Political magazine publisher Huveaux has warned it is expecting “very little growth” in advertising this year, after announcing an 83 per cent drop in profits.
The company, which publishes Parliamentary magazine The House and Public Affairs News, has scrapped any plans to acquire new businesses and has pledged instead to work on “restoring investor confidence”.
Announcing its end-of-year results, Huveaux said it made a £362,000 profit in 2007, down from £2.3m in the previous year. Revenue rose two per cent to £46.1m.
Non-executive chairman, John van Kuffeler, said 2007 had been a “disappointing year” for the company, but it had made a “good start” to 2008.
“I would like to thank our management and staff for their considerable efforts during such a difficult year,” he said.
“Much has been achieved in reducing costs and winning new business, which is a direct result of their hard work.”
Huveaux, which was founded in 2001, has made 13 acquisitions over the past six years and now employs 500 staff in London, Paris, Brussels and Edinburgh.
“Our first priority is to deliver a good set of results in 2008 to restore investor confidence in our business,” the company said.
“The trading environment for all media companies in 2008 is predicted to be challenging. We can expect very little in the way of growth in advertising.”
Huveaux confirmed it had received an offer from a private equity house towards the end of last year, but the talks were terminated before Christmas.
“Conditions, particularly in the financial markets, were not conducive to effecting a successful transaction,” it stated.
Huveaux shares fell 11 per cent this week following the results announcement – down from 15.5p to 13.75p.