Haymarket profits down following restructuring

The magazine publisher and events company, owned by Lord Heseltine, posted an increase in group revenue, from £247.4m to £268.9m in the year to 31 December 2008. But pre-tax profit fell from £7.96m to £4.5m in the period.

In the accounts, the company said that in response to the economic downturn, "management took various actions at the end of 2008 that resulted in a significant reorganisation of buildings, headcount reduction and other cost-saving measures". The cost of the reorganisation, the company said, totalled £7.2m. In addition, Eve magazine was closed at a cost of £1.42m in late 2008.

Jeremy Duckworth, Haymarket Media Group finance director, pointed out that its operating profit before exceptional items and amortisation, was up from £26.2m to £34.2m in the period.

He said: "Profits would have been up without restructuring and amortisation."

UK operations generated revenue of £178.3m, down from £187m a year earlier. However, revenue from overseas increased from £24.6m to £35m.

Duckworth added that "overseas operations are now bearing fruit because of prior year investments."

Haymarket publishes magazines including What Car?, Four Four Two and Stuff.