Future Confirms Intention To Bid For Highbury
Specialist magazine giant, Future Publishing, has announced that it has entered an offer period which could eventually lead to a take-over bid for rival publisher, Highbury House.
In a pre-close trading statement the magazine publisher also confirmed industry speculation that it will bid for Highbury’s Front and Fast Car publications, sending shares soaring. The move follow’s Highbury’s confirmation last year that a number of the magazines in its portfolio will face closure or consolidation this year as it seeks to cut costs and recoup some of the revenue which evaded it during 2004.
Highbury is valued at £30 million and, since rumours of a take-over first emerged, has enjoyed a 5.4% rise in share price, signalling the highest increase for the Group for two years.
A statement from Highbury House said: “The board has noted the recent movement in the company’s share price and confirms that it has received an approach that may or may not lead to an offer for the company.”
Last week saw Future reveal a 3% increase in total group revenue and a strong performance in its entertainment division, enjoying a 17% rise. Circulation revenue for the Group was up by 7%, while advertising revenue fell by 4%.
Future has worked hard to expand recently. In December the company announced that it had acquired What Laptop magazine from Crimson Publishing, and that Beach Publishing, which publishes Junior, Junior Pregnancy & Baby and Wedding Day would also become part of its portfolio (see Future Expands Portolio With Beach Acquisition).
More recently the company acquired A&S Publishing for £5.95 million, adding the firm’s 11 motoring magazine titles to its portfolio and gaining the rights to eight national motoring events (see Future Fuels Motoring Portfolio With A&S Acquisition).
Future Publishing: 01225 442 244 www.futurenet.com Highbury House Communications: www.hhc.co.uk
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