Highbury House Communications has revealed that revenues for the first half of 2005 are down by 28% year on year to £39.6 million, resulting in an operating loss of £2 million, according to its trading statement published today.
Total operating losses were shown to be £11 million, compared to £22.9 million last year, with revenues for continuing operations down by 8.2% to £14.5 million, resulting in an operating loss of £0.8 million.
Highbury said that trading had been impacted by weak consumer markets, while the disposal of a number of businesses by the group earlier in the year helped the company to reduce its debts. The sale of the Highbury Business division and the Highbury Local Business together with certain other divisional assets made £13.7 million.
As a result of the disposals, net debt during the first half of the year was reduced from £62.6 million to £27.3 million. As at 27 September the company’s bank borrowings were £29.5 million.
In its trading statement, Highbury also announced the appointment of Peter Anthony Clark as a non-executive director, with immediate effect.
Clark is currently chairman of Media Ventures, a private equity owned business that he founded in 1990, with his experience in growing small companies of significant benefit to Highbury as the Board seeks to rebuild shareholder value.
Earlier this month, Kelvin MacKenzie was appointed as executive chairman of Highbury House after purchasing 15,500,500 ordinary shares in the firm to bring his stake to 19.82% (see Highbury Appoints MacKenzie As Chairman).
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