UK magazine publisher Highbury House Communications has today issued a trading update of their expected results, outlining a weak performance in the second half of the year that did not live up to expectations published in its interim statement in September. As a result, the Group’s share price dropped by 1.13% to 6.62p.
The Group had a disappointing second half of the year due to softer than anticipated trading in Q3 and a particularly poor Q4, most notably in the Group’s general lifestyle and home interest markets.
The company said: “The UK monthly magazine market in general has experienced difficult copy sales, particularly in November, and in response, management has put in place a more consistent promotional plan to reduce copy sale volatility next year.”
Advertising also failed to live up to previous forecasts for the third and fourth quarters and the Group is in the process of over-hauling all of its sales divisions to try and counterbalance this trend in 2005.
Trading in the US and South Africa broadly lived up to the Groups expectations for Q4 and local free publications have also largely met management predictions, apart from a slight decline in circulation in December.
The company also updated the market on its strategic review, which it started in September and is due to finish at the end of the month.
Highbury said that a review of titles has led to the closure of some magazines, including Women’s Health, and more will be closed or merged in the New Year, with the aim to give the Group a slimmer, more focussed portfolio.
The Group also intends to concentrate on their UK newsstand consumer operations in 2005, while maintaining a growing position in the US and South African consumer magazine markets.
Highbury House has stated its’ priorities for 2005 are to consolidate and stabilise operations and to invest in a more focussed and competitive portfolio of products. The Board believes that the benefits of this strategy will become visible in 2005.
The Company’s pre-close trading statement will be issued by the end of January.
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