UK magazine and website publishing group, Future Network, has cleared its debt burden, chairman Roger Parry told the company’s AGM this morning. The news follows a tough financial period for Future which was forced to close publications and reduce headcount in order to make cost savings (see Games Mags Recovery Could Drag Future Out Of ‘Most Difficult’ Period).
As of 30 April, the group had modest cash balances amounting to £2.0 million. This compares favourably with the high levels of net debt a year ago, which peaked at some £78 million at 30 June 2001, said Parry. Net debt was subsequently reduced to below £8 million by 31 December and the group is now debt-free.
Current trading For the first four months of 2002, circulation revenue, which last year accounted for approximately two-thirds of Group revenues, grew by 23%, while advertising revenues were 4% lower than for the same period last year. Total Group revenue increased by 15% from continuing activities.
Future’s success for 2002 overall will be determined primarily by its ability to capitalise on the continued growth of the games market, said the statement. The video games market continues to show encouraging growth.
Overall, the Group’s business continues to perform in line with the Board’s expectations for 2002, although it is too early to forecast full-year performance, said Parry.
Shares in Future Network were up 1p at 66p by late morning today.
