Interim Report 2011           Future plc
ContentsHighlightsChief Executive’s statementInterim statementConsolidated income statementConsolidated statement ofcompre...
HighlightsSummary:»	 Revenue: H1 down 4%, flat excluding closures»	 Profit decline from accelerated investment in growth a...
Our overall position is robust, and we are agnostic as to                                                                 ...
media apps on the App Store and, with over 100,000                 produced (not least the closure as planned of our Pregn...
Interim statement    Statutory results for half-year to 31 March 2011                                  Review of operation...
UK performance in half-year                                                                   US performance in half-year ...
Interim statement (continued)    Digital                                                           Bank covenants    The U...
Risks                                                            (c)  Advertiser behaviourThe principal risks and uncertai...
Interim statement (continued)    Other risks disclosed in the Annual Report 2010                  The Board    (continued)...
Current trading and outlookTrading in the first half was challenging, yet we’ve seen sixmonths of an accelerating pace of ...
Consolidated income statement     for the six months ended 31 March 2011                                                  ...
Consolidated statement of comprehensive incomefor the six months ended 31 March 2011                                      ...
Consolidated statement of changes in equity     for the six months ended 31 March 2011                                    ...
Consolidated balance sheetas at 31 March 2011                                                                             ...
Consolidated cash flow statement     for the six months ended 31 March 2011                                               ...
Notes to the consolidated cash flow statementfor the six months ended 31 March 2011A  Cash generated from operationsThe re...
Basis of preparation     This unaudited condensed interim financial information for the six months ended 31 March     2011...
The following standards, interpretations and amendments to published standards areeffective but not relevant for the Group...
Notes to the financial information     for the six months ended 31 March 2011     1  Segmental reporting     The Group is ...
2  RevenueAn additional analysis of the Group’s revenue is shown below:                                                   ...
Notes to the financial information (continued)     4  Employees                                                           ...
5  Net finance costs                                                                                6 months to      6 mon...
Notes to the financial information (continued)     8  Earnings per share     Basic earnings per share are calculated using...
9  Property, plant and equipmentDuring the six months ended 31 March 2011, property, plant and equipment additions totalle...
Statement of Directors’ responsibilities     The Directors confirm that to the best of their knowledge the condensed inter...
Independent review report to Future plcIntroductionWe have been engaged by the Company to review the condensed interim fin...
Key performance indicators     for the six months ended 31 March 2011                                                     ...
Directors and advisersDirectors                                                   Auditors                                ...
Financial calendar and contacts     for the six months ended 31 March 2011     Financial calendar     Half-year end       ...
Relations with shareholders and Company websiteThe Company’s website, www.futureplc.com, contains up-to-date informationon...
Future plcwww.futureplc.com2 Balcombe StreetLondon NW1 6NWUnited KingdomTel: +44 (0)20 7042 4000Beauford Court30 Monmouth ...
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Future plc interim report 2011

  1. 1. Interim Report 2011 Future plc
  2. 2. ContentsHighlightsChief Executive’s statementInterim statementConsolidated income statementConsolidated statement ofcomprehensive incomeConsolidated statement ofchanges in equityConsolidated balance sheetConsolidated cash flow statementNotes to the consolidated cashflow statementBasis of preparationNotes to the financial informationStatement of Directors’ responsibilitiesIndependent review report to Future plcKey performance indicatorsDirectors and advisersFinancial calendar and contacts
  3. 3. HighlightsSummary:» Revenue: H1 down 4%, flat excluding closures» Profit decline from accelerated investment in growth areas: › Digital: revenue up 30%, profitable in aggregate › Custom publishing: revenue up 27%» Cash generative, net debt: £8.9m, down 23% year-on-year.Outlook:» Macro environment remains challenging» Mobile developments accelerate adoption of digital consumption» Continuing commitment to New Product Development» Full year expected to be in line with expectationsDividend:» Interim dividend maintainedFinancial summary: H1 11 H1 10Revenue £68.8m £71.4mEBITA * £2.4m £4.4mEBITA margin 3.5% 6.2%Operating profit £1.8m £3.0mReported pre-tax profit £1.2m £2.2mEarnings per share (p) 0.2p 0.4pAdjusted ** earnings per share (p) 0.4p 0.7pDividends relating to the period (pence per share) 0.5p 0.5pDefinitions* EBITA represents operating profit before amortisation of intangible assets.** Adjusted earnings per share are based on statutory results,but exclude amortisation of intangibles and related tax effects.The most significant foreign currency affecting the Group is the US dollar. The averageexchange rate for the period was only marginally different at $1.59=£1 (H1 10: $1.60=£1). Future plc Interim Report 2011 1
  4. 4. Our overall position is robust, and we are agnostic as to how our consumers wish to consume content. Customer focus underpins everything we do. And our customers’ almost professional commitment explains why we call them “prosumers”. Our task is to create, curate, distribute and promote the compelling content that satisfies their interests, whilst at the same time serving commercial opportunities for our partners. Accelerating change The arrival of tablets has finally delivered on the promise of mobile accelerating digital consumption. We now have a truly hospitable environment for our content with built-in, friction-free payment options. They give a better web-browsing experience, make digital replica magazines a viable addition to print, and open up global commercial opportunities to develop new applications for content whose appeal transcends geography. Chief Executive’s statement Developing new product We continue to develop our portfolio of print product – but In our 2010 annual results statement, I quoted JFK who, only in adjacent sectors in growth. So far this year we have fifty years ago, said “Change is the law of life”. launched Tap! which targets the exploding Apple iOS market in the UK; Maximum Tech, a broader-based complement to In our first half-year of 2011, we have seen ample our MacLife and Maximum PC US offers; Knitting Today in evidence of that. partnership with Coats, also in the US; as well as a number of specials and low risk one-offs to test new markets I am proud that, throughout our Group, our approach to (TechRadar Guides; iCAR; GamesMaster specials; and a anticipating and managing change continues to be number of bookazines). We have also rolled out the determined, enthusiastic, and focused. We are encouraged successful trial of fan-packs that started with Slash, to by the strong returns on previous investment that we are pre-launch new albums for Motorhead, Hendrix, Whitesnake, seeing from some of our digital and partnership products and – next month – Blondie. These premium-priced (£14.99) and we believe the Group will benefit from the accelerated collectibles use our large magazine distribution footprint to investment in our business. compensate for the reduction in traditional music retail outlets. We’ve also re-designed and re-positioned a number Future’s business is one of engagement with very special- of our established titles – Digital Camera, for example, is this interest audiences who are passionate about particular year up 25% on both sales and contribution since re-launch areas – from computer games to film, from cycling to last year; and is now market leader. music-making, from photography to fast cars. Such passions drive our consumers to consume more about their interests We’ve increased our investment in research to support our – not less – through a variety of platforms and devices and in commercial offer. The Big Game survey showed that 16% a multitude of different ways. So whilst parts of our business of all full price game sales are attributable to our readers. (print advertising in particular) are in decline, other parts Our Techmonitor study showed how we increasingly (digital and custom publishing) continue to grow strongly. influence the influencers; and our new syndicated US audience research has helped to demonstrate our reach Our digitised content revenues grew 30% in H1 and online to non-endemic advertisers. now represents 34% of our commercial advertising revenues; and, with a tenfold increase in digital edition sales, But most of our product development focus has been in an increasing percentage of our consumer circulation digital. In making social, sharing, participative, interactive, revenues. Custom publishing – content we produce under accessible, relevant and connected new offers. We now have contract on behalf of clients – also grew 27% including a 60 replica magazine editions on iPad, as well as a fully doubling of this element of our business in the US. interactive version of T3 – one of only a handful of five-star2 Future plc Interim Report 2011
  5. 5. media apps on the App Store and, with over 100,000 produced (not least the closure as planned of our Pregnancydownloads, the biggest-selling paid-for iPad UK magazine. titles); the active phasing-out of our low-yield subscribers; and a reduced retail footprint driven by bookstore closuresDigital replica sales have increased more than tenfold and an increasing number of independents no longeryear-on-year. And we’re now selling over £100,000 of retail stocking any magazines. This, coupled with a nearly 25%sales per month from a 10m tablets base (predicted to reach print advertising decline (notwithstanding fewer issues),400m in just three years). We’ve had two apps – Guitar has accelerated our commitment to transitioning to digital,World’s Lick of the Day and MacLife – both exceed 500,000 where we have enjoyed some real success.downloads; and we have experimented with content, price,service and frequency across a range of 20 app tests, both Music digital revenues were up 56% and GamesRadar adown brand and for our clients. revenues increased 31% (helped by the more than doubling of our non-endemic clients, attracted by engagementOn the web, we’ve upgraded all our Radar properties – scores and dwell times which exceeded those of IGN,particularly GamesRadar. We’ve improved mobile browsing Gamespot and UGO).and developed a new content management system for acontinuous production and feedback cycle (not just monthly). Digital is now running at 36% of our ad revenues, andWe’ve invested further in short-form video production (where a substantial proportion of our FuturePlus customour new UK CEO, Mark Wood, has particular expertise); in publishing contribution.e-commerce; in digital syndication capabilities; and intraining our dedicated and talented team to create once and FuturePlus doubled revenue in this half-year thanks topublish everywhere. the launch of Knitting Today as well as growth from Best Buy’s @Gamer launch and Blizzard’s World of Warcraft.The short-term effect of these investments is to depress We also developed bespoke apps for both Best Buy andprofits, but we’re already seeing revenue growth from them Coats and Clark.ahead of expectation. OutlookUK trading We will continue to review and develop our content, theOur portfolio, as ever, enjoyed mixed results as it reflected platforms we deliver on, frequency, pricing and interactivity,host sector fortunes as much as macro-economic factors: throughout the second half even though our expectationsales were up in photography, cycling and music – and, remains that the outlook for 2011 will continue to beimportantly, games ad revenue decline halted. But overall, challenging and we maintain a cautious outlook.revenues fell 3%. Like all publishers, Future is managing fundamentalOur online advertising growth in the UK – some 44% – more structural changes in the print market but active portfoliothan compensated for the continued decline in demand for management is mitigating the worst effects of those shifts.print advertising. Overall advertising revenues grew In terms of transformation to new business models, we areyear-on-year, with online’s proportion up from 22% to 31%. gaining traction with new products and making progress at a speed that puts us in the vanguard of those publishingOur fastest-growing websites are now delivering over 30% businesses which are adapting most successfully to the newcontribution levels: our highest is 47%. TechRadar exceeded digital marketplaces.2m UK monthly uniques for the first time and deliveredrevenues up 51% over the immediately preceding six months, A realistic outlook, a focused business, a strong balanceand the UK music websites’ revenues were also up 53%. sheet and a talented, dedicated and creative team, all support the Board’s confidence that we remain on plan for 2011 andNewsstand sales remained challenging although our as well-positioned to take advantage of the fast-changingefficiency levels (copies sold as a proportion of copies media and technology landscape as we can be.printed) were two full percentage points ahead of the market.And our subscribers – by definition our most loyal readership,now at 30% of circulation – are again at an all-time high on allkey measures: yield, revenue and retention rates.US tradingThe US market is changing even more rapidly and revenues Stevie Springdeclined by 7%. The 10% further decline in our underlying Chief Executive, Future plccirculation revenue reflected three things: fewer issues 20 May 2011 Future plc Interim Report 2011 3
  6. 6. Interim statement Statutory results for half-year to 31 March 2011 Review of operations First half-year revenue was £68.8m (2010: £71.4m) and the The review of operations is based primarily on a business generated EBITA of £2.4m (2010: £4.4m). The comparison of our half-year results for the six months resultant EBITA operating margin was 3.5% (2010: 6.2%). ended 31 March 2011 with those for the six months ended The half-year income statement includes a reduced charge 31 March 2010. Unless otherwise stated, change for amortisation of intangible assets of £0.6m (2010: percentages relate to a comparison of these two periods. £1.4m), reflecting fully written-down acquired intangible There has been no significant change to the geographical assets and a reduction in 2010 of spend on web scope of the Group’s activities; the Group continues to development costs which are amortised in the following manage the structural shift in demand for content to be year. The period also benefited from lower net finance delivered on multiple platforms. costs of £0.6m (2010: £0.8m), leading to a pre-tax profit of £1.2m (2010: £2.2m) for the period. Analysis of revenue for half-year to 31 March 2011 2010 Results for the period £m £m Group 2011 2010 Change Revenue 68.8 71.4 % £m £m % EBITA 2.4 4.4 Circulation 58% 40.0 43.0 - 7% EBITA margin 3.5% 6.2% Advertising 29% 20.4 21.2 - 4% Amortisation of intangible assets (0.6) (1.4) Custom publishing 9% 6.1 4.8 + 27% Operating profit 1.8 3.0 Licensing, events & other 4% 2.6 2.7 - 4% Net finance costs (0.6) (0.8) Intra-group (0.3) (0.3) Pre-tax profit 1.2 2.2 Total revenue 100% 68.8 71.4 - 4% Earnings per share (p) 0.2p 0.4p Fifty-eight per cent of the Group’s revenue is generated Adjusted earnings per share (p) 0.4p 0.7p Dividends relating to the period (pence per share) 0.5p 0.5p from consumer (predominantly circulation revenue) and forty-two per cent from client companies Group revenue fell 4%, and also 4% in constant currency (primarily advertising). reflecting only a minimal change in the average exchange rate with the US dollar. Analyses of revenue Geographical analysis of revenue for half-year to 31 March are provided below. Group 2011 2010 Change Group EBITA of £2.4m was lower than H1 2010. In the UK, % £m £m % growth in contribution from digital activities largely UK 71% 49.4 50.7 - 3% US 29% 19.7 21.0 - 6% compensated for decline in contribution from print. In the Intra-group (0.3) (0.3) narrower US portfolio, the decline in print advertising of Total revenue 100% 68.8 71.4 - 4% 25% significantly impacted margin, as we maintained investment in growth areas to compensate. Central costs In the UK, revenue fell by 3%. In the US, dollar revenue remain firmly under control, after excluding one-off costs fell by 7% reflecting weakness in print advertising revenue of project due diligence. The impact of these factors is and the closure of our Pregnancy group, which was not reflected in the following table: completely offset by growth in digital and custom publishing revenue. Analysis of EBITA for half-year to 31 March 2011 2010 Change £m £m £m UK 5.5 6.1 (0.6) US (1.5) (0.4) (1.1) Central costs (1.6) (1.3) (0.3) Total EBITA 2.4 4.4 (2.0) The Group is managed primarily on a geographical basis.4 Future plc Interim Report 2011
  7. 7. UK performance in half-year US performance in half-year (shown in US dollars) 2011 2010 Change 2011 2010 Change £m £m % $m $m %Circulation revenue 31.2 32.5 - 4% Circulation revenue 14.0 16.8 - 17%Advertising revenue 13.3 13.0 + 2% Advertising revenue 11.2 13.2 - 15%Custom publishing 2.9 3.2 - 9% Custom publishing 5.2 2.6 + 100%Licensing, events & other 2.0 2.0 - Licensing, events & other 0.9 0.9 –Total revenue 49.4 50.7 - 3% Total revenue 31.3 33.5 - 7%EBITA 5.5 6.1 EBITA (2.3) (0.6)EBITA margin 11% 12% EBITA margin - 7% - 2%Overall, UK revenue for the half-year fell by 3%. US revenue for the half-year fell by 7%, reflecting the closure of our Pregnancy group, a 25% further decline inCirculation revenue fell by 4% but within this subscription print advertising, and an underlying 10% reduction in salesrevenue grew by 2%. Domestic newsstand revenue at newsstand.declined 9% and export revenue was up 2%. Total advertising revenue fell by 15% for the half-year, asAdvertising revenue grew 2%, because growth in online the growth in digital advertising was less than the reductionadvertising exceeded the decline in print advertising. in print advertising.The movements in other sources of revenue are shown Custom publishing revenue has once again recordedin the table above. strong growth.The following table shows performance by sector. The following table shows performance by sector.During the period, the strongest performance came 2011 2011 2011 2011 2010 2010 2010from Technology, driven by TechRadar. Revenue Contrib’n Margin % of Revenue Contrib’n Margin $m $m % revenue $m $m % 2011 2011 2011 2011 2010 2010 2010 Games 15.8 2.3 15% 51% 15.3 2.2 14% Revenue Contrib’n Margin % of Revenue Contrib’n Margin Music & Movies 6.5 – – 21% 7.6 0.9 12% £m £m % revenue £m £m % Technology 7.0 0.7 10% 22% 8.3 1.4 17%Games 9.9 2.7 27% 20% 10.1 2.7 27% Active 2.0 (0.4) - 20% 6% 2.3 (0.2) - 9%Music & Movies 11.9 2.8 24% 24% 12.2 3.4 28% 31.3 2.6 8% 100% 33.5 4.3 13%Technology 14.8 4.8 32% 30% 15.4 4.6 30% Overheads (4.9) (4.9)Active 12.8 3.2 25% 26% 13.0 3.2 25% EBITA 31.3 (2.3) - 7% 33.5 (0.6) - 2% 49.4 13.5 27% 100% 50.7 13.9 27%Overheads (8.0) (7.8)EBITA 49.4 5.5 11% 50.7 6.1 12% In the US the growth in profit contribution from digital activities was $0.8m but the decline from print wasGrowth in profit contribution from digital activities was $3.1m, consequent to the $5.2m decrease in print-£1.1m, whilst the corresponding decline from print derived revenue.activities was £1.2m. A £0.3m lower contribution fromcustom publishing phasing and a £0.2m increase in We have maintained our control of operating costs.provision for ageing receivables explain the reductionin EBITA.We have maintained our control of operating costs. Future plc Interim Report 2011 5
  8. 8. Interim statement (continued) Digital Bank covenants The UK and US segmental figures above include digital Future funds its operations through a mixture of operating revenue and operating costs. Digital development cash flow generated by the business and bank debt. continues as a key focus for the business and Group digital Since 2001 the Group has complied at all times with all revenue increased by 30% from £6.1m to £7.9m for the half- covenants under its banking facilities. The position at 31 year. The Group’s digital operations are, in aggregate, March 2011 is within the bank covenants as set out in the profitable and growth in digital contribution is increasingly following table. compensating for weakness in print. 31 March 2011 Bank covenant Net finance costs Net debt / EBITDA 0.96 times Less than 2.0 times Net finance costs were £0.6m, 25% lower than the EBITDA / interest 7.88 times More than 4.0 times corresponding figure last year, reflecting a reduction of 25% in the average level of month-end net debt during Cashflow cover Not tested (see below) the period. The Group’s credit facility was renewed in May 2009, and Taxation amended in October 2010 and May 2011. The most recent The tax charge for the half-year was £0.4m (2010: £0.7m) amendment deleted the cashflow cover covenant from the which represents an estimated effective tax rate of 34% Credit Agreement altogether, and reduced the maximum (2010: 33%) applied to profit before tax. This is the effective ratio of Net debt / EBITDA from 2.5 to 2.0 times for the rate estimated to apply to taxable profits of the Group for remaining life of the Agreement, which is due to mature on the full financial year. 30 November 2012. The Board considers that the level of the Group’s net bank debt is acceptable. Cash flow and net debt Net debt at 30 September 2010 was £7.4m. During the Interim dividend period cash generated from operations amounted to The Group remains profitable and has chosen to continue £2.1m (2010: £5.9m) reflecting phasing of cash collection investing in the business to ensure it is well positioned to at half-years. exploit digital developments. Taking account of these factors, and the fact that the Group continues to be cash During the period, cash outflows totalled £3.4m (2010: generative, the Board has decided on an unchanged £1.6m) in respect of the following items: £1.6m (2010: £Nil) interim dividend of 0.5p per share (2010: 0.5p) to be paid in dividends, £1.4m (2010: £0.7m) in respect of capital on 3 October 2011 to all shareholders on the register on expenditure, £0.6m (2010: £0.8m) in net interest payments, 19 August 2011. The ex-dividend date is 17 August 2011. and net tax receipts of £0.2m (2010: net tax payments of £0.1m). Exchange and other movements accounted for the Key performance indicators balance of cashflows. An updated set of key performance indicators is presented on page 26 of this report. Net debt at 31 March 2011 was £8.9m, a reduction of 23% since 31 March 2010.6 Future plc Interim Report 2011
  9. 9. Risks (c)  Advertiser behaviourThe principal risks and uncertainties that affect the Advertising patterns continue to change and in the UK,Group on an ongoing basis are described in our Annual internet advertising now accounts for a greater share ofReport 2010 (on page 24), which is available at advertising expenditure than is allocated to television,www.futureplc.com. radio, billboards, magazines or newspapers.The three risks that may impact the Group’s performance Advertising represents less than one-third of the Group’sduring the second half of the financial year are highlighted revenue and is subject to variation not only in relation to theimmediately below. The impact of these risks could cause strength of the Group’s products but also in relation toactual results to differ from expected and historical results. shifts in macro-advertising trends. However, over 90% of the Group’s advertising revenue is tailored to areas ofRisks that may impact the second half of the financial year special-interest and is arguably, therefore, less susceptible to changes in levels of mainstream advertising, reflecting(a)  Macro-economic environment the advertising health of each sub-sector.The macro-economic environment during 2009 and 2010was the worst in the Company’s history. Both the UK and Other risks disclosed in the Annual Report 2010the US have emerged from recession but as explainedearlier, general recovery has been patchy and 2011 trading (d)  Risk managementconditions have remained tough. Future has continued to We operate a continuous process of identifying, evaluatingprove remarkably resilient due to the Group’s focus on and managing risk. There are a number of generalareas of special-interest. Nonetheless, the Group may be business risks to which Future is naturally exposed in theexposed to any significant or renewed downturn in UK and US. The range of risks faced by Future has notconsumer confidence. increased since last year. Our internal controls seek to minimise the impact of such risks, as explained in our(b)  Consumer behaviour Corporate Governance report on page 39 of the AnnualConsumers’ propensity to spend money on magazines, Report 2010.digital editions, online shopping, events and other productsis influenced by a number of economic factors, including (e)  Distribution and magazine costsgeneral economic indicators. Future contracts out printing and distribution and is therefore reliant on the efficiency of suppliers of these58% of the Group’s revenue is dependent on consumers services. The cost of paper and printing generally reflectsactively purchasing magazines. Such purchases depend market conditions. A significant minority of Future’son the normal, competitive publishing environment, which magazines are sold with cover-mounted CDs or DVDshas been challenging since 2009, and on the macro- and these too are purchased from external suppliers.economic environment. However, the out-of-pocket cost of Magazines are distributed by nominated distributors andmagazines (print or digital) is low in comparison with many there are many links in the chain to ensure that magazines,other items of consumer expenditure and research shows once printed, reach retail outlets on a timely basis.that magazines are often regarded by consumers as a The cost and efficiency of postal arrangements affectslow-cost treat. magazines sold by subscription, which is particularly significant for Future in the US, and increasingly soFuture believes that while its consumers are likely to seek for the UK.information about their chosen area of interest through avariety of media, an increasing number of consumers arespending more time online, particularly on mobile devices.This shift creates both a threat (in terms of potentiallyreducing magazine revenues) and opportunities. Future plc Interim Report 2011 7
  10. 10. Interim statement (continued) Other risks disclosed in the Annual Report 2010 The Board (continued) During the period we appointed two new Directors to succeed two who stood down at the 2011 AGM, after having (f)  Regulatory served more than nine years, as previously announced. In addition to legislative constraints applicable to any business in the UK and US, Future is potentially In October 2010 we were delighted to welcome Mark constrained by competition regulation, and by other Whiteling as a non-executive Director: he now chairs the regulations affecting the content of our publications. Audit Committee, succeeding Patrick Taylor. (g)  Sources of Intellectual Property In February 2011 we were delighted to welcome Manjit The majority of our Group revenues are built on our own Wolstenholme as a non-executive Director: she is brands (currently 77%). A proportion of the Group’s now our senior independent Director, succeeding revenue and profits is derived from magazines which are Michael Penington. branded ‘Official’ in accordance with contracts with major companies including Microsoft, Sony and Nintendo. Following more than a decade on the Board, Future’s Although the loss of any such contract would constitute a Chairman, Roger Parry, has informed the Board that he loss of revenue, the Group has a long history of successful intends to stand down as a Director. Accordingly, we have publishing partnerships with these and other companies. started a process to identify a new Chairman with the intention of their being in place ahead of the next AGM. (h)  Protection of Intellectual Property As an English-language content provider, protecting and enforcing our intellectual property rights, particularly in an increasingly digital world where piracy is easier, is key. We are developing best practice within our businesses and we are actively involved in the industry, Government and European efforts to protect and enforce these rights against worldwide piracy. From time to time, the Group may be subject to disputes relating to these rights. Any such disputes are contested vigorously. (i)  Financial The Group is exposed to interest rate and foreign exchange risk, which it manages where appropriate by hedging arrangements. Taxation and VAT arrangements impacting the business are different in each country and any adverse change in such arrangements could impact our business.8 Future plc Interim Report 2011
  11. 11. Current trading and outlookTrading in the first half was challenging, yet we’ve seen sixmonths of an accelerating pace of change as the arrival ofpowerful mobile devices increases digital contentconsumption. The decline in profits includes maintainedplanned investment, particularly in digital, as we continueto transition our business for the future.Our digitised content revenues grew 30% in H1 and onlinenow represents 34% of our commercial advertising and,with a tenfold increase in digital edition sales, an increasingpercentage of our consumer circulation revenues.Significantly, our digital activities were profitable for thefirst time this half.Encouraged by that progress, the Board has maintained theinterim dividend despite an expectation that the tradingconditions for the rest of 2011 will remain challenging.Roger ParryChairmanStevie SpringChief ExecutiveJohn BowmanGroup Finance DirectorManjit WolstenholmeSenior independent non-executive DirectorSeb BishopIndependent non-executive DirectorMark WhitelingIndependent non-executive Director20 May 2011 Future plc Interim Report 2011 9
  12. 12. Consolidated income statement for the six months ended 31 March 2011 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 Note £m £m £m Revenue 1, 2 68.8 71.4 151.5 Operating profit before amortisation of intangible assets 1 2.4 4.4 10.1 Amortisation of intangible assets 3 (0.6) (1.4) (2.7) Operating profit 3 1.8 3.0 7.4 Net finance costs 5 (0.6) (0.8) (1.8) Profit before tax 1 1.2 2.2 5.6 Tax on profit 6 (0.4) (0.7) (0.1) Profit for the period 0.8 1.5 5.5 Earnings per 1p Ordinary share 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 Note pence pence pence Basic earnings per share 8 0.2 0.4 1.7 Diluted earnings per share 8 0.2 0.4 1.610 Future plc Interim Report 2011
  13. 13. Consolidated statement of comprehensive incomefor the six months ended 31 March 2011 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 £m £m £mProfit for the period 0.8 1.5 5.5Currency translation differences (0.2) 0.6 0.1Cash flow hedges 0.1 (0.1) 0.1Other comprehensive income for the period (0.1) 0.5 0.2Total comprehensive income for the period 0.7 2.0 5.7 Future plc Interim Report 2011 11
  14. 14. Consolidated statement of changes in equity for the six months ended 31 March 2011 Cash flow Share Share Merger Treasury hedge Retained Total capital premium reserve reserve reserve earnings equity Note £m £m £m £m £m £m £m Balance at 1 October 2010 3.3 24.5 109.0 – (0.1) (50.5) 86.2 Profit for the period – – – – – 0.8 0.8 Currency translation differences – – – – – (0.2) (0.2) Cash flow hedges – – – – 0.1 – 0.1 Other comprehensive income for the period – – – – 0.1 (0.2) (0.1) Total comprehensive income for the period – – – – 0.1 0.6 0.7 Interim dividend relating to 2010 7 – – – – – (1.6) (1.6) Final dividend relating to 2010 7 – – – – – (2.0) (2.0) Share schemes – Value of employees’ services 4 – – – – – 0.2 0.2 Deferred tax on share schemes – – – – – (0.1) (0.1) Treasury shares acquired – – – (0.2) – – (0.2) Balance at 31 March 2011 3.3 24.5 109.0 (0.2) – (53.4) 83.2 Balance at 1 October 2009 3.3 24.5 109.0 (0.1) (0.2) (55.0) 81.5 Profit for the period – – – – – 1.5 1.5 Currency translation differences – – – – – 0.6 0.6 Cash flow hedges – – – – (0.1) – (0.1) Other comprehensive income for the period – – – – (0.1) 0.6 0.5 Total comprehensive income for the period – – – – (0.1) 2.1 2.0 Final dividend relating to 2009 7 – – – – (1.6) (1.6) Share schemes – Value of employees’ services 4 – – – – – 0.3 0.3 Balance at 31 March 2010 3.3 24.5 109.0 (0.1) (0.3) (54.2) 82.2 Balance at 1 October 2009 3.3 24.5 109.0 (0.1) (0.2) (55.0) 81.5 Profit for the year – – – – – 5.5 5.5 Currency translation differences – – – – – 0.1 0.1 Cash flow hedges – – – – 0.1 - 0.1 Other comprehensive income for the period – – – – 0.1 0.1 0.2 Total comprehensive income for the period – – – – 0.1 5.6 5.7 Final dividend relating to 2009 7 – – – – – (1.6) (1.6) Share schemes – Value of employees’ services 4 – – – – – 0.5 0.5 Deferred tax on share schemes – – – – – 0.1 0.1 Transfer between reserves – – – 0.1 – (0.1) – Balance at 30 September 2010 3.3 24.5 109.0 – (0.1) (50.5) 86.212 Future plc Interim Report 2011
  15. 15. Consolidated balance sheetas at 31 March 2011 31 March 31 March 30 September 2011 2010 2010 Note £m £m £mAssetsNon-current assetsProperty, plant and equipment 9 3.0 3.6 3.2Intangible assets – goodwill 110.6 111.9 110.9Intangible assets – other 1.7 1.8 1.2Deferred tax 1.4 0.4 0.9Total non-current assets 116.7 117.7 116.2Current assetsInventories 4.6 4.4 3.4Corporation tax recoverable – 0.3 0.3Trade and other receivables 20.8 20.7 23.8Cash and cash equivalents 12.1 13.7 13.3Total current assets 37.5 39.1 40.8Total assets 154.2 156.8 157.0Equity and liabilitiesEquityIssued share capital 10 3.3 3.3 3.3Share premium account 24.5 24.5 24.5Merger reserve 109.0 109.0 109.0Treasury reserve (0.2) (0.1) –Cash flow hedge reserve – (0.3) (0.1)Retained earnings (53.4) (54.2) (50.5)Total equity 83.2 82.2 86.2Non-current liabilitiesFinancial liabilities – interest-bearing loans and borrowings 6.3 9.3 7.8Financial liabilities – derivatives 0.3 0.6 0.4Deferred tax 2.0 4.0 2.0Provisions 0.4 1.0 0.8Other non-current liabilities 2.5 2.6 2.4Total non-current liabilities 11.5 17.5 13.4Current liabilitiesFinancial liabilities – interest-bearing loans and borrowings 14.7 15.9 12.9Financial liabilities – derivatives 0.3 0.5 0.3Trade and other payables 40.1 40.5 40.8Corporation tax payable 4.4 0.2 3.4Total current liabilities 59.5 57.1 57.4Total liabilities 71.0 74.6 70.8Total equity and liabilities 154.2 156.8 157.0 Future plc Interim Report 2011 13
  16. 16. Consolidated cash flow statement for the six months ended 31 March 2011 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 £m £m £m Cash flows from operating activities Cash generated from operations 2.1 5.9 12.0 Tax received 0.3 – 1.4 Interest paid (0.6) (0.8) (1.4) Tax paid (0.1) (0.1) (0.2) Net cash generated from operating activities 1.7 5.0 11.8 Cash flows from investing activities Purchase of property, plant and equipment (0.3) (0.3) (0.8) Purchase of magazine titles, websites and trademarks – (0.1) (0.2) Purchase of computer software and website development (1.1) (0.3) (0.8) Net cash used in investing activities (1.4) (0.7) (1.8) Cash flows from financing activities Purchase of own shares by Employee Benefit Trust (0.2) – – Draw down of bank loans 3.9 – – Repayment of bank loans (3.6) (5.6) (9.9) Equity dividends paid (1.6) - (1.6) Net cash used in financing activities (1.5) (5.6) (11.5) Net decrease in cash and cash equivalents (1.2) (1.3) (1.5) Cash and cash equivalents at beginning of period 13.3 14.6 14.6 Exchange adjustments – 0.4 0.2 Cash and cash equivalents at end of period 12.1 13.7 13.314 Future plc Interim Report 2011
  17. 17. Notes to the consolidated cash flow statementfor the six months ended 31 March 2011A  Cash generated from operationsThe reconciliation of operating profit to cash flows generated from operations is set out below: 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 £m £m £mOperating profit for the period 1.8 3.0 7.4Adjustments for:Depreciation charge 0.6 0.8 1.6Amortisation of intangible assets 0.6 1.4 2.7Share schemes– Value of employees’ services 0.2 0.3 0.5Operating profit before changes in working capital and provisions 3.2 5.5 12.2Movement in provisions (0.4) (0.1) (0.3)Increase in inventories (1.2) (0.9) (0.1)Decrease/(increase) in trade and other receivables 2.9 2.6 (0.7)(Decrease)/increase in trade and other payables (2.4) (1.2) 0.9Cash generated from operations 2.1 5.9 12.0B  Analysis of net debt 1 October Cash Non-cash Exchange 31 March 2010 flows changes movements 2011 £m £m £m £m £mCash and cash equivalents 13.3 (1.2) – – 12.1Debt due within one year (12.9) (0.3) (1.6) 0.1 (14.7)Debt due after more than one year (7.8) – 1.5 – (6.3)Net debt (7.4) (1.5) (0.1) 0.1 (8.9)C  Reconciliation of movement in net debt 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 £m £m £mNet debt at start of period (7.4) (15.6) (15.6)Decrease in cash and cash equivalents (1.2) (1.3) (1.5)Movement in borrowings (0.3) 5.6 9.9Non-cash changes (0.1) (0.1) (0.3)Exchange movements 0.1 (0.1) 0.1Net debt at end of period (8.9) (11.5) (7.4) Future plc Interim Report 2011 15
  18. 18. Basis of preparation This unaudited condensed interim financial information for the six months ended 31 March 2011 has been prepared in accordance with International Accounting Standard 34 ‘Interim Financial Reporting’ as adopted by the European Union, and in accordance with the Disclosure and Transparency Rules of the Financial Services Authority. The interim financial information contained in the Interim Report should be read in conjunction with the Annual Report for the year ended 30 September 2010. The Interim Report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006 and has not been audited. A copy of the statutory financial statements for the year ended 30 September 2010 has been filed with the Registrar of Companies. The auditors’ report on those accounts was unqualified; it did not contain an emphasis of matter and did not contain any statements under section 498(2) or section 498(3) of the Companies Act 2006. The auditors have carried out a review of the Interim Report and their review report is set out on page 25. The accounting policies adopted, methods of computation and presentation are consistent with those set out in the Group’s statutory accounts for the financial year ended 30 September 2010.16 Future plc Interim Report 2011
  19. 19. The following standards, interpretations and amendments to published standards areeffective but not relevant for the Group’s operations:» Amendment to IFRS2 ‘Share-based Payment’ on group cash-settled share-basedpayment transactions.» Amendment to IAS32 ‘Financial Instruments: Presentation’ on classificationof rights issues.» IFRIC 19 ‘Extinguishing Financial Liabilities with Equity Instruments’. Future plc Interim Report 2011 17
  20. 20. Notes to the financial information for the six months ended 31 March 2011 1  Segmental reporting The Group is organised and arranged primarily by geographical segment. The Board of Future plc considers the performance of the business from a geographical perspective, namely the UK and the US. The Australian business is considered to be part of the UK segment and is not separately reported. Segment revenue 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 £m £m £m UK 49.4 50.7 105.9 US 19.7 21.0 46.2 Revenue between segments (0.3) (0.3) (0.6) Total segment revenue 68.8 71.4 151.5 Revenue from external parties is measured in a manner consistent with that in the income statement. Transactions between segments are carried out at arm’s length. Segment EBITA 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 £m £m £m UK 5.5 6.1 12.9 US (1.5) (0.4) 0.2 Central costs (1.6) (1.3) (3.0) Total segment EBITA 2.4 4.4 10.1 EBITA is used by the Board to assess the performance of each segment. Segment EBITA represents the EBITA earned by each segment without the allocation of central administration costs. A reconciliation of total segment EBITA to profit before tax is provided as follows: 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 £m £m £m Total segment EBITA 2.4 4.4 10.1 Amortisation of intangible assets (0.6) (1.4) (2.7) Net finance costs (0.6) (0.8) (1.8) Profit before tax 1.2 2.2 5.618 Future plc Interim Report 2011
  21. 21. 2  RevenueAn additional analysis of the Group’s revenue is shown below: 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 £m £m £mCirculation 40.0 43.0 88.7Advertising 20.4 21.2 45.4Custom publishing 6.1 4.8 11.6Licensing, events & other 2.3 2.4 5.8Total 68.8 71.4 151.53  Operating profit 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 £m £m £mRevenue 68.8 71.4 151.5Cost of sales (48.1) (49.0) (104.2)Gross profit 20.7 22.4 47.3Distribution expenses (5.6) (5.8) (12.0)Administration expenses (12.7) (12.2) (25.2)Amortisation of intangible assets (0.6) (1.4) (2.7)Operating profit 1.8 3.0 7.4 Future plc Interim Report 2011 19
  22. 22. Notes to the financial information (continued) 4  Employees 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 £m £m £m Wages and salaries 22.3 21.2 44.2 Social security costs 2.2 2.8 5.7 Other pension costs 0.5 0.5 1.1 Share schemes – Value of employees’ services 0.2 0.3 0.5 Total 25.2 24.8 51.5 IFRS 2 ‘Share-based Payment’ requires an expense for equity instruments granted to be recognised over the appropriate vesting period, measured at their fair value at the date of grant. The Group has used the Black-Scholes model to value instruments with non market-based performance criteria such as earnings per share. For instruments with market-based performance criteria, notably total shareholder return, the Group has used a Monte Carlo model to determine the fair value. The expense for the six months ended 31 March 2011 of £0.2m (2010: £0.3m) has been credited to reserves. Key management personnel compensation 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 £m £m £m Salaries and other short-term employee benefits 0.4 0.4 1.1 Post-employment benefits 0.1 0.1 0.1 Share schemes – Value of employees’ services 0.1 0.1 0.3 Total 0.6 0.6 1.5 Key management personnel are deemed to be the members of the Board of Future plc. It is this Board which has responsibility for planning, directing and controlling the activities of the Group.20 Future plc Interim Report 2011
  23. 23. 5  Net finance costs 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 £m £m £mInterest payable on interest-bearing loans and borrowings (0.6) (0.8) (1.4)Fair value gain/(loss) on interest rate derivatives 0.2 – (0.1)Exchange gains – 0.1 0.1Amortisation of bank loan arrangement fees (0.2) (0.1) (0.3)Other finance costs – – (0.1)Net finance costs (0.6) (0.8) (1.8)In line with the Board’s policy of hedging interest rate risk, the Group entered into interest rate swaps. The valuation ofthese interest rate swaps at 31 March 2011 resulted in a gain for the six months ended 31 March 2011 of £0.2m (2010: £nil).6  Tax on profitThe tax charge for the six months ended 31 March 2011 is based on the estimated effective rate of tax for the Group forthe full year to 30 September 2011. The estimated effective rate is applied to the profit before tax.7  Dividends 6 months to 6 months to 12 months to 31 March 31 March 30 SeptemberEquity dividends 2011 2010 2010Number of shares in issue at end of period (million) 328.8 327.9 328.0Dividends paid and payable in period (pence per share) 1.1 0.5 0.5Dividends paid and payable in period (£m) 3.6 1.6 1.6Interim dividends are recognised in the period in which they are paid and final dividends are recognised in the period inwhich they are approved.The dividends totalling £3.6m paid and payable during the period ended 31 March 2011 relate to the interim dividendpaid for the six-month period to 31 March 2010 of 0.5 pence per share (£1.6m) and the final dividend declared for theyear ended 30 September 2010 of 0.6 pence per share (£2.0m), which was approved on 9 February 2011 and paid on1 April 2011.For the period ended 31 March 2010 and the year ended 30 September 2010 the dividend payable/paid of £1.6m wasthe final dividend of 0.5 pence per share declared for the year ended 30 September 2009.An interim dividend in respect of the six months ended 31 March 2011 of 0.5 pence per share, amounting to £1.6m,has been declared by the Board but is not reflected in this interim statement. Future plc Interim Report 2011 21
  24. 24. Notes to the financial information (continued) 8  Earnings per share Basic earnings per share are calculated using the weighted average number of Ordinary shares in issue during the period. Diluted earnings per share have been calculated by taking into account the dilutive effect of shares that would be issued on conversion into Ordinary shares of awards held under employee share schemes. The adjusted earnings per share removes the effect of the amortisation of intangible assets and any related tax effects from the calculation as follows: Adjustments to profit after tax 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 £m £m £m Profit after tax 0.8 1.5 5.5 Add: amortisation of intangible assets 0.6 1.4 2.7 Tax effect of the above adjustment (0.1) (0.5) (0.3) Adjusted profit after tax 1.3 2.4 7.9 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 Weighted average number of shares outstanding during the period: – Basic 327,649,671 327,122,804 327,314,532 – Dilutive effect of share awards 7,810,104 8,497,514 8,442,387 – Diluted 335,459,775 335,620,318 335,756,919 Basic earnings per share (in pence) 0.2 0.4 1.7 Adjusted basic earnings per share (in pence) 0.4 0.7 2.4 Diluted earnings per share (in pence) 0.2 0.4 1.6 Adjusted diluted earnings per share (in pence) 0.4 0.7 2.3 The adjustments to profit have the following effect: 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 pence pence pence Basic earnings per share 0.2 0.4 1.7 Amortisation of intangible assets 0.2 0.4 0.8 Tax effect of the above adjustment – (0.1) (0.1) Adjusted basic earnings per share 0.4 0.7 2.4 Diluted earnings per share 0.2 0.4 1.6 Amortisation of intangible assets 0.2 0.4 0.8 Tax effect of the above adjustment – (0.1) (0.1) Adjusted diluted earnings per share 0.4 0.7 2.322 Future plc Interim Report 2011
  25. 25. 9  Property, plant and equipmentDuring the six months ended 31 March 2011, property, plant and equipment additions totalled £0.4m (31 March 2010:£0.3m). The £0.4m is attributable to: land and buildings £0.1m (2010: £nil); plant and machinery £0.2m (2010: £0.3m);equipment, fixtures and fittings of £0.1m (2010: £nil).There were no commitments for capital expenditure contracted for but not provided at 31 March 2011(31 March 2010: £nil).The depreciation charge for the period totalled £0.6m (31 March 2010: £0.8m). The £0.6m is attributable to: land andbuildings £0.1m (2010: £0.2m); plant and machinery £0.4m (2010: £0.5m); equipment, fixtures and fittings £0.1m(2010: £0.1m).10  Issued share capitalDuring the period, 806,369 Ordinary shares (31 March 2010: 676,647) with a nominal value of £8,064 (2010: £6,766) wereissued by the Company for a total cash commitment of £6,375 (2010: £nil), pursuant to share scheme exercises.As at 31 March 2011 there were 328,786,172 Ordinary shares in issue (31 March 2010: 327,873,915).11  Contingent assets and contingent liabilitiesAt 31 March 2011 there were no material contingent assets or contingent liabilities. Future plc Interim Report 2011 23
  26. 26. Statement of Directors’ responsibilities The Directors confirm that to the best of their knowledge the condensed interim financial information contained in the Interim Report has been prepared in accordance with International Accounting Standard 34, ‘Interim Financial Reporting’, as adopted by the European Union and that the Interim Management Report herein includes a fair review of the information required by the Disclosure and Transparency Rules. The Directors of Future plc are as listed in the Future plc Annual Report for 30 September 2010, with the exception of the following changes in the period: Mark Whiteling was appointed on 8 October 2010; Patrick Taylor and Michael Penington resigned on 9 February 2011, and Manjit Wolstenholme was appointed on 9 February 2011. On behalf of the Board John Bowman Group Finance Director 20 May 2011 Directors Roger Parry Chairman Stevie Spring Chief Executive John Bowman Group Finance Director Manjit Wolstenholme Senior independent non-executive Director Seb Bishop Independent non-executive Director Mark Whiteling Independent non-executive Director Company Secretary and General Counsel Mark Millar The maintenance and integrity of the Future plc website is the responsibility of the Directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.24 Future plc Interim Report 2011
  27. 27. Independent review report to Future plcIntroductionWe have been engaged by the Company to review the condensed interim financial information in the half-yearly financialreport for the six months ended 31 March 2011, which comprises the Consolidated income statement, Consolidatedstatement of comprehensive income, Consolidated statement of changes in equity, Consolidated balance sheet,Consolidated cash flow statement, Notes to the consolidated cash flow statement, Basis of preparation and relatednotes. We have read the other information contained in the half-yearly financial report and considered whether it containsany apparent misstatements or material inconsistencies with the information in the condensed financial information.Directors’ responsibilitiesThe half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors areresponsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules ofthe United Kingdom’s Financial Services Authority.As disclosed in the Basis of preparation, the annual financial statements of the Group are prepared in accordance withIFRSs as adopted by the European Union. The condensed interim financial information included in this half-yearlyfinancial report has been prepared in accordance with International Accounting Standard 34, ‘Interim FinancialReporting’, as adopted by the European Union.Our responsibilityOur responsibility is to express to the Company a conclusion on the condensed interim financial information in thehalf-yearly financial report based on our review. This report, including the conclusion, has been prepared for and only forthe Company for the purpose of the Disclosure and Transparency Rules of the Financial Services Authority and for noother purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any otherperson to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consentin writing.Scope of reviewWe conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410,‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’ issued by the AuditingPractices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries,primarily of persons responsible for financial and accounting matters, and applying analytical and other reviewprocedures. A review is substantially less in scope than an audit conducted in accordance with International Standardson Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of allsignificant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.ConclusionBased on our review, nothing has come to our attention that causes us to believe that the condensed interim financialinformation in the half-yearly financial report for the six months ended 31 March 2011 is not prepared, in all materialrespects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosureand Transparency Rules of the United Kingdom’s Financial Services Authority.PricewaterhouseCoopers LLPChartered Accountants20 May 2011London Future plc Interim Report 2011 25
  28. 28. Key performance indicators for the six months ended 31 March 2011 6 months to 6 months to 12 months to 31 March 31 March 30 September 2011 2010 2010 Annual growth in revenue (at constant currency) - 4% - 5% - 1% EBITA operating margin (as a %) 3.5% 6.2% 6.7% Absolute EBITA (in sterling) £2.4m £4.4m £10.1m Change in adjusted earnings per share (as a %) - 43% + 17% + 33% Number of magazines sold per month 2.9m 3.3m 3.4m Proportion of magazines sold from total number printed See notes 1-3 See notes 1-3 See notes 1-3 Proportion of Group’s business derived from our brands compared with partnership publishing 77:23 (note 4) 77:23 (note 4) 76:24 (note 4) Number of unique users logging on to our websites per month 25m (note 5) 27m (note 5) 23m (note 5) Growth in total advertising revenue (as a % at constant currency) - 4% - 11% - 5% Proportion of advertising revenue that is online (as a %) 34% 24% 25% Human capital See note 6 See note 6 See note 6 Net bank debt £8.9m £11.5m £7.4m Notes 1  The majority of magazines printed by the Group are sold, and those unsold are mainly recycled and used for newspaper production. The precise proportion sold at newsstand is a detailed KPI each month for every title. However, the Group believes that it is commercially sensitive to disclose these percentages, since competitors typically do not release this information. Magazines printed for subscription have no wastage. 2  In the UK 71% of magazines (by volume) are sold at newsstand. Our overall UK average newsstand efficiency has remained the same as the first half of 2010. Future has increased the proportion of magazine volume sales derived from subscription rather than newsstand, from 26% to 29%. The majority of UK revenues for magazines are derived from cover price. 3  In the US 30% of magazines (by volume) are sold at newsstand. The majority are sold by subscription at heavily discounted prices. Newsstand efficiency decreased by 4% in 2011 compared with the first half of 2010. 4  Partnership publishing represents 23% of Group revenue for the first half of 2011. This category includes business from our Official magazines and programmes published for Microsoft (Xbox 360 and Windows), Sony (PlayStation, FirstPlay and Qore), Nintendo, plus custom publishing activities. The majority of the Group’s revenue is generated from our own brands. 5  For each of our websites we know the number of page impressions and the number of unique visitors to that website. We do not know how many unique visitors visit more than one of our websites. The number presented here is the simple total of each website’s average monthly number of unique visitors. The figures for March 2010 included 7m unique users relating to our aggregation websites (since closed). 6  Human capital is the Group’s most important resource, with 1,213 employees (at 31 March 2011). In the running of our business, we focus on retention of key employees and on refreshment of the team with new people and new ideas.26 Future plc Interim Report 2011
  29. 29. Directors and advisersDirectors Auditors PricewaterhouseCoopers LLPRoger Parry 1 Embankment PlaceChairman London WC2N 6RHStevie SpringChief Executive BrokerJohn Bowman Numis Securities LtdGroup Finance Director 10 Paternoster SquareManjit Wolstenholme London EC4M 7LTSenior independent non-executive DirectorSeb Bishop Principal bankersIndependent non-executive Director Barclays Bank plcMark Whiteling 1 Churchill PlaceIndependent non-executive Director London E14 5HPCompany Secretary and General Counsel RegistrarsMark Millar Computershare Investor Services plc The PavilionsLondon office Bridgwater Road2 Balcombe Street Bristol BS99 6ZYLondon NW1 6NATel: +44 (0)20 7042 4000 Solicitors Allen & Overy LLPRegistered office One Bishops SquareFuture plc London E1 6ADBeauford Court30 Monmouth StreetBath BA1 2BWTel: +44 (0)1225 442244Company registration number 3757874www.futureplc.com Future plc Interim Report 2011 27
  30. 30. Financial calendar and contacts for the six months ended 31 March 2011 Financial calendar Half-year end 31 March 2011 Half-year results announced 20 May 2011 Half-year results mailed to shareholders 9 June 2011 Financial year end 30 September 2011 Annual results announced 24 November 2011 Annual results mailed to shareholders December 2011 Where to contact us Future plc Future Publishing Ltd Future US, Inc www.futureplc.com www.futureplc.com www.futureus.com 2 Balcombe Street Beauford Court 4000 Shoreline Court London NW1 6NW 30 Monmouth Street Suite 400 +44 (0)20 7042 4000 Bath BA1 2BW South San Francisco + 44 (0)1225 442244 CA 94080 Beauford Court + 1 650 872 1642 30 Monmouth Street 2 Balcombe Street Bath BA1 2BW London NW1 6NW 149 Fifth Avenue + 44 (0)1225 442244 +44 (0)20 7042 4000 9th Floor New York NY 10010 + 1 212 768 296628 Future plc Interim Report 2011
  31. 31. Relations with shareholders and Company websiteThe Company’s website, www.futureplc.com, contains up-to-date informationon the Group’s activities and the investor relations section includes a full copyof the interim and annual results, presentations provided to analysts, and anaudio recording of the most recent such presentation on 20 May 2011. Copies ofthese presentations are also available from the Company’s registered office.
  32. 32. Future plcwww.futureplc.com2 Balcombe StreetLondon NW1 6NWUnited KingdomTel: +44 (0)20 7042 4000Beauford Court30 Monmouth StreetBath BA1 2BWUnited KingdomTel: +44 (0)1225 442244

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