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Centaur Media PLC - Final Results
RNS Number : 7087D
  Centaur Media PLC
  18 September 2008

18 September 2008
Centaur Media plc

Preliminary results for the year ended 30 June 2008

Centaur Media plc ('Centaur', 'the Company' or 'the Group'), the specialist
business publishing and information group, announces results for the year ended
30 June 2008.

Centaur's premier brands include Marketing Week, Design Week, Creative Review,
Money Marketing, The Lawyer, The Engineer, New Media Age, Homebuilding &
Renovating, Business Travel and the online service Perfect Information.

*     Revenue £90.4m (2007: £90.3m); 4 year CAGR 8%
*     Adjusted EBITDA (1) margin up 2 percentage points to 24%
*     Adjusted PBT (2) up 14% to £19.2m (2007: £16.9m)
*     PBT after exceptional cost £14.5m (2007: £16.9m)
*     Adjusted basic EPS (3) up 12% to 9.2p (basic EPS 6.7p (2007: 8.2p))
*     Net cash of £7.7m after share repurchase of £7.9m (Net cash at 30 June
2007: £9.0m)
*     Full year dividend per share up 20% to 4.2p (2007: 3.5p)

Commenting on the preliminary results, Graham Sherren, Chairman of Centaur said:
'We are pleased that these results show yet another record year, despite the
prevailing market conditions. Markets remain challenging in the new financial
year, and we continue to develop new products to drive the business forward
against this market
backdrop with a particular focus on online and events. We continue to improve
the efficiency of our operations and we are seeing some general improvement in
our market shares, demonstrating a flight to quality during the downturn.
Nevertheless, the
outlook for trading in 2009 remains uncertain.'

 Centaur Media plc         Geoff Wilmot, CEO   Tel: 020 7970 4000
                           Mike Lally, GFD
 Gavin Anderson & Company  Robert Speed        Tel: 020 7554 1400
                           Janine Brewis

*     One of Centaur's key measures of profit, which is used to measure the
relative performance of divisional units of the Group, is earnings before
interest, tax, depreciation and amortisation, excluding exceptional items and
other significant
non-cash items including share based payments (Adjusted EBITDA).
*     Adjusted PBT (PBTA) is profit before tax, excluding the impact of
amortisation of acquired intangibles and of exceptional items and excluding the
profit on disposal of associated undertakings.
*     Adjusted EPS is based on the basic EPS but after making adjustments for
amortisation on acquired intangibles and exceptional items and excluding the
profit on disposal of associated undertakings, as detailed in note 4.

Chairman's Statement
I am pleased to announce that Centaur is again reporting a record level of
adjusted PBT in the 12 months to 30 June 2008, with results ahead of consensus
market expectations, up 14% to £19.2 million (FY2007: £16.9 million), and
basic earnings per share 12% up at 9.2p (FY2007: 8.2p).  Reported PBT fell to
£14.5 million (FY2007: £16.9 million) as a result of an exceptional charge of
£3.6 million which arose principally due to the closure of Perfect Analysis and
organisational changes within publishing operations.

Revenues were level with those of the previous financial year.  The result
reflected the effects of a more challenging trading environment that developed
during the second half of the financial year, in which the Company experienced a
4% decline in
overall advertising revenues and an 8% decline in print revenues. This resulted
in a 2% growth in advertising revenues for the year as a whole with a modest
decline in print revenues offset by continued growth in online advertising

Adjusted EBITDA increased by 9% to £21.5 million (FY2007: £19.7 million),
delivering a further improvement in margin to 24% from 22% in the previous year
representing further progress towards our target margin of 25%.

In light of this performance, the Board is recommending a final dividend of 3.0p
per share, giving a full year dividend of 4.2p; an increase of 20% over the
prior year. The final dividend will be paid to shareholders on the register as
at 24 October
2008. It is proposed that the dividend will be paid on 20 November 2008.

The downturn in the cycle that we are now experiencing has adversely affected
most of our served markets in the past few months, although this has partially
offset by a general improvement in our market shares. The Legal and Financial
Division has
been particularly impacted by the weakness in the mortgage market, resulting in
a 5% decline in revenues for the year as a whole. Marketing and Creative
Division revenues were unchanged year on year, reflecting tougher second half
conditions. Engineering
and Construction revenues grew 6% in the year, with a strong performance by the
engineering titles offsetting a relatively unchanged result from the
construction portfolio. Perfect Information experienced a decline in revenues of
3%, resulting from the
discontinuation of Perfect Analysis, a loss making division within this segment,
which was announced in the first half of the financial year. General Business
Services revenues grew 7% led by the successful launch of the Business Travel
Show in Dubai.

Adjusted EBITDA has also benefited from the actions we undertook to reduce costs
during the year, which led to a two point improvement in margins.

The fastest pace of revenue growth was derived from online products, which,
excluding the results of Perfect Information, grew by 22% over the prior year.
This demonstrates the continuing success of our principal strategy in the past
few years, which
has been to extend our major print publishing brands across multiple media, but
with a particular focus on online opportunities. Online now accounts for 19% of
total revenues against 17% in FY2007.

Centaur has developed most of its business organically and in FY2008 11% of
revenues were generated by products launched within the previous three years
(FY2007: 12%). We continued to maintain a steady pace of new product development
during the year,
with a number of new magazine, online and event launches. The key developments
and initiatives in the year are outlined in the Business Review.

Cash and share capital reduction
The Board holds a mandate to purchase up to 10% of the Company's issued share
capital and during the period, the Company acquired 7,550,000 of its own shares
through open market purchases representing 5.05% of issued share capital at the
start of the
financial year. The total amount paid to acquire the shares was £7.9 million and
this has been deducted from shareholders' equity.

The ability to finance these share purchases from existing cash resources
underpins the continued strength of the Group's balance sheet and if the
consideration for the share purchase is excluded cash and cash equivalents
increased by £5.6
million in the period after paying dividends of £5.4 million and after repaying
£1.0 million to the holders of loan notes in Centaur Media plc. Excluding funds
held in respect of these loan notes the cash available for use by the Group in
day to day operations was £7.7 million at 30 June 2008 (FY2007: £9.0 million).
      Outlook for current financial year
Owing to the current economic climate, we anticipate that market conditions will
remain challenging. As we reported in our Trading Statement on 14 July 2008, we
expect a further decline in print revenues in our seasonally quieter half year
to 31
December 2008. The outlook for trading conditions in 2009 remains uncertain.
Meanwhile, we continue to achieve growth in our online products and in events;
we are planning a number of new product initiatives in the course of this
financial year and, in
particular, we are taking further steps to improve the cost effectiveness of our
print operations.

Centaur is above all an entrepreneurial Company. It depends for its success on
the talent, commitment, energy and creativity of its staff, who have performed
magnificently once again. My thanks and appreciation goes to all of them.
      Business Review
Legal & Financial
Legal & Financial remains our largest market segment reporting 32% of total
Group revenues for 2008. (FY2007: 34%)

Despite a 5% reduction in revenues for the year, profitability improved
following a number of cost efficiencies undertaken in response to the
progressively more difficult trading conditions during the course of the year.
These efficiencies resulted in
a 23% reduction in year-on-year costs in the second half of the financial year
and a 2 percentage point increase in adjusted EBITDA margin to 32%, for the full

Core products targeting the mortgage and secured lending sectors were affected
by the volatility in credit markets that prevailed from the start of the
financial year and this also resulted in some slowing of marketing activity in
the broader retail
financial sector during the second half of the year. In addition, the legal
sector experienced some decline in the corporate transaction activity that
underpins the sector. Despite this, online legal recruitment grew strongly with
double digit growth in
The revenues for the full year following the 5% growth reported for
the first half.

The major magazine titles within this segment reported a 6% reduction in
revenues, although most of this decrease related to the main mortgage title -
Mortgage Strategy magazine - which in total represented around 12% of the
segment's total print
revenues. Excluding Mortgage Strategy, the rest of the print portfolio reported
4% full year revenue growth led by strong growth in core financial titles Fund
Strategy and Money Marketing.

Event revenues reduced by 16% although this related primarily to the Mortgage
Summit which was rescheduled for the new financial year. Excluding this,
revenues from other financial summits grew by 42% in the year and sponsored
meetings remained a
particularly resilient event format as well as the focus of much new product
development within the segment with seven new event launches in the year.

Elsewhere within the segment new product development included the launch of a
new website - - providing details of press releases relating
to financial service product providers and new product releases, the publication
of the

first legal employee engagement benchmarking study in conjunction with YouGov
plc, our joint venture research partner, and the publication of the
Transatlantic Elite survey of New York based law firms following the
establishment of a New York editorial
office for The Lawyer magazine earlier this year.

Marketing & Creative
In total, Marketing and Creative revenues were flat although profit was strongly
ahead with adjusted EBITDA increasing by 14% and adjusted EBITDA margin up 2
percentage points to 17%. The improvement in profitability partly reflected cost
achieved as part of the organisational changes announced in February 2008 and in
total this resulted in a 7% reduction in costs in the second half of the
financial year.

In overall terms, revenue growth was held back to some extent by weakness in the
underlying advertising market particularly where revenues were derived from
marketing services activity focused on more traditional above-the-line media and
marketing. This resulted in the discontinuation of three events during the prior
year including the DM Show (direct marketing) and Total Motivation Show
(incentives) which further constrained revenue growth in the current financial

However these reductions were offset by continued double digit revenue growth
from products targeting the online and interactive media sector, led principally
by the magazine title - New Media Age - and two associated events the Online
Marketing &
Media Show and the Interactive Marketing Summit which both ran in the second
half of the financial year.

In total, online revenues for the segment grew by 33% in the year. Much of this
related to increased recruitment advertising in and where traffic continued to build strongly throughout the year
and the potential
for both sites was further enhanced by the repositioning of as a
composite job aggregator for the marketing, advertising and design verticals.

The Creative Handbook, acquired in March 2007 was published for the first time
under Centaur ownership in December 2007 and this was followed in January 2008
by a re-launched and significantly enhanced online edition which has been well
received by
the industry.

Event revenues were flat year-on-year but, as mentioned above, three
underperforming events were discontinued during the previous financial year. If
these revenues were excluded Marketing and Creative events revenues grew by 9%
in the year. This
growth included a contribution from the newly launched Data Summit held in Jerez
in June 2008 which successfully brought together leading data service providers
with a number of key data industry decision makers.

Construction & Engineering
Revenues in this segment grew by 6% although most of this growth related to the
Engineering portfolio while, within the Construction sector, magazines and
websites aimed at the self-build market continued to be affected by some
weakening of market
conditions. This was at least partly due to constraints on funding for new self
build projects following a contraction in the range of specialist lenders to the
UK mortgage market but also reflected a more general slowing of activity in the
housing market during the year.

While this affected both advertising and subscription sales in the core magazine
titles - Homebuilding & Renovating Magazine, Move or Improve? and Period Living
- events in this sector were more resilient with revenues from the National
Homebuilding Show and five regional events ahead 5% on the prior year. This was
despite one regional homebuilding event, held annually in Peterborough, missing
a year pending a venue change, with the next show scheduled for May 2009.

The Engineering portfolio supported by a continued resurgence of the UK
manufacturing sector reported strong growth across the product range.

A 37% increase in recruitment advertising was split between The Engineer
magazine and the while event revenues more than doubled year on
year with the biennial Metal Working Production Awards held in April 2008.

In addition the Subcon Show, which was in the stronger of two alternate years in
which it runs alongside a major trade association show, proved to be a great
success. Attendees were made up principally of buyers from UK process and
companies and they were able to evaluate over 180 subcontracting suppliers from
across the globe.

Perfect Information
A revenue decline for the year of 3% related principally to the discontinuation
of Perfect Analysis in October 2007 and despite some slowdown in activity levels
among the key investment banking community revenue from the Perfect Filings
base was ahead by 2% for the year.

The discontinuation of Perfect Analysis followed a strategic review which
recognised that the investment necessary to bring Perfect Analysis to
satisfactory commercial success was better directed towards further development
of the core Perfect Filings
product and this investment continues with significant enhancements planned for
the new financial year.

The underlying profitability of PI was significantly improved as a result of
cost efficiencies achieved following the strategic review and in the second half
of the year total costs were 23% below 2007 largely due to a reduction in
headcount of around
40%, and as a result full year EBITDA margin improved significantly to 36%.

General Business Services
This segment comprises products serving a number of distinct business
communities. The main verticals in this segment are Human Resources (HR), the
Recruitment sector, Supply Chain and Logistics, Business Travel and the recently
launched information
services - Headline Property and Headline Auto.

In total, General Business Services revenues grew by 7% with most of the
vertical sectors reporting strong growth, with the exception of HR where event
revenues were reduced due to a change in the timing of the EB Summit with two
events reported in
the prior year compared to a single event in the current year.

Business Travel revenues increased by 15% due to a strong performance from the
regional show held in Dldorf, first launched in September 2004, together with a
newly launched regional show in Dubai.

The Dubai show, the first event from the joint venture with Dnata World of
Events announced in February 2007, was successfully launched in October 2007,
breaking even at contribution level in its first year and establishing an
important presence for
the Business Travel brand in this fast growing Middle East business hub.

The Recruitment vertical reported revenue growth of 16% primarily relating to
increased event revenues through both the Recruiter Forum and industry awards.
Revenues from Recruiter magazine were flat against the prior year although
continued to report rapid growth albeit from a comparatively small base.

A new magazine title 'Resourcing' - aimed at senior HR managers, in house
recruitment specialists and talent managers was launched in November 2007 and
was published monthly with effect from February 2008.

The Logistics and Supply Chain products also reported strong revenue growth with
recruitment advertising volumes building steadily through both Logistics Manager
magazine and its associated website.

Headline Property and Headline Auto were launched towards the end of FY2007 and
while both have built some early stage revenues progress has been slower than
anticipated partly due to the prevailing trading conditions in the underlying

In total, General Business Services adjusted EBITDA reduced slightly to £1.4
million (FY2007: £1.5 million) for the year while adjusted EBITDA margin also
reduced by 2 percentage points to 12%. The reduction in profitability reflects
investment in new product development within this segment including Business
Travel Dubai and the two recent Headline product launches.

We continually evaluate businesses with a view to supplementing organic growth.
While revenue from acquisitions made in the current or preceding financial year
represented only 1% of total Group revenue for the year to 30 June 2008 
(FY2007: 9%) our
acquisition strategy remains unchanged and will typically seek to identify
targets that meet the following criteria:

a.  The business is operating in a market with high growth potential and high
b.  There is an identifiable high information need on which to base a range of
    c.  The business is a market-leader in its respective sector or capable of achieving market leadership             quickly,
d.  Its key people fit comfortably into Centaur's culture.

Having identified suitable targets, we seek to apply the following financial
criteria in assessing valuations:

e.  It should be earnings enhancing and deliver a minimum 10% post-tax ROI in
its first full year of Centaur ownership,
f.  It should deliver a minimum post-tax IRR of 5 percentage points above
Centaur's post-tax weighted average cost of capital (currently 10%).

The Board recognises that these financial criteria are demanding but considers
them appropriate to the acquisition strategy detailed above and in total the
results of the five acquisitions completed since 1 July 2005 have exceeded these
performance targets.

Current Development Activity
Innovation is central to Centaur's culture and is an almost constant activity
across the whole portfolio. In the new financial year, we are continuing to
develop new products at a steady pace. Our current development initiatives
include extending our
established brands into new media and a continued enhancement of market
positions achieved through acquisitions.

In addition to the ongoing development and maturing of initiatives mentioned
above, we are currently in the process of developing a number of new projects
across the business. These include several new events including two exhibition
launches and a
number of new summit format events. In addition, the establishment of specialist
research panels in a number of our vertical markets has progressed steadily and
will provide opportunities for targeted research initiatives in the new
financial year.

The further planned investment in the key elements of our current web operations
(including the recruitment advertising platform and content management system)
will improve the operation of a number of existing online products and also
enhance the
speed and efficiency of prospective online product development.

Analysis of results

                                  2008      2008     2007      2007
                                    £m        £m       £m        £m
 By Segment                    Revenue  Adjusted  Revenue  Adjusted
                                          EBITDA             EBITDA

 Legal and Financial              28.7       9.2     30.3       9.0
 Marketing and Creative           23.6       4.1     23.6       3.6
 Construction and Engineering     20.5       4.7     19.4       4.1
 Perfect Information               5.8       2.1      6.0       1.5
 General Business Services        11.8       1.4     11.0       1.5

  Total                           90.4      21.5     90.3      19.7

 By Source
 Recruitment advertising          15.6         -     15.0         -
 Other advertising                34.6         -     34.3         -
 Circulation revenue               6.1         -      6.3         -
 Online subscriptions              7.0         -      7.3         -
 Events                           25.8         -     25.9         -
 Other                             1.3         -      1.5         -

 Total                            90.4         -     90.3         -

 By Client type
 Audiences                        19.6         -     20.5         -
 Marketers                        70.8         -     69.8         -

 Total                            90.4         -     90.3         -

 By Product type
 Print                            46.6      10.7     47.7      10.9
 Events                           25.8       6.7     25.9       5.9
 Online products                  17.6       4.1     15.8       2.9
 Other                             0.4         -      0.9         -

 Total                            90.4      21.5     90.3      19.7

 Underlying                       89.7      21.4     82.5      18.1
 Acquisitions1                     0.7       0.1      7.8       1.6

 Total                            90.4      21.5     90.3      19.7

 By Maturity
 New 2                             9.8       0.2     10.9     (0.3)
 Existing and acquired            80.6      21.3     79.4      20.0

 Total                            90.4      21.5     90.3      19.7

*     Acquisitions are defined as those made within the current or preceding
financial year
*     New products are defined as any product launched in the current or two
preceding financial years

     Reconciliation of profit measures
The different measures of profit described above are summarised in the following

 Continuing operations                           2008   2007
                                                   £m     £m

 Revenue                                         90.4   90.3

 Adjusted EBITDA                                 21.5

 Depreciation of property, plant and equipment  (0.8)  (0.8)
 Amortisation of software                       (1.5)  (1.9)
 Share based payments                           (0.2)  (0.4)
 Interest receivable                              0.2    0.2
 Share of post-tax profit from associate            -    0.1

 Adjusted PBT                                    19.2   16.9

 Amortisation of acquired intangibles           (1.1)  (0.7)
 Exceptional administrative costs               (3.6)      -
 Profit on sale of associate                        -    0.7

  Profit before taxation                         14.5


1.  One of Centaur's key measures of profit is earnings before interest, tax,
depreciation and amortisation, excluding exceptionals and other significant
non-cash items including share based payments (adjusted EBITDA). In addition, we
report adjusted
PBT(PBTA) which is profit before tax excluding the impact of amortisation of
acquired intangibles and of exceptional items, and excluding the profit on
disposal of associated undertakings

2.  Centaur's product portfolio currently comprises 7 weekly magazines, 3
fortnightly magazines, 14 monthly magazines, 5 magazines of a quarterly or
bi-monthly frequency, 36 online products or services, around 35 awards or other
sponsored events, 24
exhibitions and approximately 90 conferences.

3.  Centaur reports its results within 5 distinct segments, namely Legal and
Financial, Marketing and Creative, Construction and Engineering, Perfect
Information and General Business Services. The first 3 segments comprise
principally the following
vertical business communities in which Centaur publishes market-leading magazine
titles: Marketing Services, Creative Services, New Media, Retail Financial
Products, Legal Services, Construction and Engineering. Centaur also enjoys
strong positions in a
number of other specialist communities, namely HR, Recruitment, Supply Chain and
Logistics and Business Travel.
     Consolidated Income Statement for the year ended 30 June 2008

                                                                  2008    2007
                                                          Note      £m      £m
 Continuing operations

 Revenue                                                     1    90.4    90.3

 Cost of sales                                                  (44.8)  (45.7)

 Gross profit                                                     45.6    44.6

 Distribution costs                                              (4.5)   (4.6)
 Administrative expenses                                        (26.8)  (24.1)

 Adjusted EBITDA                                             1    21.5

 Depreciation of property, plant and equipment                   (0.8)   (0.8)
 Amortisation of software                                        (1.5)   (1.9)
 Amortisation of acquired intangibles                            (1.1)   (0.7)
 Share based payments                                            (0.2)   (0.4)
 Exceptional administrative cost                             2   (3.6)       -

 Operating profit from continuing operations                      14.3    15.9

 Interest receivable                                               0.2     0.2
 Share of post-tax profit from associate                             -     0.1
 Profit on sale of associate                                         -     0.7

 Profit from continuing operations before taxation                14.5
 Taxation                                                 3      (5.0)
 Profit for the year from continuing operations                    9.5

 Discontinued operations
 Profit for the year from discontinued operations                  0.2       -

 Profit for the year attributable to equity shareholders           9.7

 Earnings per share from total operations                    4
 Basic                                                            6.7p    8.2p
 Fully diluted                                                    6.7p    8.1p

 Earnings per share from continuing operations               4
 Basic                                                            6.6p    8.2p
 Fully diluted                                                    6.6p    8.1p

       Consolidated Balance Sheet at 30 June 2008

                                                       2008   2007
                                                Note     £m     £m
 Non-current assets
 Goodwill                                          5  140.3  140.1
 Other intangible assets                               15.9   16.5
 Property, plant and equipment                          2.0    2.1
 Deferred tax assets                                    0.7    1.5
                                                      158.9  160.2

 Current assets
 Inventories                                            1.2    1.1
 Trade and other receivables                           16.5   18.4
 Cash and cash equivalents                              7.8   10.1
                                                       25.5   29.6

 Assets held in disposal group for sale                   -    0.4

 Current liabilities
 Financial liabilities - borrowings                     0.1    1.1
 Trade and other payables                              11.0   11.4
 Deferred income                                        8.7    9.6
 Current tax liabilities                                2.0    2.3
                                                       21.8   24.4

 Liabilities held in disposal group for sale              -    0.2

 Net current assets                                     3.7    5.4

 Non-current liabilities
 Deferred tax liabilities                               1.1    1.1
                                                        1.1    1.1

 Net assets                                           161.5  164.5

 Capital and reserves
 Share capital                                         15.0   15.0
 Treasury shares                                      (8.9)  (1.0)
 Share premium                                          0.7    0.3
 Other reserves                                         3.1    2.8
 Retained earnings                                    151.6  147.4

 Total shareholders' equity                           161.5  164.5

The financial statements were approved by the Board of Directors on 17 September
2008 and were signed on its behalf by:

MJ Lally
Group Finance Director

     Consolidated Cash Flow Statement for the year ended 30 June 2008

                                                             2008   2007
                                                               £m     £m

 Cash flows from operating activities
 Cash generated from operations                              19.0   18.2
 Tax paid                                                   (4.6)  (4.9)

 Cash flows from operating activities                        14.4   13.3

 Cash flows from investing activities
 Interest received                                            0.1    0.2
 Acquisition of subsidiaries (net of cash acquired)         (0.1)    0.1
 Proceeds from the disposal of businesses                     0.2    0.8
 Proceeds from the disposal of subsidiary                     0.4      -
 Purchase of property, plant and equipment                  (0.7)  (0.5)
 Purchase of software                                       (2.4)  (2.1)
 Purchase of other intangible assets                            -  (3.0)
 Cash flows from investing activities                       (2.5)  (4.5)

 Cash flows from financing activities
 Net proceeds from issue of ordinary share capital            0.1    0.1
 Treasury shares purchased                                  (7.9)  (1.0)
 Repayment of loan notes                                    (1.0)  (0.5)
 Dividends paid                                             (5.4)  (5.1)
 Cash flows from financing activities                      (14.2)  (6.5)

 Net (decrease)/ increase in cash and cash equivalents      (2.3)    2.3

 Cash and cash equivalents at 1 July 2007                    10.1    7.8

 Cash and cash equivalents 30 June 2008                       7.8   10.1

                  Statement of Accounting Policies

The principal accounting policies adopted in the preparation of these financial
statements are set out below. These policies have been consistently applied to
all the years presented, unless otherwise stated.

Basis of preparation

The consolidated and Company financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRS) as adopted by
the European Union and International Financial Reporting Interpretations
Committee (IFRIC)
applicable at 30 June 2008 and with those parts of the Companies Act, 1985
applicable to companies reporting under IFRS. The financial statements have been
prepared on the historical cost basis.

These financial statements are presented in pounds sterling (GBP) as that is the
currency of the primary economic environment in which the Group operates.

The preparation of financial statements in conformity with generally accepted
accounting principles requires the use of estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and
the reported amounts of revenues and expenses during the reporting period.
Although these estimates are based on management's best knowledge of the amount,
events or actions, the actual results may ultimately differ from those

The following new standards, amendments to standards or interpretations are
mandatory for the first time for the financial year ended 30 June 2008.

*     IFRIC 7, 'Applying the restatement approach under IAS 29'
*     IFRIC 8, 'Scope of IFRS 2'
*     IFRIC 11, 'IFRS 2 - Group and treasury share transactions'
*     IFRIC 9, 'Reassessment of embedded derivatives'
*     IFRIC 10, 'Interims and impairment',
*     IFRS 7, 'Financial instruments: Disclosures', and the complementary
amendment to IAS 1, Presentation of financial statements - Capital disclosures'

The following new standards, amendments to standards and interpretations have
been issued, but are not effective for the financial year ending 30 June 2008
and have not been early adopted:

*     IFRIC 12, 'Service concession arrangements'
*     IFRIC 13, 'Customer loyalty programmes'
*     IFRIC 14, 'IAS 19 - The limit on a defined benefit asset, minimum funding
requirements and their interaction'
*     IFRIC 15 'Agreements for the construction of real estate'
*     IFRIC 16 Hedges of a Net Investment in a Foreign Operation
*     IFRS 8, 'Operating segments'

The Directors anticipate that the adoption of these standards and
interpretations in future periods will have no material impact on the financial
statements of the Group.

Additional presentation within the consolidated income statement

The Group has presented separately on the face of the consolidated income
statement an additional profit measure of adjusted EBITDA. Adjusted EBITDA is
earnings before interest, tax, depreciation, amortisation and excluding
exceptional and other
significant non-cash items. This presentation has been provided as the Directors
believe that this measure reflects more clearly the ongoing operations of the
Group. In 2008 and 2007, share based payment costs have been treated as a
significant non-cash

Exceptional items

The Group considers items of income and expenses as exceptional items and
discloses them separately; where the nature of the item, or its size, is likely
to be material so as to assist the user of the financial statements to better
understand the
results of the operations of the Group.

Notes to the Financial Statements

1.  Segmental reporting

Primary reporting format - business segments

The Group is currently organised into five main business segments.

Corporate costs are allocated to business segments on an appropriate basis
depending on the nature of the cost.  Costs that cannot be allocated to a
business segment are shown as 'unallocated'.

Segment assets consist primarily of property, plant and equipment, intangible
assets including goodwill, inventories, trade receivables and cash and cash

Segment liabilities comprise trade payables, accruals and deferred income.

Corporate assets and liabilities comprise current and deferred tax balances,
cash and cash equivalents and borrowings.

Capital expenditure comprises additions to property, plant and equipment,
intangible assets and goodwill and includes additions resulting from
acquisitions through business combinations.

Secondary reporting format - geographical segments

Substantially all of the Group's net assets are located and all revenue and
profit are generated in the United Kingdom. Furthermore substantially all of the
Group's customers are located in the United Kingdom.  The Directors consider
that the Group
operates in a single geographical segment, being the United Kingdom, and
therefore secondary format segmental reporting is not required.

 Year ended                      Legal and Financial         Marketing and      Construction and  Perfect Information      General
Business  Unallocated  Group
 30 June 2008                                                     Creative           Engineering                                  
                                                  £m                    £m                    £m                   £m               
    £m           £m     £m
 Continuing operations

 Revenue                                        28.7                  23.6                  20.5                  5.8               
  11.8            -   90.4

 Adjusted EBITDA                                 9.2                   4.1                   4.7                  2.1               
   1.4            -   21.5
 Depreciation of property,                     (0.2)
 plant and equipment                                                 (0.2)                 (0.2)                (0.1)               
 (0.1)            -  (0.8)
 Amortisation of software                      (0.2)                 (0.3)                 (0.2)                (0.6)               
 (0.2)            -  (1.5)
 Amortisation of acquired
 intangibles                                   (0.1)                 (0.1)                 (0.4)                    -               
 (0.5)            -  (1.1)
 Share based payments                              -                     -                     -                    -               
     -        (0.2)  (0.2)
 Exceptional administrative                        -                 (1.1)                 (0.2)                (1.7)               
 (0.1)        (0.5)  (3.6)

 Segment result                                  8.7                   2.4                   3.7                (0.3)               
   0.5        (0.7)   14.3

 Interest receivable                               -                     -                     -                    -               
     -          0.2    0.2
 Share of post tax profit of
 associates                                        -                     -                     -                    -               
     -            -      -
 Profit on sale of associate                                                                                                        
 Profit before tax                               8.7                   2.4                   3.7                (0.3)               
   0.5        (0.5)   14.5
 Taxation                                          -                     -                     -                    -               
     -        (5.0)  (5.0)
 Profit for the year from
 continuing operations                           8.7                   2.4                   3.7                (0.3)               
   0.5        (5.5)    9.5

 Discontinued operations
 Revenue                                           -                     -                     -                    -               
     -            -      -
 Segment result                                    -                     -                     -                    -               
     -            -      -
 Profit on disposal of                             -                     -                     -                    -               
   0.2            -    0.2
 Profit for the year from
 discontinued operations                           -                     -                     -                    -               
   0.2            -    0.2

 Profit for the year
 attributable to equity                          8.7                   2.4                   3.7                (0.3)               
   0.7        (5.5)    9.7

 Segment assets                                 60.0                  47.1                  39.6                 11.1               
  18.1            -  175.9
 Corporate assets                                  -                     -                     -                    -               
     -          8.5    8.5

 Consolidated total assets                      60.0                  47.1                  39.6                 11.1               
  18.1          8.5  184.4
 Segment liabilities                             3.7                   5.4                   4.9                  2.5               
   3.1            -   19.6
 Corporate liabilities                             -                     -                     -                    -               
     -          3.3    3.3
 Consolidated total liabilities                  3.7                   5.4                   4.9                  2.5               
   3.1          3.3   22.9

 Other items:
 Capital expenditure                             0.7                   0.9                   0.9                  1.0               
   0.4            -    3.9
 Impairment of trade                               -                   0.2                   0.2                    -               
   0.1            -    0.5

 Year ended                      Legal and Financial         Marketing and      Construction and  Perfect Information      General
Business  Unallocated  Group
 30 June 2007                                                     Creative           Engineering                                  
                                                  £m                    £m                    £m                   £m               
    £m           £m     £m
 Continuing operations

 Revenue                                        30.3                  23.6                  19.4                  6.0               
  11.0            -   90.3

 Adjusted EBITDA                                 9.0                   3.6                   4.1                  1.5               
   1.5            -   19.7
 Depreciation of property,
 plant and equipment                           (0.2)                 (0.2)                 (0.1)                (0.1)               
 (0.2)            -  (0.8)
 Amortisation of software                      (0.3)                 (0.3)                 (0.2)                (1.0)               
 (0.1)               (1.9)
 Amortisation of acquired                                                                                                           
 intangibles                                   (0.1)                     -                 (0.4)                    -               
 (0.2)               (0.7)
 Share based payments                              -                     -                     -                    -               
     -        (0.4)  (0.4)
 Exceptional administrative                        -                     -                     -                    -               
     -            -      -

 Segment result                                  8.4                   3.1                   3.4                  0.4               
   1.0        (0.4)   15.9

 Interest receivable                               -                     -                     -                    -               
     -          0.2    0.2
 Share of post tax profit of                     0.1                     -                     -                    -               
     -            -    0.1
 Profit on sale of associate                     0.7                     -                     -                    -               
     -            -    0.7
 Profit before tax                               9.2                   3.1                   3.4                  0.4               
   1.0        (0.2)   16.9
 Taxation                                          -                     -                     -                    -               
     -        (4.6)  (4.6)
 Profit for the year from
 continuing operations                           9.2                   3.1                   3.4                  0.4               
   1.0        (4.8)   12.3

 Discontinued operations
 Revenue                                           -                     -                     -                    -               
   1.1            -    1.1
 Segment result                                    -                     -                     -                    -               
 (0.1)            -  (0.1)
 Profit on disposal of                             -                     -                     -                    -               
   0.1            -    0.1
 Profit for the year from
 discontinued operations                           -                     -                     -                    -               
     -            -      -

 Profit for the year
 attributable to equity                          9.2                   3.1                   3.4                  0.4               
   1.0        (4.8)   12.3

 Segment assets                                 60.4                  47.4                  39.7                 12.0               
  18.7            -  178.2
 Corporate assets                                  -                     -                     -                    -               
     -         12.0   12.0
 Consolidated total assets                      60.4                  47.4                  39.7                 12.0               
  18.7         12.0  190.2
 Segment liabilities                             4.2                   5.3                   5.5                  2.9               
   2.5            -   20.4
 Corporate liabilities                             -                     -                     -                    -               
     -          5.3    5.3
 Consolidated total liabilities                  4.2                   5.3                   5.5                  2.9               
   2.5          5.3   25.7

 Other items:
 Capital expenditure                             0.3                   1.0                   0.2                  1.0               
   4.7            -    7.2
 Impairment of trade                             0.1                   0.2                   0.2                (0.1)               
   0.2            -    0.6

2.  Exceptional administrative cost

                                          2008  2007
                                            £m    £m

 Closure of Perfect Analysis                       -
 Accelerated amortisation of assets        1.2     -
 Redundancies                              0.2     -
 Post closure losses                       0.3     -

 Reorganisation of publishing operations
 Redundancies                              1.3     -
 Share based payment                       0.1     -
                                           1.4     -

 Onerous lease provision                   0.5     -

 Total                                     3.6     -

During the period, the Directors decided to discontinue Perfect Analysis, the
equity research service developed by Synergy Software Solutions Limited, a
subsidiary company. The costs of closure totalling £1.7m have been reported as
an exceptional
item and include £1.2m of accelerated amortisation of computer software.

Also during the year, following a strategic review of its publishing operations,
certain organisational changes have been implemented in order to facilitate a
more consistent multi-media strategy across all sectors in the Group and to
drive growth in
new product development. This resulted in redundancies within publishing
operations with a total cost to the Group of £1.4m.

In addition the exceptional costs include £0.5m reflecting the onerous element
of an additional short term property rental commitment at 30 June 2008 that has
been entered into to facilitate the changes to the Group's main London premises
have arisen following the restructuring of the business during the year.

3.  Taxation

(a) Analysis of charge in year

                                                                                   2008   2007
                                                                                     £m     £m
 Current tax
  - Current year                                                                    4.3    4.6
                                                                                    4.3    4.6

 Deferred tax
  - Current year                                                                    0.7  (0.1)
  - Adjustment in respect of prior year                                               -    0.1
                                                                                    0.7      -

 Taxation                                                                           5.0    4.6

 (b) Tax on items charged to equity

 Deferred tax charge on share based payments                                        0.1    0.1

 (c) Factors affecting tax charge for the year
 The tax assessed for the year is higher (2007: lower) than the standard rate of
 tax in the UK (29.5%). The differences are explained below:

                                                                                   2008   2007
                                                                                     £m     £m
 Profit before tax                                                                 14.5   16.9

 Profit before tax multiplied by standard rate of                                          5.1
 corporation tax in the UK of 29.5% (2007: 30%)                                     4.3

 Effects of:

 Expenses not deductible for tax purposes                                           0.2    0.2
 Non-taxable gain on sale of associate                                                -  (0.2)
 Current tax deduction on share options exercised                                     -  (0.2)
 Deferred tax charge/(credit) on share based payments taken                         0.5  (0.5)
 to income statement
 Losses not recognised                                                              0.1    0.1
 Capital losses utilised                                                          (0.1)      -
 Adjustments to tax charge in respect of previous years                               -    0.1

 Total taxation                                                                     5.0    4.6

The standard tax rate for the year has reduced from 30% to 29.5% as a result of
the reduction in the UK corporation tax rate from 30% to 28% from 1 April 2008

There was no tax arising on discontinued operations during the current or
previous year.

4.  Earnings per share

Basic earnings per share (EPS) is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average number of shares
in issue during the year. Shares held in the employee benefit trust and shares
held in treasury have
been excluded in arriving at the weighted average number of shares.

For diluted earnings per share the weighted average number of ordinary shares in
issue is adjusted to assume conversion of all dilutive potential ordinary
shares. The Company has two classes of dilutive potential ordinary shares: share
(including those granted under the Sharesave plan) granted to Directors and
employees where the exercise price is less than the average market price of the
Company's ordinary shares during the year; and the contingently issuable shares
under the Company's
long-term incentive plan to the extent that the conditions are met at the
reporting date.

                                                      2008                                              2007
                                Earnings      Weighted average  Per share amount  Earnings      Weighted average  Per share amount
                                             number of shares                                  number of shares
 Total operations                     £m              millions             Pence        £m              millions             Pence

 Basic EPS                           9.7                 144.3               6.7      12.3                 149.1               8.2

 Effect of dilutive securities
 Options                               -                   0.3                 -         -                   1.8                 -
 Contingently issuable shares          -                     -                 -         -                   0.4                 -

 Diluted basic EPS                   9.7                 144.6               6.7      12.3                 151.3               8.1

 Continuing operations

 Basic EPS                      9.5  144.3  6.6  12.3  149.1   8.2

 Effect of dilutive securities
 Options                          -    0.3    -     -    1.8     -
 Contingently issuable shares     -      -    -     -    0.4     -

 Diluted basic EPS              9.5  144.6  6.6  12.3  151.3   8.1

An alternative measure of Adjusted earnings per share has been provided as the
Directors believe that this measure is more reflective of the ongoing trading of
the Group.

                                                       2008                                              2007
                                 Earnings      Weighted average  Per share amount  Earnings      Weighted average  Per share amount
                                              number of shares                                  number of shares
                                       £m              millions             Pence        £m              millions             Pence

 Adjusted EPS
 Earnings attributable to                                                              12.3                 149.1               8.2
 ordinary shareholders from
 continuing operations
                                      9.5                 144.3               6.6

 Amortisation of acquired                                                               0.7                     -               0.5
 intangibles                          1.1                     -               0.7
 Profit on disposal of                                                                (0.7)                     -             (0.5)
 associated undertakings                -                     -                 -
 Exceptional administrative                                                               -                     -                 -
 cost (note 2)                        3.6                     -               2.5
 Tax effect of above                (0.9)                     -             (0.6)     (0.1)
                                                                                       12.2                 149.1               8.2
 Adjusted EPS                        13.3                 144.3               9.2

 Effect of dilutive securities
 Options                                -                   0.3                 -         -                   1.8                 -
 Contingently issuable shares           -                     -                 -         -                   0.4                 -

 Diluted adjusted EPS                13.3                 144.6               9.2      12.2                 151.3               8.1

5.  Goodwill

Goodwill by segment
Each individual magazine and online title is deemed to be a Cash Generating Unit
(CGU) as each title generates profits and cash flows that are largely
independent from other communities.  Goodwill is attributed to individual CGUs
but is grouped
together at segmental level for the purposes of the annual impairment review of
goodwill, being the lowest level that management monitors goodwill.

The following table shows the allocation of goodwill to segments at 30 June

                        Legal and Financial         Marketing and      Construction and  Perfect Information      General Business 
                                                         Creative           Engineering                                   Services
                                         £m                    £m                    £m                   £m                    £m  

 At 30 June 2007                       53.2                  40.5                  30.1                  8.6                   7.7 
 Additions                                -                     -                     -                  0.1                     -  
 Fair value adjustment                    -                     -                     -                    -                   0.1  
 At 30 June 2008                       53.2                  40.5                  30.1                  8.7                   7.8 

Impairment testing of goodwill

During the year goodwill was tested for impairment in accordance with IAS 36. In
assessing whether a write-down of goodwill is required in the carrying value of
the related asset, the carrying value of the CGU or group of CGUs is compared
with its
recoverable amount. The recoverable amount for each CGU and collectively for
groups of CGUs that make up the segments of the Group's business has been
measured based on value in use.

The Group estimates the value in use of its CGUs using a discounted cash flow
model (DCF) which adjusts the cash flows for risks associated with the assets
and discounts these using a pre-tax rate of 14.4% (2007: 14.4%). The discount
rate used is
consistent with the Group's weighted average cost of capital and is used across
all segments.

No impairment was noted following the annual impairment review.

The key assumptions used in calculating value in-use are sales growth, EBITDA,
working capital movements and capital expenditure. The Group has used formally
approved budgets for the first year of the value in use calculation, and
estimated revenue
growth rates of between 2% and 9% and EBITDA margins of between 10% and 35% for
years 2 to 5. Terminal values assuming growth rates of 3% have been calculated
from estimated year 5 cash flows.

The assumptions used in the calculations of value-in-use for each segment have
been derived from past experience.  Management believe that no reasonably
possible change in assumptions would cause the carrying amount of goodwill to
exceed its
recoverable amount.

6.  Nature of the financial information
The foregoing financial information does not amount to full accounts within the
meaning of Section 240 of
Companies Act 1985. The financial information has been extracted from the
Group's Annual Report and
Accounts for the year ended 30 June 2008 on which the auditors have expressed an
unqualified opinion.

Copies of the Annual Report and Accounts will be posted to shareholders shortly
and will be available from the Company's registered office at 50 Poland Street,
London, W1F 7AX.

This information is provided by RNS
The company news service from the London Stock Exchange