Highbury House Will Close Titles That Do Not Meet Targets

The results include the performance of all acquisitions made last year, including the Reed Business Information titles (see Highbury Completes RBI Titles Purchase), which are not fully integrated into HHC’s business. The results also include a six month contribution from the Columbus Group, acquired in August last year. As a result, turnover grew by 90% to £50.7 million.

Advertising revenues increased by 12.0% across the period, but this was offset by a reduction in circulation income of 9.0%.

Executive chairman Ian Fletcher said: “The Group was experiencing some deterioration in newsstand sales and this has resulted in lower circulation income and a disappointing performance by the consumer division, particularly in the home entertainment, women’s interests and speciality sectors.”

In order to respond to the current difficult market conditions HHC has altered its short-term product development strategy and taken the remedial action of closing a number of newer, loss-making titles. “The losses attributable to these titles will not recur in the second half of the year and the consumer division’s profitability is expected to benefit accordingly,” added Fletcher.

The business to business division made good progress with revenue and profits significantly higher than in the first half of last year, the company said.

HHC says it is adopting a cautious approach to the rest of the year and that newer titles which do not meet its performance criteria will be closed, reduced in frequency or published as supplements.

Shares in Highbury House were up žp at 28½p by late morning today.