Companies: CAU   

Business publisher Centaur says interim profits for the year to June will show growth, but warns of challenging trading conditions ahead.

In a trading statement, the fully listed company, which made £16.9 million pre-tax profit in 2006-07 and lifted first-half pre-tax profits 22 per cent to £5 million, indicates that revenues will be ‘in line’ with the £90.3 million chalked up in the previous financial year. Centaur, steered by chief executive officer Geoff Wilmot, says this reflects ‘more challenging conditions’ in the four months to the end of June.

The company blames falling print revenues, down eight per cent year on year in the second six months, on a contraction in key reader markets, notably ‘the mortgage sector’, and warns life is also tough ‘in several of our other markets’. Online advertising has provided a bright spot, with revenues up by some 24 per cent, and Centaur maintains that ‘significant cost reductions’ will help achieve an improvement in margins on earnings before interest, tax, depreciation and amortisation.

Looking ahead, Wilmot and his colleagues say they expect trading conditions to remain challenging during the first half of 2008-09,’leading to further weakness in print revenues’. However, revenues from events and online products should deliver further growth, according to the company, which is ‘continuing to take action to reduce our cost base’.

With £7.7 million cash at the end of the financial year, Centaur argues it benefits from holding a portfolio of leading brands and says it has recently strengthened its market position in several areas. At 57p, the shares have lost 65 per cent of their value since last year’s peak.         

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Centaur Media	LSE	£66.14m	46.50p	0.75p
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