Emap reports fall in pre-tax profit for 2010

Emap reported a significant fall in pre-tax profits in 2010 as government cuts hit its publishing and events business. The publisher reported pre-tax profits of £27 million for the 12 months to 31 December.

The company said that pre-tax profits had been hit by exceptional items totalling £22 million, the most notable being a £17 million loss for accounting purposes on the sale of Professional Beauty magazine and show.

However, operating profit came in at £61 million for the year, a significant improvement on the £26 million reported in the nine-month period to the end of 2009.

Total revenue remained almost flat year on year at £244 million, due to a decline in income being mostly offset by revenue growth in Emap’s Middle East operation, data, and events and exhibitions businesses.

The company said the decline was “wholly attributable” to the impact of government spending cuts on titles in the health and local government sector.

Emap added that the paywalls around its online content has led to 20% year on year growth in new subscription business, although it gave no information on total numbers.

The company had debt of £564 million and cash of around £50 million on 31 December.

“The group operated within its covenant limits at all times during the year under review,” the company said. “The directors continue to forecast that the group will continue to operate within those limits for the forseeable future.”

Emap is jointly-owned by Guardian Media Group and private equity company Apax.