Emap plc update on operational efficiency reviews and trading

Emap plc (EMA.L) is today providing an update on the efficiency reviews we have been carrying out across our businesses and on trading.

Operational Efficiency Reviews
At our interim results in November we announced the initiation of a series of reviews to enable us to rebase our cost structure. The reviews set out to transform how we operate, drive efficiencies and deliver real scale benefits. They are now close to conclusion and the plans we have developed will meet these objectives.

Consumer Magazines and Radio have undertaken detailed assessments of all processes, systems and organisational structures for both effectiveness and efficiency. B2B is in the process of co-locating seven businesses into one London property which will also enable greater efficiency.

These reviews are expected to generate cost savings in excess of 20 million per annum. The savings will be delivered over the next two financial years, with the full benefit being achieved in the 2008/09 financial year. There will be one-off costs of up to 30 million, plus capital investments of some 10 million in relation to new systems and buildings.

Trading
B2B continues to perform well, largely driven by recent acquisitions which are performing strongly although, as expected, we are seeing a softer market for retail events. In consumer media, and Radio in particular, recent market conditions have been weaker than anticipated. As a result, the outcome for the current financial year is likely to be toward the bottom end of market expectations.

We anticipate that trading conditions in consumer media markets will remain challenging in 2007/08, although the prospects for B2B are robust. The operating performance for Consumer Magazines and Radio in that year, even with some initial benefits from the efficiency reviews, is likely to be below market expectations.

Our next scheduled announcement will be our trading update on 27 March 2007.

Commenting, Tom Moloney, Group Chief Executive, said:

ìThe management actions we are taking are a positive response to prevailing market conditions and will allow us to continue our strategy of developing strong media brands across platforms. The fact we have identified substantial savings, given that we already operate on industry leading margins, signifies the progressive approach we are taking to operational efficiency. Recent acquisitions are improving our technology capability and we are migrating more resource to faster growth opportunities, particularly digital.

ìBrands, content and deep relationships with the communities we serve are the enduring strengths of Emap and have allowed us to maintain market leading positions. These strengths underpin our strategy and when combined with improved technology skills will ensure we deliver sustainable growth.î