Future Publishing cuts more than 200 jobs after reporting £30.6m pre-tax loss

Future Publishing is to cut more than 200 jobs after the company reported a £30.6m pre-tax loss for the six months to March.

It is to axe more than 170 jobs in the UK, with 40 roles already gone in the United States, according to its half-year statement.

The publisher also today announced it is to sell its sport and craft titles to Immediate Media, with a £24m deal expected to be completed in the summer.

The £30.6m pre-tax loss comes after the company wrote down the value of its print assets by £26m.

Revenue at the company fell by 11 per cent year on year, but the statement reported “strong growth” in digital and non-advertising revenues.

It said that digital and diversified revenues are up 9 per cent to £16.8m, now representing 35 per cent of the group’s total revenues.

Peter Allen, Future's chairman, said: "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 1 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.

 "Today we also announce the disposal of our Sport and Craft titles to Immediate Media for up to £24m. These divisions are well managed and very successful parts of Future's portfolio and will continue to thrive under their new owners. However their disposal will enable Future to focus on the remaining lead verticals with an emphasis on the growing consumer technology market."

The full half-year report can be read here.

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