Future plc (LSE:FUTR, “Future”, the “Group”), the international media group and leading digital business, has exchanged contracts to sell a portfolio comprising its Auto titles and Triathlon Plus (the “Portfolio”) to Kelsey Publishing Limited for a total initial consideration of £2.1m, comprising £1.8m in cash and £0.3m of magazine subscriptions deferred revenue to be retained by Future. In addition, deferred consideration of up to £0.8m is payable by 30 September 2015 based on revenue performance. Completion is scheduled to occur by the end of August 2014. The net proceeds of sale will be used to reduce the Group’s external borrowings.
The Portfolio includes the following: Fast Car, Fast Ford, Classic Ford, Classics Monthly, Total Vauxhall, Mini Magazine, Triathlon Plus, Classic Ford Show, Ford Fair, Japfest, Japfest 2: The Evolution, Performance Vauxhall Show, TRAX: The Ultimate Performance Car Event and associated websites.
The sale of these activities is consistent with Future’s strategy to focus on core verticals with an emphasis on the consumer technology market.
In the year ended 30 September 2013 the Portfolio generated revenue of £5.0m and pre-tax profit (post allocation of central Group and corporate costs) of £0.3m. The gross assets of the Portfolio as at 31 March 2014 were approximately £0.3m.
Zillah Byng-Maddick, Future’s Chief Executive, commented:
“The sale of this portfolio to Kelsey Publishing is another step in our strategy to focus the business on our core vertical markets.”