B2B publisher Mark Allen Group had a “difficult and challenging” year in 2023/24 which it largely attributed to the performance of a newly acquired financial services division.
The £6.5m purchase of Bonhill Group in February 2023 marked a major move into wealth management and financial services for the expanding business.
But the newly-published Mark Allen Holdings Ltd for the year to 31 March 2024 revealed the Bonhill assets “fell a long way short of profit expectations” in their first year.
The assets included in the deal were: Bonhill Create, Portfolio Adviser, Expert Investor, International Adviser, Fund Selector Asia and ESG Clarity, all based in the UK, Singapore or Hong Kong.
Chairman and owner Mark Allen said in the financial results: “However, vital steps have now been taken to turn this around with the setting up of a new senior management team with promising results starting to accrue, the true benefit of which will be realised only in 2026.”
Turnover at the overall business was up 5% in the year to £69.5m, following on from two years of 10% and 37% growth respectively.
However, profit before tax fell for the second year running, down 38% to £5.5m. EBITDA (earnings before interest, taxation, depreciation and amortisation) was down 16% to £10.6m.
Mark Allen publishes a wide range of specialist B2B magazines and websites ranging from Abdominal Wall Reconstruction Europe to Vehicle Dynamics International.
Allen told Press Gazette: "This was a very tough year for the group. The principal reason was the acquisition of the Bonhill assets which has proved loss-making and troublesome. However, we are in the process of turning that around and feel confident that this will eventually yield positive results.
"By contrast, our acquisition during the course of the financial year of Sixth Continent Holdings Ltd, the major player in the travel, retail and commercial revenue sector, whose leading brand is the Moodie Davitt report, has got off to a cracking start. This augurs very well for the future.
"More recently, another really positive move has been our purchase of the media assets of the 166-year-old Estates Gazette. We are confident that we can return Estates Gazette to something approaching its former glory.
"Although this was a challenging year, the company remains in very good shape, and, despite our acquisition activity, ended 2024 cash positive."
Allen suggested in the results that further M&A activity is likely: "The directors intend to continue growing the business both organically and by acquisition.
"The pace at which they do so will depend on how the economy recovers."
He also cited "the continuing successful roll out of digital projects" taking place this year.
More recently, Mark Allen Group's MA Education and Music division has closed consumer magazine Musicals, about West End theatre, two-and-a-half years after its launch.
Editor Sarah Kirkup wrote on Linkedin: "We had built up a substantial readership, both via the newsstand and subscriptions, and it’s just a huge shame that the advertising didn’t pick up enough to convince the publisher to continue with it. I have many reasons to believe great things were around the corner for us, but now, sadly, we’ll never know."
Advertising, the biggest revenue stream at Mark Allen Group, grew by 2% in 2023/24 to £27.1m and conferences, the second-biggest for the second year running after overtaking subscriptions, were up by 16% to £24.5m. Subscriptions were down by 3% to £14.3m.
Mark Allen Group's staff numbers increased between 2023 and 2024, from 477 to 528. Editorial made up 140 of the total, up from 135, while sales was 102, up from 96. Total staff costs therefore increased by 17% to £30.7m.
The company directors received £2.3m, with £604,900 paid to the highest-earning director.
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