Future plc says it is no longer in debt, but announces big staff cutbacks and £35M loss
Magazine publisher looks to eliminated more than 400 positions cuts as new CEO looks to the cost side of the ledger to bring the company back to profitability
There won’t be much left to Future plc other than its titles as the UK publisher announced that it would cut more than 400 positions. The publisher of such magazines as Total Film and Mac Life reported a loss of £35 million through September.
In May the company reported a similar loss and said it would cut 170 jobs at its UK operation, and another 40 in the U.S. If there is one thing former CFO, now CEO, Zillah Byng-Maddick knows how to do, it is wield the axe. According to the Guardian, head count would go from 980 to 577.
The company has been selling off properties such as its auto titles to Kelsey Publishing Limited and its cycling magazines to Immediate Media, the cash infusion of around £26 allowing the company to raise its net cash position to £7.5 million from a debt of £6.9 million. Some of the reduction to overhead is due to these property sales.
In July, the company outlined its restructuring plans, while warning investors. “Print support functions of Future’s international print brands have been assumed by the UK content team. Over one third of US staff have left the business, including a number of the management team.”
“We have now largely completed the transformation programme, which was initiated in June 2014, on time and according to plan,” Byng-Maddick said in today’s earnings statement. “Our property portfolio has been rationalised, non-core businesses sold, our balance sheet strengthened and the cost base materially reduced.”
“Looking forward, we continue to see the encouraging trends seen in Q4 when the group as a whole returned to a positive EBITDAE position. We expect these trends to continue into Q1 2015.”