Future Publishing reports loss of almost 50m

Future Publishing, the magazine group, says that it has "over-invested in acquisitions" and under-invested in organic development over the past two years.

It made the comments as it reported a pre-tax loss of almost £50m for the year to the end of September. It compared with a profit of £12.5m for the same period last year.

The results are the first to be revealed under new chief executive Stevie Spring who joined the company in July.

Spring, the former chief executive of Clear Channel, attributed the decline to the company’s aggressive expansion drive over the past two years, coupled with a lack of investment in its existing portfolio.

Underlying profits dropped from £20.4m to £13.7m over the period, leading the group to take a non-cash impairment charge of £45m against the value of its UK, US and Italian assets.

The company, which publishes a range of video game magazines including The Official Xbox Magazine, has confirmed that it will abandon its "doubling strategy", which saw it launch high cover-price magazines into special internet and niche categories. It will now invest more in its digital interests and focus on strengthening its existing business.

The company also announced plans to dispose of its Italian subsidiary Future Media in a deal worth €1.1m (£743,323).