The report says:
Outlook for the year ending 30 September 2010
The Board expects that the Group's results for the full year to 30 September 2010 will be in line with market expectations.
Trading summary for the nine months ended 30 June 2010
Since reporting its interim results on 20 May 2010, trading has continued in line with the Board's expectations.
• Revenue trends continue to encourage: Q3 revenue up 2%
• Group revenue down 3% year to date against -5% in H1
• All costs under control, mitigating revenue reduction
• Focus on debt reduction continues with net debt down 32% year-on-year
Stevie Spring (pictured), Future plc Chief Executive said:
"We've seen a continuation in the trading patterns that we reported at half-year, with revenues stabilising year-on-year, and some more positive trends in advertising. We continue to maintain flexibility in managing our portfolios. That flexibility will serve us well as we navigate through the continued uncertainty of the macro-economic environment and overall we remain confident that we are as well-positioned as we can be for the future."
Business update
In the UK (which comprises 70% of Group revenue), revenue for the nine months was down 1%. Advertising has continued to improve strongly quarter-by-quarter, while circulation revenue remains soft, as expected. Circulation weakness is driven primarily by Games (19% of UK revenue) which continues to experience a tough market and difficult comparatives. Elsewhere in the portfolio, notably music, sports, technology and crafts, we've seen stronger performances.
In the US (which comprises 30% of Group revenue), we've continued to make good progress towards returning this business to profitability. Revenue for the nine months was down 7%, as expected, partly reflecting our stated strategy of publishing many fewer specials. As at half-year, both advertising and circulation remain challenging, but customer publishing revenue continues to show strong growth.
Financial position
The Group is strongly cash generative, with a healthy balance sheet. Net debt at 30 June 2010 was £16.1m (1.28 times bank EBITDA), down 32% year-on-year. The Group continues to operate within all bank covenants.
Next trading update
Future will provide a pre-close trading update on 28 September 2010 and will announce its Annual Results (for the year to 30 September 2010) on 24 November 2010.
