B2B Slump Catches Up With Highbury House
Publishing company, Highbury House Communications, says that it has experienced a slowdown in advertising revenues in the final quarter, after earlier indications were that revenues were running at ‘acceptable’ levels.
Both advertising and newsstand revenues have been softer following the events of 11 September, according the company’s trading statement released today. As a result, profit before tax and goodwill amortisation for 2001 is unlikely to meet current market forecasts. Nevertheless, Highbury is now expecting profits to be ahead of last year and not less than £8.5 million.
Concurring with the experience of other media groups, Highbury says that the advertising slowdown has occurred principally in the business to business (B2B) sectors, whilst consumer advertising remains fairly resilient with forward orders for 2002 being in line with budget.
Restructuring and reorganisation should result in annual cost savings of £1.5 million, largely from a loss of 70 jobs.
Shares in Highbury House were down 2p at 27žp by 1.00pm today.
