Haymarket profits rise to £30m after investment

LONDON - Haymarket Group, headed by Lord Heseltine, has reported a 3.1% increase in pre-tax profits to £30m as it celebrates its 50th anniversary, with all parts of the business, which ranges from Eve and What Car to Marketing, experiencing growth.

The company, which owns Brand Republic, posted a 6.6% increase in revenues to £244.4m for the year to December 31 2006.

During the year, it invested £12m in new products, such as Stuff.tv, a spin-off from consumer gadet title Stuff, and the Eve Style Show event, from its women's glossy title.

There were a number of acquisitions as well, including Nursery World, motoring website Pistonheads.com and print site pressXchange.com.

It launched or relaunched more than 27 websites, including Brand Republic, and doubled the size of its digital teams and significantly upped its investment.

Lord Michael Heseltine, chairman of Haymarket, said: "Within our consumer media division, the core print markets are unquestionably slowing down through a combination of migration online, increased competition on the bookstalls and an increasingly competitive ad market.

"The digital age is transforming the media marketplace and significant parts of the traditional publishing industry have already, and will continue, to migrate to digital media."

In its consumer media division, Eve magazine registered two consecutive periods of circulation growth and is up 5.3% over the year to 172,419. FourFourTwo recorded its largest ABC to date in the first half of 2006 at 111,406.

The customer publishing division Haymarket Network won the Sky Sports Magazine launch account and the Design Council business. It added these to successful existing titles it produces for Manchester United and the British Army.

The consumer exhibitions division strengthened its position as the leading organiser of consumer exhibitions in the UK, including BBC Good Food Show and BBC Gardeners' World Live.

Haymarket Business Media enjoyed a 41% increase in revenues from its online activity, where Brand Republic is its biggest title, and a 35% increase in profits from events. Other notable activity included the relaunch of Media Week, Packaging News and the acquisition of Printing World and Packaging Magazine.

Outside the UK, the company recently signed its 108th licence agreement, making it the world's third-largest licensor of magazines. Haymarket titles are now published in 40 countries and it is in the process of rolling out online and live events licences for its partners. ±±¾©Èü³µpk10 India is soon to launch.

Haymarket in the US had a strong year and was marked by the acquisition of DM News and a profitable year for operations in California.

Lord Heseltine said: "Our magazines will always remain at the core of our business and our commitment to editorial excellence, honed over 50 years, is as strong as ever. We believe a combination of online platforms working in harmony with our print products and live events creates the very strongest editorial offering."

Profits were before tax, finance costs, amortisation and disposals.

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