Future publishing is to sell its sports and craft portfolio to Immediate Media for a total consideration of up to £24 million. The move will see Future cut around 170 jobs in the UK and a further 40 in the US.
After reporting a pre-tax loss of £30.6 million in its interim results for the half-year ending 31 March, the publisher says it needs to simplify its business and focus on consumer technology markets.
In total, 17 print titles will be sold, including Procycling, Cycling Plus and Simply Knitting, along with a raft of online platforms.
In a statement issued on Thursday, the company said Future’s board has determined that the group’s strategy is to “focus on core verticals, with an emphasis on consumer technology” and that the “on-going transformation of the group will be best served through the disposal of the portfolio.”
The publishing group’s revenues were down 1% overall to £48.5 million while an ‘impairment charge‘ of £26 million knocked down the value of its print assets.
However, digital and diversified revenues were up 9% to £16.8 million.
Zillah Byng-Maddick, who was recently promoted to CEO of Future, said: “The disposal of the portfolio of sport and craft titles to Immediate Media for up to £24m is a key step in the new strategy to transform Future into a more simplified business, focussing on core verticals with an emphasis on the consumer technology market.
“The disposal titles are well managed and successful parts of the business and they will thrive under their new ownership.”
Peter Allen, Future’s Chairman, added: “Whilst the Board is disappointed with the results for the first half of the year, we have already taken significant actions to address the fundamental issues.
“Since appointing Zillah Byng-Maddick as CEO on 1st April we have completed a thorough review of the organisation.
“In the UK we are currently consulting with staff on a transformative restructuring programme which the board believes will simplify our business, allowing it to thrive in an increasingly digital and mobile age, with a renewed focus on revenue and margin growth in core sectors.”
To get all the latest MediaTel Newsline updates follow us on Twitter.
