's revenues have thus grown 33% and profits 136%. This
profit growth has been achieved largely organically. The cumulative spend on
acquisitions during this period has been £22.4m, with revenues of £20.8m and
profits of £2.4m coming in the year to September 2004. These acquisitions have
been funded entirely through cash flow. The sum total of net launch spend within
each of the years 2001 to date is just £1.4m.
This strong growth places Future amongst the fastest-growing UK media companies
during the period - and without spending any 'new' money.
Given this track record, our strategic focus and our stated intention to use
debt to help drive growth in our business, we are confident that our four-year
growth target is achievable.
In making this commitment, we would also draw attention to the great strength,
quality and discipline of our Board. Future has generated a reputation in recent
years for its ability to judge risk carefully, and we stress that this will
continue to underpin how we evaluate opportunities.
The only caveat is that a strategy which is in part based on acquisition is also
inherently based on opportunity and availability of assets at sensible prices.
Attractive assets are available and we believe will continue to be.
2004 performance
The year to September 2004 saw Future continuing to grow both in terms of
magazine sectors and internationally. In constant currency, revenues grew 11%,
adjusted operating profits 6% and adjusted earnings per share by 17%. That
growth has come through a combination of organic development, launches and
acquisitions. Though we break out the figures for clarity, we stress that
operationally each route to growth is important to us, whether driven by our
creative ability with launches, redesigns and existing magazines; or by our
financial firepower for portfolio development, new magazines and acquisitions.
We continue to diversify Future. By subject matter and by revenue, our business
is now split Games 44% (2003: 47%); Computing 30% (32%) and the 15-sector
Entertainment 26% (21%). Geographically, Future's shape is: UK 52% (2003: 56%);
US 27% (24%) and mainland Europe 21% (20%).
In terms of expansion, the shape of our business underpins Future's ability to
seek out new opportunities - whether by country (such as the US, in recent times
for us) or by sector (such as in games - revenues up 56% in three years). We see
growth drivers and growth opportunities across the business.
Financial Review
Future has generated more than £23m of adjusted operating profit during each of
the last two years to 30 September. On average over that period, cash conversion
of this profit has been over 90%. We have also benefited from a reducing tax
charge. We have been able comfortably to pay our first dividend whilst
confidently increasing our second.
Statutory Results for 9 months to 30 September 2004
These show that we generated £133.0m of turnover; operating profit of £0.4m;
pre-tax profit of £0.6m; and a basic loss per share of 0.2p. Adjusted operating
profit was £13.1m and adjusted earnings per share were 3.7p. These results are
slightly better than our expectation for the period.
Statutory Results for year ended 31 December 2003
These showed £182.7m of turnover; operating profit of £9.5m; pre-tax profit of
£9.7m; and basic earnings per share of 0.8p. Adjusted operating profit was
£22.5m and adjusted earnings per share were 4.9p.
Pro Forma Results for 12 months to 30 September 2004
We believe that these provide shareholders with more meaningful financial
information, because they compare a full year to September 2004 with the full
preceding year to September 2003. For the 12 months to 30 September 2004, Group
turnover was £190.4m, 7% up on 2003 and 11% up in constant currency. Adjusted
operating profit was £23.6m, up 1% on 2003 and 6% up in constant currency terms.
The goodwill amortisation charge was £16.6m, up £4.9m because of recent
acquisitions. Excluding the effect of this non-cash charge, adjusted earnings
per share for the 12 months were 5.9p (2003: 5.2p), an increase of 13%.
Analysis of Group pre-tax profit for 12 months
----------------------------------------- ------------ ------------ ----------
12 months to 30 September 2004 2003 Change
£m £m £m
----------------------------------------- ------------ ------------ ----------
UK 17.3 17.6 (0.3)
US 5.6 8.0 (2.4)
Mainland Europe 3.1 0.6 2.5
Central costs (2.4) (2.9) 0.5
----------------------------------------- ------------ ------------ ----------
Adjusted operating profit 23.6 23.3 0.3
----------------------------------------- ------------ ------------ ----------
Profit on disposal of fixed asset 0.2 0.1 0.1
investments
Net interest receivable and similar items - 0.1 (0.1)
----------------------------------------- ------------ ------------ ----------
Sub-total 23.8 23.5 0.3
Goodwill amortisation (16.6) (11.7) (4.9)
----------------------------------------- ------------ ------------ ----------
Pre-tax profit 7.2 11.8 (4.6)
----------------------------------------- ------------ ------------ ----------
Structure and size of Group
As at 30 September 2004, the Group published 96 special-interest consumer
magazines. We operate subsidiary companies in the UK, US, France and Italy. In
addition, the Group licensed local editions of its magazines in a further 30
countries. The Group's progress can be seen from the following information.
------------------------- ---------- ------------- ----------------------
12 months to 30 September 2004 2003 Change
------------------------- ---------- ------------- ----------------------
Overseas subsidiaries 3 3 No change
Headcount 1,120 1,033 Up 8%
Net launch spend £2.0m £0.3m 22 titles in 24 months
Acquisition spend £8.7m £13.7m Six deals in 24 months
Net cash £9.8m £10.4m
------------------------- ---------- ------------- ----------------------
Magazine portfolio and launch activity
During the 12 months to 30 September 2004, we launched six titles at a cost of
£2.0m, of which £1.6m related to Mobile PC in the US.
Performance of 2003 and 2004 acquisitions
Over the last two years we spent £22.4m on six acquisitions. In the 12 months to
September 2004 these acquired titles generated turnover of £20.8m and adjusted
operating profit of £2.4m. The acquisitions have enhanced earnings and their
trading performance is ahead of the Group's expectation.
Currency effect on 12 month profits
In constant currency terms, turnover growth was 11% and adjusted operating
profits would have been £24.7m. The average value of the Dollar against Sterling
weakened by 12%, impacting the reported results of our US business in
particular. The average value of the Euro against Sterling also weakened by
0.5%. The Group impact of adverse currency movements held back operating profits
by £1.1m.
UK performance for 12 months to September 2004
2004 2004 2004 2004 2003 2003 2003
Turnover Contribution Margin % of Turnover Contribution Margin
£m £m % turnover £m £m £m
---------- -------- ------------ ------- -------- -------- ------------ -------
Games 33.8 11.1 33% 34% 34.4 9.9 29%
Computing 27.3 7.9 29% 27% 29.8 9.8 33%
Entertainment 39.3 10.5 27% 39% 36.8 11.0 30%
---------- -------- ------------ ------- -------- -------- ------------ -------
100.4 29.5 29% 100% 101.0 30.7 30%
Overheads and
other costs (12.2) (13.1)
---------- -------- ------------ ------- -------- -------- ------------ -------
Total 100.4 17.3 17% 101.0 17.6 17%
---------- -------- ------------ ------- -------- -------- ------------ -------
UK adjusted operating profit was £17.3m, representing an adjusted operating
profit margin of 17% (2003: 17%) and trading towards the end of the period
exceeded our previous expectation.
In the UK, Robert Price was appointed as MD in March, having previously been
Publishing Director of our largest division, Entertainment. Robert's brief was
to galvanise the UK business, which has been strong in terms of margin but
sluggish on growth. He is being encouragingly vigorous. We have a largely-new
and highly effective operating Board in the UK; the existing portfolio is being
overhauled and reinvigorated; active launching has recommenced; a new magazine
distributor, Marketforce, is now handling our portfolio, and there have been
four acquisitions since Robert's appointment.
Magazines acquired during the 12 months to September were PSW, Xbox World,
Spanish Homes Magazine, CVG and PC Zone. These titles have performed well,
contributing turnover of £3.0m and adjusted operating profit of £0.8m. Since the
end of September we have acquired What Laptop, Junior, Junior Pregnancy & Baby,
Wedding Day and their associated websites.
During September we launched Official Duel Masters, Hair Style & Beauty
Magazine, Jetix and PaperCraft Inspirations.
The impact of all these initiatives has already begun to have some effect and
Future UK is well-placed to deliver double-digit growth in the coming year.
Export and licensing activity
UK exports totalled £11.0m (2003: £10.3m), an increase of 7%. The weakening of
the US Dollar held back UK revenues by £0.5m, primarily in computing.
International licensing revenue for the Group was £2.6m, up 19% on 2003.
US performance for 12 months to September 2004
2004 2004 2004 2004 2003 2003 2003
Turnover Contribution Margin % of Turnover Contribution Margin
$m $m % turnover $m $m £m
---------- -------- ------------ ------- -------- -------- ------------ -------
Games 52.1 15.3 29% 56% 50.6 15.8 31%
Computing 22.8 2.2 10% 25% 18.7 5.0 27%
Entertainment 18.0 3.7 21% 19% - - -
---------- -------- ------------ ------- -------- -------- ------------ -------
92.9 21.2 23% 100% 69.3 20.8 30%
Overheads
(11.3) (8.0)
---------- -------- ------------ ------- -------- -------- ------------ -------
Total 92.9 9.9 11% 69.3 12.8 18%
---------- -------- ------------ ------- -------- -------- ------------ -------
US adjusted operating profit was $9.9m, representing an adjusted operating
profit margin of 11% (2003: 18%). Average monthly magazine sales of Future's US
portfolio rose 23% to 1,899,898 building on our position as the fastest growing
publisher at newsstand in 2003 (source: Circulation Management magazine).
Future US has continued to thrive under Jonathan Simpson-Bint's leadership.
Through organic growth, launches and the full-year effect of our guitar
acquisitions, in dollar terms revenue has been driven up 34% in the year - a
very significant rise in an otherwise quiet year in US media. Profit has been
impacted by the launch costs of Mobile PC ($2.9m) and also establishing a
publishing base for our music-making titles in New York.
The acquired guitar magazines generated $18.0m of turnover and $1.2m of adjusted
operating profit. We have recently added cover-mounted discs to our key guitar
titles, an innovation new to the US guitar magazine sector but one successfully
pioneered by Future in the UK during the 1990s.
We were delighted to announce in early July the significant extension to the
Official Xbox Magazine contract with Microsoft. This means that Future has the
exclusive, worldwide rights (excluding Japan) to publish official magazines for
all Microsoft Xbox products until 31 December 2011. Copy sales of Official Xbox
Magazine in the US increased 18% on 2003.
We have announced two launches in the US. Future Music is a US version of our
successful UK title, serving the electronic music-making sector. Later in the
year, we will launch into the action sports sector with Future Snowboarding,
which is a highly promising area for Future, given the young male-oriented
magazines we successfully publish in the US.
Mainland Europe performance for 12 months to September 2004
2004 2004 2004 2004 2003 2003 2003
Turnover Contribution Margin % of Turnover Contribution Margin
€m €m % turnover €m £m €m
---------- -------- ------------ ------- -------- -------- ------------ -------
Games 32.6 7.0 21% 56% 27.2 7.1 26%
Computing 25.1 7.5 30% 43% 25.5 5.2 20%
Entertainment 0.8 (0.4) - 1% 0.2 (0.1) -
---------- -------- ------------ ------- -------- -------- ------------ -------
58.5 14.1 24% 100% 52.9 12.2 23%
Overheads (9.5) (11.3)
---------- -------- ------------ ------- -------- -------- ------------ -------
Total 58.5 4.6 8% 52.9 0.9 2%
---------- -------- ------------ ------- -------- -------- ------------ -------
Substantial progress has been made in Mainland Europe, with an adjusted
operating profit of €4.6m representing an adjusted operating profit margin of 8%
(2003: 2%). This result is also stated after the cost of intra-group licence
fees of €1.8m (2003: €2.6m).
France has been the group's star performer in 2004. Sari Zaimi has very capably
led the business to good profitability, following the successful integration of
the spring 2003 acquisition from Hachette; profit growth has come from both
games and computing magazines.
The titles acquired from Hachette generated €11.4m of turnover and €1.3m of
adjusted operating profit, with cost savings in line with our forecasts. Our
expanded business in France has experienced a good 12 months, with the enlarged
operation better able to exploit economies of scale.
There will be two Future launches in France this coming year in computing. The
largest launches in the spring.
Our Italian business has had flat profits year-on-year. This is a reasonable
outcome, given considerable sector competition. Our team, led by Bernardo
Notarangelo, has responded strongly in recent months: Giochi per Il Mio
Computer, for example, had a strong increase in sales via creating an additional
budget-priced offering. Maximum PC has just been launched, based on the
highly-successful Future US title.
Group operating profitability and operating margins
Adjusted operating profit for the 12 months to 30 September 2004 was £23.6m
(2003: £23.3m) representing an adjusted operating profit margin of 12% (2003:
13%). The business continues to target an adjusted operating profit margin of
15% in the mid-term.
Tax
The tax charge for the 12 months amounted to £4.7m which represents an effective
tax rate for the 12 months of 20% (2003: 29%), ignoring goodwill amortisation.
During the 12 months, Mainland Europe profits were effectively tax-free,
reflecting the benefit of accumulated tax losses: this benefit should continue
for some years.
Quarterly performance
The table below provides a quarterly analysis of the pro forma results for the
12 months to September 2003, together with the corresponding quarterly figures
to September 2004.
------------------- ------------------- ---------------- --------------- -------------------- ------
Quarter to December Quarter to March Quarter to June Quarter to September Total
£m £m £m £m £m
------------------- ------------------- ---------------- --------------- -------------------- ------
Turnover
Year to 30
September 2003 52.9 38.9 41.7 44.2 177.7
Year to 30
September 2004 57.4 41.5 45.6 45.9 190.4
Adjusted operating
profit
Year to 30
September 2003 11.1 3.2 3.3 5.7 23.3
Year to 30
September 2004 10.5 2.4 4.7 6.0 23.6
------------------- ------------------- ---------------- --------------- -------------------- ------
Half-yearly performance
The table below provides an analysis of the pro forma results for the 12 months
to September 2003 and 2004 split into our new half-years.
----------------- ------------------ ---------------------- ------
Half-year to March Half-year to September Total
£m £m £m
----------------- ------------------ ---------------------- ------
Turnover
Year to 30 September
2003 91.8 85.9 177.7
Year to 30 September
2004 98.9 91.5 190.4
Adjusted operating
profit
Year to 30 September
2003 14.3 9.0 23.3
Year to 30 September
2004 12.9 10.7 23.6
----------------- ------------------ ---------------------- ------
Dividend policy and dividend cover
As stated in our Annual Report 2003, the Board's intention is that dividends
should be covered at least twice by adjusted earnings per share. The proposed
final dividend of 1.5p per share is covered 2.4 times by adjusted earnings per
share for the 9 months to September 2004 and 3.9 times by reference to adjusted
earnings per share for the 12 months to September 2004. We intend to introduce
an interim dividend in 2005. The first such interim dividend would be in respect
of the six months to 31 March 2005.
Business indicators for year to 30 September 2005
The Board's overall aim is to achieve growth in adjusted earnings per share. As
part of that aim, in the new financial year we anticipate spending at least £2m
on magazine launches; our budget anticipates capital expenditure of up to £2m;
and we currently estimate an effective tax rate in the region of 20% compared
with 20% for the 12 months to 30 September 2004. The estimated likely goodwill
amortisation charge for 2005 is £17.8m.
Summary
We have successfully grown the business. Launch and acquisition activity has
enhanced earnings and the expanded business is both demonstrably profitable and
strongly cash-generative. After spending £2.3m on launches and £22.4m on
acquisitions within the last two years and £4m on our first dividend, we still
had almost £10m of net cash at the period end.
The most recent 12 months to September have provided us with expanded dividend
cover, and against this strengthened background we have been able to recommend a
20% increase in dividend, consistent with the dividend policy published in March
and without restricting our ability to grow further. We are in good shape.
Analysis of Group turnover for 12 months to September 2004
The tables below analyse the growth in Group turnover. All turnover was derived
from the Group's principal activity of publishing special-interest consumer
magazines.
------------- ------- ---------- --------- ----------
% of 2004 2003 Change
Group £m £m %
------------- ------- ---------- --------- ----------
UK 52% 100.4 101.0 Down 1%
US 27% 52.0 43.3 Up 20%
Mainland Europe 21% 39.9 35.8 Up 11%
Intra-group - (1.9) (2.4) -
------------- ------- ---------- --------- ----------
Group turnover 100% 190.4 177.7 Up 7%
------------- ------- ---------- --------- ----------
Analysis of turnover in constant currency
------------- ------- ---------- --------- ----------
% of 2004 2003 Change
Group £m £m %
------------- ------- ---------- --------- ----------
UK 51% 100.9 101.0 -
US 29% 58.0 43.3 Up 34%
Mainland Europe 20% 39.6 35.8 Up 11%
Intra-group - (1.9) (2.4) -
------------- ------- ---------- --------- ----------
Group turnover 100% 196.6 177.7 Up 11%
------------- ------- ---------- --------- ----------
Analysis of turnover by type
------------- ------- ---------- --------- ----------
% of 2004 2003 Change
Group £m £m %
------------- ------- ---------- --------- ----------
Circulation 68% 129.8 122.6 Up 6%
Advertising 30% 56.2 51.0 Up 10%
Other 2% 4.4 4.1 Up 7%
------------- ------- ---------- --------- ----------
Group turnover 100% 190.4 177.7 Up 7%
------------- ------- ---------- --------- ----------
Analysis of turnover by half-year
------------- ------- ---------- ------- --------- ----------
12 months to Sept 2004 2003 Change
% £m % £m %
------------- ------- ---------- ------- --------- ----------
First half 52% 98.9 52% 91.8 Up 8%
Second half 48% 91.5 48% 85.9 Up 7%
------------- ------- ---------- ------- --------- ----------
Group turnover 100% 190.4 100% 177.7 Up 7%
------------- ------- ---------- ------- --------- ----------
Analysis of turnover by segment
------------------- -------- -------- --------- ----------
Proportion of Group UK US Mainland Group
Europe
------------------- -------- -------- --------- ----------
Games 18% 15% 11% 44%
Computing 14% 7% 9% 30%
Entertainment 20% 5% 1% 26%
------------------- -------- -------- --------- ----------
Total 52% 27% 21% 100%
------------------- -------- -------- --------- ----------
Profitability of each business segment
The table below shows the profitability of each business segment (measured at
the gross contribution level) as a proportion of turnover for the 12 months to
30 September 2004.
------------------- -------- -------- --------- -------------
Profitability UK US Mainland Profitability
(gross contribution Europe of segment
as a proportion of
turnover)
------------------- -------- -------- --------- -------------
Games 33% 29% 21% 29%
Computing 29% 10% 30% 25%
Entertainment 27% 21% - 25%
------------------- -------- -------- --------- -------------
Profitability by
territory 29% 23% 24% 27%
------------------- -------- -------- --------- -------------
Section 1 - Pro forma financial information for the 12 months to 30 September
2004 and 12 months to 30 September 2003
Pro forma Group profit and loss account
for the 12 months to 30 September 2004
---------------- ---------------- ---------- --------- ---------
Pro forma Pro forma
12 months to 30 12 months to 30
September 2004 September 2003
£m £m
---------------- ---------------- ---------- --------- ---------
Turnover
Continuing
operations 17 185.1 177.7
Acquisitions 5.3 -
---------------- ---------------- ---------- --------- ---------
2 190.4 177.7
---------------- ---------------- ---------- --------- ---------
Operating profit
/(loss)
Continuing
operations --------- ---------
Operating profit 22.7 23.3
before amortisation
of intangible
assets
Amortisation of 9 (14.7) (11.7)
intangible assets --------- ---------
8.0 11.6
Acquisitions
--------- ---------
Operating profit 17 0.9 -
before amortisation
of intangible
assets
Amortisation of 9 (1.9) -
intangible assets --------- ---------
(1.0) -
---------------- ---------------- ---------- --------- ---------
Operating
profit 3 7.0 11.6
Profit on
disposal of
fixed asset
investments 0.2 0.1
---------------- ---------------- ---------- --------- ---------
Profit on
ordinary
activities
before
interest 7.2 11.7
Net interest
receivable and
similar items 5 - 0.1
---------------- ---------------- ---------- --------- ---------
Profit on
ordinary
activities
before tax 2 7.2 11.8
Tax on profit
on ordinary
activities 6 (4.7) (6.7)
---------------- ---------------- ---------- --------- ---------
Profit for the
year 16 2.5 5.1
---------------- ---------------- ---------- --------- ---------
---------------- ---------------- ---------- --------- ---------
Dividend -
December 2003
paid 7 (4.0) -
---------------- ---------------- ---------- --------- ---------
Dividend -
September 2004
proposed 7 (4.9) -
---------------- ---------------- ---------- --------- ---------
Retained
(loss)/profit
for the year (6.4) 5.1
---------------- ---------------- ---------- --------- ---------
Earnings per 1p Ordinary share
------------------------------- --------- --------- ---------
Pro forma Pro forma
12 months to 30 12 months to 30
September 2004 September 2003
pence pence
------------------------------- --------- --------- ---------
Basic earnings
per share 8 0.8 1.6
Adjusted basic
earnings per
share 8 5.9 5.2
Diluted
earnings per
share 8 0.8 1.6
Adjusted
diluted
earnings per
share 8 5.9 5.2
------------------------------- --------- --------- ---------
Pro forma Group statement of total recognised gains and losses
for the 12 months to 30 September 2004
------------------------------ ------ ---------- -----------
Note Pro forma Pro forma
12 months to 12 months to
30 September 30 September
2004
2003
£m £m
------------------------------ ------ ---------- -----------
Profit for the year 16 2.5 5.1
Dividend - December 2003 paid 7 (4.0) -
Dividend - September 2004 proposed 7 (4.9) -
------------------------------ ------ ---------- -----------
Retained (loss)/profit for the year (6.4) 5.1
Net exchange adjustments offset in
reserves 16 - 1.3
Tax on exchange adjustments offset in
reserves 16 - (0.2)
Release of pre-acquisition loan 16 1.0 -
Tax on release of pre-acquisition loan 16 (0.4) -
Unwinding of licensing obligation 16 0.1 -
------------------------------ ------ ---------- -----------
Total recognised (loss)/gain relating to
the year (5.7) 6.2
------------------------------ ------ ---------- -----------
Pro forma Group reconciliation of movements in shareholders' funds
for the 12 months to 30 September 2004
------------------------------ ----- ----------- ----------
Note Pro forma 12 Pro forma 12
months to months to 30
30 September September 2003
2004
£m £m
------------------------------ ------ ----------- ----------
Profit for the
year 16 2.5 5.1
Dividend -
December 2003
paid 7 (4.0) -
Dividend -
September 2004
proposed 7 (4.9) -
------------------------------ ------ ----------- ----------
Retained
(loss)/profit
for the year (6.4) 5.1
Premium on
shares issued
during the
year 16 0.9 0.1
Net exchange
adjustments
offset in
reserves 16 - 1.3
Tax on
exchange
adjustments
offset in
reserves 16 - (0.2)
Release of
pre-acquisitio
n loan 16 1.0 -
Tax on release
of
pre-acquisitio
n loan 16 (0.4) -
Unwinding of
licensing
obligation 16 0.1 -
------------------------------ ------ ----------- ----------
Net movement
in
shareholders'
funds (4.8) 6.3
Opening equity
shareholders'
funds 112.5 106.2
------------------------------ ------ ----------- ----------
Equity
shareholders'
funds as at 30
September 107.7 112.5
------------------------------ ------ ----------- ----------
Group balance sheet
as at 30 September 2004
------------------------- ------------- --------- ---------
Note 30 September Pro forma
2004
30 September
2003
£m £m
------------------------- -------------- --------- ---------
Fixed assets
Intangible assets 9 108.4 115.9
Tangible assets 10 3.5 3.5
------------------------- -------------- --------- ---------
111.9 119.4
Current assets
Stocks 11 5.0 4.2
Debtors 12 39.5 36.0
Investments 13 2.5 9.0
Cash at bank and in hand 12.0 8.6
------------------------- -------------- --------- ---------
59.0 57.8
Creditors: amounts falling due within
one year 14 (62.3) (62.7)
------------------------- -------------- --------- ---------
Net current liabilities (3.3) (4.9)
------------------------- -------------- --------- ---------
Total assets less current liabilities 108.6 114.5
------------------------- -------------- --------- ---------
Provisions for liabilities and charges 15 (0.9) (2.0)
------------------------- -------------- --------- ---------
Net assets 107.7 112.5
------------------------- -------------- --------- ---------
Capital and reserves
Called-up share capital 16 3.2 3.2
Share premium account 16 23.7 -
Merger reserve 16 109.0 109.0
Other reserves 16 - 21.8
Profit and loss account 16 (28.2) (21.5)
------------------------- -------------- --------- ---------
Equity shareholders' funds 107.7 112.5
------------------------- -------------- --------- ---------
Pro forma Group cash flow statement
for the 12 months to 30 September 2004
------------------------------ --------- ---------
Pro forma Pro forma
12 months to 30 12 months to 30
September 2004 September 2003
£m £m
------------------------------ --------- ---------
Net cash
inflow from
operating
activities 17.7 25.3
------------------------------ --------- ---------
Returns on investments and servicing of
finance
Interest
received 0.6 0.5
Interest paid (0.4) (0.4)
------------------------------ --------- ---------
Net cash
inflow from
returns on
investments
and servicing
of finance 0.2 0.1
------------------------------ --------- ---------
Tax
Tax paid (6.6) (7.6)
Tax received 0.8 2.0
------------------------------ --------- ---------
Net tax paid (5.8) (5.6)
------------------------------ --------- ---------
Capital expenditure and financial investment
Purchase of
tangible fixed
assets (1.4) (1.4)
Sale of
tangible fixed
assets - 0.2
Sale of fixed
asset
investments - 0.1
------------------------------ --------- ---------
Net cash
outflow from
capital
expenditure
and financial
investment (1.4) (1.1)
------------------------------ --------- ---------
Acquisitions and disposals
Purchase of
subsidiary
undertakings (3.3) (3.7)
Net cash
acquired with
subsidiary
undertakings - 0.5
Disposal of
subsidiary
undertakings 0.2 -
Purchase of
magazine
titles (5.6) (10.2)
Purchase of
subscription
lists - (0.1)
Payment of
deferred
consideration (0.7) (0.7)
------------------------------ --------- ---------
Net cash
outflow for
acquisitions
and disposals (9.4) (14.2)
------------------------------ --------- ---------
Dividends
Equity
dividends paid (4.0) -
------------------------------ --------- ---------
Net cash
outflow from
payment of
dividends (4.0) -
------------------------------ --------- ---------
Management of liquid resources
Decrease/(incr
ease) in
short-term
deposits with
bank 6.5 (9.0)
------------------------------ --------- ---------
Net cash
inflow/(outflo
w) in
management of
liquid
resources 6.5 (9.0)
------------------------------ --------- ---------
Net cash
inflow/(outflo
w) before
financing 3.8 (4.5)
------------------------------ --------- ---------
Financing
Proceeds from
issue of
Ordinary share
capital 0.9 0.1
Draw down of
bank loans - 5.7
Movement in
other loan (0.5) (0.1)
Repayment of
bank loans (0.3) -
------------------------------ --------- ---------
Net cash
inflow from
financing 0.1 5.7
------------------------------ --------- ---------
Increase in
cash in the
year 3.9 1.2
------------------------------ --------- ---------
Notes to the pro forma Group cash flow statement
for the 12 months to 30 September 2004
A. Cash flow from operating activities
The reconciliation of operating profit to net cash inflow from operating
activities is as follows:
---------------------------------- ----------- ----------
Pro forma Pro forma
12 months to 12 months to 30
September 2003
30 September £m
2004
£m
---------------------------------- ----------- ----------
Operating profit 7.0 11.6
Depreciation charge 1.5 1.2
Amortisation of intangible
assets 16.6 11.7
Movement in provisions (1.2) (2.2)
(Increase)/decrease in stocks (1.4) 1.0
(Increase)/decrease in debtors (1.6) 2.6
Decrease in creditors (3.2) (0.6)
---------------------------------- ----------- ----------
Net cash inflow from operating
activities 17.7 25.3
---------------------------------- ----------- ----------
B. Analysis of net cash
------------- -------- ----------- -------- --------- -------------
Cash flow Other non- Exchange At 30 September
At 1 cash movements 2004
October changes
2003 £m £m £m £m
£m
------------- -------- ----------- -------- --------- -------------
Cash at bank
and in hand 8.6 3.9 - (0.5) 12.0
Debt due
within one
year (7.2) 0.8 1.0 0.7 (4.7)
Liquid
resources 9.0 (6.5) - - 2.5
------------- -------- ----------- -------- --------- -------------
Net cash 10.4 (1.8) 1.0 0.2 9.8
------------- -------- ----------- -------- --------- -------------
Other non-cash changes relate to the release of a pre-acquisition loan (see note
16).
C. Reconciliation of movement in net cash
------------------------------------ --------- ---------
Pro forma Pro forma
12 months to 30 12 months to 30
September 2004 September 2003
£m £m
------------------------------------ --------- ---------
Net cash at 1
October 10.4 4.9
Increase/(decr
ease) in cash 3.9 (4.5)
Movement in
deposits (6.5) 9.0
Movement in
borrowings 0.8 (0.1)
Non-cash
movements
(note 16) 1.0 -
Exchange
movements 0.2 1.1
------------------------------------ --------- ---------
Net cash at 30
September 9.8 10.4
------------------------------------ --------- ---------
Notes to the pro forma financial information
1. Basis of preparation of pro forma financial information
In order to assist readers following the change of financial year end, pro forma
financial information has been prepared for the 12 months to 30 September 2004
and 2003. These results are unaudited and do not constitute statutory accounts
as defined in section 240 of the Companies Act 1985.
2. Segmental reporting
The Group is involved in one class of business, the publication of magazines.
The analysis of turnover by type, geographical analyses of turnover and profit
before tax were as follows:
a) Turnover by type
--------------------- ----------- ------------
Pro forma Pro forma
12 months to 30 12 months to 30
September 2004 September 2003
£m £m
--------------------- ----------- ------------
Circulation 129.8 122.6
Advertising 56.2 51.0
Other 4.4 4.1
--------------------- ----------- ------------
Total 190.4 177.7
--------------------- ----------- ------------
b) Turnover by origin
--------------------- ----------- ------------
Pro forma Pro forma
12 months to 30 12 months to 30
September 2004 September 2003
£m £m
--------------------- ----------- ------------
United Kingdom 100.4 101.0
United States 52.0 43.3
Mainland
Europe 39.9 35.8
Turnover
between
segments (1.9) (2.4)
--------------------- ----------- ------------
Total 190.4 177.7
--------------------- ----------- ------------
c) Turnover by destination
--------------------- ----------- -----------
Pro forma Pro forma
12 months to 30 12 months to 30
September 2004 September 2003
£m £m
--------------------- ----------- -----------
United Kingdom 83.5 84.9
United States 53.6 45.9
Mainland
Europe 46.0 43.2
Rest of the
world 9.2 6.1
Turnover
between
segments (1.9) (2.4)
--------------------- ----------- -----------
Total 190.4 177.7
--------------------- ----------- -----------
d) Profit on ordinary activities before tax by origin
------------------------------ ----------- ------------
Pro forma Pro forma
12 months to 30 12 months to
September 2004 30 September
2003
£m £m
------------------------------ ----------- ------------
United Kingdom 11.4 12.5
United States 0.4 5.1
Mainland
Europe (1.7) (2.8)
Central costs (2.9) (3.0)
------------------------------ ----------- ------------
Total 7.2 11.8
------------------------------ ----------- ------------
3. Operating profit
----------------- ----------- ------------
Pro forma Pro forma
12 months to 30 12 months to 30
September 2004 September 2003
£m £m
----------------- ----------- ------------
Turnover 190.4 177.7
Cost of sales (126.3) (115.0)
----------------- ----------- ------------
Gross profit 64.1 62.7
Distribution
costs (13.1) (10.7)
----------- ------------
Administration
expenses (27.4) (29.0)
Amortisation
of intangible
assets (16.6) (11.4)
----------- ------------
Total
administration
expenses (44.0) (40.4)
----------------- ----------- ------------
Operating
profit 7.0 11.6
----------------- ----------- ------------
4. Employees and Directors
-------------------------------- ----------- -----------
Staff costs Pro forma 12 Pro forma 12
months to 30 months to 30
September 2004 September 2003
£m £m
-------------------------------- ----------- -----------
Wages and
salaries 32.8 31.9
Social
security costs 5.6 4.6
Other pension
costs 0.7 0.6
-------------------------------- ----------- -----------
Total 39.1 37.1
-------------------------------- ----------- -----------
5. Net interest receivable and similar items
------------------------------- ---------- ----------
Pro forma 12 Pro forma 12
months to 30 months to 30
September 2004 September 2003
£m £m
------------------------------- ---------- ----------
Interest
receivable 0.6 0.5
Exchange
(losses)/gains (0.2) 0.2
------------------------------- ---------- ----------
Total interest
receivable and
similar items 0.4 0.7
------------------------------- ---------- ----------
Interest
payable on
bank loans and
overdrafts (0.3) (0.3)
Other interest
payable (0.1) (0.1)
Amortisation
of discount
relating to
property
provisions - (0.1)
Amortisation
of discount
arising on
fair valuing
of deferred
consideration - (0.1)
------------------------------- ---------- ----------
Total interest
payable and
similar
charges (0.4) (0.6)
------------------------------- ---------- ----------
Net interest
receivable and
similar items - 0.1
------------------------------- ---------- ----------
6. Tax on profit on ordinary activities
The tax charges for the 12 months to 30 September 2004 and 12 months to 30
September 2003 are calculated using the weighted average effective rates for
each 12 month period, derived from the Company's financial statements for the
years 2002 and 2003, and the 9 months to 30 September 2004.
7. Dividends
------------------------------- ----------- ----------
Equity dividends September 2004 December 2003
------------------------------- ----------- ----------
Number of shares in issue at end of period
(million) 324.5 320.7
Final dividend proposed/paid (pence per
share) 1.5 1.25
------------------------------- ----------- ----------
Dividend proposed/paid (£million) 4.9 4.0
------------------------------- ----------- ----------
The final dividend of 1.25p was the Company's first dividend, announced on 10
March 2004. The final dividend of 1.5p is the Company's second dividend,
announced on 7 December 2004. No interim dividend has been paid in either 2003
or 2004.
8. Earnings per share
Basic earnings per share are calculated using the weighted average number of
Ordinary shares outstanding during the year. Diluted earnings per share have
been calculated by taking into account the dilutive effect of Ordinary shares
that would be issued on conversion into Ordinary shares of options held under
employee share schemes.
The adjusted earnings per share removes the effect of the amortisation of
intangible assets from the calculation as follows:
Adjustments to profit on ordinary activities after tax
------------------------------- ----------- ----------
Pro forma 12 Pro forma 12
months to 30 months to 30
September 2004 September 2003
£m £m
------------------------------- ----------- ----------
Profit on
ordinary
activities
after tax 2.5 5.1
Add:
amortisation
of intangible
assets 16.6 11.7
------------------------------- ----------- ----------
Adjusted
profit on
ordinary
activities
after tax 19.1 16.8
------------------------------- ----------- ----------
2004 2003
--------------------------------- --------- ---------
Weighted average number of shares outstanding during
the period:
- basic 323,215,690 321,247,818
- dilutive effect of share options 886,179 1,991,072
- diluted 324,101,869 323,238,890
Basic earnings per share (in pence) 0.8 1.6
Adjusted basic earnings per share (in pence) 5.9 5.2
Diluted earnings per share (in pence) 0.8 1.6
Adjusted diluted earnings per share (in pence) 5.9 5.2
--------------------------------- --------- ---------
The adjustments to profit have the following effect:
--------------------------------- --------- ---------
2004 2003
pence pence
--------------------------------- --------- ---------
Basic earnings per share 0.8 1.6
Amortisation of intangible assets 5.1 3.6
--------- ---------
Adjusted basic earnings per share 5.9 5.2
--------- ---------
Diluted earnings per share 0.8 1.6
Amortisation of intangible assets 5.1 3.6
--------- ---------
Adjusted diluted earnings per share 5.9 5.2
--------------------------------- --------- ---------
9. Intangible fixed assets
--------------------------------------- -----------
Pro forma Goodwill
Group £m
--------------------------------------- -----------
Cost
At 1 October 2003 316.1
Additions 10.1
Adjustments to fair value on prior year acquisitions 0.1
Exchange adjustments (1.5)
--------------------------------------- -----------
At 30 September 2004 324.8
--------------------------------------- -----------
--------------------------------------- -----------
Amortisation
At 1 October 2003 (200.2)
Charge for the year (16.6)
Exchange adjustments 0.4
--------------------------------------- -----------
At 30 September 2004 (216.4)
--------------------------------------- -----------
Net book value at 30 September 2004 108.4
--------------------------------------- -----------
Net book value at 30 September 2003 115.9
--------------------------------------- -----------
10. Tangible fixed assets
-------------- ---------- ---------- ---------- ----------
Pro forma Land and Plant and Equipment, Total
buildings machinery fixtures and
fittings
Group £m £m £m £m
-------------- ---------- ---------- ---------- ----------
Cost
At 1 October
2003 1.9 5.7 2.9 10.5
Reclassificati
on 0.4 1.1 (1.5) -
Additions 0.1 1.0 0.3 1.4
Disposals (0.1) (0.9) (0.4) (1.4)
Exchange
adjustments 0.1 (0.1) - -
-------------- ---------- ---------- ---------- ----------
At 30
September 2004 2.4 6.8 1.3 10.5
-------------- ---------- ---------- ---------- ----------
Depreciation
At 1 October 2003 (0.6) (4.2) (2.2) (7.0)
Reclassification (0.1) (0.7) 0.8 -
Charge for the year (0.2) (1.2) (0.1) (1.5)
Disposals 0.1 0.9 0.4 1.4
Exchange adjustments - - 0.1 0.1
-------------- ---------- ---------- --------- ----------
At 30 September
2004 (0.8) (5.2) (1.0) (7.0)
-------------- ---------- ---------- ---------- ----------
Net book value
at 30 September
2004 1.6 1.6 0.3 3.5
-------------- ---------- ---------- ---------- ----------
Net book value
at 30 September
2003 1.3 1.5 0.7 3.5
-------------- ---------- ---------- ---------- ----------
11. Stocks
------------------------------ ----------- -----------
30 September Pro forma 30
------------------------------ ----------- September
-----------
2004 2003
£m £m
------------------------------ ----------- -----------
Raw materials 1.6 1.5
Work in progress 2.8 2.2
Finished goods 0.6 0.5
------------------------------ ----------- -----------
Total 5.0 4.2
------------------------------ ----------- -----------
12. Debtors
--------------------- ---------- ---------
30 September Pro forma 30
--------------------- ---------- September
---------
2004 2003
£m £m
--------------------- ---------- ---------
Amounts falling due within one year:
Trade debtors 31.0 27.2
Corporation tax recoverable 2.0 1.0
Other debtors 2.9 2.5
Prepayments and accrued income 2.7 4.4
--------------------- ---------- ---------
38.6 35.1
Amounts falling due after more than one year:
Other debtors 0.9 0.9
--------------------- ---------- ---------
Total 39.5 36.0
--------------------- ---------- ---------
Deferred tax
At 30 September 2004 a deferred tax asset has been recognised within other
debtors as follows:
------------------------------ ---------- ----------
30 September Pro forma 30
September
2004 2003
£m £m
------------------------------ ---------- ----------
Amounts falling due within one year 0.9 0.4
Amounts falling due after more than
one year 0.9 0.9
-------------------------------- ---------- ----------
13. Current asset investments
--------------------- ---------- ---------
30 September Pro forma 30
--------------------- September
--------- ---------
2004 2003
£m £m
--------------------- ---------- ---------
Short-term bank accounts 2.5 9.0
--------------------- ---------- ---------
Total 2.5 9.0
--------------------- ---------- ---------
14. Creditors: amounts falling due within one year
--------------------- ---------- ---------
30 September Pro forma 30
--------------------- ---------- September
---------
2004 2003
£m £m
--------------------- ---------- ---------
Bank and other borrowings 4.7 5.4
Trade creditors 16.5 16.5
Corporation tax 2.1 3.6
Other creditors including taxation and
social security 9.3 9.0
Accruals and deferred income 24.7 27.5
Proposed dividend 4.9 -
Deferred consideration for
acquisitions 0.1 0.7
--------------------- ---------- ---------
Total 62.3 62.7
--------------------- ---------- ---------
15. Provisions for liabilities and charges
------------------ ----------- ------------- -----------
Property and Restructuring Pro forma
dilapidations
£m £m Total
£m
------------------ ----------- ------------- -----------
At 1 October 2003 1.6 0.4 2.0
Adjustments to fair
value on prior year
acquisitions - 0.1 0.1
Charge in the year 0.1 - 0.1
Utilised in year (0.8) (0.5) (1.3)
------------------ ----------- ------------- -----------
At 30 September 2004 0.9 - 0.9
------------------ ----------- ------------- -----------
16. Capital and reserves
Called up share Share premium Merger reserve Other reserves Profit & loss Pro forma Total
capital account account
£m £m £m £m £m £m
-------------- -------- -------- -------- -------- -------- ---------
At 1 October
2003 3.2 - 109.0 21.8 (21.5) 112.5
Premium on
exercise of
share options - 0.9 - - - 0.9
Release of
pre-acquisitio
n loan - - - 1.0 - 1.0
Tax on release
of
pre-acquisitio
n loan - - - - (0.4) (0.4)
Transfer of
premium on
share options
exercised - 22.8 - (22.8) - -
Unwinding of
licensing
obligation - - - - 0.1 0.1
Profit for the
year - - - - 2.5 2.5
Dividends - - - - (8.9) (8.9)
-------------- -------- -------- -------- -------- -------- ---------
At 30
September 2004 3.2 23.7 109.0 - (28.2) 107.7
-------------- -------- -------- -------- -------- -------- ---------
During the period a pre-acquisition loan has been released to the other reserves
in accordance with the 1999 US acquisition agreement.
In addition there has been a transfer of £22.8m from other reserves to the share
premium account. This amount represents the premium on shares issued pursuant to
the exercise of share options granted as part of the consideration for the 1999
acquisition of the US business. All such options have now been fully exercised
and accordingly, the total premium has been transferred to the share premium
account.
17. Acquisitions
The results for the 12 months to 30 September 2004 include the undernoted
contribution from acquisitions made in the period:
Guitar One Computec UK Spanish Homes PC Zone/CVG Other Total
£m £m £m £m £m £m
--------------- -------- --------- ---------- ---------- ------ ------
Date acquired 31.10.03 21.11.03 02.08.04 23.08.04 -
--------------- -------- --------- ---------- ---------- ------ ------
Turnover 2.3 2.8 0.1 0.1 - 5.3
--------------- -------- --------- ---------- ---------- ------ ------
Adjusted
operating
profit 0.1 0.7 0.1 - - 0.9
Amortisation
of intangible
assets (0.5) (1.0) (0.1) (0.1) (0.2) (1.9)
--------------- -------- --------- ---------- ---------- ------ ------
Operating loss (0.4) (0.3) - (0.1) (0.2) (1.0)
--------------- -------- --------- ---------- ---------- ------ ------
The aggregate provisional fair values of the net assets acquired at the dates of
these acquisitions are shown below:
Liabilities acquired Book value Revaluations Fair value
£m £m £m
---------------------- -------------- --------- -----------
Tangible fixed assets 0.1 (0.1) -
Debtors 0.7 - 0.7
Other creditors (1.5) - (1.5)
---------------------- -------------- --------- -----------
Net liabilities acquired (0.7) (0.1) (0.8)
---------------------- -------------- --------- -----------
Goodwill 10.1
---------------------- -------------- --------- -----------
Consideration 9.3
---------------------- -------------- --------- -----------
Consideration satisfied by:
Cash 8.6
Licensing obligation 0.3
Deferred consideration 0.1
Associated costs 0.3
---------------------- -------------- --------- -----------
Total consideration 9.3
---------------------- -------------- --------- -----------
Notes:
1. The fair value adjustments represent the revaluation of fixed assets to
reflect the market value of assets acquired at the date of acquisition.
2. Licensing obligation - under the acquisition agreement of Computec UK, a
subsidiary company of the Group will provide licensing and syndication rights
for a 5 year period to Computec UK's former parent company, Computec AG. The
value of this obligation has been fair valued with reference to the Group's
existing licensing contracts and discounted at a rate equivalent to the Group's
cost of capital.
3. The deferred consideration of £0.1m relates to the purchase of Spanish Homes
Magazine and will be paid in the first half of 2005.
During the last two years the Group has spent £22.4m on acquisitions. In the 12
months to September 2003 the results for the acquired businesses were as
follows:
HDP Guitar World Guitar One Computec UK Spanish Homes PC Zone/CVG Other Total
£m £m £m £m £m £m £m £m
--------- ------- ------- -------- -------- ------- -------- ------ ------
Country France US US UK UK UK
Date 28.04.03 10.09.03 31.10.03 21.11.03 02.08.04 23.08.04 -
acquired ------- ------- -------- -------- ------- -------- ------ ------
---------
Turnover 2.8 - - - - - - 2.8
Adjusted
operating
profit (0.2) - - - - - - (0.2)
Amortisation
of
intangible (1.0) (0.1) - - - - - (1.1)
assets ------- ------- -------- -------- ------- -------- ------ ------
---------
Operating (1.2) (0.1) - - - - - (1.3)
loss ------- ------- -------- -------- ------- -------- ------ ------
---------
In the 12 months to 30 September 2004 acquisitions contributed as follows:
HDP Guitar World Guitar One Computec UK Spanish Homes PC Zone/CVG Other Total
£m £m £m £m £m £m £m £m
--------- ------- ------- -------- -------- ------- -------- ------ ------
Country France US US UK UK UK
Date 28.04.03 10.09.03 31.10.03 21.11.03 02.08.04 23.08.04 -
acquired ------- ------- -------- -------- ------- -------- ------ ------
---------
Turnover 7.8 7.7 2.3 2.8 0.1 0.1 - 20.8
Adjusted
operating
profit 0.9 0.6 0.1 0.7 0.1 - - 2.4
Amortisation
of
intangible (2.4) (2.0) (0.5) (1.0) (0.1) (0.1) (0.2) (6.3)
assets ------- ------- -------- -------- ------- -------- ------ ------
---------
Operating (1.5) (1.4) (0.4) (0.3) - (0.1) (0.2) (3.9)
loss ------- ------- -------- -------- ------- -------- ------ ------
---------
In total, over the last two years, the results include the undernoted
contribution from acquisitions:
HDP Guitar World Guitar One Computec UK Spanish Homes PC Zone/CVG Other Total
£m £m £m £m £m £m £m £m
--------- ------- ------- -------- -------- ------- -------- ------ ------
Country France US US UK UK UK
Date 28.04.03 10.09.03 31.10.03 21.11.03 02.08.04 23.08.04 -
acquired ------- ------- -------- -------- ------- -------- ------ ------
---------
Turnover 10.6 7.7 2.3 2.8 0.1 0.1 - 23.6
Adjusted
operating
profit 0.7 0.6 0.1 0.7 0.1 - - 2.2
Amortisation
of
intangible (3.4) (2.1) (0.5) (1.0) (0.1) (0.1) (0.2) (7.4)
assets
Operating (2.7) (1.5) (0.4) (0.3) - (0.1) (0.2) (5.2)
loss ------- ------- -------- -------- ------- -------- ------ ------
---------
18. Post balance sheet events
On 30 November 2004 the Group's UK subsidiary Future Publishing Limited acquired
the title and goodwill of What Laptop for £0.65m in cash. For the year ended 30
September 2004 turnover was £0.8m and the profit attributable to those assets
was £0.2m.
On 3 December 2004 Future Publishing Limited also acquired the entire issued
share capital of Beach Magazines and Publishing Limited (Beach) for an initial
cash consideration of £1.5m and a further £1.5m deferred for one year, subject
to the business meeting certain revenue targets. Beach publishes three titles,
Wedding Day, Junior and Junior Pregnancy & Baby. For the 12 months ended 31
December 2003 turnover for Beach was £3.1m and operating profit was £0.2m.
This information is provided by RNS
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