Emap has announced that its annual performance is likely to be toward the end of market expectations.
The company said that trading conditions in consumer media markets will remain challenging in 2007-08, although the prospects for its business-to-business operations are robust.
Emap said that a strategic review of its businesses, announced in November, was expected to generate cost savings of more than £20 million a year over the next two financial years.
The programme will incur one-off costs of up to £30 million, plus capital investments of £10 million in relation to new systems and buildings.
Tom Moloney, Group chief executive, said: “The management actions we are taking are a positive response to prevailing market conditions and will allow us to continue our strategy of developing strong media brands across platforms. The fact we have identified substantial savings, given that we already operate on industry leading margins, signifies the progressive approach we are taking to operational efficiency.
“Recent acquisitions are improving our technology capability and we are migrating more resource to faster growth opportunities, particularly digital.
“Brands, content and deep relationships with the communities we serve are the enduring strengths of Emap and have allowed us to maintain market leading positions. These strengths underpin our strategy and when combined with improved technology skills will ensure we deliver sustainable growth.”
Emap said it will next update the market with a trading statement on March 27.
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