Sale of Classic Rock and Metal Hammer

RNS Number : 2305B

Future PLC

02 April 2013

 



02 April 2013

Future plc

 

Sale of Classic Rock and Metal Hammer

Future plc (LSE: FUTR), the international media group and leading digital publisher, today announces an agreement for the sale of its UK rock titles Classic Rock, Metal Hammer and associated brand extensions to Team Rock Limited for a gross consideration of £10.2m, to be satisfied in cash on completion. The sale will be made on a cash-free and debt-free basis. Completion will occur on 16 April 2013.

As well as Classic Rock and Metal Hammer magazines, the sale includes associated periodicals Prog and AOR, as well as branded events The Golden Gods and The Classic Rock Roll of Honour.

The sale of these activities is consistent with Future's strategy of active portfolio management and will be followed by a further review of the cost base of the business. Future generates nearly 25% of its revenues from digital markets and has prioritised the development of international digital brands in Technology, Leisure and Sport. 

The net sale proceeds will be used to reduce the level of bank debt and provide additional headroom under the Group's new credit facility for further strategic digital investment. Future retains a portfolio of music-making titles and the musicradar.com website.

For the year ended 30 September 2012, the revenue, gross contribution and adjusted pre-tax profit attributable to these brands were £8.6m, £1.8m and £0.2m respectively. At 30 September 2012, the gross assets relating to these brands were £6.6m.

Mark Wood, Future's Chief Executive, said: "Classic Rock and Metal Hammer generate revenues predominantly from print. Their sale is in line with Future's strategy of prioritising products which are international and digital. These two iconic print brands have not been central to that strategy and will thrive within a broader music business." 

*******

Note:

Adjusted pre-tax profit is calculated as the gross contribution from the relevant assets less an allocation of central overheads and net interest payable based on the pro rata revenues arising from the assets.

Enquiries

Future plc
Mark Wood, Chief Executive                                                       Tel: [phone]
Graham Harding, Chief Financial Officer                                       Tel: [phone]
Chris Taylor, Director of Communications                                     Tel: [phone]

Brunswick Group
Jon Coles / Andy Rivett-Carnac                                                   Tel: [phone]

Numis Securities, Financial Adviser and Broker

Lorna Tilbian/Nick Westlake/Mark Lander                                     Tel: [phone]

Team Rock Ltd
Billy Anderson, Chief Executive                                                   Tel: [phone]

About Future plc:

·      Future plc is an international media group and leading digital publisher, listed on the London Stock Exchange (symbol: FUTR). 

·      We have operations in the UK, US and Australia creating 200 publications, apps, websites and events. 

·      We hold market-leading positions in Technology, Entertainment, Guitar, Creative and Sport & Auto sectors. 

·      We attract more than 50 million monthly global unique users to our websites, which include techradar.com, gamesradar.com, bikeradar.com and musicradar.com.

·      Future sells more than 24 million magazines every year, that's 45 magazines sold every minute. Our most well-known brands include T3, Cycling Plus, Total Film and Official Xbox Magazine. 

·      We deliver over 100 digital editions, selling over three million products powered by our own app creation software, FutureFolio.  

·      Future exports or syndicates over 200 publications to over 90 countries, making us the UK's number one exporter and licensor of magazine content.

·    Future is currently Consumer Digital Publisher of the Year for both the Association of Online Publishers and the Professional Publishers Association.

 

END

 

 

DISFMGGDLMLGFZM