Interim Results

RNS Number : 8016D

Future PLC

22 May 2012

 



Future plc

Interim results for the half-year ended 31 March 2012

Future plc (LSE: FUTR), the international specialist media group and leading digital publisher, today announces its unaudited interim results for the half-year ended 31 March 2012.  An analyst presentation will be held today at 10.30am at the offices of Numis, 10 Paternoster Square, London EC4M 7LT.

Financial Highlights

	Statutory			Normalised*
	H1	H1		H1	H1
	2012	2011	Change	2012	2011	Change
	£m	£m	%	£m	£m	%
Revenue	61.1	68.8	(11%)	59.1	61.5	(4%)
EBITDAE**	2.5	3.0	(17%)	3.0	2.9	3%
Operating profit pre exceptional items (EBITE)***	1.2	1.8	(33%)	1.8	1.9	(5%)
Exceptional items	(1.0)	-		(1.4)	-
Adjusted earnings per share****	(0.1p)	0.2p		0.1p	0.3p
Net debt	16.1	8.9		N/A	N/A

Summary

·      Group digital revenues up 37%, with digital advertising now 44% of total advertising

·      Sales on the iPad pass £3m ($5m) gross since launch of Apple's Newsstand in October 2011

·      Normalised Group revenues down 4%, Normalised Group EBITDAE up 3%

·      UK revenues up 1% with digital increases offsetting print decline

·      US operations remain on track to return to profitability in FY13

Outlook

·      Macro environment remains challenging

·      Full year results expected to be in line with our expectations

Mark Wood, Chief Executive, said:

"After a period of restructuring and refocusing, we are now seeing Future begin to generate significant revenues from new digital products and activities. Group digital revenues increased by 37% and in the UK digital growth offset the decline in print revenues. Our recovery plan for the US is on track and we will meet our commitment to return the US to profitability within the next 12 months.

"We are confident the momentum now building across the Group will ensure we meet our expectations for the full year.

"Future is seizing the opportunities offered by new platforms and channels to reach new audiences and grow a global digital business. On Apple's iPad, Future is one of the world's leading digital publishers in sales volumes and number of titles. That is a sign of how far we have come in a very short time."

 

Enquiries:

Future plc
Mark Wood, Chief Executive                                           Tel: [phone]
Graham Harding, Group Finance Director                         Tel: [phone]
Chris Taylor, Head of Communications                             Tel: [phone]

FTI Consulting:
Charles Palmer/Jon Snowball                                          Tel: [phone]

Notes
* Normalised results are presented to better reflect the current size and structure of the business and give a better indication of the performance of the ongoing business. The normalised results exclude revenues and costs relating to activities closed or divested between 1 October 2010 and 31 March 2012, but include any new activities launched in that period. Closed or divested activities are not such that they fall to be classed as discontinued under IFRS. The analysis in this announcement is, except where it refers to statutory results, based on normalised results.

** EBITDAE represents earnings before interest, tax, depreciation, amortisation and exceptional items.

*** EBITE represents earnings before interest, tax and exceptional items.

**** Adjusted earnings per share exclude only exceptional items and related tax effects.

The most significant foreign currency affecting the Group is the US Dollar. The average exchange rate for the period was $1.5719=£1 (2011: $1.5914=£1), representing a 1% strengthening of the US Dollar against Sterling.

About Future:

Future plc is an international media group and leading digital publisher, listed on the London Stock Exchange (symbol: FUTR).  Founded in 1985 with one magazine, today we have operations in the UK, US and Australia creating 200 specialist publications, apps, websites and events. We hold market-leading positions in Games, Film, Music, Technology, Cycling, Crafts and Automotive. 

Our biggest brands include TechRadar, T3, Total Film, BikeRadar, MusicRadar, Classic Rock, Mollie Makes, GamesRadar and Official Xbox Magazine. TechRadar is the UK's number one consumer technology website. Future sells 2.2 million magazines each month; we attract more than 35 million monthly unique visitors to our websites; and we deliver over 100 digital editions and bespoke apps on tablet.

Future exports or syndicates publications to 89 countries, making us the UK's number one exporter and licensor of magazine content. Future is the Association of Online Publishers' Consumer Digital Publisher of the Year.

Chief Executive's statement:

In keeping with the commitments we made in November, the new management team has restructured and refocused the business in both the UK and the US. Among those changes we reduced headcount by over 10% and reduced corporate costs, delivering annualised savings of £4.5m by the end of FY12.

We have closed or sold a number of non-core print titles and today report the sale of our trucking titles.

We have significantly changed the way the company operates to ensure even greater focus on the transition to a more digital business. Future has shown it can adapt quickly to the changing ways consumers access content and can seize the opportunities opened up by new digital channels and platforms to reach new audiences. We are changing the publishing model and evolving a truly global business.

The backdrop for this transition has not been easy, with print retail and advertising under pressure. But

in the period we achieved 37% growth in Group digital revenues and managed to offset the structural decline in print revenues in the UK.

US Operations

In the US we have made significant progress in turning round the business. Cost reductions included disposal of our US Music titles, an overall 31% reduction in staff numbers, and vacation of property.

We see encouraging signs in US advertising and in the Games sector expect to see benefits from a new advertising sales partnership with Gamefly, the leading video game rental service. We are also creating the basis for sustained new business in the Technology and Cycling sectors. In April we launched a US-customised version of TechRadar, the news and reviews website which is our leading digital property and attracts around 10m global unique visitors a month. In June we will launch a customised version of BikeRadar, our leading cycling website. 

These launches enable us to sell inventory in the US and position us to build out our business in both of these growth markets.

We remain confident of returning the US operation to profitability within the next 12 months and in the longer term see the US offering significant potential for Future's digital products.

The Future Advantage

Future's core strength is outstanding content in a range of specialist areas and this is now combined with market-leading digital capabilities, which include app development, search optimisation, digital marketing and interaction with social networks such as Facebook, Twitter and Pinterest.

Future attracts over 35 million unique visitors a month to its websites and has more than two million Facebook followers for its brands, double the combined level for the whole of the mainstream UK daily press.

The rapid digital revolution is providing access to more and more people via broadband, mobile and tablets. Future's advantage is that through these networks we can now reach audiences of interested and passionate people in every continent. Our content travels well. Good writing about Cycling, Computer Music, Technology, Crafts or Film appeals as much to audiences in Tokyo as in Rio or Berlin.

Our long experience of multimedia production means we are ambitious to produce the most innovative, video-rich digital content in the market. That is vital. We are competing increasingly not with traditional publishers but with cutting-edge multi-media producers who come from all parts of the media spectrum.

The Tablet Opportunity

The rapid evolution of the tablet - spearheaded by Apple's iPad - is creating an entirely new market for digital products. Importantly, it is one in which consumers are prepared to pay for content. Tablets first went on sale two years ago but the market is expected to reach over 940 million devices by 2015. It presents an enormous opportunity for Future.

We are one of the world leaders here. Our sales on Apple's Newsstand platform on the iPad have passed £3m since its launch last October, are running at £0.5m a month, and continue to grow. We have sold over 830,000 copies on the Newsstand and 45% of our sales are subscriptions. 80% of our market is outside the UK and close to 90% of subscribers are new customers.

T3 - Future's highly interactive lifestyle gadget magazine - is the top-selling digital title in the UK. In the US, Future's MacLife is the leading technology title. We are launching new formats, including our first weekly -Cycling News HD - and we are repackaging archived content into wholly new iPad products. We are working closely with other tablet platform producers, including Amazon and Barnes & Noble in the US.

We have developed our own tablet software, FutureFolio, which produces interactive and versatile products with minimal requirement for additional production resource. We are offering it on licence to other publishers.

Building Global Brands

We see Technology and Cycling verticals as our top-priority global brands. Our strategy is to adapt these products to different target markets, grow advertising and then diversify revenues as we increase audience engagement. 

The launch of TechRadar and BikeRadar in the US are the first phase, but we have ambitious plans to grow our positions in these markets into other markets in Europe, Latin America and Asia, either alone or in partnership. We are gaining experience of producing non-English products aimed at the German, Italian and Chinese markets.

In the UK we have used digital tools to create and build two very successful new multi-platform brands in Mollie Makes - a contemporary craft magazine for women under 35 - and N-Photo, a photography title and now number one in its sector. Mollie Makes, built around blogs and social network pages, has been Future's most successful new magazine launch in over a decade. We are planning a follow-up lifestyle title in the Autumn.   

Outlook

The macro-economic environment remains challenging and this inevitably has an impact on consumer and commercial spending. However, we are very focused on delivering improved results in the second half. The combined effect of seasonality, cost savings and the momentum now building across the Group give us confidence we can achieve our expectations for the full year.

Future is defined by the strength of its innovation, and our company has emerged as a recognised digital leader. We are now moving the business to a more digital model, seizing global opportunities quickly and diversifying our revenue streams.

Mark Wood,

Chief Executive

22 May 2012

Interim statement

Statutory results for half-year to 31 March 2012

Statutory results for the period	2012 £m	2011 £m
Revenue	61.1	68.8
EBITDAE	2.5	3.0
Depreciation charge	(0.5)	(0.6)
Amortisation of intangible assets	(0.8)	(0.6)
EBITE	1.2	1.8
Exceptional items	(1.0)	-
EBIT (Operating profit)	0.2	1.8
Net finance costs	(0.9)	(0.6)
Pre-tax (loss)/profit	(0.7)	1.2
Earnings per share (p)	(0.3)p	0.2p
Adjusted earnings per share (p)	(0.1)p	0.2p
Dividends relating to the period (pence per share)	-	0.5p

As noted in the Basis of preparation on page 18, the following changes have been made in the reporting period as follows:

·      We are focussing on EBITDAE and EBITE (as defined above) rather than EBITAE from a profit perspective in recognition of the nature of depreciation and amortisation under IFRS.

·      The estimated useful life of web development expenditure has been increased to two years rather than one year, which has been used in prior years. This change reflects a more realistic period over which benefits are expected to accrue and is more consistent with market practice.

Normalised results for half-year to 31 March 2012

The normalised results for the Group, and a reconciliation to the statutory results above, are set out on pages 27 to 29.

Normalised results are presented to reflect better the current size and structure of the business and to give a better indication of the performance of the ongoing business. The normalised results exclude revenues and costs relating to activities closed or divested between 1 October 2010 and 31 March 2012, but include any new activities launched in that period.

Normalised results for the period	2012 £m	2011 £m
Revenue	59.1	61.5
EBITDAE	3.0	2.9
Depreciation charge	(0.5)	(0.5)
Amortisation of intangible assets	(0.7)	(0.5)
EBITE	1.8	1.9
Exceptional items	(1.4)	-
EBIT (Operating profit)	0.4	1.9
Net finance costs	(0.9)	(0.6)
Pre-tax (loss)/ profit	(0.5)	1.3
Adjusted earnings per share (p)	0.1p	0.3p

Review of operations

The review of operations is based primarily on a comparison of normalised half-year results for the six months ended 31 March 2012 with those for the six months ended 31 March 2011. Unless otherwise stated, change percentages relate to a comparison of these two periods.

Key Performance Indicators

An update on the key performance indicators is given below:

	Half-year 2012	Half-year 2011	Year 2011
Corporate KPIs
EBITDAE	3.0	2.9	7.3
Year on year movement in EBITDAE	+3%	-28%	-18%
EBITE	1.8	1.9	5.2
Year on year movement in EBITE	-5%	-5%	+6%
Digital KPIs
Number of unique users logging onto our websites	35m	25m	30m
Year on year movement in digital revenues	+37%	+27%	+30%
Number of digital magazines sold per month (thousands)	194	24	35
Digital subscriber base (thousands)	175	28	50
Print KPIs
Number of magazines sold per month	2.2m	2.6m	2.6m
Print subscriber base (thousands)	941	1,162	971
Copies sold as a percentage of copies printed (including subscriptions)	55%	58%	56%
Year on year movement in print advertising revenues	-12%	-12%	-12%

The focus on EBITDAE and EBITE rather than EBITAE reflects the fact that depreciation and amortisation under IFRS are almost synonymous and should be treated together rather than separately.

Analysis of revenue for half-year to 31 March

	2012 £m	2011 £m	Change %
Digital	9.6	7.0	+37%
Print	45.1	50.1	-10%
Customer Publishing	4.4	4.4	-
Total revenue	59.1	61.5	-4%

Whilst Group revenue overall fell by 4% (4% in constant currencies) to £59.1m digital revenues generated from our UK and US based businesses continued to show strong growth and were up 37%, helped by the launch of Apple's Newsstand and our ability to maximise this opportunity. Digital revenues now represent 16% of the Group revenues, with digital advertising now representing 44% of our total advertising revenues.

In contrast print based revenues continued to decline in the UK and the US and customer publishing revenues remained consistent period on period.

On a geographic basis, the revenues arising from the UK based business, which now represents 80% of the Group in revenue terms, continued to be resilient in tough market conditions with increases in digital revenues offsetting the declines in print.

Revenue from the US based business fell by 20% impacted significantly by the continuing decline in print related revenues arising from circulation and advertising. This decline was not unexpected and has been largely offset by reductions in the cost base.

	2012 £m	2011 £m	Change %
UK	47.8	47.3	+1%
US	11.6	14.5	-20%
Intra-group	(0.3)	(0.3)	0%
Total revenue	59.1	61.5	-4%

Analysis of EBITDAE for half-year to 31 March

	2012 £m	2011 £m	Change %
UK	4.4	3.9	+13%
US	(1.4)	(1.0)	-40%
Total EBITDAE	3.0	2.9	+3%

Following the management changes made at the beginning of the half-year we are presenting central costs as part of the UK based business.

Group EBITDAE increased by 3% in the first half-year, with an increase in the UK-based business of £0.5m offsetting the shortfall in the US-based business of £0.4m. Further detail on these movements is given in the following sections of the statement.

UK based performance in half-year

	2012 £m	2011 £m	Change %
Circulation revenue	30.3	30.4	0%
Advertising revenue	12.9	12.8	1%
Customer publishing	2.5	2.0	25%
Licensing, events and other	2.1	2.1	0%
Total revenue	47.8	47.3	1%
EBITDAE	4.4	3.9	13%
EBITDAE margin	9.2%	8.2%
Depreciation	(0.4)	(0.4)	0%
Amortisation	(0.3)	(0.2)	50%
EBITE	3.7	3.3	12%
EBITE margin	7.7%	7.0%

As noted above UK based activities continued to be resilient with revenue for the half-year up by 1%. Within this we saw digital revenues increase by 48%, offsetting the declines in print related revenues.

Circulation revenue was flat overall, with the largest negative impact arising from print newstrade which was down 8%. This decline was offset by increases in print subscriptions of 3%, and digital copy sales - which have increased from 1% of total circulation revenue to 5% of total circulation revenue in the half-year.

Advertising revenues overall were up 1%, driven by digital advertising revenues increasing by 17%, more than offsetting the print decline of 8%.

The increase of £0.5m in EBITDAE is driven by net cost savings across the UK-based business, including the impact of the restructuring that took place last summer and the senior management changes made in October 2011. Headcount in the UK at the end of the half-year was 876, a net reduction of 50 on a normalised basis from the end of 2011.

UK performance by sector is set out in the table below:

	2012 Revenue £m	2012 Contrib'n £m	2012 Margin %	2012 % of Revenue	2011 Revenue £m	2011 Contrib'n £m	2011 Margin %
Games	8.8	1.9	22%	18%	9.6	2.5	26%
Music and Movies	11.4	2.6	23%	24%	11.4	2.7	24%
Technology	14.2	3.9	27%	30%	13.7	4.5	33%
Active	13.4	3.5	26%	28%	12.6	3.1	25%
	47.8	11.9	25%	100%	47.3	12.8	27%
Overheads		(7.5)				(8.9)
EBITDAE		4.4	9%			3.9	8%

Whilst the Games sector has been tough as a result of the low levels of activity in hardware and software, the Active sector - which includes our Cycling and Craft activities - has continued to grow revenues and contribution. It also highlights the significant reduction in overheads achieved as a result of headcount reductions and property rationalisation.

US based performance in half-year

	2012 $m	2011 $m	Change %
Circulation revenue	7.6	10.8	(30%)
Advertising revenue	7.1	7.8	(9%)
Customer publishing	3.0	3.9	(23%)
Licensing, events and other	0.6	0.5	20%
Total revenue	18.3	23.0	(20%)
EBITDAE	(2.2)	(1.4)	(57%)
EBITDAE margin	(12%)	(6%)
Depreciation	(0.2)	(0.3)	(33%)
Amortisation	(0.5)	(0.5)	-
EBITE	(2.9)	(2.2)	(32%)
EBITE margin	(16%)	(10%)

The US-based activities have undergone a period of significant change in the half-year including the sale of the New York Music titles, the rationalisation of a number of print products and a reduction in the number of senior management roles.

Circulation revenue overall fell by 30% with the largest negative impact arising from print newstrade which was down 40%. Advertising revenues were down 9%, with digital advertising up 11% and print advertising down 28%. Digital advertising in the US now represents 59% of total advertising revenues.

The decrease of $0.8m in EBITDAE is driven by the revenue declines in the half-year not being entirely offset by cost savings. Significant cost savings have been made to rebase the business, with headcount now at around 150 people, all based in San Francisco. At the end of May we will be relocating everyone in San Francisco onto one floor and plan to sublet the other floor that we currently occupy in that building.

US performance by sector is set out in the table below:

	2012 Revenue $m	2012 Contrib'n $m	2012 Margin %	2012 % of Revenue	2011 Revenue $m	2011 Contrib'n $m	2011 Margin %
Games	11.5	1.5	13%	63%	14.5	2.3	16%
Music and Movies	0.1	(0.1)	(100%)	1%	0.1	-	-
Technology	5.0	0.5	10%	27%	6.8	0.7	10%
Active	1.7	(0.2)	(12%)	9%	1.6	(0.2)	(13%)
	18.3	1.7	9%	100%	23.0	2.8	12%
Overheads		(3.9)				(4.2)
EBITDAE		(2.2)	(12%)			(1.4)	(6%)

Seasonality of the business

In the last two years, the ratio of Group EBITDAE across H1:H2 has been 38%:62% (2011) and 44%:56% (2010). This weighting towards the second half of the year is expected to continue this year, driven by:

·      Volume of planned activity.

·      Seasonality of certain sectors of the business, eg Cycling.

Exceptional items

Exceptional items on a statutory basis can be split into three elements as follows:

	£m
Restructuring costs	1.4
Profit on sale of the New York Music titles	(0.3)
Profit on sale of other magazine titles	(0.1)
Total exceptional items	1.0

The restructuring costs arise from the changes to the executive team in October and changes to senior management, editorial, advertising and central service teams in the US and Australia.

As a result of the restructuring activities in the US, two properties will become vacant during the second half-year, and we will review the requirement for vacant property provisions at the year-end.

Disposal of Trucking titles

Today Future confirms the sale on 18 May of Trucking and Truckstop News to Kelsey Publishing Limited for a consideration of up to £1.1m. £1.0m of the gross consideration was paid in cash on completion, with a further £0.1m deferred subject to the financial performance of the assets over the next 12 months.

Net finance costs

Net finance costs were £0.9m (2011: £0.6m) reflecting:

·      a higher fair value gain on interest rate derivatives in the prior year, and

·      an increase in average net debt over the period.

Taxation

The tax charge for the six months ended 31 March 2012 is based on the effective rate, estimated on a full year basis by territory, being applied to the taxable profits or losses of each territory for the six months ended 31 March 2012.

Cash flow and net debt

Net debt at 30 September 2011 was £11.8m. During the period there was a cash inflow from operations before cash exceptional items of £2.0m (2011: cash inflow of £2.1m). Cash inflow from the sale of assets amounted to £1.2m (2011: £nil).

During the half-year cash outflows totalled £7.5m (2011: £3.4m) in respect of the following items:

·      £1.6m (2011: £1.6m) in dividends payable in respect of FY11

·      £3.5m (2011: £nil) in exceptional costs

·      £1.5m (2011: £1.4m) in respect of capital expenditure

·      £0.7m (2011: £0.6m) in net interest payments

·      £0.2m (2011: net receipt of £0.2m) in net taxation payments

Exchange and other movements accounted for the balance of cash flows.

As a result of the above net debt at 31 March 2012 was £16.1m, an increase of 36% from September 2011, as expected.

Bank covenants

The Group was in compliance with all its covenants at 31 March 2012 as set out in the following table:

Covenant	31 March 2012	Limit
Net debt: EBITDA	2.16	Less then 2.8 times
EBITDA: Net interest	5.78	More than 4 times
Cashflow Cover	(1.50)	More than (3.83)

The Group's credit facility was amended and restated in November 2011 and is due to mature on 30 November 2013. As noted in the Annual Report for 2011 interest payable under the credit facility is calculated as the cost of three month LIBOR plus an interest margin of between 2.5% and 3.75%, dependent on covenant ratio. The key covenants are set out in the following table:

Bank Covenant
Net debt/EBITDA	Period to June 2012 - less than 2.55 times Period from September 2012 onwards - less than 2.0 times
EBITDA/Interest	More than 4.0 times
Cash flow cover	Ratios to be met on a quarterly basis measured against an agreed budget
Capital expenditure	115% of agreed annual budget

Interim dividend

As announced in November 2012 there will be no interim or final dividend declared in respect of the year ending 30 September 2012. The Board will review the dividend position again during the year ending 30 September 2013.

Risks that may impact the second half of the financial year

The principal risks and uncertainties that affect the Group on an ongoing basis are described in our Annual Report 2011 (on Pages 16 and 17), which is available at www.futureplc.com. 

The principal risks that may impact the Group's performance during the second half of the financial year, and which could cause actual results to differ from expected and historical results, are:

Macro-economic environment: the macro-economic environment continues to be challenging and, as highlighted above, 2012 trading conditions have remained tough. Advertising sales may be positively or negatively impacted by the Olympics and other summer sporting events; digital sales growth could slow; or print sales declines could accelerate beyond those forecast.

Innovation: Future continues to innovate, particularly with its FutureFolio software for producing interactive tablet editions. Future has applied for patent protection in this crowded technology market but other similar technology may be developed by third parties.

IP: digital piracy is a growing problem as tablet sales grow. However, Future is at the forefront of anti-piracy initiatives and we have achieved good success in take-down of unauthorised copies of our magazines.

Financial: forecasting in these volatile economic conditions remains tough.

Property: our former New York office and part of our San Francisco property become available for sub-letting in the second half and we are actively marketing these properties.

Peter Allen, Chairman

Mark Wood, Chief Executive

Graham Harding, Group Finance Director

Manjit Wolstenholme, senior independent non-executive Director

Seb Bishop, independent non-executive Director

Mark Whiteling, independent non-executive Director                                                       

22 May 2012

Consolidated income statement 

for the six months ended 31 March 2012

		6 months to 31 March 2012	6 months to 31 March 2011	12 months to 30 September 2011
	Note	£m	£m	£m
Revenue	1,2	61.1	68.8	141.7
Operating profit before exceptional items	1	1.2	1.8	5.4
Exceptional items	4	(1.0)	-	(21.9)
Operating profit/(loss)	3	0.2	1.8	(16.5)
Net finance costs	6	(0.9)	(0.6)	(1.5)
(Loss)/profit before tax	1	(0.7)	1.2	(18.0)
Tax on (loss)/profit	7	(0.4)	(0.4)	(1.3)
(Loss)/profit for the period attributable to owners of the parent		(1.1)	0.8	(19.3)

Earnings per 1p Ordinary share

		6 months to 31 March 2012	6 months to 31 March 2011	12 months to 30 September 2011
	Note	pence	pence	pence
Basic (loss)/earnings per share	9	(0.3)	0.2	(5.9)
Diluted (loss)/earnings per share	9	(0.3)	0.2	(5.9)

Consolidated statement of comprehensive income

for the six months ended 31 March 2012

		6 months to 31 March 2012	6 months to 31 March 2011	12 months to 30 September 2011
		£m	£m	£m
(Loss)/profit for the period		(1.1)	0.8	(19.3)
Currency translation differences		-	(0.2)	-
Cash flow hedges		0.1	0.1	-
Other comprehensive income/(loss) for the period		0.1	(0.1)	-
Total comprehensive (loss)/income for the period attributable to owners of the parent		(1.0)	0.7	(19.3)

Consolidated statement of changes in equity

for the six months ended 31 March 2012

		Issued share capital	Share premium account	Merger reserve	Treasury reserve	Cash flow hedge reserve	Accumulated losses	Total equity
	Note	£m	£m	£m	£m	£m	£m	£m
Balance at 1 October 2011		3.3	24.5	109.0	(0.3)	(0.1)	(73.1)	63.3
Loss for the period		-	-	-	-	-	(1.1)	(1.1)
Currency translation differences		-	-	-	-	-	-	-
Cash flow hedges		-	-	-	-	0.1	-	0.1
Other comprehensive income for the period		-	-	-	-	0.1	-	0.1
Total  comprehensive income/(loss) for the period		-	-	-	-	0.1	(1.1)	(1.0)
Interim dividend relating to 2011	8	-	-	-	-	-	(1.6)	(1.6)
Share schemes - Value of employees' services	5	-	-	-	-	-	0.1	0.1
New share capital subscribed		-	0.1	-	-	-	-	0.1
Balance at 31 March 2012		3.3	24.6	109.0	(0.3)	-	(75.7)	60.9
Balance at 1 October 2010		3.3	24.5	109.0	-	(0.1)	(50.5)	86.2
Profit for the period		-	-	-	-	-	0.8	0.8
Currency translation differences		-	-	-	-	-	(0.2)	(0.2)
Cash flow hedges		-	-	-	-	0.1	-	0.1
Other comprehensive income/(loss) for the period		-	-	-	-	0.1	(0.2)	(0.1)
Total comprehensive income for the period		-	-	-	-	0.1	0.6	0.7
Interim dividend relating to 2010	8	-	-	-	-	-	(1.6)	(1.6)
Final dividend relating to 2010	8	-	-	-	-	-	(2.0)	(2.0)
Share schemes - Value of employees' services	5	-	-	-	-	-	0.2	0.2
- Deferred tax on share schemes		-	-	-	-	-	(0.1)	(0.1)
Treasury shares acquired		-	-	-	(0.2)	-	-	(0.2)
Balance at 31 March 2011		3.3	24.5	109.0	(0.2)	-	(53.4)	83.2
Balance at 1 October 2010		3.3	24.5	109.0	-	(0.1)	(50.5)	86.2
Loss for the year		-	-	-	-	-	(19.3)	(19.3)
Other comprehensive income for the year		-	-	-	-	-	-	-
Total comprehensive loss for the year		-	-	-	-	-	(19.3)	(19.3)
Interim dividend relating to 2010	8	-	-	-	-	-	(1.6)	(1.6)
Final dividend relating to 2010	8	-	-	-	-	-	(2.0)	(2.0)
Share schemes - Value of employees' services	5	-	-	-	-	-	0.4	0.4
- Deferred tax on share schemes		-	-	-	-	-	(0.1)	(0.1)
Treasury shares acquired		-	-	-	(0.3)	-	-	(0.3)
Balance at 30 September 2011		3.3	24.5	109.0	(0.3)	(0.1)	(73.1)	63.3

Consolidated balance sheet

as at 31 March 2012

		31 March 2012	31 March 2011	30 September 2011
	Note	£m	£m	£m
Assets
Non-current assets
Property, plant and equipment	10	3.2	3.0	3.4
Intangible assets - goodwill		92.6	110.6	94.1
Intangible assets - other		2.6	1.7	2.6
Deferred tax		1.0	1.4	1.0
Total non-current assets		99.4	116.7	101.1
Current assets
Inventories		3.0	4.6	3.5
Trade and other receivables		19.8	20.8	22.7
Cash and cash equivalents		9.0	12.1	12.5
Total current assets		31.8	37.5	38.7
Total assets		131.2	154.2	139.8
Equity and liabilities
Equity
Issued share capital	11	3.3	3.3	3.3
Share premium account		24.6	24.5	24.5
Merger reserve		109.0	109.0	109.0
Treasury reserve		(0.3)	(0.2)	(0.3)
Cash flow hedge reserve		-	-	(0.1)
Accumulated losses		(75.7)	(53.4)	(73.1)
Total equity		60.9	83.2	63.3
Non-current liabilities
Financial liabilities - interest-bearing loans and borrowings		3.3	6.3	5.1
Financial liabilities - derivatives		0.3	0.3	0.4
Deferred tax		1.8	2.0	1.8
Provisions		1.6	0.4	2.1
Other non-current liabilities		1.9	2.5	1.9
Total non-current liabilities		8.9	11.5	11.3
Current liabilities
Financial liabilities - interest-bearing loans and borrowings		21.8	14.7	19.2
Financial liabilities - derivatives		0.3	0.3	0.3
Trade and other payables		32.8	40.1	39.6
Corporation tax payable		6.5	4.4	6.1
Total current liabilities		61.4	59.5	65.2
Total liabilities		70.3	71.0	76.5
Total equity and liabilities		131.2	154.2	139.8

Consolidated cash flow statement

for the six months ended 31 March 2012

		6 months to 31 March 2012	6 months to 31 March 2011	12 months to 30 September 2011
		£m	£m	£m
Cash flows from operating activities
Cash (used in)/generated from operations		(1.5)	2.1	3.8
Tax received		-	0.3	1.4
Interest paid		(0.7)	(0.6)	(1.2)
Tax paid		(0.2)	(0.1)	(0.1)
Net cash (used in)/ generated from operating activities		(2.4)	1.7	3.9
Cash flows from investing activities
Purchase of property, plant and equipment		(0.5)	(0.3)	(1.2)
Purchase of computer software and website development		(1.0)	(1.1)	(2.4)
Disposal of magazine titles and trademarks		1.8	-	-
Costs of business disposals		(0.6)	-	-
Net cash used in investing activities		(0.3)	(1.4)	(3.6)
Cash flows from financing activities
Proceeds from issue of Ordinary share capital		0.1	-	-
Purchase of own shares by Employee Benefit Trust		-	(0.2)	(0.3)
Draw down of bank loans		16.9	3.9	10.0
Repayment of bank loans		(15.7)	(3.6)	(7.2)
Fees for restatement of bank facility		(0.4)	-	-
Repayment of finance leases		(0.1)	-	-
Equity dividends paid		(1.6)	(1.6)	(3.6)
Net cash used in financing activities		(0.8)	(1.5)	(1.1)
Net decrease in cash and cash equivalents		(3.5)	(1.2)	(0.8)
Cash and cash equivalents at beginning of period		12.5	13.3	13.3
Exchange adjustments		-	-	-
Cash and cash equivalents at end of period		9.0	12.1	12.5

Notes to the consolidated cash flow statement

for the six months ended 31 March 2012

A. Cash (used in)/generated from operations

The reconciliation of (loss)/profit for the period to cash flows (used in)/generated from operations is set out below:

		6 months to 31 March 2012	6 months to  31 March 2011	12 months to 30 September 2011
		£m	£m	£m
(Loss)/profit for the period		(1.1)	0.8	(19.3)
Adjustments for:
Depreciation charge		0.5	0.6	1.2
Amortisation of intangible assets		0.8	0.6	1.2
Impairment of intangible assets		-	-	17.1
Profit on disposal of magazine titles and trademarks		(0.4)	-	-
Share schemes - Value of employees' services		0.1	0.2	0.4
Finance costs		0.9	0.6	1.5
Tax charge		0.4	0.4	1.3
Profit before changes in working capital and provisions		1.2	3.2	3.4
Movement in provisions		(0.5)	(0.4)	1.3
Decrease/(increase) in inventories		0.5	(1.2)	(0.1)
Decrease in trade and other receivables		2.8	2.9	1.2
Decrease in trade and other payables		(5.5)	(2.4)	(2.0)
Cash (used in)/generated from operations		(1.5)	2.1	3.8

B. Analysis of net debt

	1 October 2011	Cash flows	Non-cash changes	Exchange movements	31 March 2012
	£m	£m	£m	£m	£m
Cash and cash equivalents	12.5	(3.5)	-	-	9.0
Debt due within one year	(19.2)	(0.9)	(1.8)	0.1	(21.8)
Debt due after more than one year	(5.1)	0.2	1.6	-	(3.3)
Net debt	(11.8)	(4.2)	(0.2)	0.1	(16.1)

 C. Reconciliation of movement in net debt

	6 months to 31 March 2012 £m	6 months to 31 March 2011 £m	12 months to 30 September 2011 £m
Net debt at start of period	(11.8)	(7.4)	(7.4)
Decrease in cash and cash equivalents	(3.5)	(1.2)	(0.8)
Movement in borrowings	(0.7)	(0.3)	(2.8)
Finance leases entered into	-	-	(0.3)
Non-cash changes	(0.2)	(0.1)	(0.3)
Exchange movements	0.1	0.1	(0.2)
Net debt at end of period	(16.1)	(8.9)	(11.8)

Basis of preparation

This unaudited condensed interim financial information for the six months ended 31 March 2012 has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' as adopted by the European Union, and in accordance with the Disclosure and Transparency Rules of the Financial Services Authority.

The interim financial information contained in the Interim Report should be read in conjunction with the Annual Report for the year ended 30 September 2011.

The Interim Report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006 and has not been audited.  A copy of the statutory financial statements for the year ended 30 September 2011 has been filed with the Registrar of Companies.  The auditors' report on those accounts was unqualified; it did not contain an emphasis of matter and did not contain any statements under section 498(2) or section 498(3) of the Companies Act 2006.  The auditors have carried out a review of the Interim Report and their review report is set out on page 26.

Having considered the Group's funding position and latest forecasts, the Directors believe that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis in preparing the condensed interim financial information.

The accounting policies adopted, methods of computation and presentation are consistent with those set out in the Group's statutory accounts for the financial year ended 30 September 2011 with the following exceptions:

·       The Directors have decided to focus on EBITDAE and EBITE rather than EBITAE from a profit perspective in recognition of the nature of amortisation and depreciation under IFRS.

·       The estimated useful life of website development costs has been increased to two years, rather than one year, which had been used in prior years. This change reflects a more realistic period over which benefits are expected to accrue and is more consistent with market practice.

If an estimated useful life of one year had been used in the current period, this would have increased the total amortisation charge from £0.8m to £1.2m in the first half-year.

There has been no material impact from the adoption of the following new standards, amendments to standards or interpretations which are relevant to the Group:

-     Annual improvements 2010

-     IAS 24 (revised), 'Related party disclosures'

Standards, amendments and interpretations to existing standards effective in 2012 but not relevant to the Group:

-     Amendments to IFRS 1, 'First time adoption'

-     Amendment to IFRS 7, 'Financial Instruments: Disclosures'

-     Amendment to IFRIC 14

Notes to the financial information

for the six months ended 31 March 2012

1.         Segmental reporting

The Group is organised and arranged primarily by geographical segment. The Board of Future plc considers the performance of the business from a geographical perspective, namely the UK and the US. The Australian business is considered to be part of the UK segment and is not separately reported.

Segment revenue

	6 months to 31 March 2012 £m	6 months to 31 March 2011 £m	12 months to 30 September 2011 £m
UK	47.9	49.4	103.4
US	13.5	19.7	38.8
Revenue between segments	(0.3)	(0.3)	(0.5)
Total segment revenue	61.1	68.8	141.7

Revenue from external parties is measured in a manner consistent with that in the income statement. Transactions between segments are carried out at arm's length.

Segment EBITE

	6 months to 31 March 2012 £m	6 months to 31 March 2011 £m	12 months to 30 September 2011 £m
UK	3.7	3.7	9.7
US	(2.5)	(1.9)	(4.3)
Total segment EBITE	1.2	1.8	5.4

EBITE is used by the Board to assess the performance of each segment.

A reconciliation of total segment EBITE to (loss)/profit before tax is provided as follows:

	6 months to 31 March 2012 £m	6 months to 31 March 2011 £m	12 months to 30 September 2011 £m
Total segment EBITE	1.2	1.8	5.4
Exceptional items	(1.0)	-	(21.9)
Net finance costs	(0.9)	(0.6)	(1.5)
(Loss)/profit before tax	(0.7)	1.2	(18.0)

Notes to the financial information

for the six months ended 31 March 2012

2.         Revenue

An additional analysis of the Group's revenue is shown below:

	6 months to 31 March 2012 £m	6 months to 31 March 2011 £m	12 months to 30 September 2011 £m
Circulation	35.8	40.0	80.7
Advertising	18.6	20.4	43.4
Customer publishing	4.5	6.1	12.1
Licensing, events & other	2.2	2.3	5.5
Total	61.1	68.8	141.7

3.         Operating profit/(loss)

	6 months to 31 March 2012 £m	6 months to 31 March 2011 Restated* £m	12 months to 30 September 2011 £m
Revenue	61.1	68.8	141.7
Cost of sales	(43.5)	(48.4)	(99.9)
Gross profit	17.6	20.4	41.8
Distribution expenses	(5.0)	(5.6)	(11.2)
Administration expenses	(10.6)	(12.4)	(24.0)
Exceptional items	(1.0)	-	(21.9)
Amortisation of intangible assets	(0.8)	(0.6)	(1.2)
Operating profit/(loss)	0.2	1.8	(16.5)

* During the second half of the previous year, direct IT costs relating to specific websites were reclassified from administration expenses to cost of sales. The administration expenses and cost of sales for the 6 months to 31 March 2011 in the table above are shown restated on a comparable basis, increasing cost of sales by £0.3m and reducing administration expenses by £0.3m. There is no change to the operating profit for the six months to 31 March 2011.

4.         Exceptional items

	6 months to 31 March 2012 £m	6 months to 31 March 2011 £m	12 months to 30 September 2011 £m
Property costs	-	-	1.5
Restructuring and redundancy costs	1.4	-	2.4
Other costs	-	-	0.9
Profit on disposal of magazine titles and trademarks	(0.4)	-	-
Impairment of intangible assets	-	-	17.1
Total	1.0	-	21.9

The property costs relate to a vacant property provision made against surplus office space.

The restructuring and redundancy costs relate to staff termination payments following restructuring of the UK and US businesses in line with the Group's strategy.

Other costs relate to ongoing commercial dispute resolution.

The profit on disposal relates to the sale of the New York Music titles on 12 January 2012 and magazine titles and trademarks sold in the UK.

At September 2011 an impairment charge of £17.1m was taken against the carrying value of the US business which reflected the challenging economic and trading environment. 

Notes to the financial information

for the six months ended 31 March 2012

5.         Employees

	6 months to 31 March 2012 £m	6 months to 31 March 2011 £m	12 months to 30 September 2011 £m
Wages and salaries	22.0	22.3	46.8
Social security costs	2.2	2.2	5.9
Other pension costs	0.5	0.5	1.1
Share schemes - Value of employees' services	0.1	0.2	0.4
Total	24.8	25.2	54.2

IFRS 2 'Share-based Payment' requires an expense for equity instruments granted to be recognised over the appropriate vesting period, measured at their fair value at the date of grant.

The Group has used the Black-Scholes model to value instruments with non market-based performance criteria such as earnings per share.  For instruments with market-based performance criteria, notably total shareholder return, the Group has used a Monte Carlo model to determine the fair value.

The expense for the six months ended 31 March 2012 of £0.1m (2011: £0.2m) has been credited to reserves.

Key management personnel compensation

	6 months to 31 March 2012 £m	6 months to 31 March 2011 £m	12 months to 30 September 2011 £m
Salaries and other short-term employee benefits	0.4	0.4	0.9
Post-employment benefits	-	0.1	0.1
Compensation for loss of office	0.9	-	-
Share schemes - Value of employees' services	-	0.1	0.1
Total	1.3	0.6	1.1

Key management personnel are deemed to be the members of the Board of Future plc. It is this Board which has responsibility for planning, directing and controlling the activities of the Group.

6.         Net finance costs

	6 months to 31 March 2012 £m	6 months to 31 March 2011 £m	12 months to 30 September 2011 £m
Interest payable on interest-bearing loans and borrowings	(0.8)	(0.6)	(1.1)
Fair value gain on interest rate derivatives	0.1	0.2	-
Amortisation of bank loan arrangement fees	(0.2)	(0.2)	(0.3)
Other finance costs	-	-	(0.1)
Net finance costs	(0.9)	(0.6)	(1.5)

In line with the Board's policy of hedging interest rate risk, the Group has entered into an interest rate swap in previous years. The valuation of this interest rate swap at 31 March 2012 resulted in a gain for the six months ended 31 March 2012 of £0.1m (2011: £0.2m).

Notes to the financial information

for the six months ended 31 March 2012

7.         Tax on (loss)/profit

The tax charge for the six months ended 31 March 2012 is based on the effective rate, estimated on a full year basis by territory, being applied to the taxable profits or losses of each territory for the six months ended 31 March 2012.

Consistent with prior periods the Group corporation tax provision reflects management's estimation of the amount of tax payable for fiscal years with open tax computations where liabilities remain to be agreed with Her Majesty's Revenue and Customs.

8.         Dividends

Equity dividends	6 months to 31 March 2012	6 months to 31 March 2011	12 months to 30 September 2011
Number of shares in issue at end of period (million)	330.8	328.8	328.8
Dividends paid and payable in period (pence per share)	0.5	1.1	1.1
Dividends paid and payable in period (£m)	1.6	3.6	3.6

Interim dividends are recognised in the period in which they are paid and final dividends are recognised in the period in which they are approved.

The dividends totalling £1.6m paid and payable during the period ended 31 March 2012 relate to the interim dividend paid for the six-month period to 31 March 2011 of 0.5 pence per share (£1.6m).

The dividends totalling £3.6m paid and payable during the period ended 31 March 2011 and the year ended 30 September 2011 relate to the interim dividend paid for the six-month period to 31 March 2010 of 0.5 pence per share (£1.6m) and the final dividend declared for the year ended 30 September 2010 of 0.6 pence per share (£2.0m), which was approved on 9 February 2011 and paid on 1 April 2011.

9 Earnings per share

Basic earnings per share are calculated using the weighted average number of Ordinary shares in issue during the period.  Diluted earnings per share have been calculated by taking into account the dilutive effect of shares that would be issued on conversion into Ordinary shares of awards held under employee share schemes.

The adjusted earnings per share removes the effect of exceptional items and any related tax effects from the calculation as follows:

Adjustments to (loss)/profit after tax

	6 months to 31 March 2012 £m	6 months to 31 March 2011 £m	12 months to 30 September 2011 £m
(Loss)/profit after tax	(1.1)	0.8	(19.3)
Add: Exceptional items	1.0	-	21.9
Tax effect of the above adjustment	(0.2)	-	(1.4)
Adjusted (loss)/profit after tax	(0.3)	0.8	1.2

Notes to the financial information

for the six months ended 31 March 2012

9 Earnings per share (continued)

	6 months to 31 March 2012	6 months to 31 March 2011	12 months to 30 September 2011
Weighted average number of shares in issue during the period:
- Basic	327,859,514	327,649,671	327,526,863
- Dilutive effect of share awards	3,692,623	7,810,104	6,070,662
- Diluted	331,552,137	335,459,775	333,597,525
Basic (loss)/earnings per share (in pence)	(0.3)	0.2	(5.9)
Adjusted basic (loss)/earnings per share (in pence)	(0.1)	0.2	0.4
Diluted (loss)/earnings per share (in pence)	(0.3)	0.2	(5.9)
Adjusted diluted (loss)/earnings per share (in pence)	(0.1)	0.2	0.4

The share options do not have a dilutive effect where there is a loss.

The adjustments to (loss)/profit have the following effect:

	6 months to 31 March 2012 pence	6 months to 31 March 2011 pence	12 months to 30 September 2011 pence
Basic  (loss)/earnings per share	(0.3)	0.2	(5.9)
Exceptional items	0.3	-	6.7
Tax effect of the above adjustments	(0.1)	-	(0.4)
Adjusted basic (loss)/earnings per share	(0.1)	0.2	0.4
Diluted (loss)/earnings per share	(0.3)	0.2	(5.9)
Exceptional items	0.3	-	6.7
Tax effect of the above adjustments	(0.1)	-	(0.4)
Adjusted diluted (loss)/earnings per share	(0.1)	0.2	0.4

10. Property, plant and equipment

During the six months ended 31 March 2012, property, plant and equipment additions totalled £0.4m (31 March 2011: £0.4m). The £0.4m is attributable to: land and buildings £0.1m (2011: £0.1m); plant and machinery £0.2m (2011: £0.2m); equipment, fixtures and fittings of £0.1m (2011: £0.1m).

There were no commitments for capital expenditure contracted for but not provided at 31 March 2012 (31 March 2011: £nil).

The depreciation charge for the period totalled £0.5m (31 March 2011: £0.6m). The £0.5m is attributable to: land and buildings £0.1m (2011: £0.1m); plant and machinery £0.3m (2011: £0.4m); equipment, fixtures and fittings £0.1m (2011: £0.1m).

Notes to the financial information

for the six months ended 31 March 2012

11. Issued share capital

During the period 1,967,492 Ordinary shares (31 March 2011: 806,369) with a nominal value of £19,675 (2011: £8,064) were issued by the Company for a total cash commitment of £77,376 (2011: £6,375), pursuant to share scheme exercises.

As at 31 March 2012 there were 330,772,252 Ordinary shares in issue (31 March 2011: 328,786,172).

12. Contingent assets and contingent liabilities

At 31 March 2012 there were no material contingent assets or contingent liabilities.

Statement of Directors' responsibilities

The Directors confirm that to the best of their knowledge the condensed interim financial information contained in the Interim Report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and that the Interim Management Report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely: an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; a description of the principal risks and uncertainties for the remaining six months of the financial year; and material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.

The Directors of Future plc are listed in the Future plc Annual Report for the year to 30 September 2011. The following changes were made in the period: Stevie Spring and John Bowman resigned on 27 October 2011 and Mark Wood and Graham Harding were appointed on 27 October 2011.

On behalf of the Board

Graham Harding

Group Finance Director

22 May 2012

Directors

Peter Allen

Chairman

Mark Wood

Chief Executive

Graham Harding

Group Finance Director

Manjit Wolstenholme

Senior independent non-executive Director

Seb Bishop

Independent non-executive Director

Mark Whiteling

Independent non-executive Director

Company Secretary and General Counsel

Mark Millar

The maintenance and integrity of the Future plc website is the responsibility of the Directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Independent review report to Future plc

Introduction

We have been engaged by the Company to review the condensed interim financial information in the half-yearly financial report for the six months ended 31 March 2012, which comprises the Consolidated income statement, Consolidated statement of comprehensive income, Consolidated statement of changes in equity, Consolidated balance sheet, Consolidated cash flow statement, Notes to the consolidated cash flow statement, Basis of preparation and related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in the Basis of preparation, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed interim financial information included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of the Disclosure and Transparency Rules of the Financial Services Authority and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 March 2012 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

PricewaterhouseCoopers LLP
Chartered Accountants
22 May 2012
London

Normalised results

for the six months ended 31 March 2012

		6 months to 31 March 2012	6 months to 31 March 2011	12 months to 30 September 2011
	Note	£m	£m	£m
Revenue	1,2	59.1	61.5	127.6
Operating profit before exceptional items		1.8	1.9	5.2

Adjusted earnings per 1p Ordinary share

	Note	6 months to 31 March 2012 pence	6 months to 31 March 2011 pence	12 months to 30 September 2011 pence
Adjusted basic earnings per share	2	0.1	0.3	0.4

Normalised results are presented to reflect better the current size and structure of the business, which is consistent with how the business is managed and measured on a day-to-day basis.  The normalised results exclude revenues and costs of activities closed or divested between 1 October 2010 and 31 March 2012, but include any new activities launched in that period.

Adjusted earnings per share are based on normalised results, but exclude exceptional items and related tax effects.

Notes to the normalised results

for the six months ended 31 March 2012

1.        Normalised segmental reporting

a)          Revenue by segment

	6 months to 31 March 2012 £m	6 months to 31 March 2011 £m	12 months to 30 September 2011 £m
UK	47.8	47.3	99.7
US	11.6	14.5	28.4
Revenue between segments	(0.3)	(0.3)	(0.5)
Total normalised revenue	59.1	61.5	127.6

b)         EBITE by segment

	6 months to 31 March 2012 £m	6 months to 31 March 2011 £m	12 months to 30 September 2011 £m
UK	3.7	3.3	8.9
US	(1.9)	(1.4)	(3.7)
Total normalised EBITE	1.8	1.9	5.2

Additional analysis of the Group's normalised revenue by type is set out below:

i)          Revenue by type

 

	6 months to 31 March 2012 £m	6 months to 31 March 2011 £m	12 months to 30 September 2011 £m
Circulation	35.1	37.2	75.2
Advertising	17.4	17.8	37.8
Customer publishing	4.4	4.4	9.6
Licensing, events and other	2.2	2.1	5.0
Total normalised revenue	59.1	61.5	127.6

Notes to the normalised results

for the six months ended 31 March 2012

2.        Reconciliation of statutory results to normalised results

a)         Reconciliation of statutory revenue to normalised revenue

	6 months to 31 March 2012	6 months to 31 March 2011	12 months to 30 September 2011
	£m	£m	£m
Statutory revenue	61.1	68.8	141.7
Adjustment: UK closed and divested activities	(0.1)	(2.1)	(3.7)
Adjustment: US closed and divested activities	(1.9)	(5.2)	(10.4)
Normalised revenue	59.1	61.5	127.6

b)         Reconciliation of statutory operating profit before exceptional items (EBITE) to normalised EBITE

	6 months to 31 March 2012	6 months to 31 March 2011	12 months to 30 September 2011
	£m	£m	£m
EBITE	1.2	1.8	5.4
Adjustment: UK closed and divested activities	-	(0.4)	(0.8)
Adjustment: US closed and divested activities	0.6	0.5	0.6
Normalised EBITE	1.8	1.9	5.2

c)         Reconciliation of basic (loss)/earnings per share to adjusted earnings per share

	6 months to 31 March 2012	6 months to 31 March 2011	12 months to 30 September 2011
	pence	pence	pence
Basic (loss)/earnings per share	(0.3)	0.2	(5.9)
UK closed and divested activities	-	(0.1)	(0.2)
US closed and divested activities	0.1	0.2	1.3
Exceptional items	0.4	-	5.6
Tax effect of the above adjustment	(0.1)	-	(0.4)
Adjusted basic earnings per share	0.1	0.3	0.4

 

END

 

 

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