Specialist magazine publisher, Future, has warned investors that the market remains challenging, with recent conditions holding back prospects for the current financial year to September 2006.
Bearing this in mind, the board expects that profit for 2006 will suffer a decline of bewteen £4 and £5 million. This loss steams from a poor performance in the company’s newsstand department, with areas most affected including car and women’s interest magazines.
Future expects the second half of 2006 to perform better than the first half, while from a phasing perspective, the board predicts operating profits in the first half-year to be less than half the level reported for the six months to 31 March 2005.
At the beginning of the year, Future, revealed that trading for the first quarter of the financial year was in line with expectations, with trading for October to December, broadly on track (see Future Reveals Q1 Trading On Track).
However, the company did reiterate its concerns over continued challenging market conditions after revealing a 17% dip on profit year on year at the end of last year (see Future Warns Of Weak Market As Profits Slip).
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