Events and magazines company Top Right today showed how tough conditions remain as annual sales rose but operating profits halved as it took a big restructuring hit.
Top Right, which owns the Cannes Lions advertising festival and magazine brands Broadcast and Retail Week, said like-for-like sales rose 7% to £251.7 million. Even the magazines arm returned to growth as investment in digital paid off.
But operating profits slumped to £23.6 million from £59.6 million after chief executive Duncan Painter wrote off £41.1 million in impairment and other costs as he split the group into three divisions. He claimed 2012 was a year of “transformation”.
Pre-tax profits surged to £186.2 million, thanks to the sale of motoring research arm CAP for £166.1 million. Top Right used much of the proceeds to make a “pre-payment” of £110 million to lenders in January to provide extra “headroom”. Top Right is jointly owned by Apax Partners and Guardian Media Group.
