Bath-based media group Future today announced it has agreed to sell a large part of its business to rival publisher Immediate Media for £24m as it revealed it had slumped into the red.
Immediate, the UK's third-largest magazine publishers whose titles include Radio Times, is to take over most of the Future’s sport and craft print and digital publications. Around 130 Future staff working on titles will be transferred to Immediate. 
Future, which is currently undergoing a major restructuring programme which will lead to some job losses among its 900 staff, said the move simplified its business and supported its focus on consumer technology markets.
Earlier this month Future launched a 45-day consultation with its entire workforce – 500 of them based in Bath – over the future shape of the business. Today it said it planned 170 job cuts in the UK. The extent of its financial problems was exposed by its half-year results which showed it made a £700,000 loss for the six-month period to the end of March against a £1.1m profit in the same period last year.
Future chief executive Zillah Byng-Maddick, pictured below, said in a statement to the London Stock Exchange this morning: “The disposal . . . is a key step in the new strategy to transform Future into a more simplified business, focussing on core verticals with an emphasis on the consumer technology market. The disposal titles are well managed and successful parts of the business and they will thrive under their new ownership.”
“I’m pleased that as we say goodbye to colleagues, I’m confident they are moving to an excellent home at Immediate.”
The deal is set to complete during the summer, subject to shareholder approval. Future said the proceeds of the sale will be used to pay down debt and facilitate its restructuring activities. It also said it is working with its banks on a new and reduced working capital facility, including re-setting covenants.
Immediate, which is backed by Exponent Private Equity, has 850 staff in London and Bristol, and publishes 34 websites and 50 magazines with more than 1m subscribers.
It was formed in 2011 by the merger of BBC Magazines and digital platform company Magicalia. Its vision is to create a multi-platform content company in sustainable growth. Its titles include Gardeners’ World, Good Food, Top Gear, CBeebies, olive, BBC History and Homes & Antiques.
Chief executive Tom B
ureau said today: “We are delighted to have reached this agreement with Future. Immediate’s strategy is to create the leading special interest content and platform company, and these brands fit with our vision. We are developing our business around leading content brands, highly-engaged specialist communities, and multi-platform commercial models.
“We have a track record of investing in our brands, around content and platforms, and we are excited to be welcoming the new teams to our company.”
The deal is made up of £22m in cash and £2m of magazines subscriptions deferred revenue to be retained by Future.
Future’s sport titles reach more than 4.7m unique users a month, and will join Immediate’s fast-growing digital network. Focused on cycling, the sport portfolio includes BikeRadar.com, the world’s largest cycling reviews website, alongside Cyclingnews.com, the world’s number one source for pro cycling news and race reports.
The print portfolio has a monthly circulation of more than 100,000 with market-leading title Cycling Plus growing circulation for 14 years, alongside other leading titles Procycling and the market leader for off road cyclists, Mountain Biking UK. 
Immediate Media said the craft sector had “shown impressive growth” in print in the past few years and Future’s portfolio had led through innovation and inspiration, with a track record of successful launches, including the recent Love Patchwork & Quilting.
“Its Simply Knitting is the largest audited print craft title in the UK, while contemporary brand Mollie Makes has re-invigorated the general craft market, with the largest combined circulation, including digital editions,” it said.
The deal also includes Future’s contemporary lifestyle brand The Simple Things. The brands will join Immediate’s own portfolio of titles including Cardmaking and Papercraft, Craftseller and The World of Cross Stitching.
The disposal announcement came as Future’s announced it had slumped into the red during the six months to March 31.
Financial results posted this morning show it went from a £1.1m profit to a £700,000 loss on half-year group revenues down 1% to £48.5m.
While UK revenues, which account for 85% of all group sales, edged ahead by 2% to £41.5m, sales in the US, where Future has struggled recently, fell 14% to £7.3m.
Sales of its digital and other non-print platforms rose by 9% to £16.8m and now represent 35% of total group revenues. They also now earn 70% of total advertising revenue.
Future said its transformation programme was underway. Alongside the sale of the sport and crafts portfolio to Immediate Media it was restructuring under its new leadership team. It said more than 170 jobs will go in UK with 40-plus already cut in US.
Chairman Peter Allen said: “Whilst the board is disappointed with the results for the first half of the year, we have already taken significant actions to address the fundamental issues.
“Since appointing Zillah Byng-Maddick as CEO on April 1 we have completed a thorough review of the organisation. In the UK we are currently consulting with staff on a transformative restructuring programme which the board believes will simplify our business, allowing it to thrive in an increasingly digital and mobile age, with a renewed focus on revenue and margin growth in core sectors.”
Future’s total portfolio includes more than 200 publications, apps, websites and events.
As well as the UK, Future has operations in the US and Australia and also exports or syndicates 225 publications to nearly 100 countries, making it the UK’s number one exporter and licensor of magazine content.
Future's shares climbed strongly following today's announcements and by mid-morning were trading nearly 16% higher at 9.5p. However, they fell back to close at 8.75p, up 6.71% on the day.
Full list of brands Future is selling to Immediate:
Craft: Mollie Makes (UK and US), The Knitter, Simply Knitting, Crochet Today! Simply Crochet, Love Patchwork & Quilting, Cross Stitcher, Cross Stitch Collection, Papercraft Inspirations, Your Family Tree, The Simple Things.
Cycling: Procycling, Cycling Plus, Mountain Biking UK, What Mountain Bike, Urban Cyclist, On Your Bike, BikeRadar.com, Cyclingnews.com, Onyourbike.org, Bikely.com.
