One of Bath's biggest employers today turned in a 170 per cent rise in pre-tax profits, as it celebrated a major business milestone.
Magazine and website publisher Future's normalised financial results for the year to September show the firm is now for the first time getting more than half of its advertising revenue from the web.
The firm, which attracted more than 57 million monthly global unique users to its websites, which include techradar.com, gamesradar.com, bikeradar.com and musicradar.com, has increased digital revenues from 48 per cent to 59 per cent.
Pre-tax profit was £1.9 million, against a normalised loss of £2.7 million last time.
The firm also sold more than 19 million magazines last year – 37 every minute, with its best-known brands including T3, Cycling Plus, Total Film, Mollie Makes and Xbox: The Official Magazine.
Its normalised results – which exclude costs and revenues attached to businesses that have been sold or closed – show revenues up three per cent.
The firm's net debt has been more than halved from £14.1 million to £6.9 million following the sale of what it calls non-core print activities
It has also been through a cost-cutting programme, which has affected jobs in Bath.
The annual report says: "Headcount in the UK at the end of September 2013 was 831, a reduction of four per cent from the end of September 2012. Further restructuring was undertaken in Q4, the full-year effect of which will be seen in the current year. Following this restructuring activity there is an ongoing focus on the margin, to ensure that any further declines in revenue are offset by appropriate structuring of the cost base."
Overall digital income was 38 per cent up year on year.
Chief executive Mark Wood said: "Our digital revenue growth accelerated, with a 38 per cent increase year-on-year, and we passed an important transition point with more than half our advertising revenues now digital. We have made real progress in reshaping the Future business, diversifying our digital revenues, making our US operations profitable and building global digital brands.
"We have an ongoing programme to reduce the cost base and improve margins. During the year we transformed our balance sheet, paying down term debt from the proceeds of non-core asset disposals and extending our credit facility until 2017. This leaves us well-positioned to execute on our growth strategy.
"Overall, these are good results after difficult trading conditions earlier in the year, thanks to stronger trading across all areas in the fourth quarter. Looking forward, we see the encouraging Q4 trends continuing with forward advertising bookings up year-on-year, and revenue momentum across all sectors."
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