Publishing giant Future Plc has reported a dip in profits for the financial year but saw its revenue return to growth over the period. The Bath-based company, which owns brands including Marie Claire, Country Life and Go Compare, said it had made “good strategic progress” over the year ended September 30.
Adjusted operating profit at the firm was £222.2m – down from £256.4m the year before. Revenues were broadly flat at £788.2m, with +1% organic growth.
UK revenue grew by 6% on an organic basis, with “very strong growth” in Go.Compare, the company said on Thursday. Future reported business-to-business growth of +2% although business-to-consumer saw a 6% decline, impacted by market conditions and the weight of magazines. Meanwhile, the company’s US revenue fell by 6% on an organic basis.
Future said profitability remained in line with expectations.
Jon Steinberg, who is stepping down as Future’s chief executive next year, said: “We launched our Growth Acceleration Strategy one year ago and have made good strategic progress. We have invested in sales and editorial roles, successfully diversified and grown revenue per user, and we have further optimised our portfolio.
“Importantly, the group has returned to organic revenue growth during the year, underpinned by a strong H2 performance. The execution of our strategy combined with our strong financial characteristics, including a flexible cost base and highly cash generative profile, creates further optionality and positions the business well.”
The announcement comes a year after Future launched its Growth Acceleration Strategy in a bid to capitalise on opportunities in “attractive and growing markets”. The business said two-year investment programme of £25m-£30m had helped it return to growth.
“Looking ahead, whilst we remain mindful of the macro environment and the ongoing evolution of the media landscape, we are confident that the ongoing execution of our Growth Acceleration Strategy will drive long-term accelerating organic revenue growth,” Mr Steinberg added.